department of the environment and water resources annual report 2005 - 2006, part 1

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i Department of the Environment and Heritage Volume 1 ANNUAL REPORT 200506 How to contact the department Main office: John Gorton Building, King Edward Terrace, Parkes ACT 2600 Post: GPO Box 787, Canberra ACT 2601 Phone: 02 6274 1111 Facsimile: 02 6274 1666 Internet: www.deh.gov.au

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Page 1: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

i

Department of the Environment and Heritage

Volume 1

ANNUAL REPORT 2005–06

How to contact the department

Main offi ce: John Gorton Building,

King Edward Terrace, Parkes ACT 2600

Post: GPO Box 787, Canberra ACT 2601

Phone: 02 6274 1111

Facsimile: 02 6274 1666

Internet: www.deh.gov.au

Page 2: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

ii

Senator the Hon Ian Campbell

Minister for the Environment and Heritage

Parliament House

CANBERRA ACT 2600

Dear Minister

I present the annual reports of the Department of the Environment and Heritage

for the fi nancial year ended 30 June 2006. This set of reports comprises two

volumes.

The fi rst volume contains the annual report of the department. The report details

the department’s performance for the year and contributions to the achievement

of outcomes. The report was prepared in accordance with the requirements set

out in section 63 of the Public Service Act 1999 and other legislation applicable to

the preparation of annual reports.

Subsection 63(1) of the Public Service Act 1999 requires you to lay a copy of this

annual report before each House of the Parliament on or before 31 October 2006.

The second volume contains the legislation annual reports. This volume details

the operation of the seven Acts the department administers that we do not report

on separately to Parliament. This volume must be tabled in each House of the

Parliament within 15 sitting days after the day on which you receive it.

In accordance with the Commonwealth Fraud Control Guidelines, I am satisfi ed

that the department has prepared fraud risk assessments and fraud control plans,

and has in place appropriate fraud prevention, detection, investigation, reporting

and data collection procedures and processes that meet the specifi c needs of the

department and comply with those guidelines.

Yours sincerely

David Borthwick

Secretary

3 October 2006

Page 3: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

iii

Contents

Letter of transmittal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Secretary’s review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Summary of main results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Organisation overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Outcomes and outputs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Outcome 1 – Environment

Climate change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Land and inland waters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Coasts and oceans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Heritage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Human settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

Outcome 2 – Antarctica . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

Cross-cutting activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187

Managing the department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198

Stakeholder relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208

External scrutiny . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213

Environmental sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216

Human resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221

Finances.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337

Indexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347

Compliance index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348

Alphabetical index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353

Page 4: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1
Page 5: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

EXECUTIVE SUMMARY

Page 6: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

Executive sum

mary

Department of the Environment and Heritage Annual Report 2005–06 2

Secretary’s review

The Department of the Environment and Heritage has

broad and diverse responsibilities, evident in the range of

our achievements over the last year. We deal with a broad

spectrum of issues, deliver many different programmes

and operate in a number of different and sometimes

diffi cult locations.

Some parts of the department focus on conserving a

single species while others deal with problems on a

continental or global scale—such as climate change.

Our people work in locations from the Antarctic to

Kakadu, from remote areas to the national capital —all

show a commitment to improve the management of Australia’s natural resources

and thereby contribute to the sustainable growth and prosperity of our nation.

At the same time, we are working to lessen the impact of urbanisation through

better management of water consumption and waste production.

The scale, diversity and signifi cance of our work make the department an

interesting, exciting and challenging place to work.

I am pleased to acknowledge the efforts that our people have made and invite

readers to delve into this report and learn more about the activities and

achievements in the past year, and our priorities for the year ahead.

Progress report

In 2005–06 the department administered a budget of $906 million to support the

Australian Government in delivering its environment and heritage objectives. The

priority this year has been to implement the most recent of the government’s

commitments, particularly in relation to saving water, developing marine protected

areas, responding to climate change, conserving Tasmania’s forests, protecting

cultural heritage, and supporting environmental research including in Antarctica

through the construction of an ice runway.

There was an enthusiastic response to the fi rst round of Community Water

Grants, the community action element of the $2 billion Australian Government

Water Fund. Over $55 million was provided for 1 750 community-based projects,

to rehabilitate about 15 000 hectares of land and save approximately 18.5 billion

litres of water each year. An important component is the contribution made by

communities themselves—they will contribute more than $60 million to these

projects, including 345 000 hours of volunteer time. I am heartened to see the

high levels of cooperation between government and the community to save water

in this country.

David Borthwick

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Australia’s reputation as the world leader in marine environment conservation

was reinforced with agreement to a network of 13 marine protected areas off the

south-east of the continent in May 2006. The network will protect an area of ocean

almost the size of Victoria. Australia now has about one-third of the world’s marine

protected areas.

This year the department continued its efforts to develop practical, long-term

solutions to climate change. On the domestic front we began investing in the next

generation of cleaner technologies to reduce Australia’s greenhouse emissions,

such as carbon dioxide capture and storage and renewable energy technologies.

Internationally, the department has been instrumental in the formation of the

Asia–Pacifi c Partnership on Clean Development and Climate whose member

countries account for roughly half of the world’s greenhouse gas emissions.

This partnership is a new way forward for countries to work together to reduce

greenhouse emissions.

I particularly welcome the appointment of my deputy secretary, Howard Bamsey,

to co-chair future international talks to be held under the United Nations

Framework Convention on Climate Change. This appointment recognises

Australia’s expertise and constructive approach to addressing climate change.

The Australian and Tasmanian governments are investing $250 million over six

years (2004–2010) through the Tasmanian Community Forest Agreement to

enhance the protection of Tasmania’s forest environment and to promote growth

in the Tasmanian forest industry. This year the department began implementing

the environmental aspects of this agreement through the Forest Conservation

Fund, Tarkine Bushwalk Programme, Tasmanian Forest Tourism Development

Programme, Tasmanian Devil Facial Tumour Programme, and River Catchment

Water Quality Initiative.

This year has seen a renewed interest in the protection of Australia’s cultural

heritage, particularly in relation to the early maritime exploration, with 2006

marking the 400th anniversary of the fi rst documented European contact with

Australia. Two places associated with early European maritime exploration—Cape

Inscription in Western Australia where Captain Dirk Hartog landed in October

1616, and the site of the 1629 shipwreck and survivor camps of the Dutch ship

Batavia—have been included in Australia’s National Heritage List. A number

of Australia’s iconic sites have also been nominated or added to heritage lists,

including the Sydney Opera House (nominated for the World Heritage List), the

Melbourne Cricket Ground, and the Australian War Memorial and Memorial Parade

(added to the National Heritage List).

Scientifi c research is essential for the development of sound environmental policy.

There is a surprising array of research funded by the department into specifi c

environmental issues. However more research is needed to address critical gaps in

our understanding of the pressures facing Australia’s unique environment.

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Executive sum

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Department of the Environment and Heritage Annual Report 2005–06 4

The $100 million Commonwealth Environment Research Facilities programme is

a key platform to progress environmental research in Australia. In July 2006 the

fi rst grant recipients were announced for the fi rst four research hubs. These will

support world-class research and assist collaborative environmental research in

Australia. These grants complement the $40 million Marine and Tropical Sciences

Research Facility being established in far north Queensland.

Antarctic research is very important to our understanding of the Southern Ocean

ecosystem and the effects of a changing climate upon it. The Australian Antarctic

Division’s scientifi c contributions to developing non-lethal research methods have

also highlighted the fl aws in so called ‘scientifi c’ whaling and helped Australia to

counter pro-whaling countries’ proposals at the 58th annual International Whaling

Commission meeting.

The challenging job of constructing Australia’s new Antarctic ice runway is

progressing well with the fi rst regular intercontinental fl ights expected in 2007.

The air link between Hobart and Antarctica will open up new opportunities for

the conduct of research in Antarctica, allowing scientists and support personnel to

spend less time travelling by ship and more time on their projects.

I am keen to provide educational material to Australians to promote an awareness

of environmental issues and provide information for people of all ages and walks

of life to become involved in protecting their local environment.

Managing the department

A number of changes have been made to the department over the year to improve

the way we go about our business.

This is the fi rst full year of operation of the department’s Marine Division created

in early 2005 and the announcement of the network of marine protected areas was

the division’s fi rst major achievement. The creation of this division has brought

together regional marine planning and marine protected area development into

a single process. It has improved coordination between sustainable fi sheries,

migratory and marine species, and marine protected area management, and

established closer links between domestic and international marine policy.

This year I formed a new Environment Quality Division to give additional emphasis

and a higher priority to the department’s work to minimise the impacts of human

settlements and human activities on the environment. Our work on managing

waste and improving air quality through national standards for clean petrol and

diesel is having a positive and real impact on urban environments.

I have rebalanced the responsibilities across the department and its senior

executives to ensure we make better connections between common work themes

where they are shared across divisions. I have also reprioritised departmental

funding this year to further build our capacity to administer the Environment

Protection and Biodiversity Conservation Act 1999.

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An increased emphasis has been placed on investing in our staff and recruiting

new staff with the necessary skills, a challenging task in an increasingly competitive

labour market. Last year the department recruited a record number of graduates

and we are intending to increase the intake again in 2007. We also have a

dedicated offi cer working to attract and retain Aboriginal and Torres Strait Islander

employees in the department.

The department has been working on a new collective agreement for 2006–2009

and Australian Workplace Agreements that provide an attractive and competitive

package of employment conditions and remuneration for all staff. The new

agreements began in August this year.

Ensuring the health and well-being of our staff is extremely important. The

department takes its obligations in this regard very seriously. We have also been

committed to reducing our own impact on the environment such as through

systems to minimise our water consumption. It was particularly galling and

disturbing to staff to discover that water provided by the department to offi cers of

the Australian Greenhouse Offi ce through a roof catchment and tank system did

not meet potable water standards. Our immediate concern and priority has been

to understand whether there are particular health and well-being issues for the

staff affected. Fortunately, the testing undertaken has revealed no adverse health

consequences. Our objective has been to keep staff informed throughout this

episode. Clearly there are lessons to be drawn and in that regard, the report under

the Occupational Health and Safety (Commonwealth Employment) Act 1991 by

Comcare has been helpful.

The department is committed to developing and training its staff and allocates

funding to each staff member for learning and development. We also provide

corporate, department-wide information and training opportunities. This year

we provided an online occupational health and safety programme, records

management training, cultural diversity development programmes and a series

of executive seminars for senior managers of the department to share their

knowledge and experience with staff. We are also developing a number of training

programmes to ensure our staff are aware of current issues and trends in public

sector performance including an in-house executive leadership programme

to improve leadership skills in the department, an environmental economics

programme targeted at non-economists, and a workplace diversity programme.

Looking ahead

The department moves into 2006–07 with clear objectives.

The fi rst is the further development of the government’s fl agship environment

initiatives, the Natural Heritage Trust and the National Action Plan for Salinity and

Water Quality. Continued on-ground activities applying established and emerging

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Executive sum

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Department of the Environment and Heritage Annual Report 2005–06 6

science, monitoring changes to the condition of natural resources and adapting

our management practices will be critical to long-term success.

We will also continue the roll-out of the major environment protection

programmes mentioned previously as well as others including Solar Cities, the Low

Emissions Technology Demonstration Fund and Biodiversity Hotspots.

A key focus of the Marine Division over the next four years will be to drive the

development of marine bioregional plans around the continent. The development

of these plans under the Environment Protection and Biodiversity Conservation

Act 1999 will reinforce Australia’s reputation as the global pioneer in the

sustainable development of ocean resources.

The minister is currently reviewing experience with the Environment Protection

and Biodiversity Conservation Act 1999 after six years of operation and is

considering measures of a legislative and administrative nature to improve its

effi ciency and effectiveness. We expect an amending Bill to be introduced into

the parliament in the coming year that will streamline the Act and provide more

strategic approaches to securing better environmental outcomes.

The third State of the Environment Report will be released later this year. The

report will provide a crucial guide to current and emerging environment and

heritage issues and will help shape the agenda for future policy development.

While I am sure the State of the Environment Report will fi nd we have made

gains in many areas in the last fi ve to 10 years, it is also likely to highlight the

challenges still to be addressed, and in some cases, show that we still lack quality

baseline information against which we can assess change over time. One of the

challenges in the coming years will be to improve this information base to enable

better measurement of progress towards our outcomes. The Commonwealth

Environment Research Facilities programme will be an important element in this.

The performance of Australia on managing the environment sustainably will be

benchmarked against other OECD nations in 2006–07, with publication of the

OECD Environment Performance Review in 2007. The report will provide an

analysis of our performance over the decade since the last review in 1997.

There are a number of emerging policy debates that are central to the

department’s work, which we can contribute to, such as the use of nuclear

energy and the future efforts to address climate change. It is important that the

department participates in and informs these debates.

Through the professionalism, dedication and quality of its workforce I consider the

Department of the Environment and Heritage is well placed to respond to future

challenges.

David Borthwick

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Progress toward outcome 1: protecting the environment

Climate change

• At the inaugural meeting in Sydney in January 2006 the six founding members

of the Asia–Pacifi c Partnership on Clean Development and Climate—Australia,

China, India, Japan, the Republic of Korea and the United States—agreed on a

new model for international climate change and energy collaboration to reduce

greenhouse gas emissions.

• Australia’s National Greenhouse Accounts show that Australia is on track to

meet its internationally agreed target of 108 per cent of 1990 greenhouse gas

emissions despite strong growth in energy consumption.

Land and inland waters

• Following Natural Heritage Trust funding, environmental fl ows to the River

Murray system allowed Nankeen night herons to breed in the Barmah Forest

for the fi rst time in 40 years, and silver perch to successfully spawn. Vegetation

communities, including river red gums, also responded well to the additional

water. The department is helping to fund infrastructure to deliver water for

wetlands and fl oodplains in Victoria and South Australia.

• Investments under the National Action Plan for Salinity and Water Quality and

the Natural Heritage Trust are now driven by single regional plans managed by

the 56 established regional bodies. The plans identify resource management

and sustainable agriculture priorities in each region, covering close to the

whole continent.

• A total of 1 750 community groups will share in over $55 million to undertake

water saving projects under the Community Water Grants, part of the $2 billion

Australian Government Water Fund. The projects are expected to save

18.5 billion litres of water annually across Australia.

Coasts and oceans

• The regional marine planning process was given a statutory base under section

176 of the Environment Protection and Biodiversity Conservation Act 1999.

• The fi rst integrated network of marine parks in Australia’s south-east was agreed

when 13 new marine protected areas were announced for the south-east

Summary of main results

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Executive sum

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Department of the Environment and Heritage Annual Report 2005–06 8

Marine Region. The network covers a total of 226 000 square kilometres. It will

conserve representative marine ecosystems and biodiversity. Australia now has

about one-third of the world’s marine protected areas, and is a world leader in

marine environment conservation.

Heritage

• The Minister for the Environment and Heritage, Senator the Hon. Ian Campbell,

agreed to new strategic directions for heritage, with three elements—enhancing

the telling of stories about heritage, helping Australia’s heritage become more

sustainable and amending the Environment Protection and Biodiversity

Conservation Act 1999 to focus more on outcomes and less on details of process.

• Twenty-one places were added to the National Heritage List. As at 30 June 2006,

the list contained 31 places. Three places were added to the Commonwealth

Heritage List, bringing the total to 339 places. The Australian Government

nominated the Sydney Opera House to be inscribed on the World Heritage List.

Human settlements

• The minister announced the fi rst four research hubs to receive funding under

the $100 million Commonwealth Environment Research Facilities programme.

• The department registered 4 000 products under the new labelling scheme for

water effi cient products (Water Effi ciency Labelling and Standards Scheme).

The scheme will enable consumers to choose the most water effi cient

appliances and will encourage innovation by industry, leading to less wastage of

precious water supplies.

• The department’s fuel quality sampling capability was increased enabling a

record number of samples to be tested. Increased fuel sampling will lead to

cleaner fuels and lower pollution emissions.

• Since the implementation of the Product Stewardship for Oil Programme

four years ago, used oil recycling in Australia has increased by about 40 per

cent. These efforts signifi cantly reduce the amount of oil being dumped and

polluting the environment.

• Plastic bag consumption in Australia has fallen by 34.2 per cent or over two

billion bags over the last three years. This means fewer plastic bags are entering

the waste stream and polluting the environment.

• The department continued to monitor the environmental impact of uranium

mining in the Alligator River Region. No environmental impact as a result of

mining has been detected in Kakadu National Park.

Summary of main results

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Progress toward outcome 2: advancing Australia’s Antarctic interests

• At the 58th annual International Whaling Commission meeting, Australia helped

to defeat pro-whaling countries’ proposals to remove consideration of small

cetaceans from the agenda, to introduce a mechanism for secret ballots, to

increase commercial coastal whaling, and to abolish the Southern Ocean Whale

Sanctuary.

• At the same meeting the Australian delegation successfully defended

Australia’s resolution, put at last year’s meeting, to condemn so-called

‘scientifi c whaling’. Australia’s defence was supported by the Australian

Antarctic Division’s scientifi c contributions to developing non-lethal whale

research methods.

Managing the department

• A new comprehensive three-year collective agreement was negotiated with

staff and unions, and new comprehensive Australian Workplace Agreements

were developed for non-senior executive service staff. Both came into effect in

August 2006.

• The department completed assessments of the Bureau of Meteorology,

National Environment Protection Council Service Corporation, and the Director

of National Parks against recommendations of the government’s Review of

Corporate Governance of Statutory Authorities and Offi ce Holders (the Uhrig

Report). The governance arrangements for all of these entities were found to

be generally consistent with the Uhrig Report.

• The department undertook a rigorous review of its formal outputs structure,

reducing the number of outputs from 18 to seven to refl ect the department’s

services and broad environment management themes. The current outputs

are climate change, land and inland water, coasts and oceans, heritage,

human settlements, Antarctic policy and Antarctic science. The department

reprioritised 2006–07 funding to ensure priority functions are properly

resourced and to allow the department to respond to emerging issues.

• The department satisfactorily resolved all major fi ndings arising from the

2004–05 and 2005–06 audits of fi nancial statements by the Australian National

Audit Offi ce.

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Executive sum

mary

Department of the Environment and Heritage Annual Report 2005–06 10

Organisation overview

Portfolio overview

The Department of the Environment and Heritage is the lead agency delivering the

Australian Government’s national environment and heritage legislation, policies

and programmes.

The Australian Government’s environment and heritage portfolio includes the

department and three statutory authorities (Director of National Parks, Great

Barrier Reef Marine Park Authority and Sydney Harbour Federation Trust), one

statutory agency (Offi ce of the Renewable Energy Regulator) and one executive

agency (Bureau of Meteorology) that report separately on their performance.

Departmental overview

As at 30 June 2006 the Department of the Environment and Heritage was made up

of 13 divisions (see fi gure on page 11).

In 2005–06 the Policy Coordination and Environment Protection Division was split

into two divisions: the Policy Coordination Division and the Environment Quality

Division. There were no other changes to the structure of the department in 2005–06.

Roles and functions

The department focuses on matters of national environmental signifi cance by:

• advising the Australian Government on its policies for protecting the

environment and heritage

• administering environment and heritage laws, including the Environment

Protection and Biodiversity Conservation Act 1999

• managing the Australian Government’s main environment and heritage

programmes including the $3 billion Natural Heritage Trust

• implementing an effective response to climate change

• representing the Australian Government in international agreements related to

the environment and heritage and to Antarctica.

Approach

In its work the department looks for solutions that are effi cient, equitable and

feasible based on:

• understanding environmental problems using science

• adopting economic, regulatory or administrative instruments that can target

environmental problems

• carrying out the Australian Government’s environmental and heritage policies and

programmes in a way that supports the nation’s social and economic interests

• cooperating across all levels of government, with industry, with international

partners, and with the community.

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Environment and heritage portfolio

Senator the Hon Ian CampbellMinister for the Environment and Heritage

The Hon Greg Hunt MPParliamentary Secretary

Department of the Environment and Heritage

David BorthwickSecretary

Conall O’ConnellDeputy Secretary

Land, Water and Coasts DivisionTony SlatyerFirst Assistant Secretary

Marine DivisionDonna PetrachenkoFirst Assistant Secretary

Natural Resource Management Programmes DivisionMalcolm ForbesFirst Assistant Secretary

Parks Australia DivisionPeter CochraneDirector of National Parks

Bruce LeaverFirst Assistant Secretary

Howard BamseyDeputy Secretary

Australian Antarctic DivisionTony PressFirst Assistant Secretary

Industry, Communities and Energy DivisionBarry SterlandFirst Assistant Secretary

International, Land and Analysis DivisionIan CarruthersFirst Assistant Secretary

Executive Policy AdviserDiana Wright

First Assistant Secretary

Bureau of MeteorologyGeoff LoveDirector

Great Barrier Reef Marine Park AuthorityThe Hon Virginia ChadwickChairman

Offi ce of the Renewable Energy RegulatorDavid RossiterRenewable Energy Regulator

Sydney Harbour Federation TrustGeoff BaileyExecutive Director

Director of National ParksPeter Cochrane

Authorities and agencies

Anthea TinneyDeputy Secretary

Approvals and Wildlife DivisionGerard EarlyFirst Assistant Secretary

Corporate Strategies DivisionDavid AndersonFirst Assistant Secretary

Heritage DivisionPeter BurnettFirst Assistant Secretary

Environment Quality DivisionMary HarwoodFirst Assistant Secretary

Policy Coordination DivisionMark TuckerFirst Assistant Secretary

Supervising Scientist DivisionAlan HughesFirst Assistant Secretary

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Department of the Environment and Heritage Annual Report 2005–06 12

Outcomes and outputs

This volume of the annual report provides details of the department’s

performance for the year and its contributions to the outcomes and outputs set

out in the Portfolio Budget Statements 2005–06. The work of the department

focuses on two major outcomes:

• Outcome 1: the environment, especially those aspects that are matters of

national environmental signifi cance, is protected and conserved

• Outcome 2: Australia’s interests in Antarctica are advanced

Changes to outputs since the last Budget

Following the incorporation of the Australian Greenhouse Offi ce and the National

Oceans Offi ce into the Department of the Environment and Heritage in 2004–05,

the department reviewed its outputs structure in consultation with the minister

and the Department of Finance and Administration.

This year the number of outputs has been reduced from 18 to seven to refl ect

the department’s services and broad environment management themes—climate

change, land and inland water, coasts and oceans, heritage, human settlements,

Antarctic policy and Antarctic science.

In 2005–06 the department received funding for the following outcomes and outputs:

Outcomes Description Outputs

Outcome 1

The environment, especially those aspects that are matters of national environmental signifi cance, is protected and conserved

Protection and conservation of environment and heritage matters that are nationally important or under direct Commonwealth jurisdiction

1.1: Response to climate change

1.2: Conservation of the land and inland waters

1.3: Conservation of the coasts and oceans

1.4: Conservation of natural, Indigenous and historic heritage

1.5: Response to the impacts of human settlements

Outcome 2

Australia’s interests in Antarctica are advanced

Advancement of Australia’s Antarctic and Southern Ocean interests

2.1: Antarctic policy

2.2: Antarctic science

Note:

• Volume 2 of the annual report details the operation of the seven Acts that the department administers that do not report separately to Parliament, including how the statutory requirements were met and how the laws were administered.

• A full list of legislation administered by the Australian Government’s environment and heritage portfolio is available at www.deh.gov.au/about/legislation.html.

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Resources

The data do not include Antarctic policy administered expenses.

See page 240 for a detailed breakdown.

Outcome 1 administered 55.3%

Outcome 2 departmental 13.7%

Outcome 1 departmental 31%

Resources

Total fi nancial resources 2005–06 = $906 million

Northern Territory 10%

Tasmania 16%

Australian Capital Territory 67%

Other locations 4%

Antarctica 3%

Workforce

Total workforce 2005–06 = 2 062

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OUTCOME 1—ENVIRONMENT CLIMATE CHANGE

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Climate change

The Department of the Environment and Heritage, through its Australian

Greenhouse Offi ce, leads the development and implementation of the

government’s major climate change strategies. The Australian Greenhouse Offi ce

comprises the Industry, Communities and Energy Division, and the International,

Land and Analysis Division in the department.

The department works closely with other departments, including the Department

of Foreign Affairs and Trade, and the Department of Industry, Tourism and

Resources, to progress this work.

Main responsibilities for this output

• International engagement

• Emissions management

• Climate change science

International, Land and

Analysis Division

Industry, Communities

and Energy Division

Objectives

International engagement

• Engage with other countries to help build an effective global response to

climate change

Emissions management

• Work with industry, business and the community across Australia to reduce

greenhouse gas emissions and improve energy effi ciency

• Limit Australia’s greenhouse gas emissions to 108 per cent of 1990 levels by

2008–2012

Climate change science

• Extend Australia’s world-class scientifi c expertise in climate change, and build

the capacity of regions, industries and community to adapt to climate change

• Deliver robust projections of Australia’s progress in meeting its greenhouse gas

emissions target

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Results 2005–06

• The department played a key role in international efforts to address

climate change including in United Nations climate change negotiations.

The head of the Australian Greenhouse Offi ce was selected to co-lead

discussions on future directions of international climate change response.

• The department was active in establishing the new Asia–Pacifi c

Partnership on Clean Development and Climate. The Australian

Government hosted in January 2006, in Sydney, the inaugural ministerial

meeting of the partnership. These collaborative efforts will help to

develop and deploy cleaner and more effi cient technologies to reduce

greenhouse gas emissions.

• Australia is on track to meet its Kyoto target of limiting greenhouse gas

emissions to 108 per cent of 1990 emissions by 2008–2012. The latest

emissions trends show that Australia’s emissions have increased by only

2.3 per cent between 1990 and 2004 despite strong growth in gross

domestic product (GDP) and energy consumption. Over this period,

Australia has reduced its greenhouse gas emissions intensity (or emissions

per dollar of GDP) by 35 per cent and also reduced its emissions per

capita by more than 11 per cent. A reduction in land clearing has been an

integral factor in emissions abatement.

• Progress was made in implementing major programmes to reduce

Australia’s greenhouse gas emissions, including investing $500 million

to develop the next generation of large-scale greenhouse gas abatement

technologies, $100 million in grants to develop Australia’s renewable

energy technologies, and $75 million for the Solar Cities initiative.

The fi rst $23 million of funding for 10 renewable energy projects was

announced in 2006. This work is jointly managed with the Department of

Industry, Tourism and Resources.

• The Council of Australian Governments initiated in February 2006

development of a national framework on adaptation to the impacts of

climate change. The department is leading the work, with a product due

to be delivered for consideration by the council at the end of 2006.

• The department played a leading role in developing options to streamline

and strengthen greenhouse emissions and energy reporting, culminating

in a decision by the Council of Australian Governments to develop

national legislation for cost-effective mandatory reporting by large

emitters and energy users.

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Australia’s climate change strategy

The concentration of heat-trapping gases in the atmosphere is rising, changing

the earth’s climate. Over the past century the world has warmed by an average

0.6 degrees Celsius, with the most rapid increase occurring over the last 30 years.

Much of this change is linked to human activity.

The Intergovernmental Panel on Climate Change, a body established by the World

Meteorological Organization and the United Nations Environment Programme,

has predicted that without intervention average global surface temperatures could

increase by 1.4 to 5.8 degrees Celsius by the end of this century. Temperature

changes of this magnitude are likely to have major effects on the environment,

human health and economies.

Stabilising the concentration of carbon dioxide (and the other greenhouse gases)

in the atmosphere to prevent the worst of these impacts will require a strong

and effective global response. All nations will need to commit to reducing their

greenhouse gas emissions.

In 2004 the Australian Government announced a new climate change strategy to:

• enhance international engagement to work towards an effective global

response to climate change

• focus domestic action to meet Australia’s internationally agreed greenhouse

emissions target in the short term, and in the longer term deliver a lower

emissions signature while maintaining a strong economy

• prepare Australia for the unavoidable consequences of climate change.

The strategy incorporates business and community partnerships, strategic

investment, government regulation and market measures. It includes measures

announced in the May 2004 federal Budget and the June 2004 energy white paper,

Securing Australia’s Energy Future, and brings the total Australian Government

investment in climate change response to almost $2 billion.

International engagement on climate change

During 2005–06 Australia continued to work towards the development of

an international climate change response that is environmentally effective,

economically effi cient and includes all major emitters. The need for a response

‘beyond Kyoto’ is being increasingly recognised worldwide. Australia’s international

climate change strategy includes both multilateral and bilateral activities.

United Nations climate change negotiations

Australia is a party to the United Nations Framework Convention on Climate

Change, which lays the basis for global action ‘to protect the climate system for

present and future generations’.

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Australia played an important role at the United Nations Climate Change

Conference in Montreal in December 2005, where 189 countries unanimously

agreed on the Montreal Climate Action Plan. The action plan is a means to create

an effective international response in the post-Kyoto period.

In recognition of Australia’s expertise and constructive approach, the head of

the Australian Greenhouse Offi ce, Mr Howard Bamsey, was chosen to co-chair

talks on future international cooperation on climate change. These talks—which

commenced at the United Nations Climate Change Convention meeting in

Bonn in May 2006—will address issues such as how to realise the full potential

of technology to address climate change, adapting to the unavoidable impacts

of climate change, and the link between sustainable development and climate

change. These themes are central to the work of the Asia–Pacifi c Partnership

on Clean Development and Climate, and the Group of Eight (G8) Dialogue on

Climate Change, Clean Energy and Sustainable Development in which Australia is

also playing an active and constructive role.

Asia–Pacifi c Partnership on Clean Development and Climate

Australia is a founding member of the Asia–Pacifi c Partnership on Clean

Development and Climate, a regional initiative (with the United States, China,

Japan, India and the Republic of Korea) to develop, deploy and transfer

technologies to address climate change (see website at www.asiapacifi cpartnership.

org). The department played a leading role in the establishment of the

partnership, which was launched on 28 July 2005 by the Foreign Minister, with

ministers and senior offi cials from partner countries at the ASEAN (Association of

Southeast Asian Nations) Regional Forum in Vientiane.

The government hosted the

inaugural ministerial meeting

of the partnership in Sydney

from 11–13 January 2006. At

the meeting, the Prime Minister

announced an additional

investment of $100 million

over fi ve years to support

Asia–Pacifi c partnership projects

and activities, with 25 per cent

of funding earmarked for

renewable energy.

Ministers and business

representatives from the six

partner countries agreed to

establish eight task forces to focus on key industry sectors including cleaner fossil

energy, renewable energy and distributed generation, power generation and

Ministers Campbell and Macfarlane join environment and industry ministers from China, India, Japan, Republic of Korea, and the United States at the fi rst ministerial meeting of the new partnership.

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transmission, steel, aluminium, cement, coal mining, and buildings and appliances.

The department led the Australian Government involvement in the buildings

and appliances taskforce and the renewable energy and distributed generation

taskforce, which it co-chairs with the Republic of Korea. The task forces met in

Berkeley, California from 18–21 April 2006 to commence development of initial

action plans. The task forces aim to agree to their action plans during the third

quarter of 2006. Ministers agreed to meet again in 2007 to review progress under

the partnership.

G8 Dialogue on Climate Change, Clean Energy and Sustainable Development

The Minister for the Environment and Heritage joined ministers from 20 other

countries in the fi rst ministerial meeting of the Group of Eight (G8) Dialogue on

Climate Change, Clean Energy and Sustainable Development held in

November 2005. The aim of the dialogue is to ‘address the strategic challenge of

transforming our energy systems to create a more secure and sustainable future’.

The meeting agreed to work together on deployment of clean technologies,

incentives for large-scale private sector investment in low carbon technologies, a

new model for cooperation between developed and developing countries, and

reinforcing action on adapting to the impacts of climate change.

The next meeting will take place in Mexico in October 2006. In preparation for this

meeting, senior offi cials from all participating countries met in Mexico City from

7–9 June to identify key issues for discussion. The department played a leading role in

this preparatory meeting, including chairing one of the theme topics.

Other multilateral partnerships

Australia participates in four partnerships that focus on technology: the Renewable

Energy and Energy Effi ciency Partnership, the Methane to Markets Partnership,

the International Partnership on the Hydrogen Economy and the Carbon

Sequestration Leadership Forum.

As a result of funding by the Australian Government of $381 000, the Renewable

Energy and Energy Effi ciency Partnership formally established its South East Asia

and the Pacifi c Regional Secretariat on 2 May 2006. Australia has also been active in

the Methane to Markets Partnership, including co-hosting a regional workshop to

identify and assist projects that capture and reuse dangerous waste methane gas

from coal mines in China.

In addition, the department, assisted by leading Australian experts, contributed to

the completion in September 2005 of a Special Report of the Intergovernmental

Panel on Climate Change about the state of knowledge on capture of carbon

dioxide from fossil fuel combustion and geological storage of this carbon dioxide.

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Bilateral partnerships

Australia continued to work with its fi ve bilateral climate change partners—China,

the United States, New Zealand, Japan and the European Union—on practical

cooperative projects responding to global climate change. More than 50 projects

are now under way through these partnerships. The partnerships provide a

positive framework for high-level engagement on policy issues.

China: The Australia–China Climate Change Partnership continued to strengthen

and expand, with further practical actions agreed to address climate change.

In January 2006 the success of this partnership was formally recognised by the

Australian Minister for the Environment and Heritage and the Vice-Chairman of

China’s National Development and Reform Commission with endorsement of

the Australia–China Climate Change Cooperation Progress and Achievements

2003–2005 report. Senior Australian and Chinese offi cials also agreed at this time

to future project priorities for the partnership including renewable energy, coal

mine methane and energy effi ciency. Several new cooperative projects were

commenced including a project led by CSIRO (the Commonwealth Scientifi c and

Industrial Research Organisation) to develop and apply innovative new technology

to capture and use coal mine methane in China.

United States: As part of the Australia–United States Climate Action Partnership,

Australia is working with Pacifi c neighbours on climate change science, research

and monitoring; is expanding cooperative activity to measure and reduce

emissions from the agriculture and forestry sectors; and is collaborating through

the Carbon Sequestration Leadership Forum, the International Partnership on the

Hydrogen Economy and the Methane to Markets Partnership.

New Zealand: Australia is funding two new projects in the Pacifi c region,

in partnership with New Zealand and the United States, to assist local and

regional climate change observation and modelling. These projects will improve

understanding of the climate of the southern hemisphere, and provide the basis

for further studies on impacts and possible adaptation strategies in the South

Pacifi c and Indian oceans.

Japan: Australia and Japan co-hosted the Asia–Pacifi c Seminar on Climate Change

held in Yokohama, Japan from 11–15 September 2005. Experts from 28 countries

and representatives from 10 United Nations agencies and other international

agencies participated. The seminar included updates on efforts to address climate

change in the Asia–Pacifi c region, capacity building, adaptation, science and

technology, and lessons learned for future action.

European Union: In July 2005 the department signed a memorandum of

understanding on end use energy effi ciency programmes in the built environment

with the European Commission’s Joint Research Centre. This agreement will

promote energy effi ciency in Australia through technical exchanges including

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developing methodologies to assess the impact of energy effi ciency policies on

buildings, mapping the potential to reduce the power consumption of electronic

appliances when on standby, and benchmarking the performance of residential air

conditioners.

South Africa: On 11 May 2006 Australia announced a new bilateral climate change

partnership with South Africa. The partnership will focus on collaboration on

climate change adaptation, particularly in the areas of biodiversity and broad acre

agriculture. The partners will also exchange experience and lessons learned in

implementing climate change policies and programmes. Planning is under way and

the fi rst projects are expected to start in August 2006.

Greenhouse gas emissions management

The department continued work to reduce Australia’s greenhouse gas emissions.

The main focus of these efforts is to build partnerships with industry, develop

energy technologies that have low emissions, and invest in local and regional

actions that reduce overall emissions.

Current measures undertaken across all levels of government are projected to

reduce Australia’s greenhouse gas emissions by 85 million tonnes of carbon

dioxide equivalent by 2010—more than equivalent to eliminating all emissions

from the transport sector. These measures have Australia on track to meet its

Kyoto Protocol target. Without these measures, emissions growth would have

reached 123 per cent of the 1990 level by 2010 (see chart below).

Australia’s greenhouse gas emissions (1990–2020)

The dashed horizontal line shows Australia’s Kyoto Protocol target

400

450

500

550

600

650

700

750

800

1990 1995 2000 2005 2010 2015 2020

Meg

ato

nnes

CO

2-e

business as usual with emissions reduction measures

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Kyoto Protocol target

The Kyoto Protocol is an international treaty under the United Nations Framework

Convention on Climate Change designed to limit global greenhouse gas emissions.

The protocol only sets emissions targets for developed countries.

The Australian Government has decided not to ratify the Kyoto Protocol because

it does not provide a comprehensive or environmentally effective long-term

response to climate change. In particular, there is no clear pathway for action by

developing countries. Without commitments by all major emitters, the protocol

will be largely ineffective in reducing the growth of global greenhouse gas

emissions.

Even though it has decided not to ratify the protocol, the Australian Government

is delivering on its commitment to reduce Australia’s greenhouse gas emissions to

the levels agreed during the 1997 Kyoto negotiations (108 per cent of the level of

1990 emissions by 2008–2012).

Building industry partnerships

The Greenhouse Challenge Plus programme helps industry integrate greenhouse

issues into business decisions, reduce greenhouse gas emissions and increase energy

effi ciency. Greenhouse Challenge Plus has more than 740 participants, representing

key industry sectors including agriculture, electricity supply, oil and gas, aluminium,

cement, mining and manufacturing. These industries account for almost 50 per cent

of Australia’s industrial greenhouse gas emissions.

Case study: Australian rice growers reducing greenhouse emissions

Australian rice growers are at the forefront of efforts to reduce greenhouse

gas emissions in the agriculture sector. About 240 rice businesses have

started to take practical actions to reduce greenhouse gas emissions in seven

key areas —fl ood irrigation, nitrogen management, soil management, stubble

management, greenhouse sinks, energy effi ciency, and waste management.

By taking action in these areas, Australian rice growers will be minimising

their greenhouse gas emissions.

The Greenhouse Challenge Plus programme was revamped during the year and

now includes Greenhouse Friendly, the Generator Effi ciency Standards initiative

and independent reporting and verifi cation arrangements. The Greenhouse

Friendly guidelines were revised and new administrative arrangements were put

in place. The programme now includes certifi ed products from the non-energy

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sector and a larger variety of approved abatement projects generating an increased

level of abatement. The new Greenhouse Challenge Plus programme has

$31.3 million in funding over 2004–2008.

Member companies participate in the programme voluntarily. However, from July 2006

companies that receive more than $3 million per year of business Fuel Tax Credits will

be required to join the programme in order to continue receiving these credits.

The department led Australian

Government work with

the states and territories to

develop a nationally consistent

framework for greenhouse and

energy reporting by business

to government. Streamlined

reporting arrangements will

reduce the burden placed

on businesses participating

in greenhouse and energy

programmes and improve the

quality of the data reported

(see also National Pollutant Inventory). This work culminated in a decision by the

Council of Australian Governments (COAG) to develop an approach based on

national purpose-built legislation to provide for cost-effective mandatory reporting

by large emitters and energy users. This approach will be further considered by

COAG later in 2006.

Building industry partnerships—ongoing programmes

The Greenhouse Gas Abatement Programme provides funding for mainly

large-scale projects that use low emissions technologies and practices. Twelve

projects are on track to deliver emissions reductions from 2008–2012. The

estimated reduction in greenhouse gas for this period is 23.4 megatonnes of

carbon dioxide equivalent (at the time of project approvals). This does not include

a new round of projects under negotiation.

The department is working with major transport fl eet operators to assess the

environmental and economic case for using natural gas and liquefi ed petroleum

gas (LPG) in heavy vehicle fl eet operations under the Alternative Fuels

Conversion Programme. This programme has shown that alternative fuels make

economic and environmental sense for some transport tasks, but do not guarantee

improved environmental outcomes. The department will continue to work with

transport operators, engine manufacturers and fuel producers to explore practical

options to improve the effi ciency of transport and fuel usage.

Industry delegates attend the inaugural Greenhouse Challenge Plus conference held in Canberra.

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Action on energy effi ciency

The department continued to support the implementation of the National

Framework for Energy Effi ciency, which was adopted by the Ministerial Council on

Energy in 2004. The framework aims to improve the energy effi ciency of residential

and commercial buildings, appliances and equipment, as well as energy use in the

industrial and commercial sectors. It also covers training and accreditation, the

fi nance sector, and increasing consumer awareness.

In 2005–06 minimum energy performance standards were introduced or made

more stringent for electric water heaters, three-phase electric motors, refrigerators

and freezers and single-phase air conditioners. The standards now cover

13 product groups.

The Australian Building Codes Board adopted energy performance standards

for commercial buildings and increased the standards for residential buildings

during 2005–06. This means that from May 2006 the Building Code of Australia will

contain minimum energy performance requirements for all new building types.

Renewable and low emissions energy—new programmes

The Solar Cities programme will provide $75 million over nine years

(2004–2013) to demonstrate the costs and benefi ts of solar power, energy

effi ciency, cost-refl ective pricing and smart metering technologies on a large scale.

Eleven consortia from across Australia have been short-listed for assessment.

Detailed business cases are now being assessed with announcements of successful

Solar Cities sites expected later in the year.

New programmes for low emission technologies announced in the 2004 energy

white paper Securing Australia’s Energy Future were implemented. The Australian

Government’s $500 million Low Emissions Technology Demonstration Fund

will operate from 2005–2020 to support the demonstration of new low emission

technologies with signifi cant long-term greenhouse abatement potential. The

fund, which is managed jointly by the department and the Department of Industry,

Tourism and Resources, aims to leverage at least $1 billion in contributions from

the corporate sector. The policy framework for the fund was publicly released on

10 October 2005.

Thirty applications were received from electricity generators, oil and gas

producers, iron and steel producers, the oil and gas services sector, and the

transport sector for low emissions technologies covering brown and black coal,

natural gas, transport and renewable energy. The department established a panel

of experts to assess the merits of each application. This process is managed by

AusIndustry.

The $26.8 million Low Emissions Technology and Abatement programme

commenced with an agreed policy framework and a range of initial projects to

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support a geosequestration trial, and several grants and consultancies to support

the renewable energy industry and action by local communities.

The department completed planning the Wind Energy Forecasting Capability

initiative, which will help increase the value of wind energy in electricity markets

by more accurately predicting wind energy generation. The department signed a

funding agreement with the National Electricity Market Management Company to

implement the wind energy forecasting system. An international tender process to

select a system provider and research to support system development are also well

under way.

The department participates in the selection of projects for funding under

the Renewable Energy Development Initiative, which is administered by

AusIndustry, and supports innovative renewable energy technologies. The initiative

will provide $100 million in funding to industry over seven years (2004–2011).

So far 10 grants totalling $23.3 million have been approved. More grants will be

approved in mid-2006.

The department received 25 expressions of interest outlining 32 potential

projects for funding under the $20.5 million Advanced Electricity Storage

Technologies Programme. The projects will develop and demonstrate advanced

technologies for storing electricity generated through intermittent renewable

sources, such as wind and solar. Applications are being assessed and grants will be

approved later in the year.

Renewable energy—ongoing programmes

A further $11.2 million was committed under the Renewable Remote Power

Generation Programme for 466 grants to increase the use of renewable energy

generation in remote parts of Australia and to reduce the amount of diesel

used to generate electricity in areas not connected to the main electricity grid.

These grants brought the total number of projects funded to 3 726 and the total

committed funding to $132 million, which includes 12 major projects totalling

$22.8 million and 21 support projects totalling $6.8 million. Projects cover solar,

wind and small hydro and hydrogen technologies.

The $55.6 million Renewable Energy Commercialisation Programme is

fully committed. Of the 53 projects funded under the programme, 26 have been

completed. One promising new technology to come out of the programme is

the integrated wood processing plant at Narrogin, Western Australia. Recently

commissioned, the plant processes mallee trees to produce renewable energy,

activated carbon and eucalyptus oil. The project also provides other environmental

benefi ts including sequestering carbon in the mallee roots and lowering the water

table to reduce salinity.

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The Renewable Energy Equity Fund continued to provide venture capital

to small, innovative renewable energy companies to help commercialise their

technologies. The government invested an additional $2 million during 2005–06,

leveraging an additional $1 million in private sector investment. These investments

involve fi ve companies working in the areas of battery technology, biofuels and

biomass energy.

The Photovoltaic Rebate Programme provides cash rebates for consumers

who install grid-connected or stand-alone photovoltaic systems. In 2005–06 the

programme provided 946 rebates, representing more than $3.8 million invested

by the government in photovoltaic infrastructure. This brings the total number of

photovoltaic systems installed over the life of the programme to 7 150.

The Mandatory Renewable Energy Target scheme sets up a national

renewable energy market based on a system of tradeable certifi cates. The Offi ce

of the Renewable Energy Regulator administers the scheme, although policy

responsibility remains with the department.

Following the 2003 review of the Mandatory Renewable Energy Target, the

government confi rmed its commitment to the current renewable energy target

of 9 500 gigawatt hours by 2010 in the energy white paper Securing Australia’s

Energy Future. The government also agreed to a number of legislative and

Aerial view of the integrated wood processing demonstration plant at Narrogin, Western Australia. Photo: Verve Energy

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regulatory amendments to improve the administrative effi ciency and operational

effectiveness of the Renewable Energy (Electricity) Act 2000. An amendment Bill

to enact necessary legislative changes to the agreed improvement was passed by

parliament on 22 June 2006.

Local and regional action

The Australian Government helps local governments to reduce their greenhouse

gas emissions through the Local Greenhouse Action programme. This

programme includes Cities for Climate Protection™ Australia, under which

Australia has the largest and most advanced programme of greenhouse reduction

activities in the world, involving 214 local governments and representing

82 per cent of the Australian population.

Case study: Newcastle’s greenhouse cuts recognised

Newcastle City Council, a founding member of the Cities for Climate

Protection Australia programme, won two prestigious awards at the National

Awards for Local Government recognising more than 10 years of action to

reduce greenhouse gas emissions.

The Greenhouse Action in Newcastle Plan forms part of council’s

commitment to Cities for Climate Protection and was developed to address

the growing need for local government and the community to manage their

impact on the environment, particularly climate change.

Newcastle City Council has initiated many pioneering projects, including

Australia’s fi rst biodiesel fl eet, an award-winning cleaner production

programme (aimed at the business community), community REFIT (energy

and water saving kits for households), and a green energy project (energy

and water saving throughout council’s facilities).

The latest results show that councils reduced their emissions by more than

1.5 million tonnes of carbon dioxide equivalents in 2004–05, up from one million

tonnes in 2003–04, and 767 000 tonnes in 2002–03. Since 1999 local governments

have reported cumulative abatement of over fi ve million tonnes and invested

more than $100 million in local greenhouse measures. The 2005–06 fi gures will be

available in November 2006.

A total of $400 000 was paid in 2005–06 for grants supporting activities to reduce

greenhouse gas emissions. Councils worked with local households, businesses, and

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schools to undertake energy audits and retrofi ts, train tradespeople about energy

effi cient appliances, and trial new and innovative technologies for sewage treatment.

The department is also helping to fund various projects to reduce greenhouse gas

emissions from passenger transport, particularly in urban centres in participating

states and territories. For example, the National Travel Behaviour Change

Project aims to facilitate a voluntary change in behaviour towards more

sustainable modes of travel such as walking, cycling, public transport and ride-

sharing. The project will see 186 000 households reduce distances travelled in

Australia by over three billion car kilometres. One million tonnes of greenhouse

gas emissions will be saved, which is equivalent to reducing emissions from over

250 000 cars in one year.

Greenhouse Action to Enhance Sustainability in Regional Australia

addresses knowledge gaps about climate change in regional Australia. Thirty-six

research projects are currently being funded to address emissions management in

agriculture, forest sink management, and adaptation to climate change in the land

management sector. These projects are providing important information for the

development of policies on greenhouse gas emissions reduction and climate change

adaptation in regional Australia. The department spent $3.1 million on these projects

in 2005–06, with partner organisations spending more than twice this amount.

A key initiative in 2005–06 was the establishment of the fi rst fi eld-based research

programme to investigate the interactive effects of elevated carbon dioxide in

air on agricultural production. Four states, industry, CSIRO, and universities are

involved and have already contributed over $10 million to this national effort.

Understanding climate change

The Australian Government’s response to climate change depends on having

high quality scientifi c knowledge of the contributing infl uences and mechanisms.

For example research is revealing more about the infl uence ocean circulation has

on regional and global climate and on transporting heat and absorbing carbon.

The government’s response also depends on the capacity to accurately measure

greenhouse gas emissions at a national and sectoral level, and the ability to identify

and respond to emerging issues.

Australian Climate Change Science Programme

The $30.7 million Australian Climate Change Science Programme is

supporting research over four years (2004–2008) into the nature, causes, timing

and implications of climate change for Australia. The programme helps to

maintain Australia’s world-class climate modelling capacity. Partly as a result of the

programme’s investments, Australia is recognised internationally for the quality of

its climate change science.

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Key areas of research include improving climate change projection based on

probabilities; detecting climate change in Australia, for example, from shifts

in mean maximum air or sea surface temperature, or increased frequency and

intensity of extreme events such as drought and tropical cyclones; and attributing

changes in climate to specifi c factors such as greenhouse gas emissions, changes in

land use, or to natural variability.

The CSIRO, the Bureau of Meteorology and Australian universities will collaborate

to develop the Australian Community Climate and Earth System Simulator with

support from the Australian Climate Change Science Programme. This simulator

is a major step forward in climate modelling in Australia. It will integrate and

improve fragmented modelling products into a national system that will simulate

climate change in the Australian region, rather than rely on models designed for

the northern hemisphere, where the drivers for climate differ from the southern

hemisphere.

National Climate Change Adaptation Programme

Some degree of climate change is inevitable due to the level of greenhouse

gases already in the atmosphere. The National Climate Change Adaptation

Programme, announced in the May 2004 Budget, will help Australians manage

the consequences of climate change. The $14.2 million programme will operate

over four years (2004–2008).

In February 2006 the Council of Australian Governments announced its intention

to develop a national adaptation framework as part of its plan for collaborative

action on climate change. Work to develop this framework was a major focus of the

National Climate Change Adaptation Programme in the latter part of 2005–06.

Other key areas of work during 2005–06 included:

• continuation of a four-year, $2 million partnership with the Great Barrier Reef

Marine Park Authority to develop a climate change action plan for the reef

• launch of the South-east Australian Climate Project to examine climate change,

and particularly its impact on water resources, in the Murray–Darling Basin and

south-east Australia. The project was set up under an agreement with the Murray–

Darling Basin Commission, Land and Water Australia, the Victorian Department of

Sustainability and the Environment, CSIRO and the Bureau of Meteorology

• release of a guide to using the Australian risk management standard to address

climate change impacts

• assessment of the impact of climate change on human settlements.

National Greenhouse Gas Inventory

In 2005–06 a new set of Australia’s National Greenhouse Accounts was released.

The accounts were prepared in accordance with international guidelines under

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the guidance of a national committee made up of federal, state and territory

government representatives. The accounts comprise:

• the National Greenhouse Gas Inventory 2004, which is estimated on a Kyoto

reporting basis and is relevant for measuring progress towards the 108 per cent

target

• the State and Territory Greenhouse Gas Inventories 2004, which are also

estimated on a Kyoto reporting basis

• the National Inventory by Economic Sector 2004, which introduces estimates

of emissions by economic sector (e.g. residential)

• the National Inventory Report 2004, which is Australia’s offi cial submission to

the United Nations Framework Convention on Climate Change and is prepared

according to the reporting provisions applicable to the convention.

The National Greenhouse Gas Inventory 2004 was released in May 2006. The

inventory shows that national greenhouse gas emissions in 2004 were only 2.3 per cent

higher than the 1990 levels. This small increase in emissions is consistent with the

updated projections released in December 2005. The methods used to estimate

emissions and the emission estimates are available through the Australian Greenhouse

Emissions Information System at www.greenhouse.gov.au/inventory.

The National Inventory Report is subject to annual international expert review.

The report on the review of the 2003 inventory which was published in March

2006 recognised the completeness and quality of Australia’s inventory. It welcomed

the introduction of the Australian Greenhouse Emissions Information System as

a substantial advance in inventory practice and noted the technical quality of the

National Carbon Accounting System for monitoring of land systems.

The department, assisted by several leading inventory experts around Australia,

made a major contribution to the new edition of the Intergovernmental Panel on

Climate Change guidelines on international inventory practices. These guidelines

were approved by the panel in April 2006. A senior member of the department

participates in the Intergovernmental Panel on Climate Change Bureau which

steers the inventory programme.

Greenhouse gas projections

The department prepares projections of Australia’s future greenhouse gas

emissions. The projections help the government to determine the extent to which

its policies and programmes have Australia on track to meet its international

emissions target. Updated projections, which follow accounting rules developed

under the Kyoto Protocol, were released in November 2005 in a report called

Tracking to the Kyoto Target 2005. More information is available at

www.greenhouse.gov.au/projections.

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National Carbon Accounting System

Australia’s capability to account for greenhouse gas emissions from our land

systems is provided through the world-leading National Carbon Accounting

System, which uses computer-based land systems modelling and observations to

provide a national map of emissions at a sub-hectare scale.

This year many of the fundamental datasets, such as climate and remotely

sensed vegetation cover change, were updated to current time. Research and

development activities, largely jointly conducted with various state and territory

agencies, CSIRO, universities and private sector interests, also helped to improve

the system and expand its capability.

A National Carbon Accounting Toolbox was released in March 2005 to enable

landholders to examine the history of their properties through a time-series

archive of remotely sensed images, and to model the greenhouse gas implications

of agricultural and forestry activities. To date, almost 7 000 copies of the toolbox

have been requested.

Sources of Australia’s greenhouse gas emissions in 2004 by sector

3%6%

16%

5%5%

13%

50%

0

50

100

150

200

250

300

Stationaryenergy

Transport Fugitiveemissions

Industrialprocesses

Agriculture Land use, land use change

and forestry

Waste

Meg

ato

nnes

of

emis

sio

ns (C

O2-

e)

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Australia’s Fourth National Communication on Climate Change

Parties to the United Nations Convention on Climate Change are required to

report their progress to the convention’s secretariat every three to four years

through what is referred to as a national communication. The secretariat then

carries out an in-depth review of each national communication. The review of

Australia’s Third National Communication was released in August 2005.

Australia’s Fourth National Communication was prepared in 2005 and released by

the Minister for the Environment and Heritage in November 2005. The document

provides detailed information about the implementation of all aspects of Australia’s

climate change strategy and can be found at www.greenhouse.gov.au/international/

publications/fourth-comm.html.

The secretariat is scheduled to commence its review of Australia’s Fourth National

Communication in late 2006.

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Results for performance indicators

Performance indicator 2005–06 result

Effectiveness in reducing greenhouse gas emissions

Percentage of total emissions in Australia by sector: (i) stationary energy, (ii) transport, (iii) fugitive emissions, (iv) industrial processes, (v) agriculture, (vi) land use change and forestry, and (vii) waste

2004 (latest available fi gures, published May 2006): (i) stationary energy 49.6% (ii) transport 13.5% (iii) fugitive emissions 5.5% (iv) industrial processes 5.3% (v) agriculture 16.5% (vi) land use change and forestry 6.3% (vii) waste 3.4%

Actual and projected greenhouse emissions in Australia (megatonnes of carbon dioxide equivalent (Mt CO2-e)) from 1990 base compared with business as usual

Australia’s net greenhouse gas emissions across all sectors totalled 564.7 Mt CO2-e in 2004 under the accounting provisions applying to Australia’s 108% emissions target. This represents a 2.3% increase over 1990 levels

Australia’s greenhouse gas emissions are projected to reach 108% of 1990 levels by 2010 or 585 Mt CO2-e, or 2 Mt CO2-e below the Kyoto target

In the absence of greenhouse measures, emissions would have reached 123% of 1990 levels by 2010

International engagement—Infl uencing International Climate Change Policy (administered item)

Extent of infl uence in key international, regional and bilateral climate change processes on issues for which the department has lead responsibility

Played a key role in the development of the Asia-Pacifi c Partnership on Clean Development and Climate, hosting of the inaugural ministerial meeting of the partnership, and established 8 industry-government task forces to develop practical projects under the key work areas of the partnership, including renewables, clean fossil energy, and buildings and appliances

Worked effectively through the United Nations Framework Convention on Climate Change to achieve key outcomes, including agreement to a dialogue on long-term cooperative action on climate change, and appointment of the head of Australian Greenhouse Offi ce as co-chair of the dialogue

Played a key role in several other international forums on post-2012 action on climate change

Further developed both bilateral and plurilateral climate change partnerships

Number of initiatives delivered through key international, regional and bilateral processes

More than 60, including the establishment of the Asia-Pacifi c Partnership on Clean Development and Climate; agreement to a new bilateral partnership with South Africa; and 58 practical bilateral climate change activities with the United States, China, Japan, the European Union and New Zealand

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Performance indicator 2005–06 result

Emissions management

Effectiveness of support for greenhouse response within sectors

Series of greenhouse gas emissions management measures continues to provide high level of engagement with sectors, for example more than 740 participants in Greenhouse Challenge Plus, representing electricity supply, oil and gas, aluminium, cement, mining and manufacturing sectors, with additional members in 2005–06 leading to a signifi cant increase in the coverage of greenhouse gas emissions reported under the programme; signifi cant response to the Greenhouse Gas Abatement Programme from 6 sectors covering mining, power generation, industrial processing, forestry, government and community sectors to reduce emissions from industry; extensive engagement with key stakeholders in agriculture, forestry and natural resource management sectors through Greenhouse Action to Enhance Sustainability in Regional Australia activities; and signifi cant support from local councils and the community for Cities for Climate Protection, with membership growing to 216 local councils in 2006, representing 82% of Australia’s population

Reported abatement activity including emissions reductions and energy savings

Reported in Tracking to the Kyoto Target 2005, released 30 November 2005

The combined effect of greenhouse gas abatement measures is expected to cut annual emissions by 85 megatonnes of carbon dioxide equivalent by 2010. As a result of these measures, Australia is on track to meet its target under the Kyoto Protocol

Extent of engagement of key stakeholders Series of greenhouse gas emissions management measures continues to provide high level of engagement with sectors (see examples provided for ‘effectiveness of support for greenhouse response within sectors’)

Extent of support for long-term low emission technology uptake

The Low Emissions Technology Demonstration Fund attracted expressions of interest from 30 long-term low emissions technology projects with private investment projected at over $6.5 billion

State governments offered $383 million to support the fund

Estimated cost (Government funds) of greenhouse abatement ($ per tonne)

Based on 2005 projections of abatement from 2008 to 2012, and actual and projected Australian Government funding for programmes, the cost of abatement to the Australian Government in this period averages $4.00 per tonne

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Performance indicator 2005–06 result

Emissions management (continued)

Reporting systems are appropriately targeted National Greenhouse Gas Inventory reviewed independently for United Nations Framework Convention on Climate Change and found to comply with requirements

Joint Ministerial Council on Energy and Environment Protection and Heritage Council, in consultation with stakeholder groups, fast-tracked the development of options for streamlined greenhouse gas emissions and energy reporting by business and forwarded recommendations to the Council of Australian Government’s (COAG) within the timeframe requested. COAG agreed in June 2006 to develop an approach based on national purpose-built legislation to provide for cost-effective mandatory reporting by large emitters and energy users

Under Greenhouse Challenge Plus, around 740 participants report annually to the government and also make a public statement about their progress towards reducing greenhouse gas emissions. An online reporting tool, OSCAR (Online System for Challenge Plus Activity Reporting) has been developed. In 2005–06 members commenced direct online emissions reporting to government

The International Council for Local Environmental Initiatives reports annually to the department on progress of the Cities for Climate Protection Australia programme, including greenhouse gas abatement achieved

Reporting systems for Renewable Remote Power Generation programmes have been established under head partnership agreements between the Australian Government and participating states and territories

Risks to programme delivery identifi ed and managed

Comprehensive risk management plans are in place for each programme

Investment dollars (or contributory funding) leveraged by projects and programmes from other parties

Government expenditure on greenhouse gas emissions management programmes rose from $58.5 million in 2004–05 to $64.4 million in 2005–06. While programme guidelines typically specify that other parties provide contributory funding at a ratio of at least 1:1 for every dollar received, higher rates of investment are usually leveraged. Major measures announced in the energy white paper have attracted signifi cant interest, for example, the Low Emissions Technology Demonstration Fund attracted 30 long-term low emissions technology projects with private investment projected at over $6.5 billion, while state governments offered $383 million to support the fund; 11 Solar Cities proposals were short-listed by ministers, attracting up to $284.3 million of cash and in-kind investment from consortia

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Performance indicator 2005–06 result

Understanding climate change

Investment dollars (or in-kind contribution) leveraged from other parties for climate change science priorities

Over $6.3 million leveraged from other parties in 2005–06

Extent to which climate change policy is integrated in national policies and programmes and interjurisdictional processes

Continued implementation of energy white paper initiatives which integrate climate change policy into national energy policy

Adoption and implementation of COAG Plan for Collaborative Action on Climate Change to coordinate national climate change policy

Interjurisdictional development of a national framework for greenhouse and energy reporting to improve information available to governments for climate change policy and programme development

Climate change included in the Environment Protection and Heritage Council’s Strategic Plan 2006–2008

Trends in community responses to key policy issues

Tracking research into community awareness and perceptions of climate change, completed during the year, found signifi cantly increased community awareness of climate change policy issues

Climate change publications that meet targeted stakeholder needs

Prepared more than 30 publications (reports, guidelines etc) to meet the needs of industry, government and non-government stakeholders and the public and received strong positive response from stakeholders

A range of regular newsletters, fact sheets and similar materials was published, providing up-to-date information about climate change activities to stakeholder groups

A climate change communications strategy was developed with implementation to commence in 2006–07

Comprehensiveness and timeliness of monitoring and public reporting on the implementation of programmes

Milestones in programme development and implementation have been announced publicly and in a timely fashion

An in-depth review by the United Nations Framework Convention on Climate Change of Australia’s Third National Communication on Climate Change strongly endorsed the approach used

Australia’s Fourth National Communication on Climate Change provides a comprehensive overview of Australian and state and territory government responses to climate change

Development of consistent measurement of abatement across programmes

Ongoing programme of continuous improvement in place as part of projections process, to measure abatement across sectors and programmes and in generating overall abatement estimates

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Performance indicator 2005–06 result

Understanding climate change (continued)

Number of reports and submissions made in accordance with national and international commitments and level of user interest

Published the National Greenhouse Account reports, methodology papers and 23 related products

Published updated projections in the sub-sectors of transport, waste, agriculture and land use, land use change and forestry. An update of Australia’s projected emissions was released on 30 November 2005 in the report Tracking to the Kyoto Target 2005, showing Australia is still on track to meet its Kyoto targets

Prepared Australia’s Fourth National Communication on Climate Change; 12 submissions on issues are being considered by the United Nations Framework Convention on Climate Change

Sub-output 1.1.1—International engagement

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(a)

100%

Sub-output 1.1.2—Emissions management

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(a)

100%

Sub-output 1.1.3—Understanding climate change

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(a)

100%

(a) Applies to provision of grants programmes funded entirely from the Department of the Environment and Heritage appropriations for the output (i.e. not those marked administered items).

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Resources

Departmental outputs Budget prices$’000

Actual expenses$’000

Sub-output: 1.1.1 International engagement

Sub-output: 1.1.2 Emissions management

Sub-output: 1.1.3 Understanding climate change

14 473

34 074

16 482

13 904

33 775

16 350

Total (Output 1.1: Climate change) 65 029 64 029

Administered items

Infl uencing International Climate Change Policy

Solar Cities

Action on Energy Effi ciency

Local Greenhouse Action

Low Emissions Technology and Abatement

Greenhouse Gas Abatement Programme

Alternative Fuels Conversion Programme

Renewable Remote Power Generation Programme

Renewable Energy Commercialisation Programme

Renewable Energy Equity Fund —writedown of receivable

Photovoltaic Rebate Programme

Renewable Energy Equity Fund

Greenhouse Action to Enhance Sustainability in Regional Australia

Climate Change Science Programme

1 450

550

800

400

2 235

13 339

862

28 758

1 954

0

5 357

1 338

3 400

6 000

1 390

550

800

404

1 950

13 318

223

28 746

1 694

2 840

4 622

1 338

3 400

6 000

Total (Administered) 66 443 67 275

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OUTCOME 1—ENVIRONMENT LAND AND INLAND WATERS

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Land and inland waters

The Department of the Environment and Heritage develops Australian

Government initiatives to protect and conserve Australia’s land and inland waters,

including biodiversity, and to ensure their management is ecologically sustainable.

Main responsibilities for this output

Wildlife protection

• Threatened species recovery

• Threatened species protection

• Wildlife industries regulation

Approvals and Wildlife

Division

Land and water strategies

• Invasive species threat abatement plans

• Biodiversity conservation

• Native vegetation management

• Environmental aspects of forest agreements

• Water quality management

• Urban water reform

• Protected wetlands

Land, Water and Coasts

Division

Land and water investments

• Administration of the Natural Heritage Trust

• Support for the National Action Plan for

Salinity and Water Quality

• Community Water Grants

Natural Resource

Management

Programmes Division

Terrestrial parks and reserves

• National Reserve System

• Genetic resource management

• Australian Biological Resources Study

Parks Australia Division

Tropical wetlands research

• Research and ecological inventory

• Risk assessment of tropical rivers

Supervising Scientist

Division

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Objectives

Wildlife protection

• Protect biodiversity, including wildlife and their habitats, and work to ensure

that Australia’s use of biological resources is ecologically sustainable

Land and water strategies

• Ensure the management of Australia’s terrestrial natural resources is

ecologically sustainable

• Ensure the management of inland rivers, groundwater and inland wetlands is

ecologically sustainable and that water resources are conserved and the quality

is maintained

• Address land and water issues impacting biodiversity, including pests, weeds

and disease

Land and water investments

• Deliver land and water conservation investments to communities

Terrestrial parks and reserves

• Protect and conserve biodiversity by establishing a comprehensive and

representative system of protected areas

• Conduct taxonomic and geographic research to increase understanding of

biodiversity

Tropical wetlands research

• Enhance the protection of tropical rivers and associated wetlands in northern

Australia

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Results 2005–06

• Under Community Water Grants, part of the $2 billion Australian

Government Water Fund, 1 750 projects worth over $55 million were

approved to save water across Australia. These projects are expected to

save approximately 18.5 billion litres of water each year, enough to fi ll

about 1 800 Olympic swimming pools, as well as rehabilitating about

15 000 hectares of land.

• 31 new recovery plans for threatened species and ecological communities

were approved. These plans will maximise the chances of long-term

survival in the wild of threatened species including Gilbert’s potoroo

in Western Australia, the northern hairy-nosed wombat in Queensland,

Slater’s skink in the Northern Territory, and one endangered ecological

community—the natural temperate grasslands of the Southern Tablelands

of NSW and the Australian Capital Territory.

• The Australian Government invested $37.2 million towards the

$93 million Goulburn–Murray Water Recovery Package, which will recover

145 gigalitres of additional water for the environment.

• Nankeen night herons bred in the Barmah Forest for the fi rst time in

40 years, and the threatened silver perch spawned successfully following

allocation of environmental fl ows to 36 000 hectares of the River Murray

system. Vegetation communities, including river red gum, also responded

well to the additional water. The department helped fund infrastructure

to deliver water for wetlands and fl oodplains in Victoria and South

Australia.

• The Natural Heritage Trust is now delivering on-ground projects in

56 regions across Australia against 54 accredited natural resource

management plans. The plans are tailor made for each region and address

a range of environmental issues including salinity, soil condition, water

quality, native vegetation, rivers and wetlands, and biodiversity.

• Stringent fox control measures in Booderee National Park are producing

a recovery in native animal populations, with long-nosed bandicoot and

eastern bristlebird numbers increasing strongly. Particularly pleasing is the

re-discovery this year of the rare white-footed dunnart, a small marsupial

not found in Booderee for over 40 years.

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Wildlife protection and biodiversity conservation

The department administers the wildlife protection provisions of the Environment

Protection and Biodiversity Conservation Act 1999. The Act is the Australian

Government’s main tool for protecting wildlife1 and conserving biodiversity.

The Act also regulates wildlife trade to protect Australia’s native wildlife from

overexploitation.

Threatened species protection

Under the Environment Protection and Biodiversity Conservation Act 1999

actions require approval if they are likely to have a signifi cant impact on matters of

national environmental signifi cance, including wildlife and ecological communities

that are listed as threatened.

Activities that may affect listed threatened species or communities in

Commonwealth areas (land and waters) may require permits. During 2005–06 the

government issued 11 species and ecological community permits.

Details of these and other activities relating to the protection and conservation

of threatened species are included in the report on the operation of the

Environment Protection and Biodiversity Conservation Act 1999 in the second

volume of this annual report.

Project work relating to the protection of listed threatened species and ecological

communities is partly funded through the national component of the Natural

Heritage Trust. During 2005–06 Natural Heritage Trust project expenditure for

these activities was approximately $1.7 million.

Threatened species recovery

Under the Environment Protection and Biodiversity Conservation Act 1999,

the department is working to prevent threatened species from becoming extinct

and to recover their populations. As part of this work the department develops

threatened species recovery plans.

These plans set out the actions needed to maximise the chances of long-term

survival in the wild of a listed threatened species or ecological community.

Recovery plans must come into force within certain time limits set out in the

Environment Protection and Biodiversity Conservation Act 1999. Recovery plans

remain in force until the species is removed from the threatened list.

During the year the Minister for the Environment and Heritage approved 31

recovery plans under the Act, increasing the total number of recovery plans in

force to 264, covering 340 species and ecological communities. In addition to

1 The Act also protects matters of national environmental signifi cance from the impacts of proposed development activities.

Performance results for environmental assessments are on page 140.

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these plans, the Threatened Species Scientifi c Committee recommended a further

19 draft recovery plans, covering 59 listed species and one ecological community,

for forwarding for the minister’s consideration. A further 348 plans are in

preparation covering 509 species and ecological communities. This brings the total

number of species and ecological communities covered by plans in place or in

preparation to 840, or 52 per cent of the total requiring recovery plans. A priority is

to complete recovery plans for species in Commonwealth areas.

A full report on the operation of the Act including progress in developing recovery

and threat abatement plans appears in the second volume of the annual report.

Project work for the department’s threatened species activities is funded partly

through the national component of the Natural Heritage Trust. During 2005–06

the department invested $2.2 million from the national component of the Natural

Heritage Trust in developing and implementing plans to recover terrestrial

threatened species.

Threatened Species Network

The department supports the Threatened Species Network, a community based

programme of the Natural Heritage Trust and World Wide Fund for Nature (WWF)

Australia. The network comprises a team of people who support projects that

enable all Australians to be involved in hands-on conservation. The network’s

projects are funded through the Natural Heritage Trust’s Threatened Species

Network Community Grants Programme.

The network’s activities during the year benefi ted over 80 species and ecological

communities listed under the Environment Protection and Biodiversity

Conservation Act 1999. Work included developing 30 new projects that were funded

under the grants programme. The network also provided advice on threatened

species to over 70 advisory panels, recovery teams, and assessment panels.

Australian Wildlife Hospital

The Australian Government committed funding of $2.5 million as a contribution to

the capital works expansion of the Australian Wildlife Hospital.

The hospital is the largest specialist native wildlife hospital in Australia, and

services an area in excess of 100 000 square kilometres stretching from northern

New South Wales through to Maryborough and west to Toowoomba. The hospital

also provides a valuable information service to veterinarians and wildlife carer

groups around Australia and conducts research into wildlife disease and health

management. The facility is also used by universities for the training of veterinary

students and wildlife trainees in practical work experience and course work.

The hospital works in collaboration with volunteer wildlife rescue organisations

and concerned individuals. The demand for the hospital’s services is continually

increasing with 1 725 animals treated in 2004, 3 150 in 2005 and approximately

2 200 to 30 June 2006.

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Threat abatement plans

Under the Environment Protection and Biodiversity Conservation Act 1999, the

department develops and implements threat abatement plans. These plans set out

the actions needed to reduce the impacts of threats such as pests and diseases

on affected native species or ecological communities. Threat abatement plans are

reviewed every fi ve years (threat abatement and recovery plans for the marine

environment are reported on page 95).

The department collaborates with the Department of Agriculture, Fisheries and Forestry

and other stakeholders including the states and territories, and primary producers in

the development and implementation of threat abatement plans and projects.

To date there are nine threat abatement plans operating for the key threatening

terrestrial processes listed under the Act.

New threat abatement plans went into operation in 2005–06 for:

• beak and feather disease affecting endangered parrots

• predation, habitat destruction, and disease transmission by feral pigs

• infection of amphibians with chytrid fungus

• the impact of tramp ants on Australia’s biodiversity.

Reviews of fi ve threat abatement plans were completed in 2005–06:

• dieback caused by the root-rot fungus Phytophthora cinnamomi

• competition and land degradation by feral goats

• competition and land degradation by feral rabbits

• predation by feral cats

• predation by the European red fox.

The revised threat abatement plans will be fi nalised in 2006–07.

A threat abatement plan is also being developed for predation of Australian native

species by exotic rats on small offshore islands.

Invasive species threat abatement activities

During 2005–06 the department invested $2.8 million from the national

component of the Natural Heritage Trust on projects to reduce threats to native

species and ecological communities, including over $450 000 for the fox-free

Tasmania programme.

The main focus of these projects was research and development of new control

measures for invasive species (e.g. poisoned bait for feral cats and new fencing

designs to exclude invasive vertebrates from areas with high conservation value).

The department chaired and supported the Invasive Species Task Group, which

reported in October 2005. The task group identifi ed opportunities for improving

national arrangements to reduce the impacts of invasive species on the environment.

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As a result, the Natural Resource Management and Primary Industries ministerial

councils are enhancing Australia’s biosecurity system for primary production and

the environment to prevent the establishment of new species and reduce the

impacts of those which are already established. The department is supporting this

work with the Department of Agriculture, Fisheries and Forestry.

The department helped draft the Australian Pest Animal Strategy, released in late

2005–06. The strategy will work as a key component of the Australian biosecurity

system to reduce the impacts of feral animals by preventing their introduction and

controlling established species.

Cane toads

To date the Australian Government has committed almost $13 million for cane

toad control, including an additional $3 million in 2005 to accelerate research

by the CSIRO into a biological control solution. The CSIRO has made signifi cant

progress on identifying susceptible genes in cane toads and viruses that might

affect them.

Other funding has gone to state governments and regional and local groups

including $600 000 to a joint programme with the Australian, Western Australian

and Northern Territory governments aimed at slowing the movement of cane

toads into the Kimberley region, and more than $400 000 to the Northern Territory

Government for cane toad control. The Natural Heritage Trust is also supporting

several new projects to develop methods that target the various stages of the cane

toad’s development.

Weed management

The department jointly manages the Defeating the Weed Menace Programme

with the Department of Agriculture, Fisheries and Forestry. The programme

identifi es Australia’s most threatening weeds and implements measures for their

management.

During 2005–06 $1.8 million of Natural Heritage Trust funding was invested

through the programme in research into weed biology and biological control

agents, development of best practice management guides for several weed species,

and targeted on-ground weed control actions.

A signifi cant achievement of the programme is reducing the severity, extent and

impact of the Weeds of National Signifi cance, such as willow, athel pine, mimosa,

cabomba, salvinia, alligator weed, bridal creeper, bitou bush/boneseed, pond

apple, and hymenachne.

In 2005–06 the department coordinated the Australian Weeds Committee’s

review of the 1997 National Weeds Strategy. The revised Australian Weeds Strategy

will identify priorities and provide a consistent national framework for weed

management across Australia.

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Case studies: Defeating the weed menace

Bega Valley Shire Council weeds offi cers and landholders in the Towamba

River Valley in south-eastern New South Wales have had considerable

success in eradicating the only known outbreak of blue hound’s tongue

(Cynoglossum creticum) in Australia thanks to the Defeating the Weed

Menace programme.

Blue hound’s tongue is on the National Alert List for Environmental Weeds,

a list of non-native plants that threaten biodiversity and cause environmental

damage. Blue hound’s tongue has the potential to invade and suppress

native grasslands, as demonstrated in Argentina and Chile.

Landholders and council staff undertook

the eradication project in 2005–06. With

only a few known infestation sites along the

Towamba River, eradication through early

intervention was chosen as a cost-effective

control option. Council weeds offi cers and

landholders along the river worked together

to locate, map and eradicate all infestations of

the weed, and revegetate the affected areas.

Members of Towamba Landcare inspected

areas upstream of the outbreak and found no other infestations. A follow-up

programme has begun to ensure any re-infestations are fully controlled.

Mimosa (Mimosa pigra) is regarded as one of the worst weeds in Australia

because of its invasiveness and potential for spread. Mimosa’s range extends

across the tropical north and where left uncontrolled the impacts on local

ecology are dramatic.

Mimosa control in Kakadu National Park

remains one of the park’s highest priorities,

with fi ve staff dedicated to surveying

thousands of square kilometres of fl oodplains

by quad bikes, airboats and helicopter. Over

200 known mimosa locations are visited

regularly to destroy seedling plants. In the last

year the team removed 7 172 young mimosa

plants by hand and 748 older plants by a

combination of herbicide and hand removal.

Staff at Kakadu are obtaining a disturbing picture of the longevity of the

seed, with some seeds still viable after more than 20 years in the soil.

Blue hound’s tongue.

Photo: Anne Herbert

Surveying for mimosa on the Oenpelli fl oodplain.

Photo: Buck Salau

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Wildlife industry regulation

The department protects animal and plant species and ecosystems by

regulating exports and imports of certain wildlife and wildlife products under

Part 13A of the Environment Protection and Biodiversity Conservation Act

1999. Exports of specimens of Australian native species are regulated to protect

them from overexploitation, and imports of live specimens are regulated in

the interests of protecting Australian native ecosystems from the infl uence of

alien invasive species. Part 13A of the Act is used to fulfi l Australia’s obligations

under the Convention on International Trade in Endangered Species of Wild

Fauna and Flora (CITES), through which parties protect globally endangered

species by regulating export and import. The department continues to actively

engage with CITES, and represents the Oceania region on the CITES Standing

Committee.

The department uses its regulatory powers to encourage management practices

that are humane, and not detrimental to the survival of species in the wild.

In supporting responsible wildlife-based industries, fi ve new wildlife trade

management programmes were approved and 2 520 permits to export or import

were issued in 2005–06. Some of these permits are valid for multiple transactions.

There was an increased focus in 2005–06 on assisting legitimate operators to

comply effi ciently with legislative requirements.

The department works closely with other agencies to share intelligence and

combat wildlife smuggling. In 2005–06 a number of successful prosecutions

were made, resulting in a fi rst-ever custodial sentence (3.5 years) for a wildlife

smuggling offence, and a record fi ne ($24 600). Agencies involved include state

and territory wildlife authorities, the Australian Customs Service, the Australian

Federal Police, overseas CITES management authorities, Interpol, and some

non-government organisations such as TRAFFIC—the joint wildlife trade

monitoring programme of the World Wide Fund for Nature (WWF) and the World

Conservation Union (IUCN).

During 2005–06, 5 165 seizures were made under Part 13A of the Act.

More details of these and other wildlife trade activities are included in the report

on the operation of the Environment Protection and Biodiversity Conservation

Act 1999 in the second volume of this set of annual reports.

Project work relating to wildlife trade regulation is partly funded through the

national component of the Natural Heritage Trust. During 2005–06, Natural

Heritage Trust project expenditure for these types of activities was approximately

$85 000.

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Protecting Australia’s biodiversity hotspots

Biodiversity hotspots are areas that are rich in biodiversity but under threat.

Fifteen national biodiversity hotspots were announced in October 2003. In 2004

the Prime Minister announced the Maintaining Australia’s Biodiversity Hotspots

Programme. The programme complements the department’s longer-term work to

protect matters of national environmental signifi cance.

The programme provides incentives to private landholders to protect biodiversity

on their land, and to conservation groups to purchase land to be managed for

conservation. Total funding of $36 million was provided over 2004–2007 for the

programme. Major projects funded this year were:

• $1.5 million to establish a long-term stewardship agreement called BushBids

with private landholders in the eastern Mount Lofty Ranges in South Australia.

BushBids is a partnership between the department and the South Australian

Murray–Darling Basin Natural Resource Management Board. It will protect

grassy woodland communities on private land, which are among the most

threatened ecosystems in Australia. There were 19 successful fi rst round

management agreements, securing long-term conservation of around

10 per cent of the mapped extent of grassy woodlands in the Eastern

Mount Lofty Ranges.

• The University of Queensland Spatial Prioritisation Project to research

continental scale prioritisation of areas for biodiversity conservation

investment. The project models biodiversity values, threats and the costs of

intervention to determine the most effective areas to invest in. The project is

due to report by the end of 2007.

For more information on the programme see www.deh.gov.au/biodiversity/

hotspots/.

Land and water strategies

The department works with other Australian Government agencies, state and

territory governments, representative and research bodies, and internationally

to implement a range of strategies to conserve the land and inland waters. These

strategies address environmental issues relating to Australia’s native vegetation,

agricultural land, and water resources.

Native vegetation management

The National Framework for the Management and Monitoring of Australia’s Native

Vegetation is an agreement made in 2001 between Australia’s federal, state and

territory governments. Governments agreed to reverse the long-term decline

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in the extent and quality of Australia’s native vegetation. Reversing the decline

of Australia’s native vegetation will help conserve biodiversity and will make a

signifi cant contribution to reducing the net emissions of greenhouse gases.

The framework is supported by related government commitments under the

Natural Heritage Trust, the National Action Plan for Salinity and Water Quality

and regional forest agreements, including the Tasmanian Community Forest

Agreement.

Review of the native vegetation framework

In April 2004 the Natural Resource Management Ministerial Council directed its

standing committee to review and update the native vegetation framework. The

department is contributing to this review.

In 2005–06 the standing committee took stock of the progress made by each

jurisdiction and the Australian Government towards achieving the desired

outcomes of the native vegetation framework, and worked on framework

revisions.

The new framework will refl ect desired vegetation management outcomes and

current and future best practice policy, legislation and other measures for the

management of Australia’s native vegetation, to assist in achieving the national goal

of reversing the long-term decline in the quality and extent of Australia’s native

vegetation.

Native vegetation assessment

In 2005–06 the department continued to improve the National Vegetation

Information System, comprising maps of Australia’s major vegetation types. This

work is jointly shared with the Department of Agriculture, Fisheries and Forestry.

This year the department produced a new national map of Australia’s major

vegetation types and updated other products, with help from a number of

Australia’s leading vegetation information experts. The map substantially improves

the quality of information available on the distribution of native vegetation

communities, but currently the National Vegetation Information System cannot

be used to assess changes in vegetation over time. To do this will require regular

‘snap-shots’ of native vegetation across the continent.

A priority for the Australian Government in improving the system’s capacity to

monitor changes in the amount of vegetation cover over time is to encourage all

states and territories to regularly assess changes in vegetation communities. This is

only being done in jurisdictions where it is required by legislation or government

policy.

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An insight into changes in Australia’s native vegetation cover can be gained from

the department’s National Carbon Accounting System. This system uses satellite

data to provide a continent-wide interpretation of changes in forest cover. The

system is nationally consistent and regularly updated, but does not take into

account non-woody native vegetation such as grasslands, and so does not provide

a complete picture.

The National Carbon Accounting System shows there has been a general reduction

in annual deforestation since the 1980s and early 1990s (see fi gure below). The

most recent snap-shot is for 2004. Deforestation for that year is estimated to

be around 400 000 hectares across Australia. This represents about 1/400th of

Australia’s forests and 1/1600th of Australia’s native vegetation (forest and non-forest).

However the deforestation has been concentrated in particular regions, and it is

within these regions that associated impacts on terrestrial biodiversity are likely to

have been the greatest.

National deforestation 1977–2004

000

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Year

Hec

tare

s

Source: AGO, NCAS Deforestation (version 2, May 2006)

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Indicators for native vegetation

This year the department has been working with other stakeholders to develop

nationally agreed indicators for monitoring and evaluation of native vegetation and

apply the indicators. Progress this year includes:

• agreement on three national indicators for native vegetation extent

• development of baseline and change information on vegetation cover in the

National Vegetation Information System

• interim national indicators for native vegetation condition, and pilot studies to

test the indicators in the Northern Territory and New South Wales.

Work is continuing through the National Land and Water Resources Audit to

encourage national uptake of these indicators for reporting purposes.

Environmental aspects of forest agreements

The Department of the Environment and Heritage helps to negotiate conservation

objectives and monitor the environmental outcomes of Regional Forest

Agreements between the federal and state governments during annual and fi ve-

yearly reviews. The Department of Agriculture, Fisheries and Forestry has primary

responsibility for overseeing the 20-year agreements.

Tasmanian Community Forest Agreement

In 2005–06 the department began implementing the environmental aspects of

the Tasmanian Community Forest Agreement including the Forest Conservation

Fund, Tarkine Bushwalk Programme, Tasmanian Forest Tourism Development

Programme, Tasmanian Devil Facial Tumour Programme, and River Catchment

Water Quality Initiative.

The Australian and Tasmanian governments are investing $250 million over six

years (2004–2010) through the Tasmanian Community Forest Agreement to

enhance the protection of Tasmania’s forest environment and to promote growth

in the Tasmanian forest industry. The agreement includes a substantial increase

in protection of old growth forests in reserves, a new programme of incentives

to protect forest on private land, and an end date for clearing native forest. As a

result, Tasmania is developing new statutory measures to prevent the clearing

of rare and threatened non-forest vegetation communities. Forest clearing and

conversion to plantations will cease on public land by 2010 and on private land

by 2015.

Forest Conservation Fund

This year the department prepared implementation plans, and formed a joint

steering committee and stakeholder advisory group for the Forest Conservation Fund.

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The Forest Conservation Fund replaces the Tasmanian Private Forest Reserves

Programme, which ceased in June 2006. Private landowners can sign up to

conserve forests on their land through the new Forest Conservation Fund.

The Forest Conservation Fund will protect up to 45 600 hectares of forested

private land. The fund will target up to 25 000 hectares of old growth forest

and forest communities that are under-reserved. The fund includes $3.6 million

to reserve up to 2 400 hectares of forest in the Mole Creek area, an area of

spectacular ‘karst’ or limestone cave country.

Tasmanian Forest Tourism Development Programme

The Australian Government is providing funds over two years to support the

development of tourism and recreation in Tasmania’s forests, including $1 million

for the Tarkine Bushwalk Programme and $2 million to improve visitor facilities in

the new reserves created under the Tasmanian Community Forest Agreement.

In 2005–06 the department prepared implementation plans and formed a joint

steering committee and stakeholder advisory group to provide infrastructure for

bushwalking in the Tarkine area.

Tasmanian devil facial tumour

The Australian Government is providing $2 million over two years (2005–2007)

to accelerate research into fi nding a cure for the Tasmanian devil facial tumour

disease. First detected in Tasmania in the mid-1990s, the disease is a fatal cancer

that has killed some 30–50 per cent of the wild population of Tasmanian devils.

Research commissioned in 2004–05 suggests that the tumour disease is caused

by abnormal cells transferred between the devils during fi ghts. Research to be

undertaken for the programme includes genetic and toxicological investigations

to assess the level of chemicals within the devils’ tissue, transmission trials, captive

management, and mapping and monitoring of populations.

The impact of the facial tumour disease prompted the listing in July 2006 of the

Tasmanian devil as a vulnerable species under the Environment Protection and

Biodiversity Conservation Act 1999.

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Case studies: addressing threats posed by pests and diseases

Pests and diseases have a major impact on Australia’s environment,

threatening individual species and reducing overall species abundance

and diversity. The department is working with the states and territories to

reduce the impact of pests and diseases on Australia’s native plants, animals,

and agriculture.

One of Australia’s highest priority

pest species is the cane toad. It now

has a range across Queensland, the

Northern Territory and northern

New South Wales. The Australian

Government is working with the

Western Australian and Northern

Territory governments and

community groups to stop cane

toads from crossing the border into

Western Australia and from entering

certain areas such as Tiwi Islands

in the Northern Territory. Control

measures include trapping and

monitoring and public awareness campaigns to reduce the number of toads

‘hitching’ a ride in motor vehicles.

Tasmanian devil facial tumour disease

is a contagious cancer that has led to

severe declines in local populations

of the Tasmanian devil and a

substantial decline in the species’

numbers overall. Scientists began

investigating the possible causes and

means of transmission, with results

to date indicating the disease spreads

by the transmission of cancerous

cells, possibly when devils bite each

other. Uninfected devils are being bred to start an ‘insurance’ population of

devils on the mainland. The Tasmanian Government began trials to create

disease-free sanctuaries, including testing to develop a barrier across the

neck of the Tasman Peninsula.

The fi rst cane toads were discovered in Kakadu National Park in April 2001. Cane toads are now evident throughout Kakadu. Photo: Kakadu National Park

collection

Tasmania devil. Photo: Dave Watts

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River Catchment Water Quality Initiative

The River Catchment Water Quality Initiative will provide $1 million over two

years to assess the impact of chemical use on water quality in Tasmania’s river

catchments. A contract between the Australian and Tasmanian governments was

signed in May 2006. The fi rst stage of the contract will identify the nature and

extent of agricultural and forestry chemical usage in Tasmanian river catchments.

Rangelands conservation

The department continued to promote conservation and sustainable management

of Australia’s rangelands, which cover around 75 per cent of the Australian

continent and include such widely varied ecosystems as tropical savannas,

woodlands, shrublands and grasslands.

The department invested $565 000 from the national component of the Natural

Heritage Trust in the Australian Collaborative Rangelands Information System, the

Rangelands Best Practice Summary Series, incentives to encourage biodiversity

conservation, and other activities.

The Australian Collaborative Rangelands Information System is a national reporting

system that brings together information about natural resources and biodiversity

in rangelands, which is held by government agencies and other organisations. The

information helps property and natural resource managers and regional decision-

makers to make management decisions based on the best understanding of

changes in environmental condition, and is used for national reporting.

The system has been tested in fi ve pilot regions (Gascoyne–Murchison, WA;

Gawler bioregion, SA; Darling–Riverine Plains bioregion, NSW; Desert Uplands

bioregion, Queensland; and the Victoria River District, NT) for the quality of the

information and its capacity to bring it together into a national picture. These

regions have a combined area of 1 030 960 square kilometres, approximately

16.2 per cent of the rangelands and 13.4 per cent of Australia. The results have

given researchers some insight into methods which help address one of the major

challenges facing rangelands managers—how to distinguish short-term seasonal

infl uences from permanent and adverse environmental change resulting from

poor management practice.

The department is producing a series of summary reports on managing

biodiversity in the rangelands. Titles released to date are Management of total

grazing pressure; Fire management; Assessing fi nancial and environmental

impacts of management options; and Industry guidelines for sustainability.

Further titles in the series will address biodiversity monitoring, weeds, feral

animals, and water management. These are expected to be available by

September 2006 in time for the national conference of the Australian

Rangelands Society.

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Copies of the summary reports can be obtained from the Department of the

Environment and Heritage Community Information Unit. All reports can be

downloaded from the departmental website at www.deh.gov.au/land/management/

rangelands/.

Conservation incentives

With 63 per cent2 of Australian land in private ownership, efforts are being made to

extend protection of biodiversity to private land. The department offers incentives

for landholders to conserve biodiversity on private land. Eligible landholders can

access Natural Heritage Trust funding or Australian Government tax incentives in

return for entering into formal conservation agreements such as covenants.

There are currently 10 covenanting programmes approved by the Minister for

the Environment and Heritage for the purposes of the Income Tax Assessment

Act 1997. The role of these programmes is to enter into conservation covenants

with individual landholders. During 2005–06 these programmes entered into 227

perpetual covenants with landholders protecting 67 854 hectares of private land.

The department is leading a project to investigate the potential for a market-based

approach to improve conservation on both pastoral properties and Indigenous

managed rangelands. The project is fi eld-testing a rating scale for natural resource

condition in the rangelands to use in incentives programmes. The effectiveness of

the rating scale and market options in achieving biodiversity conservation is being

tested in several regions. The project is due for completion in late 2006.

The department commenced a review of the revolving fund model developed

under the national component of the Natural Heritage Trust. The performance

of both the individual contracts and the model as a whole is being reviewed.

Revolving funds buy properties containing high conservation values, protect the

high conservation values through a conservation covenant, and resell the property.

The funds are managed by specialist non-government organisations.

Environmental aspects of water reform

The department leads on environmental water matters and the urban water

reform outcomes of the National Water Initiative, in particular those being

progressed by the Environment Protection and Heritage Council (a council of

government ministers responsible for environment and heritage protection

matters). The department is also responsible for national policy and regulatory

activities regarding Ramsar wetlands and for the Australian Government Water

Fund’s Community Water Grants which are administered in conjunction with the

Department of Agriculture, Fisheries and Forestry.

2 http://www.ga.gov.au/education/facts/tenure.htm

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National Water Initiative

At the June 2004 meeting of the Council of Australian Governments the Prime

Minister and premiers agreed to establish the National Water Initiative, a blueprint

for Australia’s water reform. The initiative sets out actions to be implemented over

the next 10 years.

The initiative includes a commitment to return over-allocated water to river and

groundwater systems identifi ed as having important conservation value to ensure

the systems are protected and water levels are maintained. It also includes a

commitment to ensure water allocated to meet environmental and other public

benefi t outcomes will be given at least the same degree of security as water

allocated to other users.

The National Water Initiative includes actions on urban water reform. Urban water

reform aims to ensure safe and reliable water supplies, while increasing effi ciency

and encouraging recycling and innovation in water supply sourcing, treatment,

storage and discharge.

The Living Murray Initiative

The department manages the Australian Government’s responsibilities for

environmental aspects of The Living Murray Initiative. The Department of

Agriculture, Fisheries and Forestry administers the funding for The Living Murray

Initiative and the Murray–Darling Basin Commission.

The Murray–Darling Basin covers one-seventh of the Australian continent and

generates about 40 per cent of the national income derived from agriculture and

grazing. Water storage and regulation have affected the natural fl ow cycles of rivers

and groundwater in the Murray–Darling Basin.

The Australian Government has committed $200 million over fi ve years

(2004–2009) to recover water for the environment. The Living Murray Initiative

‘fi rst step’ agreement aims to recover up to 500 gigalitres of water per year for

six icon sites in the Murray–Darling Basin: Barmah–Millewa Forest, Gunbower–

Koondrook Pericoota Forests, Hattah Lakes, Chowilla Floodplain (including

Lindsay–Wallpolla), the Murray Mouth Coorong and Lower Lakes, and the

Murray River Channel. Five of these sites include Ramsar-listed wetlands. The

fi rst step agreement also includes a $150 million programme of capital works

and complementary actions to effectively manage the water and maximise

environmental outcomes.

In 2005–06 the Australian Government committed an additional $500 million over

fi ve years to the Murray–Darling Basin Commission to accelerate implementation

of The Living Murray and other important actions across the Murray–Darling Basin

such as salinity mitigation.

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In 2005–06 over

36 000 hectares of the

River Murray system

including Living Murray

icon sites were watered

using water from

state environmental

allocations, surplus

fl ows and fl ows from the

Snowy environmental

account. Effective

watering was achieved

by fl ow enhancement,

weir manipulation,

regulation of creeks

and channels, pumping

and managed barrage

release. This year nankeen night heron bred in Barmah Forest for the fi rst time in

40 years, and silver perch successfully spawned. Vegetation communities, including

river red gum, also responded well to the additional water.

The Australian Government also provided $687 000 to recover water for

emergency watering of river red gums and associated activities in Victoria, and

$650 000 for watering river red gums, wetlands and fl oodplains in South Australia,

and to support initiatives to encourage water donations. This funding was matched

by state jurisdictions.

More information is available at www.thelivingmurray.mdbc.gov.au.

High conservation value aquatic ecosystems

As part of the National Water Initiative governments have agreed to identify and

provide for the effective management of Australia’s high conservation value aquatic

ecosystems. In November 2005 the Natural Resource Management Ministerial

Council agreed to establish a high level strategic task group to oversee the

development of a national framework. The department chairs this group.

Interaction between surface- and ground-water

In 2005–06 the department invested $25 000 from departmental funds and the

national component of the Natural Heritage Trust to research the response of

groundwater-dependent ecosystems to changes in water availability. Groundwater

sustains a range of natural habitats and is extensively used for urban water

supplies, agriculture, irrigation, industry and mining.

Nankeen night heron nestlings.

Photo: R. Jaensch, Wetlands International

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Urban water reform

The department is progressing urban water reforms under the National Water

Initiative including the continued implementation of the National Water Quality

Management Strategy. The Environment Protection and Heritage Standing

Committee and the Natural Resource Management Steering Committee formed

the Joint Steering Committee on Water Sensitive Cities to progress key elements

of the National Water Initiative focusing on innovative urban design and planning.

The department chairs this committee.

National guidelines on water quality

To date the department has produced 21 national guidelines for managing key

elements of the water cycle such as the Australian drinking water guidelines,

2004 and Australian and New Zealand guidelines for fresh and marine water

quality, 2000.

The department is working with the Department of Agriculture, Fisheries and

Forestry, and state and territory agencies, to develop new guidelines for water

recycling.

Guidelines on the use of recycled sewage and grey water are being revised in light

of comments received during the public consultation process. They are due for

release in late 2006. Guidelines for recycling storm water and managing aquifer

recharge and recycled water for drinking are in the early stages of development.

The department is leading the development of national guidelines for customer

water accounts that compare their water use to that of equivalent households.

These guidelines will assist water utilities to provide water accounts that better

enable customers to assess their water consumption. The draft guidelines are to be

released for comment in the second half of 2006.

Water resource accounting

In 2005–06 the department contributed to work undertaken by the National Water

Initiative Committee to develop guidelines for a national water accounting system.

Water accounting is a key area of investment under the Australian Government’s

Raising National Water Standards Programme. This programme aims to ensure

that adequate measurement, monitoring and reporting systems are in place in all

jurisdictions to support public and investor confi dence in the amount of water

being traded, extracted for consumptive use, and recovered and managed for

environmental and other public benefi t outcomes.

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Community Water Grants

Community Water Grants are part of the Australian Government’s $2 billion

Australian Government Water Fund. Community Water Grants fund practical,

on-ground projects to save water. The department jointly administers the

programme with the Department of Agriculture, Fisheries and Forestry.

Community groups, schools, local government, catchment management

authorities, environmental groups and non-government organisations as well

as individuals and businesses are eligible for grants of up to $50 000 each. To be

successful applicants must be able to demonstrate very high public benefi t.

Following a demonstration round in early 2005, the fi rst open round of

Community Water Grants was launched on 30 June 2005. Close to 5 000

applications were received making the assessment process highly competitive.

In March 2006 the Australian Government approved 1 750 water saving projects,

which will share over $55 million. Projects worth $46 million were funded in

2005–06. The projects are expected to save approximately 18 500 megalitres

of water each year as well as rehabilitating about 15 000 hectares of land.

Communities will contribute more than $61 million, including 345 000 hours of

volunteer time, to ensure the success of their projects.

The department is at the forefront of electronic programme management with

Community Water Grants. Applications are assessed and ranked in a database

against the programme’s merit criteria, which include value for money and

amount of water saved. Any projects with a potential risk to human health or the

environment are independently reviewed by experts.

Further developments in the online form, database merit assessment, electronic

contract management, and project tracking and reporting are expected to halve

the time for processing applications and projects next year.

More information on Community Water Grants is available at

www.communitywatergrants.gov.au/.

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All project locations

Featured facilities

Helping communities to conserve water

Australia is the driest inhabited continent in the world and yet Australians are amongst the highest water users in the world. The government is working with communities to reduce water consumption and protect water quality.

The Australian Government’s $200 million Community Water Grants programme offers grants of up to $50 000 to help local community organisations save, recycle or improve the health of their local water resources. To date the government has funded 1 777 projects (1 750 in 2005–06) with projected water savings totalling 18 500 megalitres per year.

City of Bunbury, Bunbury

Installing a weather station to control irrigation

for the City of Bunbury will save 50 megalitres of water per year. Grant: $45 287

Yates Piggery, Kimba

Filtering and reusing the water used to fl ush the sheds at Yates

Piggery will reduce effl uent discharged into the environment

and save 4 megalitres of

water per year. Grant: $10 443

Friends of Judd Park, Nubeena

The Friends of Judd Park are working

with their local community to

develop a scheme for treating stormwater

before it enters the environment of Parson’s Bay. Grant: $12 207

Ballarat Christian School, Ballarat

Ballarat Christian School and the

local church community will build a retention basin, pollutant

trap and wetlands that will help stop

the build-up of silt and improve

the quality of water entering the

Yarrowee River. Grant: $41 214

Dapto Community Farm, Dapto

Repairing the irrigation

system at Dapto Community Farm will save 5 mega-

litres of water per year.

Grant: $39 734

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Wetlands of national and international importance

Australia’s wetlands protect our shores from wave action, reduce the impacts of

fl oods, absorb pollutants, and provide habitat for birds, animals, and plants. They

are historically important and often have signifi cant cultural values.

Some of Australia’s wetlands have been adversely impacted by urbanisation,

irrigation development and other development activities. Altered fl ooding and

drying regimes have adversely affected many wetlands.

The department is responsible for implementing the Convention on Wetlands of

International Importance especially as Waterfowl Habitat (the Ramsar Convention).

The department also administers the Environment Protection and Biodiversity

Conservation Act 1999 provisions for Ramsar wetlands.

To date, 7.3 million hectares of wetland are listed under the Ramsar Convention.

Of these wetlands, 82 per cent have management plans in operation.

New national implementation framework

The department is working with the states and territories on a new strategic

framework to support improved implementation of the Ramsar provisions of the

Environment Protection and Biodiversity Conservation Act 1999.

The framework will include guidelines for nominating a site for listing under the

convention and for reviewing the status and condition of listed Ramsar sites.

This year the department made signifi cant progress towards standardising

methods for describing the ecological character of wetlands. Following a successful

national workshop attended by key wetland scientists and managers a guideline

will be developed for use nationally. This work is leading the fi eld internationally

and will provide a valuable tool to document and manage internationally and

nationally important wetlands.

The department is compiling a wetlands inventory with the National Land and

Water Resources Audit and state and territory agencies. The inventory will

document the location and extent of Australia’s wetlands and include information

on their attributes and values. These data will be publicly accessible and will help

guide wetlands conservation, wise use and management, and wetlands restoration.

More information is available at www.deh.gov.au/water/wetlands/index.html.

Lake Eyre Basin Intergovernmental Agreement

The Lake Eyre Basin is an area of more than one million square kilometres

covering almost 17 per cent of Australia. Although cattle grazing, tourism and

natural gas production have had some impact on the landscape of the basin, all in

all the catchments supplying water to Lake Eyre are relatively pristine.

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This year the department continued to work with South Australia, Queensland and

the Northern Territory to protect the Lake Eyre Basin through the Lake Eyre Basin

Intergovernmental Agreement. The agreement will be reviewed in late 2006.

In 2005–06 an atlas of the hydrology of the Lake Eyre Basin was completed. The

atlas provides a stronger scientifi c base for management and will inform the new

Lake Eyre Basin Rivers Assessment Project. The key fi ndings of the hydrological

atlas have been summarised in a 12-page brochure, which is available from the

department’s Community Information Unit on 1800 803 772.

The rivers assessment project will examine the condition of the Lake Eyre

catchment, monitor potential impacts from future water development activities

and protect the rivers of the basin from long-term decline. In 2005–06 three

gauging stations were installed in the Georgina, Burke and Diamantina rivers. The

gauging stations are monitoring surface water and communicating data to resource

managers via satellite.

International activities

The department is responsible for Australia’s whole-of-government response to

the United Nations Convention on Biological Diversity. The convention provides

the framework for Australia’s biodiversity policies, particularly the National

Biodiversity Strategy and Action Plan (1993).

An internal review of Australia’s strategic interests and priorities under the

Convention on Biological Diversity was completed in 2005. The outcomes

of the review enabled the government to refi ne strategies to manage the

convention’s expanding agenda of complex cross-cutting issues, such as trade

and the environment, and agricultural biodiversity. Australia worked closely with

like-minded countries to secure practical outcomes and decisions at the major

convention meetings, including the 8th meeting of the convention’s decision-

making body, the conference of the parties, which was held in Brazil in

March 2006.

The department is also responsible for Australia’s whole-of-government response

to the United Nations Convention to Combat Desertifi cation, which provides a

framework for Australia’s technical assistance to developing countries combating

the environmental, social and economic consequences of land degradation

and desertifi cation. Australia reinforced its emphasis on designing practical

programmes of work under this convention during major meetings in 2005–06,

especially the 7th conference of parties, which was held in Kenya in October 2005.

The convention is the international focal point for the 2006 International Year

of Deserts and Desertifi cation, which in Australia is being marked by the 2006

Australian Rangelands Conference.

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Land and water investments

The department invests through the Natural Heritage Trust in conserving

Australia’s land and inland water resources.

The Department of the Environment and Heritage receives the annual

appropriation for the Natural Heritage Trust. The department and the Department

of Agriculture, Fisheries and Forestry have a cross-portfolio arrangement for the

administration of the Natural Heritage Trust and the National Action Plan for

Salinity and Water Quality. The arrangement enables both departments to deliver

the Natural Heritage Trust through a joint Australian Government Natural Resource

Management Team. A board made up of the Minister for the Environment and

Heritage and the Minister for Agriculture, Fisheries and Forestry administers the

Natural Heritage Trust.

Administration of the Natural Heritage Trust

The $3 billion Natural Heritage Trust was established by the Australian Government

in 1997 to invest in activities that help to restore and conserve Australia’s

environment and natural resources. Activities are undertaken at regional, national,

and local scales:

• Actions at the regional scale attract the largest component of Natural Heritage

Trust investment (54 per cent in 2005–06). At this scale communities in

56 regions across Australia develop regional plans and investment strategies

that identify priorities for funding under both the Natural Heritage Trust and

the National Action Plan for Salinity and Water Quality. Federal, state and

territory governments are working together to fund these plans. As at

30 June 2006, Australian Government ministers had accredited 54 integrated

natural resource management regional plans, approved a regional strategic

directions plan, and had agreed to 55 investment strategies as the basis for

government investment.

• Actions at the national scale attract the second largest component of Natural

Heritage Trust investment (39 per cent in 2005–06). At this scale the Natural

Heritage Trust supports government projects that will have a national outcome,

as opposed to a regional or local outcome, including projects carried out

by state and territory governments. These projects are the principal source

of funds for some departmental activities. Project funding covers some

administrative costs including salaries.

• Actions at the local scale attract the third component of Natural Heritage

Trust investment (7 per cent in 2005–06). At this scale community groups can

address local environmental problems through grants of up to $50 000

(GST inclusive) under the Australian Government Envirofund.

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During 2005–06, the Department of the Environment and Heritage provided

$7.57 million to the Department of Agriculture, Fisheries and Forestry under a

purchaser-provider arrangement to fund the administration costs incurred in

implementing the Natural Heritage Trust.

Detailed results of Natural Heritage Trust investment are provided in the annual

reports of the Natural Heritage Trust and the annual regional programme reports

available at www.nrm.gov.au/publications/#annreps.

Reviews of the Natural Heritage Trust

Eight independent evaluations of the Natural Heritage Trust were completed this

year. Four concerned the outcomes of regional investment covering biodiversity,

signifi cant invasive plant species (weeds), land salinity and sustainable agriculture.

Two looked at the administrative arrangements for regional delivery including

governance arrangements and the effectiveness of bilateral agreements between

the Australian and state and territory governments for the Natural Heritage Trust

extension. The other reports were on the effectiveness of the local and national

investments in the Australian Government Envirofund and the National Investment

Stream.

The evaluations supported the continuation of the national, regional and local

level delivery of the Natural Heritage Trust. In particular, the regional component

jointly delivered with the National Action Plan for Salinity and Water Quality was

found to have promoted a more strategic and integrated approach to natural

resource management across Australia.

Long timeframes are required to achieve changes in the condition of natural

resources. The reports acknowledged this and supported long-term funding

to continue on-ground activities applying established and emerging science to

implement best practice and ensure adaptive management of natural resources.

The challenge remains to complete baseline data and monitor changes in resource

condition. The reports recommended simplifying the programme design and

streamlining accountability requirements.

Two more evaluations are expected to be completed in 2006 on the outcomes of

regional investment to protect coastal and marine environments and the impact of

the national facilitator network on regional outcomes.

Bushcare, Landcare and Rivercare

Investments are also categorised according to environmental outcome as part

of the themes of the Natural Heritage Trust: Bushcare (37 per cent in 2005–06),

Coastcare (18 per cent in 2005–06), Landcare (30 per cent in 2005–06) and

Rivercare (16 per cent in 2005–06).

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Bushcare, Landcare and Rivercare aim to conserve and restore habitat for native

fl ora and fauna, reverse land degradation and promote sustainable agriculture,

and improve water quality and the environmental condition of river systems and

wetlands.

Total expenditure in 2005–06 under Bushcare was $114 million, under Coastcare

was $55 million, under Rivercare was $50 million and under Landcare was

$93 million.

Strengthening Tasmania—Tamar River pylons

During 2005–06 the department managed a $1 million programme to install pylons

at the edge of the North Esk River, a tributary of the Tamar near Launceston,

Tasmania. The project will replace 100-year-old rotting timber pylons with new

ones and rebuild and stabilise an unsafe levy. The work will help improve river

health, boost fl ood protection and increase recreational opportunities on the

North Esk River. The work is expected to be completed by 30 June 2008.

Support for the National Action Plan for Salinity and Water Quality

The Australian Government has committed $700 million over eight years

(2000–2008) to implement the National Action Plan for Salinity and Water Quality,

building on related work under the Natural Heritage Trust.

The Department of Agriculture, Fisheries and Forestry is responsible for

administering the National Action Plan for Salinity and Water Quality. The

Department of the Environment and Heritage provides administrative support to

the Department of Agriculture, Fisheries and Forestry under a purchaser-provider

arrangement associated with a joint Australian Government Natural Resource

Management Team, which also manages the Natural Heritage Trust.

In 2005–06, the Department of the Environment and Heritage received

$1.048 million under the purchaser-provider arrangement for implementation

activities.

Through the joint team the two departments are helping people in 56 regions

across Australia to develop integrated natural resource management plans for both

the National Action Plan for Salinity and Water Quality and the Natural Heritage

Trust. The plans set priorities for controlling salinity and protecting water quality.

Once these plans are accredited by the Australian Government, each region

develops an investment strategy, which is the basis for further funding. All of the 21

priority National Action Plan regions have accredited regional plans and investment

strategies which were developed for the 32 natural resource management regions

that cover these areas.

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Detailed results of National Action Plan for Salinity and Water Quality investment

are reported in the annual reports of the Department of Agriculture, Fisheries and

Forestry at www.nrm.gov.au/publications/#books.

Terrestrial parks and reserves

The Director of National Parks is a statutory offi ce established by the Environment

Protection and Biodiversity Conservation Act 1999. The Director is responsible,

amongst other things, for the administration, management and control of

Commonwealth reserves and for protection, conservation and management of

biodiversity and heritage in those reserves. The Director is supported by staff of

the Department of the Environment and Heritage.

Protected area management

Commonwealth reserves for which the Director of National Parks is responsible

include remote national parks, marine parks and botanical gardens. Kakadu,

Uluru–Kata Tjuta and Booderee national parks are jointly managed with their

Indigenous traditional owners.

In 2005–06 re-branding of Kakadu National Park as one of Australia’s prime visitor

experiences got under way, based on the Shared Tourism Vision for Kakadu

released by the park’s board of management in early 2005. This work is being

developed in close collaboration with Tourism Northern Territory.

The Australian Government provided $1.77 million to fund capital works,

accelerate the development of crucial tourism policies and help deliver new

visitor experiences, to make sure Kakadu regains its place as a prime international

tourism destination. A further $5.45 million was provided for infrastructure and

equipment in Uluru and Kakadu national parks, including a new sunrise viewing

area at Uluru–Kata Tjuta National Park.

Detailed information about management outcomes for 2005–06 appears in the

annual reports of the Director of National Parks (see www.deh.gov.au/parks/

publications).

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Case study: Fox control in Booderee National Park

Stringent fox control measures

in Booderee National Park are

producing a recovery in native

animal populations, with long-

nosed bandicoot and eastern

bristlebird numbers increasing

strongly. Particularly pleasing

is the re-discovery this year of

the rare white-footed dunnart,

a small marsupial not found

in Booderee for over 40 years.

The integrity and security of

the park’s natural environment

have prompted studies into the

reintroduction of other species

previously lost from the park.

Long-nosed bandicoot. Photo: Booderee National Park image collection

Eastern bristlebird. Photo: Booderee National Park

image collection

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National Reserve System Programme

The Natural Heritage Trust’s National Reserve System Programme supports the

purchasing and covenanting of properties to add to the National Reserve System.

During 2005–06 the programme helped to buy or covenant 478 227 hectares of

land. The 15 properties approved this year include six wetlands, which were poorly

represented in the National Reserve System. The properties contain 42 threatened

or near-threatened communities and habitat for at least 32 nationally threatened

fl ora and fauna species.

Three properties with signifi cant conservation value acquired for the National

Reserve System in 2005–06 were:

• 56 261 hectares of Tamala Pastoral Lease, Western Australia, located within

the Shark Bay World Heritage Area. The region is one of 34 international

biodiversity hotspots, containing at least 314 species of fl owering

plant, including 29 new fl ora records. This acquisition improves the

comprehensiveness and adequacy of these plant communities in the reserve

system and helps to rationalise the boundaries and improve connections

between reserves in the Shark Bay region

• 455 hectare property at Chauncy Vale, Tasmania. The property adjoins Chauncy

Vale Wildlife Sanctuary and Alpha Pinnacle Conservation Area. It contains

1.9 hectares of endangered lowland grassland, 41 hectares of vulnerable grassy

blue gum forest and 38.4 hectares of vulnerable silver peppermint forest on

sediments. The swift parrot, Tasmanian wedge-tailed eagle, masked owl and

clasping leaf heath are known to occur on the property

• 31 hectares at Porter Hill, Tasmania. The property links four existing protected

areas, and contains fi ve forest and woodland communities of high conservation

signifi cance and habitat for the threatened swift parrot and eastern barred

bandicoot.

The National Reserve System now protects 80.89 million hectares across 7 720

protected areas. This represents 10.52 per cent of Australia’s land area. The

National Reserve System Programme has assisted the acquisition of 266 properties

comprising over 6.8 million hectares to 30 June 2006.

An external review in 2006 of the National Reserve System Programme concluded

that the programme is a successful and cost-effective component of the Australian

Government’s efforts to conserve biodiversity.

For more information refer to the annual reports of the Director of National Parks

at www.deh.gov.au/parks/publications.

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Case study: Boolcoomatta—conservation in the pastoral zone

In March 2006 the Australian Bush

Heritage Fund3 purchased Boolcoomatta

Station with the assistance of the Nature

Foundation SA4 and the National Reserve

System Programme to create a nature

reserve. Boolcoomatta Station is an arid

outback sheep station in the Olary Ranges

of South Australia with vast saltbush

and native grassland plains, wetlands

and rugged rocky outcrops. The station

contains important arid ecosystems and

threatened species including plants such as

purple wood and birds such as the plains

wanderer and the thick-billed grasswren.

The Australian Bush Heritage Fund is

managing the property including the

recovery of plant and animal populations

by removing threats and encouraging

regeneration.

The addition of the station to Australia’s

National Reserve System will conserve an

additional 63 000 hectares of threatened

arid ecosystems in the north-eastern

pastoral area of South Australia for future

generations.

Since 1997 the National Reserve System

Programme has supported the restoration

of neighbouring Plumbago Station through

the Bounceback programme and the purchase of Bimbowrie Station by

the South Australian Department for Environment and Heritage. This has

contributed to conservation in the region by increasing the protection of the

habitats of many rare or threatened ecosystems and species.

These programmes and purchases provide a good model for the National

Reserve System operating in the pastoral zone.

Oonartra Creek. Photo: P. Taylor

3 The Australian Bush Heritage Fund is a national, independent, not-for-profi t organisation that acquires and manages land of

outstanding conservation signifi cance.

4 The Nature Foundation SA is a state, independent, not-for-profi t organisation that seeks to better protect biodiversity in

South Australia.

Location of Boolcoomatta,

Bimbowrie and Plumbago

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Indigenous protected areas

Indigenous protected areas are non-statutory protected areas that form part of

the National Reserve System. The Indigenous Protected Areas Programme helps

Indigenous landowners establish and manage Indigenous protected areas on their

lands through contractual arrangements between Indigenous communities and

the Australian Government. The programme also promotes the integration of

Indigenous ecological and cultural knowledge into the management of

these areas.

This year the Natural Heritage Trust provided $2.5 million for the programme.

An independent evaluation of the Indigenous Protected Areas Programme was

conducted during the year and will be released in late 2006. Public submissions

strongly supported the programme.

In June 2006 an additional Indigenous protected area was declared on the Groote

Eylandt archipelago in the Gulf of Carpentaria. The Anindilyakwa (Groote Eylandt)

Indigenous Protected Area covers 300 000 hectares of high biodiversity land and

takes the level of reservation in the Arnhem Coast bioregion from three per cent to

12.5 per cent.

The declaration of Anindilyakwa takes the total number of declared Indigenous

protected areas to 20 covering a total of 14 million hectares.

Genetic resources management

In October 2002 the Natural Resource Management Ministerial Council signed

an intergovernmental agreement to maximise benefi ts from the ecologically

sustainable use of Australia’s genetic and biochemical resources while at the same

time protecting Australia’s biodiversity and natural capital.

As part of this agreement, each Australian jurisdiction is establishing a legal

framework for accessing and using genetic resources.

On 1 December 2005, amendments to Regulations under the Environment

Protection and Biodiversity Conservation Act 1999 about access to biological

resources entered into force. The Regulations control the taking of genetic

resources or biochemical compounds from native species in Commonwealth areas

for research and development.

The department is working with state and territory jurisdictions to ensure their

approaches are nationally consistent. Under an agreement with Biotechnology

Australia, the department is administering $2 million over the period 2004–2008 to

fund this national coordination.

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Australian Biological Resources Study

The Australian Biological Resources Study funds research and training in the fi elds

of taxonomy and biogeography. The programme aims to fi nd out what plants,

animals, and other organisms occur in Australia, and where they occur, so as to

increase taxonomic knowledge needed for the conservation and sustainable use of

Australia’s biodiversity.

Administrative funds

expenditure under

this programme in

2005–06 was $1.869

million. This funding

supported taxonomic

publications and

research. Results will

contribute to the Flora

of Australia Online and

the Australian Faunal

Directory (www.deh.

gov.au/biodiversity/

abrs), which hold data

on 70 900 species, and

other publications.

Taxonomic

investigations this

year included research

into introduced

pests, such as smut

fungi, which causes

diseases to cereals

and native grasses;

and key species, such

as polychaetes—

segmented

seaworms—which are an important food source for many commercially

important shellfi sh and fi sh.

Work continued on the development of the Australian Biodiversity Information

Facility data portal with funding from the Natural Heritage Trust. This portal

will provide access to a wide range of biodiversity data held and maintained by

individuals and institutions throughout Australia. The Australian Biodiversity

Information Facility website has been updated and is at www.abif.org.

Australian Biological Resources Study publications

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Tropical wetlands research

The department’s Environmental Research Institute of the Supervising Scientist

advises on the management of tropical rivers and their extensive associated

wetlands in northern Australia. It is a partner in the National Centre for Tropical

Wetland Research and publishes a wide range of scientifi c research on tropical

wetlands and rivers.

Ecological inventory and risk assessment of tropical rivers

Australia’s northern river systems are poorly understood but are often cited as

offering development potential, chiefl y for agriculture, horticulture and mining.

The department is investing in Australia’s Tropical Rivers Programme to increase

knowledge about the environmental characteristics of these tropical river systems.

During 2005–06 the department invested $300 000 from the Natural Heritage Trust

to fund the Tropical Rivers Inventory and Assessment Project, administered by

Land and Water Australia’s Tropical Rivers Programme.

The project examines 51 catchments across northern Australia from Broome in the

west of the continent to the top of the western tip of Cape York, covering some

1 192 000 square kilometres. There are three focus catchments, representing each

state or territory within the study region, that are being assessed in more detail.

These are the Fitzroy River in Western Australia, the Daly River in the Northern

Territory, and the Flinders River in Queensland.

The outcome of this work will be an information base for assessing change and

supporting ecological risk assessments of major pressures on the rivers. The

information base will inform and support holistic approaches for management of

tropical rivers and wetlands by the various stakeholder groups in the region. This

project is due for completion in 2006–07.

More information on tropical wetlands research is available at

www.deh.gov.au/ssd/nctwr.html.

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Results for performance indicators

Performance indicator 2005–06 result

Recovery of threatened terrestrial wildlife

Number of recovery plans (i) being prepared and (ii) in operation

(i) 348 recovery plans in preparation

(ii) 264 plans in operation

Percentage of listed threatened terrestrial species and ecological communities with recovery plans in operation

21% of listed threatened terrestrial species and ecological communities have a recovery plan in operation. This increases to 52% when including plans in preparation

Key threats to terrestrial biodiversity

Number of threat abatement plans (i) being prepared or revised, and (ii) in operation

(i) 5 threat abatement plans being prepared

(ii) 9 in operation

Of those listed key threatening processes on the land that require a threat abatement plan, the percentage that have threat abatement plans in operation

91% i.e. 10 of 11. The 11th plan is being developed

Native vegetation (including forests)

Percentage change in native vegetation cover, using the National Carbon Accounting System

Estimated to be less than 1%. The trend in loss of native vegetation cover since the early 1990s is likely to be declining

Protected wetlands

Area of Ramsar-listed wetlands 7.3 million hectares

Percentage of Ramsar-listed wetlands with management plans in operation

Of the Ramsar listed wetlands, 82% have management plans in operation

Australian national parks and other terrestrial protected areas

Area of land protected and managed through the National Reserve System Programme (NRSP), including area of declared Indigenous protected areas

20.6 million hectares (0.48 million hectares added in 2005–06)

Percentage of protected areas (other than Indigenous protected areas) that have been gazetted

87.5%. This percentage is for properties acquired up to the end of the 2003–04 fi nancial year. The fi gure does not include information for the last two fi nancial years because under the NRSP funding agreement a proponent may take up to two years to fi nalise gazettal of a protected area

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Performance indicator 2005–06 result

Australian Biological Resources Study Participatory Grants Programme (administered item)

Number of taxa revised or newly described under the programme

2 355 at December 2005

Final reports from administered funding grantees are due in December each year. The fi gures reported in December 2006 will be made available at http://www.deh.gov.au/biodiversity/abrs/admin/annual report/index.html

Number of peer reviewed taxonomic information products produced or funded by the programme

141 at December 2005

Final reports from administered funding grantees are due in December each year. The fi gures reported in December 2006 will be made available at http://www.deh.gov.au/biodiversity/abrs/admin/annual report/index.html

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 57 taxonomic research projects

Protecting Australia’s Biodiversity Hotspots (administered item)

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of interventions to protect identifi ed hotspots

19 agreements under BushBids

Number of projects funded 3: BushBids (Mt Lofty) Stewardship Initiative ($1.5 million)

BushBids Independent Probity Consultant

University of Queensland Spatial Prioritisation Project ($110 000)

Bushcare, Landcare, Rivercare, Coastcare(a) (administered item–Natural Heritage Trust)

Percentage of natural resource management regions that have an accredited natural resource management plan

96% (54 of 56) of the natural resource management regions have an accredited regional plan. Another region has an approved regional strategic directions plan

Percentage of natural resource management regions that have an approved investment strategy

98% (55 of 56) of the natural resource management regions have an approved investment strategy

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded See Natural Heritage Trust annual report and annual regional programme reports

(a) The natural resource management regional plans and investment strategies address the objectives of all four ‘Cares: Bushcare, Rivercare, Landcare and Coastcare. Projects can achieve multiple outcomes with expenditure and outcomes often attributed to two or more of the cares programmes.

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Performance indicator 2005–06 result

Australian Government’s Community Water Grants Programme (administered item)

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 1 750 projects approved in round 1 and approximately 80% received funding this year.

Strengthening Tasmania—Tamar River Pylons (administered item)

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

A sustainable future for Tasmania—Community Forest Agreements (administered item)

Proportion of Forest Conservation Fund reservation target met

Yet to commence

Improved access to forest areas for tourists Yet to commence

Level of landholder involvement in voluntary forest reservation programme

Yet to commence

Increased private tourism investment initiated through tourism funding

Yet to commence

Area of private land reserved under the Forest Conservation Fund

Yet to commence

Sub-output 1.2.1—Wildlife protection

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(b)

100%

Percentage of statutory timeframes triggered that are met (Target: >90%)(c)

98% of statutory timeframes triggered under the EPBC Act were met during 2005–06(d). Details and reasons are provided in the EPBC Act Annual Report in Volume 2 – Legislation Annual Reports

Sub-output 1.2.2—Land and water strategies

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(b)

100%

Percentage of statutory timeframes triggered that are met (Target: >90%)(c)

> 90% timeframes met in accordance with departmental standards

Sub-output 1.2.3—Land and water investment

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(b)

100%

Percentage of statutory timeframes triggered that are met (Target: >90%)(c)

Not applicable

(b) Applies to provision of grants programmes funded entirely from the Department of the Environment and Heritage appropriations for the output.

(c) Applies to areas that administer legislation, for example reporting timeframes triggered under the Environment Protection and Biodiversity Conservation Act 1999.

(d) Includes statutory extensions under the EPBC Act.

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Performance indicator 2005–06 result

Administration of the Natural Heritage Trust (purchased output)

All investments approved by Ministers in 2005-06 are provided with funding, in accordance with Trust accountability and acquittal procedures, to meet the Trust’s objectives

Funding was provided under fi nancial agreements that refl ect accountability, reporting and acquittal procedures

All approved investments contributed to Natural Heritage Trust objectives and were consistent with the priority areas of activity

The number of investment strategies that are prepared, evaluated and for which funding is agreed and specifi ed in fi nancial agreements

The number of individuals/community groups supported through Australian Government Envirofund grants

The number of on-ground actions funded by the Trust

55 of the 56 natural resource management regions have an investment strategy that was evaluated and for which funding is agreed and specifi ed in fi nancial agreements

Through the Envirofund, 1 145 projects (worth $20 million) were approved, approximately equal to number of individuals and community groups supported (4 600 projects funded since 2002)

For on-ground actions, see the Natural Heritage Trust annual report and annual regional programme reports

Investment strategies refl ect agreed priorities and delivery arrangements for the Trust

Activities receiving funding through regional investment strategies refl ected agreed priorities and delivery arrangements

Integrated Natural Resource Management Regional Plans meet agreed accreditation criteria

54 of the 56 natural resource management regions have accredited regional plans and another region has an approved regional strategic directions plan

The administration of the Trust is consistent with comparable grants and natural resource management programmes

The regional components of the Natural Heritage Trust and National Action Plan for Salinity and Water Quality are delivered in tandem through the natural resource management regions, ensuring consistency in administration

Local level delivery of the Natural Heritage Trust through the Australian Government Envirofund informs and is informed by comparable grants programmes such as the National Landcare Programme and the Australian Government Water Funds Community Water Grants

A monitoring and evaluation strategy is in place at each level of the Trust delivery framework

A monitoring and evaluation strategy is in place at each level of the Natural Heritage Trust framework. Implementation of the strategies has been agreed with all states and territories

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Resources

Departmental outputs Budget prices $’000

Actual expenses $’000

Sub-output: 1.2.1 Wildlife protection

Sub-output: 1.2.2 Land and water strategies

Sub-output: 1.2.3 Land and water investments

Sub-output: 1.2.4 Terrestrial parks and reserves

Sub-output: 1.2.5 Tropical wetlands research

11 220

15 524

17 749

50 029

632

11 647

15 313

20 755

50 962

466

Total (Output 1.2: Conservation of the land and inland waters) 95 154 99 143

Administered items

Australian Biological Resources Study Participatory Grants

Maintaining Australia’s Biodiversity Hotspots

Natural Heritage Trust (Landcare, Bushcare, and Rivercare Programmes)

Australian Government’s Community Water Grants Programme

Tasmanian Community Forest Agreement

Strengthening Tasmania —Tamar River Pylons

1 869

4 124

275 512

46 210

0

1 000

1 865

1 920

257 226

46 149

5 500

1 000

Total (Administered) 328 715 313 660

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Other annual reports providing information on this output

Annual report on the operation of the Environment Protection and Biodiversity

Conservation Act 1999 included in the second volume of this set of annual reports

Annual report of the Department of Agriculture, Fisheries and Forestry at

www.nrm.gov.au/publications/#books

Annual report of the Natural Heritage Trust at www.nht.gov.au/publications

Regional Programmes Report at www.nrm.gov.au/publications/regional-report

Annual report of the Director of National Parks at

www.deh.gov.au/parks/publications/index.html#director

Annual report of the Supervising Scientist at

www.deh.gov.au/about/publications/annual-report/index.html

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Page 87: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

OUTCOME 1—ENVIRONMENT COASTS AND OCEANS

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Coasts and oceans

The Department of the Environment and Heritage develops Australian

Government initiatives to protect and conserve Australia’s coasts and oceans and

to ensure their management is ecologically sustainable.

Main responsibilities for this output

• Coastal zone management framework

• Coastal water quality and wetlands conservation

Land, Water and

Coasts Division

• Whale protection in the Australian

Whale Sanctuary1

Approvals and

Wildlife Division

• Coastcare

Natural Resource

Management

Programmes Division

• Marine bioregional plans• Marine protected areas• Marine and migratory species protection,

including whales • Fisheries assessment• Marine pests management• International marine conservation • Great Barrier Reef structural adjustment package• Marine science

Marine Division

Objectives

Coastal strategies

• Support a national approach to integrated coastal management

• Protect and improve coastal water quality, including the water quality of the

Great Barrier Reef

• Protect the wetlands that fi lter sediment and nutrients from water entering the

Great Barrier Reef

1 Resources for this activity are reported in the table on page 80 under sub-output 1.2.1 wildlife protection.

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Coastal investments

• Deliver coastal conservation investments to communities

Marine conservation

• Increase understanding and conservation of marine biodiversity

• Develop regional marine plans

• Identify new marine protected areas

• Recover threatened species and conserve marine wildlife and migratory species

• Manage existing marine protected areas

• Respond to threats to the marine environment from introduced marine pests

Results 2005–06

• The Minister for the Environment and Heritage launched a new

Implementation Plan for a National Cooperative Approach to Integrated

Coastal Zone Management in May 2006. The national plan aims to

protect the coastal environment and safeguard coastal industries and

communities.

• The regional marine planning process was given a statutory base

under section 176 of the Environment Protection and Biodiversity

Conservation Act 1999.

• In May 2006 the Minister for the Environment and Heritage announced

government agreement to 13 new marine protected areas for the South-

east Marine Region covering 226 000 square kilometres and creating

the fi rst integrated network of marine parks in Australian waters. When

these are declared, Australia will have about one-third of the world’s

marine protected areas, reinforcing its role as a world leader in marine

environment conservation.

• The department led efforts to promote whale and dolphin conservation,

which included developing a new database to record whale and dolphin

sightings and strandings and a new website called saveourwhales.gov.au.

• Recent research funded through the Natural Heritage Trust indicates

that populations of two out of the fi ve threatened species of large whales

found near Australia’s coastline are increasing.

• The fi rst wildlife conservation plan for migratory shorebirds was made

under the Environment Protection and Biodiversity Conservation Act

1999. The plan will help to ensure the survival of 36 species of migratory

shorebirds.

• The department developed recovery plans for all listed marine threatened

species.

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Coastal strategies

The department is working with all levels of government to address nationally

important coastal issues.

Integrated coastal zone management

The Framework for a National Cooperative Approach to Integrated Coastal

Zone Management is a national agreement between federal, state and territory

governments on how to deal with coastal problems in an integrated way. This

10-year national framework aims to protect the coastal environment and safeguard

coastal industries and communities.

In May 2006 all jurisdictions agreed to the Implementation Plan for a National

Cooperative Approach to Integrated Coastal Zone Management. The Minister

for the Environment and Heritage launched the plan on 23 May 2006 as part

of the national Coast to Coast 2006 conference. To access the framework and

implementation plan online, go to www.deh.gov.au/coasts/publications/framework/

index.html.

Population and planning

Development pressure is a major issue confronting sustainable management of

the coastal zone. Intensifi ed use of and demand for coastal resources can lead to

the loss of coastal habitats, which in turn can lead to declining water quality, loss of

biodiversity and less viable coastal industries.

The department is working with other governments to gather information

about demographic trends along the coast to help manage the environmental

implications of rapid population growth. In April 2006 the department sponsored

the fi rst National Sea Change Conference to support the work of local government

in managing population growth and tourism on the coast.

Climate change

The Climate Change Risk and Vulnerability Report by the Australian Greenhouse

Offi ce predicts that increasing temperature and rising sea levels are two of the biggest

threats to Australia’s coastal zone. These predictions may have serious consequences

for the Great Barrier Reef and other coastal areas within the next 50 years.

The department is working with all jurisdictions to develop a national assessment of

the vulnerability of Australia’s coast to the impacts of climate change (see page 30).

The report can be accessed at www.greenhouse.gov.au.

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Acid sulfate soils

Acid sulfate soils occur naturally in both coastal and inland Australia. When

left undisturbed, these soils are harmless. But when excavated or drained for

development, the sulfi des in the soil react with oxygen in the air, and form sulfuric

acid. This acid can kill plants and animals. It damages buildings and infrastructure

and can contaminate drinking water and food such as oysters. It is a major

environmental issue for land and water degradation.

This year the department worked with some of Australia’s top soil scientists to

produce the National Atlas of Acid Sulfate Soils. The atlas contains a map and

web-based database of the distribution of acid sulfate soils in Australia. It is an

important tool for resource managers to show where to avoid development, and

where the soil will need special treatment to prevent damage to the environment.

The Minister for the Environment and Heritage launched the atlas on 21 April 2006.

To look at the mapping and web-based tools go to www.asris.csiro.au.

Coastal water quality and wetlands protection

The Framework for Marine and Estuarine Water Quality Protection aims to protect

marine and estuarine water from the effects of pollution from the land. The two

main sources of this pollution are agriculture and urban development, which result

in nutrients and sediment being washed into the sea.

The framework addresses the sources of coastal pollution through three linked

programmes:

• Coastal Catchments Initiative

• Reef Water Quality Protection Plan

• Queensland Wetlands Programme.

The department manages these programmes, which fund state agencies, regional

bodies and local authorities to help them tackle water quality issues including

through the preparation of water quality improvement plans.

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Coastal Catchments Initiative

The Coastal Catchments Initiative aims to protect and improve water quality

in coastal hotspots where water quality is threatened by land-based pollution,

including urban and agricultural sources (see map above).

The Australian Government provided $6.211 million from the Natural Heritage

Trust to fund the Coastal Catchments Initiative during 2005–2006. This year the

department used part of this funding to initiate water quality improvement plans

and related interim projects in four hotspots.

The current status of water quality improvement plans and the amount spent on

plans and interim projects in 2005–06 are shown in the table on page 89.

A priority for the Australian Government is to protect the Great Barrier Reef and

Queensland’s coastal wetlands from pollution in runoff water entering the Great

Barrier Reef lagoon. This year work started on four water quality improvement

plans for the catchments of the Great Barrier Reef. These include plans for the

Tully, Burdekin and Burnett catchments and the catchments in the Mackay–

Whitsunday region. These plans will also contribute to the Reef Water Quality

Protection Plan.

Coastal Catchments Initiative—hotspots

1

2

34

5

6

7

8

9

13

10

15

11

12

14

1. Swan–Canning Estuary2. Peel Inlet and Harvey Estuary3. Vasse–Wonnerup and Geographe Bay4. Port Waterways (Barker Inlet and Port River)5. Port Phillip Bay and Western Port6. Derwent Estuary7. Myall and Wallis Lakes8. Moreton Bay9. Burnett River10. Burdekin11. Mackay-Whitsunday Catchments12. Townsville13. Tully River14. Mossman–Daintree Catchments15. Darwin Harbour

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The current status of water quality improvement plans

Hotspot Progress Expected completion

$ spent2005–06

Mossman and Daintree catchments, Great Barrier Reef

Public consultation completed. Final draft prepared

Mid 2006 0

Derwent Estuary, Tasmania Public consultation draft plan prepared

Mid-late 2006

27 273

Peel Inlet and Harvey Estuary, Western Australia

Public consultation draft in preparation

Late 2006 139 091

Adelaide’s Port Waterways (Barker Inlet and Port River)

Public consultation draft in preparation

Late 2006 80 109

Moreton Bay, Queensland Planning under way Mid 2007 415 000

Port Phillip Bay and Western Port, Victoria Planning under way Mid 2008 212 500

Myall and Wallis Lakes, New South Wales Planning under way Mid 2008 301 818

Swan–Canning Estuary, Western Australia Initiated Mid 2009 1 149 200

Vasse–Wonnerup Estuary/Geographe Bay, Western Australia

Initiated Mid 2009 100 000

Darwin Harbour Initiated Mid 2009 425 000

Great Barrier Reef Coastal Catchments (including Tully, Townsville, Burdekin, Burnett and Mackay–Whitsunday)

Planning under way Mid 2008 3 094 198

Reef Water Quality Protection Plan

The Reef Water Quality Protection Plan aims to halt and reverse the decline in

quality of water entering the Great Barrier Reef by 2013. The department shares

responsibility for implementing the plan with other government agencies and the

community.

The department partly funds activities under the plan from the Natural Heritage

Trust and from the Queensland Wetlands Programme (see next section).

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Major projects supporting the plan during 2005–06 included:

• $250 000 to develop simple techniques and guidelines to monitor water quality

and riparian buffers

• $40 000 to support Indigenous involvement in reef water quality, including

developing Indigenous cultural indicators of wetlands and water quality to

allow waterways management in north Queensland to benefi t from Indigenous

knowledge

• $10 000 to identify nutrient sensitive zones in the Great Barrier Reef catchment,

to better target actions to reduce the impact of nutrients on sensitive parts of

the reef

• initial investment of $145 000 to support water quality information

management modelling and monitoring strategies to provide the best available

information for decision-making.

Research emphasises the importance of addressing land-based sources of

sediment and nutrient run-off. This year the department funded a project to

develop tools that measure the effects of riparian buffers on water quality and

guidelines for riparian buffers. These tools are being adapted for landholders to

use as simple water-quality tests. The department also revised guidelines to assist

natural resource management bodies to include actions that contribute to meeting

the objectives of the reef plan in their regional plans. The guidelines provide

direction and include practical approaches to reducing the amount of sediment

and nutrients reaching the Great Barrier Reef lagoon.

Reef plan partners continue to work with regional natural resource management

bodies on research and extension programmes to improve the sustainability of

agricultural practices. A consultancy is currently looking at ways to better align

natural resource management activities with the reef plan objectives. A report is

due later in the year.

Queensland Wetlands Programme

The Queensland Wetlands Programme is a joint initiative of the Australian and

Queensland governments to support measures that will result in long-term

benefi ts to the sustainable use, management, conservation and protection of

Queensland wetlands. The programme is funded through two sub-programmes:

• Natural Heritage Trust Wetlands Programme

• Great Barrier Reef Coastal Wetlands Protection Programme.

This year the Natural Heritage Trust Wetlands Programme supported a number of

measures, including:

• a method for mapping and classifying wetlands and a pilot study on the use

of soils information as markers of wetland boundaries. The method has been

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used to map a signifi cant number of Queensland’s wetlands. The information is

also being used to develop a database and information system of Queensland’s

wetlands which will support their management

• customised land management packages for intensively grazed coastal

catchments to balance good pasture management with wetland management

• a scoping study to develop methods for wetlands monitoring, including

indicators for assessing the condition of different types of wetlands

• educational and guidance material for schools, tourist displays, landholders and

wetland managers.

The Great Barrier Reef Coastal Wetlands Protection Programme protects and

restores wetlands in the Great Barrier Reef catchment area. These wetlands protect

water quality in the Great Barrier Reef and have signifi cant value as wildlife habitat.

Coastal investments

The Australian Government invests in coastal conservation activities. The

investments are delivered through the Australian Government Natural Resource

Management Team.

Coastcare

Coastcare is that part of the Natural Heritage Trust invested in protecting coastal

catchments, ecosystems and the marine environment. Total expenditure under

Coastcare in 2005–06 was $55 million.

A national evaluation of Natural Heritage Trust regional investment to protect

coastal and marine environments was undertaken during the year to examine ways

to improve the delivery of the programme. The report will be completed in late 2006.

Results of investment are reported in the annual reports of the Natural Heritage

Trust and the annual regional programme reports available at

http://www.nrm.gov.au/publications/#annreps.

Sewerage schemes for Boat Harbour and Sisters Beaches

The department is supporting the Waratah–Wynyard Council in Tasmania to

develop sewerage schemes to improve the water quality of Boat Harbour Beach

and Sisters Beach waterways. Better urban planning and wastewater treatment

compliance measures, including construction of sewerage and wastewater

treatment infrastructure, are being done in both areas. Work funded under this

programme to April 2007 will achieve a major reduction in public health risk by

improving coastal water quality at Boat Harbour and Sisters Beaches.

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Marine conservation

Under the United Nations Convention on the Law of the Sea, Australia has rights

and responsibilities over 14 million square kilometres of ocean. This is more than

twice the area of the Australian continent. Within this area live thousands of marine

species, some of which are unique to Australia and all of which contribute to

making Australia a country rich in marine biodiversity.

The Australian Government uses the Environment Protection and Biodiversity

Conservation Act 1999 to protect and manage threatened, migratory and marine

species, such as whales, to assess fi sheries, to establish marine protected areas and

to develop bioregional plans. Threatened species are listed under the Act.

The department also works with other countries, using international treaties,

agreements and conventions, to protect and conserve the marine environment.

Regional marine planning

During 2005–06 the department fi nalised a review of its approach to regional

marine planning. Under the new approach, the government will establish

regional marine plans as bioregional plans under section 176 of the Environment

Protection and Biodiversity Conservation Act 1999. The plans will focus on

meeting the Australian Government’s environmental protection and biodiversity

conservation responsibilities in Commonwealth waters, which are waters generally

between three and 200 nautical miles from the coast. This review process

culminated in the marine bioregional planning process being allocated

$37.75 million over four years in the 2006–07 Budget.

Each plan will describe the region’s key habitats, species, natural processes, human

uses and benefi ts, and threats to the long-term ecological sustainability of the

region. The plans will give details about the various statutory obligations under

the Act that apply in any region, and will describe the conservation measures in

place, such as those relating to recovery planning for threatened species. They

will provide a knowledge base to inform future decision-making in the marine

environment and identify key strategic actions.

The plans will include regional networks of marine protected areas as part of the

National Representative System of Marine Protected Areas in Commonwealth

waters (see below).

South-west Marine Bioregional Plan

The South-west Marine Bioregional Plan will cover waters adjacent to South

Australia and Western Australia from Kangaroo Island to the mid-west coast of

Western Australia.

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In 2005–06 the department invested $170 000 in collating information on the

ecology of the region and how people are using its resources. The information is

being used to develop a profi le of the region describing its conservation, social and

economic values. The profi le is the fi rst step in the marine bioregional planning

process and will help to identify conservation priorities for the region.

In 2005–06 the department invested $230 000 in projects to inform the planning

process, including maps locating human uses, management measures and

environmental features in the region, and guidance for identifying signifi cant

ecosystem features and understanding human impacts on the environment.

Northern Marine Bioregional Plan

Marine planning has been under way for the waters between the Goulburn Islands

and the Torres Strait since 2002, during which time the department has gathered

a large body of information on the important ocean ecosystems of northern

Australia.

During 2005–06 the department focused primarily on aligning the planning in

the north to the new approach to regional marine planning. The fi rst planning

product, the Northern Marine Region Regional Profi le, is well advanced.

In June 2006, the Minister for the Environment and Heritage extended the western

boundary of the northern planning area to the border of Western Australia and

the Northern Territory. This will improve planning arrangements by ensuring that

Northern Territory stakeholders are involved in only one marine planning process

and will also facilitate closer alignment with the Northern Territory’s marine

planning.

Marine bioregional plans are also being developed for the Northwest and East

Marine regions.

Torres Strait

The department helped to develop the Land and Sea Management Strategy for

Torres Strait, which was published in November 2005. This strategy is a key part of

the regional planning process being funded through the Natural Heritage Trust.

The strategy identifi es important land and sea assets, issues, information, and

potential mechanisms for supporting Torres Strait communities to manage their

natural resources in a sustainable way. Marine issues addressed in the strategy

include shipping, water quality, ecosystem health and the conservation of marine

species and habitats.

The department provided $200 000 towards the fi nal year of the Torres Strait

Co-operative Research Centre (CRC). The department had membership on

the Torres Strait CRC Board and a direct interest in its research programme

including tasks associated with turtle and dugong population dynamics and catch

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monitoring, the mapping of the Torres Strait seabed biota, seagrass and seabed

dynamics and sustainable fi sheries management.

Marine protected areas

The Department of the Environment and Heritage, on behalf of the Director

of National Parks, manages an estate of marine protected areas that are

Commonwealth reserves under the Environment Protection and Biodiversity

Conservation Act 1999.

During 2005–06 $3.421 million from the national component of the Natural

Heritage Trust contributed to the development of new marine protected areas and

the management of the existing marine protected area network.

Some management functions for existing marine protected areas were delivered

by state agencies under service level agreements with the department. The

management budget covered key functions such as research and monitoring, and

compliance and enforcement.

Details are set out in the annual report of the Director of National Parks at

www.deh.gov.au/about/annual-report.

New marine protected areas

In May 2006 the Minister for the Environment and Heritage announced Australian

Government agreement to a substantial addition to the national network of marine

protected areas in Commonwealth waters. Thirteen new marine protected areas

in the South-east Marine Region were identifi ed, covering a total area of 226 000

square kilometres of marine environment off the coast of Tasmania, Victoria,

eastern South Australia and far south New South Wales. This will be followed

by the progressive development of other marine protected areas in Australia’s

remaining four marine regions.

The extended network covers an area two-thirds the size of the Great Barrier Reef

Marine Park. The network will be the fi rst temperate water marine protected area

network in the world. It includes signifi cant examples of key underwater features

such as canyon systems and seamounts, which are biodiversity hotspots.

The new network of marine protected areas was developed in conjunction with

extensive fi sheries management reforms being implemented by the Australian

Fisheries Management Authority as part of the Australian Government’s

$220 million Securing Our Fishing Future package (see also Great Barrier Reef

Structural Adjustment Package, page 100).

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Migratory and threatened marine species protection

The department is working to prevent threatened marine species from becoming

extinct and to recover their populations. As part of this work the department

develops recovery plans setting out the actions needed to maximise the chances of

long-term survival of threatened species in the wild.

The main avenue for increasing the protection and conservation of migratory

species is the Convention on the Conservation of Migratory Species of Wild

Animals (also known as CMS or the Bonn Convention). The department has

led global and regional efforts to protect migratory marine species through the

development and implementation of regional arrangements such as the Indian

Ocean–South-East Asia Marine Turtle Memorandum of Understanding.

Recovery plans for listed threatened marine species

Recovery plans must come into force within the time limits set out in the

Environment Protection and Biodiversity Conservation Act 1999. Recovery plans

are now in place for:

• great white shark, grey nurse shark, whale shark

• subantarctic and southern elephant seals

• marine turtles

• 10 seabird species

• four handfi sh species.

A recovery plan for the Australian sea lion is under development.

Candidate marine protected areas

12

3

11

104

5

6 7

8

9

1213

1. Murray (25 808 km2)2. Nelson (6 035 km2)3. Zeehan (19 902 km2)4. Franklin (671 km2)5. Boags (537 km2)6. Tasman Fracture (42 494 km2)7. Huon (9 576 km2)8. South Tasman Rise (27 683 km2)9. Freycinet (57 603 km2)10. Flinders (27 197 km2)11. East Gippsland (4 142 km2)12. Bass Basin (2 931 km2)13. Apollo (1 189 km2)

TASMANIA

VICTORIA

NEW SOUTH WALESSOUTH

AUSTRALIA

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Whale protection

The Australian Government has made whale and dolphin conservation and

protection a priority. The Environment Protection and Biodiversity Conservation

Act 1999 established the Australian Whale Sanctuary2 in Commonwealth waters.

The Act also regulates how people should behave around whales and dolphins.

Recent data from research funded through the Natural Heritage Trust indicates

that populations of two out of the fi ve threatened species of large whales found

near Australia’s coastline are increasing. While still much lower than pre-whaling

numbers, the Australian populations of southern right whales and humpback

whales continue to increase. Currently there are around 1 750 southern right

whales and 30 000 humpback whales. The rate of increase for southern right

whales is more than seven per cent per year and humpbacks, which breed at

a quicker rate, are increasing at around 10–11 per cent per year. There are no

current estimates for the abundance of the other three threatened species of large

whales, the blue, fi n and sei whales.

In 2005–06 the department developed a database to record whale and dolphin

sightings and strandings. An extensive consultation process led to all states and

territories and the Australian Government adopting the revised National Whale

Watching Guidelines. The fourth National Large Whale Disentanglement Workshop

was held to train managers on how to disentangle whales safely from fi shing gear

and marine debris. This year also saw implementation of a new satellite telemetry

buoy that can be deployed to track an entangled whale when sea conditions

prevent immediate disentanglement.

The department released a review of the conservation status of Australia’s

smaller whales and dolphins. The review describes the current status of the

40 Australian cetacean species not listed as threatened, and the conservation

initiatives pertaining to them. The report was prepared in response to a request

by the Threatened Species Scientifi c Committee for a progress report to assist

with the committee’s review of the eligibility of these smaller cetaceans for listing

as threatened species under the Environment Protection and Biodiversity

Conservation Act 1999.

Project work for whale and dolphin research and conservation activities is partly

funded through the national component of the Natural Heritage Trust. During

2005–06 the department invested approximately $400 000 to improve knowledge of

distribution, abundance and habitat requirements of whales and dolphins.

More information on whale protection can be found in the chapter on Antarctica.

2 The Australian Whale Sanctuary includes all Commonwealth waters generally from the three nautical mile state water limit

out to about 200 nautical miles.

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The department developed fact sheets, posters, cards, wrist bands and a new

website (saveourwhales.gov.au) to promote whale and dolphin conservation.

Migratory shorebird protection

In February 2006 the Australian Government provided $980 000 over two years

from the Natural Heritage Trust to ensure greater protection and conservation

of migratory birds. Part of this funding will be used to implement the wildlife

conservation plan for migratory shorebirds. This is the fi rst wildlife conservation

plan to be made under the Environment Protection and Biodiversity

Conservation Act 1999.

The conservation plan sets out research and management actions to help ensure

the survival of 36 species of migratory shorebirds. The plan complements

existing domestic protection measures for migratory shorebirds by strengthening

international conservation efforts. The department established a working group

of experts and government representatives to advise on implementation priorities

and evaluate the performance of the plan.

Sustainable fi sheries assessments

The department is responsible for assessing the environmental performance of

fi sheries under the Environment Protection and Biodiversity Conservation Act

1999. All fi sheries whose products are exported, and all Australian Government

managed fi sheries, must be assessed.

The Guidelines for the Ecologically Sustainable Management of Fisheries outline

how the department assesses each fi shery. Following the department’s assessment

the Minister for the Environment and Heritage may approve the continued

operation of the fi shery, including export.

In 2005–06 the department completed assessments for a total of 25 fi sheries,

including seven Commonwealth-managed fi sheries and 18 state-managed fi sheries

in Tasmania, Victoria, Queensland, Western Australian and South Australia. This

brings the number of fi sheries assessed since 2000 to 113. All fi sheries assessed

in 2005–06 received export approval. Another eight fi sheries were allowed to

continue to export products in the short term while further improvements are

made to their management arrangements. The department expects to complete

assessments of an additional fi ve fi sheries later in 2006.

Since 2000, when the Environment Protection and Biodiversity Conservation Act

1999 came into force, the minister has declared 121 fi sheries (113 full-term and

eight short-term decisions) as either exempt from the export provisions of the Act

for fi ve years, or as approved wildlife trade operations for periods of up to three

years. After this time has elapsed the department will reassess the fi sheries.

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Since 2000 the Australian Government has used the assessment process to

drive improvements in fi sheries management by identifying what additional

environmental protection measures need to be put in place. As a result, fi shery

management agencies have agreed on a range of measures to improve their

environmental performance and sustainability. Examples of these improvements

include:

• better data collection and validation across fi sheries

• mitigation measures to reduce impacts on protected species.

More information is available at www.deh.gov.au/coasts/fi sheries/index.html.

Marine pest management framework

The Australian Government and state and territory governments continued the

work of recent years to establish a permanent National System for the Prevention

and Management of Introduced Marine Pest Incursions. The national system is a

way for government agencies to coordinate their efforts to control or eradicate

new outbreaks of marine pests, including by managing ballast water and biofouling

(marine pests encrusted on vessel hulls and other gear).

The Australian Government committed $6 million over four years (2004–2008)

from the national component of the Natural Heritage Trust for research and

development and other activities necessary to implement the national system.

Project expenditure during 2005–06 was $370 000. Results in 2005–06 from

projects funded by the department include:

Fisheries assessed (2000–present)

0

20

40

60

80

100

120

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Years

Cum

ulat

ive

tota

l num

ber

of

fishe

ries

ass

esse

d

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• completion of a scientifi c analysis by CSIRO and modelling of incursions of the

northern Pacifi c seastar as part of implementing a national control plan for the

species

• completion of genetic probes to enable the effi cient detection and

identifi cation of toxic dinofl agellates (single celled microalgae) and

development of probes for other key pest species

• gathering information on the long-term performance of paints that reduce

biofouling on ships and boats, through paint patch trials on Australian

commercial ships

• establishing an international consortium of education and research institutions

to improve marine biosecurity, through a grant to the Australian Maritime

College.

International marine conservation

The seas and seabed beyond the national jurisdiction of individual countries—the

ocean ‘commons’—contain signifi cant biodiversity, much of it new to science,

diverse, unique and fragile. The department works with other countries to

promote marine biodiversity conservation, including on the high seas.

International activities for listed threatened and migratory species

The department continued to build regional and international conservation

partnerships to ensure that Australia’s domestic protection measures for listed

threatened and migratory species are complemented internationally.

The department is Australia’s focal point for the Convention on the Conservation

of Migratory Species of Wild Animals, an intergovernmental convention of

92 countries to which Australia is a signatory. At the 8th conference of the parties

to the convention held in Kenya in November 2005, the department helped

to advance Australia’s marine species conservation agenda by successfully

strengthening the convention’s role in conserving migratory marine species in

Australia’s region.

Resolutions adopted at the conference included agreement to develop a global

approach to conserving migratory sharks, to develop a regional approach to

conserving marine turtles in the Pacifi c, and to list the basking shark under the

convention. These new resolutions will help to conserve sharks and turtles

throughout their ranges. A new regional conservation agreement for marine turtles

may be in place by 2008, while a new global conservation agreement for migratory

sharks is expected to be in place by 2009.

The department supports the Australian Government’s obligations under the

Japan–Australia Migratory Birds Agreement (JAMBA) and the China–Australia

Migratory Birds Agreement (CAMBA).

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The department worked with the Ministry of the Environment in Japan and

Wetlands International to co-host two successful meetings in 2005–06 of an

international working group tasked to develop the World Summit on Sustainable

Development Type II Partnership. The partnership will be launched in late 2006.

It aims to promote cooperation among the countries across the East Asian–

Australasian Flyway, and to support conservation of migratory waterbirds and their

habitats in the fl yway.

The department also made progress on the migratory bird agreement with the

Republic of Korea. The department expects a formal signing ceremony will be held

in late 2006.

United Nations

In February 2006 Australia and Mexico co-chaired the inaugural meeting of a

United Nations working group to study the conservation and sustainable use of

marine biological diversity beyond areas of national jurisdiction. Australia used this

working group to continue its strong advocacy for a responsible global approach

to the conservation of high seas biodiversity.

Regional collaboration

Australia is helping to improve the management of the oceans of the region

through the Asia–Pacifi c Economic Cooperation (APEC) structure. Australia

promoted and supported activities to address marine debris, introduced marine

pests, marine turtle conservation and illegal fi shing through the Bali Plan of

Action, which was endorsed at the 2nd APEC Oceans-Related Ministerial Meeting in

September 2005.

Australia is also assisting regional marine conservation and management through

the Arafura and Timor Seas Expert Forum. The forum is one of Australia’s major

partnership initiatives coming out of the 2002 Johannesburg World Summit on

Sustainable Development. It facilitates cooperative research and better information

sharing between governments, scientifi c bodies and non-government interests in

Australia, Indonesia and Timor-Leste to improve the sustainable management of

living marine resources in the Arafura and Timor Seas region.

Great Barrier Reef Marine Park structural adjustment package

On 1 July 2004, rezoning in the Great Barrier Reef Marine Park increased the area

of ‘no take’ zones in the park from 4.5 per cent to 33.3 per cent. The government

has since been providing assistance to businesses and individuals affected by the

rezoning through a structural adjustment package. The package has an approved

budget of $86.741 million, but the fi nal amount of assistance provided is yet to be

determined.

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As of 30 June 2006, 1 456 grants totalling $69.30 million had been approved

under the various elements of the package. The largest elements of the package

comprise 122 grants for licence buy-outs totalling nearly $33 million, 116 grants for

Full Business Restructuring Assistance totalling $22.98 million and 492 grants for

Simplifi ed Business Restructuring Assistance amounting to $10.54 million.

On 13 December 2005 the Minister for the Environment and Heritage extended

the deadline for applications under the structural adjustment package from

31 December 2005 to 30 April 2006. On 4 April the minister extended the

deadline to 31 May 2006 for applicants impacted by Cyclone Larry, and eased the

information requirements for applicants who lost information due to the cyclone.

On 22 February 2006 the minister announced that the government had removed

the $500 000 cap on Full Business Restructuring Assistance grants. On 26 May 2006

the minister announced a 20 per cent increase in payments for approved

applications for Full Business Restructuring Assistance. These grants will cover

the approved full cost of restructuring a business to mitigate the impact of the

rezoning of the marine park.

Marine science

Marine surveys

In 2005–06 the department, in partnership with Geoscience Australia and the

CSIRO, provided $750 000 for sea time on the RV Southern Surveyor spread across

four voyages. Two of the voyages in 2005 focused on mapping benthic ecosystems

(that is, ecosystems at the bottom of the sea) on the deep continental shelf and

slope in Australia’s south-west to understand evolution and biogeography. The

voyages in this region focused on the Perth Canyon, a unique feature 22 kilometres

seaward of Rottnest Island off Perth. The Perth Canyon is as wide and deep as the

United States’ Grand Canyon, and during summer, blue whales feed on swarming

krill in upwelling zones around its rim. The remarkable marine species recovered

and sea fl oor images captured during these voyages will inform marine planning in

south-west waters. (See map on page 102).

The third voyage investigated benthic habitats and sedimentary processes, and the

petroleum potential of the East Mentelle Basin. The fourth voyage off the North

West Shelf looked at hydrocarbon seeps and the bathymetry and sedimentology of

this region.

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Bathymetry map of Australia’s undersea Perth Canyon

Source: CSIRO Marine and Atmospheric Research/Geoscience Australia

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Case study: Rottnest Island marine survey

The department, in collaboration with CSIRO Marine and Atmospheric

Research, conducted a survey of the deep waters off Western Australia’s

Rottnest Island to gather information to inform the Australian Government’s

programme of marine planning around Australia’s south-west waters.

The survey was conducted from the Department of Fisheries vessel RV

Naturaliste, which spent a week at sea undertaking deep water trawls on

the continental shelf north and south of Rottnest Island.

Four species taken on the

survey were previously

unknown to science and

10 more, which could not

be positively identifi ed,

may also be new.

Fish collected during the

survey were freighted to

Hobart for identifi cation

and their tissues DNA

bar-coded as part of

the CSIRO Wealth from

Oceans Flagship project.

Information learned

during the project will

be invaluable as the

Australian Government

starts work on developing

a marine bioregional

plan for the waters of

Australia’s south-west.

A new species of stingaree.

Photo: Peter Last, CSIRO Marine and Atmospheric Research

A new species of gurnard.

Photo: Peter Last, CSIRO Marine and Atmospheric Research

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Ocean Biogeographic Information System

The Ocean Biogeographic Information System (OBIS) is an international

federation of organisations and people working to make data about marine life,

from all over the world, freely available over the internet.

In December 2005 the department launched the Australian node of OBIS

(www.obis.org.au). The Australian node, located at the CSIRO Marine and

Atmospheric Research laboratories in Hobart, is a partnership between the

department and CSIRO. The node hosts a database that depicts the distribution

and abundance of bird and marine species in the Australian region. The data will

provide a better understanding of what lies above and beneath the ocean’s surface,

including what species are common or rare, where alien invasive species originate,

and where biodiversity hotspots are located. The system is accessible to the public,

and will encourage the sharing of marine data by academics, museums, universities

and industry research bodies.

The Australian node is one of a number to be established around the world, all of

which feed information to the central portal at Rutgers University in New Jersey,

United States. The Sloan Foundation, a philanthropic fund based in the United

States, provided $200 000 to help establish the Australian node.

Oceans Portal

This year the department, working with Australian Government marine science

agencies, completed the Oceans Portal, an online marine database. The Oceans

Portal allows users to pull together information from a number of participating

Australian Government science and information agencies and museums, and to

create a product, such as a map, drawing on this information. The Oceans Portal

currently holds data from the department as well as the Australian Institute of

Marine Science, Geoscience Australia, Bureau of Meteorology, the Royal Australian

Navy and CSIRO. This is the fi rst time information from such a wide range of

agencies can be accessed at one location. The Oceans Portal will be available

through the department’s website at www.deh.gov.au.

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Results for performance indicators

Performance indicator 2005–06 result

Estuaries and coastal waters

Number of water quality improvement plans and associated interim projects completed or under development

4 (Great Barrier Reef Coastal Catchments Initiative)

Number of Australian Government obligations under the Great Barrier Reef Water Quality Protection Plan either completed or in progress

3 (Great Barrier Reef Coastal Catchments Initiative)

10 actions for which the department has direct responsibility are either completed or in progress

Recovery of threatened marine wildlife

Number of recovery plans (i) being prepared and (ii) in operation

(i) 1 recovery plan being prepared

(ii) 7 plans in operation

Percentage of listed threatened terrestrial species and ecological communities with recovery plans in operation

96%

Key threats to marine biodiversity

Number of threat abatement plans (i) being prepared or revised, and (ii) in operation

(i) 2 plans being prepared or revised

(ii) 1 plan in operation (protecting seabirds from longline fi shing operations)

Of those listed key threatening processes in the oceans that require a threat abatement plan, the percentage that have threat abatement plans in operation

50% have threat abatement plans in operation (1 of 2)

Fisheries

Percentage of environmental recommendations implemented under the strategic assessments of fi sheries management

25 fi sheries assessed in 2005–06

113 fi sheries assessed in total, with a further 8 fi sheries having short-term decisions made on them

100% of fi sheries needing to be assessed and granted export approval have completed the fi shery assessment process. However, approximately 5% of these are short-term decisions which will require further work during 2006

Integrated management of the oceans

Percentage of environmental actions implemented under regional marine plans

30% completed32% under way

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Performance indicator 2005–06 result

Marine protected areas

Area of Commonwealth reserves and conservation zones managed by the Department of the Environment and Heritage for the Director of National Parks

27 245 378 hectares (includes Commonwealth marine reserves)

Note: Area protected in 2006 has been amended to refl ect latest data available from the Collaborative Australian Protected Area Database

Percentage of protected areas managed by the Department of the Environment and Heritage for the Director of National Parks with management plans in operation

100%

Management plans are available at www.deh.gov.au/coasts/mpa/publications/index.html#plans

Great Barrier Reef—Representative Areas Programme Structural Adjustment Package (administered item)

The Package measures are effective in assisting fi shers, fi shery related businesses and communities impacted by the rezoning of the Great Barrier Reef Marine Park

The package will be reviewed in 2006–07

Over 1 000 businesses have received or are being assessed for assistance under the package

Applications are processed and payments made to eligible recipients according to specifi ed timeframes

Applications have taken longer to assess than anticipated due to their complexity. The rush of applications just prior to the closing date has required consideration of other assessment approaches in order to complete the assessments within a reasonable timeframe

Full Business Restructuring Assistance (FBRA) applicants are provided with information to assist them in developing their applications. FBRA enables restructuring of business operations to assist them to manage the impacts of the rezoning

A ‘how-to’ guide was prepared to assist business with applying for a grant

Fishers were given a datasheet that identifi es how much of their fi shing was within closed areas and how the licence buy out may assist them which, when used with the ‘how to’ guide and their fi nancial statements, will enable them to determine what impact the rezoning has had on their business

Many land based sectors have been assisted with reports on the impact of the rezoning on their business which, when combined with their fi nancial statements, can be used to identify the impact of the rezoning on their business

Full Business Restructuring Assistance grants to address the impact of the rezoning on a business

Number of payments made under each component of the package

As of 30 June 2006:

599 Business Advice Assistance grants

122 Business Exit (licence buy out) grants

117 Employee Assistance grants

10 Business Exit (fi shery related business) Assistance grants

116 Full Business Restructuring Assistance grants

492 Simplifi ed Business Restructuring Assistance grants

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Performance indicator 2005–06 result

Coastcare (administered item–Natural Heritage Trust)

Percentage of natural resource management regions that have an accredited natural resource management plan

94% (34 of 36) of the coastal natural resource management regions have an accredited regional plan. Another region has an approved regional strategic directions plan

Percentage of natural resource management regions that have an approved investment strategy

97% (35 of 36) of the coastal natural resource management regions have an approved investment strategy

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded See Natural Heritage Trust annual report and annual regional programme reports

Development of Sewerage Schemes for Boat Harbour and Sisters Beach, Tasmania

Extent to which the project will achieve government objectives

All government project objectives have been met through the construction of a wastewater treatment plant at Shelter Point and new sewerage infrastructure at Boat Harbour Beach to improve the water quality of Boat Harbour Beach. Sewerage infrastructure and a wastewater treatment plant have also been completed for the Sisters Beach and Lake Llewellyn communities which will improve coastal water quality

Number of milestones achieved compared with those specifi ed in the contract

Boat Harbour Beach—all 4 contract milestones completed

Sisters Beach—all contract milestones completed

Contract signed with proponent to undertake stormwater management improvement works

Sub-output 1.3.1—Coastal strategies

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(a)

100%

Sub-output 1.3.2—Coastal investments

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(a)

100%

Sub-output 1.3.3—Marine conservation

Percentage of statutory timeframes triggered that are met (Target: >90%)(b)

A report on compliance with statutory timeframes triggered under the Environment Protection and Biodiversity Conservation Act 1999 is provided in Appendix 4 of the EPBC Act annual report in Volume 2 of this annual report

(a) Applies to provision of grants programmes funded entirely from the Department of the Environment and Heritage appropriations for the output (i.e. not those marked administered items).

(b) Applies to areas that administer legislation, for example reporting timeframes triggered under the EnvironmentProtection and Biodiversity Conservation Act 1999.

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Resources

Departmental outputs Budget prices $’000

Actual expenses $’000

Sub-output: 1.3.1 Coastal strategies

Sub-output: 1.3.2 Coastal investments

Sub-output: 1.3.3 Marine conservation

5 289

1 898

22 038

5 561

1 873

23 078

Total (Output 1.3: Conservation of the coasts and oceans) 29 225 30 512

Administered items

Great Barrier Reef – Representative Areas Programme Structural Adjustment Package

Natural Heritage Trust (Coastcare Programme)

Development of Sewerage Schemes for Boat Harbour and Sisters Beach, Tasmania

Structural Adjustment Package – Enhancement

Structural Adjustment Package – Business Restructuring Assistance

157

36 879

108

4 000

28 460

157

54 944

108

4 000

28 460

Total (Administered) 69 604 87 669

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Other annual reports providing information on this output

Annual report on the operation of the Environment Protection and Biodiversity

Conservation Act 1999 included in the second volume of this set of annual reports

Regional Programmes Report at www.nrm.gov.au/publications/regional-report

Annual report of the Department of Agriculture, Fisheries and Forestry at

www.nrm.gov.au/publications/#books

Annual report of the Director of National Parks at

www.deh.gov.au/parks/publications/index.html#director

Annual report of the Natural Heritage Trust at www.nht.gov.au/publications

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Heritage

The Department of the Environment and Heritage identifi es, protects and

conserves Australia’s natural and cultural heritage, including Indigenous and

historic heritage.

Main responsibilities for this output

• Identify and assess places for possible inclusion

on the World Heritage List, National Heritage List,

and Commonwealth Heritage List

• Advise on conservation and management of

heritage places with Indigenous, natural or

historic values under the Environment Protection

and Biodiversity Conservation Act 1999

• Administer the Commonwealth’s obligations

under the Convention for the Protection of

the World Cultural and Natural Heritage 1972,

Aboriginal and Torres Strait Islander Heritage

Protection Act 1984, Protection of Moveable

Culture Heritage Act 1986, and Historic

Shipwrecks Act 1976

Heritage Division

Objectives

• Identify, protect, conserve and celebrate Australia’s natural, Indigenous and

historic heritage places that are of national and world signifi cance

• Identify, protect and conserve heritage places that are Commonwealth owned

or leased

• Contribute to protection for natural and cultural heritage in the South-East

Asia–Pacifi c region

• Increase knowledge and enjoyment of Australia’s maritime heritage while

protecting shipwrecks and associated relics

• Prevent Australia’s cultural heritage from being signifi cantly diminished due to

the export of heritage objects

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Results 2005–06

• The Minister for the Environment and Heritage agreed in December

2005 to new strategic directions for national heritage, with three key

areas of focus—amending the Environment Protection and Biodiversity

Conservation Act 1999 to focus more on outcomes and less on details

of process, increased emphasis on telling of stories about heritage,

and improving the sustainability of Australia’s national heritage places.

Amendments are scheduled for introduction into the parliament in late

2006.

• Heritage ministers, meeting at the Environment Protection and Heritage

Council in June 2006, agreed to a cooperative national heritage agenda.

A package of initiatives, developed over time, will include data gathering

and new internet-based heritage information to help ensure that

Australia’s national, state and local heritage systems are based on sound

data.

• This year, 21 places were added to the National Heritage List bringing the

number of places to 31 at 30 June 2006. Three places were added to the

Commonwealth Heritage List, which contained 339 places at

30 June 2006. The Australian Government nominated the Sydney Opera

House to be inscribed on the World Heritage List in January 2006.

• The Biodiversity Assessment Tool, based on the Australian Natural

Heritage Assessment Tool which the department uses when assessing

potential heritage places, received international recognition with offi cers

from the department being invited to demonstrate the system in Sweden

and Japan.

• As part of a maritime and coastal heritage theme chosen by the Minister

for the Environment and Heritage for 2006, the Australian Government

sponsored the 1606–2006 Duyfken voyage to commemorate the 400th

anniversary of the fi rst European contact with Australia. The Duyfken,

a replica of the fi rst European ship known to have visited Australia, will

stop at 25 ports around the country giving thousands of people the

opportunity to experience a working 16th century vessel.

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World, national and Commonwealth heritage

Australia’s world, national and Commonwealth heritage places may be of natural,

Indigenous or historic signifi cance or any combination of these types. Heritage

places are important to Australia’s sense of national identity and shared values.

Protecting them benefi ts future generations as well as the present community.

The Minister for the Environment and Heritage approved new strategic directions

for heritage which place a priority on building the reputation and management

of Australia’s national heritage through a combination of legislative amendment,

increased emphasis on telling heritage stories, and improving the sustainability

of national heritage places. The new strategic directions emphasise a broad

engagement of heritage in the life of the community.

The Australian Government’s main legislation for protecting heritage places is the

Environment Protection and Biodiversity Conservation Act 1999.

The Act protects the heritage values of places that are included in the following lists:

• World Heritage List: listed places are of global signifi cance recognised under

the Convention Concerning the Protection of the World Cultural and Natural

Heritage (usually referred to as the World Heritage Convention)

• National Heritage List: listed places are of outstanding heritage value to the nation

• Commonwealth Heritage List: listed places have signifi cant heritage value and

are owned or leased by the Australian Government.

The department manages the processes set up by the Act, provides heritage

listing advice to the government, and advises property managers on their heritage

management plans and strategies. The department supports the Australian

Heritage Council in its assessment, advice and public information and awareness

activities. These activities are largely funded through the Distinctively Australian

Measure ($52.6 million from 2003–2007) and the National Heritage Investments

Initiative ($10.5 million from 2005–2009).

World heritage listings

Only national governments can nominate a place for inclusion in the World

Heritage List. The World Heritage Committee then decides whether to inscribe the

nominated place on the list. Australia now has 16 world heritage areas.

In January 2006 the Australian Government, with the support of the New South

Wales Government, nominated the Sydney Opera House to be inscribed on the

World Heritage List. The nomination argued that the Sydney Opera House is a

masterpiece of human creative genius and therefore has outstanding universal value.

A nomination to inscribe Australian convict sites was discussed with state and

territory governments and key stakeholders. With the support of relevant states,

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the department aims to fi nalise the nomination in 2007. The nomination will

include the Port Arthur Historic Site and Fremantle Prison which are already in

the National Heritage List. Other sites in the proposed nomination are being

considered for national heritage listing.

National and Commonwealth heritage listings

The Minister for the Environment and Heritage decides whether to include places

in the national or Commonwealth heritage lists. In 2005–06 the minister received 60

public nominations for the National Heritage List, with 21 new places added to the list

(see map below). Three places were added to the Commonwealth Heritage List.

After the second full year of operation of the national and Commonwealth

heritage provisions of the Act, Australia had 31 national heritage places and 339

Commonwealth heritage places. All states and territories now have places in the

National Heritage List. Most of the places in the Commonwealth Heritage List have

been listed for historic heritage values.

Unless operating under the emergency provisions, before listing a place the

minister must fi rst consider an assessment of its heritage values by the Australian

Heritage Council. The council is an independent body appointed in February 2004

to provide the government with advice on a wide range of heritage matters.

Location of national heritage places listed in 2005–06

1. Glenrowan Heritage Precinct2. Sydney Opera House3. Fremantle Prison (former)4. First Government House Site5. Newman College6. Sidney Myer Music Bowl7. ICI Building (former) /Orica House8. Australian Academy of Science Building9. Recherche Bay (North East Peninsula) Area10. Richmond Bridge11. HMVS Cerberus12. Melbourne Cricket Ground13. South Australian Old and New Parliament Houses14. Tree of Knowledge and Curtilage15. Dirk Hartog Landing Site 1616—Cape Inscription Area16. Batavia Shipwreck Site and Survivor Camps Area 1629—Houtman Abrolhos17. Hermannburg Historic Precinct18. Australian War Memorial and Memorial Parade19. North Head Sydney20. Point Nepean Defence Sites and Quarantine Station Area21. Old Parliament House and Curtilage

1517

3

1

10

14

23

16

9

2, 4,19

5, 6, 7,11,12, 20

8,18, 21

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The council also maintains the Register of the National Estate, which the minister

must take into account when making decisions under the Environment Protection

and Biodiversity Conservation Act 1999.

A departmental review of the National Heritage List in August 2005 concluded that

public nominations alone will not bring forward all high profi le or iconic places for

assessment. The Australian Heritage Council subsequently initiated assessments

of places that were not nominated by the public. In 2005–06 the fi rst such

assessments were completed and the places listed by the minister. These were the

Melbourne Cricket Ground, the sites of the 1629 Batavia shipwreck and survivors’

camps, and the Australian War Memorial and Memorial Parade.

The department uses its Australian Natural Heritage Assessment Tool to help assess

the natural heritage values of potential heritage places. The department received

international funding from the Global Biodiversity Information Facility to develop

a simple version of the tool to run on the internet for public use. The new version,

called the Biodiversity Assessment Tool, received international recognition with

offi cers from the department being invited to demonstrate the tool to the Global

Biodiversity Information Facility Governing Board in Stockholm in October 2005

and in March 2006 to the National Institute of Genetics in Japan, where the system

has been installed to analyse Japanese biodiversity information.

The Biodiversity Analysis Tool is available via www.abif.org/tools.htm.

Emergency listings

The Minister for the Environment and Heritage can decide to emergency list a place

that may have national or Commonwealth heritage values that are under threat. A

decision to emergency list a place is not necessarily permanent as the Australian

Heritage Council must follow up any emergency listing with a detailed assessment.

During 2005–06 the minister received requests to emergency list eight places in the

National Heritage List. The minister rejected two of these because he was not satisfi ed

that national heritage values existed. Three were not listed because the minister was

not satisfi ed that there were threats to any national heritage values that the places

may have. The remainder are awaiting further information from applicants.

Details on the reasons for the minister’s decisions are available from the Australian

heritage database at www.deh.gov.au/cgi-bin/ahdb/search.pl and the heritage

notices website at www.deh.gov.au/cgi-bin/epbc/heritage_ap.pl.

National and Commonwealth heritage management

The Environment Protection and Biodiversity Conservation Act 1999 provides

for the preparation of a management plan for each national heritage place. For

national heritage places not wholly owned or controlled by the Commonwealth,

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the Commonwealth must use its best endeavours to ensure a plan is prepared

and implemented in cooperation with the relevant state or territory. For national

heritage places wholly within a Commonwealth area, the Act requires the

Minister for the Environment and Heritage to make a written management plan

for each such place as soon as practicable after listing or when the place comes

under Commonwealth control. These management plans must comply with

the Regulations under the Act, including consistency with the national heritage

management principles.

In 2005–06 three historic heritage places included in the National Heritage List

were wholly in Commonwealth ownership. Management plans for these places will

be prepared as soon as practicable.

This year the department funded a study into whether current management

plans for Australian world heritage places and national heritage places satisfy

the requirements of the Act. The study will identify which plans comply with the

requirements and which ones need amendment to make them comply with the

national heritage management principles. A revised management plan consistent

with the national heritage principles is currently being developed for the

Brewarrina Fishtraps.

The Act also requires each Commonwealth agency that owns or controls places

in the Commonwealth Heritage List to prepare a written heritage strategy for

managing those places to protect and conserve their Commonwealth heritage

values. Heritage strategies must be prepared within two years of the agency fi rst

owning a Commonwealth heritage place, or by 1 January 2006, whichever is later.

Six1 Commonwealth agencies completed their heritage strategy within the

statutory timeframe. The department expects a further 18 Commonwealth

agencies to complete their strategies during 2006–07. The department has

reminded other Commonwealth agencies of their obligations.

The minister found the six strategies were satisfactory. These agencies have started

to prepare management plans. The department received one draft management

plan for review in 2005–06.

Productivity Commission inquiry

During the year the department made three submissions to the Productivity

Commission inquiry into the policy framework and incentives for the conservation

of Australia’s historic built heritage. The Productivity Commission tabled its report

in parliament in July 2006. The government will develop a response to the report

in 2006–07.

1 Air Services Australia, Department of Defence, Department of the Environment and Heritage, Department of Transport and

Regional Services, Great Barrier Reef Marine Park Authority and the National Capital Authority.

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Cooperative National Heritage Agenda

In May 2002 the Environment Protection and Heritage Council agreed to a

proposal to develop an integrated national heritage policy agenda covering

natural, Indigenous and historic heritage. Work completed to date includes the

National Heritage Protocol, the Action Plan for Reconciliation, and several papers

on heritage incentives and sustainable heritage tourism. While some aspects of

the work have progressed, the overarching policy agenda remains incomplete.

Governments have agreed to step up efforts to complete the policy agenda.

In June 2006 the Environment Protection and Heritage Council agreed to the

Cooperative National Heritage Agenda which will consist initially of the following

elements:

• consistent heritage assessment criteria and thresholds

• national standards for data collection and reporting measures

• national standards and guidelines for conservation and management of heritage

• a comprehensive national heritage inventory and information portal

• policy innovation including guidance on heritage assistance programmes and

sustainable heritage tourism

• cooperation on heritage promotion and public engagement (e.g. national

themes)

• cooperation on research (e.g. community attitudes, economics and themes).

Indigenous heritage

The department works with other government agencies and the community to

protect the cultural heritage of Aboriginal peoples and Torres Strait Islanders. This

work includes providing advice on proposals referred under the Environment

Protection and Biodiversity Conservation Act 1999, supporting projects for the

identifi cation, conservation or promotion of Indigenous heritage, and providing

emergency protection to areas and objects of cultural and traditional signifi cance

in Australia.

Aboriginal and Torres Strait Islander Heritage Protection Act

Under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984

the Minister for the Environment and Heritage can protect places and objects that

have a traditional signifi cance for Indigenous peoples from threats of injury or

desecration. This is ‘last resort’ protection that may only be given when there is no

effective protection under state or territory laws.

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Since 1987 Aboriginal cultural heritage in Victoria has been protected under Part

IIA of the Act. These are special provisions that apply only to Victoria. They are

administered by the Victorian Minister for Aboriginal Affairs (with powers delegated

from the Australian Government Minister for the Environment and Heritage).

During the year the department worked with the Victorian Government on

legislative amendments to transfer direct responsibility for primary protection to

Victoria. At 30 June 2006 these amendments were being considered by parliament.

In 2005–06 the department advised the Minister for the Environment and Heritage

on two applications continuing from the previous year, and on six new matters.

The six new matters involved applications for emergency and longer-term

protection to places in the Perth metropolitan area. Four applications related to a

desalination plant at Cockburn Sound and two related to a school at Lake Monger.

The matters continuing from the previous year were for longer-term protection of

an area near Broome in Western Australia and for Wongi Waterholes near Hervey

Bay in Queensland. After considering the applications, the minister decided not to

make the emergency or longer-term declarations sought in the applications.

The department continued to monitor compliance with a 20-year declaration

under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 for

Junction Waterhole in Alice Springs. The declaration will expire in 2012.

Indigenous Heritage Programme

The department administers the Australian Government’s Indigenous Heritage

Programme (formerly the Preservation and Protection of Indigenous Heritage

Programme run by Aboriginal and Torres Strait Islander Services until 2004).

The Indigenous Heritage Programme supports the identifi cation, conservation,

and promotion (where appropriate) of the Indigenous heritage values of places

important to Aboriginal and Torres Strait Islander people.

The programme also assists in the identifi cation of places likely to have

outstanding Indigenous heritage value to Australia; that is, places of national

heritage signifi cance suitable for inclusion in the National Heritage List.

During the year the department received 143 applications seeking a total of

approximately $12 million in funding for the $3.5 million available in 2005–06. The

minister approved the funding of more than 60 projects across Australia, including

identifi cation of Indigenous heritage, conservation of Indigenous heritage sites,

small-scale Indigenous heritage related business activities, construction of places

for keeping Indigenous heritage items and sharing Australian Indigenous heritage.

Examples of funded projects in 2005–06 include $50 000 for a management plan

to conserve and rehabilitate the Brewarrina Fish Traps (New South Wales);

$90 363 to identify and record Indigenous heritage sites on Jawoyn lands,

including identifying tourism opportunities (Northern Territory); $100 000 for the

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assessment of cave and engraving sites in Tasmania; and $60 000 for the restoration

of the Karalundi Mission building for use as a museum (Western Australia).

Six Indigenous heritage projects are being supported under the Indigenous

Heritage Programme through shared responsibility agreements with Indigenous

communities. These are agreements for the provision of services to Indigenous

communities under the Australian Government’s new arrangements for

Indigenous affairs, and involve both government and community contributions to

achieve improved outcomes.

The projects are:

• restoration of the historic church at Raukkan community at Port McLeay in

South Australia

• development of heritage interpretive material at the Yumba site at Mitchell in

Queensland

• set-up of the Brewarrina Business Centre, New South Wales

• development of a tourism business around Gurindji Culture and the Wave Hill

Walk Off Historical Story, Northern Territory

• restoration and fencing of a signifi cant heritage site, archaeological survey of

the Combarngo site, interpretive material and partial salaries for a heritage

tourism offi cer, Roma, Queensland

• building community connections, capacity and governance structures to

establish a land trust and work towards economic independence through the

use of traditional land, Rockhampton, Queensland.

Restoration of the historic church at Raukkan (Port McLeay) in South Australia, which features on the Australian $50 note, is being funded by the Indigenous Heritage Programme through a Shared Responsibility Agreement with the Raukkan community. Photo: Brian Prince

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Asia–Pacifi c world heritage managers

The Asia–Pacifi c Focal Point for World Heritage Managers is a regional network

of world heritage managers established to share experience, knowledge and

resources between countries in the region (see www.heritage.gov.au/apfp).

Through this network the department supports activities for implementation of

the World Heritage Convention in the Asia–Pacifi c region.

During the year the department supported six activities and projects, including

funding for an Australian Research Council linkage grant to the University of

Sydney to map the Angkor Wat complex in Cambodia, which will help in the

development of a comprehensive management plan.

Regional Natural Heritage Programme

The government established the $10 million Regional Natural Heritage Programme

to conserve biodiversity hotspots in South-East Asia and the Pacifi c in February

2004. Under this programme the department helps countries in the Asia–Pacifi c

region manage sites with high biodiversity (biodiversity hotspots) and protect

habitats that are under threat. The programme is helping to conserve the habitat

of some of the world’s most threatened species, including the Sumatran tiger and

Vietnam’s black crested gibbon.

The four-year programme provides grants to non-government organisations

and other agencies. Fifteen projects approved in 2004–05 totalling $4.4 million

were implemented during 2005–06 and six new projects totalling $1 million

were approved and implemented. These projects include strengthening local

management of coral reefs in fi ve marine protected areas in eastern Indonesia;

conserving biodiversity in the Sierra Madre Mountain Range, Luzon Island in

the Philippines; conserving the golden headed langur (an endangered primate

species) on Cat Ba Island, Vietnam; conserving the Scott’s tree kangaroo in the

Torricelli Mountain Range in Sandaun Province, Papua New Guinea; conserving

marine biodiversity in Votua village, Fiji; and protecting coral reefs in the central

provinces of Vietnam.

Chinese world heritage

This year the department helped to develop heritage management principles

(the Illustrated China Principles), including a training manual, for application

to two world heritage sites at Mogao and Chengde in China. The department’s

partners in this project are the Chinese State Administration of Cultural Heritage

and the Getty Conservation Institute. The department presented the Illustrated

China Principles at a meeting of the International Council on Monuments and Sites

in China in October 2005.

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Historic shipwrecks

The department administers the Historic Shipwrecks Act 1976 and the Historic

Shipwrecks Programme. During 2005–06 the department provided $400 000 to

the states, the Northern Territory and Norfolk Island to administer the Act, and

for projects aimed at protecting, preserving and monitoring historic shipwrecks.

Projects include location and protection of the anchor from the French exploration

vessel Le Casuarina, lost at sea in 1803, and a permanent shipwrecks display at the

Low Head Pilot Station museum.

On 14 August 2005, the government announced a grant of $1.3 million to HMAS

Sydney Search Pty Ltd to assist in the search for HMAS Sydney (II), which was lost

off the Western Australian Coast in November 1941 along with 645 crewmen.

Australia’s maritime heritage

The minister selected coastal and maritime heritage as the theme for 2006 to mark

the 400th anniversary of the fi rst European contact with Australia. This theme will

encourage a better appreciation of the early maritime exploration of Australia

by focusing on the signifi cant heritage places, including European settlements,

Indigenous sites, and Macassan (Indonesian) sites; and the historic buildings,

wharves and jetties, lighthouses, coastal defence installations and shipwrecks that

dot Australia’s coastline.

The department published Great southern land: the maritime exploration of

Terra Australis by Dr Michael Pearson. The book tells the story of the maritime

investigation and mapping of the Australian coastline from the 16 century to the

present day.

This year two places

associated with early

European maritime

exploration were

included in the

National Heritage

List: Cape Inscription

in Western Australia,

where Captain Dirk

Hartog landed in

October 1616, and

the site of the 1629

shipwreck and The Duyfken. Photo: Mark Mohell

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survivor camps of the Dutch ship Batavia. The Batavia is the oldest of the known

Dutch East India Company wrecks on the coast of Western Australia.

To commemorate the 400th anniversary of the fi rst documented European contact

with Australia when Willem Janszoon and his crew on the Duyfken mapped

350 kilometres of Australia’s coastline, the Australian Government sponsored the

voyage of the 1606–2006 Duyfken replica built in Fremantle in 1999. The 10-month

voyage is providing a rare opportunity for Australians to experience life as it would

have been on a late 16th century vessel and to learn more about our nation’s

important maritime heritage.

Protection of movable cultural heritage

The department administers the Protection of Movable Cultural Heritage Act

1986. This Act aims to prevent Australia’s cultural heritage from being signifi cantly

diminished due to the export of heritage objects and to protect the cultural

heritage of other countries by preventing the illegal import of signifi cant objects.

The Act supports collecting institutions such as museums through the National

Cultural Heritage Account.

This year the National Cultural Heritage Account supported a number of

organisations including the School of Music at the Australian National University

for the purchase of a circa 1880 Roenisch Concert Grand Piano, and the South

Australian Museum for the purchase of an intact opalised Pascoe ichthyosaur fossil.

In July 2005 seven illegally imported ancient Egyptian funerary objects recovered

under the Protection of Movable Cultural Heritage Act 1986 were returned to

the Egyptian Government. The antiquities date from the Late Period of Egyptian

history and are thought to be more than 2 500 years old. The objects included

Shabtis (small funerary statuettes), amulets (magical charms for protection) and

food bowls.

In September 2005 more than 10 000 illegally imported fossils were returned

to the People’s Republic of China. These fossils included a keichosarus (a small

marine reptile) that is 230-million-years-old, and mammal fossils around two

million years old.

Results for 2005–06 are listed in the report on the operation of the Act in the

second volume of this set of annual reports. The report lists objects acquired with

assistance from the National Cultural Heritage Account, objects assessed during

the year, and objects exported illegally from other countries and imported into

Australia that were returned to their countries of origin.

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Cultural heritage projects

National Heritage Investment Initiative

The National Heritage Investment Initiative is a $10.5 million grants programme

over four years beginning in 2005–06. The programme provides assistance to restore

and conserve Australia’s important historic heritage places. It focuses on places

entered on either the National Heritage List or a state or territory government

heritage register. Funding is not available for places owned by the Commonwealth.

The programme’s fi rst round was conducted in 2005–06, with 373 applications

seeking a total of $58.7 million in funding. The Minister for the Environment and

Heritage approved funding totalling $3.6 million for 18 projects, including three

projects for places in the National Heritage List. Examples of approved projects

include conservation work on the national heritage listed Newman College, Victoria;

conserving the historic fabric of the national heritage and world heritage listed

Royal Exhibition Building, Melbourne; work on the former St Matthew’s Church,

Tasmania; conservation work on Fremantle Prison, Western Australia; and restoration

work on the rare French façade of the Luna Park carousel organ, Melbourne.

Point Nepean Community Trust grant

The Point Nepean Defence Sites and Quarantine Station Area at the entrance to

Port Phillip Bay, Victoria, were entered in the National Heritage List on 16 June 2006

in recognition of their outstanding heritage value. The Quarantine Station is

managed by the Point Nepean Community Trust on behalf of the Commonwealth.

In June 2006 the Australian Government provided $27 million to the trust to

conserve heritage assets at the quarantine station, undertake infrastructure and

building works, and provide for public access and interpretation works. The trust

is working with the Victorian Government to develop a management plan to

protect the heritage values of all of Point Nepean.

Grants for Conservation of Cathedrals and Churches

In 2005–06 grants totalling $11 million were approved for conservation works to six

cathedrals and churches around the country. These consisted of $2 million to St John’s

Cathedral, Brisbane; $2 million to St Mary Star of the Sea, Melbourne; $2 million to

St Mary’s Cathedral, Hobart; $1 million to the Basilica of St Patrick, Fremantle; $3 million

to St Mary’s Cathedral, Perth; and $1 million to St George’s Cathedral, Perth.

National Trust Partnership Programme

The National Trust Partnership Programme supports activities of the National

Trust to increase public awareness, understanding and appreciation of Australia’s

cultural heritage, to enhance and promote its conservation.

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The department paid $842 000 to Australia’s nine National Trusts in 2005–06.

Payments supported the completion of a comprehensive database of endangered

places, leading the International Trust movement to support emerging trusts in

Asia, working on disability standards through the Australian Building Code for

access to heritage buildings, raising awareness of maritime heritage and protecting

signifi cant coastal landscapes. Other projects involved developing heritage

education programmes about National Trust properties for schools and training

volunteers to coordinate and run programmes for schools and the public.

Sharing Australia’s Stories

This programme supports projects that showcase Australia’s distinctive national

character and identity, especially projects that show how local stories have

contributed to the great events and themes that have shaped our nation. The

fi rst round of the Sharing Australia’s Stories grants programme was run as a

competitive grants programme. In 2005–06 a different approach was adopted for

the second round.

The focus of the second round of the programme was on Australia’s coastal and

maritime heritage. Funds were allocated by the minister to activities that support

telling stories around this theme. A key example is the voyage of the Duyfken,

marking the 400th anniversary of the fi rst European contact with Australia. The

Duyfken will visit 25 ports across Australia during her 10-month voyage and will be

open for tours while in port. The Australian Government is the major sponsor for

the voyage as part of its 2006 coastal and maritime heritage theme (see page 123).

Gifts to the Nation

This programme provides one-off funding for appropriate projects promoting

national heritage stories and newly listed national heritage places as a key

component of the Australian Heritage Council’s public engagement activities.

Gift projects this year included an Australian Government contribution of

$30 000 to a joint French–Australian archaeological investigation at Recherche

Bay in Tasmania; a $100 000 gift to the Western Australian Museum for a range

of products to interpret and promote the national heritage values of the Dirk

Hartog landing site of 1616 at Cape Inscription, and to conduct survey work

associated with the 1629 Batavia shipwreck and survivors’ camps on Houtman

Abrolhos in Western Australia; $50 000 to the Northern Territory Department of

Natural Resources, Environment and the Arts for enhanced interpretation of the

Hermannsburg Historic Precinct, highlighting the precinct’s national heritage

values; $30 000 to the Murrindindi Shire for interpretation of the national heritage

values of the Yea Baragwanathia Flora Fossil Site, Victoria; and $30 000 to the

National Trust of Australia (Victoria) for interpretation of the national heritage

values of Rippon Lea in Melbourne.

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Commemoration of Historic Events and Famous Persons

The Commemoration of Historic Events and Famous Persons Programme aims to

commemorate people, events and places of national historical signifi cance. The

programme funds projects such as erecting monuments, plaques and statues;

exhibitions; surveys of historical sites; and curatorial work. In 2005–06 funds

were provided to repair and maintain the graves of two former Australian prime

ministers, Andrew Fisher (Hampstead Cemetery) and Sir George Reid (Putney Vale

Cemetery) both in the United Kingdom.

Strengthening Tasmania—Low Head precinct

During 2005–06 the department paid $150 000 to refurbish a building dating from

the 1860s in the historic Low Head precinct near Launceston, Tasmania.

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Results for performance indicators

Performance indicator 2005–06 result

Protected heritage areas

Number of nominations for heritage listing assessed and decisions taken on listing

76 National Heritage List assessments have been provided to the minister by the Australian Heritage Council (39 in 2005–06)

22 Commonwealth Heritage List assessments have been provided to the minister by the Australian Heritage Council (6 in 2005–06)

80 National Heritage List decisions have been announced under the standard and emergency listing provisions (44 in 2005–06)

23 Commonwealth Heritage List decisions have been announced under the standard and emergency listing provisions (12 in 2005–06)

Total numbers of (i) world heritage areas, (ii) national heritage places, (iii) Commonwealth heritage places and (iv) declarations for protection of Indigenous heritage under Part II of the Aboriginal and Torres Strait Islander Heritage Protection Act 1984

i) 16

ii) 31

iii) 339

iv) 0

Number of (i) world heritage areas, (ii) national heritage places and (iii) Commonwealth heritage places with management plans in operation

i) 15 have management plans. Heritage Victoria is currently preparing a management plan for the 16th area, the Royal Exhibition Building National Historic Place

ii) 3 historic places in Commonwealth ownership have management plans which will require review for EPBC Act requirements. It is still being determined how many other national heritage places not wholly in Commonwealth ownership have management plans

iii) 1 Commonwealth heritage place has a management plan in place and 1 other has a management plan for part of the place

Protected heritage objects

Number of assessments of protected objects completed and decisions on protection

The minister made 14 decisions about 64 objects on temporary and permanent export permit applications

Heritage conservation

Provider role

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Regulator role

Percentage of statutory timeframes triggered that are met (Target: >90%)

84%. Details and reasons are in volume 2, legislation annual reports

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Performance indicator 2005–06 result

Sharing Australia’s Stories

Extent to which support has contributed to local stories that have shaped our nation

The funded projects represent a range of stories concerning signifi cant events and themes that have shaped the nation, with a variety of successful outputs including events, pamphlets, books and exhibitions

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 22

Gifts to the Nation

Extent to which the promotion of national heritage stories and newly listed national heritage places as a key component of the Australian Heritage Council’s public engagement activities is improved

The minister has approved a range of Gifts to the Nation to assist in the promotion and management of newly listed national heritage places. These include contributing to a joint French–Tasmanian archaeological investigation of early exploration sites at Recherche Bay, Tasmania, and interpretation works at several places

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 8

Commemoration of Historic Events and Famous Persons

Extent to which the commemoration of people, events and places of national historical signifi cance is improved

The minister has approved funding for repairs and maintenance to the graves of former prime ministers Andrew Fisher, at Hampstead Cemetery and Sir George Reid, at Putney Vale Cemetery, in Britain

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 2

National Trust Partnership Programme (administered item)

Extent to which National Trust activities support the new national heritage system

The programme funds communication activities consistent with government themes; participation in the National Cultural Heritage Forum; support of the Environment Protection and Biodiversity Conservation (EPBC) Unit’s Heritage Outreach Offi cer; and liaison with the legislative processes relating to the heritage lists and the operations of the EPBC Act

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 9

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Performance indicator 2005–06 result

Regional Natural Heritage Programme (administered item)

Extent to which conservation of biodiversity hotspots in South-East Asia and the Pacifi c region is enhanced

Over the 3 rounds of the programme a total of 23 projects have been approved to assist countries in the Asia–Pacifi c region manage sites with high biodiversity with a focus on the need to protect areas that are under threat (biodiversity hotspots)

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 23 (6 projects funded under the 2005–06 round)

Indigenous Heritage Programme (administered item)

Extent to which support for Indigenous people increases the awareness and management of Indigenous heritage nationally

Funding of 61 projects across Australia, many of which focus on the interpretation of Indigenous heritage, has signifi cantly increased the awareness and management of Indigenous heritage nationally

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 61

National Cultural Heritage Account (administered item)

Extent to which the preservation of heritage objects is increased by assisting their acquisition by Australian collecting institutions

The account assisted the acquisition of 5 heritage objects by Australian collecting institutions in 2005–06, including Indigenous objects, heritage machinery, historic musical instruments and art, and has thereby helped to ensure their preservation, and access to the public within Australia, for the long term

Number of objects acquired 5

Protecting Australia’s Biodiversity Hotspots (Daintree Conservation Initiative) (administered item)

Extent to which recovery of the cassowary and protection of Daintree lowlands is improved

Under the Cassowary Conservation Project a desktop update of the North–South Cassowary Corridor Project has been completed

As at June 2006 a total of 57 hectares (on 12 properties) has been acquired under the Daintree Conservation Initiative. These properties are in prime cassowary habitat

Number of cassowary conservation activities funded

1. The biotropica research report was completed. It provides a framework to establish lowland habitat linkages for the southern cassowary between Cairns and Cardwell. Stakeholder meetings are due to be held to launch this framework plan. The plan is currently undergoing formal peer review

Number of rainforest conservation activities funded 12 high conservation value properties were acquired for a total of $1.267 million and planning work commenced for stewardship, publicity and education activities

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Performance indicator 2005–06 result

National Heritage Investment Initiative (administered item)

Extent to which conservation of places of outstanding heritage value to the nation is improved, particularly places on the National Heritage list

This was the fi rst round of the programme and so no projects have been completed. Grants totalling $3.6 million were approved. The approved projects provide funding for restoration and conservation of a diverse range of places of national importance, varying from restoration of the art nouveau façade of the carousel organ at Luna Park, Melbourne, to restoration works on the walls of Fremantle Prison

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 18

Churches and cathedrals (administered item)

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Number of projects funded 5

HMAS Sydney II Search (administered item)

Contribution to the implementation and completion of sonar search

HMAS Sydney II search has been re-scheduled to 2006–07 subject to HMAS Sydney Search Pty Ltd securing sponsorship required to commit to sonar search

Strengthening Tasmania—Low Head Precinct (administered item)

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Output 1.4—Conservation of natural, Indigenous and historic heritage

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Percentage of statutory timeframes triggered that are met (Target: >90%)(a)

84%. Details and reasons are given in the EPBC Act annual report

(a) Applies to areas that administer legislation, for example reporting timeframes triggered under the Environment Protection and Biodiversity Conservation Act 1999.

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Resources

Departmental outputs Budget prices $’000

Actual expenses $’000

Total (Output 1.4: Natural, Indigenous and historic heritage) 23 527 22 830

Administered items

Grants-in-Aid-National Trust

Regional Natural Heritage Programme

Maintenance and Protection of Indigenous Heritage Programme

National Cultural Heritage Account

Protecting Australia’s Biodiversity Hotspots (Daintree Conservation Initiative)

Strengthening Tasmania – Low Head Precinct

National Heritage Investment Initiative

Point Nepean Community Trust(a)

Churches and cathedrals

842

4 358

3 256

682

2 650

150

2 200

27 000

10 500

842

4 260

3 261

479

2 650

150

2 200

0

10 500

Total (Administered) 51 638 24 342

Other annual reports providing information on this output

Annual report on the operation of the Environment Protection and Biodiversity

Conservation Act 1999 included in the second volume of this set of annual reports

Annual report on the operation of the Protection of Movable Cultural Heritage

Act 1986 included in the second volume of this set of annual reports

Annual report of the Natural Heritage Trust at www.nht.gov.au/publications

(a) In accordance with the government’s accrual accounting framework, the amount will be recorded as actual expenses when the Point Nepean Trust carries out the works it has been paid for.

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OUTCOME 1—ENVIRONMENT HUMAN SETTLEMENTS

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Human settlements

The Department of the Environment and Heritage works with all levels of

government, and with the community and industry to minimise the impact of

human settlements and industrial processes on Australia’s environment.

Main responsibilities for this output

• Commonwealth Environment Research Facilities

• National Pollutant Inventory

Policy

Coordination

Division

• Environmental impact assessments and approvals

• Sea dumping and sea installations regulation

Approvals and

Wildlife Division

• Support for the Environment Protection and

Heritage Council and the National Environment

Protection Council

• Air quality

• Vehicle emissions and fuel quality

• Ozone layer protection

• Product stewardship schemes

• National Packaging Covenant

• Water effi ciency labelling

• Hazardous substances regulation

• Biotechnology risk assessment

• Chemical risk assessment

Environment

Quality Division

• Supervision of uranium mining in the Alligator

Rivers Region

Supervising

Scientist Division

Objectives

Environmental research

• Improve the capacity to understand and respond to current and emerging

challenges facing Australia’s environmental assets

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Environmental assessments

• Protect the matters of national environmental signifi cance defi ned in the

Environment Protection and Biodiversity Conservation Act 1999

• Protect the marine environment through the management of dumping under

the Environment Protection (Sea Dumping) Act 1981

Pollution prevention strategies

• Facilitate consistency in national air, water, soil and noise standards, and

provide all Australians with the benefi t of equal environmental protection

wherever they live

• Improve urban air quality in order to protect human health and the

environment by reducing emissions of pollutants to the atmosphere

• Protect the stratospheric ozone layer

• Reduce pollution from waste by increasing collection, reuse and recycling

• Improve the environmental performance of industry

• Improve public information by promoting better reporting and labelling

• Protect the environment and human health from hazardous substances and

organisms

Supervision of uranium mines

• Monitor, audit and supervise uranium mining in the Alligator Rivers Region of

the Northern Territory

Results 2005–06

• The Minister for the Environment and Heritage announced the fi rst

four research hubs to receive $25.3 million over four years under the

$60 million national component of the $100 million Commonwealth

Environment Research Facilities programme. The four research hubs are

the Australian Centre for Applied Marine Mammal Science in Hobart, the

Tropical Rivers and Coastal Knowledge hub covering northern Australia,

the University of Tasmania’s Landscape Logic—Linking Land and Water

Management to Resource Condition Targets and the University of

Queensland’s research hub for Applied Environmental Decision Analysis.

• The minister announced over $6 million would be invested in 2006–07

in 38 research projects to explore and protect some of Australia’s most

applauded natural assets under the $40 million Marine and Tropical

Sciences Research Facility based at James Cook University campuses in

Cairns and Townsville.

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• Since July 2000 more than 1 250 matters of national environmental

signifi cance have been protected through the referral, assessment and

approval process, with 270 of these matters protected in 2005–06.

• The department funded 13 research projects to investigate a wide range

of air quality issues under the Clean Air Research Programme. The

research fi ndings will inform standard setting and air quality management

strategies.

• From 1 January 2006 the fuel quality standards for benzene levels in petrol

and polycyclic aromatic hydrocarbon and sulfur levels in diesel were

strengthened under the Fuel Quality Standards Act 2000.

• The department’s fuel quality sampling capability was increased this year

enabling a record number of samples to be tested for compliance with the

Fuel Quality Standards Act 2000. For the fi rst time samples of liquefi ed

petroleum gas (LPG) were tested. Increased fuel sampling will lead to

cleaner fuels and lower emissions of pollution.

• The network of oil recycling facilities was extended into remote pastoral

and Indigenous areas in northern and central Australia. Since the

implementation of the Product Stewardship for Oil Programme, used oil

recycling has increased by about 40 per cent. These efforts signifi cantly

reduce the amount of oil being dumped and polluting the environment.

• National end use regulations were introduced for the refrigeration and

air conditioning and the fi re protection industries. The regulations set

minimum skill and working standards and will directly lead to reduced

emissions of ozone depleting substances and their synthetic greenhouse

gas replacements.

• A recent report indicates that plastic bag consumption in Australia has

fallen by 34.2 per cent or over two billion bags over the last three years.

This means fewer plastic bags are entering the waste stream and polluting

the environment.

• The department received 4 000 registrations under the new labelling

scheme for water effi cient products (Water Effi ciency Labelling and

Standards Scheme), and began to inform the water appliance industry of

the scheme and its requirements. The scheme will enable consumers to

choose the most water effi cient appliances, and will encourage innovation

by industry, leading to less wastage of precious water supplies.

• Research, monitoring and supervision indicate that the environment

of the Alligator Rivers Region remains protected from the impacts of

uranium mining.

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Environmental research

Scientifi c research and data are essential for the development of sound

environmental policy. The department aims to improve Australia’s capacity to

understand and respond to current and emerging priorities for the conservation

and use of the nation’s environmental assets by supporting research and providing

information to the community.

Commonwealth environment research facilities

In September 2005 the Minister for the Environment and Heritage launched the

Commonwealth Environment Research Facilities programme, a $100 million

programme to address critical gaps in knowledge and understanding of the

pressures facing Australia’s unique environment. The programme will foster

professional partnerships between researchers, end users and policy makers

through funding collaborative, multi-institutional research hubs or networks.

The Australian Government is investing $60 million over four years for national

environmental research. During 2005–06 the department received

149 expressions of interest for a series of competitive grants. Funding totalling

$25.3 million will be provided to the following four research hubs:

Research hub for Applied Environmental Decision Analysis: The University

of Queensland will receive $6.9 million to establish a research hub addressing

Australia’s environmental planning, decision making and policy approaches.

Research hub for Tropical Rivers and Coastal Knowledge: A group of seven

researchers from research institutes in Western Australia, the Northern Territory

and Queensland will receive $8 million to improve management information for

northern Australia’s catchments.

Research hub for Landscape Logic—Linking Land and Water Management

to Resource Condition Targets: The University of Tasmania will receive

$7.9 million to establish a research hub that will develop tools to improve the

sustainability of natural resource management practices.

Australian Centre for Applied Marine Mammal Science: The Australian

Antarctic Division will receive $2.5 million over four years to establish a research

hub to address critical gaps in understanding about the conservation of Australia’s

40 species of whales and dolphins, as well as dugongs and 10 species of seals.

These research hubs will make a signifi cant contribution to addressing knowledge

gaps for environmental decision-making in areas of key policy interest to the

Australian Government. Additional research will be announced early in 2006–07.

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Marine and Tropical Sciences Research Facility

As part of the Commonwealth Environment Research Facilities programme

$40 million will be invested over fi ve years for a Marine and Tropical Sciences

Research Facility based at James Cook University campuses in Cairns and

Townsville.

In 2005–06 $2.5 million was spent on a range of research projects under the

Marine and Tropical Sciences Research Facility transition contracts.

In the fi rst half of 2006, a four-year research investment strategy was developed to

guide the strategic direction of the research. The strategy is accompanied by an

annual research plan, detailing the research to be conducted in the fi rst year of

operation. The research plan for 2006–07 covers:

• the Great Barrier Reef, wet tropics rainforests and Torres Strait ecosystems

• conservation issues and protecting species

• evidence of climate change on the Great Barrier Reef, rainforests and

catchments

• threats and impacts of invasive pests

• water quality

• sustainable use and management of marine resources of the Great Barrier Reef

• planning and management of tropical rainforest landscapes.

The minister announced that over $6 million would be invested in 2006–07

covering 38 research projects to explore and protect some of Australia’s most

valued natural assets. Research being conducted by the facility will focus on

identifying, understanding and ameliorating a range of pressures currently facing

the Great Barrier Reef, tropical rainforests including the Wet Tropics World

Heritage Area, and the Torres Strait.

National Pollutant Inventory

The National Pollutant Inventory is a free publicly available database of chemical

emissions information. People use it to fi nd out the types and amounts of

chemical substances being emitted into the air, land and water from industrial

processes and other activities. The National Environment Protection (National

Pollutant Inventory) Measure is the statutory basis for the inventory. The

measure requires industry to report on emissions if they exceed certain levels

and the department to publish the results each year in the National Pollutant

Inventory.

One of the aims of the National Pollutant Inventory is to encourage government,

industry and the community to improve their environmental performance by

reducing emissions.

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The Australian Government

provided funding of $4 million

over three years (2005–2008)

for the National Pollutant

Inventory. Funding was

extended by $5.2 million in

2005 for the period 2005–2009.

The National Pollutant

Inventory database is available

at www.npi.gov.au.

Annual results

The 2004–05 National Pollutant

Inventory results were

published in January 2006. The

number of facilities reporting to the inventory rose from 3 629 in 2003–04 to 3 826

in 2004–05. The number of facilities reporting each year is steadily increasing as

more companies become aware of their obligations.

There are 90 chemical substances listed in the National Pollutant Inventory

for which emissions must be reported. For 2004–05 just over half of these

substances had decreased emissions compared to the previous year. For

example, the amount of phosphorus entering the Murray–Darling Basin from

sewerage and water treatment plants fell 31 per cent during 2004–05. In other

cases emissions rose, for example, the amount of benzene rose 33 per cent

over the previous year, refl ecting an increase in manufacturing and processing

activities.

It is not clear what proportion of the lower emissions is attributable to improved

environmental performance from installing new equipment or changing the way

facilities operate. Several industries undertook work to improve the accuracy of

their data, and this may have had an impact on calculation of emissions. Some

industries may also have reduced their production levels, thereby reducing

emissions.

Review of the National Pollutant Inventory

The National Environment Protection Council commenced the statutory process

to make a variation to the National Environment Protection (National Pollutant

Inventory) Measure in July 2005. The council will consider ways to improve the

inventory’s effectiveness both as a source of information and as a driver of cleaner

The National Pollutant Inventory provides Australians with free access to information on the types and amounts of pollutants being emitted in their community. Photo: Greg Rippon

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production. A project team and a technical advisory panel were established and

have provided documentation on:

• including data on the transfer of substances in waste

• adding industries such as aquaculture and crematoria

• including greenhouse gases as National Pollutant Inventory substances

• adding or removing substances from the list

• changing the reporting timeframes

• reducing the reporting threshold for some substances including mercury and

particulate matter.

The council agreed in June 2006 to release the draft National Environment

Protection Measure variation, impact statement and other supporting documents

for public consultation. The public consultation will commence in late July 2006.

An associated project is under way to upgrade, improve and streamline the data

collection, approval, analysis and public reporting processes of the National

Pollutant Inventory.

Environmental assessmentThe Department of the Environment and Heritage manages referral, assessment

and approval processes under the Environment Protection and Biodiversity

Conservation Act 1999.

The department also manages assessment and approval processes under other

federal laws, particularly the Environment Protection (Sea Dumping) Act 1981 and

the Sea Installations Act 1987.

Environmental assessments and approvals

The Environment Protection and Biodiversity Conservation Act 1999 establishes

procedures for determining which actions require approval under the Act, and

the related environmental assessment and approval processes. Approvals are

required for actions that are likely to have a signifi cant impact on those matters of

national environmental signifi cance protected under Part 3 of the Act. Approval

is also required for actions of the Australian Government and actions involving

Commonwealth land that are likely to have a signifi cant impact on the environment.

Since the commencement of the Act in July 2000, more than 1 250 matters of

national environmental signifi cance (including aspects of the environment for

actions of the Australian Government or actions involving Commonwealth land)

have been protected through the referral, assessment and approval process,

with 270 of these matters being protected in 2005–06. The matters of national

environmental signifi cance protected include world heritage properties,

Ramsar wetlands of international importance, threatened species and ecological

communities, migratory species, and the Commonwealth marine environment.

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Timeframes for all decision-making in the referral, assessment and approval

process are fully specifi ed in the Act. The chart (below) shows the percentage

of such decisions that have been made within statutory timeframes since the

commencement of the Act. In 2005–06, 85 per cent of decisions were made within

statutory timeframes.

Timeliness of decision-making in the referral, assessment and approval process is

an ongoing challenge for the department.

A full report on the department’s environmental assessment and approval

activities can be found in the detailed report on the operation of the Environment

Protection and Biodiversity Conservation Act 1999 included in the second volume

of this set of annual reports. The detailed report also includes information on:

• compliance activities being undertaken by the department, including the

operation of the department’s Environment Investigations Unit

• new guidelines to help the public understand what impacts could be classed as

signifi cant and hence require detailed assessment and approval under the Act

• stakeholder and public awareness activities undertaken by the department,

including successful training and information sessions on the Act held for local

and regional bodies across Australia and strategic regional planning projects in

two high growth regions in Western Australia and Queensland.

Project work is partly funded through the national component of the Natural

Heritage Trust. During 2005–06, $2 million was invested from the Natural Heritage

Trust in environmental assessment and approval related projects—this fi gure

includes funding for projects related to assessments under the Environment

Protection (Sea Dumping) Act 1981, discussed on next page.

Percentage of statutory timeframes met, 2000 to present

0

25

50

75

100

2000–01 2001–02 2002–03 2003–04 2004–05 2005–06

Per

cent

age

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Sea dumping and sea installations regulation

The Environment Protection (Sea Dumping) Act 1981 was enacted to fulfi l

Australia’s international responsibilities under the London Convention of 1972 and

has been amended to implement the 1996 Protocol to the London Convention,

which Australia ratifi ed in 2001. The Act regulates the deliberate loading and

dumping of wastes and other matter at sea.

In 2005–06, 21 sea dumping permits were issued. This refl ected the continual

need to dispose of dredged material at sea due to expansion of ports across

Australia particularly as a result of the increase in the resources export market.

Reviews of applications for offshore disposal of dredged material involve detailed

environmental impact assessments in accordance with the National Ocean

Disposal Guidelines for Dredged Material.

This year the department investigated a breach of the Environment Protection (Sea

Dumping) Act 1981 by Robe River Mining Co Pty Ltd, a member of the Rio Tinto

Group, in relation to an extension of the Cape Lambert Tug Pen basin. The company

received an offi cial warning after it agreed to make substantial improvements

in environmental management, including improved auditing and reconciliation

of projects against environmental mitigation conditions and the creation of an

environmental manager position within its business unit. The department accepted

that the breach primarily occurred as a consequence of project modifi cations and

inadequate monitoring, rather than a deliberate decision to contravene the Act.

There was a continual request for permits under the Environment Protection (Sea

Dumping) Act 1981 to place artifi cial reefs and to dispose of unwanted vessels at sea.

The Sea Installations Act 1987 regulates the construction and operation of human-

made devices, equipment and other installations in the marine environment

including tourism pontoons and fi sh aggregation devices. The Act ensures that sea

installations are operated safely, are environmentally sound and are operated in a

manner that is consistent with the protection of the environment.

Most sea installations in Australia are within the Great Barrier Reef Marine Park. In

2005–06 the department issued six permits/exemptions for sea installations under

the Act.

Pollution prevention strategiesDeveloping and implementing strategies to prevent pollution are important parts

of the department’s activities. The department’s pollution prevention strategies

focus on reducing pollution at the source, and promoting the collection, reuse and

recycling of waste materials. The successful delivery of these strategies relies on

cooperation with the state and territory governments and with industry. Ministerial

councils are the key forum for making decisions on priorities and agreed

management actions.

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Environment Protection and Heritage Council

The Environment Protection and Heritage Council comprises environment and

planning ministers from Australia’s federal, state and territory governments. The

scope of the council includes environment protection and heritage responsibilities

and it is the key forum in which the department pursues activities for pollution

prevention and managing impacts from human settlements. The council

incorporates the National Environment Protection Council (see below).

In February 2006, the Council of Australian Governments set priorities for the

Environment Protection and Heritage Council on climate change, transport,

greenhouse gas emissions reporting, chemicals regulation and reducing the

regulatory burden on industry. Other priorities include air quality standards,

varying the National Pollutant Inventory, water recycling guidelines, water

effi ciency labelling, product stewardship for used materials such as tyres,

computers and televisions, and an environmental risk management framework for

chemicals. All of these priorities are embraced in the strategic plan for 2006–2008

which the Environment Protection and Heritage Council agreed in June 2006.

Support for the National Environment Protection Council

The National Environment Protection Council is a statutory body with law-making

powers established under the National Environment Protection Council Act 1994

and corresponding legislation in the states and territories.

Each jurisdiction contributes funding to support the National Environment

Protection Council with the Australian Government contributing 50 per cent.

The department paid the Australian Government’s annual contribution which in

2005–06 was $440 000. This contribution goes to the National Environment

Protection Council Service Corporation which provides secretariat, project

management and administrative services.

Detailed outcomes are reported in the annual report on the operation of the

National Environment Protection Council Act 1994 available at

www.ephc.gov.au/nepc/annual_reports.html.

See page 203 for information on the Governance Review of Statutory Authorities

and Offi ce Holders: National Environment Protection Council.

Air quality

Australians consistently rank air pollution as a major environmental concern

although Australia’s air quality is generally good. Actions taken by Australian

governments to improve air quality have already delivered billions of dollars in

avoided health costs.

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The department works with other governments and industry to reduce air

emissions of major pollutants. The department’s work focuses on tackling the

major sources of air pollution, including motor vehicles, woodheaters, and

industry as well as specifi c pollutants that pose threats to human health and the

environment. Another focus is improving the quality of indoor air in non-industrial

settings.

As a result of these collaborative efforts, the levels of major pollutants including

nitrogen dioxide, lead, carbon monoxide, nitrogen dioxide and sulfur dioxide in

Australian cities are generally lower now than they were 10 to 15 years ago.

Particles and ozone levels are still a major concern in some cities. In larger cities,

the levels of ozone exceed the national standard several times a year. Particle levels

continue to exceed the national standard in some areas. Smoke from woodheaters

is a common cause of elevated particle levels, particularly during the cooler

months.

To improve access to air quality data the department is establishing a national air

quality database, which is expected to be operational in early 2007. These data will

inform future decisions on standard setting and management strategies, and allow

better assessment of the status and trends in air quality.

Trends in air quality for the period 1991–2001 are available in the State of the Air

Report at www.deh.gov.au/atmosphere/airquality/publications/status.

Air quality standards

National Environment Protection Measures outline agreed national objectives for

protecting or managing particular aspects of the environment. These measures

have the force of law under the National Environment Protection Council Act

1994 and mirror legislation in the states and territories.

In 1998 the National Environment Protection (Ambient Air Quality) Measure was

made to set acceptable levels for the six common air pollutants: particles, ground-

level ozone, carbon monoxide, lead, nitrogen dioxide and sulfur dioxide.

The National Environment Protection Council began a review of the Ambient Air

Quality Measure in April 2005. The review is due to be completed in 2008, and

resulting changes to the measure will ensure that Australia has the most

up-to-date and effective policy framework to protect human health from exposure

to air pollution. As part of the review, the department contributed to a preliminary

review of the ozone and sulfur dioxide standards, and to a scoping paper that

sought public views on issues that ought to be considered by the review.

The National Environment Protection Council made the National Environment

Protection (Air Toxics) Measure in December 2004. The purpose of the Air Toxics

Measure is to gather information about the concentrations and distribution of air

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toxics compounds in the environment for the purpose of setting new national air

quality standards for these pollutants. The measure sets benchmarks (monitoring

investigation levels) for fi ve air toxic pollutants—benzene, formaldehyde,

polycyclic aromatic hydrocarbons, toluene and xylenes—against which to assess

the information being gathered.

In October 2005 the department assisted with the development of a methodology

for ranking air toxics for possible future inclusion in the measure.

Information on National Environment Protection Measures is available on the

Environment Protection and Heritage Council website at www.ephc.gov.au/nepms.

Managing woodsmoke pollution

Woodheaters are a major source of urban air pollution in some areas in winter.

During 2005–06 the department developed a certifi cation procedure to improve

woodheater compliance with pollutant emission standards. Work will continue

with other jurisdictions and industry over 2006–07 to implement the procedure,

including an ongoing audit of woodheaters and actions to increase public access to

details on woodheater performance.

While marked improvements have been made, Launceston in Tasmania continues

to experience poor air quality during the cooler months. In response to this

problem, the department provided grants to four industrial facilities under the

Launceston Clean Air Industry Programme to assist them to make technological

changes to reduce pollutant emissions. This three-year, $1 million programme will

build on a previous grants programme that helped 2 242 householders to replace

woodheaters with less-polluting alternatives. Together these initiatives will help

to continue the current trend of decreasing the number of annual exceedences of

particle pollution in the region.

CycleConnect

The $2.4 million CycleConnect Grants Programme promotes cycling as a way of

reducing air pollution in cities by installing secure bicycle parking facilities at city

bus and train stations. In 2004–05, the department provided $0.9 million in grants

to partners in Sydney, Melbourne, Brisbane, Adelaide, Fremantle and Bendigo to

extend existing bicycle locker schemes by 1 100 lockers or cage spaces. In 2005–06

the department paid a further $1.2 million to partners in Sydney, Melbourne,

Perth, Adelaide and Darwin to increase bicycle locker and cage capacity by

1 200 spaces at train or bus stations.

Clean Air Research Programme

In April 2006 the department provided funding of $1.4 million for 13 research

projects to investigate important air quality issues under the Clean Air Research

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Programme. These research projects will be funded until June 2008 and will

address a broad range of priority research questions such as ground-level ozone

formation, public exposure to air pollutants and the estimated health benefi ts of

improved air quality. When completed, the fi ndings of these research projects will

help inform policy to address the risks associated with air pollution and develop

effective strategies for its reduction.

Indoor air quality

During 2005–06 the department consulted with key stakeholders to identify

priority pollutants for action and research, and to identify strategies to improve air

quality in non-industrial indoor settings. Building on this work, the department is

funding a new formaldehyde study in 2006. This national study will measure levels

of formaldehyde in a range of indoor environments, including mobile homes,

caravans and demountable buildings where formaldehyde-containing materials

are typically used in high amounts, to determine if this pollutant poses a risk to

people’s health and requires management action.

Vehicle emissions and fuel quality standards

Motor vehicles are the largest contributor to urban air pollution in Australia and

have a major infl uence on the incidence of smog and haze. To reduce motor

vehicle pollution the Australian Government has introduced national fuel quality

standards and is improving emissions standards for cars, buses and trucks.

The standards are contributing to improvements in environmental and health

outcomes. The standards also pave the way for new, cleaner vehicle technologies,

which will bring fuel consumption benefi ts.

The Department of the Environment and Heritage administers the Fuel Quality

Standards Act 2000. These standards currently apply to the quality of petrol,

diesel, biodiesel and autogas sold in Australia. The Department of Transport and

Regional Services is responsible for developing vehicle emission standards through

progressive tightening of vehicle design which is set to continue until 2010.

The limits for a number of key parameters regulated under the petrol and diesel

standards were either introduced or tightened from 1 January 2006 including:

• sulfur levels in diesel were limited to 50 milligrams per kilogram

• maximum diesel density level was limited to 850 kilograms per cubic metre

• polycyclic aromatic hydrocarbon levels in diesel were limited to 11 per cent of

total mass

• benzene levels in all grades of petrol were limited to no more than 1 per cent of

total volume.

The department is responsible for monitoring fuel at outlets including terminals,

depots and service stations to ensure it complies with the standards.

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The department will spend

$6.3 million over four years from

2006–07 to increase fuel quality

compliance inspections. This

will help to ensure fuel quality

standards are being met, thereby

increasing consumer confi dence. It

will also help prevent poor quality

fuel having negative impacts on

vehicle operability and on the

environment, through increased

emissions of pollutants. In 2005–06

the department extended fuel

quality sampling to include liquefi ed

petroleum gas (LPG). This year the

fi rst samples of LPG were tested for

compliance with the Fuel Quality

Standards Act 2000.

The Fuel Quality Standards Act 2000

was reviewed during 2005–06. The

review concluded that the overall

policy objectives of the Act are being

met and should not be altered,

but recommended strengthening

the monitoring, compliance and enforcement programme, and simplifying

administration of the Act, in particular the current approvals system for variations

to standards. Work commenced in April 2006 to implement the recommendations

arising from the review.

A full report on the operation of the Act including details of the outcomes of the

review appears in the second volume of this set of annual reports.

Reducing diesel emissions

Diesel vehicles make a disproportionately high contribution to oxides of nitrogen

and particle air pollution from the transport sector. Emissions from diesel vehicles

have the potential to cause adverse health impacts and detract from urban amenity.

The department supports in-service emissions testing for diesel (and petrol)

vehicles through funding agreements with the states and territories. Diesel vehicles

are tested for compliance with the exhaust emissions standards in the National

Environment Protection (Diesel Vehicle Emissions) Measure. In-service emission

testing helps to promote compliance with the standards and to reduce particle

pollution, smoke and smog-forming pollutants emitted from these vehicles.

The Australian Government runs a fuel sampling programme to monitor the quality of fuels sold in Australia. Fuels are sampled throughout the fuel supply chain, including at service station forecourts. Photo: Alastair Betts

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During the year, the department signed a $480 000 funding agreement with

the Tasmanian Department of Primary Industries, Water and Environment for a

programme to reduce diesel emissions.

The Australian Government’s energy white paper Securing Australia’s Energy

Future announced the introduction from 1 July 2006 of tax credits for users of

heavy diesel vehicles who can demonstrate that their vehicle is not a high polluter.

One of the fi ve permissible criteria for eligibility is to pass the in-service emission

standard referred to in the National Environment Protection (Diesel Vehicle

Emissions) Measure.

Biofuels

The Prime Minister released the Biofuels Taskforce report in September 2005. The

taskforce examined the latest scientifi c evidence on the impacts of ethanol and

other biofuels on human health, the environment, and the operation of motor

vehicles. The department commenced work on aspects of the government’s

response to the Biofuels Taskforce report, including:

• a study on the health impact of ethanol. The study will assess the comparative

impact of low ethanol blend fuel on tailpipe particulate and evaporative

emissions and the resulting impacts under Australian conditions. Reliable

Australian data will assist in quantifying the health costs and benefi ts of using

low ethanol blend fuels

• a testing programme to assess how vehicles in the Australian market operate

on E5 (5 per cent ethanol and 95 per cent petrol) and E10 (10 per cent

ethanol and 90 per cent petrol). The study will focus on vehicle performance,

compatibility of engine components and engine durability. Results will provide

further information on the suitability of low ethanol blends and inform

decision-making on whether E5 blends may be sold unlabelled

• simplifi ed labelling requirements for fuels containing ethanol. In January 2006

the existing, complex E10 fuel label was replaced with simplifi ed labelling that

is more easily understood

• biodiesel blend standards. Standards already exist under the Fuel Quality

Standards Act 2000 for 100 per cent biodiesel and for automotive or petroleum

diesel, but not for blends of the two. Blends have proliferated on the Australian

market. Establishing standard forms of biodiesel will increase consumer

confi dence and provide certainty to the market.

Emissions studies

Motor vehicles are well-known sources of air pollution and their emissions are

being regulated through fuel quality standards and emissions testing. With no or

low emissions control, often primitive combustion technology and widespread

use, small engines are also a signifi cant source of pollution. This year the

department supported a study examining how much pollution comes from small

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engines (two and four stroke cycle), including lawn mowers, hand-held garden

equipment and outboard motors.

So far a national inventory and a model to benchmark the environmental

performance of garden equipment and marine outboards (the two major non-

road contributors) have been completed. This information will inform air quality

management strategies in relation to emissions from small engines.

The department is providing funds for the second National In-service Emissions

Study. This study will test emissions from passenger vehicles, four wheel drives and

light commercial vehicles. The data will be used for emissions modelling and to

inform policy development with respect to vehicle emissions management.

A preliminary study was completed in September 2005. This study tested 60 light

duty petrol vehicles built in the period 1986–2002 for their emissions performance.

Further testing is expected to commence in 2007.

Ozone layer protection

Some chemicals used by industry for applications such as refrigeration,

air conditioning, foam production and fi re protection deplete the earth’s

stratospheric ozone layer. Ozone depletion allows biologically harmful ultraviolet

rays to reach the earth’s surface. Under the Montreal Protocol to the Vienna

Convention for the Protection of the Ozone Layer countries have agreed on dates

for phasing out ozone depleting substances.

Australia meets its obligations under the protocol through the Commonwealth

Ozone Protection and Synthetic Greenhouse Gas Management Act 1989

administered by the department. Under the Act, the department controls the

manufacture, import and export of all ozone depleting substances and their

synthetic greenhouse gas replacements, as well as regulating the end uses to

minimise emissions of these harmful gases. The department also develops policy

responses and programmes to phase out ozone depleting substances and to

minimise emissions of ozone depleting substances and their synthetic greenhouse

gas replacements.

In 2005–06 Australia continued to meet or exceed its responsibilities under the

Montreal Protocol. Australia will cease consumption of hydrochlorofl uorocarbons

by 2015, fi ve years ahead of its obligations under the Montreal Protocol. In doing

so, Australia will use 60 per cent less hydrochlorofl uorocarbons than permitted

under the Montreal Protocol in the period to 2020 (see chart on page 150).

Under the Ozone Protection and Synthetic Greenhouse Gas Management Act

1989 a licence is required to import, export and manufacture ozone depleting

substances. Section 40 of the Act allows the Minister for the Environment and

Heritage to grant exemptions to import products containing prohibited ozone

depleting substances where they are essential for medical, veterinary, defence,

industrial safety or public safety purposes, and where no practical alternatives are

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available. More information is available at www.deh.gov.au/atmosphere/ozone/

licences/index.html.

This year the department received 568 licence applications. All applications were

assessed within the statutory timeframe, with no disruption to applicants’ business

when the new licence period commenced on 1 January 2006.

The department received 11 applications for an exemption under section 40 of the

Act, and all these exemptions were granted to qualifying applicants.

In 2005 consumption of methyl bromide for non-quarantine and pre-shipment

purposes was reduced to 117.5 tonnes for approved critical uses. The department

has put in place supply controls to ensure that methyl bromide is used only by

critical use exemption holders.

The department manages Australia’s National Halon Bank. The facility recovers and

stores halon that is required for essential aviation and maritime use. It also collects and

destroys surplus halon from Australian business and the community. In 2005–06 the

department oversaw the collection and destruction of 10 tonnes of halon, 21 tonnes

of chlorofl uorocarbon from decommissioned mining equipment in Indonesia, and

28 tonnes of chlorofl uorocarbon from the United States and New Zealand.

The department implemented a national end use system to minimise emissions

of ozone depleting substances and synthetic greenhouse gases used in the fi re

protection and refrigeration and air conditioning industries. Under this system,

businesses and technicians who handle these products must be licensed,

demonstrate skills to an appropriate level and adhere to relevant Australian standards.

Australia’s performance against Montreal Protocol obligations

Australia’s consumption of ozone depleting substances has decreased in advance of our responsibilities due to government and industry initiatives to accelerate the phase-out of these substances.

0

200

400

600

800

1 000

1 200

1 400

1997 1998 1999 2000 2001 2002 2003 2004 2005

Ozo

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Detailed performance results on the operation of the Ozone Protection and

Synthetic Greenhouse Gas Management Act 1989 appear in the second volume of

this set of annual reports.

Product stewardship schemes

The department works closely with industry and with state, territory and local

governments to address waste issues through product stewardship initiatives.

The department is working with the states and territories to investigate the scope

for implementing stewardship programmes for tyres, televisions, mobile phones,

computers and plastic bags. Stewardship programmes are already operating for

newsprint, packaging and waste oil.

Product Stewardship for Oil Programme

Each year, about 520 million litres of lubricating oil is sold in Australia. Of this

amount, about 280 to 300 million litres of used oil is generated. If disposed

of incorrectly, this oil can cause serious damage to the environment. It can

contaminate the soil, groundwater, streams, rivers, lakes and drinking water.

The Product Stewardship for Oil Programme came into effect on 1 January 2001 to

encourage used oil recycling by providing benefi t payments to used oil recyclers.

The department has policy responsibility for the programme, while the Australian

Taxation Offi ce administers the levy and benefi t elements of the programme.

A total of $17.2 million in product stewardship benefi ts was paid in 2005–06,

with $14 million paid to recyclers for recycling used oil, an increase of almost

10 per cent from 2004–05. The volume of oil for which benefi ts were paid this year

was 210 million litres, compared to 220 million litres in 2004–05.

Industry estimates that about 150–165 million litres of used oil was being recycled

prior to the implementation of the programme. Since its implementation, used oil

recycling has increased by about 40 per cent.

The Australian Government provided $34.5 million in transitional assistance

funding from July 2000 until June 2007 as an interim mechanism to engender

change that will underpin the long-term viability of the oil recycling industry. This

assistance complements the stewardship levy-benefi t arrangements.

Since it began, the Product Stewardship for Oil Programme has funded the

installation of 850 used oil collection facilities, with over 80 additional facilities

funded in 2005–06. This year 37 grants worth a total of $2.7 million were also

approved. Five of these grants, worth about $0.9 million, extend the used oil

collection infrastructure network into remote pastoral and Indigenous areas in

northern and central Australia.

Detailed performance results on the operation of the Product Stewardship (Oil)

Act 2000 appear in the second volume of this set of annual reports.

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Reusing waste oil

Oil is a valuable and fi nite resource. Each year more than 500 million litres of lubricating oil is sold in Australia, of which at least 280 million litres is available for recycling.

The Product Stewardship for Oil Programme aims to increase recycling. The programme provides benefi t payments to used oil recyclers and provides funds for used oil collection facilities. Since it began in 2000, the programme has helped establish 850 collection facilities across Australia and has increased oil collection and recycling by about 40 per cent, from 160 million litres to 210 million litres per year.

Bitumen blowing test plant,

Bunbury, WATreating used oil as part of the recycling

process leaves a residue; this

partly completed test plant for

Wren Oil will allow the company

to process the residue so that

it can be used in road bitumen.

Recycling centre,Umuwa, SA

Establishing a recycling centre

at Umuwa in the Anangu–

Pitjantjatjara lands will provide safe

storage for the oil in these drums

and other waste before it is sent

for recycling, and will also create employment

opportunities.

Collection facility, Dalgety, NSW

A regional upgrade of

collection facilities at Jindabyne, Adaminaby,

Eucumbene and Dalgety (pictured) will allow 35 000

litres of used oil to be collected each year for recycling.

Collection facility, Penola, SA

This new collection facility at Penola will enable the collection and recycling of up

to 10 000 litres of used oil per year.

Collection facility, Maryborough, Qld

This new collection facility at Maryborough will allow the city

to collect and recycle an extra 5 640 litres of

used oil per year.

Oil recycling facility location

Featured facilities

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National Packaging Covenant

The National Packaging Covenant is a voluntary arrangement to reduce the

environmental impacts of packaging. Companies that sign the covenant develop

plans to reduce the impacts of their packaging.

The National Packaging Covenant Council with membership from industry and

governments has overall responsibility for the implementation and management

of the covenant. The department provides secretariat support and administration

services for the covenant. In 2005–06 the Natural Heritage Trust contributed

$116 875 toward administration and has committed funding for a further two

years.

The National Packaging Covenant commenced in 1999 and by 2005 had over

600 signatories. After extensive review in 2004 the covenant was strengthened and

renewed for a further fi ve years commencing in July 2005. The revised covenant

commits signatories to new performance targets, including:

• a national recycling target of 65 per cent for packaging by the end of 2010

• no new packaging waste (above 2003 levels) going to landfi ll

• a national recycling rate of 25 per cent for materials that are currently not

recycled.

Sector representation in the National Packaging Covenant

Industry associations 4%

Community organisations <1%

Brand owners 71%

Packaging manufacturers 13%

Local governments, groups and associations 4%

Raw material suppliers 3%

Waste managers <1%

Governments 2%

Wholesalers and retailers 3%

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Signatories are now required to provide data against the key performance targets

and for the fi rst time this will allow national data to be generated on packaging

waste and recycling. This will allow determination to be made of whether the

desired outcomes are being delivered by the covenant.

The National Packaging Covenant is underpinned by the National Environment

Protection (Used Packaging Materials) Measure. Under this measure governments

agree to require brand owners who are not covenant signatories to take back and

recycle a percentage of their packaging products. The covenant council is aiming

to increase recycling and reduce packaging by focusing on retrieving beverage

containers from pubs, clubs and events and ensuring they are recycled.

In July 2006, 423 signatories had either re-signed or were new signatories to

the covenant. All sectors of the packaging supply chain and governments are

represented with the highest number of signatories being brand owners

(refer to chart on page 153).

Plastic bags

A 2002 study estimated

that 50 to 80 million plastic

bags end up as litter in

Australia each year. They

can harm aquatic and

terrestrial animals. In 2002

the Environment Protection

and Heritage Council asked

the retail industry and

the community to work

together to cut plastic bag

litter by 75 per cent by

the end of 2004. Retailers

responded by adopting

targets in a code of practice for reducing the use of single use, light weight plastic

shopping bags, including a 25 per cent reduction by code of practice signatories in

the use of plastic bags by the end of 2004 and a 50 per cent reduction by the end

of 2005. Reduced household consumption of such bags over time was expected to

lead to a reduction of plastic bag litter.

The department is working with retailers to develop a new voluntary arrangement

to reduce plastic bag litter following the expiry of the 2003–2005 Australian

Retailers Association Code of Practice for the Management of Plastic Bags. The

department is also working with the states and territories to examine the various

options available to the Environment Protection and Heritage Council to regulate

Many plastic bags end up as litter and fi nd their way into waterways. The department works with industry and the community to reduce the environmental impact of plastic bags and other waste.

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plastic bags should voluntary measures be assessed as inadequate. This year the

department provided $50 000 toward the development of a cost-benefi t analysis

on these options.

During 2005–06 the department supported educational efforts about plastic bags,

and provided $158 000 from the Natural Heritage Trust to fund a campaign aimed

at small business. This campaign was run in partnership with Clean Up Australia

and the Australian Retailers Association (NSW), and included the creation of a

website (www.noplasticbags.org.au) and hotline.

Water effi ciency labelling

On 18 February 2005 the parliament passed the Water Effi ciency Labelling and

Standards Act 2005, which establishes the national Water Effi ciency Labelling and

Standards Scheme. The scheme came into operation on 1 July 2005 on a voluntary

basis and became compulsory from 1 July 2006.

The scheme encourages industry to produce water effi cient appliances in order

to conserve national water supplies particularly in urban areas. The scheme

requires seven products to be rated and labelled for their water effi ciency. These

are showers, dishwashers, clothes washing machines, lavatory equipment, tap

equipment, urinal equipment and fl ow controllers. Consumers will be able to save

water by selecting appliances based on their water effi ciency rating.

The department administers the Act and manages all aspects of the scheme

including product registrations, inspections and compliance. Work is under way

in all these areas. Since 1 July 2005 the department has registered 4 000 products

under the scheme.

The scheme will be supported by complementary legislation enacted by all states

and territories. Complementary legislation has been enacted in New South Wales,

Victoria, Tasmania and the Australian Capital Territory. Queensland and Western

Australia are in the fi nal stages of enacting their legislation and South Australia and

the Northern Territory are preparing legislation.

More information on the operation of the Water Effi ciency Labelling and

Standards Act 2005 is available in the second volume of this set of annual reports.

Hazardous substances regulation and management

The department is involved in a range of Australian Government initiatives

to minimise the environmental and health impacts of hazardous substances.

Internationally the department represents Australia’s interests in the development

of agreements designed to control hazardous chemicals. The department is

the lead Australian agency on the Stockholm Convention on Persistent Organic

Pollutants, the Rotterdam Convention on the Prior Informed Consent Procedure

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for Certain Hazardous Chemicals and Pesticides in International Trade, and the

Strategic Approach to International Chemicals Management.

Within Australia the department works through the Environment Protection and

Heritage Council to develop nationally applicable guidelines and standards for

hazardous chemicals in consultation with the states and territories, industry and

community groups.

Hazardous waste

The department administers the Hazardous Waste (Regulation of Exports and

Imports) Act 1989 which implements Australia’s obligations under the Convention

on the Control of the Transboundary Movements of Hazardous Wastes and Their

Disposal (the Basel Convention).

The Act permits the import, export and transit of hazardous wastes under certain

conditions, including the environmentally sound management of the waste to

protect both the environment and human health. Compliance and education are

important aspects of administering the Act.

In 2005–06 37 permit applications were processed (22 export, 11 import and

one transit), and 20 permits were granted, with one application refused and two

withdrawn.

The defi nition of ‘hazardous waste’ is often a highly complex issue. The

department developed criteria for used electronic equipment to determine

when it is hazardous waste. In 2005 the department surveyed companies using

the criteria to see how the criteria were being implemented and if revision was

required.

The survey indicated that the larger and more established companies were in

compliance with the criteria, primarily because the criteria were similar to their

own in-house operating procedures. Smaller companies (often sole traders), while

believing they were in compliance, often did not have the physical infrastructure

(e.g. test equipment) required for complete compliance.

A notable feature this year arising from high metal prices overseas has been the

development of an illegal trade in the export of used lead acid batteries. Several

shipping containers of batteries have been seized in Sydney and Melbourne. The

seized containers were sent to two authorised facilities where the batteries were

broken to recover lead scrap which was used as a feed for production of refi ned

lead metal. Acid from the batteries was neutralised at a liquid waste disposal facility

while plastics were collected for recycling.

In order to improve understanding of the Act, the department has been

developing a new education strategy. The strategy targets specifi c audiences in

the private and government sectors. These include the waste sector industry,

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the freight forwarding and shipping industries, and the Australian Customs

Service. The strategy deals particularly with electronic equipment, used lead acid

batteries, and mobile phones, which are wastes that pose a signifi cant risk to the

environment and human health because of their toxic constituents.

More information on the operation of the Hazardous Waste (Regulation of

Exports and Imports) Act 1989 is available in the second volume of this set of

annual reports.

Computer waste

An estimated 1.6 million computers are thrown away each year, most of them into

landfi ll. Computers contain many valuable products which can be salvaged through

recycling, but they also contain some chemicals and hazardous substances such

as lead, mercury and cadmium, most of which are not recovered in the recycling

process. This year a roundtable meeting of governments and industry, chaired by

the Minister for the Environment and Heritage, agreed on a key set of guidelines to

develop a computer recycling scheme. Industry is currently developing a national

programme to take back computer waste within Australia.

Persistent organic pollutants

Persistent organic pollutants are chemicals that remain intact in the environment

for long periods, become widely distributed geographically, accumulate in the fatty

tissue of living organisms and are toxic to humans and wildlife.

Australia has obligations under the Stockholm Convention on Persistent Organic

Pollutants, which it ratifi ed on 20 May 2004, to restrict, reduce or eliminate the

release of the 12 chemicals listed as persistent organic pollutants.

This year the department fi nalised a national implementation plan that sets out

how Australia will meet its obligations under the Stockholm Convention. The plan

identifi es actions Australia will take to reduce and eliminate persistent organic

pollutants. The National Strategy for the Management of Scheduled Waste, an

agreement of more than 10 years standing between the Australian Government,

states and territories, already provides for the safe management and disposal of

a number of persistent organic pollutants, including polychlorinated biphenyls,

hexachlorobenzene and organochlorine pesticides.

The department established the National Dioxins Programme in 2001, which

funded research to inform Australia’s policy response to address dioxins—one of

the 12 chemicals listed as persistent organic pollutants. The department released

the National Action Plan for Addressing Dioxins for public comment on 1 July 2005.

Fourteen submissions were received and were mostly of a minor nature. The

Environment Protection and Heritage Council adopted the National Action Plan at

its meeting in October 2005.

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During the year the department funded additional research to determine the

extent to which dioxins are formed in bushfi res. A report is being fi nalised and

results are expected later in the year.

In November 2005 Australia participated in the fi rst meeting of the Persistent

Organic Pollutants Review Committee in Geneva, which assessed proposals to

include fi ve new chemicals on the Stockholm Convention. A decision will be made

in November 2006. Australia also participated in a meeting in December 2005

of an expert group which is developing guidelines for reducing emissions of

persistent organic pollutants including dioxins. The expert group will meet again

in December 2006 to fi nalise the guidelines.

Some countries are seeking to include brominated fl ame retardants in the

Stockholm Convention. The department funded three studies to investigate the

levels of these chemicals in the Australian population, in indoor air, and in aquatic

sediments. The results are expected in the second half of 2006. The research

will contribute to Australia’s policy position on these chemicals and to risk

assessments being undertaken by the National Industrial Chemicals Notifi cation

and Assessment Scheme.

The department led the Australian delegation to the 2nd meeting of the conference

of the parties to the convention, held in Geneva, Switzerland from

1–5 May 2006. The parties agreed to enhance synergies with the Basel and

Rotterdam conventions by exploring how secretariat functions could be shared,

agreed to continue the development of a non-compliance mechanism for the

convention, and agreed to develop a process to evaluate the effectiveness of the

convention.

Informed consent to imports

In February 2004 the Rotterdam Convention on the Prior Informed Consent

Procedure for Certain Hazardous Chemicals and Pesticides in International Trade

came into force. The procedure set up under this convention enables countries

to decide whether to allow the import of chemicals listed under the convention.

Australia became a party to the convention on 18 August 2004.

The department led the delegation to the 2nd meeting of the conference of the

parties, held in Rome, Italy from 26–30 September 2005. The conference made

decisions on operational issues necessary for the functioning of the convention.

The department also participated in the 2nd meeting of the convention’s Chemical

Review Committee, held in Geneva, Switzerland from 13–17 February 2006. The

committee will seek agreement to list Australia’s nomination of chrysotile asbestos

under the convention at the next meeting of the conference of the parties in

October 2006.

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Strategic international approach to chemicals

In 2002 the World Summit on Sustainable Development urged international

organisations to cooperate in improving international chemicals management.

The Governing Council of the United Nations Environment Programme

in February 2003 began developing a Strategic Approach to International

Chemicals Management. The purpose of the strategic approach is to ensure that

internationally chemicals are used and produced in ways that mitigate signifi cant

adverse impacts on human health and the environment by the year 2020.

The department led the delegation to the International Conference on Chemicals

Management in Dubai, United Arab Emirates from 4–6 February 2006. Final

agreement was reached on the strategic approach, which focuses on building

national governance for chemicals management in developing countries. The Global

Ministerial Environment Forum adopted the strategic approach in February 2006.

National risk management framework

The department continued to work with the states and territories to develop the

National Framework for Chemicals Environmental Management (NChEM). The

framework aims to provide a nationally consistent approach to regulating and

managing the environmental impacts of chemicals, including ensuring consistent

implementation of chemical assessment decisions. Other aims are to address

current gaps in environmental chemicals management and to simplify chemicals

management in Australia. In June 2006, the Environment Protection and Heritage

Council agreed to the release of a public discussion paper on NChEM. The council

expects to fi nalise the framework in 2007.

National approach to industrial residues

While there are benefi ts from the reuse and recycling of industrial residues in

land management applications, there is also potential for harm to human health

and the environment if these materials are used inappropriately. The department

has been developing a national approach to assessing the benefi cial reuse

of industrial residues in land management applications with the release of a

public discussion paper in September 2005. The national approach will increase

environment protection by providing nationally consistent criteria and information

that environment agencies can use to assess proposals for the reuse of industrial

residues. Based on the comments received in response to the discussion paper,

the national approach will be provided to the Environment Protection and

Heritage Council for approval in the second half of 2006.

Biotechnology risk assessments

The Gene Technology Regulator, within the Department of Health and Ageing,

regulates genetically modifi ed organisms under the Gene Technology Act 2000.

The Act requires that the regulator seek advice from the Minister for the

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Environment and Heritage on each intentional release of a genetically modifi ed

organism into the environment. The Department of the Environment and Heritage

prepares advice for the regulator on environmental issues to be considered when

preparing the risk assessment and risk management plan, and then on the draft

plan once prepared.

In 2005–06 the Gene Technology Regulator sought the minister’s advice on 12

occasions in relation to nine licence applications. The minister provided advice

to the regulator on all occasions. As a result environmental risks were adequately

assessed and managed by the regulator for each licence granted.

The department also prepares risk assessments of genetically modifi ed organisms

and other biological agents for the Australian Pesticides and Veterinary Medicines

Authority. In 2005–06 the department assessed two applications to ensure there

were no unintended adverse environmental effects as a result of these releases.

The department participates, as a member agency of Biotechnology Australia,

in the implementation of the National Biotechnology Strategy, and supports the

minister’s involvement in the Commonwealth Biotechnology Ministerial Council.

A number of research projects and workshops were funded under the strategy

with the aim of improving basic knowledge of environmental risks associated with

genetically modifi ed organisms. The department received $500 000 over a four-

year period for this work, including:

• work on future genetically modifi ed organisms and their environmental

impacts

• a survey of feral cotton in northern Queensland

• a study of the risks associated with the use of new and emerging technologies

• a review of viral vectors and viral genes used in genetically modifi ed organisms,

and their impacts

• modeling the environmental impacts of genetically modifi ed versus non-

genetically modifi ed, herbicide-tolerant canola

• work on the persistence and effects on soil organisms of Bt-toxin (insecticide)

from genetically modifi ed cotton

• research into viral recombination and its environmental effects.

Two additional studies were commissioned this year to examine the potential

environmental risks of genetically modifi ed organisms that have been developed

overseas being brought into Australia unintentionally or illegally. This research will

assist with the development of policies to manage the risk of genetically modifi ed

organisms imported into Australia unintentionally.

The department also participated in the current reviews of the Gene Technology

Act 2000 and its Regulations, ensuring that the level of environmental protection

afforded by the regulatory system has been fully considered in the review

processes.

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Chemical risk assessments

The department provides other Australian Government regulators with advice on

the environmental impacts of new industrial, agricultural and veterinary chemicals.

Agricultural and veterinary chemicals

The Australian Pesticides and Veterinary Medicines Authority regulates agricultural

and veterinary chemicals. One test for registering a new chemical product is

whether the product is likely to harm the environment when used according to its

instructions. The authority seeks the department’s advice when applying this test.

The authority provides funding in return for this service under an agreement with

the department.

In 2005–06 the department received $1 million under this agreement in return for

carrying out 102 environmental risk assessments for new uses of agricultural and

veterinary chemicals.

As part of the Australian Pesticides and Veterinary Medicines Authority’s ongoing

review of existing chemicals, the department prepared a range of environmental

risk assessments for paraquat, diuron and 2,4-D. These assessments and

the department’s recommendations were forwarded to the authority for

consideration. Chemicals which have reached the public comment phase of the

authority’s process included 2,4-D volatile esters and diuron.

Industrial chemicals

The National Industrial Chemicals Notifi cation and Assessment Scheme regulates

industrial chemicals. The department assesses the potential environmental impact

of new industrial chemicals on behalf of the scheme. The scheme provides funding

in return for this service under an agreement with the department. In 2005–06

the department received $690 000 under this agreement in return for carrying out

270 environmental risk assessments for new industrial chemicals and the priority

review programme. The number of new chemicals assessed continues a long-term

trend of increasing numbers of industrial chemical assessments being undertaken

by the department.

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Supervision of uranium mining

The Supervising Scientist is a statutory offi ce under the Environment Protection

(Alligator Rivers Region) Act 1978 and the occupant of the offi ce is the head of the

Supervising Scientist Division within the department. The Supervising Scientist

Division supervises uranium mining in the Alligator Rivers Region, which includes

Kakadu National Park. The department works closely with the Department of

Industry, Tourism and Resources and the Northern Territory Department of

Primary Industry, Fisheries and Mines in fulfi lling this role.

The department has specifi c roles and responsibilities under the Act to protect

the environment of the Alligator Rivers Region from the potential impacts of

uranium mining. The roles and responsibilities include environmental monitoring,

supervision, and research into the impact of uranium mining.

The Alligator Rivers Region, some 220 kilometres east of Darwin, includes Kakadu

National Park. The region contains a number of former, current and potential

uranium mines, including:

• Ranger, which is currently being mined

• Nabarlek, where mining has ceased and rehabilitation is under way

• Jabiluka, which has been in long-term care and maintenance since

December 2003

• Koongarra, a potential mine that is the subject of discussions between the

traditional Aboriginal owners and the mining company, Koongarra Pty Ltd.

None of these sites are part of Kakadu National Park. A number of smaller uranium

deposits were mined during the 1950s and 1960s in what is now the southern

portion of Kakadu National Park.

The Supervising Scientist Division continued to conduct research, monitoring,

supervision and audit activities during 2005–06. During the year the monitoring

programme was enhanced, with the introduction of continuous monitoring of

water quality parameters in Magela Creek adjacent to the Ranger mine. A fi rst stage

trial of in situ biological monitoring was also successfully undertaken. Second stage

testing of this methodology will be carried out during the 2006–07 wet season. If

successful, the current resource-intensive creekside monitoring programme will be

replaced in subsequent years with this streamlined procedure.

Work to date indicates that the environment of the Alligator Rivers Region remains

protected from the impacts of uranium mining.

Detailed performance results are provided in the Supervising Scientist’s annual

report on the operation of the Environment Protection (Alligator Rivers Region)

Act 1978 at www.deh.gov.au/about/publications/annual-report/.

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Results for performance indicators

Performance indicator 2005–06 result

Environmental assessments

Number of actions affecting matters protected by Part 3 of the Environment Protection and Biodiversity Conservation Act 1999 whose adverse environmental impacts have been addressed

270 matters protected under Part 3 of the Environment Protection and Biodiversity Conservation Act 1999 were afforded protection through the referral, assessment and approval process. This is an increase of 77 matters from the previous year

Air pollution

Number of occasions where concentrations of key air pollutants exceeded the standards for ambient air quality in major urban areas

In accordance with the Ambient Air Quality National Environment Protection Measure, data reporting is on a calendar year basis. Current data is for 2004 and is sourced from the National Environment Protection Council annual report for 2004–05

No exceedences were experienced in urban areas for 4 (carbon monoxide, sulfur dioxide, lead and nitrogen dioxide) of the 6 key pollutants

The ozone standards were exceeded occasionally in Vic, Qld and WA, while NSW (Sydney) experienced widespread exceedences of the standards

There were widespread exceedences of the particle standard in NSW and Vic, and occasional exceedences in WA, SA and ACT. A signifi cant number of exceedences of the particle standard were experienced in Wagga Wagga (NSW) and Launceston (Tas)

Exceedences of the sulfur dioxide (1 hour average) standard were signifi cant in 2 regional areas, Mount Isa in Qld and Port Pirie in SA. The lead standard was also exceeded at Port Pirie

National Environment Protection Measures for air quality are implemented and reviewed to provide world best-practice in the protection of community health

The department contributed to the review of the National Environment Protection (Ambient Air Quality) Measure in conjunction with the states and territories. The review commenced in April 2005 and is scheduled to conclude in 2008

Australian Fuel Quality Standards are implemented, and further harmonised with international standards

Diesel sulfur standard was tightened to 50 mg/kg and maximum density level reduced to 850 kg/m3

Standards for petrol benzene and diesel polycyclic aromatic hydrocarbon levels were introduced

1 067 fuel samples were taken and 500 fuel supply sites tested. 6.7% of samples were non-compliant (note: does not include non-compliance with ethanol information standard). Details are contained in the Fuel Quality Standards Act 2000 annual report in volume 2, legislation annual reports

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Performance indicator 2005–06 result

Hazardous substances and new organisms

Number of environmental risk assessments of (i) industrial chemicals and (ii) agricultural pesticides and veterinary medicines completed

(i) 270 industrial chemicals assessed

(ii) 102 agricultural pesticides or veterinary medicines assessed

Number of genetically modifi ed organism release proposals for which environmental risk advice was prepared

12 advices on 9 applications

Used oil

Number of used oil collection facilities under the Product Stewardship for Oil Programme

Over 850 (more than 80 additional facilities funded in 2005–06)

Area serviced by collection facilities Urban and regional areas are well serviced and the 2005–06 grants have also extended used oil collection facilities into remote and Indigenous areas across Australia

Ozone depleting substances

Mass of imports compared to Montreal Protocol limits

All phase-out obligations were met or exceeded

HCFC consumption 152 ozone-depleting potential tonnes compared to Montreal Protocol limit of 357 ozone-depleting potential tonnes

Methyl bromide consumption 119 metric tonnes compared to Montreal Protocol limit of 147 metric tonnes. All other consumption was nil

Packaging waste

Number of company signatories to the National Packaging Covenant

423 as of July 2006

Agreement is reached by 2006 to phase out plastic bags by 2008

Draft phase-out agreement negotiated, considered by Environment Protection and Heritage Council in October 2005

Department is negotiating an alternative voluntary option with retailers

Department is working with states and territories to develop legislative options for consideration by ministers should voluntary approach be assessed as unlikely to succeed

Department is contributing to a regulatory impact statement for consideration by ministers. This includes providing $50 000 towards development of cost-benefi t analysis

Ministers considered options at June meeting of Environment Protection and Heritage Council

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Performance indicator 2005–06 result

Uranium mining

Percentage measured as (i) median and (ii) maximum annual concentrations of the limit of uranium concentrations allowed downstream of the Ranger mine (6 micrograms per litre)

[The limit value was recalculated from 5.8 micrograms per litre to 6 micrograms per litre. The fi gure of 5.8 incorrectly appears in the Portfolio Budget Statements]

(i) 0.055 µg/l or 0.93% of limit

(ii) 0.153 µg/l or 2.55% of limit

Number of times limit exceeded None

Ozone Protection and Synthetic Greenhouse Gas Account (administered item)

The Australian Government’s obligations under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the Act) are met, including effective administration of the Act, management of the Halon Bank and programmes to phase out ozone depleting substances and minimise emissions of ozone depleting substances and synthetic greenhouse gas

8.9 tonnes of halon 1211 and 1.6 tonnes of halon 1301 were collected from the community for safe disposal at the National Halon Bank

No signifi cant losses were recorded from stored halon at the National Halon Bank

Licence and enforcement actions are undertaken within statutory timeframes

100%. 568 applications assessed within statutory timeframes

Supplies of essential use halon are provided within the requested timeframe

100%. 9 requests for halon met within customer’s timeframe

Number of facility inspections meets local ordinance requirements

3. Inspections covered water quality and effl uent; air quality and stack emissions; occupational health and safety and industrial safety

Launceston’s air quality (administered item)

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Commonwealth Environment Research Facilities (CERF) (administered item)

The extent to which funded projects successfully contribute to furthering Australia’s understanding of critical areas of environment research

19 transition projects were funded under the Marine and Tropical Sciences Research Facility which will contribute signifi cantly to understanding of how to conserve and manage north Queensland’s environmental assets within the Great Barrier Reef, tropical rainforests and the Torres Strait. Many of these projects will be further developed under the fi rst annual research plan in 2006–07

4 research hubs were announced with grants totaling $23.5 million. Research will commence in 2006–07

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Performance indicator 2005–06 result

Commonwealth Environment Research Facilities (CERF) (administered item) continued ...

Percentage of projects delivered to a satisfactory standard in accordance with the terms and conditions of the project contract (Target: 100%)

95% under Marine and Tropical Science Research Facility Transition Projects

Number of projects funded 19 under Marine and Tropical Science Research Facility Transition Projects

Sub-output 1.5.1—Environmental assessments

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(a)

100%

Percentage of statutory timeframes triggered that are met (Target: >90%)(b)

85% of statutory timeframes were met for decision-making in the referral, assessment and approval process. Details and reasons are contained in the EPBC Act annual report volume 2, legislation annual reports

Note: A review of EPBC Act statistics undertaken after the 2004–05 reporting period revealed that 90% of statutory timeframes were met, rather than 83% as reported in the 2004–05 annual report

Sub-output 1.5.2—Pollution prevention—Air quality

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

90%. Some milestones were not met under the CycleConnect Programme due to delays in infrastructure projects

Sub-output 1.5.2—Pollution prevention—Fuel quality

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)(a)

100%

Sub-output 1.5.2—Pollution prevention—Used oil

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Sub-output 1.5.2—Pollution prevention—Packaging

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

90%

Sub-output 1.5.2—Pollution prevention—Hazardous waste

Percentage of statutory timeframes triggered that are met (Target: >90%)

>90%

(a) Applies to provision of grants programmes funded entirely from the Department of the Environment and Heritage appropriations for the output (i.e. not those marked administered items).

(b) Applies to areas that administer legislation, for example reporting timeframes triggered under the Environment Protection and Biodiversity Conservation Act 1999.

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Resources

Departmental outputs Budget prices $’000

Actual expenses $’000

Sub-output: 1.5.1 Environmental assessments

Sub-output: 1.5.2 Pollution prevention strategies

Sub-output: 1.5.3 Supervision of uranium mines

14 202

40 047

8 630

14 912

40 383

9 306

Total (Output 1.5: Response to the impacts of human settlements) 62 879 64 601

Administered items

Commonwealth Environment Research Facilities

Ozone Protection and Synthetic Greenhouse Gas Account

Bio Fuels – Ministerial Council on Energy Additional and Australian Government Task Force

National Environment Protection Council

Water Effi ciency Labelling Scheme

Australian Wildlife Hospital(a)

Launceston’s air quality

2 885

1 600

355

429

582

2 500

200

2 815

1 294

356

429

245

2 500

200

Total (Administered) 8 551 7 839

(a) Results appear in the chapter on Land and Inland Waters on page 46.

Other annual reports providing information on this output

Included in the second volume of this set of annual reports are the annual reports on the operation of the following legislation administered by the department:

Environment Protection and Biodiversity Conservation Act 1999

Product Stewardship (Oil) Act 2000

Water Effi ciency and Labelling Standards Act 2005

Hazardous Waste (Regulation of Exports and Imports) Act 1989

Ozone Protection and Synthetic Greenhouse Gas Management Act 1989

Fuel Quality Standards Act 2000

Other relevant reports are:

Annual report on the operation of the National Environment Protection Council Act 1994 at www.ephc.gov.au/nepc/annual_reports.html

Annual report of the Supervising Scientist at www.deh.gov.au/about/publications/annual-report/

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OUTCOME 2—ANTARCTICA

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Antarctica

The Department of the Environment and Heritage is advancing Australia’s

interests in Antarctica by carrying out Antarctic and Southern Ocean programmes,

participating in international forums, and conducting scientifi c research.

Main responsibilities for this outcome

Output 2.1: Antarctic policy

• Infl uence the Antarctic Treaty System

• Protect the Antarctic and Southern Ocean

environment

• Negotiate international whaling matters

• Administer the Australian Antarctic Territory and

the Territory of Heard Island and MacDonald

IslandsAustralian

Antarctic Division

Output 2.2: Antarctic science

• Carry out research in Antarctica and the Southern

Ocean

• Provide data to Australian and international

institutions and support them to undertake

research

Objectives

• Maintain the Antarctic Treaty System, to enhance Australia’s infl uence in it and

enhance international protection for whales and seabirds

• Protect the environment of Antarctica, the Southern Ocean and the Territory of

Heard Island and McDonald Islands including its marine living resources

• Improve understanding of Antarctica’s role in the global climate system

• Support practical and signifi cant Antarctic scientifi c research

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Results 2005–06

• Australia continued efforts to pursue a permanent global ban on

commercial whaling and worldwide protection for whales at the 58th

annual International Whaling Commission meeting. Australia helped to

defeat pro-whaling countries’ proposals to remove consideration of small

cetaceans from the agenda, to introduce a mechanism for secret ballots,

to increase commercial ‘coastal’ whaling, and to abolish the Southern

Ocean Whale Sanctuary.

• At the meeting the Australian delegation also successfully defended

Australia’s resolution, put at last year’s meeting, to condemn ‘scientifi c

whaling’. Australia’s defence was supported by the Australian Antarctic

Division’s scientifi c contributions to developing non-lethal research

methods, and highlights the fl aws in ‘scientifi c’ whaling.

• Results from research conducted under Australia’s fi ve-year Antarctic

research programme (Antarctic Science Strategy 2004–2009) are helping

scientists to better understand the Southern Ocean ecosystem and the

effects upon it of a changing climate. Extensive populations of krill, an

important food source for whales, seals and seabirds, were encountered

throughout the south-west Indian Ocean sector during a major

multidisciplinary survey.

• Australia’s new blue-ice runway in Antarctica is on track for the fi rst

regular intercontinental fl ights in 2007. The airlink between Hobart and

Antarctica will make research more effi cient by enabling scientists to

spend less time travelling by ship and more time conducting research.

• The Australian Antarctic Division established a new set of quarantine

principles to protect Antarctica and the subantarctic islands from the

threat of introduced alien species of plants and animals and from disease.

Antarctic policy

The department’s Australian Antarctic Division advances Australia’s policy interests

in Antarctica by supporting and participating in the Antarctic Treaty system,

including taking an active role in forums of the Antarctic Treaty Consultative

Meeting, the Committee for Environmental Protection, the Commission for

the Conservation of Antarctic Marine Living Resources (fi shing and ecosystem

management), the International Whaling Commission, and the Agreement on

Albatrosses and Petrels (seabird conservation).

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The division administers the Australian Antarctic Territory, which covers 42 per

cent of Antarctica, as well as the Territory of Heard Island and McDonald Islands.

Antarctic Treaty System

The Australian Government considers that support for the Antarctic Treaty system

is the best way to advance Australia’s Antarctic policy interests. The Antarctic Treaty

system has grown into a wide-ranging regime for managing Antarctica, with a

particular emphasis on environmental protection. It also provides for scientifi c and

logistic cooperation. Since 1961, 45 countries have become parties to the treaty.

In 2005–06 the department’s Australian Antarctic Division continued to represent

Australia’s interests at Antarctic Treaty meetings. The most signifi cant forums are

the Antarctic Treaty Consultative Meeting, the annual meeting of the Committee

for Environmental Protection and meetings under the Convention for the

Conservation of Antarctic Marine Living Resources.

The Committee for Environmental Protection is responsible for developing the

regulatory framework established by the Protocol on Environmental Protection.

The director of the Australian Antarctic Division was chair of the committee from

2002 until June 2006.

Australian Antarctic Territory and stations

#*

#*

#*

#*

Heard Island and McDonald Islands

Davis Station

ANTARCTICA

StationsIce shelfLandAustralian Antarctic Territory

Mawson Station

Casey Station

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Improvements to tourism management

While Antarctic tourism is a relatively small component of the industry worldwide,

the number and diversity of operations is increasing and each year more people

visit Antarctica. Tourist numbers have doubled over the past decade and the

Australian Government is concerned about possible environmental impacts.

In February 2006, the division participated in an inspection of popular tourist sites

in the Antarctic Peninsula. This follows from the June 2005 Stockholm Antarctic

Treaty meetings where it was agreed to continue work on the Australian Antarctic

Division’s previous proposals for accrediting tour operators. Since those meetings,

the division’s draft proposal for improving the management of Antarctic tourism

was endorsed at an international meeting of Antarctic tourism operators.

At its annual meeting held in Edinburgh in June 2006, the Committee for

Environmental Protection endorsed new guidelines protecting sites in Antarctica

that are subject to tourism. The guidelines were adopted at the 29th Antarctic

Treaty Consultative Meeting also held in Edinburgh from 8–19 June 2006.

The Committee for Environmental Protection also endorsed the Australian

Antarctic Division management plans for the Clark Peninsula and Hawker Island,

which provide for the management of two environmentally sensitive areas within

Antarctica.

Protecting the Antarctic environment

The Antarctic Treaty’s Protocol on Environmental Protection requires Australia and

other signatories to minimise the environmental impacts of activities in Antarctica.

The Australian Antarctic Division implements Australia’s environment protection

programmes and legislation in Antarctica.

Environment protection laws

The Australian Government is scrupulous in minimising the environmental

impacts of Antarctic operations, including cumulative impacts. This includes

assessing possible impacts under the Antarctic Treaty (Environment Protection)

Act 1980 and the Environment Protection and Biodiversity Conservation Act 1999.

Australia has quarantine procedures in place to protect Antarctica and the

subantarctic islands from introduced species. The Australian Antarctic Division

seeks to develop and promulgate these procedures through the Antarctic Treaty

system. Australia presented a working paper on quarantine to the 2005 meeting

of the Committee for Environmental Protection and for the 2006 meeting the

Australian Antarctic Division prepared several working and information papers,

including a management plan to complete a suite of protected areas covering the

three breeding colonies of endangered southern giant petrels in the Australian

Antarctic Territory.

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The Australian Antarctic Division continues to be active in the Committee on

Environmental Protection Steering Group on ‘CEP Futures’, which is intended to

set the processes and focus of the committee’s work for the next 15 years.

Antarctic Approvals Online project

Each year the Australian Antarctic Division receives about 160 research applications

from scientists and another 30 or so applications to conduct other activities, such

as tourism, in Antarctica. The Australian Government has a range of laws and

processes to protect the Antarctic environment and people working in Antarctica.

The Australian Antarctic Division has invested $500 000 in the Antarctic Approvals

Online project. This website has streamlined the applications process, saving time

and costs for applicants as well as the division.

Cape Denison site and Mawson’s huts

Cape Denison site and Mawson’s huts: Australia’s most signifi cant Antarctic

heritage site, Cape Denison, contains the national heritage listed Mawson’s huts.

Mawson’s huts rank alongside those of Scott, Amundsen and Shackleton as icons

of the ‘heroic age’ of Antarctic exploration.

The Australian Antarctic Division manages the Mawson’s huts site. In May 2006

the Australian Government provided a grant of $320 000 to the Mawson’s Huts

Foundation for conservation work at Cape Denison. This work will be carried out

in the summer of 2006–07. The Australian Antarctic Division will continue to work

closely with the Mawson’s Huts Foundation to manage this important conservation

work and raise awareness of the site.

Environmental management system

The Australian Antarctic Division’s environmental management system provides a

transparent way to identify and manage the environmentally signifi cant aspects of

Antarctic activities. The Australian Antarctic Division was the fi rst national operator

among Antarctic Treaty parties to have its environmental management system

certifi ed to the international ISO 14001 standard.

Renewable energy at Mawson

The Australian Antarctic Division has installed two wind turbines at Mawson

station. In suitable wind conditions the turbines contribute approximately

90 per cent of the station’s energy needs, so that fuel use in 2005–06 was

approximately 30 per cent less than 2002 levels. The next stage in this project is to

install equipment to use excess wind energy to generate hydrogen. This is planned

for the 2006–07 Antarctic summer.

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Clean-up operations

The Australian Antarctic Division has embarked upon an extensive clean-up

campaign to remove 30-year-old waste from disused tip sites at Australia’s

Antarctic stations, and to remediate the effects of fuel spills that have occurred.

Approximately 1 000 tonnes of excavated material remains in a bunded stockpile at

Thala Valley near Casey station, pending fi nal disposal.

Research on the effects of the waste site on the marine environment has been

undertaken, and ongoing research and monitoring will evaluate the remediation

work. The results of this research will be shared with Australia’s Antarctic Treaty

partners in a major clean-up workshop to be held in Hobart in 2007.

The Australian Antarctic Division began planning for the removal of the old Davis

station, which was abandoned in the mid-1990s. The old station is now structurally

unsound, contains asbestos cement sheeting, has unstable foundations and is

releasing lead-based paint, insulation and other materials into the environment.

Approvals for the work were received under the Antarctic Treaty (Environment

Protection) Act 1980 and Environment Protection and Biodiversity Conservation

Act 1999.

Protecting the Southern Ocean

The Southern Ocean has abundant wildlife but fi shing and whaling are pressure

points. Since 2002 the Australian Government has pushed for improvements

to fi sheries management in the Southern Ocean under the Convention on the

Conservation of Antarctic Marine Living Resources.

Under the convention the 24-member international Commission for the

Conservation of Antarctic Marine Living Resources (often referred to as CCAMLR)

is responsible for fi sheries in much of the Southern Ocean. Australia is a founding

member of the commission. The director of the Australian Antarctic Division leads

Australian delegations to the commission, which meets annually.

In recent years highly organised illegal, unregulated and unreported fi shing for

Patagonian toothfi sh in the Southern Ocean has heavily depleted several stocks.

Most fi shers use longlines and make no attempt to avoid seabird bycatch. Such

fi shing is killing tens of thousands of albatrosses and petrels each year, and has

brought some seabird populations to the brink of extinction.

The Australian Antarctic Division works with other departments and agencies to

develop Australia’s response to illegal, unregulated and unreported fi shing and

provides support to the Australian Government’s armed patrols in the Southern

Ocean. Partly as a result of the division’s efforts, Australia has a strong record

of action against illegal fi shing in the Southern Ocean, particularly in Australian

waters off the Territory of Heard Island and McDonald Islands.

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Monitoring fi shing

The Australian Antarctic Division continued to play a key role in actions aimed

at combating illegal, unregulated and unreported fi shing, and is working with

other government departments in developing and implementing the Australian

Government’s position. While illegal fi shing within subantarctic regions of

Australia’s Economic Exclusion Zone has reduced dramatically, the threat from

illegal, unregulated and unreported fi shing remains and continues unchecked on

the adjacent high seas, seriously threatening conservation goals.

Ecosystem-based management

The Australian Antarctic Division is active in research on the ecosystem approach

to management adopted by the Commission for the Conservation of Antarctic

Marine Living Resources (CCAMLR). In 2005–06 this involved further development

of the CCAMLR Ecosystem Monitoring System, developing ecosystem models and

surveying krill in the south-west Indian Ocean so that precautionary catch limits

can be set by CCAMLR.

Conservation of albatrosses

Albatrosses are one of the most threatened seabird groups in the world —a

total of 21 out of 24 species of albatross are considered threatened under

the World Conservation Union criteria. The Tasmanian Shy Albatross is

listed as vulnerable under the Environment Protection and Biodiversity

Conservation Act 1999.

The biggest threat facing albatross and other seabird populations is the

interaction with fi shing operations, particularly longline fi shing.

The department is helping to conserve albatross and other seabirds

by leading Australia’s

participation in the

Agreement on the

Conservation of Albatrosses

and Petrels, and supporting

projects to reduce the

impacts of longline fi shing.

A threat abatement plan

is in place under the

Environment Protection

and Biodiversity

Conservation Act 1999 for

incidental catch of seabirds

during longline fi shing.A Tasmanian shy albatross in fl ight. Photo: Mike Double

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Albatrosses and petrels

The Australian Antarctic Division leads Australian participation in the Agreement

on the Conservation of Albatrosses and Petrels. The agreement, which was

developed under the auspices of the Convention on the Conservation of Migratory

Species of Wild Animals, came into force on 1 February 2004.

Under the agreement Australia supports projects to reduce the impacts of longline

fi shing, and to tackle emergency situations where a particular species of albatross

or petrel is in rapid decline. Australia also supports the control and eradication of

non-native species threatening breeding colonies.

The Australian Antarctic Division has continued to lead the negotiations on

headquarters for the Agreement on the Conservation of Albatrosses and Petrels

secretariat. This is a key step toward establishing a permanent secretariat to

support the agreement. The Australian Antarctic Division currently supports the

interim secretariat. The division led discussions with the parties to the agreement

at the June 2006 meeting of the advisory committee, in the lead up to the meeting

of the parties in November 2006.

Heard Island and McDonald Islands Marine Reserve

The Australian Antarctic Division manages the Heard Island and McDonald Islands

Marine Reserve on behalf of the Director of National Parks. Management results for

2005–06 are reported in the annual report of the Director of National Parks

(see www.deh.gov.au/parks/publications).

International whaling negotiations

The International Whaling Commission has maintained a moratorium on

commercial whaling for nearly two decades. Australia opposes all commercial and

scientifi c whaling. Australia supports the needs of some subsistence cultures for

continued access to whaling and whale products to meet demonstrated traditional,

cultural and dietary needs.

It is Australian Government policy to work through the International Whaling

Commission to achieve a permanent international ban on commercial whaling,

and worldwide protection for all cetaceans.

The Australian Antarctic Division was responsible during 2005–06 for carrying out

the government’s whale protection policy through relevant international forums,

including the International Whaling Commission.

Moves to resume commercial whaling

The International Whaling Commission held its 58th annual meeting in Basseterre,

St Kitts and Nevis from 16–20 June 2006. The Australian delegation argued against

moves to reintroduce commercial whaling.

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Australia worked with like-minded parties to monitor the moratorium on

commercial whaling, maintain existing International Whaling Commission whale

sanctuaries and to ensure conservation of small cetaceans, such as dolphins, would

continue to be discussed by the International Whaling Commission.

Antarctic science

A core component of advancing Australia’s Antarctic interests is to carry out

scientifi c research in Antarctica and the Southern Ocean. The Australian Antarctic

Division undertakes research and provides data on physical, biological and human

sciences. This research contributes to Australia’s knowledge of global climate,

Southern Ocean ecosystems, adaptation by plants and animals to global change,

meteorology, and the impact of human activities in Antarctica.

Antarctica’s infl uence on climate

Antarctica infl uences the global climate because of its low temperatures,

circumpolar ocean and immense size. Antarctica’s vast ice sheets affect the fl ow

of heat in the oceans and atmosphere, the shape of the southern ozone hole, and

how much carbon dioxide the oceans absorb.

Climate change is beginning to cause large-scale changes to Antarctica’s ice sheets,

including the collapse of the Larsen B ice shelf in 2002. These changes could affect

major ocean currents and food webs.

The Australian Government

has a fi ve-year research

plan called the Antarctic

Science Strategy 2004–05

to 2008–09. One of the

four priorities is adding

to knowledge about

Antarctica’s infl uence on

the climate. The Australian

Antarctic Division works

closely with the Antarctic

Climate and Ecosystem

Cooperative Research

Centre and the Australian

Greenhouse Offi ce to carry out this research. The division also works closely

with the CSIRO Marine and Atmosphere Division’s Wealth from Oceans Flagship

programme.

An iceberg off Antarctica. Photo: Alison McMorrow

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Latest research on the Southern Ocean

The Australian Antarctic Division’s chartered research ship Aurora Australis

carried out a 10-week research voyage between January and March 2006.

The Baseline Research on Oceanography, Krill and the Environment—or BROKE-

West—voyage was led by the Australian Antarctic Division and the Antarctic

Climate and Ecosystem Cooperative Research Centre and covered more than

1.5 million square kilometres of the Southern Ocean off Australia’s Antarctic

Territory.

During the survey researchers found extensive krill populations—the main food

source for whales, seals and seabirds. The distribution and abundance of krill is

being matched to that of krill predators, and to other elements of the ecosystem

that are food for krill. This study is one of the most comprehensive marine

ecosystem analyses ever undertaken.

While most sectors of the survey area confi rm earlier fi ndings of cooler Antarctic

waters and less salinity, the easternmost line of the survey showed an increase

in both temperature and salinity. This is possibly due to a convergence of ocean

fronts and a movement of currents south. Researchers will undertake further

analysis over the coming year to determine why this has happened and what it

means for ecosystems in the region.

Researchers on the voyage also confi rmed the presence of a source of very deep

Antarctic waters—among the densest waters found on earth. These waters, known

as ‘bottom waters’, fi ll the abyssal ocean around Antarctica and are important in

carrying oxygen-rich waters and driving global deep ocean circulation.

Law Dome ice core project

Law Dome, 100 kilometres inland from Casey station, has been a focal point for

Australian glaciological research since the 1960s. Its ice sheet preserves a record

of the climate. In October 2004 scientists retrieved a 120-metre ice core from near

the summit. Preliminary analysis of the material indicates that the record covers

650 years. It will be used to validate recent reports of a 20 per cent decline in sea

ice over the past half-century and to extend this record back over past centuries.

Detailed analysis is proceeding at the Antarctic Climate and Ecosystem Cooperative

Research Centre.

Amery Ice Shelf

Research into the dynamics of heat transfer between the waters fl owing

underneath the Amery Ice Shelf (Prydz Bay) continued in 2005–06, with the

completion of two further bore holes made with a hot-water drill. The project is

part of a strong research focus into the factors affecting local climate conditions.

Both holes (722 and 603 metres deep, respectively) were instrumented with

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thermistors and upward-looking sonars to reveal details of the freeze-melt

interface and the crystal structure of re-forming marine ice. Samples from the sea

fl oor underneath the ice were extracted for examination of past glacial events.

Initial photographic analysis of the cavity beneath the ice reveals the presence of

Antarctic krill—an unexpected observation—and other invertebrates.

Also on the Amery Ice Shelf work is being conducted on a large block of ‘calving’

ice at the margin. Detailed observations are showing that rifting occurs faster

in summer than winter and occurs in short, sharp bursts followed by periods of

relative quiet. It is expected this block of ice will calve within the next few years into

a substantial iceberg. Observations are expected to continue for the next two years

with joint studies being undertaken by United States and Australian scientists.

The good atmospheric and weather conditions experienced during the 2005–06

Antarctic season allowed many observations of high altitude clouds to be made

by both lidar and radar. The status and prevalence of these high altitude clouds

is not well known in Antarctica and the division’s studies are in the forefront of

knowledge of this phenomenon. Changes in high altitude cloud abundance are

important indicators of environmental change.

Australian Antarctic Programme

Antarctic science provides direct benefi ts to Australians. Examples include more

reliable weather forecasts, the geological history of the Australian continent,

and new ways to contain and treat pollutants in cold environments. Support for

Antarctic research reinforces Australia’s infl uence in the Antarctic Treaty system.

Providing logistical support for researchers is one of the main responsibilities of

the Australian Antarctic Division. The division maintains three permanent stations

in Antarctica and one at Macquarie Island. Each summer the Australian Antarctic

Division deploys around 200 people to these stations and to fi eld camps. The

expeditions are supplied using chartered ships and aircraft.

In 2005–06 the Antarctic science programme supported 122 projects, leading to

316 publications (the best measure of scientifi c output) of which 127 are peer-

reviewed papers. Since 1999 the programme has produced 1 191 peer reviewed

publications. A recent review of publications output from the world’s Antarctic

programmes has shown that Australia’s output ranks third, behind the United

States and the United Kingdom.

Antarctic science grants

The Australian Antarctic Division supports the Australian Antarctic Science Grants

scheme. Applications for 2005–06 grants were sought nationally in May 2004,

prompting 159 research proposals. Following independent assessment 47

proposals were awarded grants with a total value of almost $800 000.

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Antarctic air link

The Australian Government provided funding of $46.3 million in the May 2005

Budget over four years to establish a permanent, intercontinental air link between

Hobart and Antarctica. The air link will make research more effi cient by enabling

scientists to spend less time travelling by ship and more time conducting research.

The Australian Antarctic Division completed a feasibility study, including runway

construction trials, at a cost of $3.2 million. The construction of a 4 000 metre ice

runway near Casey station commenced in October 2005 and will continue over

the summer of 2006–07, to allow a long-range jet aircraft to land in Antarctica. The

Australian Antarctic Division expects to fi nalise the aircraft type for the service by

late 2006, with trial fl ights scheduled to commence in 2006–07.

International management meetings

Australian Antarctic Division scientists and managers participate in the

international Council of Managers of National Antarctic Programmes and the

Standing Committee on Antarctic Logistics and Operations. These bodies

represent countries with a national presence in Antarctica. They promote better

management through sharing operational experience and innovations.

Concurrent meetings of the Scientifi c Committee on Antarctic Research and

Council of Managers of National Antarctic Programmes will be hosted by the

Australian Antarctic Division in Hobart from 26–30 July 2006.

International Polar Year preparations

The International Polar Year will be held over 24 months from March 2007 to

March 2009. It will mark the 50th anniversary of the International Geophysical

Year, which lasted 18 months from July 1957 to December 1958, and helped to

stimulate development of the Antarctic Treaty. The Australian Antarctic Division is

coordinating the Census of Antarctic Marine Life for the International Polar Year.

Pollution research

Research over the 2005–06 summer continued on the sensitivity of marine

invertebrates to heavy metal and other pollutants. Following a partial but

signifi cant clean-up of the old rubbish tip at Casey Station (Thala Valley) the fate of

hydrocarbon and other polluting run-off is being studied in the adjacent Brown Bay

and on land. The marine ecosystem is particularly sensitive to pollutants due to the

high prevalence of reproductive brooding among marine invertebrate species.

A new ‘geo-active’ barrier composed of different materials has been established

between the old oil spill site and the coast to intercept the plume of hydrocarbons

fl owing through the soil. Preliminary results suggest the barrier is acting effectively

and the technology might be transferable to other locations both in Antarctica and

in the Arctic.

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Results for performance indicators

Performance indicator 2005–06 result

Antarctic Treaty System

The degree to which Australia’s policy interests are advanced through international forums, particularly: (i) the Antarctic Treaty Consultative Meetings; (ii) the Commission for the Conservation of Antarctic Marine Living Resources; and (iii) the Committee for Environmental Protection

(i) Australia’s interests were advanced through the June 2006 Antarctic Treaty Consultative Meeting. Australian-designed tourist site use guidelines for 12 frequently visited sites in the Antarctic Peninsula region were endorsed. Commitment to support International Polar Year scientifi c research was obtained through a formal declaration. Australia assisted the Antarctic Treaty Secretariat: now fully functional, and thoroughly monitored by the Consultative Meeting. Non-Antarctic Treaty member Malaysia agreed to announce a timeline to sign the treaty

(ii) A range of high priority Australian interests and goals were signifi cantly advanced through participation in the Commission for the Conservation of Antarctic Marine Living Resources, including with regard to increasing international support for the commission; combating illegal, unreported and unregulated fi shing; improving the sustainability of legal fi sheries and conserving high seas biodiversity. In addition to longer-term policy interests, several shorter-term fi shery management goals were achieved

(iii) Australia chaired the June 2006 Committee for Environmental Protection meeting and its strategic workshop on environmental challenges, which ensured Australia’s interests were advanced to a very high degree. Australia’s revised management plan for the Clark Peninsula was endorsed. Australia’s proposal to designate Hawker Island as a specially protected area was endorsed. New quarantine guidelines, to prevent introducing non-native species into Antarctic waters in ballast water, were agreed, codifying standards Australia already applies

Illegal, unregulated and unreported fi shing

The extent of Australia’s impact within the Commission for the Conservation of Antarctic Marine Living Resources on measures to combat illegal, unreported and unregulated fi shing for toothfi sh

Australia has conducted extensive fi sheries enforcement patrols in the waters managed by the commission and has submitted several reports that collectively present information about the extent of illegal, unreported and unregulated fi shing and the offenders involved. Australia has also successfully proposed to the commission that it adopt improvements to existing measures and new measures to combat such fi shing

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Performance indicator 2005–06 result

International seabird conservation

The extent of Australia’s impact in changing fi shery practices, including reduction in the number of albatrosses caught by fi shing gear

Australia advanced its interests through meetings of the Agreement on the Conservation of Albatrosses and Petrels Advisory Committee and meetings of the parties. Australia took a leading role in developing the agreement, and currently provides the interim secretariat. 3 of the 4 working group chairs are from Australia, including the chair of the Seabird Bycatch Working Group

Australia promoted the uptake of bycatch mitigation measures in Regional Fisheries Management Organisations, including the Commission for the Conservation of Antarctic Marine Living Resources, Commission for the Convention of Southern Bluefi n Tuna and the Indian Ocean Tuna Commission

Australia ensured that the reduced bycatch limits specifi ed in the threat abatement plan for the incidental catch of seabirds in oceanic longline fi shing were met in domestic longline fi sheries through a combination of measures including education, enforcement, and monitoring through fi sheries-independent observer programmes and fi shing closures

International whaling

The degree to which Australia’s policy interests are advanced through the International Whaling Commission

Australia and other pro-conservation countries were successful at the 58th International Whaling Commission meeting in retaining the simple majority in all circumstances except one. As such the moratorium on commercial whaling, existing International Whaling Commission whale sanctuaries, and transparency were retained, and conservation issues associated with whales continue to be discussed. Australia also opposed scientifi c whaling and highlighted the fl aws with such programmes

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Performance indicator 2005–06 result

Protecting the Antarctic environment

No outbreaks of introduced diseases, pests or weeds

A number of alien invertebrates were discovered in various food items and were reported and returned to Australia for analysis. The mushroom gnat has reappeared in the living quarters at Casey station and is the subject of an eradication plan to be undertaken in August 2006. None of these species could survive outside warm buildings

Number and extent of oil spills and remediation action taken

2 minor fuel spills (2 litres and 12 litres) were reported and cleaned up using fuel spill equipment. In July 2005 there was a spill of 200 litres when a fork was accidentally put through a full drum of diesel near the bunded refuelling area at Mawson station. All contaminated snow was removed, melted and fuel recovered. In October 2005 approximately 1 000 litres of fuel leaked from a damaged (now replaced) fuel bowser at Casey station and is the subject of a bioremediation project

Number of environmental impact assessments: (i) completed by the department; and (ii) submitted by third parties and assessed by the department

(i) 32 assessed (ii) 52 submitted under the Antarctic Treaty (Environment Protection) Act 1980, and 3 referrals under the Environment Protection and Biodiversity Conservation Act 1999

Percentage of completed environmental impact assessments that are subsequently audited under Australia’s Antarctic Environmental Management System

Audit process commences in 2007

Support for Antarctic science

Successful completion of the 2005–06 elements of the Antarctic Science Strategy 2004/05–2008/09

A total of 122 projects from 34 institutions were undertaken to address 4 priority areas. 51 projects addressed the ice, ocean, atmosphere, climate priority area, 34 addressed the Southern Ocean ecosystems, 37 addressed adaptations to environmental change and 28 addressed impacts of human activity in Antarctica. Many projects address more than one priority area

Number of peer-reviewed scientifi c papers produced by scientists participating in the Antarctic science programme

127

Number of scientists active in Antarctica and the Southern Ocean

162

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Performance indicator 2005–06 result

Outcome 2—Individual outputs

The minister is satisfi ed with the timeliness and accuracy of briefs and draft ministerial correspondence provided by the department

The minister was satisfi ed

Percentage of payments that are consistent with the terms and conditions of funding (Target: 100%)

100%

Percentage of participants in the Australian Antarctic programme whose participation is consistent with the terms and conditions of logistic support (Target: 100%)

100%

Resources

Departmental outputs Budget prices $’000

Actual expenses $’000

Output 2.1 Antarctic policy 31 987 44 676

Total (Output 2: Antarctic policy) 31 987 44 676

Administered items

Mawson’s Hut Foundation – expedition 320 320

Total (Administered) 320 320

Departmental outputs Budget prices $’000

Actual expenses $’000

Output 2.2: Antarctic science 63 569 79 430

Total (Output 2.2: Antarctic science) 63 569 79 430

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Cross-cutting activities

The department provides other services that contribute to all of the outputs under

outcome 1 and outcome 2.

Main responsibilities for this work

• International policy advice

• Support for environment and heritage

organisations

• Environmental information

• Public affairs

Policy Coordination

Division

• Online information

• Environmental education

Corporate Strategies

Division

International policy advice

The department represents Australia’s interests on environment, heritage and

sustainable development issues in the region, and in broader international forums.

This work includes formulating policy and providing briefi ng material for the

minister and offi cials attending international meetings and events.

This year the department contributed to policy decisions at meetings of the

Commission on Sustainable Development, the United Nations Environment

Programme, and the Organisation for Economic Cooperation and Development

(OECD). The department also engaged in bilateral forums with selected countries

in the Asia–Pacifi c region. Many specifi c activities are detailed in other chapters of

the report.

Commission on Sustainable Development

The United Nations Commission on Sustainable Development is a multilateral

forum that promotes dialogue on issues relating to sustainable development and

builds partnerships between governments and stakeholders.

The 14th session of the United Nations Commission on Sustainable Development

was held in May 2006. The main themes under discussion were energy for

sustainable development, industrial development, air pollution and the

atmosphere, and climate change. The Minister for the Environment and Heritage

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participated in the high level segment of the meeting. The minister emphasised

the need for improved national level governance and for economic growth to

foster sustainable development. The meeting gave impetus to the Johannesburg

Plan of Implementation by sharing experiences and case studies about the main

themes. Australian case studies were well received, particularly studies on the

Greenhouse Friendly Programme and on Bushlight—Indigenous Renewable

Energy Services.

United Nations Environment Programme

The United Nations Environment Programme is the principal United Nations body

in the fi eld of the environment. Its role is to provide leadership and promote

partnerships for environmental protection.

A meeting of the programme’s governing council was held in February 2006. Major

themes were international chemicals management, energy, tourism, international

environmental governance, environmental assessment and reporting, capacity

building, and water policy and strategy. The department actively represented

Australia’s interests and the fi nal decisions of the meeting refl ected Australian

objectives.

Organisation for Economic Cooperation and Development

The department represented Australia’s interests at meetings of the Organisation

for Economic Cooperation and Development (OECD) Environment Policy

Committee held in November 2005 and March 2006. The committee continued

to direct OECD studies on issues linking economic and environmental policy

formulation. At the March 2006 meeting an offi cer of the department was

appointed chair of the committee. The department was active in meetings of the

committee’s working groups and an expert group on climate change.

OECD Environment Performance Review of Australia

The department is coordinating the OECD’s Environment Performance Review

of Australia. The review focuses on Australia’s environmental progress since the

last review (published in 1998) and will provide recommendations for future

action. The major themes of the review are environmental effectiveness, economic

effi ciency and sustainable development.

During 2005–06 the department completed the fi rst stage of the review by

providing environmental information and data to the OECD and completing

the OECD questionnaire. The department managed the coordination of these

tasks across Australian, state and territory governments. The fi nal report will be

published in late 2007.

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Bilateral activities

Papua New Guinea: The department continued to assist Papua New Guinea’s

Department of Environment and Conservation in the areas of governance and

natural resource management, forestry and forest biodiversity conservation,

and partnership building. The department is supporting a national capacity

self assessment to help Papua New Guinea meet its international environment

obligations and improve environmental governance at the national level.

Indonesia: The department collaborated closely with Indonesia on environment

and heritage issues. A successful meeting of the Joint Working Group on the

Environment held in October 2005 identifi ed a number of areas for collaboration

including sustainability education, hazardous waste and illegal trade in ozone

depleting substances. Other areas for bilateral cooperation with Indonesia

included climate change, illegal fi shing and management of the traditional fi shing

area near Ashmore Reef, migratory marine species and waterbirds, management of

world heritage areas and meteorological issues.

Japan: The department continued to work with Japan on a range of issues and

engaged with Japanese counterparts at international meetings. Discussions

covered topics such as sustainability education, migratory waterbird conservation,

climate change, joint polar research activities and international whaling.

New Zealand: The department held bilateral environment policy discussions

with New Zealand covering climate change and whales, chemicals management,

biodiversity issues, sustainable forest management and engagement with Pacifi c

island countries.

Pacifi c islands: Engagement with the South Pacifi c Regional Environment

Programme continued through Australia’s involvement in the 16th annual meeting

of offi cials in September 2005. Australia was commended by Pacifi c island countries

for its assistance in pollution prevention.

Australia has assisted Pacifi c island countries to manage the threat posed by

persistent organic pollutants to the environment and human health. Pacifi c

countries have stockpiles of persistent organic pollutants in the form of agricultural

pesticides, waste chemicals and PCBs (polychlorinated biphenyls). The persistent

organic pollutants are identifi ed, collected and shipped to Australia for safe

destruction. The department has made a large contribution to this project by

arranging all transportation permits and approvals.

The department continued to assist Pacifi c Island countries in ratifying treaties,

meeting obligations or building capacity to implement environment treaties.

The department also provided specifi c advice and assistance on environmental

governance, climate monitoring and prediction, chemicals and waste management,

wetlands and biodiversity conservation, and the conservation of marine and

migratory species.

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Support for environment and heritage organisations

Taxation concessions

The Register of Environmental Organisations is a list of approved environmental

organisations to which donations of money or property for the conservation of

the natural environment are tax deductible. Statistics for 2004–05, which are the

most recent available, show that the public donated more than $69 million to

environmental tax-deductible organisations to protect and enhance the natural

environment. This is down by around $4 million from the previous year, possibly

as a result of the massive public response to fund-raising appeals following the

26 December 2004 tsunami.

During 2005–06 the department assisted 76 organisations interested in applying to

join the register. The Minister for the Environment and Heritage and the Assistant

Treasurer approved the entry of 45 organisations on the register, and

11 organisations were removed at their own request. At 30 June 2006 the register

contained 357 organisations, compared to 323 organisations at 30 June 2005.

Grants to Voluntary Environment and Heritage Organisations

The programme of Grants to Voluntary Environment and Heritage Organisations

assists community-based environment and heritage groups to meet the

administrative costs of their activities. In this year’s funding round 144

organisations received a total of $413 200. Twenty of these groups were offered

multi-year grants for up to three years. In addition 28 voluntary organisations that

were awarded multi-year funding in the previous year received their second year of

support, totalling $354 000 in 2005–06.

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Environmental information

The department collects information and data to inform policy advice and to

monitor progress on environmental protection.

2006 State of the Environment Report

The Environment Protection and Biodiversity Conservation Act 1999 requires

that a report on the State of the Environment is released every fi ve years.

The State of the Environment Report assesses the Australian environment under

eight themes: atmosphere, coasts and oceans, inland waters, biodiversity, human

settlements, natural and cultural heritage, land, and Australia’s Antarctic Territories.

The Minister for the Environment and Heritage appointed an independent State

of the Environment Committee in early 2004 to prepare the 2006 State of the

Environment Report. During 2005–06, the committee compiled its report, tested

it with a group of experts and considered the comments from a number of peer

reviewers. The department supported the committee’s work by commissioning

commentaries and papers. The committee expects to deliver the fi nal report to the

minister later in 2006.

Environmental Resources Information Network

The department’s Environmental Resources Information Network develops new

information products and improves existing products to support the department’s

core functions, and for use by other government agencies and the public.

The department updated the Species Profi le and Threats database and the

National Vegetation Information System, and developed a spatial analysis tool to

help assess Community Water Grant applications.

The department’s biodiversity analysis tool allows users to produce maps of

the distribution of species in terms of their diversity, endemism and taxonomic

distinctiveness. The department presented the tool to the Global Biodiversity

Information Facility Governing Board in Stockholm, Sweden, and at an

international workshop on biodiversity information tesources in Japan. It is also

being used by the National Institute of Genetics in Mishima, Japan.

The department began work on the fi rst stage of Australia’s Resources Online which

will allow users to access information on Australia’s natural resources, including the

monitoring and evaluation of management programmes.

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The department has been developing My Environment, a web-based tool that

enables people to generate a personal environment and heritage report for their

home, school or property by entering their address details. My Environment

allows people to search the department’s national environmental databases to fi nd

information specifi c to their needs. It is expected to be available later in the year.

Online information

The department’s websites provide public access to substantial holdings of

information and knowledge. The websites meet the Australian Government’s

online accessibility standards.

During 2005–06 there were over 11 million visits to the department’s websites,

up by more than three million from last year. The most popular site was the

department’s main website (www.deh.gov.au) with over seven million visits.

This was an increase of about two million from 2004–05 and was followed by the

Australian Greenhouse Offi ce site with nearly 1.7 million visits.

Visits to the department’s websites (2005–06)

National Pollutant Inventory website 4%

Department’s main website 15%

Other departmental websites 66%

Natural Heritage Trust website 4%

Australian Greenhouse Office website 12%

Results are based on ‘unique user sessions’. ‘Other departmental websites’ include: Natural Resource Management, Australian Heritage Council, Australian Heritage Directory, Community Water Grants, Australian Government Environment Portal, Travel Smart Australia, Australian Natural Resources Atlas, National Action Plan for Salinity and Water Quality, Used Oil Recycling, Waterwatch, Water Rating, National Centre for Tropical Wetland Research, and Lake Eyre Basin Ministerial Forum.

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Public affairs

The department aims to communicate clearly, consistently and effectively with the

Australian public, other agencies and governments, industry, community groups

and non-government organisations. Community awareness of, and engagement

with, the government’s programmes and policies to protect the environment and

heritage is central to their success.

Priorities for communications were to engage Australians more actively in:

• on-ground work and regional planning across Australia’s 56 natural resource

management regions

• encouraging wise use of water with the uptake of Community Water Grants

• participating in the government’s campaign for whale conservation

• raising awareness of climate change and Australia’s efforts to combat climate

change and adapt to global warming

• raising awareness of the National Heritage List and of Australia’s rich natural

and cultural heritage.

Environmental education

The goal of the department’s sustainability education activities is to develop the

skills, knowledge and values that the Australian community needs to protect the

environment.

The department continued to work with the Australian Government’s advisory

body on environmental education, the National Environmental Education

Council, to implement the National Action Plan for Environmental Education. In

conjunction with the council, the department began work on a new national action

plan. The revised plan will take into account Australia’s response to the United

Nations Decade of Education for Sustainable Development (2005–2014).

The department helped to prepare and disseminate the fi rst National

Environmental Education Statement for Australian Schools. The statement

provides a model of good practice for delivering sustainability education.

Sustainability education is being delivered in schools in all states and territories

through the Australian Sustainable Schools Initiative and other programmes.

The Australian Sustainable Schools Initiative helps schools to improve

management of their resources and grounds (including energy, waste, water,

biodiversity, landscape design, products and materials) and to integrate the

principles of sustainable development into the curriculum and daily running

of the school. For more information on sustainability education see

www.deh.gov.au/education.

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The department continued to support the Australian Research Institute in

Education for Sustainability at Macquarie University to carry out research on

applied sustainability education. Under the national component of the Natural

Heritage Trust, the department is commissioning $1.7 million of research over

two years (2006–2008). In 2005–06 the institute completed fi ve research projects

including a national review of environmental education and its contribution to

sustainability in Australia, the effectiveness of air quality and coastal management

education, whole-school approaches to sustainability, and models for professional

development in the education of new teachers (for more information see

www.aries.mq.edu.au).

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MANAGING THE DEPARTMENT

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Managing the department

Corporate governanceThe department is committed to sound governance and has established a

comprehensive range of mechanisms and documentation to control and safeguard

the organisation’s business systems and assets.

Results 2005–06

• Completed assessments of the Bureau of Meteorology, the National

Environment Protection Council Service Corporation and the Director

of National Parks against recommendations of the Review of Corporate

Governance of Statutory Authorities and Offi ce Holders

• Completed the review of the Great Barrier Reef Marine Park Act 1975

• Resolved all the main issues identifi ed by the Australian National Audit

Offi ce through the 2004–05 and 2005–06 fi nancial statements audits

• Implemented new arrangements for corporate governance and internal audit

• Updated the department’s service charter and created a new role of client

service offi cer

• Completed the department’s 2005–2007 fraud control plan and the business

continuity plan for the period 1 January 2006 to 31 December 2007.

Senior executive and responsibilities

The secretary, Mr David Borthwick, is the chief executive offi cer of the department.

He is assisted in the management of the organisation by an executive team

consisting of three deputy secretaries and 14 fi rst assistant secretaries.

During 2005–06 the department made the following new appointments to the

executive team:

• Ms Mary Harwood was appointed fi rst assistant secretary of the newly created

Environment Quality Division

• Mr Alan Hughes was appointed as the Supervising Scientist and the fi rst

assistant secretary of the Supervising Scientist Division

• Ms Virginia Mudie was appointed deputy director of the Australian Antarctic Division

• Ms Donna Petrachenko was appointed fi rst assistant secretary of the Marine Division

• Mr Barry Sterland was appointed fi rst assistant secretary of the International,

Land and Analysis Division

• Mr Darren Schaeffer was appointed to chief fi nance offi cer and assistant

Secretary of the Financial Management Branch, Corporate Strategies Division

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• Ms Lynden Ayliffe, Ms Vicki Dickman, Mr Richard McAllister, Mr Andrew McNee,

Ms Alex Rankin, Ms Kerry Smith, Mr Greg Terrill, and Dr Charlie Zammit were

appointed to assistant secretary positions in the department.

Three senior executives retired from the department in 2005–06: Dr Arthur

Johnson, Mr Mark Hyman and Ms Alison Russell-French.

Dr Arthur Johnston

Dr Arthur Johnston retired from the department in

October 2005 after six years as the Supervising Scientist

and over 20 years of distinguished service in the

department. The position of Supervising Scientist plays

a vital role in ensuring that the environment of the

Northern Territory’s Alligator Rivers Region, which includes Kakadu National

Park, remains protected from any potential impacts of uranium mining.

Dr Johnston joined the Environmental Research Institute of the Supervising

Scientist in 1982. He was director of the Institute for nine years and was head

of the research programme on environmental radioactivity at the Institute.

Dr Johnston was awarded the Public Service Medal on Australia Day in

2003 for outstanding public service in the development of environmental

standards, particularly relating to the Kakadu National Park, ensuring the

highest levels of scientifi c integrity of the environmental research programme.

Mark Hyman

Mark Hyman retired from the department in October 2005

after 13 years of distinguished service. Mr Hyman was

assistant secretary of the Environment Protection Branch

since 2003. His responsibilities included policy relating to

environmental management of chemicals and hazardous

wastes, environmental aspects of biotechnology, the National Pollutant Inventory,

ozone protection, state of the environment reporting and the development

of partnerships with industry, especially relating to sustainability in business.

Prior to this Mr Hyman was in charge of the Department’s International

Branch, when that was a separate organisational unit, with general

responsibility for international environmental and sustainable development

matters, including coordinating Australia’s preparations for the World Summit

on Sustainable Development.

Mr Hyman’s extensive experience included science, technology and industry

policy, with a wide variety of environmental responsibilities, especially relating

to environment protection.

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Alison Russell-French

Alison Russell-French retired from the department in

July 2006 after 16 years of distinguished service having

joined the department in 1990. Prior to this, Ms Russell-

French worked in a broad range of natural resource

management areas of the Australian Public Service.

Alison Russell-French was a member of the senior executive team delivering

the Australian Government’s Natural Heritage Trust and the National Action

Plan for Salinity and Water Quality.

Ms Russell-French’s experience covers a wide range of policy development

and programme administration in natural resource management particularly

in the areas of wetlands, coastal and marine, introduced marine pests,

migratory waterbird conservation, and world heritage. She also represented

the Australian Government in international environment forums.

Executive committees

The Executive Roundtable is the key senior management forum. It meets weekly

to monitor performance and review signifi cant issues across the department and

portfolio. Members are the secretary (chair), deputy secretaries and heads of

all divisions of the department and portfolio agencies. A summary of outcomes

from meetings is made available to all employees via the department’s intranet

and through regular meetings with staff held in each division and agency. The

names and responsibilities of the department’s senior managers are shown in the

organisation chart on page 11.

The department has eight committees that direct specifi c aspects of the

department’s internal affairs. Each committee reports its decisions and

recommendations to the Executive Roundtable after major meetings. The major

achievements of the committees in 2005–06 are summarised in the table below.

In late 2005 the Executive Roundtable agreed to establish a senior forum across

the portfolio to consider climate change impacts and adaptation. The role of the

Executive Group on Climate Change Adaptation is to ensure effective integration

of work on climate change impacts and adaptation into environment and heritage

policies, strategies and programmes. The fi rst meeting was held in February 2006.

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Roles and achievements of the department’s Executive Roundtable committees 2005–06

Committee Role Major achievements in 2005–06

Audit Committee Oversees the internal and external audit programme and reviews, risk management, fraud prevention, fi nancial processes, legislation and compliance

Reviewed the committee’s charter, operating procedures and performance

Updated the 2005–2007 fraud control plan for the department

Completed the 2005–06 internal audit programme of the department

Budget, Finance and Strategy Committee

Considers strategic budget and signifi cant fi nancial matters, and guides corporate governance and strategic policy activities

Undertook a rigorous review of the resources allocated to the seven outputs, reprioritising 2006–07 funding to ensure priority functions are properly resourced and to allow the department to respond to emerging issues

Set the initial budget strategy for 2007–08 and 2008–09

Adopted an internal budget management strategy which sets out clear lines of responsibility between strategic policy and fi nancial management aspects of the budget process

Implemented change management initiatives to enhance the fi nancial management of the department

Developed and implemented activity tracking for major and/or sensitive projects to identify and monitor risks

Developed detailed guides for line areas and agencies on the budget and new policy processes

Compliance Executive Committee

Sets the department’s policy and direction for legislative compliance, endorses operational policies and practices, sets performance measures and reviews performance on compliance and governance

Endorsed the 2006 compliance and enforcement strategy setting the direction for department-wide compliance and enforcement activities

Initiated a review of the department’s investigation services in line with audit recommendations

Endorsed an operational draft of the departmental investigation procedures manual

International Steering Committee

Oversees and provides strategic direction to the international work of the department, and sets priorities for its international activities

Endorsed a Pacifi c strategy for the portfolio

Endorsed a strategy for participation in the conference of the parties to the Convention on Biological Diversity

Established a 2005–06 international engagement strategy

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Committee Role Major achievements in 2005–06

Knowledge Management Committee

Supports improved information and knowledge management in the portfolio, including implementation of new information and communications technology

Created training programmes to improve the department’s recordkeeping and developed a new intranet site to improve communication

Established subcommittees to improve access to and application of environmental information and to progress the cultural and work practice aspects of knowledge management

Endorsed a new information and communications technology strategic plan

Marine and Coastal Coordination Committee

Coordinates domestic and international marine and coastal policies and programmes across the portfolio

Initiated the Natural Resource Management Marine and Coastal Committee Strategic Directions Workshop to be held in July 2006

Coordinated departmental input to the Marine Pollution Response Plan

Portfolio Indigenous Affairs Coordination Group

Coordinates Indigenous issues across the portfolio and sets the portfolio’s strategic focus on Indigenous matters

Provided leadership and advice on a future direction for shared responsibility agreements, and for communicating changes in regional marine planning to Indigenous people

Championed the ‘Healthy Country, Healthy People’ schedule under the Overarching Agreement on Indigenous Affairs between the Commonwealth of Australia and the Northern Territory of Australia. Leadership from this committee has improved coordination of Indigenous issues across the portfolio and forged stronger external links, particularly with the Offi ce of Indigenous Policy Coordination and Indigenous Coordination Centres

Championed a successful NAIDOC week in the department

Workforce Management Committee

Provides strategic oversight for workforce issues such as recruitment, performance management, learning and development, occupational health and safety

Approved changes to the graduate development programme and signifi cantly increased the graduate intake for 2007 and 2008

Created three subcommittees to develop respectively a workforce plan for the department, a project management tool accessible on the intranet, and a leadership development programme for senior employees of the department

Roles and achievements of the department’s Executive Roundtable committees 2005–06 continued ...

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Corporate governance developments

Uhrig review

The department is assessing the governance arrangements of statutory authorities

and offi ce holders in the portfolio against the recommendations of the 2003

Review of the Corporate Governance of Statutory Authorities and Offi ce Holders

(the Uhrig Report).

Having completed assessments of the Offi ce of the Renewable Energy Regulator

and the Sydney Harbour Federation Trust in 2004–05, this year the department

completed assessments of the Bureau of Meteorology, the National Environment

Protection Council Service Corporation, and the Director of National Parks. The

governance arrangements for all of these entities were found to be generally

consistent with the Uhrig Report.

In relation to the National Environment Protection Council Service Corporation,

a review of the National Environment Protection Council Act 1994 (and the

corresponding legislation in other jurisdictions) commenced in late June 2006.

Building on the department’s assessment in the context of the Uhrig Report, this

review will consider the governance framework for the National Environment

Protection Council Service Corporation.

A review panel completed the assessment of the Great Barrier Reef Marine Park

Authority against the Uhrig Report as part of a broader review of the Great Barrier

Reef Marine Park Act 1975. It is now some 30 years since the Act came into force

and established the authority. In the 2004 federal election, the government made

a commitment to review the Act to improve the performance of the Great Barrier

Reef Marine Park Authority, its offi ce holders and its accountability frameworks.

The minister announced the review and its terms of reference on 23 August 2005.

The review was undertaken by a panel chaired by the secretary of the department

with a representative of the Department of the Prime Minister and Cabinet and a

representative of the Department of Finance and Administration as the other panel

members. In all, 227 submissions were received, as well as a number of campaign

submissions, and 36 consultation meetings were held. The review was completed

in April 2006 and is currently subject to consideration by the government.

Internal audit

This year the department reviewed its requirements and organisational

arrangements for internal audit. A new section was created to facilitate improved

governance in the department. It provides strategic input to the internal audit

and risk management functions and manages the work programme for the

department’s external provider of internal audit, risk management and fraud

prevention services. The section also provides the secretariat to the Audit

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Committee and the Risk Assessment Panel, provides advice to the executive on

programme implementation and performance, and prepares the department’s

annual report.

The department’s Audit Committee provides independent assurance and

assistance to the secretary on the integrity of the department’s fi nancial

management processes, its risk, fraud control and legislative compliance

framework, and its external accountability responsibilities.

The Audit Committee has fi ve members, as set out in the table below. The current

membership of the committee was formally appointed from 1 September 2005

with a new chair and one new member appointed at that time.

Audit Committee membership 2005–06

Member Role

Howard Bamsey Chair

Rod Allen Member

David Anderson Member

Greg Wood Independent member

Jenny Morison Independent member

All members attended the fi ve meetings held in 2005–06.

Observers at meetings of the committee are the chief fi nance offi cer, chair of the

Risk Assessment Panel, the director of the Governance Unit and representatives of

the Australian National Audit Offi ce and internal audit.

This year, the Audit Committee’s major activities included:

• reviewing and updating the committee’s charter in light of the Better Practice

Guide for Public Sector Audit Committees produced by the Australian National

Audit Offi ce. The charter was endorsed by the secretary in March 2006. The

charter documents the roles, responsibilities, accountability and operating

procedures of the committee

• fi nalising the department’s fraud control plan for 2005–2007. The fraud control

plan helps to prevent and manage fraud and complements the department’s

fraud management guidelines for staff

• completion of the 2005–06 internal audit plan and agreement to the strategic

internal audit programme for 2006–2009 and the 2006–07 internal audit plan.

The 2006–09 internal audit programme was developed in consultation with the

department’s senior executive. The planning process incorporated:

• a review of key departmental documentation

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• consideration of internal audit coverage over the past two years

• identifi cation of signifi cant operational and fi nancial risks, key projects and

challenges facing divisions across the department

• identifi cation of areas where there is signifi cant reliance on controls that are

crucial to ensuring accuracy, integrity and reliability of systems.

The internal audit team developed a list of audit topics based on an understanding

of the key risks of the department and areas where internal audit activity can

best assist staff to continuously develop and upgrade processes to improve the

department’s overall effi ciency and effectiveness in achieving its outcomes. The

2006–07 internal audit plan was approved by the Audit Committee. The Audit

Committee will monitor and follow-up audit fi ndings and recommendations.

Risk management

Risk management is integral to the department’s planning and review systems.

A senior management subcommittee, the Risk Assessment Panel, implements the

department’s risk management policy, maintains an overall risk management plan

for the department, and reports to the Audit Committee. The risk management

service provider and the director of the Governance Unit are observers at Risk

Assessment Panel meetings.

Risk Assessment Panel membership 2005–06

Member Role Meetings attended (of 4 meetings held)

Mark Tucker Chair 4

Gerard Early Member 3

David Anderson Member 4

Malcolm Forbes Member 3

Rod Allen Member 4

This year the Risk Assessment Panel began investigating ways to identify risks

at an early stage in programme implementation. As part of this process, in

February 2006, the Budget, Finance and Strategy Committee began trialling a new

reporting tool to allow the department’s executive to monitor the progress of key

departmental activities and identify emerging risks. In April 2006 the department

commissioned a review of the risk management framework. The results are

expected in early 2006–07.

The department’s insurable risks are identifi ed annually as part of Comcover’s

insurance renewal process. Both actual and potential insurance claims are

reported to Comcover. For risks associated with injury to staff the department is

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covered by Comcare. The department maintains an occupational health and safety

unit, which helps to reduce claims. Comcare conducts inspections to help the

department measure its performance. Success in managing business risks led to

the department receiving a six per cent discount off its Comcover premium with

the completion of the 2006 Comcover Risk Management Benchmarking Survey in

April 2006.

Fraud control

The department has a fraud control plan and conducts risk assessments to prevent

and manage fraud within the department, in accordance with the Commonwealth

Fraud Control Guidelines.

The secretary endorsed the department’s current fraud control plan in October 2005.

The plan covers the period 2005–2007.

Business continuity plan

The department has a business continuity plan for the period 1 January 2006

to 31 December 2007 endorsed by the secretary. The business continuity plan

describes the arrangements that the department will use to ensure the continuity

of its key services after a major, unexpected and disruptive incident (such as a fi re).

It describes the management structure, staff roles and responsibilities, and actions

that are to be implemented after a major incident.

Knowledge management

The department is committed to basing its decision-making on the best available

information and acknowledges the need to develop and effectively manage its

knowledge base. This year the department established subcommittees of the

Knowledge Management Committee to look at the department’s environmental

information needs, particularly in the area of natural resource management, and at

cultural and work practices that are needed for effective knowledge sharing.

This year a new intranet was launched to assist with internal communications and

knowledge sharing. The department has been focusing on learning from staff who

have already built up experience and understanding in specifi c areas, and has used

their experience in practical ways including participating in the design of the new

intranet.

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Environmental economics advice

The Environmental Economics Unit supports the department with economic

analysis that brings together environmental and economic considerations when

developing advice about policies and programmes. The unit identifi es issues

where economic policies need to take into account environmental considerations.

During the year the unit assisted with submissions to Productivity Commission

inquiries into heritage and waste management. The unit continued to participate

in the management of the $10 million National Market Based Instruments

Pilot Programme under the National Action Plan for Salinity and Water Quality.

Nine of the 11 pilot projects approved under round one of the programme are

now complete. A focus during the year was to address the issue of providing

environmental outcomes at least cost (see www.napswq.gov.au/mbi/round1/index.

html). Additional pilot projects will be funded under round two of the programme

over coming years.

Other activities included assessing impact estimates associated with marine

protected areas, the use of market based instruments in programme development

for the Tasmanian Forests Conservation Fund, management and advice for

projects associated with the Reef Water Quality Protection Plan, and advice on

environmental economics proposals under the Commonwealth Environment

Research Facilities programme.

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Stakeholder relations

The department strives to provide a high standard of service to its clients. These

include ministers; other Australian Government departments and agencies; state,

territory and local government bodies; non-government organisations; industry;

and members of the wider community.

The department values the views of its clients and stakeholders, and acknowledges

and values the rights of stakeholders to scrutinise its actions. In doing so, offi cers

of the department maintain the ethical standards required of the Australian Public

Service.

Ethical standards

The department’s employees must comply with the Australian Public Service

Values and Code of Conduct. Detailed guidance is available to employees via

the department’s intranet. The guidance includes a code of conduct specifi c to

the department and procedures for handling suspected breaches. Individual

performance agreements require a personal commitment to the Australian Public

Service Values and Code of Conduct.

The department maintains a network of workplace contact offi cers to raise

awareness about acceptable behaviour in the workplace and to assist employees

with complaints. When new employees join the department they attend an

orientation programme that introduces them to the specifi c requirements of

the Australian Public Service code of conduct, including the need to disclose any

potential confl icts of interest. The programme illustrates commonly encountered

ethical issues. Participants in the graduate programme also attend an ethics course.

Guidelines available on the department’s intranet warn staff against the

inappropriate use of information technology. The department’s whistleblower

policy ensures that allegations are treated seriously and investigated promptly and

independently.

Ministerial and parliamentary services

The department advises and supports the minister and the parliamentary secretary

through briefi ngs, correspondence, website maintenance and offi ce support

services.

The department has been reviewing its workfl ow systems and databases currently

used to support the minister. The department expects to implement a new

and more integrated system before the end of 2006. The new system will offer

electronic workfl ow for important areas of ministerial and parliamentary business,

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namely correspondence, briefi ngs and parliamentary questions. The system will

also automate and streamline management reporting to a much greater degree

than is currently possible, improve document (version) control, and improve the

overall quality of the material being produced.

The minister, the parliamentary secretary and their staff regularly provide informal

feedback in the normal course of their routine contacts with senior offi cers of the

department. Such feedback, positive or negative, is useful in framing the approach

to similar matters in the future.

The department provides a fortnightly report to the executive and to the

minister’s staff on workfl ows relating to briefi ngs, correspondence, parliamentary

questions, Cabinet and parliamentary business and legal, legislation and freedom

of information matters. In 2005–06, 10 890 items of correspondence were received

by the minister and parliamentary secretary and registered on the department’s

database. Between 100 and 150 draft replies to correspondence were submitted

for the minister’s signature each week. Reports on overdue correspondence are

discussed at the relevant meeting of the department’s executive including, where

appropriate, mitigating circumstances and steps needed to improve performance.

Nearly 3 000 briefi ng submissions for the minister and parliamentary secretary

were prepared in 2005–06. The department modifi ed its procedures to ensure

a minimum fi ve working day period between when a submission arrived in the

minister’s offi ce and when a decision was required.

Results for performance indicators

Performance indicator—parliamentary Result 2005–06

The minister is satisfi ed with the timeliness and accuracy of briefs and draft ministerial correspondence provided by the department

Minister was satisfi ed—procedural adjustments have improved timeliness and quality while responsiveness to requests continues at a high level

Services to the community

The department’s Community Information Unit and the department’s switchboard

(02 6274 1111) receive requests for information from the community, feedback on

the department’s services and redirect enquiries to the appropriate action offi cer.

The Community Information Unit responded to 38 927 enquiries from the

Australian community. Grant related enquiries accounted for 53.8 per cent of the

enquiries, while the remaining 46.2 per cent were for general information about

the department and its programmes. The unit distributed 253 759 publications in

response to requests.

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Service charter

The department released a new service charter in October 2005 for the period

2005–2008. The charter sets out the standards of service clients can expect from

the department, their rights and responsibilities, and how to fi nd out more about

the department. The charter is available at www.deh.gov.au/about/publications/

charter.html or in hard copy by contacting the Community Information Unit toll-

free on 1800 803 772.

Clients can provide feedback to the department on its performance by emailing

[email protected]. A feature of the new service charter is the creation

of a client service offi cer position, an impartial contact point to accept feedback

and coordinate the department’s response to members of the public who raise

concerns about service standards. The client service offi cer can be contacted at:

Client Service Offi cer

Department of the Environment and Heritage

GPO Box 787

Canberra ACT 2601

Phone: 02 6274 3199

Fax: 02 6274 1322

Email: [email protected]

Complaints about service

No formal complaints were received about service in 2005–06 through the client

service offi cer.

Five client service complaints were received through the Community Information

Unit and these were redirected to the appropriate area for resolution.

All future client service complaints received through the Community Information

Unit will be forwarded to the department’s client service offi cer.

Access and equity

The department contributes to the Australian Government’s access and equity

annual report on whole-of-government progress in implementing the Australian

Government’s Charter of Public Service in a Culturally Diverse Society

(see www.dimia.gov.au/multicultural/access_equity).

The department’s performance in implementing the charter in 2005–06 for its core

roles as policy adviser, regulator, purchaser, and provider is summarised in the

following table.

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Department’s performance in implementing the Charter of Public Service in a Culturally Diverse Society

Performance indicator Results 2005–06

Policy adviser role

New or revised policy/programmes that impact in different ways on the lives of people from different cultural and linguistic backgrounds are developed in consultation with people from those backgrounds

Indigenous people have been involved in the development of policy and programmes through participation on the Bushlight Steering Committee, Indigenous Advisory Committee, Envirofund state and national assessment panels, natural resource management regional bodies and the Community Water Grants National Advisory Panel

Indigenous people have been consulted on new or revised policies/programmes including developing priorities for environmental research under the Marine and Tropical Sciences Research Facility in north Queensland, revising the guidelines for the delivery of future Envirofund grant funding rounds and implementing integrated waste and used oil management practices in remote and Indigenous Australia

New or revised policy/programme proposals assess the direct impact on the lives of people from a range of cultural and linguistic backgrounds prior to decision

Impacts on the lives of Indigenous people were considered in relation to programmes such as the review of the Bushlight Project and accessing Natural Heritage Trust resources and Community Water Grants

The national review of environmental education in Australia considered existing environment education programmes that specifi cally involve communities of culturally and linguistically diverse backgrounds and made recommendations for future resources, programmes, research and policy development

New or revised policy/programme initiatives have a communication strategy developed and suffi ciently resourced to inform people from relevant cultural and linguistic backgrounds

Communication strategies for new or revised policy/programme initiatives have included the use of plain English in all communications, advertising grant funding rounds via the Indigenous media network and non-English speaking media, providing translator services and incorporating Indigenous art and imagery in targeted promotional material

Regulator role

Resources are provided so that publicly available and accessible information on regulations is communicated appropriately to people from a range of cultural and linguistic backgrounds, and especially to those identifi ed as having a high level of non-compliance

Indigenous people were informed about how the department helps to protect and preserve areas and objects in Australia that are of particular signifi cance to Indigenous peoples through the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 and the Protection of Movable Cultural Heritage Act 1986 by using plain English correspondence and by providing opportunities for telephone and face-to-face meetings

Purchaser role

Purchasing processes that impact in different ways on the lives of people from different cultural and linguistic backgrounds are developed in consultation with people from those backgrounds

Indigenous people helped develop purchasing processes for Commonwealth reserve management plans, and service level agreements between the Wreck Bay Aboriginal Community and the Director of National Parks, to help the Wreck Bay community provide services to Booderee National Park

Parks Australia examined how to involve traditional owners more in the delivery of services such as construction and maintenance of park assets for reserves in the Northern Territory

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Performance indicator Results 2005–06

Tendering specifi cations and contract requirements for the purchase of goods or services are consistent with the requirements of the Charter

The department’s tendering specifi cations and contract requirements comply with the Commonwealth Procurement Guidelines. The principles of the guidelines are consistent with the Charter of Public Service

Complaints mechanisms enable people regardless of cultural and linguistic backgrounds to address issues and raise concerns about the performance of service providers and the purchasing agency

Complaint mechanisms are built into the Commonwealth Procurement Guidelines which apply to the department’s purchasing arrangements

Provider role

Providers have established mechanisms for planning for implementation, implementation, monitoring and review that incorporate the principles underpinning the Charter

Indigenous people are represented on the regional bodies responsible for developing natural resource management plans and are assisted by facilitators funded through the Natural Heritage Trust

Indigenous culture is presented to visitors to Commonwealth reserves, following consultation with Indigenous representatives on the boards of management and advisory committees of these reserves

Providers have established service standards that utilise the cultural and linguistic diversity of their staff, or their staff’s cross-cultural awareness to facilitate and enhance service delivery

Service delivery was enhanced by providing cross-cultural awareness training for staff. Regional bodies implementing the Natural Heritage Trust were encouraged to provide cross-cultural awareness training

The department supported Indigenous participation in natural resource management through the Indigenous Land Management Facilitator Network and the National Indigenous Engagement Coordinator, which are identifi ed Indigenous positions. Access for non-English speaking applicants was also assisted through the provision of translator services for the Envirofund and Community Water Grants rounds

Complaints mechanisms enable people regardless of cultural and linguistic background to address issues and raise concerns about the performance of Providers

The department has a service charter and a client service manager to deal with complaints by phone and internet

The department has a ‘Contact Us’ facility on the website inviting comments, queries and feedback

Employer role

No indicator The department promotes recruitment and career development of Indigenous employees especially for positions that deal with Indigenous clients. The department also promotes awareness of Indigenous issues through the annual celebration of NAIDOC week

Department’s performance in implementing the Charter of Public Service in a Culturally Diverse Society continued ...

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External scrutiny

Courts and tribunals

The decision of the Full Federal Court in Save the Ridge Inc v Commonwealth

handed down on 16 September 2005 affi rmed the scope of the application of the

Environment Protection and Biodiversity Conservation Act 1999 to government

decision-making. The case concerned amendments to the National Capital Plan

relating to the construction of the Gungahlin Drive extension (major roadworks in

the Australian Capital Territory).

The court upheld the Commonwealth view that the amendments were not an

‘action’ under the Act because they were a governmental authorisation under

section 524 of the Act.

Auditor-General reports

Audit Report No. 21 2004–05 Audit of Financial Statements of Australian

Government Entities for the Period Ended 30 June 2005. The focus of the report

is on the year end results of the fi nancial statement audits of all general purpose

reporting entities for the 2004–05 fi nancial year.

The Australian National Audit Offi ce identifi ed eight moderate issues and one

legislative breach in the interim phase of the 2005–06 audit relating to defi ciencies

in the fi nancial statement preparation process, the reconciliation of leave balances,

the reconciliation of fi nancial records, the reconciliation of special accounts and

access management. All issues were satisfactorily resolved in 2005–06.

Parliamentary committees

One report was tabled by the Senate Environment, Communications, Information

Technology and the Arts Committee: Report 2343 tabled on 28 March 2006:

• Living with Salinity – A Report on Progress. The committee considered the

extent and economic impact of salinity, focusing attention on the effectiveness

of current arrangements to manage salinity across Australia. The report makes

23 recommendations to build on the work that has taken place over the last

fi ve years.

One report was tabled by the House of Representatives Standing Committee

on Environment and Heritage: Parliamentary paper 215/2005 tabled on

12 September 2005:

• Inquiry into Sustainable Cities. The report encompassed a wide ranging set

of recommendations related to the complex matter of urban sustainability. The

Australian Government is formulating its response to the report.

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Commonwealth Ombudsman

There were no formal reports from the Commonwealth Ombudsman during the year.

Freedom of information

This section is presented in accordance with the requirements of section 8 of the

Freedom of Information Act 1982. The Act gives the Australian community the

right to access information held by the Australian Government. The only limits are

exemptions needed to protect essential public interests and privacy.

Applications received

The department received 35 applications pursuant to the Act during 2005–06.

There were no requests for review by the Administrative Appeals Tribunal.

Information about the department

Under section 8 of the Act the department has to make available information about

its functions, organisation, operations and powers that affect members of the

public. Relevant information is contained elsewhere in this annual report

(the executive summary, beginning on page 2, presents an overview).

Information about categories of documents

Under section 8 of the Act the department has to report details of certain

categories of documents it maintains. The department holds a large range of

documents in the following categories:

• General policy: administrative fi les, consultants’ reports, memoranda of

understanding, agreements, permits, licences, submissions, guidelines for

programmes, grant documents, manuals, fi nancial records, staffi ng records,

instructions of the secretary, legal documents, and tender evaluations

• Specifi c: Australian Antarctic Division records, committee records, and court

documents and records

• Parliamentary: briefi ng documents, Cabinet documents, ministerial

submissions, policy advice, ministerial correspondence, explanatory

memoranda to Acts, Ordinances and Regulations.

Some documents may have been transferred into archival custody or destroyed in

accordance with the Archives Act 1983.

Arrangements for outside participation

Under section 8 of the Act the department has to report details of arrangements

whereby members of the public can participate in certain kinds of decision-making.

The department consults members of the public and bodies outside the Australian

Government’s administration when developing policy and programmes, and

administering legislation and schemes. In addition to general public consultation,

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which may be a requirement of particular legislation, the department and the

minister receive advice from various scientifi c and expert committees and other

bodies. These include the Australian Heritage Council, the Threatened Species

Scientifi c Committee, the Biological Diversity Advisory Committee, the Indigenous

Advisory Committee and the Antarctic Science Advisory Committee.

Generally people can participate by making oral or written representations to

the minister or the department or by putting submissions to the various working

groups chaired by the department.

Formal arrangements under the Environment Protection (Sea Dumping) Act

1981, Sea Installations Act 1987, Environment Protection and Biodiversity

Conservation Act 1999, and the environmental impact assessment provisions of

the Antarctic Treaty (Environment Protection) Act 1980 provide for proposals to

be examined publicly and for comments to be received.

Formal arrangements under the Territory of Heard Island and McDonald Islands

Environment Protection and Management Ordinance 1987 provide for public

consultation during the development of management plans.

Formal arrangements under the Environment Protection (Alligator Rivers Region)

Act 1978 provide for public consultation on scientifi c research programmes and

matters relating to the effects on the environment in the Alligator Rivers region of

uranium mining operations.

Procedures for gaining access to information

Freedom of information matters within the department are handled by the Legal

Section in the Policy Coordination Division. Contact details for the freedom of

information offi cer are:

Phone: (02) 6274 1578

Fax: (02) 6274 1587

Email: foi_contact_offi [email protected]

Written requests for access to documents should be addressed to:

The Freedom of Information Coordinator

Legal Section

Department of the Environment and Heritage

GPO Box 787

Canberra ACT 2601

For enquiries specifi c to the Antarctic contact:

The Director

Australian Antarctic Division

Kingston TAS 7050

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Environmental sustainability

This section is presented in accordance with the requirements of section 516A of

the Environment Protection and Biodiversity Conservation Act 1999.

Section 516A requires government departments to report on:

• how the department’s activities accord with the principles of ecologically

sustainable development (subsection 6a)

• how the department’s outcomes contribute to ecologically sustainable

development (subsection 6b)

• the environmental impacts of the department’s operations during the year, and

measures taken to minimise the impacts (subsections 6c, d and e).

How the department applies the principles

The principles of ecologically sustainable development1 are central to the

department’s environment and natural heritage protection activities, all of which

aim to conserve biodiversity and ecological integrity, and to maintain the health,

diversity and productivity of the environment for the benefi t of future generations.

The department administers the Environment Protection and Biodiversity

Conservation Act 1999 and the Natural Heritage Trust of Australia Act 1997, both

of which explicitly recognise these principles.

Examples of how the department applies the principles of ecologically sustainable

development are summarised in the table on page 217. More details on specifi c

programmes are contained in other chapters of this annual report.

Contribution of outcomes

The Department of the Environment and Heritage is the lead Australian

Government agency for developing and implementing national policy,

programmes and legislation to protect and conserve the natural environment.

One of the key functions of the department is to promote and support ecologically

sustainable development.

The department’s outcomes contribute to ecologically sustainable development as

follows:

Outcome 1: Protecting and conserving the environment helps to maintain the

ecological processes on which life depends.

Outcome 2: Australia’s Antarctic interests include a strong focus on protecting the

Antarctic environment, as well as managing the sustainable use of Antarctic marine

resources.

1 The principles of ecologically sustainable development are set out in sections 3A and (in the case of the precautionary

principle) 391 of the Environment Protection and Biodiversity Conservation Act 1999.

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How the department applies the principles of ecologically sustainable development

Principles Activities

Integration principle: decision-making processes should effectively integrate both long-term and short-term economic, environmental, social and equitable considerations

Integrated natural resource management: develops and invests in natural resource management plans and other strategies for integrating management based on the need to maintain ecosystems, including the regional component of the Natural Heritage Trust and regional marine plans. These plans integrate both long-term and short-term economic, environmental, social and equitable considerations

Integrated reporting: publishes its own triple bottom line report (renamed sustainability report) and State of the Environment report

Precautionary principle: if there are threats of serious or irreversible environmental damage, lack of full scientifi c certainty should not be used as a reason for postponing measures to prevent environmental degradation

Environmental impact assessments: applies the precautionary principle to prevent serious environmental damage when assessing the possible environmental impacts of proposed actions, often in the absence of full scientifi c certainty, most notably through the Environment Protection and Biodiversity Conservation Act 1999, and through chemical and gene technology assessment schemes

National response to climate change: develops Australia’s national and international response to the threat of climate change in the absence of full scientifi c certainty, and manages for uncertainty, including preparing Australia for unavoidable climate change impacts

Intergenerational principle: the present generation should ensure that the health, diversity and productivity of the environment is maintained or enhanced for the benefi t of future generations

Pollution prevention: applies laws and other national measures to prevent environmentally harmful substances from entering the environment, notably the various national environment protection measures, the Environment Protection (Sea Dumping) Act 1981, the Hazardous Waste (Regulation of Exports and Imports) Act 1989, and the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989

Whole-of-government policy development: advocates environmental protection in the development of other Australian Government policies, including major energy and water reforms

Community capacity building: administers the Australian Government’s major natural resource management programmes that have an environmental focus, including the Natural Heritage Trust. These programmes increase the capacity of Australians to conserve ecosystems for future generations

Biodiversity principle: the conservation of biological diversity and ecological integrity should be a fundamental consideration in decision-making

Biodiversity conservation: applies laws for the conservation of biodiversity to protect wildlife and places with environmental values, including the Environment Protection and Biodiversity Conservation Act 1999, and through the Natural Heritage Trust, marine protected areas, terrestrial parks and reserves

Valuation principle: improved valuation, pricing and incentive mechanisms should be promoted

Conservation incentives: promotes incentives for protecting wildlife and habitats on private land through covenants. Supports fi shing industry adjustment processes to reduce pressures on the marine environment

Waste reduction incentives: provides incentives for more effi cient uses of resources, including markets for waste products such as used lubricating oils, water effi ciency labelling, and product stewardship programmes to reduce plastic bag consumption and to recycle used oil

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Environmental impacts of operations

The department is a strong advocate of environmental accountability and

sustainability reporting. The department reports in detail on its environmental,

social and economic performance in a sustainability report (previously called a

triple bottom line report). Reporting is in accordance with the Global Reporting

Initiative sustainability reporting (see www.globalreporting.org).

The following section summarises the environmental performance of the

department’s operations during the year. It covers how the department is

minimising the environmental impacts of its operations, and is increasing the

effectiveness of the measures it takes to minimise its environmental impacts.

The department reports on the environmental impacts of four major operational

areas:

• head offi ce in the John Gorton Building and the Edmund Barton Building in

Canberra

• Australian Antarctic Division in Hobart and the Australian Antarctic Territory

• Parks Australia Division

• Supervising Scientist Division in Darwin.

The department will be publishing its sustainability report for 2005–06 later in

the year. The Sustainability Report will contain more detailed information on

the department’s environmental performance and goals. Information on last

year’s Triple Bottom Line Report can also be obtained at www.deh.gov.au/about/

publications/tbl/04-05/index.html.

Results 2005–06

John Gorton Building and Edmund Barton Building

• The department’s environmental management system, which covers the

department’s Canberra-based operations, was recertifi ed in May 2006 to

the upgraded international environmental management system standard

ISO14001:2004.

• The department’s environmental management system moved from a paper-

based to electronic system, in order to streamline maintenance, reporting and

scheduling of environmental objectives, targets and activities.

• A contract was let for the supply and installation of upgraded electricity

metering in part of the John Gorton Building and the Communications Centre.

• Total tenant light and power consumption was up by six per cent from last year

(1 687 601 kWh compared to 1 782 875 kWh).

• Electricity consumption per person per year was 11 per cent higher, rising from

4 849 megajoules to 5 376 megajoules. The department’s consumption is still

well below the Australian Government energy use target of 10 000 MJ/pp/pa.

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• The department continued purchasing 100 per cent accredited greenpower for

the John Gorton Building.

• A water audit of the John Gorton Building conducted in 2005 indicated that,

while the department’s performance was above average for comparable

offi ce-based operations, further improvement can be achieved. The audit

recommendations are being implemented.

• General waste sent to landfi ll decreased by four per cent from 45 to 43.5 tonnes

in 2005–06.

• Recycled waste comprising paper, cardboard, commingled and organic material

increased by seven per cent from 134 to 144 tonnes.

• Greenhouse gas emissions are up 14 per cent from last year (637 compared to

544 kilograms per person per year).

• Membership of the Environmentally Conscious Offi cer Network (ECONet)

support group is now 18 strong, the highest it has been, following the

recruitment of six new members and despite the loss of three members moving

to other areas.

Australian Antarctic Division

• The divisions’ environmental management system was recertifi ed to meet the

requirements of the Australian/New Zealand Standard AS/NZS ISO 14001:2004

in September 2005. This system has operated since 2002 and the current

certifi cation is due to expire in September 2008.

• The division’s environmental policy was reviewed in September 2005 and

reissued.

• An internal environmental audit programme was instituted. Regular audits will

be conducted of all major activity groups of the division.

• An inventory of all the division’s environmental training was prepared for

2006–07 and will be reviewed annually.

• A controlled document system was implemented across the division in

August 2005. This system will ensure that all controlled documents are

reviewed regularly.

• The Kingston, Tasmania offi ces consumed 3.86 million kWh of electricity.

• The Kingston offi ces consumed 6 216 kilolitres of water, unchanged from

last year.

• The division reused or recycled 26 per cent of waste, landfi lled 27 per cent and

treated and disposed of 47 per cent of all waste.

• The warehouse ordered 3 897 reams of A4 and A3 paper on behalf of the

Kingston offi ce and stations.

Parks Australia Division

• Plans of management for individual protected areas include environmental

management goals.

• The Australian National Botanic Gardens introduced a computerised water

management system and has met water restrictions for the past three years.

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• Several parks have water metering: Booderee National Park consumed

15 270 kilolitres of water (up 39 per cent), Kakadu National Park headquarters

consumed 35 830 kilolitres and the Australian National Botanic Gardens

consumed 166 356 kilolitres (up 14 per cent).

• At Booderee National Park, where statistics are available, 1 200 cubic metres of

waste was recycled.

• Available data suggests staff used eight reams of paper per person per year, up

from 6.5 reems last year.

• Electricity use was reduced from last year by nearly eight per cent across Parks

Australia Division, largely due to more effi cient cooling systems.

Supervising Scientist Division

• The division reviewed how scientifi c research activities can be incorporated

into the draft environmental management system, and implemented an action

plan to track achievement of the goals set in the 2004–05 Triple Bottom Line

report against the Global Reporting Initiatives.

• Electricity usage by the Darwin and Jabiru offi ces and Parks Australia North

Darwin offi ce increased by four per cent from last year due to the increased

number of occupants, while the total megajoules per person decreased by

six per cent.

• Fuel usage (transport and other usage) was reduced by 17.7 per cent and distance

travelled by vehicles decreased by 18.3 per cent for the same period last year.

• Water usage at the Darwin offi ce increased from 724 kilolitres last year to

1 403 kilolitres this year, partly because of an increase in aquaculture work in

the Environmental Research Institute of the Supervising Scientist.

• It is the division’s practice, where possible, to purchase ‘green’ stationery and

toiletry products rather than standard products.

• The division used 20.2 per cent less paper this year than last year, exceeding

the 10 per cent target set in the 2004–05 Triple Bottom Line report. This was

achieved through reusing paper printed on one side, installing duplex trays

in printers for double-sided printing, encouraging staff to edit documents on

screen, and disseminating information electronically.

• There was also a 40.4 per cent reduction in the use of non-recycled paper, and

an 8.5 per cent reduction in partly recycled paper.

• Greenhouse gas emissions this year are down by almost 380 tonnes or

33 per cent (1 202.5 tonnes in 2004–05 compared to 822.67 tonnes in 2005–06).

The lower emissions can be attributed to lower fuel usage, reduced distance

travelled by vehicles and less waste produced on site.

• To reduce landfi ll waste, staff sort waste including toner cartridges, glass, paper

and plastic products into recycle bins. Organic waste is recycled through the

worm farm established to provide live feed for breeding populations of fi sh

(purple spotted gudgeon) used for research purposes.

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Human resources

The Department of the Environment and Heritage manages its people to ensure

the achievement of corporate goals and to meet its changing business needs.

Results 2005–06

• Negotiated a new comprehensive three-year collective agreement with

staff and unions, which came into effect in August 2006

• Developed a new comprehensive Australian Workplace Agreement for

non-senior executive service staff, which came into effect in August 2006

• Made substantial progress on a new workforce plan

• Revised the graduate programme and approved an intake of 30 graduates

for 2007

• Finalised the department’s people strategy 2005–2007

• Developed divisional improvement plans to follow up fi ndings of the 2004

staff survey

• Made substantial progress on the development of a leadership programme

• Finalised and approved a new project management methodology

• Audited the Investors in People programme and continued certifi cation to

the international standard.

Workforce Management Committee

The Workforce Management Committee plays a key role in reviewing people

management policies and programmes across the department and ensuring that all

people management activity is closely aligned to the department’s business goals.

The committee is chaired by a deputy secretary and includes all division heads. The

committee’s achievements for the year are summarised in the table on page 201.

People Management Branch restructure

The People Management Branch was restructured during the year. The changes

were made to improve the branch’s services to management and employees

and to increase capacity to develop and deliver new people management and

accommodation projects for the department.

A People Assistance and Advisory Group was established to provide services

to managers and employees in such areas as pay and conditions, recruitment,

occupational health and safety, performance and wellbeing.

A new team-based Human Resource Strategies Group replaced two previously

separate sections with responsibility for the workforce and performance. The

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group concentrated on key people management projects, including negotiating

a new collective agreement and Australian Workplace Agreements, workforce

planning, recruitment and leadership programmes.

The programme services area provides accommodation solutions and is responsible

for offi ce services, the environmental management system and fl eet management.

Staff turnover and retention rates

The department’s retention rate of its ongoing staff for 2005–06 was 89.2 per cent

(compared to 87.5 per cent for the 2004–05 year). The overall separation rate for

the department (including promotions and transfers to other Australian Public

Service agencies) was 28.3 per cent. This fi gure includes the department’s above

average percentage of non-ongoing staff primarily required to meet operational

and seasonal employment needs in the Australian Antarctic Division and some

of the national parks. Excluding these staff, the separation rate for ongoing

departmental staff was 10.9 per cent in 2005–06, slightly above the 2004–05

separation rate of 10.7 per cent.

Makeup of workforce

The department has a diverse workforce carrying out a wide range of

responsibilities and tasks across Australia and in Australia’s external territories.

Key to job classifi cation symbols in the following tables

Secretary Secretary of the department

PEO Principal Executive Offi cer. Refers to Director of National Parks, a

statutory offi ce holder

SES 1–3 Senior Executive Service bands 1–3. Includes Chief of Division,

Australian Antarctic Division

EL 1–2 Executive Level bands 1–2. Includes equivalent Australian Antarctic

Division bands 7–8

APS 1–6 Australian Public Service levels 1–6. Includes equivalent Australian

Antarctic Division levels 1–6. Includes graduate programme recruits

RS 1–3 Research Scientist (equivalent to APS 6 or EL 1), Senior Research

Scientist (equivalent to EL 2) and Principal Research Scientist

(equivalent to EL 2)

AMP 1–2 Antarctic Medical Practitioner levels 1–2 (Expeditioner)

AE 1–3 Antarctic Expeditioner bands 1–3

LO 1–3 Legal Offi cer (equivalent to APS 3–6), Senior Legal Offi cer (equivalent

to EL 1) and Principal Legal Offi cer (equivalent to EL 2)

PAO 1–4 Public Affairs Offi cer 1–2 (equivalent to APS 3–6), Public Affairs Offi cer 3

(equivalent to EL 1) and Senior Public Affairs Offi cer (equivalent to EL 2)

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Employment agreements

All senior executive service employees have Australian Workplace Agreements.

All ongoing substantive executive level 1 and 2 employees and equivalent

classifi cations are also offered Australian Workplace Agreements. Agreements are

offered to other employees on a case-by-case basis. Existing non-senior executive

service Australian Workplace Agreements expired on 30 June 2006. A revised

Australian Workplace Agreement was developed during the year and a new round

of offers was made in August 2006. Current senior executive service Australian

Workplace Agreements have a nominal expiry date of June 2007.

Remuneration for employees on Australian Workplace Agreements is based on

ensuring that individuals are rewarded according to their assessed contribution in

meeting performance expectations, remuneration is competitive with other similar

organisations, and that remuneration arrangements are fl exible so that the department

can recruit and retain staff with special skills. The payment of a performance bonus is

based on the individual’s performance during an appraisal cycle.

The department’s other Australian Public Service employees, who make up the

bulk of the workforce, are covered by either the department’s certifi ed agreement,

which notionally expired on 30 June 2006, or the Australian Antarctic Division’s

certifi ed agreement. Development of a new whole of department collective

agreement under the work choices provisions of the Workplace Relations Act 2006

to replace the two current certifi ed agreements was substantially completed by

30 June 2006. The new collective agreement will run for three years and includes

for the fi rst time the Australian Antarctic Division. The new collective agreement

will provide pay rises to staff over the life of the agreement and improve some

conditions. The increased cost of the agreement is offset by productivity

improvements.

Number of employees under various types of employment agreements (as at 30 June 2006)

Type of agreement

Classifi cation

TotalSES non-SES

Australian Workplace Agreements 49 483 532

Certifi ed agreement (department) 0 1 188 1 188

Certifi ed agreement (Australian Antarctic Division) 0 275 275

Total 49 1 946 1 995

Note:

• Australian Workplace Agreement fi gures include the Australian Antarctic Division.

• The fi gures for Australian Workplace Agreements do not include the principal executive offi cer position and exclude employees on temporary transfer to another agency who would otherwise be covered by an Australian Workplace Agreement.

• All fi gures include staff on leave without pay and exclude irregular or intermittent employees.

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Base salaries—excluding the Australian Antarctic Division (as at 30 June 2006)

Classifi cation Certifi ed agreement Australian Workplace Agreement

Australian Public Service Level 1–2 $31 665–$40 998 $31 665–$40 998

Australian Public Service Level 3 $41 877–$46 119

Australian Public Service Level 4 $46 938–$50 652 $46 938–$50 652

Australian Public Service Level 5 $51 370–$55 062 $51 370–$55 062

Australian Public Service Level 6 $56 028–$64 841 $56 028–$64 841

Executive Level 1 $70 254–$78 061 $70 254–$88 061

Executive Level 2 $81 029–$94 936 $81 029–$108 150

Public Affairs Offi cer 1 $46 938–$55 063

Public Affairs Offi cer 2 $59 805–$66 101

Public Affairs Offi cer 3 $73 902–$91 865 $73 902–$91 865

Senior Public Affairs Offi cer 1–2 $94 936–$99 700 $97 936–$102 700

Legal Offi cer $42 942–$64 841

Senior Legal Offi cer $70 254–$85 482 $70 254–$85 482

Principal Legal Offi cer $91 865–$97 361 $91 865–$100 361

Research Scientist $59 805–$78 061 $59 805–$78 061

Senior Research Scientist $81 029–$96 552 $81 029–$99 552

Principal Research Scientist $98 170–$109 934 $98 170–$112 934

Senior Principal Research Scientist $116 189–$126 690 $116 189–$127 800

Senior Executive Service 1 $114 800–$132 200

Senior Executive Service 2 $138 400–$157 100

Senior Executive Service 3 $171 400–$198 400

Note:

• Does not include salaries relating to the principal executive offi cer position or the secretary as they are not employed under the certifi ed agreement or an Australian Workplace Agreement.

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Base salaries—Australian Antarctic Division (as at 30 June 2006)

Classifi cation Certifi ed agreement Australian Workplace Agreement

Australian Antarctic Division Band 1 $32 685–$35 715

Australian Antarctic Division Band 2 $36 787–$42 483

Australian Antarctic Division Band 3 $42 644–$45 239

Australian Antarctic Division Band 4 $46 599–$50 920

Australian Antarctic Division Band 5 $52 448–$55 639

Australian Antarctic Division Band 6 $57 310–$64 501

Executive Level 1 $72 599–$77 020 $73 325–$77 790

Executive Level 2 $84 160–$100 495 $85 002–$101 500

Research Scientist $57 310–$77 020 $67 101–$77 790

Senior Research Scientist $79 330–$100 495 $80 123–$101 500

Principal Research Scientist $103 510–$113 108 $104 545–$114 239

Senior Principal Research Scientist $119 998–$131 125 $121 198–$132 436

Antarctic Medical Practitioner Level 1 (Head Offi ce) $94 728–$106 614 $95 675–$107 680

Antarctic Medical Practitioner Level 2 (Head Offi ce) $109 814–$119 998 $110 912–$121 198

Expeditioner Band 1 $45 072–$60 354

Expeditioner Band 2 $55 473–$74 866

Expeditioner Band 3 $77 047–$88 349

Antarctic Medical Practitioner Level 1 (Expeditioner) $108 894–$121 991

Senior Executive Service 1 $114 800–$127 800

Senior Executive Service 2 $138 400–$157 100

Chief of Division 1 $147 200–$160 100

Note:

• Senior executive service employees may access a further salary point, subject to continuing high performance.

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Performance pay for employees up to executive level 2

Performance pay statistic

Classifi cation

APS 1–6 Executive Level 1 Executive Level 2

2004–05 2005–06 2004–05 2005–06 2004–05 2005–06

Number of performance payments

11 18 194 252 154 161

Average performance pay

$2 597 $2 659 $4 533 $4 112 $5 580 $5 732

Range of performance pay

$1 135–$3 715

$422–$5 259

$491–$9 519

$243–$9 007

$999–$10 893

$416–$12 135

Total paid $28 562 $47 854 $879 341 $1 036 289 $859 299 $922 807

Notes:

• Performance pay bonuses for the 2003–04 appraisal cycle were paid during 2004–05. Performance pay bonuses for the 2004–05 appraisal cycle were paid during 2005–06.

• Some payments were made on a pro-rata basis as employment did not span the full appraisal period.

Performance pay for senior executive service employees

Performance pay statistic

Classifi cation

SES bands 2 and 3 SES band 1

2004–05 2005–06 2004–05 2005–06

Number of performance payments 10 12 31 26

Average performance pay $11 455 $12 533 $7 932 $8 682

Range of performance pay $7 156–$14 658

$7 476–$23 678

$2 309–$8 897

$2 591–$15 728

Total paid $114 553 $150 402 $245 898 $225 743

Notes:

• Performance pay bonuses for the 2003–04 appraisal cycle were paid during 2004–05. Performance pay bonuses for the 2004–05 appraisal cycle were paid during 2005–06.

• Some payments were made on a pro-rata basis as employment did not span the full appraisal period.

• Payments do not include the secretary and the principal executive offi cer

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Performance management

Following feedback from the staff survey, the department revised the performance

development scheme and implemented changes on 1 July 2005. Key changes

included:

• simpler forms

• clearer responsibilities for each employee and supervisor for completing

performance agreements

• improved links between the individual learning plans and wider departmental

development programmes

• new training programmes on how to write a good performance agreement,

how to develop good performance expectations, and how to give and receive

feedback.

Participation in the scheme is expected for all ongoing staff and for non-ongoing

staff engaged for three months or more. Salary rises set out in the certifi ed

agreement are subject to a 95 per cent participation rate in the scheme, which the

department has achieved.

Learning and development

Ongoing strategies

Graduate programme: The department places signifi cant importance on

recruiting graduates from a variety of academic disciplines to participate in the

graduate programme. Existing departmental employees also have the opportunity

to participate in the programme. The department also offers a number of positions

to graduates recruited through the Australian Public Service Commission’s

Indigenous Graduate Programme. Graduates are provided with professional

development including training courses, work rotations, and mentoring. In

2005, 18 graduates completed the department’s graduate programme and have

been placed within the department. In 2006, 16 graduates were recruited. The

department is planning to expand its graduate intake for 2007 to 30 and has

actively sought applicants from all academic disciplines with particular emphasis

on economics, commerce and law backgrounds. The programme continues to

increase the diversity and depth of talent in the department’s workforce while

introducing fresh ideas and attitudes to the workplace.

Online learning: The department continued to use online learning to educate

employees about concepts, business processes and how to use computer

applications. Online learning programmes developed during the year included

an orientation programme for new staff, an occupational health and safety

programme, and a vendor request and purchasing cards programme. A number

of programmes were used as an assessment and compliance tool to help staff

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remember information they need to carry out a particular business function, for

example, ensuring purchasing cardholders know their responsibilities.

Cultural diversity programmes: The department held cross-cultural and

cultural diversity development programmes to enhance the appreciation of

cultural diversity. Employees participating in these programmes can broaden

their understanding of Indigenous and other cultural groups and gain experience

in collaborating with these groups. As part of NAIDOC week the department

provided cross-cultural training courses. Feedback from participants, who ranged

from graduates to senior executives, highlighted the understanding they gained of

working with people from Indigenous cultures.

Seminar programmes: The department holds an executive seminar series and a

human resources seminar series throughout the year. These seminars are open to

all staff. They enable senior managers of the department to share their knowledge

and experience and help staff to build their supervisory and people management

skills.

In 2006 the seminar series was expanded to include an ‘insights’ series, which

highlights signifi cant work being undertaken across the department, and a

programme on environmental economics for non-economists. The environmental

economics programme was tailored to the needs of the department and targeted

staff at executive level 1 and above. The fi rst course attracted a high level of

interest, and was substantially over-subscribed, with over 90 applications received

for the 30 places on offer.

New strategies

Online occupational health and safety training package: The department

implemented an online occupational health and safety training package, which all

staff were required to complete.

People strategy: In October 2005 the workforce management committee

approved the department’s people strategy 2005–2007. This strategy supports the

department’s corporate and strategic plans. The strategy sets out the values, policy

framework, delivery model, goals and strategies of the department for the next

two years in relation to people management.

Workplace diversity programme: The department’s workplace diversity

programme has three objectives:

• to increase awareness and acceptance of workplace diversity principles among

staff at all levels of the organisation

• to foster diversity in the department and use the diverse skills, experiences and

cultural backgrounds of staff

• to ensure the department has fl exible workplace practices to allow staff to

balance their work and personal lives.

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Individual learning: As part of the department’s performance and development

scheme, individual employees must complete learning plans with their supervisor,

to identify learning needs and solutions related to the work they are required

to complete under their performance agreement. The staff survey raised some

concerns about the lack of links between individual learning plans and the wider

divisional and departmental learning and development programmes. As a result,

the learning plans have been redesigned to clearly identify both the learning

needs and the solutions. Procedures have been put in place to ensure the agreed

learning solutions are passed on to the support units within each division and

the department’s People Management Branch, to be taken into account in

their planning for both divisional and departmental learning and development

programmes.

Leadership development: The department is preparing a leadership

development programme based on the Integrated Leadership System developed

for the Australian Public Service Commission. The programme is for all staff with

supervisory responsibilities. It will provide development to support leaders and

managers and will improve leadership skills in the department. The programme

will be launched in the latter half of 2006.

Mobility and development: Eight executive level staff participated in a new

mobility programme during the year. The programme aims to broaden the

leadership skills, experience and opportunities of employees at this level.

Rewards and recognition

The department participated in formal Australian Public Service wide recognition

programmes in 2005–06 as well as holding department-wide employee recognition

schemes to reward outstanding performance.

Twenty-one Australia Day

achievement awards were

presented to individuals and

teams within the portfolio at the

department’s 2006 Australia Day

award ceremony on 25 January.

In September 2005 the Minister

for the Environment and Heritage

presented presented six team

awards and two individual awards

in recognition of outstanding

achievements for the portfolio.

The Secretary’s Awards continued

to recognise the outstanding

Peter Graham receiving an award from Howard Bamsey. Peter received an Australia Day award from the department in 2006 for his role in leading the team that produced the department’s 2004–05 annual report. Photo: Mark Mohell

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contributions of staff. Fifteen awards were presented to individuals and teams

in December 2005 in three categories: sharing knowledge and experience

within teams, mentoring and role models for staff, and consistent and effective

contribution to the department’s goals.

Work–life balance

The department remains committed to the work–life balance of its employees. The

department’s certifi ed agreements offer a range of leave provisions which assist

employees to meet commitments outside work.

As part of the 2004–2006 certifi ed agreement the department conducted a

feasibility study into the provision of childcare services for employees located in

Canberra. The report provided a number of options which are currently under

consideration by management.

The department involves its staff in decision-making processes through

informal and formal mechanisms such as workshops, surveys, the department’s

Consultative Committee and related divisional consultative committees.

Occupational health and safety

This section is presented in accordance with the requirements of section 74 of the

Occupational Health and Safety (Commonwealth Employment) Act 1991.

The department is committed to preserving the health, safety and welfare of its

staff and any other persons at or near work sites.

The department’s occupational health and safety policy aims to provide and

maintain a safe and healthy workplace in line with the requirements of the

Occupational Health and Safety (Commonwealth Employment) Act 1991. The

department works to achieve high standards of occupational health, safety and

rehabilitation in all its work locations and operations by providing a safe system of

work to prevent work-related injuries and illnesses.

Under its rehabilitation policy and guidelines, the department supports injured

and ill employees and provides an early-return-to-work programme.

The department’s Canberra-based Occupational Health and Safety Committee

meets regularly to address a wide range of issues. Each of the mainland national

parks, other departmental offi ces on the mainland and in Tasmania, and the

Antarctic stations maintain local occupational health and safety committees to

address site-specifi c issues.

A network of health and safety representatives looks after the health and welfare

of employees within designated workgroups throughout the department. On

appointment, all health and safety representatives undergo Comcare-approved

training to enable them to fulfi l their roles.

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Number of reports under section 68 of the Act

Section 68 of the Occupational Health and Safety (Commonwealth Employment)

Act 1991 relates to the requirement for employees to report to Comcare accidents

or incidents that cause death or serious personal injury or incapacity, or that are

otherwise dangerous. The following table shows the number of accidents or

occurrences that were reported to Comcare under section 68 of the Act.

Workplace Number of reports

Canberra workplaces 3

Parks Australia remote workplaces 25

Australian Antarctic Division 6

Investigations conducted during the year

Four internal investigation reports relating to the department’s Antarctic

operations were provided to Comcare. No directions were issued under section 45

of the Occupational Health and Safety (Commonwealth Employment) Act 1991,

nor were any notices given under sections 29, 46 or 47 of the Act.

Contaminated water incident

On Friday 16 December 2005 the department received a report on the quality of

the rain water supply to the refurbished former Communications Centre of the

John Gorton Building.

The report indicated the levels for lead, zinc and copper were above those

prescribed in the Australian Drinking Water Guidelines and the pH level was

below that prescribed in the guidelines. The contaminated rain water supply was

immediately turned off and replaced with mains water supplied by ACTEW/AGL.

Comcare was advised of the incident. The ACT Chief Health Offi cer was

immediately requested to assess the level of public health risk associated with

these readings and advised the department that there was a low risk.

The department engaged a consultant occupational physician to assist staff and the

department in the assessment of any health impacts.

The risk to individuals was best determined by testing for blood lead. The

department contacted and tested employees who may have been exposed;

170 employees presented for testing.

All results received were within the limits specifi ed by the National Health and Medical

Research Council for blood lead and no cases of lead poisoning were identifi ed.

Comcare conducted an independent investigation. The report was provided to the

department in August 2006.

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Agreements with employees

The department has an Occupational Health and Safety Policy and Agreement which

covers all aspects of its work other than Antarctic operations. The Australian Antarctic

Division has a separate agreement in light of the specialised occupational health and

safety challenges faced by expeditioners and others working in the Antarctic.

The agreements recognise sharing of responsibilities and the commitment of

all parties to maintaining health and safety in the workplace, with the aim of

minimising the human and fi nancial costs of injury and illness through active

prevention strategies.

Routine support for employees

The following measures undertaken during the year are routine support that the

department provides for its employees.

Measure Results 2005–06

Orientation sessions to inform new and ongoing employees of occupational health and safety legislation, responsibilities and procedures

136 employees from the department attended orientation sessions

All new employees of the Australian Antarctic Division attended orientation sessions

Supervisors and managers of the Australian Antarctic Division attended general training, incident analysis and asbestos awareness training

Training for fi rst aid offi cers, health and safety representatives and workplace contact offi cers

20 employees, 39 fi rst aid offi cers and 43 park rangers were trained in fi rst aid; 22 health and safety representatives received appropriate training

All wintering Antarctic expeditioners attended fi rst aid training

Ergonomic and work station assessments by in-house and external occupational therapists

328 work station assessments were conducted for the department

52 work station assessments were conducted—all in-house—for the Australian Antarctic Division

Reimbursement of the costs of having eyesight tests for using screen-based equipment

60 tests were reimbursed

Reimbursement of the costs of being screened for skin cancer and hearing loss, for fi eld-based employees

All Antarctic expeditioners have hearing tests as part of their recruitment medical

Employees Assistance Programme, which is also available to the families of employees

216 new appointments were made with Davidson Trahaire Corpsych, the department’s provider

31 people used the service of OSA Group, the Australian Antarctic Division’s provider

Testing and tagging of electrical equipment in the Canberra offi ces

793 items were tested and tagged

Blood tests in relation to John Gorton Building basement water contamination

170 blood tests were conducted

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Compensation and rehabilitation

Under the rehabilitation policy and guidelines, the department continued to

provide support for injured and ill employees and provided an early-return-to-

work programme. The following table summarises activity in this area.

Measure Results 2005–06

Number of claims lodged with Comcare 48 claims, includes 16 from the Australian Antarctic Division

Return-to-work plans in place for injured staff 14 plans, includes 1 from the Australian Antarctic Division

Response to workers compensation claims All new claims were responded to with 13 being referred to an approved rehabilitation provider for the management of a return-to-work plan. Of these 13 claims, 11 achieved a successful return to work within 11.5 weeks.

Other measures taken during the year

The department undertook other measures during the year to ensure the health,

safety and welfare at work of employees and contractors as follows:

• introduced an online occupational health and safety training programme called

SAFETRAC

• improved the occupational health and safety programme (ParkSafe) for staff

working in the Parks Division

• developed an online occupational health and safety management system

(Safety-Suite), which enables online reporting of incidents to Comcare,

investigation and management of incidents and hazards, processing of

compensation claims and monitoring of rehabilitation programmes

• developed an online occupational health and safety information system for the

department’s intranet, including a policy database and relevant information

required by staff

• developed a new online orientation programme containing occupational health

and safety and emergency procedures for new employees.

The Australian Antarctic Division:

• revised its fi eld manual in October 2005. The manual describes the currently

recommended practices for Antarctic expeditions to protect personal safety

and the environment

• continued to improve occupational health and safety management systems.

Each branch has a two-year safety action plan with key performance indicators

to measure progress. Training is provided to all expeditioners and a series of

training sessions are provided for Kingston-based staff.

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Commonwealth Disability Strategy

The Commonwealth Disability Strategy 2005 includes a performance reporting

framework built around the fi ve key roles performed by Australian Government

organisations. These roles are policy adviser, regulator, purchaser, provider and

employer. This framework was established to ensure consistency in measurement

of and reporting on achievements in implementing the strategy.

The department’s performance in implementing the strategy is summarised in the

following table.

The department’s disability action plan 2004–2006 is being reviewed and revised

to ensure that the department continues to meet the performance reporting

requirements established by the Commonwealth Disability Strategy.

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Department’s performance in implementing the Commonwealth Disability Strategy

Performance indicator Results 2005-06

Policy adviser

New or revised policy/programme proposals assess the impact on the lives of people with disabilities prior to decision

The department will shortly launch the 2006–07 disability action plan. The plan applies to all employees, contractors, and clients of the department

People with disabilities are included in consultation about new or revised policy/ programme proposals

The current disability action plan provides a checklist for developing reports, policies and procedures on consultation with people with disabilities. Directors and policy developers are required to complete this checklist before fi nalising their policy documents

Public announcements of new or proposed policy/programme initiatives are available in accessible formats for people with disabilities

Community Information Unit provides access to information on the department’s activities

The department maintains extensive websites where documents are available in PDF and html format. The department’s website meets the Australian Government online standards that relate to access for people with disabilities (www.deh.gov.au/about/accessibility.html). The website has been developed to display adequately on all commonly used browsers and to work effectively with accessibility hardware and/or software. Although it is designed for an 800 x 600 screen resolution, this site will scale to both higher and lower screen resolutions

The department makes online resources accessible to people with technical constraints, such as old browsers and low speed internet connections

For technical reasons and to meet some legal requirements, the department’s website has a limited number of documents that cannot be provided in the preferred HTML format. In such cases, contact details have been provided for their supply in alternative formats

Regulator role

Publicly available information on regulations and quasi-regulations is available in accessible formats for people with disabilities

Publicly available regulatory compliance reporting is available in accessible formats for people with disabilities

Legislation is accessible via the internet (www.deh.gov.au/about/legislation.html)

Additional fact sheets are made available on request from the Community Information Unit

Legislative instruments are accessible via the internet (www.comlaw.gov.au)

Administrative instruments are available in the Australian Government Gazette, and where required on the department’s website

The department responds to specifi c requests by fax, email or post

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Performance indicator Results 2005-06

Purchaser role

Processes for purchasing goods and services with a direct impact on the lives of people with disabilities are developed in consultation with people with disabilities

The department’s procurement policies are consistent with the requirements of the Disability Discrimination Act 1992

The department has complaints and grievance mechanisms in place

Purchasing specifi cations and contract requirements for the purchase of goods and/or services are consistent with the requirements of the Disability Discrimination Act 1992

The department’s procurement guidelines complement the Commonwealth Procurement Guidelines, January 2005, and are consistent with the requirements of the Disability Discrimination Act 1992

Long and short form contracts both make reference to the Disability Discrimination Act 1992. The department’s request for tender template does not make reference to the Act

Publicly available information on agreed purchase specifi cations is provided in accessible formats for people with disabilities

The department’s procurements valued at $80 000 or more are advertised and are available for download on AusTender, which meets the Australian Government online standards that relate to access for people with disabilities

Complaints/grievance mechanisms, including access to external mechanisms, are available to address issues and concerns about purchasers’ performance

The department has a complaints and grievance mechanism in place in accordance with the Commonwealth Procurement Guidelines

Provider role

Mechanisms are in place for quality improvement and assurance

Information regarding parks and reserves is available in accessible formats on the department’s website (www.deh.gov.au/parks/commonwealth) and in hard copy from park management

Wheel chair access is provided in some parks for people with a disability. However, physical access to the terrestrial reserves varies according to the nature of the terrain

Service charters have been developed that specify the roles of the provider and consumer and adequately refl ect the needs of people with disabilities

The department has a new service charter. The charter commits the department to be respectful and sensitive to the needs of all clients

Complaints/grievance mechanisms, including access to external mechanisms, are available to address concerns raised about performance

A client service offi cer is available to accept feedback and coordinate the department’s response to members of the public who raise concerns about service standards

There were no disability related complaints in 2005–06

Department’s performance in implementing the Commonwealth Disability Strategy continued...

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Performance indicator Results 2005-06

Employer role

Recruitment information for potential job applicants is available in accessible formats on request

Applicants are requested to advise whether they require accessible formats when preparing their application. Applicants are also asked to advise whether special arrangements are required for them during the recruitment process

Agency recruiters and managers apply the principle of reasonable adjustment

The department’s recruitment and selection policy was implemented on 1 July 2005 requiring recruiters and managers to apply this principle

Training and development programmes consider the needs of staff with disabilities

All managers are responsible for ensuring the training and development needs of all of their staff are appropriately met

Training and development programmes include information on disability issues as they relate to the content of the programmes

For in-house training, all internal and external providers must ensure that disability issues are addressed in the delivery of their programmes

Managers are responsible for monitoring whether information on disability issues is provided when referring staff to individual programmes provided on the private market

Complaints or grievance mechanisms, including access to external mechanisms, are in place to address issues and concerns raised by staff

The certifi ed agreement 2004–2006 sets out complete procedures for complaints and grievances. These procedures apply to all employees and situations

Department’s performance in implementing the Commonwealth Disability Strategy continued...

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Finances

Financial performance

The department performed well against its budget this fi nancial year.

Departmental and administered expenses were $906.324 million. This is slightly

greater than expected (by $4.847 million or 0.5 per cent).

Outcome 1 recorded a $3.7 million defi cit, which was slightly favourable to the budget,

primarily due to investments in information technology infrastructure to improve

productivity and effi ciencies. Outcome 2 recorded a $25.5 million defi cit primarily

due to the adoption of the new Australian Equivalents to International Financial

Reporting Standards and increased operating costs such as fuel and shipping.

The Natural Heritage Trust expended 99.95 per cent of its $312.3 million budget.

Other administered programmes were generally in line with budget expectations

apart from a $27 million transaction relating to Point Nepean, which under the new

accounting standards was treated as a prepayment.

Summary of fi nancial results

2005

Actuals$000’s

2006PSAES(a)

budget$000’s

2006

Actuals$000’s

2006

Variance$000’s

Department of the Environment and Heritage

Departmental Outcome 1 RevenueExpensesSurplus/(Defi cit)

242 714(232 012)

10 702

275 814(280 650)

(4 836)

277 375(281 114)

(3 739)

1 561(464)

1 097

Departmental Outcome 2 RevenueExpensesSurplus/(Defi cit)

90 245(116 839)

(26 594)

95 556(95 556)

0

98 623(124 106)

(25 483)

3 067(28 550)(25 483)

Total departmental RevenueExpensesSurplus/(Defi cit)

332 959(348 851)

(15 892)

371 370(376 206)

(4 836)

375 998(405 220)

(29 222)

4 628(29 014)(24 386)

Administered expenses, specifi c payments to the states and territories and special accounts

Administered expenses Outcome 1

RevenuesExpenses

10 418(97 018)

9 392(177 365)

13 078(154 672)

3 68622 693

Administered expensesOutcome 2

RevenuesExpenses

00

0(320)

0(320)

00

Administered specifi c payments to the states and territories and special accounts

RevenuesExpenses

4 466(327 968)

3 498(347 586)

7 948(346 112)

4 4501 474

Total administered RevenuesExpenses

14 884(424 986)

12 890(525 271)

21 026(501 104)

8 13624 167

(a) PSAES = Portfolio Supplementary Additional Estimates Statements

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The two comparison tables below explain the main features of the department’s

funding in 2005–06. The department’s funding is listed in more detail in the

summary resource tables on the following pages.

Comparison of departmental funding with budget

Funding class Revenues Expenses

DepartmentalOutcome 1

Increased from 2004–05 by $34.661 million due to the fi rst full year impact of the absorption of the Australian Greenhouse Offi ce and the National Oceans Offi ce ($9.64 million), and the following new measures:

• Tasmanian Community Forest Agreement ($4.8 million)

• Kakadu and Uluru–Kata Tjuta National Parks ($1.2 million)

• Commonwealth Environment Research Facilities ($1.8 million)

• Regional Marine Planning ($9.4 million)

• ATSIS(a) funding ($1.5 million)

• Water wise communities ($0.4 million)

• National Pollutant Inventory ($1.3 million)

• Protecting Australia’s Biodiversity Hotspots ($2.47 million)

• Other minor adjustments to programmes ($2.15 million)

Are favourable to budget by $1.561 million due to additional recoveries from the Natural Heritage Trust

Increased from 2004–05 by $49.102 million due to the fi rst full year impact of the absorption into the department of the Australian Greenhouse Offi ce and the National Oceans Offi ce and new measures as outlined in the adjacent column

Are greater than budget by $0.464 million due to additional Comcare insurance expenses for workers compensation offset by minor timing of programme expenses

DepartmentalOutcome 2

Increased from 2004–05 by $8.378 million due to the new measure for the Australia–Antarctica Airlink ($6.820 million) and additional insurance recoveries ($1.558 million)

Are favourable to budget ($3.067 million) due to greater than expected insurance recoveries

Increased from 2004–05 by $7.267 million due to the new measure for the Australia–Antarctica Airlink and the adoption of the AEIFRS(b) as well as higher fuel and shipping costs

Are unfavourable to budget by $28.550 million due to the unbudgeted adjustments relating to AEIFRS and the increases in fuel and shipping costs

(a) ATSIS = Aboriginal and Torres Strait Islander Services(b) AEIFRS = Australian Equivalents to International Financial Reporting Standards

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Comparison of administered funding with budget

Funding class Revenues Expenses

AdministeredOutcome 1

Grant refunds were greater than expected to budget by $2.355 million and greater than expected regulatory fees by $1.331 million

Are greater than 2004–05 by $57.654 million due to:

• Commonwealth Environment Research Facilities ($3.0 million)

• Natural Heritage Investment Initiative ($2.2 million)

• Cathedral restorations ($9.0 million)

• Australian Wildlife Hospital ($2.5 million)

• HMAS Sydney ($1.3 million)

• Tasmanian Community Forest Agreement ($2.2 million)

• ATSIS(a) funding ($3.4 million)

• Great Barrier Reef Structural Adjustment ($4.0 million)

• Daintree Conservation Initiative ($2.7 million)

• Maintaining Australia’s Biodiversity Hotspots ($7.2 million)

• Regional Natural Heritage Programmes ($3.64 million)

• Climate Change Programmes ($16.51 million)

Are favourable to budget ($22.693 million) due to the different accounting treatment from actuals to budget. This includes a prepayment for restoration works of $27 million to Pt Nepean Community Trust offset by administrative costs for Tasmanian Community Forests initiatives

AdministeredOutcome 2

Not applicable Are greater than 2004–05 by $0.320 million due to the new measure to restore Mawson’s Huts in the Antarctic

No variance

AdministeredSpecifi c payment to the states and special accounts

Not applicable Are greater than 2004–05 due to new monies as above but attributable to the states and territories

(a) ATSIS = Aboriginal and Torres Strait Islander Services

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Summary resource tables

Key to column headings in the following tables

2005 Actuals Actual revenues and expenses for 2004–05 as at 30 June 2005

2006 PSAES Budget The department’s revised budget shown in the 2005–06

Portfolio Additional Estimates Statements plus adjustments

through the Portfolio Supplementary Additional Estimates

Statements

2006 Actuals Actual revenues and expenses for 2005–06 as at 30 June 2006

2006 Variance The difference between the revised budget and the actual

results for 2005–06, i.e. 2006 Actuals minus 2006 Budget

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Overview of Financial Results

Outcome 1 – Departmental resourcing

2005

Actuals$000’s

2006PSAESBudget$000’s

2006

Actuals$000’s

2006

Variance$000’s

Response to climate change

RevenueExpensesSurplus/(Defi cit)

48 473(39 875)

8 598

65 029(65 867)

(838)

64 972(64 029)

943

(57)1 8381 781

Conservation of the land and inland waters

RevenueExpensesSurplus/(Defi cit)

81 026(76 324)

4 702

95 154(95 650)

(496)

96 947(99 143)

(2 196)

1 793(3 493)(1 700)

Conservation of the coasts and oceans

RevenueExpensesSurplus/(Defi cit)

32 364(33 938)

(1 574)

29 225(29 718)

(493)

29 530(30 512)

(982)

305(794)(489)

Conservation of natural, Indigenous, and historic heritage

RevenueExpensesSurplus/(Defi cit)

24 121(24 551)

(430)

23 527(25 110)

(1 583)

23 398(22 830)

568

(129)2 2802 151

Response to the impacts of human settlements

RevenueExpensesSurplus/(Defi cit)

56 730(57 324)

(594)

62 879(64 305)

(1 426)

62 529(64 601)

(2 073)

(351)(296)(647)

Total Outcome 1 RevenueExpensesSurplus/(Defi cit)

242 714(232 012)

10 702

275 814(280 650)

(4 836)

277 375(281 115)

(3 740)

1,561(465)1 096

Outcome 2 – Departmental resourcing

2005

Actuals$000’s

2006PSAESBudget$000’s

2006

Actuals$000’s

2006

Variance$000’s

Antarctic policy

RevenuesExpensesSurplus/(Defi cit)

32 487(42 062)

(9 575)

31 987(31 987)

0

35 503(44 676)

(9 173)

3 516(12 689)

(9 173)

Antarctic science

RevenuesExpensesSurplus/(Defi cit)

57 758(74 777)(17 019)

63 569(63 569)

0

63 120(79 430)(16 310)

(449)(15 861)(16 310)

Total Outcome 2 RevenuesExpensesSurplus/(Defi cit)

90 245(116 839)

(26 594)

95 556(95 556)

0

98 623(124 106)

(25 483)

3 067(28 550)(25 483)

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Outcome 1 and 2 – Administered

2006PSAESBudget$000’s

2006

Actuals$000’s

2006

Variance$000’s

Outcome 1 – Administered revenues

Maintaining Australia’s Biodiversity HotspotsEnvironment Management ChargeWater Effi ciency Labelling SchemeWildlife protection feesMiscellaneous revenue

07 4001 992

03 498

2 0507 5001 295

2056 595

2 050100

(697)205

3 097

12 890 17 645 4 755

Maintaining Australia’s Biodiversity HotspotsTasmanian Community Forest AgreementAustralian Biological Resources StudyBio Fuels – Ministerial Council on Energy Additional and Australian Government Task ForceNational Environment Protection CouncilImproving Launceston’s Air QualityWater Effi ciency Labelling SchemeCommonwealth Environment Research FacilitiesChurches and CathedralsGrants-in-Aid National TrustsRegional Natural Heritage ProgrammeIndigenous Heritage ProgrammeDaintree Conservation InitiativeNational Heritage Investment InitiativeAustralian Wildlife HospitalRepresentative Areas Programme – Structural Adjustment PackageStructural Adjustment Package – EnhancementStructural Adjustment Package – Business Restructuring AssistanceAustralian Government’s Community Water GrantsRenewable Energy Equity FundAlternative Fuels Conversion ProgrammePhotovoltaic Rebate ProgrammeRenewable Energy Commercialisation ProgrammeRenewable Remote Power Generation ProgrammeRenewable Energy Equity Fund – writedown of receivableGreenhouse Gas Abatement Programme Action on energy effi ciencyLocal greenhouse actionGreenhouse action to enhance sustainability in regional AustraliaLow emissions technology and abatementInfl uencing international climate change policyClimate change science programmeSolar CitiesPoint Nepean Community Trust

(4 124)0

(1 869)

(355)(429)(200)(582)

(2 885)(10 500)

(842)(4 358)(3 256)(2 650)(2 200)(2 500)

(157)(4 000)

(28 460)(46 210)

(1 338)(862)(357)

(1 954)(2 103)

0(13 339)

(800)(400)

(3 400)(2 235)(1 450)(6 000)

(550)(27 000)

(1 919)(5 500)(1 865)

(356)(429)(200)(245)

(2 815)(10 500)

(842)(4 260)(3 261)(2 650)(2 200)(2 500)

(157)(4 000)

(28 460)(46 149)

(1 338)(223)(357)

(1 694)(2 103)(2 840)

(13 318)(800)(404)

(3 400)(1 950)(1 390)(6 000)

(550)0

2 205(5 500)

4

100

33770

00

98(5)000000

610

6390

2600

(2 840)21

0(4)0

2856000

27 000

Outcome 1 – Total administered expenses (177 365) (154 675) 22 690

Outcome 2 – Administered expenses

Mawson’s Huts Foundation expedition (320) (320) 0

Outcome 2 – Total administered expenses (320) (320) 0

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Outcome 1 and 2 – Administered continued ...

2006PSAESBudget$000’s

2006

Actuals$000’s

2006

Variance$000’s

Outcome 1 – Administered specifi c payments to the states and territories

Development of Sewerage Schemes for Boat Harbour and Sisters Beach TasmaniaRenewable Remote Power Generation ProgrammePhotovoltaic Rebate ProgrammeStrengthening Tasmania - Tamar River PylonsStrengthening Tasmania - Low Head Precinct

(108)

(26 655)(5 000)(1 000)

(150)

(108)

(26 643)(4 265)(1 000)

(150)

0

12736

00

Outcome 1 – Total administered specifi c payments to the states and territories

(32 913) (32 166) 748

Outcome 1 – Administered special accounts

Natural Heritage TrustOzone Protection and Synthetic Greenhouse Gas AccountNatural Cultural Heritage Account

(312 391)(1 600)

(682)

(312 170)(1 294)

(479)

221306203

Outcome 1 – Total administered special accounts (314 673) (313 943) 730

Outcome 1 – Total administered specifi c payments to the states and territories, and special accounts

(347 586) (346 109) 1 478

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Financial position

Assets

The written down value of assets administered directly by the department in

2005−06 amounted to $493.405 million. This was an increase from the previous

year of $36.579 million. The increase was due to the revaluation of assets and

make-good costs ($64.752 million), offset by a reduction in cash reserves due to a

formal reduction in net appropriation ($24.809 million) and inventory adjustments

stemming from an accounting policy change ($3.364 million).

Liabilities

Liabilities administered directly by the department in 2005–06 amounted to

$257.189 million. This was a decrease from the previous year of $10.638 million.

The decrease was due to a decrease in grant and supplier payables.

Total equity

The department concluded the year with total equity of $236.216 million, an

increase from the equity of $188.999 million in 2004–05.

Measurement 2004–05$ million

2005−06$ million

Assets 456.826 493.405

Liabilities 267.827 257.189

Total equity 188.999 236.216

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Major adjustments to the 2005–06 fi nancial year and the 2004–05 comparative

year fi gures were made in this year’s accounts due to the adoption of the new

Australian Equivalents to International Financial Reporting Standards, accounting

policy changes, asset revaluations and some other adjustments required under the

accounting standards. The following table summarises the adjustments to equity.

Adjustments to equity 2004–05$ million

2005−06$ million

Equity opening balances 294.754 188.999

Retrospective adjustment of take-up of make-good costs (152.794) 0

Adjustments required under the accounting standards (7.292) 2.019

Accounting policy changes 0 (3.731)

Revaluations of assets 8.519 98.811

Restructuring 43.938 0

Capital injection – Antarctic Airlink 0 4.805

Reversal of receivable due to net appropriation reduction 0 (25.464)

Net operating result 1.874 (29.223)

Equity closing balances 188.999 236.216

Resolution of previous audit fi ndings

Work in 2005–06 focused on resolving the issues raised in the Audit Report No. 21

2004–05 Audit of Financial Statements of Australian Government Entities for the

Period Ended 30 June 2005.

The Australian National Audit Offi ce identifi ed eight moderate issues and one

legislative breach in the interim phase of the 2005–06 audit relating to defi ciencies

in the fi nancial statement preparation process, the reconciliation of leave balances,

the reconciliation of fi nancial records, the reconciliation of special accounts and

access management. All issues were satisfactorily resolved in 2005–06.

For each issue a detailed project plan was prepared, which was monitored at

senior levels. Further investment in resources was made to progress a number of

complex accounting treatments surrounding assets and their make-good costs

particularly in the Antarctic. As well as this, a large number of unresolved issues

going back over a number of years are now satisfactorily completed. A number of

assurance processes have been implemented and internal controls strengthened.

Challenges remain with the issue of attracting and retaining appropriately qualifi ed

and experienced accounting personnel.

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Assets management

The department’s assets are located throughout Australia. The largest material

component of assets is attached to the Australian Antarctic Division. Assets are

ageing and are perpetually putting pressure on funding streams for their upkeep

and replacement. The replacement of assets is of particular concern due to the

large unfunded component.

The Australian Accounting Standards Board has issued replacement Australian

Accounting Standards to apply from 2005–06. The new standards are the

Australian Equivalents to International Financial Reporting Standards. Under the

new standard, a requirement sees, for the fi rst time, a ‘make-good’ provision for

departmental assets, obliging the department to remove and restore assets to the

amount of approximately $156 million.

Work is under way to implement a capital infrastructure plan which will outline

the requirements of capital replacement and maintenance over the next 10 years.

The plan is expected to be implemented progressively across the department in

2006–07.

Purchasing and procurement

The department’s purchasing and procurement activities were conducted

in accordance with the core principle of the Commonwealth Procurement

Guidelines. This principle is value for money. The principle is underpinned by

encouraging competition (including non-discrimination), effi ciency, effectiveness,

the ethical use of resources, accountability and transparency.

Procurement Review Board

The Procurement Review Board is a committee within the department responsible

for overseeing procurement. The Procurement Review Board ensures that all

aspects of the Commonwealth Procurement Guidelines and the department’s

procurement requirements are adequately met.

All purchases valued over $80 000 are subject to review by the Procurement Review

Board. Delegates also refer any purchases below this threshold that are considered

to be particularly complex or controversial to the Procurement Review Board.

During the year the department’s Procurement Review Board examined

127 submissions for contracts over $80 000.

The department’s procurement framework places responsibility for procurement

with the appropriate fi nancial delegates. To support these delegates the

department provides awareness training; maintains relevant documentation;

provides central advice on risk management, probity, specifi cation and writing; and

maintains standard tender and contract templates.

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The department’s procurement policies are available on its website

(www.deh.gov.au/business). The department implements the Commonwealth

Procurement Guidelines through its Chief Executive’s Instructions. These

instructions are supported by the department’s procurement guidelines and

procedures. During the year the department reviewed its procurement guidelines

and released amended guidelines to refl ect updates provided by the Department

of Finance and Administration and to ensure better practice such as the issuing of

tender documentation via the AusTender website.

The department advertises tender opportunities through the AusTender website.

In December 2005, the department implemented the dissemination of tender

documentation and issued amendments or addenda via the AusTender website.

Procurement benchmarks

The department’s procurement benchmarks were changed from 1 July 2005 to

align with the reporting requirements and the Commonwealth Procurement

Guidelines. During 2005–06 the procurement benchmarks were as follows.

Benchmark Procurement method

Up to $1 999 Quotes are not required (but may be advisable if it is believed there is a possible material disparity between suppliers)

$2 000–$9 999 Obtain at least three competitive verbal quotes

$10 000–$79 999 Obtain at least three competitive written quotes. However, depending on the value, complexity and risk of the proposed project, consideration should be given to open or select tenders

$80 000+ Covered procurement (or open competition), subject to the Commonwealth Procurement Procedures, unless specifi cally exempt

Reporting

The department met the requirement to report to the Department of Finance and

Administration on projects requiring Regulation 10 authorisation.

The department met the requirement to report on the Senate Order on

Government Agency contracts for the fi nancial year and the calendar year. All

contracts over $100 000 are listed at www.deh.gov.au/about/contracts.

Small and medium enterprises

The department is committed to the Australian Government’s policy of supporting

small and medium enterprises, as was demonstrated by the department’s

15.8 per cent usage of the smaller airlines in 2005–06. The department’s Australian

Antarctic Division has working relationships with small and medium enterprises

and notifi es them of business opportunities in Tasmania.

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Consultancy services2

As with its policy on general purchasing activities, the department’s policy on the

selection and engagement of consultants is based on the principles contained in

the Commonwealth Procurement Guidelines, Financial Management Guidance

No. 12–Guidance on Identifying Consultancies for Annual Reporting Purposes,

Requirements for Annual Reports, the department’s Chief Executive’s Instructions

and the department’s procurement guidelines.

Selection methods are outlined in the department’s procurement guidelines, in

line with the department’s procurement benchmarks.

The department’s internal audit team conducts periodic probity reviews to help

ensure compliance with the general probity principles of the Commonwealth

Procurement Guidelines and the Chief Executive’s Instructions.

Expenditure on consultancies during 2005–06

During 2005–06, 329 new consultancy contracts were entered into involving

total actual expenditure of $12.334 million. In addition 289 ongoing consultancy

contracts were active during the year, involving total actual expenditure of

$40.032 million.

A list of all consultancy contracts let in 2005–06 to the value of $10 000 or more is

available at www.deh.gov.au/about/annual-report/05–06.

Competitive tendering and contracting3

During 2005–06 the department continued to source its internal audit and

information technology support service delivery from external providers.

Exempt contracts

During 2005–06 there were no standing offers or contracts in excess of $10 000

(inclusive of GST) exempted by the chief executive from being published in the

Purchasing and Disposal Gazette under the Freedom of Information Act 1982.

2 The defi nition of ‘consultant’ used by the department is the defi nition in the Requirements for Annual Reports published

on the website of the Department of the Prime Minister and Cabinet at www.dpmc.gov.au/guidelines/index.cfm.

3 For the purposes of departmental annual reports ‘competitive tendering and contracting’ means the process of contracting

out the delivery of government activities that were previously performed by the department to another organisation.

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Advertising and market research

This section is presented in accordance with the requirements of section 311A of

the Commonwealth Electoral Act 1918.

Type of expense 2005–06 expenses

Market research

Open Mind Research GroupElliott and ShanahanSub-total—market research

$142 196$116 092$258 288

Advertising

CreativeZooMedia buyUniversal McCannHMA BlazeSub-total—advertising

$91 287

$3 248 822$2 678 334$6 018 443

Direct mail

Complete Mail and WarehousingKWP Pty LtdCultural PartnersCox InallSub-total—direct mail

$91 978$58 685

$129 208$98 351

$378 202

Total $6 654 933

Legal expenditure

This is a statement of legal services expenditure by the department for 2005–06,

published in compliance with paragraph 11.1 (ba) of the Legal Services

Directions 2005.

Legal expenditure GST-exclusive

Department’s total legal services expenditure $2 940 534

Agency’s total external legal services expenditure $2 380 618

External expenditure on solicitorsExternal expenditure on counsel Number of male counsel briefed Value of briefs to male counsel Number of female counsel briefed Value of briefs to female counselOther disbursements on external legal services

$1 943 042$245 965

11$223 943

1$22 022

$191 611

Department’s total internal legal services expenditure $559 916

Salaries Other (includes travel, training and legal resources)

$519 690$40 225

Explanatory note: The salary component of the department’s internal legal services expenditure includes salaries, superannuation and other staff allowances.

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Discretionary grant programmes

The department administers a range of discretionary grant programmes.

Discretionary grants are payments made to particular applicants, either

organisations or individuals, at the discretion of the portfolio minister or the

paying agency. Conditions may or may not be imposed in return for the grant.

Discretionary grants may be single ad hoc payments, or grants renewed under

continuing programmes.

Programmes for which grants were approved in 2005–06 are listed below. A list of

grant recipients is available on request from the department.

Climate change

Action on Energy Effi ciency: Assists industry, business, the community

and governments to increase the uptake of cost effective energy effi ciency

opportunities that will reduce greenhouse emissions, reduce energy demand, and

improve Australia’s competitiveness.

Alternative Fuels Conversion Programme: Assists fl eet operators of heavy

commercial vehicles and buses to convert from diesel and petrol motors to

gaseous fuels, including natural gas, liquefi ed petroleum gas (LPG) and hydrogen.

Australian Greenhouse Science Programme: Aims to better understand

climate systems and the factors which infl uence them, the role of human activity in

bringing about changes to climate, and how climate changes may affect natural and

managed environments.

Greenhouse Action to Enhance Sustainability in Regional Australia:

Addresses challenges and knowledge gaps about climate change in regional

Australia (agriculture, forestry and natural resource management sectors).

Infl uencing International Climate Change Policy: Provides specialist advice

on international climate change arrangements and on building the capacity of

key developing countries to take effective climate change action through bilateral

partnerships.

Low Emissions Technology and Abatement: Supports cost effective

greenhouse gas emissions abatement opportunities and the uptake of small-scale

low emission technologies in business, industry and local communities.

National Climate Change Adaptation Programme: Provides national

leadership and coordination on assessment of climate change impacts, and enables

risks to be managed and opportunities to be captured through effective adaptation.

Solar Cities: Provides funding to demonstrate the costs and benefi ts of

integrating solar power, smart electricity technologies, energy effi ciency and

pricing mechanisms in urban settings.

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Greenhouse Gas Abatement Programme: Provides funding for mainly

large-scale projects that use low emissions technologies and practices to deliver

emissions reductions from 2008–2012.

Wind Energy Forecasting Capability Initiative: Supports a wind energy

forecasting system to assist electricity network management and increase the value

of wind energy in the electricity market.

Local Greenhouse Action: Assists local government, communities and

individual households to reduce their greenhouse gas emissions, particularly in

the areas of energy use, transport and waste.

Land and inland waters

Australian Government’s Community Water Grants Programme: Supports

communities, organisations, local governments, schools, businesses and natural

resource management regional bodies to develop on-ground water savings and

water quality improvement projects.

Bushcare: Invests in activities that contribute to conserving and restoring habitat

for Australia’s unique native fl ora and fauna. Part of the Natural Heritage Trust.

National Competitive Component: Funds innovative national projects that will

most effectively improve regional natural resource management delivery. Part of

the Natural Heritage Trust.

Rivercare: Invests in activities that contribute to improved water quality and

environmental condition in Australia’s river systems and wetlands. Part of the

Natural Heritage Trust.

Landcare: Invests in activities that contribute to reversing land degradation and

promoting sustainable agriculture. Part of the Natural Heritage Trust.

Envirofund: Provides grants to communities for on-ground activities targeting

local government problems, including improving water quality, protecting native

vegetation, and combating salinity and coastal erosion. Part of the Natural Heritage

Trust.

Australian Biological Resources Study Participatory Programme: Supports

the documentation of Australia’s biological diversity and facilitates training to

increase the national taxonomic effort.

National Reserve System Programme: Assists with the establishment and

maintenance of a comprehensively adequate and representative system of

terrestrial protected areas in Australia. Part of the Natural Heritage Trust.

Tri-National Wetlands Programme: Protects the environment of Australia

through international leadership and cooperation.

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Coasts and oceans

Facilitation of Community Involvement in Marine Issues and Decision-

making: Enhances community involvement in marine issues and decision-making

by raising community awareness, building the capacity of stakeholder groups and

facilitating communication. Part of the Natural Heritage Trust.

Introduced Marine Pests Programme: Supports actions that lead to the

control and local eradication of introduced marine pests. Part of the Natural

Heritage Trust.

Marine Protected Areas: Facilitates the establishment of the National

Representative System of Marine Protected Areas and the management of existing

reserves. Part of the Natural Heritage Trust.

Coasts and Clean Seas—Oceans Protection: Provides fi nancial assistance for

specifi c domestic and international activities that contribute to the prevention and

clean-up of pollution from shipping.

Coastal Catchments Initiative: Maintains ecologically sustainable pollutant

loads consistent with agreed environmental values for coastal waters.

Coastcare: Invests in activities that contribute to protecting Australia’s coastal

catchments, ecosystems and the marine environment. Part of the Natural

Heritage Trust.

Natural, Indigenous and historic heritage

Commemorating Historic Events and Famous Persons: Provides funding to

projects for the maintenance of graves of former Australian prime ministers and

governors-general buried in Australia and projects commemorating people, events

and places of national historical signifi cance.

Historic Shipwrecks Programme: Assist Australian Government, state and

territory government agencies and the Institute of Marine Archaeology to protect

and preserve historic shipwrecks and associated relics and educate the public

about this cultural resource.

Indigenous Heritage Programme: Supports projects that identify, conserve and

promote the Indigenous heritage values of places. The programme may also help

identify places likely to have outstanding Indigenous heritage value to Australia

suitable for inclusion on the National Heritage List.

Regional Natural Heritage Programme: Provides grants to non-government

organisations and other relevant agencies to protect outstanding biodiversity in

hotspot areas of South-East Asia and the Pacifi c. The programme is over four years

(2003–04 to 2006–07).

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Sharing Australia’s Stories: Supports creative projects that contribute to an

understanding of the great events and themes that have shaped Australia.

National Heritage Investment Initiative: Provides assistance to restore and

conserve Australia’s most important historic heritage places. Priority is given to

places included in the National Heritage List.

Cultural Heritage Projects Programme: Supports projects that conserve

places of cultural signifi cance or identify Indigenous places for conservation

planning and listing. This programme has fi nished.

Grants to Historic Churches and Cathedrals: Not a programme, although

the department administers ad hoc grants to assist with the conservation and

restoration of historic churches and cathedrals.

Indigenous Protected Areas: Supports Indigenous landowners to establish and

manage Indigenous Protected Areas.

Human settlements

Assessments and Legislation Programme: Protects matters of national

environmental signifi cance through the assessment regime of the Environment

Protection and Biodiversity Conservation Act 1999 and promotes and facilitates

community awareness and understanding of the Act.

Commonwealth Environment Research Facilities: Supports world class,

public good research on the signifi cant environmental challenges facing Australia.

Diesel National Environment Protection Measure: Supports the

development and implementation of in-service emissions testing capabilities for

diesel and petrol vehicles.

Environment Protection and Ad Hoc Grants Programme: Protects the

environment of Australia through national leadership and cooperation.

Launceston Clean Air Industry Programme: Makes co-contributions towards

the reduction of industrial wood smoke by improvements to, or replacement of,

existing plant and equipment.

Used Oil Recycling—Transitional Assistance: Provides grants for strategic

initiatives to increase used oil recycling and ensure a sustainable oil recycling

industry. Part of the Product Stewardship for Oil Programme.

Sustainable Cities—Urban Environment Initiatives: Provides funding for a

range of urban environment initiatives to address water quality, public information

promotion, improved air quality and renewable energy, chemicals and waste

management.

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Cross-cutting activities

Environment International Obligations: Protects the environment of Australia

through national leadership and contributing to international programmes.

Eureka Environmental Journalism Award: Encourages excellence in

environmental journalism.

Grants to Voluntary Environment and Heritage Organisations: Provides

administrative funds to help community based environment and heritage

organisations to involve the community in the conservation and protection of

Australia’s natural environment and cultural heritage.

Public Affairs and Environmental Education: Raises the profi le of

environmental challenges and solutions through activities and awards that

promote best practice and leadership. Part of the National Action Plan for

Environmental Education.

Environmental Education Grants Programme: Supports strategic

environmental education activities that are national in focus or that have the

potential to act as a catalyst for national change.

Antarctica

Australian Antarctic Science Grants Programme: Provides grants for high

quality scientifi c research relevant to the government’s Antarctic programme.

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FINANCIAL STATEMENTS

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGEINCOME STATEMENTfor the year ended 30 June 2006

2006 2005Notes $'000 $'000

INCOMERevenue

Revenues from Government 4.1 329,358 294,447Goods and services 4.2 42,976 36,066Interest 4.3 - 1Other revenue 4.6 2,291 915

Total revenue 374,625 331,429

GainsNet Gains from disposal of assets 4.4 138 -Reversals of previous asset write-downs 4.5 25 11Other gains 4.7 1,210 1,519

Total gains 1,373 1,530TOTAL INCOME 375,998 332,959

EXPENSESEmployees 5.1 138,812 120,930Suppliers 5.2 155,920 127,573Grants 5.3 24,728 19,595Transfer funding 5.3 41,962 40,085Depreciation and amortisation 5.4 25,822 25,898Finance costs 6.0 9,986 8,031Write-down and impairment of assets 5.5 7,659 6,243Net losses from disposal of assets 4.4 - 406Other expenses 5.6 332 90

405,221 348,851

OPERATING (LOSS) (29,223) (15,892)

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

TOTAL EXPENSES

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGEBALANCE SHEETas at 30 June 2006

2006 2005Notes $'000 $'000

ASSETSFinancial Assets

Cash 7.1 5,144 3,879Receivables 7.2 66,784 91,665Accrued revenue 7.3 466 910

Total Financial Assets 72,394 96,454Non-Financial Assets

Land and buildings 8.1/8.4 254,492 200,831Infrastructure, plant and equipment 8.2/8.4 147,678 137,133Intangibles 8.3/8.4 11,183 9,937Inventories 8.5 7,360 10,724Other non-financial assets 8.6 298 1,747

Total Non-Financial Assets 421,011 360,372TOTAL ASSETS 493,405 456,826

LIABILITIESPayables

Suppliers 9.1 1,292 7,579Grants 9.2 842 5,029Other payables 9.3 14,928 16,926

Total Payables 17,062 29,534Interest Bearing Liabilities

Loans 10.1 2,102 3,065Other interest bearing liabilities 10.2 498 601

Total Interest Bearing Liabilities 2,600 3,666Provisions

Employees 11.1 39,534 36,563Other provisions 11.2 197,993 198,064

Total Provisions 237,527 234,627TOTAL LIABILITIES 257,189 267,827

NET ASSETS 236,216 188,999

EQUITYContributed equity 37,169 49,901Reserves 236,903 138,092Retained surpluses or (accumulated deficits) (37,856) 1,006

TOTAL EQUITY 236,216 188,999

Current assets 80,052 104,821Non-current assets 413,353 352,005Current liabilities 37,376 39,874Non-current liabilities 219,813 227,953

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

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGESTATEMENT OF CASH FLOWSfor the year ended 30 June 2006

2006 2005Notes $'000 $'000

OPERATING ACTIVITIESCash received

Appropriations 331,440 265,641Goods and services 47,441 40,881Interest - 1Net GST received from the ATO 12,520 10,005Other cash received from operating activities 2,850 1,138

Total cash received 394,251 317,666Cash used

Employees 137,406 122,296Suppliers 171,467 134,354Grants 28,915 16,794Transfer funding 41,962 40,085Financing costs 260 233Other cash paid for operating activities 332 -

Total cash used 380,342 313,762Net cash from operating activities 13 13,909 3,904

INVESTING ACTIVITIESCash received

Proceeds from sales of property, plant and equipment 4.4 312 248Total cash received 312 248Cash used

Purchase of property, plant and equipment 8.4 13,090 7,747Purchase of intangibles 8.4 3,708 3,030

Total cash used 16,798 10,777Net cash (used by) investing activities (16,486) (10,529)

FINANCING ACTIVITIESCash received

Capital Injections 4,805 -Other - 4,588

Total cash received 4,805 4,588Cash used

Repayment of debt 963 1,012Total cash used 963 1,012Net cash from financing activities 3,842 3,576

Net increase or (decrease) in cash held 1,265 (3,049)Cash at the beginning of the reporting period 3,879 6,928Cash at the end of the reporting period 13 5,144 3,879

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

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Department of the Environment and Heritage Annual Report 2005–06 268

Financial statem

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGESCHEDULE OF COMMITMENTSas at 30 June 2006

2006 2005$'000 $'000

BY TYPE

Capital commitmentsLand and buildings 76 -Infrastructure, plant and equipment 1,184 248Intangibles 279 739

Total capital commitments 1,539 987

Other commitmentsOperating leases 135,702 150,486Project commitments 16,837 16,862Other commitments 28,691 17,727

Total other commitments 181,230 185,075

Commitments (receivable) (17,417) (16,758)

Net commitments by type 165,352 169,304

BY MATURITY

Capital commitmentsOne year or less 1,539 987

Total capital commitments 1,539 987

Operating lease commitmentsOne year or less 35,922 23,148From one to five years 69,861 84,615Over five years 29,919 42,723

Total operating lease commitments 135,702 150,486

Project commitmentsOne year or less 13,814 9,381From one to five years 3,023 7,481

Total project commitments 16,837 16,862

Other commitmentsOne year or less 21,282 12,850From one to five years 7,409 4,877

Total other commitments 28,691 17,727

Commitments (receivable) (17,417) (16,758)

Net commitments by maturity 165,352 169,304

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(1) Capital commitments relate to contractual payments for new assets and assets under construction.

(2) Operating leases are effectively non-cancelable and include:

Nature of lease Leases for officeaccommodation

Leases fortransportation to andwithin the AntarcticTerritory

Leases for supportfacilities for Antarcticoperations

Lease of computerequipment

(3) Project commitments relate to grant amounts payable under agreements in respect ofwhich the grantee has yet to complete the milestone required under the agreement.

(4) Other commitments relate to contracts for goods and services in respect of which thecontracted party has yet to provide the goods and services required under the contract.

Note: All commitments are GST inclusive where relevant.

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

* The lessor provides all computer equipment and software designated as necessary in the supply contract for five years plus for two further two year periods at the Department's option. The Department is currently within the first two year extention of the lease. * The equipment has on average a useful life of three years.

General description of leasing arrangements* Lease payments are subject to increases in accordance with terms as negotiated under the lease. * The Department's leases for office accommodation each have options for renewal. Future options not yet exercised are not included as commitments. * Lease payments are subject to increases in accordance with terms as negotiated under the lease. * The transportation leases generally have options for renewal. Future options not yet exercised are not included as commitments.

* Lease payments are subject to increases in accordance with terms as negotiated under the lease. * The facility leases each have options for renewal. Future options not yet exercised are not included as commitments.

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGESCHEDULE OF ADMINISTERED ITEMS

2006 2005Notes $'000 $'000

Income Administered on Behalf of Governmentfor the year ended 30 June 2006

Revenue

TaxationOther taxes, fees and fines 19A 1,270 1,480

Non-taxationGoods and services 19B 4,666 1,987Interest 19C 108 9Industry contribution s 19D 7,500 7,400Grant repayment s 19E 3,761 1,406Assets recognised for the first tim e 19F 1,411 2,113Other sources of non-taxation revenue 19G 2,237 424

Total Non-Taxation 19,683 13,339

GainsResources received free of charg e 19H 73 65

Total Gains Administered on Behalf of Governmen t 73 65

Total Income Administered on Behalf of Government 21,026 14,884

Expenses Administered on Behalf of Governmentfor the year ended 30 June 2006

Grants 20A 441,784 337,418Suppliers 20B 56,342 54,147Write-down and impairment of assets 20C 2,978 32,840Other 20D - 581

Total Expenses Administered on Behalf of Government 501,104 424,986

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

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGESCHEDULE OF ADMINISTERED ITEMS (continued)

2006 2005Notes $'000 $'000

Assets Administered on Behalf of Governmentas at 30 June 2006

Financial AssetsCash and cash equivalents 21A 115 435Receivables 21B 14,356 6,289Investments 21C 277,597 134,801Accrued revenues 21D 38 1,562

Total Financial Assets 292,106 143,087

Non-Financial AssetsLand and buildings 21E 4,750 4,750Infrastructure, plant and equipmen t 21F 1,271 1,271Other 21G 27,129 2,899

Total Non-Financial Assets 33,150 8,920Total Assets Administered on Behalf of Government 325,256 152,007

Liabilities Administered on Behalf of Governmentas at 30 June 2006

PayablesSuppliers 22A 987 4,035Grants 22B 17,666 53,391Other payable s 22C 1,448 1,022

Total Payables 20,101 58,448Total Liabilities Administered on Behalf of the Government 20,101 58,448

Net Assets Administered on behalf of Government 23 305,155 93,559

Current assets 3,818 9,988Non-current assets 321,438 142,019Current liabilities 20,101 58,448

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

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGESCHEDULE OF ADMINISTERED ITEMS (continued)for the year ended 30 June 2006 2006 2005

Notes $'000 $'000

Administered Cash Flowsfor the year ended 30 June 2006

OPERATING ACTIVITIESCash Received

Rendering of services 4,761 2,352Interest 108 10Net GST received from ATO 23,208 16,368Other cash received from operating activitie s 15,273 9,172

Total Cash Received 43,350 27,902

Cash UsedSuppliers 90,278 59,383Grant Payment s 500,670 339,793Other cash used by operating activitie s - 581

Total Cash Used 590,948 399,757Net Cash (used by) Operating Activities (547,598) (371,855)

INVESTING ACTIVITIESCash Received

Repayment of advance s 1,065 3,020Total Cash Received 1,065 3,020Cash Used

Issue of advance s 2,665 32,238Total Cash Used 2,665 32,238Net Cash (used by) Investing Activities (1,600) (29,218)

Net (decrease) in Cash Held (549,198) (401,073)

Cash at beginning of reporting perio d 435 (340)Cash from Official Public Account for

Appropriations (including GST appropriation) 23 256,079 129,964Special Accounts 23 334,555 309,859

590,634 439,823Cash to the Official Public Accoun t

Appropriations (including return of GST appropriation) 23 (33,872) (32,733)Special Accounts 23 (7,884) (5,242)

(41,756) (37,975)

Cash at End of Reporting Period 21A 115 435

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

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGESCHEDULE OF ADMINISTERED COMMITMENTS (continued)as at 30 June 2006

2006 2005$'000 $'000

BY TYPE

Other commitments

Project commitments 1 226,693 302,310

Other commitments 2 59,426 15,150Total other commitments 286,119 317,460

Commitments (receivable) (11,673) (16,713)

Net commitments by type 274,446 300,747

BY MATURITY

Other commitmentsOne year or less 177,329 218,160From one to five years 108,790 99,300

Total other commitments by maturity 286,119 317,460

Commitments (receivable) (11,673) (16,713)

Net commitments by maturity 274,446 300,747

NB: Commitments are GST inclusive where relevant. 1. Project commitments relate to grant amounts payable under agreements in respect of which

the grantee has yet to complete the milestone required under the agreement.2. Other commitments relate to contracts for goods and services in respect of which the

contracted party has yet to provide the goods and services required under the contract.

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

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DEPARTMENT OF THE ENVIRONMENT AND HERITAGENOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

Note Description1 Summary of Significant Accounting Policie s2 Adoption of Australian Equivalents to International Financial Reporting

Standards from 2005-2006 3 Events Occurring after Reporting Dat e4 Operating Revenues 5 Operating Expenses 6 Borrowing Cost Expenses 7 Financial Assets 8 Non-financial Assets 9 Payables10 Interest Bearing Liabilitie s11 Provisions12 Restructuring13 Cash Flow Reconciliatio n14 Contingent Liabilities and Assets 15 Executive Remuneration 16 Remuneration of Auditors 17 Average Staffing Level s18 Financial Instruments 19 Revenues Administered on Behalf of Governmen t20 Expenses Administered on Behalf of Governmen t21 Assets Administered on Behalf of Governmen t22 Liabilities Administered on Behalf of Governmen t23 Administered Reconciliation Table 24 Administered Contingent Liabilities and Assets 25 Administered Investments 26 Administered Restructuring 27 Administered Financial Instrument s28 Appropriations29 Specific Payment Disclosure s30 Reporting of Outcomes

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Note 1: Summary of Significant Accounting Policies

1.1 Objectives of The Department of the Environment and Heritage

The Department of the Environment and Heritage (the Department) is an AustralianPublic Service organisation.

The objectives of the Department are to:

• advise on and implement policies and programs for the protection andconservation of the environment while ensuring its use is ecologically sustainable;and

• administer the Australian Antarctic Territory and the Territory of Heard andMcDonald Islands, enhance Australia's role in the Antarctic Treaty System,conduct and support strategic research, a nd protect the Antarctic environment.

The Department is structured to meet two outcomes:

Outcome 1

The environment, especially those aspects that are matters of national environmentalsignificance, is protected and conserved.

Outcome 2

Australia's interests in Antarctica are advanced.

Department activities contributing toward these outcomes are classified as eitherdepartmental or administered. Departmental activities involve the use of assets,liabilities, revenues and expenses controlled or incurred by the Department in its ownright. Administered activities involve the management or oversight by the Department,on behalf of the Government, of items c ontrolled or incurred by the Government.

The following provides a representation of th e individual outputs unde r each of the twooutcomes.

Outcome 1

1.1 Response to Climate Change

1.2 Conservation of the land and inland waters

1.3 Conservation of the coasts and oceans

1.4 Conservation of natural, i ndigenous and historic heritage

1.5 Response to the impact of human settlements

Outcome 2

2.1 Antarctic Policy

2.2 Antarctic Science

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

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The financial statements are required by section 49 of the and are a general purpose financial report.

The statements have been prepared in accordance with:

Finance Minister’s Orders (or FMOs, being the

));

Australian Accounting Standards issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and

Interpretations issued by the AASB and Urgent Issues Group (UIG) that apply for the reporting period.

This is the first financial report to be prepared under Australian Equivalents to International Financial Reporting Standards (AEIFRS). The impacts of adopting AEIFRS are disclosed in Note 2.

The Income Statement and Balance Sheet have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets and liabilities, which as noted, are at fair value or amortised cost. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless disclosure of the full amount is specifically required.

Unless alternative treatment is specifically required by an accounting standard, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments; Contingent Liabilities and Assets are noted at Note 14.

Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised in the Income Statement when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered Items and related notes are accounted for on the same basis and using the same policies as for Department items, except where otherwise stated at Note 1.27.

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1.3 Significant Accounting Judgements and Estimates

In the process of applying the accounting polic ies listed in this note, the Department hasmade the following judgements that have the most significant impact on the amountsrecorded in the financial statements:

• The fair value of land and buildings has been taken to be the market value ofsimilar properties as determined by an independent valuer. In some instances,buildings are purpose built and may in fact realise more or less in the market.

• In the case of buildings held for specialised purposes, such as buildings located inthe Antarctic, and where there is no readily available market price, the value isthe ‘depreciated replacement cost’ in accordance with AASB 116 Property Plantand Equipment.

• The estimated values for make good provisions and related as sets have beenarrived at on a reasonableness basis.

No other accounting assumptions or estimates have been identified that have a significantrisk of causing a material adjustment to carrying amounts of assets and liabilities withinthe next accounting period.

1.4 Statement of Compliance

The financial report complies with Australian Accounting Standards, which includeAustralian Equivalents to International Financial Reporting Standards (AEIFRS).

Australian Accounting Standards require the Department to disclose AustralianAccounting Standards that have not been applied, for standard s that have been issued butare not yet effective.

The AASB has issued amendments to existing standards, these amendments are denotedby year and then number, for example 2005-1 indicates amendment 1 issued in 2005.

The table below illustrates standards and amendments that will become effective for theDepartment in the future. The nature of th e impending change within the table has beenout of necessity abbreviated and users shoul d consult the full version available on theAASB’s website to identify the full impact of the change. The expected impact on thefinancial report of adoption of these standards is based on the Department’s initialassessment at this date, but may change. The Department intends to adopt all ofstandards upon their application date.

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Title Standardaffected

Applicationdate* Nature of impending change Impact expected on

financial report

2005-1 AASB 139 1 Jan 2006 Amends hedging requirements forforeign currency risk of a highlyprobable intra-group transaction.

No expectedimpact.

2005-4 AASB 139,AASB 132,AASB 1,AASB 1023and AASB1038

1 Jan 2006 Amends AASB 139, AASB 1023and AASB 1038 to restrict theoption to fair value through profit orloss and makes consequentialamendments to AASB 1 and AASB132.

No expectedimpact.

2005-5 AASB 1and AASB139

1 Jan 2006 Amends AASB 1 to allow an entityto determine whether anarrangement is, or contains, a lease.

Amends AASB 139 to scope out acontractual right to receivereimbursement (in accordance withAASB 137) in the form of cash.

No expectedimpact.

2005-6 AASB 3 1 Jan 2006 Amends the scope to excludebusiness combinations involvingentities or businesses under commoncontrol.

No expectedimpact.

2005-9 AASB 4,AASB1023,AASB 139and AASB132

1 Jan 2006 Amended standards in regards tofinancial guarantee contracts.

No expectedimpact.

2005-10 AASB 132,AASB 101,AASB 114,AASB 117,AASB 133,AASB 139,AASB 1,AASB 4,AASB 1023and AASB1038

1 Jan 2007 Amended requirements subsequentto the issuing of AASB 7.

No expectedimpact.

2006-1 AASB 121 31 Dec 2006 Changes in requirements for netinvestments in foreign subsidiariesdepending on denominatedcurrency.

No expectedimpact.

AASB7FinancialInstruments:Disclosures

1 Jan 2007 Revise the disclosure requirementsfor financial instruments fromAASB132 requirements.

No expectedimpact.

* Application date is for annual reporting periods beginning on or after the date shown

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1.5 Principles of Consolidation (Natural Heritage Trust of Australia Account)

Subsection 43(1) of the Natural Heritage Trust of Australia Act 1997 requires financialstatements to be prepared for the Natural He ritage Trust of Australia Account (NHT). Reporting by the NHT reflects the NHT as a separate reporting entity, with alltransactions between the NHT and parties outside the NHT being reported.

Reporting of the NHT as part of the Department's administered disclosure in thesefinancial statements takes account of the treatment of administered items as a whole andthe administered presentation rules as prescribed in the Finance Ministers Orders. Thefinancial statements of the NHT are consolidated into the Department's administeredfinancial statements. Where accounting po licies and disclosure requirements differbetween the NHT and the Department adjust ments are made on consolidation to bringany dissimilar accounting policies and disclosures into alignment.

1.6 Revenue

Revenues from Government

Amounts appropriated for Departmental outputs appropriations for the year (adjusted forany formal additions and reductions) are recognised as revenue, except for certainamounts that relate to activities that are reciprocal in natu re, in which case revenue isrecognised only when it has been earned.

Appropriations receivable are reco gnised at their nominal amounts.

Other Revenue

Revenue from the sale of goods is recognised when:

• The risks and rewards of ownership ha ve been transferred to the buyer;• The seller retains no managerial involvem ent nor effective control over the goods; • The revenue and transaction costs incu rred can be reliably measured; and• It is probable that the economic benefits associated with the transaction will flow

to the entity.

Revenue from rendering of serv ices is recognised by referenc e to the stage of completionof contracts at the reporting date. The revenue is recognised when:

• The amount of revenue, stage of completi on and transaction costs incurred can bereliably measured; and

• The probable economic benefits with the tr ansaction will flow to the entity.

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

Receivables for goods and services, which ha ve 30 day terms, are recognised at thenominal amounts due less any provision for bad and doubtful debts. Collectability ofdebts is reviewed at balance date. Provisions are made when collection of the debt is nolonger probable.

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

1.7 Gains

Resources Received Free of Charge

Services received free of charge are recognised as gains when and only when a fair valuecan be reliably determined and the services would have been purchased if they had notbeen donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of ac quisition or for nominal consideration arerecognised as gains at their fair value wh en the asset qualifies for recognition, unlessreceived from another government Department as a consequence of a restructuring ofadministrative arrangement s (Refer to Note 1.8).

Other Gains

Gains from disposal of non-current assets are recognised wh en control of the asset haspassed to the buyer.

1.8 Transactions with the Government as Owner

Equity injections

Amounts appropriated which are designated as ‘equity injections’ fo r a year (less anyformal reductions) are rec ognised directly in Contribu ted Equity in that year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Commonwealth Department orauthority under a restructuring of administrative arrangements are adjusted at their bookvalue directly against Contributed Equity.

Other distributions to owners

The FMOs require that distribut ions to owners be debited to Contributed Equity unless inthe nature of a dividend. There was no di stribution to owners during 2005-06 (2004-05nil).

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1.9 Employee Benefits

As required by the FMOs, the Department has early adopted AASB 119 EmployeeBenefits as issued in December 2004.

Liabilities for services rendered by employees are recognised at the reporting date to theextent that they have not been settled.

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and terminationbenefits due within twelve months of ba lance date are measured at their nominalamounts.

The nominal amount is calculated with regard to the rates expected to be paid onsettlement of the liability.

All other employee benefit liabili ties are measured as the present value of the estimatedfuture cash outflows to be made in respect of services provided by employees up to thereporting date.

Leave

The liability for employee bene fits includes provision for an nual leave and long serviceleave. No provision has been made for sick leave as all sick leave is non-vesting and theaverage sick leave taken in future years by employees of the Department is estimated tobe less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration, including theDepartment’s employer superannuation contribution rates to the extent that the leave islikely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of anactuary. The estimate of the present value of the liability takes into account attrition ratesand pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy payments in circumstances where theDepartment has invited an excess employee to accept voluntary redundancy, theemployee has accepted the offer, and a reliable estimate of the amount of the paymentscan be determined.

Superannuation

Staff of the Department are members of the Commonwealth Superannuation Scheme(CSS), the Public Sector Superannuation Sc heme (PSS) or the PSS accumulation plan(PSSap).

The CSS and PSS are defined benefit schemes for the Commonwealth. The PSSap is adefined contribution scheme.

The liability for defined bene fits is recognised in the fi nancial statements of theAustralian Government and is settled by the Australian Government in due course.

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The Department makes employer contributions to the Australian Government at ratesdetermined by an actuary to be sufficient to meet the cost to the Government of thesuperannuation entitlements of the Department’s employees.

From 1 July 2005, new employees are eligible to join the PSSap scheme.

The liability for superannuation recognised as at 30 June represents outstandingcontributions for the final fortnight of the year.

1.10 Leases

A distinction is made between finance leas es and operating leases. Finance leaseseffectively transfer from the lessor to the lessee substantially all the risks and rewardsincidental to ownership of leased non-current assets. An oper ating lease is a lease that isnot a finance lease. In operating leases, the lessor effectively retains substantially all suchrisks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalisedat either the fair value of the lease property or, if lower, the present value of minimumlease payments at the inception of the contra ct and a liability recognised at the same timeand for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets areamortised over the period of the lease. Lease payments are a llocated between theprincipal component and the interest expense.

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

1.11 Grants

The Department administers a number of diverse grant schemes.Grant liabilities are recognised to the extent that (i) the services required to be performedby the grantee have been performed or (ii) the grant eligibility criteria have been satisfied,but payments due have not been made. A co mmitment is recorded when the Departmententers into an agreement to make grants but services have not been performed or criteriasatisfied.

1.12 Borrowing Costs

All borrowing costs are expensed as incurred.

1.13 Cash

Cash means notes and coins held and any deposits held at call with a bank or financialinstitution. Cash is reco gnised at its nominal amount.

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1.14 Financial Risk Management

The Department’s activities expose it to normal commercial financial risk. As a result ofthe nature of the Department’s business and internal and Australian Government policiesdealing with the management of financial risk, the Department’s exposure to market,credit, liquidity and cash flow and fair value interest rate risk is considered to be low.

1.15 Derecognition of Financial Assets and Liabilities

As prescribed in the Finance Minister’s Or ders, the Department has applied the optionavailable under AASB 1 of adopting AASB 132 and 139 from 1 July 2005 rather than1 July 2004.

Financial assets are derecognise d when the contractua l rights to the cash flows from thefinancial assets expire or the asset is transferred to another entity. In the case of a transferto another entity, it is necessary that the risks and rewards of ownership are alsotransferred.

Financial liabilities are derecognised when the obligation under the contract is dischargedor cancelled or expires.

For the comparative year, financial assets we re derecognised when the contractual rightto receive cash no longer existed. Financial liabilities were derecognised when thecontractual obligation to pay cash no longer existed.

1.16 Impairment of Financial Assets

As prescribed in the Finance Minister’s Or ders, the Department has applied the optionavailable under AASB 1 of adopting AASB 132 and 139 from 1 July 2005 rather than 1July 2004.

Financial assets are assessed for impairment at each balance date.

Financial Assets held at Amortised Cost

If there is objective evidence that an impairment loss has been incurred for loans andreceivables or held to maturity investments held at amortised cost, the amount of the lossis measured as the difference between the a ssets’s carrying amount and the present valueof estimated future cash flows discounted at the asset’s original eff ective interest rate.The carrying amount is reduced by way of an allowance account. The loss is recognisedin profit and loss.

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Financial Assets held at Cost

If there is objective evidence that an impairment loss has been incurred on an unquotedequity instrument that is not carried at fair value because it cannot be reliably measured,or a derivative asset that is linked to and must be settled by delivery of such an unquotedequity instrument, the amount of the impairment loss is the difference between thecarrying amount of the asset a nd the present value of the estimated future cash flowsdiscounted at the current market rate for similar assets.

Available for Sale Financial Assets

If there is objective evidence that an impairment loss on an available for sale financialasset has been incurred, the amount of the difference between its cost, less principalrepayments and amortisation, and its current fair value, less any impairment losspreviously recognised in profit and loss, is transferred from equity to the profit and loss.

Comparative Year

The above policies were not applied for the comparative year. For receivables, amountswere recognised and carried at original invoice amount less a provision for doubtful debtsbased on an estimate made when collection of the full amount was no longer probable.Bad debts were written off as incurred.

Other financial assets carried at cost which were not held to generate net cash inflows,were assessed for indicators of impairment. Where such indicators were found to exist,the recoverable amount of the assets was estimated and compared to the assets carryingamount and, if less, reduced to the carrying amount. The reduction was shown as animpairment loss.

1.17 Interest Bearing Loans and Borrowings

Government loans are carried at the balance yet to be repaid. Interest is expensed as it accrues.

1.18 Trade Creditors

Trade creditors and accruals are recognised at their nominal amounts, being the amountsat which the liabilities will be settled. Liabilities are recognised to the extent that thegoods or services have been received (and irrespective of having been invoiced).

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1.19 Contingent Liabilities and Contingent Assets

Contingent Liabilities and Assets are not recognised in the Balance Sheet but arediscussed in the relevant schedules and notes. They may arise from uncertainty as to theexistence of a liability or asset, or represent an existing liability or asset in respect ofwhich settlement is not probable or the amount cannot be reliably measured. Remotecontingencies are part of this disclosure. Where settlement becomes probable, a liabilityor asset is recognised. A liab ility or asset is recognised when its existence is confirmedby a future event, settlement becomes probable (virtually certain for assets) or reliablemeasurement becomes possible.

1.20 Acquisition of Assets

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

Assets acquired at no cost, or for nominal cons ideration, are initially recognised as assetsand revenues at their fair value at the date of acquisition, unless acquired as aconsequence of restructuring of administrative arrangements. In the latter case, assets areinitially recognised as contri butions by owners at the amounts at which they wererecognised in the transferor De partment’s accounts immediately prior to the restructuring.

1.21 Property, Plant and Equipment (PP&E)

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the BalanceSheet, except for purchases costing less than the following asset thresholds which areexpensed in the year of acquisi tion (other than where they form part of a group of similaritems which are significant in total).

Buildings $10,000

Leasehold improvements $50,000

Plant and equipment $5,000

The initial cost of an asset includes an estimate of the cost of dismantling and removingthe item and restoring the site on which it is located. This is particularly relevant to‘make good’ provisions in property leases taken up by the Department and restitutionobligations in the Antarctic where there exists an international obligation to clean-upabandoned work sites, buildings and infrastructure. These costs are included in the valueof the Department’s leasehold improvements and Antarctic assets with a correspondingprovision for the ‘make good’ taken up.

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Revaluations

Land, buildings, plant and equipm ent are carried at fair value, being revalued withsufficient frequency such that the carrying amount of each asset is not materiallydifferent, at reporting date, from its fair value. Valuations undertaken in each year are asat 30 June.

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

Land Market selling price Buildings Market selling price or, in the case of specialised assets, depreciated replacement costLeasehold improvements Depreciated replacement costPlant and equipment Market selling price or, in the case of specialised assets, depreciated replacement cost

Following initial recognition at cost, valuati ons are conducted with sufficient frequencyto ensure that the carrying am ounts of assets do not materially differ from the assets’ fairvalues as at the reporting date. The regularity of indepe ndent valuations depends uponthe volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is creditedto equity under the heading of asset revaluation reserve except to the extent that itreverses a previous revaluation decrement of the same asset class that was previouslyrecognised through profit and loss. Revaluat ion decrements for a class of assets arerecognised directly through profit and loss except to the extent that they reverse aprevious revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the grosscarrying amount of the asse t and the asset restated to the revalued amount.

All valuations are conducted by an independent qualified valuer.

Depreciation

Depreciable property plant and equipment assets are written-off to their estimatedresidual values over their esti mated useful lives to the Department of the Environmentand Heritage using, in all cases, the strai ght-line method of depreciation. Leaseholdimprovements are depreciated on a straight-line basis over the lesser of the estimateduseful life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives), residual values and methods are reviewed at eachreporting date and necessary adjustments are recognised in the current, or current andfuture reporting periods, as appropriate.

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Depreciation rates applying to each class of depreciable asset are based on the followinguseful lives:

2006 2005

Buildings on freehold land 3 to 50 years 3 to 50 years

Leasehold improvements Lease term Lease term

Plant and equipment 2 to 50 years 2 to 50 years

Heritage and cultural assets are assessed as having an infinite useful life and are notdepreciated. The aggregate amount of depreciation allocated for each class of assetduring the reporting period is disclosed in Note 5.4.

Impairment

All assets were assessed for impairment at 30 June 2006. Where indications ofimpairment exist, the asset’s recoverable amount is estimated and an impairmentadjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and itsvalue in use. Value in use is the present value of the future cash flows expected to bederived from the asset. Where the future economic benefit of an asset is not primarilydependent on the asset’s ability to generate future cash flows, and the asset would bereplaced if the Department of the Environment and Heritage were deprived of the asset,its value in use is taken to be its depreciated replacement cost.

No indicators of impairment were found for assets at fair value.

1.22 Intangibles

The Department of the Environment and Heritage’s intangibles comprise internallydeveloped software for internal use. These assets are carried at cost.

Software is amortised on a straight-line basis ov er its anticipated useful life. The usefullife of the Department’s software is 3 to 17 years (2004-05 3 to 17 years).

All software assets were assessed for indications of impairment as at 30 June 2006.

1.23 Inventories

A voluntary change to the accounting policy for inventory has been made to record asinventory only those new items held at the di stribution warehouses or , in the case of fuelheld at Antarctic stations, fuel held in bul k storage. The inventory threshold level wasalso changed to only record inventory w ith class values above $50,000. In accordancewith AASB 108 an adjustment reducing the opening equity balance at 1 July 2005 of$3.7m was made.

Inventories held for sale are valued at the lower of cost and net realisable value.

Inventories held for distribution are measured at the lower of cost and currentreplacement cost.

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Costs incurred in bringing each item of inventory to its present location and condition areassigned as follows:

• raw materials and stores – purchase cost on a first-in-first-out basis

• fuel –weighted average cost; and

• finished goods and work in progress – co st of direct materials and labour plusattributable costs that are capable of being allocated on a reasonable basis.

Inventories acquired at no cost or nominal considerations are measured at currentreplacement cost at the date of acquisition.

1.24 National Halon Bank

The Commonwealth operates the National Ha lon Bank which maintains sufficient stockof halon to meet Australia's essential us e needs to 2030 and also collects, decants,recycles and destroys surplus ha lon. The stock of halon (an as set) and the future costs todestroy surplus halon (a liability) are not recognised as they can not be reliably measuredand/or valued.

1.25 Make Good Provisions

Provision for Antarctic Base Restitution

Australia is required by the Ma drid Protocol to remove all accumulated waste from theAntarctic Territories. A process of gradual removal is in effect. The provision forAntarctic Base restitution is for the estimated future costs of this obligation and is derivedfrom an expert valuation which provides a “best estimate” in accordance with AASB 137.

Provision for Make Good - Antarctic Regions

This provision represents the estimated future costs of making good Australian AntarcticTerritories upon which premises occupied by the Australian Antarctic Division arelocated. The obligation to make good arises from the requirements of the MadridProtocol. The estimated future costs represent the cost of decommissioning, dismantling,and expatriation to Australia of all building and associated materials and the cost of siterehabilitation. Buildings a nd buildings support infrastructure are decommissioned andreplaced on an ongoing basis, infrequently, and the majority of costs will be incurredduring any major Antarctic Base rebuilding pr ogram. The provision is derived from anexpert valuation and a costing model which provides a “best estimate” in accordance withAASB 137.

Provision for Make Good - Other Localities

This provision represents the estimated costs of making good leasehold premisesoccupied by the Department at the John Gort on Building, Barton ACT and at the office o fthe Supervising Scientist Division in Darwin, NT. The provision is derived from anexpert valuation which provides a “best estimate” in accordance with AASB 137.

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1.26 Taxation

The Department is exempt from all forms of taxation except fringe benefits tax (FBT)and the goods and se rvices tax (GST).

Revenues, expenses and assets are recognised net of GST:

• except where the amount of GST incurred is not recoverable from the AustralianTaxation Office; and

• except for receivables and payables.

1.27 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in theSchedule of Administered Items and related Notes.

Except where otherwise stated below, administered items are accounted for on the samebasis and using the same policies as for Department items, including the application ofAustralian Accounting Standards.

Administered Cash Transfers to and from Official Public Account

Revenue collected by the Department for use by the Government rather than theDepartment is Administered Revenue. Collections are transferred to the Official PublicAccount (OPA) maintained by the Department of Finance and Administration.Conversely, cash is drawn from the OPA to make payments under Parliamentaryappropriation on behalf of Government. These transfers to and from the OPA areadjustments to the administered cash held by the Department on behalf of theGovernment and reported as such in the St atement of Cash Flows in the Schedule ofAdministered Items and in the Administered Reconciliation Table in Note 23. Thus theSchedule of Administered Items largely reflects the Government’s transactions, throughthe Department, with partie s outside the Government.

All administered revenues are revenues relating to the course of ordinary activitiesperformed by the Department on behalf of the Australian Government.

Fees are charged for access to reserves holding protected Australian fauna and flora. Administered fee revenue is recognised when access occurs. It is recognised at itsnominal amount due less any provision for bad or doubtful debts. Collectability of debtsis reviewed at balance date. Provisions are made when collection of the debt is judged tobe less rather than more likely.

Loans and Receivables

Where loans and receivables are not subject to concessional treatment, they are carried atamortised cost using the effective interest method. Gains and losses due to impairment,derecognition and amortisation are recognised through profit and loss. Loans andreceivables subject to concessional treatment are carried at cost.

Revenue

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Administered investments in controlled entities are not consolidated because their consolidation is relevant only at the Whole of Government level.

Administered investments other than those held for sale are measured at their fair value as at 30 June 2006. Fair value has been taken to be the net assets of the entities as at balance date. For the comparative period administered investments were measured on the cost basis, adjusted for any subsequent capital injections or withdrawals and for any impairment losses.

Administered investments were assessed for impairment at 30 June 2006. No indicators of impairment were noted.

The Department received appropriation of $4.750 million in 2002-2003 for the purchase of the Macquarie Light station and Snapper Island from the Department of Finance and Administration. The assets were acquired in 2002-2003 and will remain with the Department until such time as they are vested to the Sydney Harbour Federation Trust. As the assets are heritage assets they are not depreciated as there is no foreseeable limit to the period over which they will be held and used by the Australian Government.

The Department of the Environment and Heritage administers a number of grant and subsidy schemes on behalf of the Government.

Grant and subsidy liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied.

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2 The impact of the transition to AEIFRS from previous AGAAP

2005 2004$'000 $'000

Total Equity under previous AGAAP 1 July 296,667 258,018Adjustments to Retained Earnings

Deferred asset expense 1 45,959 48,559

Makegood Provisions 2 (146,217) (154,091)

Insurance Receivable 3 (9,286) -

Other 4 1,876 (52)

Total equity translated to AEIFRS 1 Jul y 188,999 152,434

The cash flow statement presented under previous AGAAP is equivalent to that preparedunder AEIFRS.

3,958

(147)137(80)

Amortisation of deferred assets for make good (2,600)Unwinding of make good provision 2004-05 (7,874)

AAD Insurance receivable - reversal (9,286)

2004-05 profit translated into AEIFRS (15,892)

The impact of the transition to AEIFRS from previous AGAAP (Administered)

3 Events Occurring after Reporting Date

There are no known events occurring after balance date that could impact on the financial statements.

There has been no impact on the administered financial statements from the transition toAEIFRS from AGAAP.

Reconcilliation of total equity as presented under previous AGAAP to that under AEIFRS

1 The AEIFRS treatment where a provision for makegood exists is to create a deferred assetand amortise it over the time remaining until, the makegood event.

2 The second part of the AEIFRS treatment where make good requirement exists is to create amakegood provision and 'unwind' it to the present value of the estimated cost of the makegood. 3 Under AEIFRS the treatment of insurance receivables changed from an accrued revenue to acontingent asset. 4 Sundry AEIFRS adjustments.

Reconcilliation of total equity as presented under previous AGAAP to that under AEIFRS

2004-05 Profit as previously reported

Adjustments for errors

AEIFRS Adjustments Assets Carrying Value Provisions carrying value Interest Expense

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2006 2005$'000 $'000

4 Revenue

4.1 Revenue from Government

Appropriations for outputs 329,358 294,447Total revenues from government 329,358 294,447

4.2 Goods and Services

Provision of goods 104 146Provision of services 42,872 35,920Total sales of goods and services 42,976 36,066

Provision of goods to: - Related entities - 22 - External entities 104 124Total sales of goods 104 146

Rendering of services to: - Related entities 34,646 29,867 - External entities 8,226 6,053Total rendering of services 42,872 35,920

4.3 Interes t

Interest on deposits - 1

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2006 2005$'000 $'000

4.4 Net Gains/(Losses) from Disposals of Asset s

Land and Building sProceeds from disposal 150 -Net book value of assets dispose d (152) -

Net (loss) from disposal of Land and Buildings (2) -

Infrastructure, plant and equipmen tProceeds from disposal 22 248Net book value of assets dispose d (22) (654)

Net (loss) from disposal of infrastructure, plant and equipment - (406)

Non Listed Assets (Below threshold )Proceeds from disposal 140 -

Net gain from disposal of Non Listed Assets 140 -

Total proceeds from disposals 312 248Total value of assets dispose d (174) (654)Total gains/(loss) from disposal of assets 138 (406)

4.5 Reversal of previous asset write-downs

Financial assets Doubtful debts received - receivable s 25 11

4.6 Other revenue Repayments of prior years expenditur e 327 198Grants receive d 415 656Insurance recoverie s 1,173 2Miscellaneous Revenue 376 59Total other revenues 2,291 915

4.7 Other Gains Write-down of provisions and payable s 519 494Property, plant and equipment assets recognised for first tim e - 233Resources received free of charge - governmen t 691 696Assets received free of charge - governmen t - 96

1,210 1,519

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2006 2005$'000 $'000

5 Operating Expenses

5.1 Employees

Wages and Salaries 99,892 90,685Superannuation 18,401 17,060Leave and other entitlement s 11,155 8,710Separation and redundancies 828 1,722Other Employee expense s 8,536 2,753Total employee expenses 138,812 120,930

5.2 Suppliers

Provision of goods - related entities 287 150Provision of goods - external entities 21,055 5,368Provision of services - related entities 23,343 10,733Provision of services - external entities 81,194 76,401Operating lease rentals* 30,041 34,921Total suppliers expense 155,920 127,573

* These comprise minimum lease payments only .

5.3 Grants and Transfer Fundin g

Other sectors in the Commonwealt h 1,159 660State and Territory Governments 9,369 6,865Non-profit institutions 8,920 5,248Local Governments 1,852 2,853Overseas 1,275 752Universities 1,096 1,319Individuals 134 787Profit making entities 923 1,111Total grants 24,728 19,595

Payment to the Director of National Park s 41,962 40,085Total transfer funding 41,962 40,085

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5.4 Depreciation and amortisation

DepreciationOther infrastructure, plant and equipmen t 14,065 13,572Buildings 9,926 10,519Total depreciation 23,991 24,091

AmortisationIntangibles - Computer softwar e 1,831 1,807Total amortisation 1,831 1,807

Total depreciation and amortisation 25,822 25,898

The aggregate amounts of depreciation or amortisation expensed during the reporting period foreach class of depreciable asset are as follows:

Plant and equipmen t 14,065 13,572Buildings 9,926 10,519Internally developed softwar e 1,304 1,215Purchased software 527 592Total depreciation and amortisation 25,822 25,898

5.5 Write-down and Impairment of Assets

Financial assetsBad and doubtful debts expense 178 94Non-financial assetsInventories - asset write-down s - 194Intangibles - asset write-down s 668 148Land and buildings - revaluation decremen t - 851Land and buildings - asset write-down s 1,576 615Infrastructure, plant and equipment - asset write-down s 5,237 4,341Total write-down of assets 7,659 6,243

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5.6 Other Expenses

Miscellaneous expenses 332 90Total other expenses 332 90

6 Finance Costs

Loans 108 157Unwinding of discount - make good provisions 9,878 7,874Total finance costs 9,986 8,031

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7 Financial Assets

7.1 Cash

Cash at ban k 4,677 3,740Cash on han d 467 139Total cash 5,144 3,879

7.2 Receivables

Goods and services - receivable s 2,046 3,276Provision for doubtful debts (146) (52)

1,900 3,224

Appropriation receivable - undraw n 61,539 59,342GST receivable from the Australian Taxation Offic e 3,030 3,398Receivable from Bureau of Meteorology (Notes 12 & 28.1 ) - 25,464 Reversed during 2005-06 following Ministerial determination. Other receivables 315 237Total receivables (net) 66,784 91,665

Receivables (gross) are aged as follows: Not overdue 66,577 90,944Overdue by: Less than 30 day s 139 226 30 to 60 days 56 67 60 to 90 days 2 53 More than 90 day s 156 427Total receivables (gross) 66,930 91,717

The provision for doubtful debts is aged as follows: Overdue by: More than 90 day s (146) (52)Total provision for doubtful debts (146) (52)

All receivables are with entities external to the Department. Credit terms are generally net 3 0days (2005: 30 days). No interest rate applies and payments are generally one-off.

Appropriations receivable undrawn are appropriations controlled by the Department but held i nthe Official Public Account under the Government's just-in-time drawdown arrangements .

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7.3 Accrued Revenues

Goods and services accrued revenu e 466 346GST accrued - 564Total accrued revenues 466 910

All accrued revenues are current assets.

8 Non-Financial Assets

8.1 Land and Building s

Land - At 2005-2006 valuation (fair value) 240 229Total land 240 229

Buildings on land - At 2005-2006 valuation (fair value) 252,387 199,429 Accumulated depreciatio n (3,669) (1,834) Work in progress - at cos t buildings 5,534 3,007Total buildings on land at valuation 254,252 200,602

Total land and buildings (non-current) 254,492 200,831

All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note 1. All revaluations have been conducted by an independent valuer, the AustralianValuation Office.

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8.2 Infrastructure, Plant and Equipmen t

- At 2005-2006 valuation (fair value) 148,544 135,551 Accumulated depreciatio n (2,495) (867) Work in progress - at cost IP&E 1,629 2,449Total Infrastructure, Plant and Equipment (non-current) 147,678 137,133

All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note 1. All revaluations have been conducted by an independent valuer, the AustralianValuation Office.

8.3 Intangible Asset s

- Purchased computer softwar e 4,362 4,278 Accumulated amortisation P/Software (2,582) (2,164) Work in progress P/Software 412 -Total purchased computer software 2,192 2,114

- Internally developed computer softwar e 13,996 10,482 Accumulated amortisation dev software (8,321) (7,519) Work in progress Dev Software 3,316 4,860Total internally developed computer software 8,991 7,823

- Patents, brand names and licences 623 623 Accumulated amortisation patents (623) (623)Total patents, brand names and licences - -

Total intangible assets (non-current) 11,183 9,937

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Financial statem

ents

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ents

2006 2005$'000 $'000

8.5 Inventories

Finished goods 170 132Total inventories held for sale 170 132

Work in progress 46 34Finished goods 7,144 10,558Total inventories not held for sale 7,190 10,592

Total inventories 7,360 10,724

Inventories are represented by: Current 7,360 6,620Non-current - 4,104Total inventories 7,360 10,724

8.6 Other Non-financial Assets

Prepayments 298 1,747Total other non-financial assets 298 1,747

All other non-financial assets are current assets.

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9 Payables

9.1 Suppliers Payables

Trade creditors 1,292 7,579Total supplier payables 1,292 7,579

All supplier payables are current liabilities.

Settlement is usually made net 30 days.

9.2 Grant Payables

Non-profit institutions Payable 299 2,579Profit making entities Payable 10 880State and Territory governments Payable 499 545Local governments Payable 34 466Overseas Payable - 420Other sectors in the Commonwealth Payable - 66Universities Payable - 43Individuals Payabl e - 30Total grant payables 842 5,029

All grants payables are current liabilities.

Settlement is made according to the terms and conditions of each grant, this is usually within 30days of meeting the grant eligibility criteria .

9.3 Other Payable s

Unearned revenu e 3,096 1,209Interest payable 108 157Accrued Expenses 11,517 14,945Miscellaneous 207 615Total other payables 14,928 16,926

All other payables are current liabilities.

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10 Interest Bearing Liabilities

10.1 Loans

Loans from Governmen t 2,102 3,065

Maturity schedule for loans: Payable: - Within one yea r 1,020 963 - In one to five years 1,082 2,102Total loan liability 2,102 3,065

The loan was issued in 1998-1999 and is repayable in annual installments ending in 2007-2008. The interest rate is subject to review each year based on the 10 year bond rate as at 30 June. The current interest rate is 5.79%, (2004-05 5.28%).

10.2 Other Interest Bearing Liabilitie s

Lease incentive 498 601

Other interest bearing liabilities are represented by ;Current lease incentives 103 103Non-current lease incentives 395 498Total other interest bearing liabilities 498 601

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11 Provisions

11.1 Employee Provisions

Salaries and wages 745 441Leave 32,712 30,363Superannuation Provision 6,077 5,516Separation and redundancies Provision - 243Aggregate employee benefit liability and related on-costs 39,534 36,563

Employee provisions are represented by :Current employee provisions 18,552 9,274Non-current employee provisions 20,982 27,289Aggregate employee benefit liability and related on-costs 39,534 36,563

11.2 Other Provisions

Provision for Antarctic base restitutio n 42,519 34,794Provision for make good - Antarctic region s 153,509 161,965Provision for make good - other localities 1,965 1,082Provision for Renewable Energy Certificate s - 223Total other provisions 197,993 198,064

Other provisions are represented by: Current 639 223Non-current 197,354 197,841Total other provisions 197,993 198,064

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ents

12 Restructuring

Current year (2005-2006)

Previous year (2004-2005)There were several changes to the structure of the Department in 2004-2005 as a result of AAO's.

The first of these changes was the transfer of Indigenous program functions to the Department from the Department of Immigration and Multicultural Affairs, following the Governmentdecision on 20 June 2004 to abolish the Aboriginal and Torres Strait Islander Commission andcease the Aboriginal and Torres Strait Islander Services functions. The transfer took effect on1 July 2004.

The second major change was the abolition of the Australian Greenhouse Office and theNational Oceans Office as executive agencies under the Public Service Act 1999 and asprescribed agencies under the Financial Management and Accountability Act 1997 on3 November 2004. These agencies were incorporated into the Department following theAdministrative Arrangements Order changes announced after the October 2004 election. Previously both agencies received annual appropriations and published their own annual reports.

On 11 September 2002 the Bureau of Meteorology was prescribed as a new agency and all meteorological functions were transferred from the Department. Unspent non-lapsing appropriations of $25,464,432 were transferred to the Bureau of Meteorology. In 2005 it transpired that a valid section 32 determination did not exist for the appropriations transferred. A receivable from the Bureau of Meteorology for $25,464,432 was brought to account and included in total assets recognised from restructuring.

This receivable was subsequently reversed during 2005-06 as a result of a Ministerial determination.

2006 2005$'000 $'000

In respect of the functions assumed, the net book value of assets and liabilities transferred to theDepartment for no consideration and recognised as at the date of transfer were:

Total assets recognised - 55,023Total liabilities recognised - (11,085)

- 43,938

Net contribution by Government as owner during the year - 43,938

There were no changes to the structure of the Department in 2005-06 as a result of anyadministrative arrangements orders (AAO's) announced by government.

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13 Cash Flow Reconciliation

Reconciliation of cash per Balance Sheet to Statement of Cash Flows

Cash at year end per Statement of Cash Flows 5,144 3,879

Balance Sheet items comprising above cash: 'Financial Asset - Cash' 5,144 3,879

Reconciliation of operating (loss) to net cash from operating activities

Operating (loss) (29,223) (15,892)Assets recognised for first time - (233)Depreciation / Amortisation 25,822 25,898Net (Gains) on disposal of non-current assets (138) 406Write down of current assets - 5,955Write down of non-current assets 7,480 -Adjustments made directly to Equity* (10,494) -

Increase in net assets from restructuring - 38,465Other revenues and expenses not involving cash - (492)(Increase) / decrease in receivables 24,881 (68,427)(Increase) / decrease in inventories 3,364 (1,623)(Increase) / decrease in accrued revenue 444 (7,373)(Increase) / decrease in other financial assets - 23(Increase) / decrease in prepayments 1,449 (1,101)Increase / (decrease) in other interest bearing liabilities (103) (1,012)Increase / (decrease) in employee provisions 2,970 2,975Increase / (decrease) in other provisions (71) 5,931Increase / (decrease) in suppliers liabilities (6,287) 16,072Increase / (decrease) in grant liabilities (4,187) 4,262Increase / (decrease) in other liabilities (1,998) 70Net cash from operating activities 13,909 3,904

*refer Statement of Changes in Equity Adjustments for errors 2,019 - Adjustments for changes in accounting policies (3,731) - Revaluation increment - make good provisions 16,682 - Other (Refer note 7.2) (25,464) -

(10,494) -

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ents

14 Contingent Liabilities and Assets

Quantifiable Contingencies

Contingent AssetLosses arising from events insured by Australian Antarctic Division andsubject to insurance claims which are still pending as at 30 June. ($7.909 Million).

(2005: $9.286 Million).

There are no other quantifiable contingencies in either the current or theimmediately preceding reporting period.

(2005: Nil).

Unquantifiable Contingencies

2006: Nil

(2005: Nil).

Remote contingencies

2006: Nil

(2005: 1 claims for damages/costs - estimated dollar value $300,000)

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15 Executive Remuneration

The number of executives who received or were due to receive total remuneration of $130,000 or more:

2006 2005Number Number

$130,000 to $144,999 3 4$145,000 to $159,999 4 -$160,000 to $174,999 11 6$175,000 to $189,999 4 10$190,000 to $204,999 10 4$205,000 to $219,999 5 2$220,000 to $234,999 3 3$235,000 to $249,999 1 3$250,000 to $264,999 3 -$265,000 to $279,999 2 1$280,000 to $294,999 1 1$295,000 to $309,999 - 1$310,000 to $324,999 2 -$370,000 to $384,999 1$385,000 to $399,999 - 1$400,000 to $414,999 1 -

51 36

The aggregate amount of total remuneration of executive shown above. 10,558,909$ 7,259,174$

The aggregate amount of separation and redundancy/terminationbenefit payments during the year to executives shown above. 398,711$ 156,805$

The increase in executive remuneration reflects the full year impactof the merging of the National Oceans Office (NOO) and theAustralian Greenhouse Office (AGO) with the Department on 3November 2004. (Refer note 12 Restructuring)

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ents

16 Remuneration of Auditors

2006 2005$ $

Financial statement audit services are provided free of charge to theDepartment. The fair value of audit services provided was: 440,000 512,000

No other services were provided by the Auditor General.

17 Average Staffing Levels

2006 2005Number Number

The average staffing levels for the Department during the year were: 1,558 1,513

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Financial statem

ents

18.2 Net Fair Values of Financial Assets and Liabilitie s

The net fair value of each class of the Department's financial assets and liabilities equals its carrying amount in both the current and immediately preceding reporting period, and none of these financialassets or liabilities are readily traded on organised markets in a standardised form

18.3 Credit Risk Exposures

The Department's maximum exposures to credit risk at reporting date in relation to each class o frecognised financial assets is the carrying amount of those assets as indicated in the Balanc eSheet.

The Department has no significant exposures to any concentrations of credit risk .

All figures for credit risk referred to do not take into account the value of any collateral or othersecurity.

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19 Revenues Administered on Behalf of Government

Taxation Revenues

Note 19A: Other taxes fees and fines Other taxes, fees and fines 1,270 1,480

Non-taxation Revenues

Note 19B: Goods and services Sale of goods - external entitie s 760 184Rendering of services - external entitie s 417 1,001Other fees from regulatory services -externa l 3,489 802

Total goods and services 4,666 1,987

Note 19C: Interes tLoans - State and Territory Government s 4 5Other 104 4

Total interest 108 9

Note 19D: Industry contribution sIndustry contribution s 7,500 7,400

Note 19E: Grant repayment sGrant repayment s 3,761 1,406

Note 19F: Assets recognised for the first tim eAssets recognised for the first tim e 1,411 2,113

Note 19G: OtherOther sources of non-taxation revenue s 2,237 424

Gains

Note 19H Other Gains Audit services received free of charge for the NH T 73 65

Total income administered on behalf of Government 21,026 14,884

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ents

2006 2005$'000 $'000

20 Expenses Administered on Behalf of Government

Note 20A: Grants State and Territory government s 270,966 224,711Non-profit institution s 62,806 30,196Other sectors in the Commonwealt h 40,347 38,246Profit making entitie s 28,484 29,132Individuals 15,167 2,936Local government s 14,920 8,153Overseas 4,764 2,055Universities 4,330 1,989

Total grants 441,784 337,418

The nature of the grants is as follows: Natural Heritage Trust - Bushcar e 92,157 96,807Natural Heritage Trust - Landcar e 82,174 68,687Natural Heritage Trust - Coastcare 46,887 49,163Water Fund Progra m 45,830 1,000Natural Heritage Trust - Rivercar e 39,550 43,177Representative Areas Program - Structural Adjustment Packag e 32,617 16,887Renewable Remote Power Generation Progra m 28,738 16,053Greenhouse Gas Abatement Progra m 13,708 12,691Cathedral Restoration Project s 10,500 -Climate Change Strategy Program s 8,092 2,688Tasmanian Forest s 5,500 -Photovoltaic Rebate Progra m 4,622 3,537Regional Natural Heritage Progra m 4,260 1,608Indigenous Heritage Progra m 3,261 -Daintree Conservation Initiative 2,650 1,665Marine and Tropical Science Research Facilit y 2,595 -Australian Wildlife Hospita l 2,500 -National Heritage Investment Initiativ e 2,200 -Renewable Energy Equity Fun d 2,138 -Low Emission s 1,950 -Australian Biological Resources Study Participatory Progra m 1,859 1,827Renewable Energy Commericalisation Progra m 1,658 1,441Protecting Australia's Biodiversity Hotspot s 1,600 2,000Strengthening Tasmania Program s 1,150 550Grants-in-Aid – National Trus t 842 822Solar Cities 550 -National Cultural Heritage Progra m 479 182National Environmental Protection Council 429 429Local Greenhouse Action Progra m 404 390Mawsons Hut Restoratio n 320 -Alternative Fuels Conversion Progra m 223 2,770Launceston Air Qualit y 200 -Boat Harbour and Sisters Beach Sewerage Schem e 108 692Environmental Rating Schem e 33 15Maintenance and Protection of Indigenous Heritage Progra m - 1,737Acquisition of Leases and Legal Cost s - 9,850

441,784 337,418

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20 Expenses Administered on Behalf of Government (continued)

Note 20B: Suppliers Provision of goods - external entitie s 884 930Rendering of services - related entitie s 25,853 23,375Rendering of services - external entitie s 29,605 29,842

Total suppliers 56,342 54,147

Note 20C: Write-down and impairment of asset sFinancial assets - receivables - loans to Commonwealth entitie s 2,840 300Financial assets - receivables - othe r 138 34Non-financial assets - inventorie s - 269Non-financial assets - other * - 32,237

Total write-down and impairment of assets 2,978 32,840

*

Note 20D: Othe rOther expenses administered on behalf of Government - 581

Total expenses administered on behalf of Government 501,104 424,986

Under the Representative Areas Program - Structural AdjustmentPackage fishing licences to the value of $32,237,000 were acquiredduring the 2004-05 year. The rights embodied in the fishing licencesrepresent possible future economic benefit. Their cash-generatingpotential could be realised through use or disposal. The licences wereacquired with a view, not to realise their cash potential, but with thepublic purpose of lessening fishing pressure on the Great Barrier Reef. As there is presently no intention to use the licences to generate anycash flows through use or disposal the value of the fishing licences hasbeen written down to nil.

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2006 2005$'000 $'000

21 Assets Administered on Behalf of Government

Financial assets

Note 21A: Cash and cash equivalents Special accounts 9 18Other 106 417

Total cash 115 435

The balance of the administered cash account is non-interest bearing.

Note 21B: Receivables Loans to State and Territory governments 24 34

Loans to Commonwealth Entit y 7,429 4,409Provision for doubtful debts (5,710) (2,870)

1,719 1,539

Goods and services - 8

Goods and Services Tax 12,438 4,290

Other receivables 319 534Provision for doubtful debts (144) (116)

175 418

Total receivables (net) 14,356 6,289

Receivables (gross) are aged as follows: Not overdue 19,964 8,984Overdue by: Less than 30 days 24 54 30 to 60 days - 50 60 to 90 days 26 3 More than 90 days 196 184

Total receivables (gross) 20,210 9,275

Loans were made under financial assistance legislation. No security isrequired. Principal is repaid in full at maturity. Interest rates are fixed. Effective interest rates range from 9.0% to 14.475%. Interest payments aredue on the last day of July and January each financial year.

The loan represents the funding payments to IIF Investments Pty Ltd (IIPL)less repayments under the Renewable Energy Equity Fund (REEF)Program. The loan agreement was negotiated between the IIPL and theIndustry Research and Development Board (IRD) on behalf of theCommonwealth under the REEF Program. The Annual Report of IIPLprovides further information on the investments under the REEF Program.

All receivables are with entities external to the Department. Credit termsare generally 30 da ys (2004: 30 da ys).

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2006 2005$'000 $'000

21 Assets Administered on Behalf of Government (continued)

The provision for doubtful debts is aged as follows: Not overdue (5,710) (2,870)Overdue by: More than 90 days (144) (116)

(5,854) (2,986)

Note 21C: Investments - Available for Sale Commonwealth authorities, (Refer Note 25) - Director of National Parks 145,675 95,907 - Great Barrier Reef Marine Park Authority 17,004 13,017 - Sydney Harbour Federation Trus t 114,918 25,877

Total investments 277,597 134,801

Note 21D: Accrued Revenues Goods and services 36 19Interest on loans 2 2GST - 1,474Other - 67

Total accrued revenues 38 1,562

Total financial assets 292,106 143,087

Non-financial assets

Note 21E: Land and Buildings Heritage buildings - at acquisition value 4,750 4,750

Note 21F: Infrastructure, Plant and Equipment Heritage plant and equipment - fair value 1,271 1,271

Revaluation was completed by the Australian Valuation Officein accordance with the policy stated in Note 1.

Note 21G: Other Non-financial Assets Prepayments

Prepaid Grant - Point Nepean Trust 27,000 -Other Prepayments 129 2,899

27,129 2,899

Total non-financial assets 33,150 8,920

Total assets administered on behalf of Government 325,256 152,007

Page 322: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

Department of the Environment and Heritage Annual Report 2005–06 318

Financial statem

ents

2006 2005$'000 $'000

22 Liabilities Administered on Behalf of Government

Payables

Note 22A: Suppliers Trade creditors 987 4,035

Note 22B: Grant Payables Public sector

State and Territory governments 11,850 32,510Local governments 19 249Commonwealth entities 657 3,011

Private sector Non-profit institutions 2,485 2,371Profit making entities 2,561 14,945Individuals - 37

Universities 94 268Total grant payables 17,666 53,391

Note 22C: Other payables Goods and Services Tax 668 253Accrued Expenses 439 501Miscellaneous 341 268

Total other payables 1,448 1,022

Total payables 20,101 58,448

Total liabilities administered on behalf of Government 20,101 58,448

All liabilities are expected to be settled within 12 months of balance date.

(All grants are to entities that are not part of the Department. Settlement ismade in accordance with terms and conditions for each grant. This isusually within 30 days of performance or eligibility).

All creditors are entities that are not part of the Australian Government. Settlement is usually made within 30 days

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2006 2005$'000 $'000

23 Administered Reconciliation Table

Opening administered assets less administered liabilities as at 1 July 93,559 88,611

Opening Balance fair value adjustment - administered investments 114,778 -

Plus: Administered revenues 21,026 14,884Less: Administered expenses (501,104) (424,986)Administered transfers to / from Government: Appropriation transfers from OPA:

Annual appropriations administered expenses 256,079 129,964Annual appropriations special accounts 334,555 309,859

Transfers to OPA including GST (41,756) (37,975)Restructuring - (7,555)Administered Investments - gain 28,018 16,500Adjustments for changes in accounting policy - (571)Adjustments for errors - 4,828

Closing administered assets less administered liabilities as at 30 June 305,155 93,559

24 Administered Contingent Liabilities and Assets

Quantifiable administered contingencies

There are no quantifiable contingencies in either the current or the immediately preceding reporting periods, therefore there is no Schedule for such items.

Unquantifiable administered contingencies

Nil for 2006 and 2005.

Remote administered contingencies

Nil for 2006 and 2005.

Page 324: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

Department of the Environment and Heritage Annual Report 2005–06 320

Financial statem

ents

25 Administered Investments - Available for Sale

The principal activities of each of the Department's administered investments are as follows:

* Director of National Parks - assists the Minister and the Department in the conservation and appreciation of Australia's biological diversity and associated cultural heritage, through leadership and cooperation in the management of the Commonwealth's protected areas.

* Great Barrier Reef Marine Park Authority - works in partnership with Commonwealth and Queensland government agencies to undertake a wide range of functions to ensure that the conservation and world heritage values of the Great Barrier Reef are preserved for future generations.

* Sydney Harbour Federation Trust - responsible for planning, managing, conserving, enhancing and making publicly accessible certain lands on or near the foreshores of Sydney Harbour.

The value of Administered Investments has moved as follows;

Investment 30/6/2005 1/7/2005Director of National Parks 95,907 136,587 40,680Great Barrier Reef Marine Park Authority 13,017 16,395 3,378Sydney Harbour Federation Trust 25,877 96,597 70,720Movement in carrying amount of investment AEIFRS 134,801 249,579 114,778

Investment 1/7/2005 30/6/2006Director of National Parks 136,587 145,675 9,088Great Barrier Reef Marine Park Authority 16,395 17,004 609Sydney Harbour Federation Trust 96,597 114,918 18,321Movement in carrying amount of investment 2005-2006 249,579 277,597 28,018

Valuation at

Valuation at

Changefor

AEIFRS

Change

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26 Administered Restructuring

2006: Nil Restructuring

2005:A major change impacting on the Department was the abolition of the Australian Greenhouse Office and the National Oceans Office as executive agencies under the Public Service Act 1999 and as prescribed agencies under the Financial Management and Accountability Act 1997 on 3 November 2004. These agencies were incorporated into the Department following theAdministrative Arrangements Order changes announced after the October 2004 election .Previously both agencies received annual appropriation and published their own annual reports .

In respect of the function assumed, the net book value of administered assets and liabilities transferred to the Department for no consideration and recognised as at the date of transfer was :

2006 2005$'000 $'000

Total assets recognise d - 3,515Total liabilities recognise d - 11,070Net (liabilities) assumed - (7,555)

Net (decrease) in administered net assets during the year - (7,555)

Page 326: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

Department of the Environment and Heritage Annual Report 2005–06 322

Financial statem

ents

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27.2 Net Fair Values of Administered Financial Assets and Liabilitie s

The net fair value of each class of administered financial assets and liabilities equals its carrying amount in both the current and immediately preceding reporting period, and none of these financial assets or liabilities are readily traded on organised markets in a standardised form .

27.3 Credit Risk Exposures

The Department's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets and liabilities is the carrying amount of those assets and liabilities as indicated in the Schedule of Administered Items which details assets and liabilities administere don behalf of Government.

The Department has no significant exposures to any concentrations of credit risk .

All figures for credit risk referred to do not take into account the value of any collateral or other security.

Page 328: Department of the Environment and Water Resources annual report 2005 - 2006, Part 1

Department of the Environment and Heritage Annual Report 2005–06 324

Financial statem

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Department of the Environment and Heritage Annual Report 2005–06 326

Financial statem

ents

28.3 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Unlimited Amount)

Natural Heritage Trust of Australia Act 1997 AdministeredSub-section 6(2)

2006 2005$ $

Purpose: Amount equal to the fixed-income percentage of the uninvested amountstanding to the credit of the Account as at the end of the financial year.

Cash payments made during the year - -Nil payments were processed during the year - $22,445,253 wastransfered to the Account via the self executing provisions of thelegislation (2004-2005: $20,049,992)

Budget Estimate 22,130,000 18,836,000

28.4 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Refund Provisions)

Financial Management and Accountability Act 1997 AdministeredSection 28

2006 2005$ $

Purpose: For refunds of application fees received under the EnvironmentProtection and Biodiversity Conservation Act 1999 and moniesincorrectly forwarded to the Official Public Account

Cash payments made during the year 51,973 2,875Appropriations credited to Special Accounts - -Refunds received (net) (FMA s 30) - -Total charged to special appropriatio n 51,973 2,875Budget Estimate (FMA s28) - -

28.5 Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Limited Amount)

Appropriation (Supplementary Measures) Act (No. 2) 1999 DepartmentalSection 3 Outcome 1Purpose: Supporting the development and implementation of in-service emissions testing capabilities for diesel

and petrol vehicles, where the diesel emissions testing is in connection with the making and/orimplementation of a Diesel National Environment Protection Measure.

There were no transactions against this appropriation during 2005-2006 (2004-2005: Nil). The balance of this appropriation at 30 June 2006 is Nil (2004-2005: Nil).

Appropriation (Supplementary Measures) Act (No. 2) 1999 DepartmentalSection 3 Outcome 1Purpose: Developing a product stewardship system for the reuse and recycling of waste oil.

There were no transactions against this appropriation during 2005-2006 (2004-2005: Nil). The balance of this appropriation at 30 June 2006 is Nil (2004-2005: Nil).

Captains Flat (Abatement of Pollution) Agreement Act 1975 AdministeredSection 4Purpose: Amounts payable to the Government of New South Wales in accordance with an agreement made under

section 3, by way of financial assistance.

There were no transactions against this appropriation during 2005-2006 (2004-2005: Nil). The balance of this appropriation at 30 June 2006 is Nil (2004-2005: Nil).

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anci

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tate

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2006 2005$ $

28.6 Special Accounts

a) Special accounts comprise part of the Department's administered reporting entity.

Natural Heritage Trust of Australia Account (Administered)Legal Authority - Natural Heritage Trust of Australia Act 1997, Section 4

Purpose - The purposes of the Reserve are as follows: (a) the National Vegetation Initiative; (b) the Murray-Darling 2001 Project; (c) the National Land and Water Resources Audit; (d) the National Reserve System; (e) the Coasts and Clean Seas Initiative; (f) environmental protection (as defined by section 15 of the Act); (g) supporting sustainable agriculture (as defined by section 16); (h) natural resources management (as defined by section 17 of the Act); (i) a purpose incidental or ancillary to any of the above purposes; (j) the making of grants of financial assistance for any of the above purposes; and (k) an accounting transfer purpose (as defined by section 18 of the Act).

This account earns interest at the rate of interest earned by the Commonwealth as at the end of the financial year on deposits held with the Reserve Bank of Australia. Balance carried from previous period 408,095,512 389,320,237Adjustment to balance carried from previous year (495,637) -Natural Heritage Trust of Australia Act 1997 credits:. Sub-section 6(2) 22,445,253 20,049,992. Sub-section 23(1) 302,116,000 302,607,000

Receipts from other sources 3,196,121 1,004,038GST credits (FMAA s30A) 15,169,691 16,200,185Total Credits 342,927,065 339,861,215Available for payments 750,526,940 729,181,452Payments made - Suppliers 58,437,995 53,143,195Payments made - Grants 290,345,285 267,942,745Total Debits 348,783,280 321,085,940Balance carried to next period* 401,743,660 408,095,512Represented by:Cash transferred to the Official Public Account 401,734,860 408,077,284Cash held by the entit y 8,800 18,228Total balance carried to the next period 401,743,660 408,095,512

* In accordance with the legal authority for the Account, separate financial statements are prepared for the Account. The balance for the Account is reported in those financial statements as appropriations receivable undrawn plus cash as this amount represents appropriations that are controlled by the Department but held in the Official Public Account under the Government's just-in-time drawdown arrangements.

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Department of the Environment and Heritage Annual Report 2005–06 328

Financial statem

ents

2006 2005$ $

28.6 Special Accounts continued

Ozone Protection and SGG Account (Administered)Legal Authority - Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, Section 65B

Purpose - The following are the purposes of the Account: (a) paying or reimbursing the Commonwealth's costs associated with the administration of the Act and the regulations; (b) paying or reimbursing the Commonwealth's costs associated with furthering the following programs (including providing information about those programs): (i) ODS phase-out programs; and (ii) emission minimisation programs for ODSs and SGGs; (c) paying or reimbursing the Commonwealth's costs associated with the management of the National Halon Bank; and (d) refunding any amounts credited to the Account in error.

This account is non-interest bearing. Balance carried from previous period 10,655,786 10,409,227Adjustment to balance carried from previous year 926,979 -Taxation - Levies 2,275,374 1,480,422Sale of goods and services 3,638,406 1,766,338Receipts from other sources 106,420 907,781

GST credits (FMAA s30A) 147,991 241,549Total Credits 6,168,191 2,915,668Available for payments 17,750,956 14,805,317Payments made - Suppliers 1,591,956 2,865,454Payments made - Grants 36,480 17,050Payments made - Othe r 1,405,561 1,267,027Total Debits 3,033,997 4,149,531Balance carried to next period 14,716,959 10,655,786Represented by:Cash transferred to the Official Public Account 14,716,657 10,655,786Cash held by the entit y 302 -Total balance carried to the next period 14,716,959 10,655,786

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28.6 Special Accounts (continued)

National Cultural Heritage Account (Administered)Legal Authority - Protection of Moveable Cultural Heritage Act 1986, Section 25

Purpose - Amounts standing to the credit of the National Cultural Heritage Account may be expended for the purpose of facilitating the acquisition of Australian protected objects for display or safe-keeping.

This account is non-interest bearing. Balance carried from previous perio d 318,000 441,250Appropriations Act (No. 1) 2005-06 661,100 58,750

GST credits (FMAA s30A) 31,800 18,200Total Credits 692,900 76,950Available for payment s 1,010,900 518,200Payments made - Grant s 510,900 200,200Balance carried to the next perio d 500,000 318,000Represented by:Cash transferred to the Official Public Accoun t 500,000 318,000Total balance carried to the next perio d 500,000 318,000

WELS Account (Administered)Legal Authority - Water Efficiency Labelling and Standards Act 2005, Section 64

Purpose - The purpose of the Account is to make payments: (a) to further the objects of the Water Efficiency Labelling and Standards Act 2005 (as set out in section 3 of the Act); an d (b) otherwise in connection with the performance of the Regulator's functions under the Act, the regulations or a corresponding State-Territory law .Balance carried from previous perio d - -Services - Rendering of services to external entitie s 1,214,255 -GST credits (FMAA s30A) 18,053 -Total Credits 1,232,308 -Available for payment s 1,232,308 -Payments made - Suppliers 205,127 -Balance carried to the next perio d 1,027,181 -Represented by:Cash transferred to the Official Public Accoun t 1,027,181 -Total balance carried to the next perio d 1,027,181 -

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28.6 Special Accounts (continued)

Australian Antarctic Heritage Conservation Special AccountLegal Authority - Financial Management and Accountability Act 1997, Section 20

Purpose - The following are the purposes of the Account: (a) the conservation of Antarctic and sub-Antarctic heritage, including the conservation of the Mawson's Huts Historic Site; an d (b) activities that are incidental to that conservation.

There were no transactions of this account during 2005-2006 (2004-2005: Nil). The balance of this account at 30 June 2006 is Nil (2004-2005: Nil).

Sea Installations Account Legal Authority - Sea Installations Act 1987, Section 38

Purpose - There must be transferred to the Reserve from the Consolidated Revenue Fund amounts equal to money paid as a security under section 37 by way of a cash deposit.

There were no transactions of this account during 2005-2006 (2004-2005: Nil). The balance of this account at 30 June 2006 is Nil (2004-2005: Nil).

b) Special public moneys are trust account in nature and do not comprise part of the Department' sreporting entity.

Other Trust Moneys Account (Special Public Money)Legal Authority - Financial Management and Accountability Act 1997 , Section 20

Purpose - For the expenditure of moneys temporarily held on trust or otherwise for the benefi t of a person other than the Commonwealt h

This account is non-interest bearing. Balance carried from previous perio d 123,113 10,591Adjustment to balance carried from previous yea r (478) -Other Receipts 341,386 112,853Available for payment s 464,021 123,444Payments made - Othe r 201,949 331Balance carried to the next perio d 262,072 123,113Represented by:Cash transferred to the Official Public Accoun t 262,072 123,113

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Environment - Services for other Governments and Non-agency Bodies Account(Special Public Money)Legal Authority - Financial Management and Accountability Act 1997 , Section 20

Purpose - For the expenditure in connection with services performed on behalf of othe r Governments and bodies that are not Agencies under the Financial Management and Accountability Act 1997.

This account is non-interest bearing. Balance carried from previous perio d 3,333,684 3,372,987Adjustment to balance carried from previous yea r 1,326 -Sale of goods and services 260,250 380,405Other Receipts 30 -GST credits (FMAA s30A) 31,727 20,907Available for payment s 3,627,017 3,774,299Payments made - Suppliers 296,740 440,615Payments made - Grant s 116,901 -Total Debits 413,641 -Balance carried to the next perio d 3,213,376 3,333,684Represented by:Cash transferred to the Official Public Accoun t 3,213,314 3,332,902Cash held by the entit y 62 782Total Balance carried to the next perio d 3,213,376 3,333,684

Australian and New Zealand Environment and Conservation Council Fund Trust Account (Special Public Money)Legal Authority - Financial Management and Accountability Act 1997 , Section 20

Purpose - for expenditure to support environmental research and special activities approved b y the Australian and New Zealand Environment and Conservation Council or a Committee appointed by the Council for that purpose. This account is non-interest bearing. The account was formally abolished on 16 May 200 6Balance carried from previous perio d 12,429 12,429Other Receipts - -GST credits (FMAA s30A) - -Available for payment s 12,429 12,429Payments made 12,429 -Balance carried to the next perio d - 12,429Represented by:Cash transferred to the Official Public Accoun t - 12,429

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29 Specific Payment DDisclosures

Act of Grace

No Act of Grace expenses were incurred during the reporting period. (2005: No Act of Grace incurred)

Waivers

No waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2005: No waivers )

Ex-Gratia

No ex-gratia payments were made during the reporting period. (2005: No ex-gratia payments )

Defective Administration Scheme

No payments were made under the Defective Administration Scheme. (2005: No payment was made under the Defective Administration Scheme)

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30 Reporting by Outcomes

A percentage based attribution system has been used to determine the allocation of shared items. The percentages useddiffer in some instances from those used for the 2004-2005 Budget.

30.1 Net cost of Outcome Delivery

2006 2005 2006 2005 2006 2005$'000 $'000's $'000 $'000's $'000 $'000's

Administered expenses 500,784 424,986 320 - 501,104 424,986Departmental expense s 281,115 232,012 124,106 116,839 405,221 348,851Total expenses 781,899 656,998 124,426 116,839 906,325 773,837Costs recovered from provision of goods and services to the non-government sector:

Administere d 5,935 3,467 - - 5,935 3,467 Departmenta l 7,246 4,749 1,084 1,428 8,330 6,177Total costs recovered 13,182 8,216 1,084 1,428 14,266 9,644Other external revenues:

Administere d Interest on loans 108 9 - - 108 9 Industry contributions 7,500 7,400 - - 7,500 7,400 Othe r 7,483 4,008 - - 7,483 4,008 Total administere d 15,091 11,417 - - 15,091 11,417 Departmenta l Interest on cash deposits - 1 - - - 1 Revenue from disposal of assets (106) 165 128 83 22 248 Reversal of previous asset write-downs 25 11 - 25 11 Othe r 2,013 1,583 1,604 59 3,617 1,642 Goods and services revenue from related entitie s 33,402 27,528 1,244 11,647 34,646 39,175 Total departmenta l 35,334 29,288 2,976 11,789 38,310 41,077Total other external revenues 50,424 40,705 2,976 11,789 53,400 52,494Net cost / (contribution) of outcome 718,293 608,177 120,366 95,290 838,659 703,467

Outcome 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculatingthe actual Budget Outcome. Refer to Outcome 1 Resourcing Table and Outcome 2 Resourcing Table of this Annual Report.

Outcome 1 Outcome 2 Total

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30.2 Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs

Departmental Expenses Employees SuppliersGrants and

Transfer Funding Depreciation Other expenses

TotalDepartmental

Expenses

$'000 $'000 $'000 $'000 $'000 $'000

OUTCOME 1 Output 1.1 2006 22,180 32,798 7,324 1,239 488 64,029

2005 14,229 21,914 2,771 724 237 39,875 Output 1.2 2006 31,065 21,723 44,857 1,043 455 99,143

2005 21,460 12,789 41,067 740 268 76,324 Output 1.3 2006 14,604 13,919 1,309 496 184 30,512

2005 18,466 13,251 1,322 776 123 33,938 Output 1.4 2006 11,648 8,463 1,831 703 185 22,830

2005 12,251 6,155 5,255 744 146 24,551 Output 1.5 2006 26,940 24,851 10,648 1,799 363 64,601

2005 26,075 19,038 8,510 2,215 1,486 57,324 Total 2006 106,437 101,754 65,969 5,280 1,675 281,115Outcome 1 2005 92,481 73,147 58,925 5,199 2,260 232,012

OUTCOME 2 Output 2.1 2006 11,655 19,499 259 7,395 5,868 44,676

2005 10,242 19,593 272 7,452 4,504 42,062 Output 2.2 2006 20,720 34,667 462 13,147 10,434 79,430

2005 18,207 34,833 483 13,247 8,006 74,777 Total 2006 32,375 54,166 721 20,542 16,302 124,106Outcome 2 2005 28,449 54,426 755 20,699 12,510 116,839

TOTAL 2006 138,812 155,920 66,690 25,822 17,977 405,2212005 120,930 127,573 59,680 25,898 14,770 348,851

Outcome 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.

30.2 Major Classes of Departmental Revenues and Expenses by Output Groups and Outputs (continued)

Revenuesfrom

GovernmentSale of goods

and services Interest Other revenues

TotalDepartmental

RevenuesFunded by: $'000 $'000 $'000 $'000 $'000OUTCOME 1 Output 1.1 2006 61,836 2,950 186 64,972

2005 46,930 1,232 1 310 48,473 Output 1.2 2006 78,880 17,643 424 96,947

2005 64,825 16,010 - 191 81,026 Output 1.3 2006 22,694 6,738 98 29,530

2005 25,543 6,671 - 150 32,364 Output 1.4 2006 22,039 1,100 259 23,398

2005 22,755 1,040 - 326 24,121 Output 1.5 2006 49,346 12,217 965 62,528

2005 48,623 7,324 - 783 56,730 Total 2006 234,795 40,648 - 1,932 277,375Outcome 1 2005 208,676 32,277 1 1,760 242,714

OUTCOME 2

Output 2.1 2006 34,042 838 0 623 35,5032005 30,877 1,364 0 246 32,487

Output 2.2 2006 60,521 1,490 - 1,109 63,1202005 54,894 2,425 - 439 57,758

Total 2006 94,563 2,328 - 1,732 98,623Outcome 2 2005 85,771 3,789 - 685 90,245

TOTAL 2006 329,358 42,976 - 3,664 375,9982005 294,447 36,066 1 2,445 332,959

Outcome 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.

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30.3 Major Classes of Administered Revenues and Expenses by Outcome

2006 2005 2006 2005 2006 2005$'000 $'000 $'000 $'000 $'000 $'000

Administered RevenuesAudit services received free of charge forthe NHT 73 65 - - 73 65Interest 108 9 - - 108 9Sales of goods and services 5,935 3,467 - - 5,935 3,467Industry contributions 7,500 7,400 - - 7,500 7,400Other revenue 7,410 3,943 - - 7,410 3,943Total administered revenues 21,026 14,884 - - 21,026 14,884Administered ExpensesGrants 441,464 337,418 320 - 441,784 337,418Suppliers 56,342 54,147 - - 56,342 54,147Write-down of assets 2,978 32,840 - - 2,978 32,840Other - 581 - - - 581Total administered expenses 500,784 424,986 320 - 501,104 424,986

Outcome 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated incalculating the actual Budget Outcome.

Outcome 2 TotalOutcome 1

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GLOSSARY

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Glossary

Abyssal ocean relates to the region of the ocean bottom where light does not

reach, between the bathyal and hadal zones, from depths of approximately 3 000

to 6 000 metres.

Accrual accounting is the system of accounting where items are brought to

account and included in the fi nancial statements as they are earned or incurred,

rather than as they are received or paid.

Administered items are expenses, revenues, assets or liabilities managed

by agencies on behalf of the Commonwealth. Administered expenses include

grants, subsidies and benefi ts, and may fund the delivery of third party outputs.

For example the department administers appropriations for the Australian

Government’s Natural Heritage Trust to provide grants. This annual report refers

to appropriations for administered items as ‘administered appropriations’.

Additional estimates is a process where the parliament may appropriate more

funds to portfolios if the amounts appropriated at Budget time are insuffi cient.

Appropriations are authorisations by the parliament to spend monies from

the Consolidated Revenue Fund. Two appropriation Bills are introduced into

parliament in May and comprise the Budget. Further Bills are introduced later in

the fi nancial year as part of the additional estimates.

Biodiversity in essence means the variety of life. The term ‘biodiversity’ is a

contraction of, and synonymous with, ‘biological diversity’. Biological diversity

is defi ned in Article 2 of the Convention on Biological Diversity to mean ‘the

variability among living organisms from all sources including, inter alia, terrestrial,

marine and other aquatic ecosystems and the ecological complexes of which

they are part; this includes diversity within species, between species and of

ecosystems’ (a similar defi nition appears in the glossary to the Ramsar Convention

on wetlands). Apparently this term was fi rst defi ned in 1980 to include two related

concepts, genetic diversity (the amount of genetic variability within species) and

ecological diversity (the number of species in a community of organisms). In terms

of the diversity between species, estimates of the total number of species range

from three to 100 million. Apparently the contracted form ‘biodiversity’ was coined

in 1986.

Bioregion in essence means a geographic area characterised by a combination of

physical and biological characteristics, for example, terrain, climate and ecological

communities. The glossary of terms related to the Convention on Biological

Diversity provides the following defi nition: ‘a territory defi ned by a combination of

biological, social, and geographic criteria, rather than geopolitical considerations;

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generally, a system of related, interconnected ecosystems’. The term ‘bioregion’

is a contraction of biogeographic region and is usually synonymous with that

term. The glossary to the Ramsar Convention on wetlands provides the following

defi nition of ‘biogeographic region’ in relation to wetland management: ‘a

scientifi cally rigorous determination of regions as established using biological and

physical parameters such as climate, soil type, vegetation cover, etc’. Bioregions

are a useful way to analyse patterns of biodiversity. The defi nition of a particular

bioregion depends on the scale at which its characteristic features are measured.

Commonwealth heritage refers to a list of places under the Environment

Protection and Biodiversity Conservation Act 1999, which are owned or

controlled by the Australian Government, and that have natural, Indigenous

and historic heritage values. These include places connected to defence,

communications, customs and other government activities that also refl ect

Australia’s development as a nation.

Conservation covenants are a voluntarily entered, but permanently legally

binding restriction on the way in which landowners are able to use their land. For

example, on a covenanted area, grazing may be prohibited and additional weed

control expected. The restriction is in the form of a conservation covenant that is

attached to the land title. Compliance with the conservation covenant is generally

via a regular inspection by the body which is a party to the conservation covenant

(usually a government department or statutory authority in Australia).

Corporate governance is the process by which agencies are directed,

controlled and held to account. It is generally understood to encompass authority,

accountability, stewardship, leadership, direction and control.

Departmental items are assets, liabilities, revenues and expenses that are

controlled by the agency in providing its outputs. Departmental items would

generally include computers, plant and equipment assets used by agencies in

providing goods and services and most employee expenses, supplier costs and

other administrative expenses incurred. This annual report refers to appropriations

for departmental items as ‘departmental appropriations’.

Discretionary grants are payments made to particular applicants, either

organisations or individuals, at the discretion of the portfolio minister or the

paying agency. The defi nition of discretionary grants does not include service

agreements, which are treated as contracts rather than grants; intra-Australian

Government agency funding; payments to states and other government agencies

(specifi c purpose payments) and inter-government transfers; payments to overseas

aid organisations; government income support programmes; emergency payment

programmes; grants under commercial industry development programmes

(including to increase research and development, and assist exporters); grant

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programmes specifi cally for educational institutions and medical research

institutions; grants approved by Australian Government bodies outside the general

government sector; payments of a specifi c sum of money or a fi xed percentage

of shared funding to an organisation or individual that are made according to

a Cabinet decision, a letter from the prime minister, or a determination of a

ministerial council.

Distributed generation systems are small, modular, decentralized, grid-

connected energy systems located in or near the place where energy is used.

Distributed generation permits consumers who are generating heat or electricity

for their own needs to send surplus electrical power back into the power grid.

Ecologically sustainable is used to describe activities that meet present needs

without compromising the ability to meet future needs because of damage to

the environment. For example, the National Strategy for Ecologically Sustainable

Development defi nes ecologically sustainable development as ‘using, conserving

and enhancing the community’s resources so that ecological processes, on which

life depends, are maintained, and the total quality of life, now and in the future,

can be increased’. The Environment Protection and Biodiversity Conservation

Act 1999 defi nes ecologically sustainable use of natural resources as meaning ‘use

of the natural resources within their capacity to sustain natural processes while

maintaining the life-support systems of nature and ensuring that the benefi t of the

use to the present generation does not diminish the potential to meet the needs

and aspirations of future generations’.

Ecological communities are any naturally occurring group of species inhabiting

a common environment, interacting with each other especially through food

relationships and relatively independent of other groups. Ecological communities

may vary in size, and larger ones may contain smaller ones. In the Environment

Protection and Biodiversity Conservation Act 1999 they are defi ned as

assemblages of native species that inhabit particular areas in nature.

Environmental fl ow is water provided for the environment to sustain and

where necessary restore ecological processes and biodiversity of water dependent

ecosystems.

The Environment Protection and Heritage Council comprises environment

and planning ministers from Australia’s federal, state and territory governments,

and from the governments of New Zealand and Papua New Guinea, and a

representative of the Australian Local Government Association. The council

incorporates the National Environment Protection Council. The scope of the

Environment Protection and Heritage Council covers environment protection and

heritage (natural, historic and Indigenous heritage) responsibilities.

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Expense is the total value of all of the resources consumed in producing goods

and services.

Financial results are the results shown in the fi nancial statements of an agency.

Forest sink is a forest that stores more carbon than it releases. Forests absorb or

take up carbon dioxide from the atmosphere as they grow, and store carbon in the

trees and soil. Some carbon is returned to the atmosphere, for example through

loss of leaves and branches.

Geosequestration, a contraction of ‘geological sequestration’, involves storing

gases such as carbon dioxide underground in deep saline aquifers, depleted oil

and gas reservoirs, coal seams or natural underground pore spaces. Scientists

are investigating whether it is feasible to store carbon dioxide in this way instead

of emitting it to the atmosphere, where as a greenhouse gas it would add to the

greenhouse effect.

Greenhouse gases are heat-trapping gases that are a natural part of the

atmosphere. They maintain higher temperatures at the earth’s surface than

would otherwise be possible. This phenomenon is called the greenhouse effect.

The earth’s climate is warming. Scientists agree that some of this warming is

due to human activities —particularly burning fossil fuels (coal, oil and natural

gas) and land clearing-that are increasing the level of emissions of greenhouse

gases into the atmosphere. Water vapour is the most abundant greenhouse gas.

Its concentration is highly variable and human activities have little direct impact

on its amount in the atmosphere. Humans have most impact on carbon dioxide,

methane and nitrous oxide. Various artifi cial chemicals such as halocarbons also

make a small contribution to climate change.

Integrated natural resource management is a way to ensure that uses

of natural resources are ecologically sustainable. It is integrated because it

attempts to manage all the activities that could affect natural resources, taking

natural processes into account as well. It combines managing uses of natural

resources with conservation. To do this it cuts across artifi cial distinctions such as

government agency responsibilities, government or property boundaries, industry

sectors and scientifi c disciplines. In defi ning management areas it gives priority to

natural over human boundaries, for example using river catchments or bioregions

as the primary basis for planning and management.

Matters of national environmental signifi cance are aspects of the work of

protecting the environment (including heritage places) for which the Australian

Government is responsible or in which it has an interest. The current list of 30

matters was identifi ed in the 1997 Heads of Agreement on Commonwealth and

State Roles and Responsibilities for the Environment signed by the Council of

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Australian Governments. The agreement allows for other matters to be added

in the future. The referrals, assessments and approvals requirements of the

Environment Protection and Biodiversity Conservation Act 1999 help to protect

seven of the 30 matters. The Australian Government’s interests in the other

matters are met through other legislation, cooperative approaches with the states

and territories, and the delivery of programmes and funding.

Movable cultural heritage refers to objects that people create or collect,

whether artistic, technological or natural, and that are an important part of cultural

heritage. With the increase in international trade in these objects, the Australian

Government can regulate the export of Australia’s signifi cant cultural heritage

objects and can act to return illegally exported objects to their country of origin.

The relevant legislation is the Protection of Movable Cultural Heritage Act 1986.

The Murray-Darling Basin Commission is the executive arm of the Murray-

Darling Basin Ministerial Council. The Department of Agriculture, Fisheries and

Forestry administers Australian Government funding to support the work of the

commission. The department is represented on the commission by the secretary

and a deputy secretary.

The Murray-Darling Basin Ministerial Council comprises government

ministers responsible for land, water and environmental resources from New

South Wales, Victoria, South Australia, Queensland and the Australian Government.

The council is the primary body responsible for providing the policy and direction

needed to implement the Murray-Darling Basin Initiative, a partnership between

governments and the community to give effect to the 1992 Murray-Darling Basin

Agreement. The council oversees management of the basin under the Murray-

Darling Basin Agreement between the Australian, Victorian, New South Wales,

South Australian, Queensland and Australian Capital Territory governments. The

agreement sets out how to share the basin’s water resources.

The National Environment Protection Council comprises the environment

ministers of each state, territory and the Australian Government. The council has

law-making powers under the National Environment Protection Council Act

1994 and works cooperatively to develop these laws, which are called ‘national

environment protection measures’. The council is part of the Environment

Protection and Heritage Council.

National Environment Protection Measures outline agreed national objectives

for protecting or managing particular aspects of the environment. These measures

have the force of law under the National Environment Protection Measures

(Implementation) Act 1998 and similar legislation in the states and territories.

Measures made to date cover a range of issues including standards for air quality,

movements of controlled waste, and used packaging.

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National heritage refers to a list of places or groups of places under the

Environment Protection and Biodiversity Conservation Act 1999 which have

outstanding heritage value to the nation—whether natural, Indigenous or historic

or a combination of these. Places on the National Heritage List are protected to the

full extent of Australian Government powers.

The Natural Heritage Ministerial Board comprises the Minister for the

Environment and Heritage and the Minister for Agriculture, Fisheries and Forestry.

The board, which is established by the Natural Heritage Trust of Australia Act

1997, provides a formal mechanism for liaison and cooperation between the two

portfolios on matters relating to the Natural Heritage Trust package.

The Natural Heritage Trust was set up by the Australian Government in 1997

to help restore and conserve Australia’s environment and natural resources. Since

then, thousands of community groups have received funding for environmental

and natural resource management projects. The 2004 Budget extended funding for

the Natural Heritage Trust until 2007–08, making it a $3 billion investment.

The Natural Resource Management Ministerial Council comprises ministers

of the Australian Government and the state and territory governments. The

council is responsible for collective national decisions about the conservation

and sustainable use of Australia’s natural resources. The council has subsumed

part of the work of the former Australian and New Zealand Environment and

Conservation Council and other former ministerial councils dealing with primary

industry matters.

Outcomes are the results, impacts or consequences of actions by the Australian

Government on the Australian community. They are listed in agencies’ portfolio

budget statements and portfolio additional estimates statements. Actual outcomes

are the results or impacts actually achieved.

Outputs are the goods and services produced by agencies on behalf of the

Australian Government for external organisations or individuals. Outputs also

include goods and services produced for other areas of government external to

an agency. In practice, most of the department’s current outputs are expressed in

broad terms linked to major environmental themes (see the executive summary of

this annual report).

Ozone depleting substances are substances that deplete the earth’s

protective ozone layer. They are widely used in refrigerators, air conditioners,

fi re extinguishers, in dry cleaning, as solvents for cleaning, electronic

equipment and as agricultural fumigants. Ozone depleting substances include

chlorofl uorocarbons, halon, hydrochlorofl uorocarbons and methyl bromide.

Countries have agreed to phase out ozone depleting substances through the

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Montreal Protocol on Substances that Deplete the Ozone Layer. Some industries

that use ozone depleting substances are replacing those substances with synthetic

greenhouse gases.

Persistent organic pollutants are hazardous and environmentally persistent

substances which can be transported between countries by the earth’s oceans

and atmosphere. The substances bioaccumulate and have been traced in the fatty

tissues of humans and other animals. Persistent organic pollutants include dieldrin,

polychlorinated byphenyls, DDT, dioxins and furans. Countries have agreed to

control the manufacture and trade of persistent organic pollutants through the

Stockholm Convention on Persistent Organic Pollutants.

Photovoltaic is technology that converts light into electricity. Photo means ‘light’

and voltaic means ‘electric’. It is often referred to as ‘PV’ for short, but more

commonly is referred to as ‘solar electric’.

Price is the amount the government or the community pays for the delivery of

agreed outputs.

Procurement encompasses the whole process of acquiring property and

services. It begins when the department has identifi ed a need and decided on

its procurement requirement. Procurement continues through the processes of

developing a business case, including risk assessment, identifying and evaluating

alternative solutions, approaching the market, assessing tenders or quotes,

contract award, delivery of and payment for the property and services and, where

relevant, the ongoing management of a contract and consideration of options

related to the contract. Procurement also extends to the ultimate disposal of

property at the end of its useful life.

Product stewardship means recognising that manufacturers, importers

and other people who benefi t from making and selling a product share some

responsibility for the environmental impacts of that product.

Purchaser-provider arrangements are arrangements under which the outputs

of one agency are purchased by another agency to contribute to outcomes.

Purchaser-provider arrangements can occur between Australian Government

agencies or between Australian Government agencies and state or territory

government or private sector bodies.

Revenue is the total value of resources earned or received to cover the

production of goods and services.

Special appropriations are monies appropriated by the parliament in an Act

separate to an annual Appropriation Act, where the payment is for a specifi ed

amount. For example, the department receives special appropriations under laws

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that require industry to pay a levy on the import of ozone depleting substances.

Special appropriations are not subject to annual budget control by the parliament,

unlike the annual appropriations.

Synthetic greenhouse gases are particularly potent greenhouse gases

and are either used in industrial applications or emitted as a by-product of

industrial activity. They include hydrofl uorocarbons, perfl uorocarbons and sulfur

hexafl uoride. Some industries that use ozone depleting substances are replacing

those substances with synthetic greenhouse gases.

Toxic dinofl agellates are single celled microalgae that produce potent

toxins that can affect human health. There are at least four species found in

Australian waters that are believed to be introduced: Gymnodinium catenatum,

Alexandrium minutum, A. tamarense and A. catenella. The toxins produced by

all four dinofl agellate species are accumulated by fi lter feeding shellfi sh such as

oysters, mussels and scallops making them toxic to humans and causing paralytic

shellfi sh poisoning when eaten (from CSIRO Centre for Research on Introduced

Marine Pests).

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INDEXES

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Indexes

Compliance index

This index is provided as an aid to navigation for readers familiar with the

Requirements for Annual Reports authorised by the Australian parliament’s

Joint Committee of Public Accounts and Audit. The requirements, which apply

to departments and executive agencies under subsections 63(2) and 70(2) of the

Public Service Act 1999, are published on the website of the Department of the

Prime Minister and Cabinet at www.dpmc.gov.au/guidelines/index.cfm. The index

shows how this annual report complies with the joint committee’s requirements.

Ref1 Description Requirement Page

A.4 Letter of transmittal Mandatory ii

A.5 Table of contents Mandatory iii

A.5 Index Mandatory 353

A.5 Glossary Mandatory 337

A.5 Contact offi cer(s) Mandatory Cover

A.5 Internet home page address and

internet address for report

Mandatory Cover

9.1 Review by departmental secretary Mandatory 2

9.2 Summary of signifi cant issues and

developments

Suggested 7, 2–9

9.2 Overview of department’s performance

and fi nancial results

Suggested 7, 240, 259

9.2 Outlook for following year Suggested 5

9.3 Signifi cant issues and developments—

portfolio

Portfolio

departments—

suggested

2–9

10 Overview description of department Mandatory 10

10.1 Role and functions Mandatory 10

10.1 Organisational structure Mandatory 11

10.1 Outcome and output structure Mandatory 12

1 Refers to the location of the item in the Requirements for Annual Reports. For example, ‘9.1’ refers to subsection 9(1) of

the requirements, and ‘A.4’ refers to the fourth item in Attachment A of the requirements.

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Ref1 Description Requirement Page

10.2 Where outcome and output structures

differ from portfolio budget statement

format, details of variation and reasons

for change

Mandatory 12

10.3 Portfolio structure Portfolio

departments—

mandatory

11

11.1 Review of performance during the year

in relation to outputs and contribution to

outcomes

Mandatory 15–185

11.1 Actual performance in relation to

performance targets set out in portfolio

budget statement and portfolio

additional estimates statement

Mandatory 34, 76, 105,

127, 163,

182, 209

11.1 Performance of purchaser–provider

arrangements

If applicable,

mandatory

66, 74, 76,

77, 79,

106, 107

11.1 Where performance targets differ from

the portfolio budget statement and

portfolio additional estimates statement,

details of both former and new targets,

and reasons for the change

Mandatory Not

applicable

11.1 Narrative discussion and analysis of

performance

Mandatory 15–185

11.1 Trend information Suggested 15–185

11.1 Factors, events or trends infl uencing

departmental performance

Suggested 15–185

11.1 Signifi cant changes in nature of principal

functions or services

Suggested Not

applicable

11.1 Performance against service charter

customer service standards, complaints

data, and the department’s response to

complaints

If applicable,

mandatory

209

11.1 Social justice and equity impacts Suggested 210, 211

11.2 Discussion and analysis of the

department’s fi nancial performance

Mandatory 240

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Ref1 Description Requirement Page

11.2 Discussion of any signifi cant changes

from the prior year or from budget

Suggested 240

11.3 Summary resource tables by outcomes Mandatory 243

11.4 Developments since the end of the

fi nancial year that have affected or may

signifi cantly affect the department’s

operations or fi nancial results in future

If applicable,

mandatory

Not

applicable

12.1 Statement of the main corporate

governance practices in place

Mandatory 198

12.1 Names of the senior executive and their

responsibilities

Suggested 11

12.1 Senior management committees and

their roles

Suggested 200–202

12.1 Corporate and operational planning and

associated performance reporting and

review

Suggested 200

12.1 Approach adopted to identifying areas of

signifi cant fi nancial or operational risk and

arrangements in place to manage risks

Suggested 205

12.1 Agency heads are required to certify

that their agency complies with the

Commonwealth Fraud Control Guidelines

Mandatory ii

12.1 Policy and practices on the establishment

and maintenance of appropriate ethical

standards

Suggested 208

12.1 How nature and amount of remuneration

for senior executive service offi cers is

determined

Suggested 225

12.2 Signifi cant developments in external

scrutiny

Mandatory 213

12.2 Judicial decisions and decisions of

administrative tribunals

Mandatory 213

12.2 Reports by the Auditor-General, a

parliamentary committee or the

Commonwealth Ombudsman

Mandatory 213

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Ref1 Description Requirement Page

12.3 Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

Mandatory 221

12.3 Workforce planning, staff turnover and retention

Suggested 222

12.3 Impact and features of certifi ed agreements and Australian Workplace Agreements

Suggested 225

12.3 Training and development undertaken and its impact

Suggested 229

12.3 Occupational health and safety performance Suggested 232

12.3 Productivity gains Suggested Notapplicable

12.3 Statistics on staffi ng Mandatory 222–224

12.3 Certifi ed agreements and Australian workplace agreements

Mandatory 225

12.3 Performance pay Mandatory 228

12.4 Assessment of effectiveness of assets management

If applicable, mandatory

249

12.5 Assessment of purchasing against core policies and principles

Mandatory 249

12.6 The annual report must include a summary statement detailing the number of new consultancy services contracts let during the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST)

(Additional information as in Attachment D of the Requirements for Annual Reports to be available on the internet or published as an appendix to the report. Information must be presented in accordance with the proforma as set out in Attachment D.)

Mandatory 251

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Ref1 Description Requirement Page

12.7 Competitive tendering and contracting

contracts let and outcomes

Mandatory 251

12.7 Absence of contractual provisions

allowing access by the Auditor-General

Mandatory Not

applicable

12.8 Contracts exempt from AusTender Mandatory 251

12.9 Report on performance in implementing

the Commonwealth Disability Strategy

Mandatory 236

13 Financial statements Mandatory 259

14.1 Occupational health and safety (section

74 of the Occupational Health and

Safety (Commonwealth Employment)

Act 1991)

Mandatory 232

14.1 Freedom of information (subsection 8(1)

of the Freedom of Information Act 1982)

Mandatory 214

14.1 Advertising and market research (section

311A of the Commonwealth Electoral

Act 1918)

Mandatory 252

14.1 Ecologically sustainable development

and environmental performance (section

516A of the Environment Protection

and Biodiversity Conservation Act 1999)

Mandatory 216

14.2 Discretionary grants Mandatory 253

14.3 Correction of material errors in previous

annual report

If applicable,

mandatory

116

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AAboriginal and Torres Strait Islander Heritage

Protection Act 1984, 118–19

Aboriginal Australians, see Indigenous Australians

access and equity, 210–12, 230

accidents or occurrences reported to Comcare, 233

accommodation, 218–20, 233

acid sulfate soils, 87

Action on Energy Effi ciency, 39

Adelaide, 145

Port Waterways, 89

administered items, 13, 240, 242, 245–6

Antarctica, 185

climate change, 39

coasts and oceans, 109

heritage, 131

human settlement, 167

land and inland waters, 80

Advanced Electricity Storage Technologies

Programme, 26

advertising and market research, 252

agreement-making, 225

Agreement on the Conservation of Albatrosses

and Petrels, 176–7

Agricultural/veterinary chemicals, 158, 160, 161, 164

agriculture, 91

biosecurity, 48

greenhouse gas emissions, 29, 32, 34

air conditioners, 25

air link to Antarctica, 181, 248

air quality, 143–9, 144–5, 163, 166

Launceston, 145, 163, 165, 167

Air Toxics National Environment Protection

Measure, 144–5

albatrosses, 176–7

Alert List for Environmental Weeds, 49

Alice Springs, 119

Alligator Rivers Region, 162, 165

Alpha Pinnacle Conservation Area, 71

Alternative Fuels Conversion Programme, 24, 39

Ambient Air Quality National Environment

Protection Measure, 144, 163

Amery Ice Shelf, 179–80

amphibians, 47

Anindilyakwa Indigenous Protected Area, 73

annual reports, 10

on coasts and oceans output, 109

corrections to 2004–05, 166

on heritage output, 131

on human settlement output, 167

on land and inland waters output, 81

Antarctic Approvals Online project, 174

Antarctic Climate and Ecosystem Cooperation

Research Centre, 178, 179

Antarctic policy, 171–8, 185

Antarctic science, 178–81, 184, 185

Antarctic Science Strategy 2004–05 to 2008–09, 178

Antarctic Treaty System, 172–3, 182

Antarctica (Outcome 2), 13, 170–85, 240–4, 248

discretionary grants programmes, 257

research hub, 137

Antarctica Treaty Consultative Meeting, 182

ants, 47

APEC, 100

Applied Environmental Decision Analysis

research hub, 137

Approvals and Wildlife Division, 42, 84, 134

aquatic ecosystems, 60, 101

see also rivers and river catchments; wetlands

aquatic species, 95–100, 101, 103, 137

whales, 96–7, 137, 171, 177–8

see also fi sh and fi sheries; seabirds

aquifer recharge, 61

Arafura and Timor Seas Expert Forum, 100

area of protected sites, 71–3, 76

marine, 106

asbestos, chrysotile, 158

ASEAN, 19

Asia–Pacifi c Economic Cooperation, 100

Asia–Pacifi c Focal Point for World Heritage

Managers, 121

Asia–Pacifi c Partnership on Clean Development

and Climate, 19–20

Asia–Pacifi c Seminar on Climate Change, 21

assets and liabilities, 247–9

assistant secretaries, 198–9

Association of Southeast Asian Nations, 19

audit, 203–5, 248, 251

Audit Committee, 204

Aurora Australis, 179

AusIndustry, 25, 26

AusTender, 250

Australia–China Climate Change Partnership, 21

Australia Day achievement awards, 231

Australia–United States Climate Action

Partnership, 21

Australian Antarctic Division, 137, 170–85, 198, 249

certifi ed agreement, 225, 227

environmental impacts of operations, 219

occupational health and safety, 233, 234, 235

purchasing and procurement, 250

staff, 224

Alphabetical index

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Indexes

Australian Antarctic Programme, 180–1

Australian Antarctic Science Grants scheme, 180

Australian Biodiversity Information Facility, 74

Australian Biological Resources Study, 74, 77, 80

Australian Building Codes Board, 25

Australian Bush Heritage Fund, 72

Australian Capital Territory, 155, 163

Gungahlin Drive extension, 213

national heritage places listed, 115, 116

Australian Centre for Applied Marine Mammal

Science, 137

Australian Climate Change Science Programme,

29–30, 39

Australian Collaborative Rangelands Information

System, 57–8

Australian Community Climate and Earth System

Simulator, 30

Australian Equivalents to International Financial

Reporting Standards, 249

Australian Fisheries Management Authority, 94

Australian Fuel Quality Standards, 146–7, 163, 165

Australian Government Envirofund, 66, 79

Australian Government Water Fund, 62

Australian Government’s Community Water

Grants Programme, 62–3, 78, 80

Australian Greenhouse Emissions Information

System, 31

Australian Greenhouse Offi ce, 12, 19, 178

Climate Change and Vulnerability Report, 86

website visitors, 193

Australian Heritage Council, 115–16, 125

Australian Institute of Marine Science, 104

Australian Maritime College, 99

Australian National Audit Offi ce, 204, 248

Australian National Botanic Gardens, 219, 220

Australian National University, School of Music, 123

Australian Natural Heritage Assessment Tool, 116

Australian Pest Animal Strategy, 48

Australian Pesticides and Veterinary Medicines

Authority, 160, 161

Australian Public Service Values and Code of

Conduct, 208

Australian Rangelands Conference, 65

Australian Research Institute in Education for

Sustainability, 195

Australian Retailers Association Code of Practice

for the Management of Plastic Bags, 154–5

Australian Retailers Association (NSW), 155

Australian sea lion, 95

Australian Sustainable Schools Initiative, 194

Australian Taxation Offi ce, 151

Australian War Memorial, 116

Australian Weed Committee, 48

Australian Weeds Strategy, 48

Australian Whale Sanctuary, 96–7

Australian Wildlife Hospital, 46

Australian Workplace Agreements (AWAs), 225–7

Australia’s Resources Online, 192

Australia’s Tropical Rivers Programme, 75

aviation, 181, 248

awards and recognition, 231–2

BBallarat, 63

Barmah–Millewa Forest, 59, 60

Basel Convention, 156

Baseline Research on Oceanography, Krill and the

Environment, 179

basking shark, 99

Batavia shipwreck and survivors’ camps, 122, 125

batteries, lead acid, 156

battery technology, 27

beak and feather disease, 47

Bega Valley Shire Council, 49

Bendigo, 145

benzene levels in petrol, 146

bicycle parking, 145

bilateral activities, 21–2, 99–100, 121, 190

biochemical resources, 73

Biodiversity Assessment Tool, 116

biodiversity conservation, see wildlife protection

biodiversity hotspots, 51, 77, 80

in Asia–Pacifi c region, 121

Daintree Conservation Initiative, 129, 131

biofouling, 99

biofuels, 27, 148, 167

Biofuels Taskforce report, 148

biological control, 48

biological resources, 73

Biological Resources Study, 74, 77, 80

biomass energy, 27

bioregional plans, 92–3

biosecurity, 48

Biotechnology Australia, 73, 160

biotechnology risk assessment, 159–60

birds, 47, 95

Barmah Forest, 60

cassowaries, 129

migratory, 97, 99, 173, 176–7, 183

South Australia, 72

Tasmania, 71

blue hound’s tongue, 49

Boat Harbour Beach, 91, 107, 109

boat paints, 99

Bonn Convention, 99

Booderee National Park, 69, 70, 220

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Boolcoomatta Station, 72

Brewarrina Business Centre, 120

Brewarrina Fishtraps, 117, 119

briefi ng submissions, 209

Brisbane, 124, 145

Britain, 126

brominated fl ame retardants, 158

Broome, 119

Budget, Finance and Strategy Committee, 201

Building Code of Australia, 25

building standards, 25

Bunbury, 63, 152

Burdekin catchment, 89

Bureau of Meteorology, 104, 203

Burke River, 65

Burnett catchment, 89

bus stations, bicycle parking at, 145

Bushbids, 51, 77

Bushcare, 67–8

Bushlight–Indigenous Renewable Energy

Services, 189

business continuity plan, 206

Business Restructuring Assistance, 109

bycatch, 175, 183

Ccane toads, 48, 56

Cape Denison site, 174

Cape Inscription, 122, 125

Cape Lambert Tug Pen basin, 142

capital infrastructure plan, 249

carbon accounting, 31, 32

carbon geosequestration and storage, 20, 21, 26

cars, see motor vehicles

Casey station, 175, 181, 184

Cassowary Conservation Project, 129

cathedrals, 124, 130, 131

cats, feral, 47

CCAMLR, 175, 176, 182

Census of Antarctic Marine Life, 181

certifi ed agreements, 225–7

cetaceans, 96–7, 137, 171, 177–8

Charter of Public Service in a Culturally Diverse

Society, 210–12

Chauncy Vale, 71

chemicals, 157–9, 190

risk assessments, 160, 161, 164

chief executive offi cer, 198

Chief Executive’s Instructions, 250

chief fi nance offi cer, 199, 204

childcare services feasibility study, 232

China, 19–20, 21, 121, 123

China–Australia Migratory Birds Agreement

(CAMBA), 99

chlorofl uorocarbon, 150

chrysotile asbestos, 158

churches and cathedrals, 120, 124, 130, 131

chytrid fungus, 47

CITES, 50

Cities for Climate Protection™ Australia, 28–9, 36

city air pollution, 145, 163

city water reform, 61–3

Clark Peninsula, 173

classifi cation of staff, 222–3, 226–8

Clean Air Research Programme, 145–6

Clean Up Australia, 155

climate change, 16–39, 200

Antarctica, 178–80

coastal zone and, 86

discretionary grants programmes, 253–4

Climate Change Risk and Vulnerability Report, 86

coal mine methane gas, 20, 21

Coast to Coast 2006 conference, 86

coastal and maritime heritage, 122–3, 125, 130

Coastal Catchments Initiative, 88–9

coastal investments, 85, 91, 107, 109

coastal natural resource management regions, 107

coastal strategies, 84, 86–91, 107, 109

Coastcare Programme, 67–8, 91, 107, 109

coasts and oceans, 84–109

discretionary grants programmes, 255

see also estuarine and coastal waters; wetlands

Cockburn Sound, 119

code of conduct, 208

code of practice for management of plastic bags,

154–5

collective agreement, 225

Comcare, 206, 233

claims lodged with, 235

Comcover, 205

Commemoration of Historic Events and Famous

Persons Programme, 126, 128

commercial building standards, 25

commercial whaling, 171

commercialisation of renewable energy

technologies, 27

Commission for the Conservation of Antarctic

Marine Living Resources, 175, 176, 182

Committee for Environmental Protection, 172,

173–4, 182

Commonwealth Biotechnology Ministerial

Council, 160

Commonwealth Disability Strategy, 236–9

Commonwealth Environment Research Facilities,

137–8, 165–6, 167

Commonwealth Heritage List, 114, 115, 117, 127

Commonwealth Ombudsman, 214

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Indexes

Commonwealth Scientifi c and Industrial Research

Organisation, see CSIRO

community awareness, 37

Community Information Unit, 209, 210

community services, 209–10

Community Water Grants, 62–3, 78, 80

competitive tendering and contracting, 251

complaints, 210

Compliance Executive Committee, 201

computer waste, 157

conservation agreements, 58

consultancy services, 251

contaminated water incident, 233, 234

contracts, see purchasing and procurement

Convention Concerning the Protection of the

World Cultural and Natural Heritage, 114

Convention for the Protection of the Ozone

Layer, 149, 150

Convention on Biological Diversity, 65

Convention on International Trade in Endangered

Species of Wildlife Fauna and Flora, 50

Convention on Persistent Organic Pollutants, 157–8

Convention on the Conservation of Antarctic

Marine Living Resources, 175

Convention on the Conservation of Migratory

Species of Wild Animals, 99, 177

Convention on the Control of the Transboundary

Movements of Hazardous Wastes and Their

Disposal, 156

Convention on the Law of the Sea, 92

Convention on Wetlands of International

Importance, 64

convict sites, 114–15

Cooperative National Heritage Agenda, 118

coral reefs, 121

see also Great Barrier Reef

corporate governance, 198–207

Corporate Strategies Division, 188, 199

Council of Australian Governments (COAG), 24,

30, 36, 37

Council of Managers of National Antarctic

Programmes, 181

councils, 28–9

court decisions, 213

cross-cultural training, 230

cross-cutting activities, 188–95

discretionary grants programmes, 257

CSIRO, 48

climate change and emissions projects, 21, 29,

30, 171

marine science, 99, 101, 103, 104

cultural diversity, 210–12, 230

CycleConnect, 145

Cyclone Larry, 101

DDaintree catchment, 89

Daintree Conservation Initiative, 129, 131

Dalgety, 152

Daly River, 75

Dapto, 63

Darling–Riverine Plains bioregion, 57

Darwin, 145

Darwin Harbour, 89

Davis station, 175

Defeating the Weed Menace Programme, 48, 49

deforestation, 53

demographic trends, 86

Department of Agriculture, Fisheries and

Forestry, 67, 68

urban water reform activities, 61, 62

wildlife protection activities, 48, 52, 54, 59

Department of Finance and Administration, 12,

203, 250

Department of Industry, Tourism and Resources,

25, 165

Department of the Prime Minister and Cabinet, 203

Department of Transport and Regional Services, 146

deputy secretaries, 198, 200, 221

Derwent Estuary, 89

Desert Uplands bioregion, 57

desertifi cation, 65

Development of Sewerage Schemes for Boat

Harbour and Sisters Beach, Tasmania, 91, 107, 109

Diamantina River, 65

diesel, 146, 147–8

dinofl agellates, toxic, 99

dioxins, 157–8

direct mail expenses, 252

Director of National Parks, 69, 94, 203

Disability Strategy, 236–9

discretionary grants programmes, 253–7

diseases, animal, 47

Tasmanian devils, 55, 56

Distinctively Australian Measure, 114

diuron, 161

diversity, 210–12, 230

documents held, 214

dolphins, 96–7, 137

dredged material, offshore disposal of, 142

drinking water, 61

departmental incident, 233

dugongs, 137

Duyfken, 123, 125

EEast Asian–Australasian Flyway, 100

East Mentelle Basin, 101

ECONet, 219

economic analysis, 207

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ecosystems, see wildlife protection

Edmund Barton Building, 218–19

education, environmental, 194–5

Egyptian funerary objects, 123

electric equipment and appliances, 25

electricity consumption, department, 218–19, 220

electricity generation/generators, 25, 26–7

emergency national/Commonwealth heritage

listings, 116

emissions, 138–40

motor vehicles, 146–9

see also greenhouse gas emissions

emissions management (sub-output 1.1.2), 16,

22–9, 35–6, 37

Employee Assistance Programme, 234

employees, see staff

employment agreements, 225–8

endangered species, see threatened and

vulnerable species

energy use and effi ciency, 24–5, 39, 189

department, 218–19, 220

European Union MOU, 21–2

at Mawson station, 174

energy white paper, 18, 25, 27, 37, 148

engines, small, 148–9

enquiries from community, 209

Envirofund, 66, 79

environment (Outcome 1), 13, 16–166, 240–6

Antarctic, 173–8, 182–4

environment and heritage portfolio, 10

Environment Performance Review of Australia, 189

environment protection, Antarctica, 182–4

Environment Protection and Biodiversity Act

1999, 45–7, 50, 69, 190

biological resources Regulations, 73

bioregional plans, 92

court decisions, 213

environmental assessment and approvals

provisions, 140–1

heritage provisions, 113, 114, 116–17

listing of Tasmanian devil under, 55

marine species protection, 92, 94, 97

Ramsar provisions, 64

report on environmental sustainability, 216–20

statutory offi cers under, 69, 162, 203

Environment Protection and Heritage Council,

36, 118, 143, 154, 157, 159, 164

Environment Protection and Heritage Standing

Committee, 61

Environment Protection (Sea Dumping) Act

1981, 142

Environment Quality Division, 10, 134, 198

environmental assessments, 135, 140–2, 163, 166, 167

Antarctica, 184

hazardous substance and new organisms,

159–61, 164

Environmental Economics Unit, 207

environmental education, 194–5

environmental fl ows, 44, 60

environmental information, 192–3

environmental management systems, 218, 219

environmental organisations, support for, 191

environmental research, see research and

development

Environmental Research Institute of the

Supervising Scientist, 43

Environmental Resources Information Network,

190–1

environmental sustainability, department, 216–20

Environmentally Conscious Offi cer Network, 219

equity, 210–12, 230

equity (fi nancial), 247–8

estuarine and coastal waters, 86–91, 105

research hub, 137

sea dumping and sea installations, 142

see also wetlands

ethanol, 148

ethical standards, 208

European red fox, 47

European Union, 21–2

executive agency, 10

executive committees, 200–2

Executive Group on Climate Change Adaptation, 200

executive level staff, 223, 225, 226–8, 231

Executive Roundtable, 200

executive seminar series, 230

exempt contracts, 251

exports

hazardous waste, 156

sustainable fi sheries assessments, 97–8

wildlife and wildlife products, 50

external scrutiny, 213–15

Ffamous persons, commemoration of, 126

Federal Court decision, 213

female staff, 223–4

feral animals, 47, 70

Fiji, 121

fi nance, 13, 240–336

Antarctica outcome, 185

biodiversity conservation projects, 77

for climate change and greenhouse gas

emissions, 35, 36–7

climate change output, 39

heritage output, 131

human settlement output, 167

land and inland waters output, 80

salaries and remuneration, 226–8

Financial Management Branch, 199

fi nancial performance, 240–6

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Indexes

fi nancial position, 247–8

fi nancial statements, 248, 260–336

fi rst aid offi cers, 234

fi sh and fi sheries, 95, 99, 103

Great Barrier Reef Marine Park structural

adjustment package, 100–1

illegal, unregulated and reported fi shing,

175–6, 182

long line operations, 105, 177

National Large Whale Disentanglement

Workshop, 96

Securing Our Fishing Future package, 94

sustainability assessments, 97–8

Fisher, Andrew, 126

Fitzroy River, 75

fl ame retardants, brominated, 158

Flinders River, 75

foreign technical assistance, 65, 121

forest agreements, 54–7

Forest Conservation Fund, 54–5

forest cover, 53

forest industry, 26, 29

formaldehyde, 146

fossils, 123, 125

foxes, 47, 70

Framework Convention on Climate Change, see

United Nations Framework Convention on

Climate Change

Framework for a National Cooperative Approach

to Integrated Coastal Zone Management, 86

Framework for Marine and Estuarine Water

Quality Protection, 87

fraud control, 204, 206

freedom of information, 214–15

freezers, 25

Fremantle, 115, 124, 145

French–Australian Recherche Bay investigation, 125

fuel, see petroleum and petroleum products

Fuel Quality Standards Act 2000, 146–7

Fuel Tax Credits, 24, 148

fugitive emissions sector, greenhouse gas

emissions by, 32, 34

full-time employees, 224

functions and roles, 10

executive committees, 200–2

senior executives, 198–200

GG8 Dialogue on Climate Change, Clean Energy

and Sustainable Development, 20

garden equipment, environmental performance

of, 140

Gascoyne–Murchison, 57

Gawler bioregion, 57

gender of staff, 223–4

Gene Technology Regulator, 159–60

genetic resource management, 73

Geographe Bay, 89

Georgina River, 65

Geoscience Australia, 101, 104

giant petrels, 173

Gifts to the Nation, 125, 128

glaciological research, 179

Global Biodiversity Information Facility, 116

Global Ministerial Environment Forum, 159

global warming, see climate change

goats, feral, 47

Goulburn–Murray Water Recovery Package, 44

governance, 198–207

Governance Unit, 204, 205

Government Envirofund, 66, 79

graduate programme, 229

Grants for Conservation of Cathedrals and

Churches, 124, 130, 131

Grants-in-Aid-National Trust, 124–5, 128

Grants to Voluntary Environment and Heritage

Organisations, 191

Great Barrier Reef, 94, 142

structural adjustment package, 94, 100–1,

106, 109

water quality, 88–91, 105

Great Barrier Reef Coastal Wetlands Protection

Programme, 91

Great Barrier Reef Marine Park Act 1975, 203

Great Barrier Reef Marine Park Authority, 30, 203

Great Barrier Reef Water Quality Protection Plan,

105

Great Southern Land, 122

Greenhouse Action to Enhance Sustainability in

Regional Australia, 29, 39

Greenhouse Challenge Plus, 23–4, 36

Greenhouse Friendly, 23, 189

Greenhouse Gas Abatement Programme, 24, 35, 39

greenhouse gas emissions, 16, 22–9, 30–2

department, 219, 220

methane, 20, 21

performance indicators, 34, 35–8

greenhouse gases, synthetic, 149–51, 164, 165

grey water, 61

Groote Eylandt, 73

groundwater-dependent ecosystems, 60

Group of 8 Dialogue on Climate Change, Clean

Energy and Sustainable Development, 20

Guidelines for the Ecologically Sustainable

Management of Fisheries, 97

Gungahlin Drive extension, 213

Gurindji Culture, 120

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HHalon Bank, 150, 165

handfi sh, 95

Hartog, Captain Dirk, 122, 125

Harvey Estuary, 89

Hawker Island, 173

hazardous substances, 155–9, 166

Hazardous Waste (Regulation of Exports and

Imports) Act 1989, 156–7

HCFCs, 149, 164

health and safety, 205–6, 232–5

Heard Island and McDonald Islands, 175

Marine Reserve, 177

heavy vehicle fl eet operations, 24

heritage, 112–31

discretionary grants programmes, 255–6

Heritage Division, 112

heritage objects, movable, 123, 127, 129

heritage organisations, support for, 191

Hermannsburg Historic Precinct, 125

herons, 60

high conservation value aquatic ecosystems, 60

historic shipwrecks, 121–2, 125, 130

HMAS Sydney II Search, 122, 130

Hobart, 120, 124

air link to Antarctica from, 181, 248

House of Representatives Standing Committee

on Environment and Heritage, 213

human resources, see staff

Human Resources Strategies Group, 221–2

human settlements, 134–67

discretionary grants programmes, 256

humpback whales, 96

hydrochlorofl uorocarbons, 149, 164

hydrogen technology, 21, 26, 174

Iice, 179–80

illegal, unregulated and reported fi shing, 175–6, 182

imports

hazardous chemicals and pesticides, 158

hazardous waste, 156

movable cultural heritage, 123

wildlife, 50

India, 19–20

Indigenous Affairs Coordination Group, 202

Indigenous Australians, 152, 189, 211–12

involvement in north Queensland wetlands

and water quality, 90

Indigenous Graduate Programme, 229

Indigenous heritage, 118–20, 129, 131

Indigenous Heritage Programme, 119–20, 131

Indigenous protected areas, 73

individual learning and development

programmes, 231

Indonesia, 121, 150, 190

indoor air quality, 146, 158

industrial chemicals, see chemicals

industrial processes sector, greenhouse gas

emissions by, 32, 34

industrial residues, 159

Industry, Communities and Energy Division, 16

industry greenhouse gas emission partnerships,

23–4

Infl uencing International Climate Change Policy, 39

information technology, 251

Community Water Grants processing, 62

computer waste, 157

injuries and occurrences reported to Comcare, 233

inland water, see rivers and river catchments

inquiries from community, 209

insects, 47

insurance, 205–6

integrated coastal zone management, 86–7

integrated marine planning, 92–3, 105

Intergovernmental Panel on Climate Change, 18

guidelines on international inventory practices, 31

Special Report on carbon dioxide, 20

Intergovernmental Panel on Climate Change

Bureau, 31

internal audit, 203–5, 251

International Commission for the Conservation

of Antarctic Marine Living Resources, 175

International Conference on Chemicals

Management, 159

international conventions and agreements

Antarctica, 175

climate change, 21–2

hazardous substances, 155–7

heritage, 114

marine conservation, 92, 95, 99–100

ozone layer protection, 149, 150

sea dumping, 142

wildlife protection and biodiversity

conservation, 50, 64, 65, 176–7

see also United Nations Framework

Convention on Climate Change

International Council for Local Environmental

Initiatives, 36

International Council on Monuments and Sites, 121

international engagement, 188–90

Antarctica, 172–3, 175, 177, 181, 182

hazardous substances, 158–9

heritage, 116, 121

marine conservation, 99–100

wildlife protection and biodiversity `

conservation, 65, 171, 177–8

international engagement on climate change,

18–22, 31, 32

fi nancial resources, 38

objectives, 16

performance indicators, 34, 38

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Indexes

International, Land and Analysis Division, 16, 198

International Partnership on the Hydrogen

Economy, 21

International Polar Year, 181

international policy advice, 188–90

International Steering Committee, 201

international technical assistance, 65, 121

International Whaling Commission, 171, 177–8

International Year of Deserts and Desertifi cation, 65

internet, 192–3, 237

Antarctic Approvals Online project, 174

Australian Biodiversity Information Facility, 74

Biodiversity Assessment Tool, 116

marine conservation sites, 104

intranet, 206

invasive species, see pests

Invasive Species Task Group, 47–8

investment, see fi nance

JJames Cook University, 138

Japan, 19–20, 21, 99–100, 190

Japanese National Institute of Genetics, 116

Jawoyn lands, 119

jet aircraft, 181

job classifi cation of staff, 222–3

Johannesburg World Summit on Sustainable

Development, 100

John Gorton Building, 218–19, 233

Joint Ministerial Council on Energy, 36

Joint Steering Committee on Water Sensitive

Cities, 61

judicial decisions, 213

Junction Waterhole, 119

KKakadu National Park, 49, 69, 165, 220

Karalundi Mission, 120

Kimba, 63

knowledge management, 206–7

Knowledge Management Committee, 202

Korea, 19–20, 100

krill, 179

Kyoto Protocol target, 22–3, 31

LLake Eyre Basin Intergovernmental Agreement,

64–5

Lake Monger, 119

land and inland waters output, 42–81

discretionary grants programmes, 254

Land and Sea Management Strategy for Torres

Strait, 93

Land and Water Australia, 30

Tropic Rivers Programme, 75

land and water investments (output 1.2.3), 42,

66–74, 77

fi nancial resources, 80

objectives, 43

land and water strategies (sub-output 1.2.2), 42,

51–2, 78

fi nancial resources, 80

objectives, 43

land degradation and desertifi cation, 65

land management

greenhouse gas emissions, 29, 32, 34

Queensland wetlands, 91

Land, Water and Coasts Division, 42, 84

Landcare, 67–8

Landscape Logic research hub, 137

Launceston, 145, 163, 165, 167

Law Dome, 179

Law of the Sea, 92

lead acid batteries, 156

leadership training, 231

learning and development, 229–32, 234, 235

legal cases, 213

legal expenditure, 252

legislation, 122, 142, 143, 156, 173

Building Code of Australia, 25

fuel quality standards, 146–7

gene technology, 159–60

greenhouse gas users mandatory reporting,

24, 36

Indigenous heritage provisions, 118–19

Mandatory Renewable Energy Target, 27–8

National Environment Protection Measures,

139–40, 144–5

ozone layer protection, 136, 149–50

reviews against Uhrig Report, 203

water effi ciency labelling, 155

see also Environment Protection and

Biodiversity Act 1999; statutory timeframes

for decision-making

liabilities and assets, 247–9

liquefi ed petroleum gas, 147

as heavy vehicle fl eet fuel, 24

Living Murray Initiative, 59–60

local government, 28–9, 86

Waratah–Wynyard Council, 91

Local Greenhouse Action programme, 28–9, 39

location of staff, 13, 223

London Convention, 142

Low Emissions Technology and Abatement

programme, 25–6, 39

Low Emissions Technology Demonstration Fund,

25, 35

Low Head precinct, 126, 130

LPG, 24, 147

lubricating oil, 151–2, 166

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MMcDonald Islands, 175, 177

Mackay–Whitsunday catchment, 89

Macquarie University, 195

Magela Creek, 162, 165

Maintaining Australia’s Biodiversity Hotspots

Programme, 51, 77, 80

Maintenance and Protection of Indigenous

Heritage Programme, 119–20, 131

male staff, 223–4

mallee trees, 26

management of department, 198–257

management plans

Antarctica, 173

Commonwealth heritage places, 117, 127

marine protected areas, 106

national heritage places, 116–17, 119

natural resource management regions, 68, 77

Ramsar-listed wetlands, 64

world heritage properties, 117, 127

Mandatory Renewable Energy Target, 27–8

mapping and atlases

acid sulfate soils, 87

benthic ecosystems, 101

Lake Eyre Basin hydrology, 65

vegetation types, 52

Marine and Coastal Coordination Committee, 202

Marine and Tropical Sciences Research Facility,

138, 165–6

marine conservation, 85, 92–100, 105, 107, 109

Marine Division, 84, 198

marine outboards, environmental performance

of, 140

marine pests, 98–9

marine protected areas, 94–5, 106, 177

marine science, 101–4, 137

maritime heritage, 121–2, 125, 130

market research expenses, 252

Maryborough, 152

Mawson station, 174

Mawson’s Huts Foundation, 174

Melbourne, 124, 145

Melbourne Cricket Ground, 116

memorandums of understanding, international,

21–2, 95

Memorial Parade, 116

men staff, 223–4

meteorology, see climate change

Methane to Markets Partnership, 20, 21

methyl bromide, 150

migratory species, 95, 97, 99–100, 173, 176–8

Mimosa, 49

mining, 150

uranium, 135, 162, 165, 167

ministerial and parliamentary services, 208–9

ministerial correspondence, 209

Mitchell, Qld, 120

mobility programme, 231

models and modelling

climate change, 29–30, 32

environmental performance of small engines,

140

Great Barrier Reef water quality, 90

Mole Creek area, 55

Montreal Climate Action Plan, 19

Montreal Protocol, 149, 150

Moreton Bay, 89

Mossman catchment, 89

motor vehicles, 146–9

heavy vehicle fl eet operations, 24

lubricating oil, 151–2, 166

National Travel Behaviour Change Project, 29

Mount Isa, 163

Mount Lofty Ranges, 51

movable cultural heritage (heritage objects), 123,

127, 129

Murray–Darling Basin, 59–60

climate change project, 30

Murray–Darling Basin Commission, 30, 59

Murrindindi Shire, 125

My Environment, 192

Myall Lake, 89

NNAIDOC week, 230

nankeen night heron, 60

Narrogin, 26

National Action Plan for Addressing Dioxins, 157

National Action Plan for Environmental

Education, 194

National Action Plan for Salinity and Water

Quality, 66, 67, 68–9

National Market Based Instruments Pilot

Programme, 207

National Alert List for Environmental Weeds, 49

National Atlas of Acid Sulfate Soils, 87

National Capital Plan, 213

National Carbon Accounting System, 31, 32, 53

National Centre for Tropical Wetland Research, 43

National Climate Change Adaptation Programme, 30

National Cultural Heritage Account, 123, 129, 131

National Dioxins Programme, 157

National Electricity Market Management

Company, 26

National Environment Protection Council, 143, 167

air quality standards review, 144–5

National Pollutant Inventory review, 139–40

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Indexes

National Environment Protection Council Act

1994, 143, 144, 203

National Environment Protection Council Service

Corporation, 143, 203

National Environment Protection Measures,

139–40, 144–5, 147–8, 154, 163

National Environmental Education Council, 194

National Environmental Education Statement for

Schools, 194

National Framework for Chemicals Environmental

Management, 159

National Framework for Energy Effi ciency, 25

National Framework for the Management and

Monitoring of Australia’s native Vegetation, 51–2

National Greenhouse Gas Inventory, 30–1, 38

National Halon Bank, 150, 165

National Heritage Investment Initiative, 124, 130, 131

National Heritage List, 114, 115–17, 119, 124, 127

Gifts to the Nation programme, 125

places associated with early European

maritime exploration, 122–3

National In-service Emissions Study, 149

National Industrial Chemicals Notifi cation and

Assessment Scheme, 161

National Inventory by Economic Sector 2004, 31

National Inventory Report, 31

National Land and Water Resources Audit, 54, 64

National Large Whale Disentanglement

Workshop, 96

National Market Based Instruments Pilot

Programme, 207

National Oceans Offi ce, 12

National Packaging Covenant, 153–4, 164, 166

national parks and reserves, see protected areas

National Pollutant Inventory, 138–40

National Reserves Systems Programme, 71–2

National Sea Change Conference, 86

National Strategy for the Management of

Scheduled Waste, 157

National System for the Prevention and

Management of Introduced Marine Pest

Incursions, 96

National Travel Behaviour Change Project, 29

National Trust of Australia (Victoria), 125

National Trust Partnership Programme, 124–5, 128

National Vegetation Information System, 52, 54

National Water Initiative, 59, 60

National Weeds Strategy, 48

National Whale Watching Guidelines, 96

native vegetation, 51–5, 71, 74

river red gums, 60

threat abatement plans, 47

native wildlife, see wildlife protection

natural, indigenous and historic heritage, 131

Natural Heritage Trust, 66–8, 77, 79, 80

Coastal Catchments Initiative, 88

Coastcare Programme, 67–8, 91, 106, 109

conservation incentives, 58

environmental assessment project work, 141

environmental education research, 195

Indigenous Protected Areas Programme, 73

National Reserve Systems Programme, 71–2

pest and disease threats, 47, 48; marine, 97

product stewardship programmes, 153, 155

rangelands conservation, 57

threatened species, 45, 46; whale protection, 96

tropical rivers research, 75

water, 60

Wetlands Programme, 90–1

wildlife trade regulation, 50

natural heritage values, 116

Natural Resource Management Ministerial

Council, 48, 52

genetics and biochemical resources

agreement, 73

high conservation value aquatic ecosystems

taskforce, 60

natural resource management plans, 68, 107

Natural Resource Management Programmes

Division, 42, 84, 200

natural resource management regions, 68, 77

coastal, 107

Natural Resource Management Standing

Committee, 61

Naturaliste, 103

NChEM, 159

New South Wales, 54, 155

Australian Collaborative Rangelands

Information System pilot region, 57

coastal/estuarine water quality improvement

plans, 89

Indigenous heritage, 119, 120

national heritage places, 115, 117, 124

oil recycling centre, 152

urban air quality, 163

weed control, 49

world heritage listing, 114

New Zealand, 21, 150, 190

Newcastle, 28

non-English speaking backgrounds, people from,

211, 212

non-ongoing staff, 224

North Esk River, 68

North West Shelf, 101

Northern Australia, 75

Northern Marine Bioregional Plan, 93

northern Pacifi c seastar, 99

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Northern Territory, 54, 137, 155

Australian Collaborative Rangelands

Information System pilot region, 57

cane toads, 48

Daly River, 75

Darwin Harbour, 89

Gifts to the Nation programme, 125

Indigenous heritage, 119, 120

indigenous protected areas, 73

national heritage places listed, 115

Northern Territory Department of Primary

Industry, Fisheries and Mines, 162

Nubeena, 63

Ooccupational health and safety, 205–6, 232–5

Occupational Health and Safety Policy

Agreement, 234

occurrences or accidents reported to Comcare, 233

Ocean Biogeographic Information System

(OBIS), 104

oceans, 92–100

Oceans Portal, 104

offi ce accommodation, 218–20, 233

oil recycling, 151–2, 166

oil spills, Antarctica, 184

Ombudsman, 214

ongoing staff, 224

online learning, 229–30

organisation and structure, 10–13, 221–2

climate change output, 16

coasts and oceans output, 84

cross-cutting activities, 188

heritage output, 112

human settlements output, 134

land and inland waters output, 42

Organisation for Economic Cooperation and

Development (OECD), 189

OSCAR, 36

outboard motors, 140

outcomes and outputs, 12–195, 240–6

contribution to ecologically sustainable

development, 216–17

outside participation, arrangements for, 214–15

outsourced services, 251

overseas technical assistance, 65, 121

ozone, 163

ozone layer protection, 149–51, 164, 165

Ozone Protection and Synthetic Greenhouse Gas

Account, 167

PPacifi c region, 21, 121, 190

Pacifi c seastar, 99

packaging waste, 153–5, 164, 166

paints, 99

paper use, 219, 220

Papua New Guinea, 121, 190

paraquat, 161

parks and reserves, see protected areas

Parks Australia Division, 42

environmental impacts of operations, 219–20

occupational health and safety, 233, 235

staff, 224

parliamentary and ministerial services, 208–9

parliamentary committees, 213

parrots, 47

part-time employees, 224

passenger transport, 29

pasture management, 91

pay and remuneration, 226–8

Pearson, Dr Michael, 122

Peel Inlet, 89

peer reviewed publications, 180

Penola, 152

People Assistance and Advisory Group, 221

people management, see staff

People Management Branch, 221–2

people strategy, 230

People’s Republic of China, see China

perch, 60

performance indicators

Antarctica, 182–4

climate change, 34–8

coasts and oceans, 105–7

Commonwealth Disability Strategy, 237–9

heritage, 127–30

human settlements, 163–6

land and inland waters, 76–9

ministerial and parliamentary services, 209

performance management, 229

performance pay, 228

persistent organic pollutants, 157–8, 190

Persistent Organic Pollutants Review Committee,

158

personnel, see staff

Perth, 119, 124, 145

Perth Canyon, 101

pesticides, 158

pests, 47–9, 56, 70, 74, 76

Antarctica, 184

marine, 98–9

petrels, 173, 177

petroleum and petroleum products, 101, 146–9,

163, 166

Alternative Fuels Conversion Programme, 24, 39

oil spills, Antarctica, 184

Supervising Scientist fuel usage, 220

waste oil, 151–2, 166

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Indexes

Philippines, 121

Photovoltaic Rebate Programme, 27, 39

Phytophthora cinnamomi, 47

pigs, feral, 47

plants, see native vegetation

plastic bags, 136, 154–5

Point Nepean Community Trust grant, 124

Policy Coordination Division, 10, 134, 188

Policy Division, 10

pollution prevention strategies, 135, 142–61, 166,

167

Antarctica, 175, 181

National Pollutant Inventory, 138–40

performance indicators, 163–44, 165, 166

persistent organic pollutants, 157–8, 190

polycyclic aromatic hydrocarbon levels in diesel, 146

population and planning, 86

Port Arthur Historic Site, 115

Port McLeay, 120

Port Phillip Bay, 89

Port Pirie, 163

Porter Hill, 71

portfolio, 10

Portfolio Budget Statements 2005–06, 12

Portfolio Indigenous Affairs Coordination Group,

202

Preservation and Protection of Indigenous

Heritage programme, 119

Primary Industries Ministerial Council, 48

primary production, see agriculture

private landholders, 51, 55, 58

procurement, see purchasing and procurement

Procurement Review Board, 249–50

product stewardship, 151–5

Product Stewardship for Oil Programme, 151–2, 166

Productivity Commission, 117, 207

protected areas, 42, 43, 69–73, 76, 80

marine, 94–5, 106, 177

Ramsar-listed wetlands, 59, 64

Protecting Australia’s Biodiversity Hotspots, 51,

77, 80

Daintree Conservation Initiative, 129, 131

public affairs, 194

Public Service Act 1999 staff, 224

publications, 192–3

air quality, 144

Australian Antarctic Programme, 180

climate change and emissions, 30–1, 32–3, 37,

38, 86

coasts and oceans, 87, 90

distributed in response to requests, 209

hazardous substances, 157, 159

land and inland waters, 52, 57–8, 61, 65

maritime heritage, 122

purchasing and procurement, 238, 249–52

purchaser-provider arrangements, 67, 68

QQueensland, 137, 155

Australian Collaborative Rangelands

Information System pilot region, 57

coastal/estuarine water quality improvement

plans, 88, 89

Flinders River, 75

Indigenous heritage, 119, 120

national heritage places listed, 115

oil recycling centre, 152

St John’s Cathedral, 124

urban air quality, 163

Queensland Wetlands Programme, 90–1

Rrabbits, 47

rainforest conservation, 129

Raising National Water Standards Programme, 61

Ramsar-listed wetlands, 59, 64

rangelands conservation, 57–8, 65

Ranger uranium mine, 162, 165

rats, exotic, 47

Raukkan community, 120

Recherche Bay, 125

recovery plans, 45–6, 76

marine species, 95, 105

recruitment of staff, 198–9, 229, 239

recycling, 151–4, 166

department, 219, 220

water, 61

red fox, 47

Reef Water Quality Protection Plan, 89–90

reefs, 121

see also Great Barrier Reef

refrigerators, 25

Regional Forest Agreements, 54–7

regional marine planning, 92–3, 105

Regional Natural Heritage Programme, 121, 129, 131

Register of Environmental Organisations, 191

Register of the National Estate, 116

regulation of wildlife industry, 50

Reid, Sir George, 126

remote Australia, 152

renewable energy generation, 26, 36

remuneration of staff, 226–8

renewable energy, 25–8, 189

at Mawson station, 174

Renewable Energy and Energy Effi ciency

Partnership, 20

Renewable Energy Commercialisation

Programme, 26, 39

Renewable Energy Development Initiative, 26

Renewable Energy (Electricity) Act 2000, 28

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Renewable Energy Equity Fund, 27, 39

Renewable Remote Power Generation

Programme, 26, 36, 39

reporting arrangements, 249, 250

greenhouse gas emissions, 24, 31, 33, 36

rangelands conservation, 57

Representative Areas Programme Structural

Adjustment Package, 94, 100–1, 106, 109

Republic of Korea, 19–20, 100

research and development, 134, 137–40

air quality, 145–6, 148–9

Antarctic Research Division, 175, 176

Antarctic science, 178–81, 184, 185

biodiversity conservation, 51

biotechnology, 160

climate change and emissions management,

29–30, 39

into environmental education, 195

native vegetation indicators, 54

persistent organic chemicals, 158

Tasmanian devil facial tumour, 55

taxonomic, 74, 77

threat abatement, 47, 48

Torres Strait, 93

tropical wetlands, 42, 43, 75, 80

using genetic resources or biochemical

compounds, 73

research facilities, 137–8, 165–6, 167

residential building standards, 25

residues, industrial, 159

resources, see fi nance; staff

retail industry, 154–5

retention of staff, 222

retirements, 199–200

return-to-work plans, 235

Review of the Corporate Governance of Statutory

Authorities and Offi ce Holders, 203

rewards and recognition, 231–2

rice growers, 23

Rio Tinto Group, 142

Rippon Lea, 125

Risk Assessment Panel, 204, 205

risk assessments, environmental, 159–61

risk management, 205–6

climate change programmes, 36

using to address climate change impacts, 30

River Catchment Water Quality Initiative, 57

river red gums, 60

Rivercare, 67–8

rivers and river catchments, 88–91

Lake Eyre, 64–5

Living Murray Initiative, 59–60

Queensland, 89–91, 105

Tasmania, 57, 68, 78

tropical, 75, 137

rivers assessment project, 65

Robe River Mining Co Pty Ltd, 142

Rockhampton, 120

Roma, 120

root-rot fungus, 47

Rotterdam Convention on the Prior Informed

Consent Procedure for Certain Hazardous

Chemicals and Pesticides in International Trade,

158

Rottnest Island, 103

Royal Australian Navy, 104

rural and regional Australia

greenhouse emissions management research

projects, 29, 39

RV Naturaliste, 103

RV Southern Surveyor, 101

Ssafety, 205–6, 232–5

salaries and remuneration, 226–8

salinity, 26, 68–9, 213

Southern Ocean, 179

satellite telemetry buoy, 96

Save the Ridge Inc v Commonwealth, 213

school environmental education, 194

screen-based equipment, staff using, 234

sea dumping and sea installations, 142

sea levels, 86

sea lions, 95

seabirds, 95, 97, 99–100, 105

Antarctica and Southern Ocean, 173, 176–7, 183

seals, 95, 137

secretary, 198, 200

review by, 2–6

Secretary’s Awards, 231–2

sector, greenhouse gas emissions by, 32, 34

Securing Australia’s Energy Future white paper,

25, 27, 37, 148

Securing Our Fishing Future package, 94

seizures of wildlife, 50

Senate Environment, Communications,

Information Technology and the Arts

Committee, 213

Senate Order on Government Agency contracts, 250

senior executive service (SES) employees, 223,

225, 226–8

senior executives and responsibilities, 198–200

separations from department, 199–200, 222

service charter, 210

services to community, 209–10

sewage recycling, 61

sewerage schemes, 91, 107, 109

sex of staff, 223–4

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Indexes

Sharing Australia’s Stories, 125, 128

Shark Bay World Heritage Area, 71

sharks, 95, 99

shipping, 101, 103, 179

outboard motors, 140

paints, 99

shipwrecks, historic, 121–2, 125, 130

shorebirds, migratory, 97, 99

silver perch, 60

single-phase air conditions, 25

Sisters Beach, 91, 107, 109

Sloan Foundation, 104

small and medium enterprises, 250

small engines, 148–9

smoke pollution, 145

social justice and equity, 210–12, 230

soils, 87, 91

Solar Cities programme, 25, 36, 39

solar energy, 25, 26

photovoltaic system rebate, 27

solid fuel heaters, 145

South Africa, 22

South Australia, 155

Adelaide’s Port Waterways, 89

Australian Collaborative Rangelands

Information System pilot region, 57

biodiversity hotspots, 51

Living Murray Initiative, 59, 60

national heritage places listed, 115

National Reserve System Programme

acquisitions, 72

oil recycling centres, 152

urban air quality, 163

South Australian Murray–Darling Basin Natural

Resource Management Board, 51

South Australian Museum, 123

South-east Australian Climate Project, 30

South-east Marine Region, 94

South Korea, 19–20, 100

South Pacifi c region, 21, 121, 190

South-west Marine Bioregional Plan, 92–3

southern giant petrels, 173

Southern Ocean, 175–7, 179

southern right whales, 96

Southern Surveyor, 101

staff, 13, 221–39

senior executives, 198–200

staff learning and development, 229–32, 234, 235

staff turnover and retention rates, 199–200, 222

stakeholder relations, 208–12

Standing Committee on Antarctic Logistics and

Operations, 181

State and Territory Greenhouse Gas Inventories

2004, 31

State of the Air Report, 144

State of the Environment Report, 192

stationary energy sector, greenhouse gas

emissions by, 32, 34

statutory authorities and agencies, 10, 203

statutory offi cers, 69, 162, 203

statutory timeframes for decision-making, 78,

107, 130, 165, 166

environmental assessments and approval, 141, 166

Stockholm Convention on Persistent Organic

Pollutants, 157–8

storm water recycling, 61

Strategic Approach to International Chemicals

Management, 159

Strengthening Tasmania – Low Head precinct,

126, 130

Strengthening Tasmania –Tamar River Pylons, 68, 78

structural adjustment package, 94, 105, 106, 109

Structural Adjustment Package – Business

Restructuring Assistance, 109

Structural Adjustment Package – Enhancement, 109

structure, see organisation and structure

submissions made, 209

to Productivity Commission, 117, 207

to UN Framework Convention on Climate

Change, 31

submissions received, 203

sulfate soils, 87

sulfur levels in diesel, 146

Supervising Scientist Division, 42, 162

environmental impacts of operations, 220

senior executives, 198, 199

supervision of uranium mining, 135, 162, 165, 167

support for environment and heritage

organisations, 191

sustainable fi sheries assessments, 97–8

Swan–Canning Estuary, 89

Sydney, 145, 163

Sydney Opera House, 114

synthetic greenhouse gases, 149–51, 164, 165

TTamala Pastoral Lease, 71

Tamar River Pylons, 68, 78

Tarkine Bushwalk Programme, 55

Tasmania

air link to Antarctica from, 181, 248

Derwent Estuary, 89

foxes, 47

Gifts to the Nation programme, 125

Indigenous heritage, 120

Launceston air quality, 145, 163, 165, 167

Low Head precinct, 126, 130

national heritage places, 115, 124

National Reserve System Programme

acquisitions, 71

St Mary’s Cathedral, 124

sewerage schemes, 91, 107, 109

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367

Ind

exes

Tamar River, 68, 78

Tasmanian Community Forest Agreement, 54–7,

78, 80

Tasmanian Department of Primary Industries,

Water and Environment, 148

Tasmanian devils, 55, 56

Tasmanian Forest Tourism Development

Programme, 55

Tasmanian Private Forest Reserves Programme, 55

Tasmanian Shy Albatross, 176

tax concessions, 191

tax credits, fuel, 24, 148

tax incentives for conservation agreements, 58

taxonomic research, 74, 77

temperature, see climate change

tenders, see purchasing and procurement

terrestrial parks and reserves, 42, 43, 69–73, 76, 80

terrestrial wildlife, see wildlife protection

Territory of Heard Island and McDonald Islands, 175

Marine Reserve, 177

Thala Valley, 175

threat abatement planning and activities, 47–9,

70, 76, 176

marine, 105

threatened and vulnerable species, 45–7, 76

Antarctica and Southern Ocean, 176–7

Asia–Pacifi c region, 121

Booderee National Park, 70

marine, 95–7, 105

South Australia, 72

Tasmania, 55, 56, 71

Threatened Species Network, 46

Threatened Species Scientifi c Committee, 46, 96

three-phase electric motors, 25

timeframes, see statutory timeframes for decision-

making

Torres Strait, 93

Torres Strait CRC, 93

Torres Strait Islanders, see Indigenous Australians

total equity, 247–8

tourism, 55, 69, 119, 120

Antarctica, 173

Towamba River Valley, 49

Townsville catchment, 89

toxic dinofl agellates, 99

Tracking to the Kyoto Target 2005, 31

trade, see exports; imports

train stations, bicycle parking at, 145

tramp ants, 47

transport

air link to Antarctica, 181, 248

bicycle parks at city bus and train stations, 145

greenhouse gas emissions, 32, 34

National Travel Behaviour Change Project, 29

see also motor vehicles

Tropical Rivers and Coastal Knowledge research

hub, 137

Tropical Rivers Inventory and Assessment Project, 75

tropical wetlands research, 42, 43, 75, 80

Tully catchment, 89

turtles, 95, 99

2,4-D volatile esters, 161

UUhrig review, 203

Uluru–Kata Tjuta National Park, 69

Umuwu, 152

understanding climate change (sub-output 1.1.3),

16, 29–33, 37–8, 39

United Kingdom, 126

United Nations, 100

United Nations Climate Change Conference, 19

United Nations Commission on Sustainable

Development, 188–9

United Nations Convention on Biological

Diversity, 65

United Nations Convention on the Law of the

Sea, 92

United Nations Convention to Combat

Desertifi cation, 65

United Nations Decade of Education for

Sustainable Development, 194

United Nations Environment Programme, 159, 189

United Nations Framework Convention on

Climate Change, 18–19

Australia’s national communications to, 33

Australia’s offi cial submission to, 31

Kyoto Protocol target, 22–3, 31

United States, 19–20, 21, 104, 150

University of Queensland, 51, 167

University of Tasmania, 137

uranium mining, 135, 162, 165, 167

urban air pollution, 145, 163

urban water reform, 61–3

used products, see waste

Vvalues, 208

Vasse–Wonnerup Estuary, 89

vegetation, see native vegetation

vehicles, see motor vehicles

veterinary/agricultural chemicals, 154, 158, 160, 161

Victoria, 155

coastal/estuarine water quality improvement

plans, 89

Gifts to the Nation programme, 125

Indigenous heritage, 119

Living Murray Initiative, 59, 60

national heritage places, 115, 116, 124

Point Nepean, 120

St Mary Star of the Sea, 124

urban air quality, 163

world heritage list places, 115, 124

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Department of the Environment and Heritage Annual Report 2005–06 368

Indexes

Victoria River District, 57

Victorian Department of Sustainability and the

Environment, 30

Vienna Convention for the Protection of the

Ozone Layer, 149, 150

Vietnam, 121

vulnerable species, see threatened and vulnerable

species

WWagga Wagga, 163

Wallis Lake, 89

Waratah–Wynyard Council, 91

waste, 219, 220

Antarctic clean-up operations, 175

greenhouse gas emissions from, 32, 34

hazardous, 156–7, 166

product stewardship, 151–5, 164

sea dumping, 142

water, 58–65

coasts and oceans, 86–109

departmental consumption, 219–20

departmental contamination incident, 233, 234

South-east Australian Climate Project, 30

see also rivers and river catchments

water accounting, 61

water effi ciency labelling, 136, 155, 167

water heaters, 25

water quality, 68–9

coastal and estuarine, 87–90

Magela Creek, 162, 165

national guidelines, 61

Tasmania’s river catchment, 57

water quality improvement plans, 88–9

water recycling, 61

Wave Hill Walk Off Historical Society, 120

weather, see climate change

websites, see internet

weed management, 48–9

Weeds of National Signifi cance, 49

Western Australia, 137, 155

Australian Collaborative Rangelands

Information System pilot region, 57

cane toads, 48

cathedrals and churches, 124

coastal/estuarine water quality improvement

plans, 89

Fitzroy River, 75

Gifts to the Nation programme, 125

Indigenous heritage, 119, 120

national heritage places, 115, 122–3, 124

National Reserve System Programme

acquisitions, 71

oil recycling centre, 152

urban air quality, 163

wood processing plant, Narrogin, 26

world heritage list nomination, 115

Western Port, 89

wetlands, 59–60, 64

Queensland, 90–1

tropical, 42, 43, 75, 80

Wetlands International, 100

whales, 96–7, 137, 171, 177–8

white-footed dunnart, 70

wildlife conservation plans, 97

Wildlife Hospital, 46

wildlife industry regulation, 50

wildlife protection, 42, 45–65, 78

Antarctica and Southern Ocean, 173, 175–8,

181, 182–4

fi nancial resources, 80

migratory shorebirds, 97

natural heritage values assessment, 116

objectives, 43

research hub, 137

see also biodiversity hotspots

wind energy, 26, 174

Wind Energy Forecasting Capability initiative, 26

women staff, 223–4

Wongi Waterholes, 119

wood processing plant, Narrogin, 26

woodsmoke pollution, 145

work–life balance, 232

work station assessments, 234

workers compensation claims, 235

workforce, see staff

Workforce Management Committee, 202, 221, 230

workplace agreements, 225–7

workplace diversity programme, 230

workplace health and safety, 205–6, 232–5

World Heritage List, 114–15, 117, 124, 127

Asia–Pacifi c assistance, 121

World Summit on Sustainable Development,

100, 159

World Wide Fund for Nature (WWF) Australia, 46

YYea Baragwanathia Flora Fossil Site, 125

Yumba site, 120