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Dear Ministers
In accordance with the Annual Reports (Departments) Act 1985, I am pleased to submit, for your
information and presentation to Parliament, the Annual Report of the Department of State and
Regional Development for the financial year ended 30 June 2005.
Yours sincerely
Loftus Harris
Director General
28 October 2005
1 Charter and Legislation 2
About the Department 2
Corporate framework 3
2 Director General’s Report 5
3 Objectives and Results 8
Highlights of the year 8
The year ahead 14
4 Organisation and Functions 15
Departmental functional structure 15
Senior management 16
5 Industry Division 17
6 Investment Division 25
7 Small Business Development Division 28
8 Regional Development Division 36
9 Policy and Resources Division 42
10 Business Strategy Unit 46
Communications Unit 47
Executive Support 48
Retail Tenancy Unit 48
11 Audited Financial Statements 49
12 Appendices 90
Access 126
Index 127
1
Charter and Legislation
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Our Mission Strategic Imperative and Governance Framework
Advance the economic development Key Results
The Department’s governance
of New South Wales and bring new framework comprises a number of
The Department’s activities
business to the State by: significant committees which have a
are encompassed within four
– providing leadership within strategic imperatives: role in the Department’s planning,
government on business, monitoring and review activities and
– promote investment
economic and regional ensure they are aligned with the
development issues – boost exports Government’s key priorities.
– adopting a whole-of-government – encourage innovation These are:
perspective with respect to the – improve the State’s business Executive Management
use of the State’s resources to climate. Committee
facilitate investment Key results include: The Executive Management
– supporting the interests of – increased investment Committee comprises the Director
business and the community General, Executive Directors, Director
– creation of new jobs
– pursuing an appropriate Communications, Director, Corporate
balance between economic – expanded exports Operations and Registrar, Retail
development and the variety of – innovative businesses Tenancy Unit. It meets weekly and
social and environmental needs – dynamic Small Medium provides leadership and strategic
of the community. Enterprise (SME) and regional direction to the Department. The
business sectors Committee ensures consistency in
Our Vision – satisfied clients.
the Department’s operations and
the reporting of its achievements.
To be recognised as the most
effective and efficient business Corporate Governance and Audit and Review Committee
development agency in Australia. Performance Improvement This Committee comprises the
Executive Directors, Director,
Our Values The Department is committed to Communications, Registrar, Retail
effective corporate governance and Tenancy Unit, Director, Business
The Department gives effect to its performance improvement. It has a Governance and Senior Manager,
mission and goals through the governance framework that provides Finance. It oversights the
actions of its staff upholding clear direction and transparency in Department’s internal audit program,
corporate values of: decision-making and supports the monitors the effectiveness of the
organisation’s capacity to achieve Department’s risk management
– integrity through honesty,
key results. In undertaking its program and the implementation
consistency and fairness
activities, the Department works of reviews of programs and
– equity and social justice within the New South Wales operational processes.
– respect for the diversity of our Government’s framework of
The Committee also has responsibility
multicultural base reporting and accountability.
for the development of new and
– achievement through diligence, The Department is fully committed to improved performance measures and
industry, consultation and the principles of social justice, which measurement systems and oversights
creative thought includes equal employment their implementation.
– accountability, efficiency opportunity, ethical practice and
Other committees involved in the
and effective professional ethnic affairs priorities. The
planning and governance of the
service provision. Department strives to integrate social
Department’s activities are the:
justice principles into its
management and recruitment – Joint Consultative Committee
practices, its policy advice and its – Workplace Occupational Health
day-to-day dealings with clients. and Safety Committee
– CCSU Clients Consultative
Committee.
Performance Improvement Program Review
With fewer than 300 staff, of which The Department’s activities and
only eight per cent work in operations are regularly and
administration, the Department has rigorously reviewed through a
significantly lower staffing and variety of internal and external
expenditure levels than competitor processes including:
agencies. Although it is what might – financial audit (external)
be described as a ‘lean’ organisation,
– performance audit
it has achieved a high level of
(external/internal)
performance by adopting the
following drivers or management – internal audit and review
principles for improved performance: committee
– customer focus and extensive – managerial evaluation (internal)
consultation with clients – the Council on the Cost and
– operating excellence Quality of Government, the
Public Accounts Committee and
– financial effectiveness
the Treasury
– continuous improvement in
– Ministerial oversight by two
systems, work practices and
Ministers
resource usage.
– Parliamentary oversight through
a variety of committees such as
the Parliamentary Budget
Estimates Committee.
Managerial evaluation, Ministerial
oversight and audit and review are
continuous. The Department has also
been an active participant in the
assessments of Government service
efforts and accomplishments
conducted by the Council on the
Cost and Quality of Government.
2
5
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Director General’s Report
The year has been one of satisfactory State wide, one of the worst The Department has played an
results for the Department in terms droughts in the history of New South important role in a number of New
of achievements in investment, Wales has continued to affect rural South Wales Government initiatives
business growth and delivery of communities and businesses to attract new business to the State.
our services to New South Wales servicing these communities. The It put considerable effort into
companies. Despite a backdrop of effects of the drought have been attracting participants and
continuing drought which has uneven and while some areas facilitating the Forbes Global CEO
affected many regional enterprises, continue to suffer, others are now Conference held in
New South Wales companies showing better signs of economic August–September 2005. Nearly four
have displayed innovation and growth. In recognition of this, the hundred of the world’s top Chief
determination in their Government has continued to Executives visited Sydney, many for
business activities. provide support through a range of the first time. The hosting of the
Globally, we have seen a programs to assist those businesses Conference will offer significant
continuation of the trend for affected and to encourage regional opportunities to showcase
investment in the services sector in economic recovery and growth. possibilities for new investment.
particular to emphasise global The Department’s emphasis on
operations as well as more international business development
traditional regional activities. has continued to support a program
of trade missions and trade shows in
emerging markets around the world.
Emphasis has been given not only to
geographically important market
sectors, such as China and India,
but also to specialist product trade
shows, such as CeBIT and Medica
in Europe.
The Department participated with Growing business opportunities in The creative industries continued to
the Commonwealth and other State China were also emphasised at the increase their importance in the New
Governments as well as the private New South Wales/Guangdong Joint South Wales economy as
sector in supporting Australia Week Economic Meeting held in international companies become
in Los Angeles. By combining a range Guangzhou. More than fifty New aware of the depth of talent and skill
of Australian resources, this South Wales delegates visited available and the cost effectiveness
promotion has enabled a profiling of Guangzhou with Minister Campbell of doing work in New South Wales.
business opportunities for Australia for business discussions. This is the In film, international movies such as
with sufficient critical mass to largest such delegation to visit China Superman were shot in New South
register in the crowded US market. under the terms of the New South Wales and, increasingly, post
Similarly, a strong contingent of Wales/Guangdong Agreement. production is adding even more
New South Wales participants took Small business continues to be the value. Overall, production
part in Australia’s promotion at the backbone of employment in the expenditure was worth $254 million,
world’s largest biotechnology fair, State with over 440,000 businesses representing forty seven per cent of
Bio2005 in Philadelphia. in New South Wales. Business total expenditure in Australia.
The Department also coordinated support programs are delivered Advanced industry clusters are also
participation by New South Wales at through the Department’s eighteen reflected in the Department’s efforts
the Australian Pavilion at the 2005 regional offices throughout the State over many years. In February this
World Expo in Aichi, Japan during and through the enhanced Business year, Optus announced it will
the year. Advisory Service established during amalgamate its Sydney-based
The legacy of the Olympic Games the year. operations at North Ryde by mid
and the expertise developed during Small Business Month has become a 2007. The transfer of some 6,500
the Rugby World Cup has seen fixture for the New South Wales staff will include more than five
continuing opportunities for New business community. Hundreds of hundred new staff and follows a
South Wales based companies to organisations throughout the close cooperative effort over two
market their skills to the world. The State now participate with the years with the Department’s
Department has helped to develop Department in delivering business Investment Division. The Department
opportunities involving the 2008 events designed to support small also worked with Jetstar and Boeing
Olympic Games in Beijing as well as business growth through the month and other aerospace-related
the Asian Games 2006 in Doha and of September. In this past year companies to continue the growth
2010 in Guangzhou. We are also these events involved over of the aerospace cluster at
working with companies developing 45,000 participants. Williamtown in the Hunter Valley. It
opportunities for the 2012 London is anticipated that the industry will
Home based business also continues
Olympics and for the FIFA World Cup employ more than 1,000 skilled
to grow in importance with
in South Africa in 2010. workers by the end of the decade to
changing patterns in the workplace.
undertake advanced aviation work
The first Home Based Business Week
from markets around the world.
was held this year. Between 1999
and 2004 the number of home
based business in New South Wales
increased by nearly 44 per cent.
7
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
The Government’s BioFirst The Department also worked closely Another important highlight was the
BioBusiness program again assisted with our colleagues in Federal Department’s continuing Aboriginal
New South Wales companies with agencies, such as the Department of Business Development Programs.
commercialisation of new products Foreign Affairs and Trade, Austrade Nearly 300 direct business services
and services and expansion into and Invest Australia. The Australia-US and workshops were delivered with
international markets with Free Trade Agreement was an area of strong links forged between large
participation in the Bio2005 particular engagement for the Policy New South Wales companies and
convention in the US being and Resources Division as was direct aboriginal enterprises.
a highlight. Departmental support to trade and During the course of the year, the
An important focus continues to be investment delegations throughout Honourable Michael Egan, MLC,
the delivery of programs and services the year. retired from Parliament and as
which enhance the competitiveness The Department has continued to Minister for State Development. Mr
and growth of regional companies emphasise the advantages which are Egan was Minister for State
and communities. Projects include gained by working closely with our Development from the establishment
the establishment of a allies in other government agencies of the current Department in 1995.
technologically advanced greenhouse and with business groups. Our close I know that all members of the
to grow hydroponic tomatoes at working relationships with Regional Department join me in thanking him
Guyra by the Costa Group of Economic Development Boards in for his leadership and his support of
Companies. The project represents New South Wales, Business Advisory the Department throughout that
an investment of $14.4 million and Service, and advanced technology time. We wish him well in his
almost fifty jobs in its first stage, organisations have allowed us to retirement. Mr Egan was succeeded
with the potential to make Guyra a deliver support to the broadest range in March by the Honourable Andrew
leader in horticultural development of businesses. The close relationship Refshauge, MP.
throughout the region. with the Small Business Development During the year, a number of long-
In addition, Minister Campbell Corporation and the New South serving staff also retired and I would
hosted the Department’s first ever Wales Asia Business Advisory Council like to recognise their contributions
Regional Food Tour which took has been of particular importance. as well the continuing contributions
sixteen buyers and food industry A valuable collaboration during the of their colleagues.
professionals to meet and do year was the Department’s It is especially important to recognise
business with producers in the involvement with the private sector that without the dedication and
Murray, Riverina and Central West organisers of Country Week 2004. professionalism of all of our staff the
regions. As a result, produce This promotion involving Department would not enjoy the
from these regions is now sold in organisations from throughout the success which it does. I extend my
Sydney stores and featured on State provided an opportunity for thanks to all of those who have
Sydney menus as well as in new Sydney based businesses and helped the Department to achieve all
markets overseas. individuals to gain a better view of that is has in the past year.
opportunities that exist in regional
New South Wales.
3
Objectives and Results
Investment Attraction and Development Overall, the Department facilitated 126 investment projects across NSW
with investment of over $1.5 billion.
Facilitated the creation/retention of 6,024 jobs.
Regional Headquarters (RHQs) Secured two RHQs representing an investment of $10 million and the
and Regional Operations and creation of 27 jobs.
Technical Support Centres (ROCs)
Business Services Secured an investment of $7.4 million and the creation of 600 jobs by
one of the largest privately owned call centre operators in the world.
Financial Services and Secured six ICT projects with investment of $12 million and the
Information Communications and creation of 62 jobs.
Technology (ICT) Secured Manufacturing projects with investment of $42 million and the
creation of over 340 jobs.
National ICT Australia Centre of Excellence reported around $24 million
in research investment, in NSW.
Promote Regional NSW Facilitated 110 projects worth $773 million of investment in regional
NSW. Helped create/retain 3,096 jobs.
Assisted 266 regional business clients and conducted 116 business
seminars, attended by 4,083 people.
Assisted 74 communities under Community Economic Development
Programs. Projects helped create 81 jobs and leveraged $5.1 million in
project funds.
Promote Investment 9
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Program areas Key results and achievements
Continue to capitalise on The Beijing 2008 Olympics and other international Games program
Olympic related business opportunities advised more than 300 NSW companies of business opportunities and
helped to secure business in excess of $100 million
Supported 16 NSW companies and led a successful national contingent
to the Stadia China 2005 exhibition and conference in Beijing. A
further mission involving 6 companies visited South Africa for
discussions on the Soccer World Cup 2010.
Worked with Austrade to support NSW companies involved in
contracts for the Athens 2004 Olympic Games covering venue design,
security, training, games management and the conduct of ceremonies.
Trade Services 191 companies participated in 17 group trade missions and market
visits and 35 individual market visits (not all accompanied by
Departmental officers).
Companies reported sales of $3.9 million during the missions and visits
with a further $82.1 million projected in the following 12 months.
Provided 18 seminars and workshops which assisted 552
exporters of services.
The NSW Exporters Network grew to 612 members, a 54% increase
on last year.
The London office assisted 61 companies seeking export opportunities
in the European Union. Of these, 26 were first time potential exporters
to the Union.
The Tokyo office assisted 24 companies seeking export opportunities
in Japan. Of these, 15 were first time potential exporters to the
Japanese market.
Promote an Export Culture Funded the Hunter Export Centre in Newcastle and sponsored the
Hunter Export Awards.
The 765 clients under management by specialist Regional Export
Advisers across NSW achieved sales of $2.9 million. The Advisers met
contract targets and signed on 66 new exporters under the TradeStart
Program, and 12 companies which achieved an export sale were exited
from the Program.
The Department was the principal sponsor of the 2004 Premier’s NSW
Exporter of the Year Awards. Eighty eight companies entered the
Awards with 46 from regional NSW.
Conceived and organised a package of 25 seminars and workshops
that were delivered around the state during Small Business
September 2004.
Domestic Promotion and Supported 22 inbound delegations/visits, and prepared business
Market Development briefings on 50 countries to support the NSW Premier and Government
Ministers in meetings with overseas visitors and dignitaries.
Encourage Innovation
Program areas Key results and achievements
Australian Technology Showcase (ATS) Approved 45 new technologies for admission to the ATS program.
30 events were organised, attracting more than 2,600 attendees.
Launched new website, recording a total of 422,000 user sessions
for the year.
24 ATS companies reported projected sales of $13 million, as a direct
result of their participation in two new rounds of the Technology
Demonstration Program.
Since its inception in 1998, the ATS program has now supported 428
NSW technologies, of which 14 per cent are based in regional NSW.
Encourage Innovation (cont’d) 11
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Program areas Key results and achievements
Technology and Innovation Promotion Four Innovation Clusters held 20 events involving 576 participants, to
provide continuous learning forums to growing firms.
Six issues of the Technology & Innovations newsletter reached an
average of over 1,000 targeted readers per issue.
Innovation advisory and support services Four Innovation Advisory Centres provided 1,314 services to inventors
and small business innovators.
Two promotional seminars were held attracting 88 attendees.
The Online Innovation Advisory Service attracted 38,918 user sessions,
including 698 users of the proprietary self-assessment software and
eight virtual exhibitor applicants.
Technology diffusion in construction, Assistance was given to the Welding Technology Institute of Australia
manufacturing and infrastructure sectors to conduct 46 technology workshops, seminars and forums, attracting
985 participants from transport, construction, mining, pipeline,
defence, water and pressure equipment industries.
Major National Research Facilities and Funding was provided to thirteen research and development
Australian Research Council Centres organisations in NSW to increase the capacity and capability of the
of Excellence state’s research and development facilities and enhance industry’s
access to advanced technologies.
Four Research and Development Organisation Roundtable meetings
were facilitated to bring together the research and development in
order to foster potential synergies and enhance industry linkages. This
has led directly to a new partnership between two Centres of
Excellence and Patrick Corporation.
National Information and Communications NICTA filed four patents, bringing the total to twelve, seven of which
Technology Centre of Excellence (NICTA) are for research carried out in NSW; established industry linkages with
Microsoft, IBM and Nortel Networks; and had 61 active research
projects (including 29 in NSW).
Smart Internet Technology Cooperative The SITCRC specialises in high-value, internet-based technologies,
Research Centre (SITCRC) solutions and services, that can be commercialised internationally. The
Department continued to work with the SITCRC to finalise a proposal
to engage NSW-based SMEs that are developers or users of the
Internet, to achieve outcomes from the Centre’s research activities.
BioFirst $20 million in sales/investment outcomes for Proof of Concept program
clients in 2004.
$14.6 million investment attracted by BioFirst Biotechnology Precinct
companies in 2004.
Over 800 people attended 14 events throughout NSW as part of the
inaugural NSW First for Biotechnology Week, 4–8 April 2005.
Bio2005 mission to Philadelphia in June 2005 – $8 million expected
business outcomes.
Published updated NSW Biotechnology Industry Directory on CD and
internet. (www.business.nsw.gov.au/biotechnology)
Published four issues of the BioBusiness in NSW e-newsletter, which
highlights NSW biotechnology research and company successes to over
2,700 contacts globally during the year.
Offered assistance of $1,037,000 to 46 NSW biotechnology companies
under the New Export Opportunities (Export Development Services)
Program, and $959,000 to 49 companies under the Non Research
Establishment Costs Program, to assist with intellectual property
protection, regulatory approval, legal costs, business process
development and market development.
Improve the Business Climate
Program areas Key results and achievements
Policy Advice Continued to develop and provide advice for the Director General and
the Department’s two Ministers in the areas of trade, infrastructure,
regional development, planning and transport.
Economic Analysis Preparation of 78 detailed evaluations, the majority assessing the
financial viability and economic impact of proposed projects.
Industry Seminars, Workshops Australian Technology Showcase coordinated thirty events attracting
and Promotions more than 2,600 attendees.
Western Sydney IT Cluster coordinated ten monthly forums and fifteen
business skills development workshops for its members and guests
attracting over 1,050 senior representatives and business leaders.
The Parramatta Business Centre hosted 233 business seminars
and briefings, involving 5,948 participants, covering topics
including business growth, marketing, sales and promotion,
recruiting and exporting.
Import Replacement The Industry Capability Network (ICN) achieved $167 million in import
replacement work for NSW firms during the year, an increase of $41
million from last year.
This resulted in the creation of 2,846 direct and indirect jobs in
NSW with many regional companies benefiting directly from the
ICN’s activities.
Supporting Small and Medium The Business Advisory Services delivered a total of 175,000 services
Sized Enterprises (including 93,000 in regional New South Wales), offered workshops in
areas including marketing, business planning and financial
management, and helped create approximately 4,000 new jobs.
77 companies completed individual export development projects under
the New Export Opportunities (Export Development) Program and
received financial support of $526,000.
The Business Networks Program continued to support the progression
of groups of businesses from alliances to fully functioning
commercial entities.
Aboriginal Business Development 208 business services were delivered to Aboriginal enterprises,
including the Aboriginal Business Link Program, which helped 19
Aboriginal businesses participate in trade shows.
21 partnerships were formed through the Budyari Ngalaya Program
promoting links between large firms and Aboriginal enterprises
and communities.
13 workshops, tailored for the needs of Aboriginal Business people,
and six Industry Networking Sessions for the tourism and information
technology industries, were held.
Home-Based Business Delivered Home-Based Business Action Programs on business planning
and marketing to 413 participants. 92 per cent of participants reported
an increase in their business skills.
Home-based Business Week in May 2005 featured 24 seminars and
workshops attended by nearly 900 business people.
150 people attended Home-Bases Business Seminars on e-marketing
and intellectual property.
Updated the Homebiz Kit: Grow your business at home, a
comprehensive information resource for home-based business
operators, available online or as a CD-ROM.
Women in Business Five Women in Business Mentor Programs completed, attracting 97
business operator mentorees. Almost half of the participants in
completed programs reported an increase in business turnover by the
end of the program.
Improve the Business Climate (cont’d) 13
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Program areas Key results and achievements
Staff Development
Program areas Key results and achievements
Training and Development Developed and implemented a broader training calendar including
programs on: policy writing, writing skills, management skills, effective
presentation skills, legal awareness and diagnostic skills for
departmental staff.
Developed and implemented a six module Management Development
Program for senior managers.
Strengthened the Department’s Graduate Program through a
proactive recruitment campaign, formalised induction program
and mentoring program.
Equal Employment Opportunity Promoted the Department as an EEO employer, through advertising
and promotional material.
Supported Aboriginal cultural respect and communication training.
The Department’s Women’s Development/Networking Group for
female staff members delivered several workshops over the year.
Information Management Nearly 90 per cent of the Department’s correspondence with its clients
was conducted electronically.
Sessions on all Department websites exceeded 1.3 million. Continued
to maintain a wide variety of critical information through the
Department’s intranet to enhance staff productivity.
Corporate Governance Developed and managed the Department’s governance framework in
alignment with the Department’s corporate vision and purpose.
Provided support to the Department’s Audit and Review Committee.
Publication of the following policies and guidelines:
– The Privacy Management Plan and Privacy and Spam What do I have
to do? – Guidelines for Staff;
– Guidelines for Engaging and Using Consultants and Contractors;
– The Protected Disclosures Policy and Procedures.
The Year Ahead
During the 2005-2006 year, the Encourage Innovation – work with NSW agencies, Forbes
Department will continue to undertake – position NSW as a biotechnology Magazine and Invest Australia to
its core functions of promoting industry leader by supporting the deliver the 2005 Forbes Global CEO
investment, boosting exports, commercialisation of new Conference. This event will bring to
encouraging innovation and biotechnology products and Sydney over 400 CEOs of major
improving the State’s business services, attracting new international corporations. A
climate and competitiveness. biotechnology businesses to program will be developed in
These functions will contribute grow and expand into international Australia and overseas markets
significantly to the State’s ability to markets in consultation with to leverage the benefits of this
create new employment opportunities industry allies event for NSW
by attracting and developing new – continue overall support to NSW – introduce reforms to the Retail
business and supporting the expansion companies in the Australian Leases Act to increase certainty in
of existing firms within New South Technology Showcase through the relationship between retailers
Wales (NSW). continued implementation of a and landlords, reduce red tape and
In particular, during 2005-2006, the range of existing and new introduce clearer requirements for
Department will: promotional initiatives, including the leasing of retail premises. These
additional marketing support and reforms will ensure that a landlord
Promote Investment and a small retailer can deal with
special functions.
– attract and facilitate investment each other on the basis of clear
across NSW to maximise creation Boost Exports understanding of the other party’s
of new jobs and retention of – target services exports in sectors position, and can resolve any
existing jobs with specific trade opportunities disagreements that may arise
– maintain Sydney’s pre-eminence as in major markets to promote quickly and without undue expense.
the major finance and ICT Centre NSW capability
Staff Development
in Australia – continue to work with regional
– maintain the replacement schedule
– secure projects embodying new firms to identify and pursue new
for technological equipment to
technologies and new labour domestic markets as an important
improve workplace efficiency
force skills to continue to build on ingredient in building export activity.
– further develop staff training
and strengthen the international Improve the Business Climate programs, continue to support the
competitiveness of the
– create an environment in which spokeswomen program, maintain
State’s economy
business and investment can the rewards and recognition scheme
– develop the concept of distribution flourish through a number of new and encourage staff interaction
hubs as a catalyst for regional initiatives and changes designed to throughout all levels and divisions
economic development improve business growth in NSW of the organisation to ensure
– develop opportunities in global – continue to implement a targeted a happy and efficient
shared services program of activities to leverage work environment.
– build regional business and business benefits for NSW industry
investment through capacity from major events, including the
building and market initiatives in Rugby World Cup in 2003 and on
the film, logistics and food and the success of our Olympics
wine sectors. Business Program in 2000
4
15
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Organisation and Functions
Director General
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Industry Division
The Division works closely with Highlights for 2004-2005 from the – Bio Business program supported
businesses, industry associations, Division’s programs and engagement 62 proof of concept grants,
research organisations and other with key industry sectors include: producing more than
government agencies, such as the – forty five new technologies were $20 million in sales and
Ministry of Science and Medical approved for admission to the investments outcomes
Research, to initiate business Australian Technology Showcase – the NSW branch of the Industry
development programs and program, bringing the total to Capability Network, with the
undertake policy research and 428 NSW technologies and Division’s support, achieved
analysis in order to facilitate industry reporting over $532 million in $167.4 million in import
growth in key industry sectors. These business outcomes since its replacement work for local firms
industry sectors include: information inception in 1998 in 2004-2005, an increase of
and communications technology, $41 million from last year,
– the Division hosted four Research
advanced manufacturing, creating 2,846 jobs for NSW
and Development Organisation
agribusiness, biotechnology, defence,
Roundtables, bringing together – the Sydney-Beijing Olympic
fashion and textiles, forestry, culture,
all the research and development Secretariat (SBOS) helped secure
business tourism, recreation and
facilities supported by the more than $100 million in
tourism. As well, the Division has
Department, to foster potential business for NSW with more
responsibility for supporting cross-
synergies and enhance industry than 200 NSW companies
sectoral activities, such as innovation,
linkages. This has led directly to having been supported through
research and development,
a new partnership between this program.
commercialisation, sea and
two Centres of Excellence and
air freight.
Patrick Corporation
– Western Sydney Information
Technology Cluster firms
reported over $95 million in
sales success, of which $2.6
million was generated from the
participation of 6 Cluster firms
at the CeBIT Australia 2005
trade show
Innovation and – two new rounds of the Footage of the technologies
Technology Unit innovative Technology developed by ATS member
Demonstration Program assisted companies was on display in the
The Innovation and Technology Unit 24 ATS companies to trial their Australian Pavilion at the 2005 World
of Industry Development Division technologies with NSW, Expo from 25 March to an average
provides high level advice on industry Commonwealth or local of 15,000 visitors per day, and
innovation and manages key government agencies or major continues to 25 September.
programs and initiatives designed to companies. This program
Profiling the ATS Members
provides a credible reference site
enhance the State’s innovation and
commercialisation capability. for these technology companies During the year, the ATS team
in order to help them grow theirpromoted the innovative capability of
The Unit maintains close working NSW technologies through:
export and domestic sales.
relationships with major research
These 24 companies reported – nine editions of ‘ATSnapshot’
and development organisations,
projected sales of $13 million, e-newsletters distributed to over
and works collaboratively with
as a direct result of their 3,300 people
industry peak bodies, to assist
participation in the Technology – 422,000 website user sessions
new companies to commercialise
Demonstration Program recorded on the ATS
their products for global and
local markets. – the launch of the State Contracts promotional website
Control Board Information and – editorial copy placed in special
Australian Technology Showcase Communications Technology event publications, magazines
The Australian Technology Showcase (ICT) two year Pilot program for national television programs
(ATS) promotes innovative ATS ICT companies provides the ranging from the National
Australian technologies to the member companies with greater Innovation Festival and
international market. access to government purchasing Australian Anthill magazines to
As at 30 June 2005, there were 45 opportunities. the ABC New Inventors program
new NSW member technologies Promotional Events – NSW member technologies
added to the ATS program, bringing promoted through links with
The Innovation and Technology unit
the total number of NSW national websites such as the
organised over 50 separate forums
technologies to 428, spread across Australian Innovation Xchange
and events during 2004-2005
393 NSW based companies. ATS and AusIndustry.
including 30 events providing ATS
networking export support, and
members with unique networking ATS member international
promotional and marketing activities,
and educational opportunities that promotion and export support
have already contributed to more
attracted over 2,600 participants. during 2004-2005 included:
than $532 million in new sales,
exports, and equity capital injection NSW ATS members were invited to – the provision of ATS export
for NSW member technologies. forums that included detailed support grants to 57 NSW
webcast presentations on the ATS members
Highlights during 2004-2005,
Australia-United States Free Trade – support for participation at the
included:
Agreement and US Government ANZATECH October 2004
– the completion of a new business opportunities, educational
national ATS website launched conference in Palo Alto California
forums on topics such as managing by nine ATS ICT technologies.
by the NSW Minister for Small growth and accessing capital, and
Business on 6 April 2005, that presentations by the founders of Major National Research
provides improved promotional global Information and Facilities
benefits for ATS members and Communication Technology (ICT) Over the five year funding period,
enhanced contact with investors giants Hotmail and WIPRO. 2001-2006, the NSW Government
ATS Week highlight events, held has committed $7.15 million
from 6-10 September 2004, included investment in four of the state’s six
the ATS Patrons’ Award, a Major National Research Facilities, to
Commercialisation Workshop by increase the capacity and capability
Spruson and Ferguson, an ATS of the state’s research and
Nanotechnology Debate and the development facilities and enhance
PricewaterhouseCoopers – Making industry’s access to advanced
Global Companies Seminar. technologies. The four facilities are:
19
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– Nanostructural Analysis – Centre of Excellence for The NSW Government, through the
Network Organisation Autonomous Systems Department, is contributing $20
– Australian Synchrotron – Centre of Excellence in million over five years (2002-2007)
Research Program Biotechnology and Development and is working closely with NICTA to
increase its linkages with NSW SMEs
– Australian Proteome – Centre of Excellence for
in the ICT industry and to attract
Analysis Facility Integrative Legume Research
additional investment to the state,
– The Bandwidth Foundry. – Centre of Excellence for 65% of NICTA’s research projects
During 2004-2005, the Australian Mathematics and Statistics of are located in NSW.
Proteome Analysis Facility Complex Systems
The main highlights of NICTA’s
collaborated with FLUOROtechnics – – Centre for Nanostructured progress in 2004-2005 included:
a NSW small to medium sized Electromaterials
– NICTA filed four patents,
enterprise (SME) and as a result, GE – Centre for Complex Dynamic bringing the total to twelve,
Healthcare was granted the rights Systems and Control. seven of which are for research
to sell the FLUOROtechnics’
During the past year, the Centre carried out in NSW
products internationally.
of Excellence for Advanced Silicon – NICTA established industry
The Division continued to work Photovoltaics and Photonics entered linkages with Microsoft, IBM
closely with the facilities to identify into a number of collaborative and Nortel Networks.
opportunities where stronger links research projects with Suntech Power
with industry, particularly SMEs, There is now 140 staff in NSW based
Corporation. The Centre of Excellence
could be developed. This approach at the Australian Technology Park
for Autonomous Systems
is aiming to create benefits for both and the University of NSW. NICTA
commercialised its technology for
the research and development has also been successful in attracting
the mining industry through the
organisations and NSW industry. world class researchers to NSW from
establishment of a company called,
countries including Germany, South
The Division hosted four Research AcuMine. The Centre of Excellence
Africa, USA, Israel and Canada. The
and Development Organisation for Autonomous Systems also linked
number of PhD students supported
Roundtables during 2004-2005, Patrick Corporation with the Centre
by NICTA has reached 132, including
bringing together all the research of Excellence for Mathematics and
82 in NSW.
facilities supported by the Statistics of Complex Systems in a
Department, along with the major program to optimise Patrick Western Sydney IT Cluster
research facilities such as CSIRO and Corporation’s facilities at Port Botany. The Cluster, which has more than
the Australian Nuclear Science and The Division continued to work 225 members, works to grow
Technology Organisation (ANSTO), to closely with all of the Centres to Western Sydney’s strong and
foster the convergence of research expand their industry linkages. innovative ICT industry. The Cluster
disciplines and enable the Centres to has strong links with key industry
learn from and collaborate with
National ICT Centre of
Excellence associations, key local, State and
others in linking with the industry. Commonwealth Government
The establishment of the National
Australian Research Council agencies, research institutions,
ICT Centre of Excellence (NICTA) in
Centres of Excellence institutions providing tertiary
Sydney builds on NSW’s position as
education, organisations providing
The NSW Government, through the a leading ICT hub in the Asia Pacific
professional and specialist services,
Department, has committed to invest region. NICTA’s key focus is to
local trade organisations, major
up to $5 million, over the four years, establish relationships for
ICT user groups and key
2003-2004 to 2006-2007, in nine commercialisation with Australian
international clusters.
Australian Research Council Centres SMEs and larger ICT companies
of Excellence located in NSW. The through collaborative research, The Cluster members accessed the
Centres include: incubator development, staff following services and business
exchanges and information sharing. development initiatives:
– Centre of Excellence for
Quantum Computer Technology – all cluster members utilised
Gartner’s IT Research flagship
– Centre of Excellence for
advisory service
Advanced Silicon Photovoltaics
and Photonics
– Centre for Ultrahigh-bandwidth
Devices for Optical Systems
– more than 80 cluster members The work of the Cluster has CeBIT Australia 2005, officially
received daily customised contributed towards: opened by the NSW Premier,
updates on ICT tenders released – $95 million of sales featured 603 exhibitors including
in Australia and New Zealand. opportunities for Western Sydney 100 exhibitors from 18 countries.
Approximately $2 million ICT companies, as a direct result With an 11 per cent increase over
business was written as a direct of the Cluster’s linkages the previous year’s attendance,
result of this service almost 23,000 people visited the
– 16 Cluster members participated
– a new Cluster website was trade show.
in CeBIT Australia 2005, with
developed facilitating online six on the Department’s stand, The Department showcased the
collaboration and members reporting an estimated innovative technologies of 16 ICT
capability mapping via the $2.6 million in new direct companies including six from the
online directory sales prospects Australian Technology Showcase, six
– six bi-monthly newsletters, from the Western Sydney IT Cluster,
– 75 Cluster members were
including three e-newsletters one from the New Exporter program
referred to various AusIndustry
were sent to 2,700 readers per and three from regional NSW. The
products and services enabling
edition providing them with an 16 exhibitors each made, on
them to access $250,000 in
ability to share ideas and average, 18 significant sales leads,
R&D grants
business opportunities with predicted sales of $5.6 million
– 28 firms accessed the trade likely to be generated over the next
– ten monthly forums and fifteen mission programs offered by 12 months as a direct result of their
skill development workshops the Department and Austrade. participation in CeBIT Australia 2005.
provided knowledge, skills,
industry intelligence, as well as Smart Internet Technology
networking and other business Cooperative Research Centre Biotechnology
opportunities for the cluster In 2004-2005, the Department The Department continued to
members. More than 1,050 provided the Smart Internet implement the business elements
senior representatives attended Technology Cooperative Research of the five-year $68 million
these business functions Centre (SITCRC) with $210,000 cash biotechnology strategy, BioFirst.
– cluster members accessed the and $115,000 of in-kind support. The programs assist small to medium
business and industry marketing The Department continued to work sized biotechnology businesses
databases, business analysis with the SITCRC to finalise a proposal commercialise new products and
reports, industry profiles and to engage NSW-based SMEs that are services, develop international
business assistance information developers or users of the Internet, markets, and attract additional
available through DSRD’s to achieve outcomes from the investment. A highlight from the
Western Sydney Business Centre Centre’s research activities. The year was the inaugural NSW First
– the Business Opportunities proposal includes the establishment for Biotechnology Week (4–8 April
program provided access to new of NSW-based SME consortia, in 2005), which consisted of a series
sources of business within the areas of education, healthcare of 14 events organised by various
government, healthcare, and financial services. The public and private sector
education and other sectors, consortium model eliminates the organisations involved in the
creating business opportunities cost prohibitive barrier for SMEs biotechnology industry. Over 800
for cluster members to partner with the CRC. people attended these events which
were held throughout the State,
– under the Commercialisation CeBIT Australia 2005
including the inaugural BioFirst
Program, 45 cluster companies The Department was a major Commercialisation Awards ceremony
received advice on topics such as sponsor of CeBIT Australia 2005, at Government House and events in
Intellectual Property, Taxation, held at Darling Harbour from the Hunter Region and at Narrabri.
Finance and Legal. Seminars 24–26 May 2005. CeBIT Australia
have been led by key providers is the Asia-Pacific element of the
Ernst and Young and Spruson international network associated
and Ferguson – five cluster firms with CeBIT, the world’s largest and
took out preliminary patents, most successful information and
with a projected market value communications technology (ICT)
of over $200 million over the trade shows.
next five years.
21
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
International Promotion – distributing 2,500 copies of the • The delivery of four
During 2004-2005, the Division NSW biotechnology industry Commercialisation
supported missions to: directory at trade shows “Bootcamps” to meet
– the production of a new website the innovation and
– Medica 2004, the world’s largest
which profiles over 250 NSW- commercialisation needs of
medical device and supplies
based biotechnology companies a number of key stakeholder
trade show held annually in
and related research and service groups, including small to
November in Düsseldorf
organisations medium sized ICT business,
Germany. The 13 NSW
(www.biotechnology.nsw.gov.au) DSRD staff, and research and
companies exhibiting at Medica
commercialisation staff from
reported close to $9 million – organising and supporting
NSW funded research centres
in expected business outcomes briefings for the NSW industry
and the Smart Internet
from participating in this on biotechnology and medical
Technology Cooperative
event, through distribution, device opportunities in Europe
Research Centre
sales, investment and joint (September 2004), Israel
venture agreements (September 2004), the United • The trial implementation of
Kingdom (July 2004, May and an online portal for matching
– Bio2005 in Philadelphia in June
June 2005) and the USA Australian businesses with
2005. The NSW delegation
(March 2005) Australian expatriates
consisted of 80 senior
offshore, known as
representatives from the State’s – hosting prominent international
ExpatriateConnect
biotechnology companies, visitors, including Professor Sir
(www.ExpatriateConnect.com)
universities and research Martin Evans, Director of the
institutes. Twelve NSW based Cardiff School of Biosciences, – provided $1,085,156 in financial
organisations exhibited in the who is widely regarded as the support through the Proof of
Australian pavilion, with father of modern stem cell Concept program to 32 early
companies reporting potential research and Dr Eli Opper, the stage research companies to
business outcomes of $8 million. Chief Scientist of Israel. help commercialise their
Proteome Systems also signed a research. Proof of Concept
Commercialisation program participants reported
letter of intent with the Geneva-
based Foundation for Innovative During 2004-2005, the Division: sales/investment outcomes of
New Diagnostics (FIND), to – entered into a 12 month $20 million in 2004
develop diagnostics tests for Participation Membership with – supported the incubation of
infectious diseases for the Australian Institute for biotechnology start-up
developing countries. Commercialisation (AIC) to companies through the BioFirst
provide a suite of initiatives that Biotechnology Precinct at the
Domestic Promotion and Australian Technology Park.
Industry Development support the NSW innovation
agenda. These include the The Precinct tenant companies
During the year, the State’s following key aspects: attracted $14.6 million in
biotechnology capability was further investment during 2004, an
promoted by: • Tailored installation and
training workshops for DSRD average of $1.2 million per
– publishing four issues of the business development company. Both of the winners
BioBusiness in NSW e-newsletter, managers and Innovation of the inaugural BioFirst
which highlights NSW Advisory Centre (IAC) staff on Commercialisation Award,
biotechnology research and the AIC’s Commercialisation Medsaic Pty Ltd and CathRx,
company successes to over Management System. This are based in this Precinct.
2,700 contacts globally provides an “on-demand”
– distributing 24 editions of the commercialisation knowledge
biotechnology events and news engine as an aid to business
e-newsletters to 850 members advisory service to SMEs
of the NSW biotechnology
community, to keep them
abreast of events, training and
development opportunities,
government programs and
relevant news
Industry Development Forestry This co-operation facilitates better
In partnership with the business access to international
Agribusiness – Food Commonwealth, the Department freight and transport logistics by
and Beverages NSW businesses and exporters.
supports the operation of seven
There continued to be strong Private Forestry Development The Division assisted the SFC in
international interest in NSW as a Committees in regional NSW. undertaking a ‘NSW Landside
reliable source of supply for premium These Committees undertake a Infrastructure Capability –
quality, innovative food and beverage range of activities to encourage an International Containers’ study, as a
products. The Department assisted in expansion of the resource base follow-up to an earlier study on
providing tailored itineraries, available for timber processing ‘Mapping the NSW Import and Export
briefings and product evaluations for activities in their areas. Container Chains’ that investigated
a number of international food container management practices and
Their efforts contributed to nearly
buyers who visited NSW during provided qualitative and quantitive
20,000 hectares of new plantation
2004-2005, including: information to assist industry and
developments, worth some $60
– Oil & Vinegar, a significant million, being authorised for government to define international
specialty food retail chain in establishment by the NSW container movements in NSW and
The Netherlands Government across the State during determine key factors that contribute
– Villa Market, a high-end the year, a three-fold increase on to the movement of containers.
supermarket chain in Thailand 2003-2004 plantings. The latest study enhances industry
– Makro Cash and Carry, a major and government understanding of
Import Replacement current and future capacity
retail chain in Thailand, Malaysia
The Division, together with the constraints of the NSW landside
and Indonesia
Industry Capability Network ICN container system and provides a
– buyers from the Asia/Pacific and (NSW), works with local companies foundation for improving the
Middle Eastern regions who to promote their capabilities to efficiency of the supply chain.
visited Sydney while in Australia buyers of imported goods and
for the Fine Food 2004 trade The Division assisted AFEC in
materials, especially associated with completing a study on land based
exhibition in Melbourne major projects. In NSW, ICN achieved movements at Sydney Airport (KSA)
– international wine buyers who $167.4 million in import replacement which handles between 55 and 60
attended the major showcasing work for local firms in 2004-2005, per cent of Australia’s international
event, Wine Australia 2004. an increase of $41 million from and domestic air freight. The
The Division continued to support last year. research showed that some resource
the National Centre of Excellence in Over the last year the ICN national and operating constraints are
Functional Foods based at the Smart network helped Australian currently affecting the performance
Food Centre at the University of companies to replace a total of of the air-land interface at KSA and
Wollongong. The Department $645 million worth of imports, with there is an urgent need to develop
funded a Coordinator to link the NSW receiving the largest benefit of strategic responses to these issues.
Centre with NSW companies any state. During the year, NSW The Division was also involved in
interested in product development, companies received orders across another AFEC project to research the
market opportunities, and Australia valued at $196 million, viability of bi-modal exports and
collaborative R&D in this field, which, without ICN’s support, would imports. AFEC continued to
and hosted the Centre’s Annual have gone to overseas suppliers. participate in research on airfreight
Conference in April 2005. Additionally, ICN activity over the last movements through regional NSW
The Division organised and 12 months has created 3,332 jobs airports, both interstate and overseas.
supported a variety of seminars and for NSW and 10,982 nationally.
workshops across the State on a Textiles, Clothing and Footwear
range of industry issues, attended Air Freight Export Council The Division continued to support
(AFEC) and Sea Freight
by an estimated 500 food Council (SFC) Mercedes Australian Fashion Week
industry participants. (MAFW) as a platform for NSW
The Division co-funds and works with fashion designers to cost-effectively
The Department released nine issues the Air Freight Export Council (AFEC)
of its food e-newsletter, Food Bytes, pursue new export opportunities.
and the Sea Freight Council (SFC) to MAFW 2005 was held in Sydney in
during 2004-2005. An estimated bring together the many services and
1,000 food companies and industry early May and showcased collections
products providers in the logistics of some 100 designers to more than
stakeholders subscribe to Food Bytes. industry and to improve supply chain
2,000 delegates, including nearly
management practices in NSW.
23
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
200 international buyers. In the lead- Sports Infrastructure and contacts in Guangzhou, for the
up to the event, the Department Services, Business Tourism 2010 Asian Games, and in Delhi, for
held a business workshop for around the 2010 Commonwealth Games.
80 NSW designers and other and Major Events A mission to South Africa to discuss
MAFW participants to help them Sports Infrastructure opportunities for the Soccer World
maximise the return from their Cup 2010 has created business
investment in MAFW. The Division worked closely with leads for security, planning and
Austrade to support NSW companies sports services.
involved in contracts for the Athens
Culture, Recreation Following early successes in the
2004 Olympic Games. Several NSW
and Tourism companies, including Bligh Voller preparations for the Beijing 2008
Olympic Games, NSW companies
Blue Mountains Cultural Centre Nield and Sinclair Knight Merz, gained further significant business,
– Katoomba were involved in venue design and
construction. Other companies, including PTW Architects’ design
The Division is working with a role for the Beijing Olympic Village;
including MI Associates, TAFE Global,
number of other NSW Government engineering consulting firm
Starena International, Great Big
agencies and the Blue Mountains Northcroft Australia providing
Events and David Grant Special
City Council to build the Blue advice to the Beijing State Asset
Events, successfully delivered services
Mountains Cultural Centre. The Management Company; Cox
in planning, security, training,
mixed-use development will comprise Architects continuing with their
games management and producing
a cultural centre, retail area and a design for the Qingdao Olympic
the ceremonies.
two level car park. Sailing base; and a URS-led team
The Division’s Beijing 2008 being awarded first prize in an
The NSW Government has allocated
Olympics and other Games business international design competition for
$7.3 million to this project, and is
development programs have yielded the landscape and external works for
currently negotiating with the
impressive results. The Division, the Qingdao Sailing base. Sydney
Stevens Group and the Blue
through the Sydney-Beijing Olympic architects Timothy Court and
Mountains City Council to finalise
Secretariat (SBOS), has engaged with Company were awarded the contract
the Option Deed.
the Beijing Organizing Committee for for the design of the 2008 Olympic
It is expected that construction will the XXIX Olympiad (BOCOG), the Equestrian Centre in Hong Kong.
commence in 2006. Beijing Municipal Government and
China’s National Government to NSW companies have had some
Film Industry notable successes in Doha (2006
provide advice based on the
The Division jointly administers the experience gained from the success Asian Games), including the
Film and TV Industry Attraction Fund, of the Sydney 2000 Olympic Games appointment of David Atkins
with the New South Wales Film and and of other recent Games. The aim Enterprises to prepare the Opening
TV Office. The Division also oversees of this program is to introduce and and Closing ceremonies. A number
the agreement between News endorse leading-edge NSW of specialists were also involved in
Limited/Fox Studios Australia Pty Ltd companies with expertise in the bid preparations by London and
and the Ministerial Corporation delivering planning, design, Paris for the 2012 Olympic Games.
for Industry. engineering, management and Overall, the estimated value of
The National Survey of Feature Film implementation of sports/events business secured by NSW companies
and TV Drama Production, prepared infrastructure, technologies and in Beijing and Doha exceeds $100
by the Australian Film Commission, specialist managerial skills. million and more than 300 NSW
showed that NSW maintained its The Division and SBOS are also companies have been advised of
dominance of the industry with tracking opportunities across a opportunities and supported
47 per cent of total film production broader range of forthcoming through this program.
expenditure in Australia, despite a international Games and events,
nationwide drop in film production with particular focus on master-
expenditure by 10 per cent. The planning, architectural design,
reason for the decline in the Games planning, transport and
production expenditures in NSW traffic planning, environment
was due to a drop in the number of planning and technologies, security,
foreign productions choosing NSW communications and IT, public health
as a filming destination. The level and food safety, and training.
of expenditure for Australian Companies are also being
productions filmed in NSW was progressively introduced to
the same as last year. appropriate officials, and business
Business Tourism and Australia Week, Los Angeles Convention and Visitors Bureau,
Major Events 2005 TAFE NSW and the Sydney Harbour
The Division works with the Sydney Australia Week was held in Foreshore Authority held seven
Convention and Visitors Bureau Los Angeles from 15–23 January business events in the Australian
(SCVB) to attract selected 2005 and was co-ordinated by the Pavilion during Sydney Week from
international conferences and events Australian Consulate-General in Los 31 May– 4 June 2005.
to NSW. Over 100 conferences Angeles. The Department was one of The events covered areas like
estimated to attract around 185,000 the 24 sponsors for the event. profiling NSW technologies such as
delegates and inject approximately The key theme for the week was BodyOnline, a healthcare company;
$779 million into the NSW economy “Australia – A great place to do encouraging tourism, promoting
will to be held in Sydney between business, service products, invest NSW’s capabilities in Wine and Food
2004 and 2012. and visit”. Fourteen events were and promoting Sydney as a
Major conferences secured this year held over the period attracting destination for sporting, business
include, the Society of Environmental over 5,000 attendees, key ones and fashion events. The NSW
Toxicology and Chemistry World including the NSW dinner to Minister for Tourism and Minister
Congress 2008 and The National promote the 2005 Forbes Global for Sport and Recreation, Minister
Rural Health Conference 2007. CEO Conference, the BHP Billiton for Women and Minister assisting
Trade and Investment Seminar, the the Minister for State Development,
In 2004-2005 DSRD supported
Food and Beverage Trade Day, and hosted these events.
twenty one bids for conferences
the Film and Style Festival. All events were highly successful
(five financially). Should they be won
for Sydney, these conferences will 2005 World Expo – Aichi, Japan with over 400 attendees (90 per
generate up to $60 million in direct cent Japanese), a large number of
The NSW Government was a sponsor
spending and create up to 240 jobs. business leads and media coverage.
of the Australian Pavilion at the 2005
Any financial support will be used The NSW companies participating
World Expo held in Aichi, Japan,
to develop business elements within in the program have reported
from 25 March-25 September 2005.
the Conference program to assist outcomes including: new wine
More than 2.5 million visitors are
NSW industry to showcase orders from Japanese wholesalers
expected to attend the Australian
products and expertise to an and new relationships with Japanese
pavilion at the Expo. The
international audience. companies which are likely to lead
Department, in co-operation with
to further product sales.
Tourism NSW, the Sydney Olympic
Park Authority, the Sydney
Case Study
MobileIT Solutions boosts Electrolux communications
– Wireless customer service software also updates accounts and stock control systems
Western Sydney IT Cluster firm, read and complete service requests “After assessing options,
MobileIT Solutions, has won a on site and then print a customer Electrolux chose Mobile IT Solutions
contract with Electrolux Home invoice via an infrared printer. It as the supplier”, Mr Astorri said.
Products, Australasia’s largest simultaneously updates the Electrolux Electrolux is now planning to
household appliances company, service management application implement the same solution in
to improve communication to its which, in turn, updates Electrolux’s other countries, given the benefits
field service engineers. Electrolux accounts and stock control systems . the solution is delivering to its
manufactures and markets such Robert Astorri, Business Development operations in Australia.
famous brand names as Manager at Electrolux said the Mobile IT has been a Western Sydney
Westinghouse, Simpson, company wanted to use handheld IT Cluster member since 2001.
Electrolux and Kelvinator. technology and wireless It exhibited at the 2004 and 2005
MobileIT Solutions, a Castle Hill firm, communications to improve CeBIT exhibitions and participated
designed special software to allow information flow and eliminate in the Cluster’s Wireless Special
Electrolux service engineers to receive entering the same data several times. Interest Group.
service jobs wirelessly in the field via The system will increase productivity,
a Nokia 9210i (combined improve delivery of customer service
PDA/mobile phone). The MobileIT and cut operating costs.
software enables the engineer to
6
25
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Investment Division
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
London Office Business Migration Interstate Agreement on
The Department’s office in London The Division’s Business Migration Investment Attraction
identifies investment opportunities in Unit administers a program of State In 2001, the NSW and Victorian
the UK and Europe. This year it sponsorship for business migrants Governments established an
targeted over 130 companies looking to establish businesses in Interstate Agreement on Investment
regarding possible investment in NSW. During 2004-2005 members of Attraction. In 2003, all remaining
Australia that would allow the the Unit visited Hong Kong and States and Territories, with the
companies to service the domestic, China to promote business migration exception of Queensland, joined
Asia Pacific and global markets. to NSW. The Unit also introduced an the Agreement.
Many of these companies were in electronic newsletter to migration The Agreement limits the potential
the financial services sector and were agents. The year saw increased of companies to leverage financial
targeted to build on the strengths of interest from migration agents and assistance from State and Territory
Sydney as a regional financial centre. prospective migrants. State governments through the relevant
The Office also co-ordinated and sponsorship was granted to 232 business agencies consulting with
represented NSW at the London applicants for Commonwealth visas. each other when such potential is
Business and Skilled Migration Expo. On average, each business thought to exist. With the
As the State’s point of contact for migrant invests $170,000 and Agreement in place for a number
prospective business migrants, the creates four jobs. of years, only three occasions arose
London Office referred over 100 Skilled Migration to Regional during the year where consultation
enquiries to the Division’s Business Areas was warranted.
Migration Unit.
The Division co-ordinates NSW
involvement in regional skilled
migration programs. Decisions to
support visa applications are made
by regional development boards and
associated entities in the various
regions of NSW to specifically target
skill shortages in their regions. NSW
supported 321 visa applications
under regional migration programs
during 2004-2005.
Case Study
Jetstar Airways
Jetstar Airways, a member of the The decision was made after an The expansion of Jetstar forms part
Qantas Group, selected Newcastle extensive tendering process involving of the Department’s strategy to assist
Airport to establish the maintenance other maintenance facilities within the development of the aerospace
facility for their new Airbus A320 Australia, New Zealand, Singapore cluster around Newcastle Airport.
aircraft, bringing a $29 million and Hong Kong. Regional Development and
dollar investment in engineering Investment Divisions worked closely
infrastructure to the Hunter. This with Newcastle Airport and Jetstar
decision will secure 82 existing jobs to bring these jobs to the Hunter.
and create an additional 50 highly Jetstar also received support from
skilled positions in aircraft the BHP Trust.
maintenance engineering, including
a number of apprenticeships.
7
Small Business Development Division
The Division supports small – working with 2,500 small Specific Achievements of the
businesses in the state to increase firms that collectively reported Division
employment by strengthening their a growth of 23 per cent in Australia’s first Home-based Business
ability to export and increase sales export sales and ten per cent Week was held in May 2005 in
income, and grow their profitability. in employment partnership with local councils.
Assistance is provided to help small – assisting 191 firms to commence The week featured 24 seminars
firms to innovate in their business international operations or grow attended by nearly 900 home-based
practices and undertake product their export sales through 52 business people.
development to satisfy customer trade missions, market visits and A new program, the Business
needs in their domestic and overseas independent market visits These Growth program, was developed
markets. Support is available for companies reported export sales and delivered to the Department’s
small firms in all industry sectors of $3.9 million during the Aboriginal business clients. The
across the state and at all stages missions and visits and projected program provides support to
of their business development. export sales of $82.1 million over Indigenous clients to address
Firms facing particular business the following twelve months identified business growth
opportunities in a changing – delivering over 175,000 services impediments. The program was
environment are assisted in a timely to small business people by the delivered to 12 Aboriginal enterprises
fashion. During 2004-2005, the Business Advisory Service leading during the year. Five Aboriginal
Division maintained its past to almost 4,000 jobs being artists were also supported to exhibit
emphasis on managerial innovation, created across the state their work in Dubai as part of the
focussing its efforts on small Department’s trade mission to the
– developing skills of over 10,000
firm business practice. United Arab Emirates in March 2005.
small business people who
In the 2004-2005 year, the attended more than 200 events, The Department entered into new
Department contributed to small workshops and seminars on four-year contracts for the delivery of
business development and growth contemporary business practices. its business advisory service by 18
of the NSW economy by: “super” centres across the State.
29
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
The Small Business Development One hundred and seventy seven Four hundred and thirteen operators
Corporation identified a need for women business owners graduated participated in a total of 21 Home-
small firm owners to prepare for from five regional programs in the based Business Action Programs on
management transition. A workshop reporting period. These programs business planning, marketing and
on “Maximising the Value of Your were conducted in the Southern better systems in the Southern
Business” was developed that Highlands, Northern Rivers, New Highlands, Penrith, Sutherland,
addressed preparatory work for England-North West, Shoalhaven Lismore, Albury, Central Coast,
business succession. and Mid-North Coast regions. Blacktown, Sydney, Lower Hunter,
The Department launched Twenty one Growth Strategy North Sydney, Batemans Bay and
Stepping Up, a four-year Workshops covering a variety of Armidale areas. Each program
$2.6 million mentoring program, topics such as IT Solutions for your consisted of five workshops and
for small business. Business, Myths of Market Research, equipped operators with the
Charge the Right Price and Business essential tools to strategically plan
A delegation of 30 companies led by
Branding were held in metropolitan their business operations.
the NSW Minister for Small Business
attended the 20th Joint Economic Sydney and across the State in Almost 150 home-based business
Meeting between Guangdong and locations as varied as Wagga Wagga, operators attended three Home-
NSW in Guangzhou during Bowral, Dubbo and Tweed Heads. based Business Seminars which
December 2004. The Department Eight hundred and forty three were held in Sydney, Parramatta
also assisted the NSW Legislative women attended these workshops. and Newcastle.
Council to host a delegation of In addition, four workshops were During 2004-2005, the Department
members of the Californian Senate also held as part of Small Business updated its electronic business
in December 2004. September 2004, including a popular information resource for home-based
“Women in Export” seminar. These business operators, the “Homebiz
Small Business additional workshops attracted 310 Kit: Grow your business at home”.
business women. It is available online through the
Women in Business Program Small Business website
Home-based Business Services
The Women in Business program, (www.smallbiz.nsw.gov.au/hbb) or
The Home-based Business Program
which celebrated its 10th Anniversary as a CD-ROM, free of charge. Five
has been designed to enhance the
in 2005, offers a series of Growth thousand CD-ROM copies of the
growth of home-based businesses in
Strategy Workshops, Regional updated Kit were produced and
NSW by providing tailored
Programs and Mentor Programs to distributed throughout the home-
development programs, seminars,
the 168,000 women business based business sector in NSW.
networking opportunities and
operators comprising about 29 per
information resources. In June 2004, Business Advisory Services
cent of all business operators in
there were 282,400 home-based The Business Advisory Services
New South Wales. These programs
businesses in NSW, representing provide a one-stop shop for anyone
aim to give practical strategies to
almost 64 per cent of all NSW in NSW who is thinking of starting
foster business skills and confidence,
small businesses. a business, or is already in business
build networks and effectively
manage business growth. Australia’s first-ever Home-based for themselves and wants to grow
Business Week was held in May 2005 their business. People can access
During 2004-2005, four Women in
and attracted nearly 900 people. information resources, one-on-one
Business Mentor Programs in Sydney
Twenty-four seminars were held business guidance meetings with
and one in Newcastle were
across NSW, at locations including a business adviser, and referrals
completed. Ninety seven women
Sydney, Wagga Wagga, Lismore, including to a range of Departmental
business owners participated in these
Bathurst, Newcastle, Gosford, Broken programs and services and
five programs, with 57 per cent
Hill, Parramatta and Shellharbour. participate in low-cost business
advising that their business turnover
Feedback from participants indicated training workshops covering a
increased and 22 per cent reporting
that they gained useful information variety of topics such as business
an increase in staff as a direct result
from the seminars on topics such as planning, marketing and
of the program. During the year a
internet security, choosing the right cashflow management.
new program module on “selling
technology and web marketing.
and negotiation” was developed and
added to program materials. In the reporting period, the Home-
based Business Program directly
assisted 689 businesses through
programs and seminars.
The 18 Business Advisory Services During 2004–2005, the Business companies, employment of
delivered over 175,000 services Advisory Services underwent a Aboriginal people, supply of goods
(including 93,000 in regional New restructure to streamline their and services by Aboriginal firms and
South Wales), offered workshops in delivery of services and their mentoring of Aboriginal businesses.
areas including marketing, business administration. Most have offices in Partnerships were formed in diverse
planning and financial management, several locations and also offer industry sectors such as construction
and reported assisting in the creation outreach services to more remote and building, tourism, mining,
of approximately 4,000 new jobs parts of their service areas. They hospitality and catering, and
during the year. In addition they feature more effective adoption of telecommunications.
provided over 400 training sessions. new technologies including the The Department provided financial
Two examples that illustrate how Internet, and they can be contacted assistance to 19 Aboriginal
the Business Advisory Services on a dedicated state-wide phone businesses to participate in trade
worked with new or growing number, 1300 650 058. shows, including the Australian
businesses were: Aboriginal Business Tourism Exchange, Sydney on Sale,
The Temple of Fitness is a new gym Development Corroboree 2004, Gift and
in Broken Hill which started in Homewares Australia, the Post Bridal
The Department’s experienced team
February 2005 with the assistance of Expo, Good Food and Wine, and the
of Aboriginal Business Development
the Far Western Business Advisory Ag-Quip Field Day.
Managers worked closely with
Service. Kate Attard from the Service indigenously-owned business To help Aboriginal firms to become
helped Ken Lavanda, Luke McCarron enterprise clients to identify areas of part of industry information flows
and Cain Radford develop their business growth to build sustainable and gain market intelligence, the
business plan which addressed four businesses. The Department’s Department held six industry
key factors: location, feasibility, Indigenous Advisory Service team networking sessions. These sessions,
market and finance. She also helped provided individual support to over for the oyster farming, tourism and
them prepare their financials which 208 Aboriginal business people. the arts industry participants, were
they used to obtain finance from the attended by representatives from
The Department continued to assist
bank, as well as assisting them with 129 Aboriginal enterprises.
Indigenous firms to identify their
ideas to generate business. The gym Four Aboriginal Business Mentor
strengths, business opportunities and
has already been so successful that it Programs were delivered with
implementation of business
is undergoing expansion. a total of 48 Aboriginal
practices. During the year, 27
The South-West Sydney Business Indigenous enterprises engaged in a business participants.
Advisory Service based in variety of business activities and were The directory of Aboriginal business
Campbelltown has helped Debbie assisted with a business review and employment programs, Directory
Corlet set up as a ‘virtual secretary’ consultancy. Twelve Aboriginal of Business Services for Aboriginal
in a business called Deb-e-Secretarial. businesses received financial People, was updated during the year.
Ceri Emmet and Gillian Walker from assistance to retain expert consulting The Directory provides information
the Service provided Debbie with advice to help implement business on a range of New South Wales and
initial information about running a practices to improve their business Commonwealth Government
business along with advice on how results under the Department’s new programs and services available to
to identify her target market and Aboriginal Business Growth Program. assist Aboriginal people currently
contact potential clients. It also
The Department’s Aboriginal involved in business or who are
helped her get started on her
business team assisted four considering starting a business.
business plan, and she has attended
Aboriginal businesses to access the Aboriginal Business Development
workshops presented at the Service.
Department’s mainstream programs. Managers delivered 13 business
According to Debbie, “The business These projects are expected to workshops to nearly 300 Aboriginal
world can be quite daunting. It’s facilitate total investment of over business people across the state
good to know that there is support three million dollars and resulting including Lismore, Bourke,
for small business start-ups.” in 36 full time jobs. Brewarrina, Bega, Newcastle,
Under the Budyari Ngalaya: First Blacktown, Bateman’s Bay, Nowra
Peoples Partnership Program, 21 and Dubbo. Business topics covered
business partnership projects business planning and marketing,
between Aboriginal enterprises and preparing for trade shows and
the private sector were formed. financial management.
These projects involved sub-
contracting to Aboriginal building
31
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Western Sydney Business Centre – assisting business owners from Small Business Development
The Parramatta Business Centre non-English speaking Corporation
provides companies in the Greater backgrounds in the Auburn The Small Business Development
Western Sydney region with access business community to explore Corporation is a policy advisory body
to the full range of Departmental business growth opportunities. to the Minister for Small Business
business development programs. The program supported business and is constituted under the Small
The Business Centre fully participates operators from the Vietnamese, Business Development Corporation
in Departmental events including Chinese, Turkish, Arabic and Act 1984. The Corporation was
Small Business September and Korean communities reconstituted in July 2004 for a
Home-Based Business Week. – the Western Sydney three year term.
The Parramatta Business Centre Industry Awards Its membership is drawn from small
supported more than 250 businesses – development of local and business and includes the
with access to a range of business regional economic profiles Department’s Director General. The
databases. The industry research and – stimulating jobs growth amongst members of the Corporation are
analysis they were able to undertake young people for the Liverpool appointed by the Governor on the
helped them to make informed construction industry by linking recommendation of the Minister.
decisions on business challenges schools with employment The Corporation is chaired by Lynn
including developing domestic and agencies and construction firms. Scott, Managing Director and Master
international markets. Franchisor of 12 outlets of the
Small Business September 2004 Creative By Design Group. The
The Parramatta Business Centre
includes multi-media meeting and The Division managed Small Business Corporation’s membership and
conference facilities. In the reporting September 2004 which was primary objectives are detailed at
period, the Department held 233 promoted under the theme “Building Appendix 4 – Controlled Entities
business seminars, involving 5,948 Your Future” and featured 316 of this report.
participants. Seminars focused on events hosted by 125 partners. Policy development work in 2004-
topics such as innovation, lean It aimed to raise the awareness in 2005 included the provision of
manufacturing, marketing, sales and the broader New South Wales comment on WorkCover’s “Review of
promotion, e-business, human community of small business Premiums and Implementation of
resource management, and export achievements and contributions, and Grouping” discussion paper and the
strategy development. to involve small business owners in Occupational Health and Safety
activities to promote networking, Legislation Amendment (Workplace
During the year, the Department
develop skills, build links to support Fatalities) Bill. The Corporation also
worked with a number of existing
organisations and to gain market considered the skills development
and potential exporters. This work
intelligence to help grow their needs of small business, and
included the development of a series
business. Business topics covered in business issues impacting on regional
of practical and hands-on cross-
the events addressed issues such as and indigenous based businesses,
cultural workshops to assist exporters
technology, financial management, including the information needs of
to Vietnam, China and Japan. In
sales and marketing, and exporting. operators of small firms.
addition, seminars on export market
preparation, export market entry The sponsors of Small Business The 2004-2005 work program of the
strategies, and specific country September 2004 were Australia Post Corporation included development of
briefings were held to support Small Business Awards NSW/ACT, a Communications Strategy and
participants on the Department’s TAFEPlus, Google and Quicken. Small development of a self-assessment
international market visit and trade Business September 2004 partners quiz “Winning Government Tenders”.
missions program. were drawn from amongst State and The Corporation also identified the
Commonwealth agencies, local need for skills development in the
The Greater Western Sydney
government, industry associations, area of building value into a business
Economic Development Board is co-
chambers of commerce and and to prepare for succession
located with the Parramatta Business
community organisations. More than planning. The Corporation developed
Centre and partners the Department
19,000 small business people a workshop program for small and
in initiating, developing and
attended a workshop or seminar medium businesses “Maximise the
implementing projects which assist in
and over 25,000 people attended Value of Your Business” which is
jobs growth and investment in the
a business expo. being rolled out to the small
region. The Department worked in
partnership with the Board on a business community by the
number of projects including: Government’s Business
Advisory Service.
Small Business Website Business Clusters BioBusiness Program
The small business website The Department launched a new As part of the BioFirst strategy, the
www.smallbiz.nsw.gov.au helps Business Clusters program during the Division delivered the High Growth
people to start, manage and grow year. The program facilitates Bio Business and Non Research
their business. adoption of new ideas and ways of Establishment Costs programs. The
The website was redesigned this conducting business by clusters of High Growth Bio Business program
year to make it more user friendly networked small firms by creating assists established companies while
with intuitive navigation and momentum, productively tackling the Non Research Establishment
improved search capabilities. obstacles and barriers, and opening Costs program helps start-up
Information on the website has up new and successful commercial businesses. Both programs focus on
been categorised into the following opportunities. Benefits expected to closing the gap between basic
areas for easy access: flow from the program include research and development and
employment growth and jobs commercialisation by providing
– Starting in Business
retention, increased investment assistance for obtaining regulatory
– Managing a Business and enhanced domestic and approvals related to the
– Technology in Business export performance. commercialisation of products or
– Exporting The Department worked with several services, market development and
business clusters and networks research and business process
– Government Programs improvement. The Non Research
during the reporting period across a
– Resources that include business range of sectors particularly in the Establishment Costs program also
tools, useful web links, areas of Tourism, Manufacturing, provides additional assistance for
publications and success stories. Food and Wine. intellectual property protection and
More than 511,000 visits were legal costs in agreements or advice
recorded during the reporting period Stepping Up: Helping Small for commercialisation.
and over 3,500 people are registered Business Grow
During the reporting period, 46
to receive the Small Business Update During 2004-2005, the Department companies received $1,037,000 total
newsletter by email. launched the Stepping Up program, offers of assistance from the High
its new four year, $2.6 million Growth Bio Business program and
Business Services mentoring program. The Stepping 49 companies received $959,000
Up program provides owners of total offers of assistance from
New Export Opportunities businesses established for at least the Non Research Establishment
Program (Export Development) two years who are committed to Costs program.
The New Export Opportunities growing their business, with access
A representative sample of clients
Program helps rapidly growing small to a business mentor.
assisted during the year were
businesses to undertake export The Stepping Up program has two surveyed and reported increases in
preparation and develops export key core components, a minimum employment of 22 per cent, turnover
market entry strategies. It provides of ten hours of small group of 20 per cent and export sales of
export ready small business operators workshops on practical and strategic
58 per cent.
assistance to enter overseas markets business issues, and ten hours of
to build profits, jobs and exports. mentoring support from an Innovation Services
During the reporting period, the experienced business person available Individuals and small businesses with
Department’s experienced team of to guide the business through the inventions and innovations were
Business Development Managers challenges of expansion. given the opportunity to test their
worked with 77 companies looking Over 160 participants benefited from ideas and access guidance from
to enter new, or strengthen existing, the Stepping Up Program in the skilled innovation advisors through
export performance. Working closely reporting period. the Department’s Innovation
with individual clients to identify Advisory Centres. Four centres
areas of opportunity and located at Newcastle, Sydney,
improvement, these companies Wollongong and Penrith helped
received assistance of $525,935. inventors and small business
innovators across the State to
develop and commercialise their
ideas. During the year 1,314 free or
subsidised services were provided,
including 28 low cost technical and
market assessments.
33
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Two promotional seminars were Technology Diffusion Markets visited during the reporting
held by the Illawarra and Sydney Support has been given by the period included China, Fiji, Hong
Innovation Advisory Centres, Department to the Welding Kong, India, Japan, Malaysia,
attracting 88 participants. Technology Institute of Australia for New Caledonia, New Zealand,
The contracts for hosting the its three year technology diffusion Singapore, Taiwan, and the
Innovation Advisory Centres were program in NSW from September United Arab Emirates.
renewed for the Sydney, Hunter and 2003, to supplement the The participating companies reported
Illawarra Centres, and a new Western Commonwealth funding attracted sales of $3.9 million during the
Sydney Centre in Penrith was by the Institute. In 2004-2005, the missions and visits, and have
established in 2004-2005. program has resulted in 494 projected that their participation
Innovators also used the telephone and 234 onsite technical will lead directly to a further
Government-supported on-line services to NSW industry, as well as $82.1 million in new export sales
innovation advisory service 46 technology demonstration in the coming twelve months.
www.ausinvent.com for information awareness events involving 985
Regional Export Advisers
on advisory services, self-assessment attendees from the transport,
Network
software, a virtual exhibition, construction, mining, pipeline,
defence, water and pressure Specialist export advisers are located
relevant links and news and events.
equipment sectors. in Bathurst, Coffs Harbour, Nowra,
This online service attracted 38,918
Tamworth, Parramatta, Gosford and
user sessions during the year. Sustainable Business Wagga Wagga to give practical,
Innovation Clusters Assistance for businesses to adopt hands-on advice to companies
In 2004-2005, Innovation Clusters environmentally sustainable practices which are new to exporting or are
placed greater emphasis on continued, with the Profits from expanding their export activities
dissemination of experiences and Cleaner Production Self-Help Tool for into new markets.
success stories among progressive Small Business and case studies During the reporting period, the
NSW firms, in order to focus on the available from the Department’s advisers maintained an active
implementation of modern Small Business website. portfolio of 765 companies under
technology and management management. These companies
practices in targeted industry sectors. Trade Services achieved new export sales of
Four Innovation Clusters based in $2.9 million in 2004-2005.
The New Export Opportunities
Western Sydney, Central Coast and The export advisers located outside
program offers a number of activities
Newcastle, provided continuous Sydney also deliver Austrade’s
and services to help small to medium
learning forums for 576 business TradeStart Program in their regions,
enterprises access new overseas
participants, through 20 seminars with 66 companies enrolled into the
markets and expand their exports.
and site visits, on a wide range of program by the Export Advisers in
topics chosen by the members. Trade Missions and the reporting period.
Three of these groups were specific Market Visits In addition, the Department funded
to the Information and The Division organised or supported the Hunter Export Centre in
Communications Technology, trade missions and market visits to Newcastle to deliver export advice
Building and Construction, and help firms investigate and enter new and assistance to new and existing
Aquaculture sectors. overseas markets or grow existing exporters in the region.
Six issues of the Technology and markets. Participants are able to
Innovation newsletter were develop firsthand knowledge of
published, reaching over 1,000 customer needs and to make contact
readers per issue. This newsletter is with potential agents, distributors
for Innovation Cluster members to be and end-users.
kept abreast of the activities of these One hundred and ninety one
groups, of their forthcoming companies took part in 17 group
meetings, and of opportunities to trade missions and market visits and
avail themselves of upcoming events 35 individual market visits organised
and programs. by the Department.
Service Exports Unit NSW has Sister-State Relationships Trade and Investment –
This specialist unit helps promote the with Guangdong Province (China), China/Hong Kong
export of services and expertise by Tokyo (Japan), Seoul (Korea), Jakarta The Trade and Investment Adviser,
organisations in the private sector (Indonesia), and California (USA). China/Hong Kong, delivered six
and by NSW Government agencies. Memoranda of Understanding have workshops and seminars attended by
been signed with North Rhine- 297 firms interested in exporting to
During the reporting period, the
Westphalia (Germany), Colorado these markets. In addition, a seminar
Service Exports Unit conducted seven
(USA), Wales (UK), Lebanon and on “Managing Business Risks in
export seminars and workshops
Kelantan (Malaysia). China” was held with presentations
attended by 151 firms from the
education, sporting, environmental Significant activities during 2004- by experts from China’s International
and design services sectors. 2005 included: Economic and Trade Arbitration
– Guangdong – the 20th Joint Commission with over 60 NSW
In addition, the Unit conducted businesspeople attending.
11 seminars and briefings attended Economic Meeting (JEM)
by 401 firms to assist them pursue between Guangdong and NSW Four meetings of the Department’s
procurement opportunities with took place in Guangzhou during China Working Group were
international development agencies December 2004. A delegation of convened during the reporting
including AusAid, the Asian 30 companies led by the NSW period to co-ordinate and support a
Development Bank, the World Bank Minister for Small Business range of intra-departmental, China-
and the United Nations. attended the JEM. The related programs and activities.
companies represented offered
NSW Exporters Network New South Wales-Asia Business
a range of products and services, Advisory Council
The NSW Exporters Network is a including architectural services,
education and training, building The New South Wales-Asia Business
web-based club, located at
technology, tourism, and Advisory Council plays a vital role in
www.export.nsw.gov.au, which
waste management the Government’s Multicultural
assists exporters throughout NSW
Business Development Strategy.
to share information and leads, and – California – Under the auspices The Division provides secretariat
to communicate with each other of Sister State Relationship with support to the Council, which
and the Department. California, the NSW Legislative comprises 11 members and is
The network also holds regular Council hosted a delegation of chaired by the Parliamentary
meetings at which members are able members of the Californian Secretary assisting the Premier on
to discuss trade topics, share Senate in December 2004. The Trade and Investment and assisting
experiences and market knowledge, Division assisted with program the Minister for State Development.
and learn from the advice of arrangements for the Delegation
in Sydney and Newcastle. The Council met four times during
specialists on subjects such as market
the year and hosted three business
entry strategies, export finance, legal
Incoming Missions networking functions, including the
issues, insurance and transport.
During the reporting period the 2005 NSW-Asia Business Lunch at
During 2004-2005, membership of Government House.
Division hosted 22 inbound visitors
the Exporters Network increased by
and delegations from a number of
54 per cent to 612 members.
countries including China, UAE,
International Services India, Italy, USA, South Africa
The Division delivers a range of and Thailand.
services and initiatives to Business Briefings
Government and business to
One of the major functions of the
maximise business outcomes from
International Services section is the
high level visits to and from NSW.
preparation of business briefings
It is also responsible for managing
for ministerial meetings with high
the NSW Government’s international
level international visitors. In 2004-
relationships, including Sister-State
2005, 100 briefings involving 50
Relationships and Memoranda of
countries were prepared.
Understanding with foreign
governments and agencies.
35
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
International Offices The Tokyo Representative played a In collaboration with the Australian
key support role for seven major High Commission, the London
Tokyo events during “Sydney Week” at Office also promoted 13 NSW
With the expiry of the Australian the Aichi World Expo 2005. companies from the food and
Business Centre’s lease in Tokyo, the beverage sector at a specially
London convened event in Australia House
Department’s Tokyo Representative
relocated to new premises in The NSW Government Trade and in May 2005.
October 2004. Investment Office in London assisted
61 NSW companies looking to
The Representative assisted 24
export to the European Union
companies interested in exporting
market. Of these, 26 were new
their goods and services to Japan.
exporters to this market.
Of these, 15 were new to the
Japanese market. The Office worked closely with
Austrade in assisting several
The Representative also co-ordinated
companies to participate in a variety
a visit to Japan by a group of
of trade exhibitions, including the
automotive transmission companies
Speciality and Fine Food Fair in
in December 2004 and managed
London in September 2004, the
the participation by eight NSW
Harvey Nichols ‘Taste Australia’
companies in “Foodex”, the 30th
promotion in September 2004, and
International Food and Beverage
the Spring Gift Fair held in
Exhibition in Tokyo in March 2005.
Birmingham in 2005.
Case Study
Norco
Norco is a 109 year old dairy co- Brian Tarlinton, manager contract Norco is on track to build its export
operative located on the far north manufacturing and business business, with the organisation
coast of NSW with 237 farmer development, in Norco’s ice currently supplying its products into
shareholders. The organisation is cream business unit. Malaysia, Papua New Guinea,
one of the largest employers in the “The DSRD trade missions program Germany, Hong Kong, Southern
region, with over 250 full-time and has been a vital tool in the process China, and Japan. It is in discussions
part-time staff. of first investigating the potential of with companies in northern China,
Norco’s main interests lie with its ice a target market and then developing the Philippines and Taiwan, with
cream business unit. This unit has the local relationships needed to strong prospects for business
developed into one the largest establish business operations” throughout the Middle East.
manufacturers of ice cream in he said. “The trade missions program has
Australia and, with the strategic and In just two years, Norco has been critical to our export strategy,
practical assistance of the participated in six trade missions particularly in Asia where ‘cold
Department of State and Regional with the Department, visiting Taiwan, calling’ is useless and you need the
Development, the company is Japan (where it has established a introductions of a respected
extending its ice cream business into contract manufacturing partnership), organization such as DSRD,” says
key export markets. South Korea, Hong Kong and Brian Tarlinton. As a result of this
“Our prospects for continued growth southern China (following which, program, the organization expects
were being threatened by product it established a contract to export sales to grow to at least 20
saturation in the domestic market manufacture premium ice cream per cent of total turnover within
and so we embarked on an exports for a Hong Kong company), Dubai the next five years.
strategy, targeting Northern Asia. If (which resulted in it appointing a
successful, this would allow peak consolidated distributor for its
production year-round by taking branded ice cream products) and
advantage of the opposing peak northern China.
season in each hemisphere,” says
8
Regional Development Division
The Regional Development Division For community and regional In addition, the Department works
delivers programs and services development, priority is given to with regional communities that have
designed to recruit new business building the capacity of regional been adversely impacted by major
investment, help businesses grow, local government and business business closures due to structural
assist communities to build capacity organisations to deal with existing adjustment. Continued industry
to attract investment and jobs and to and prospective business. restructuring in vulnerable sectors
raise the profile of regional New such as meat processing, textiles,
South Wales as a business location. Investment and Industry clothing and footwear and
A number of regional communities Restructuring Initiatives automotive components has a
have experienced difficult times due disproportionate negative impact on
to drought and major industry Through business investment regional towns. These restructuring
restructuring. At the same time, programs, the Department looks pressures have been exacerbated by
other areas are showing significant to secure new investment from severe and prolonged drought in
economic growth, which is driven by businesses contemplating much of regional New South Wales.
new or expanding businesses. establishment or expansion in Industry restructuring initiatives
Program and strategic responses are regional New South Wales. The through the Regional Economic
delivered to rejuvenate or build on Regional Business Development Transition Scheme and the Business
growth prospects which translate Scheme, Hunter Advantage Fund Drought Program aim to attract new
into investment and sustainable jobs and Illawarra Advantage Fund are investment and sustainable jobs in
for regional communities. regional programs designed to regions impacted by structural
secure new investment. adjustment and/or drought.
To assist business development in
regional New South Wales, the focus This year, the Department’s business
is on harnessing business investment programs and services
opportunities and/or developing facilitated 110 investment projects in
solutions to overcome impediments regional NSW. These projects
to an individual business project represented capital investment of
proceeding. The Department’s $773 million and are expected to
programs and services provide a create or retain 3,096 jobs over the
“tool box” from which business level life of the projects.
solutions can be developed.
37
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Regional Business Development Examples of projects supported Regional Economic Transition
Scheme under the Fund in 2004-2005 Scheme
The Regional Business Development include: This Scheme addresses the adverse
Scheme encourages regional growth – relocation and expansion of an impacts of structural adjustment in
by attracting firms from domestic electrical supply and regional communities by assisting
and offshore locations to start-up, infrastructure business by to develop more diverse regional
expand in or relocate to regional Powerserve at Thornton with economies and attract new
New South Wales. Assistance investment of $4.03 million investment and sustainable jobs.
through the Regional Business and creation of 36 jobs There are 22 locations covered by
Development Scheme is provided – opening by Invitrogen Aust Pty the Scheme and examples of projects
by a range of facilitation services. Ltd of its $3.4 million world undertaken in 2004-2005 include:
Examples of projects assisted in class biotechnology production – relocation from Sydney to
2004-2005 include: laboratory, creating three new Goulburn of the Police
– relocation and establishment of jobs. The laboratory produces Department Employees’ Credit
a leading edge greenhouse for bovine serum for use in medical Union Head Office and IT
the production of hydroponic research and sources its functions. Investment of $1.7
tomatoes in Guyra. The project materials from NSW million and up to 18 new jobs
was undertaken by the Costa regional abattoirs.
– construction of Central West
Group of Companies and
Illawarra Advantage Fund Livestock Exchange near Forbes
represents an investment of
The Illawarra Advantage Fund helps to replace the existing saleyard
$14.4 million and almost 50 jobs
offset potential cost barriers for facility. Investment of $7.6
in its first stage and has the
eligible businesses considering million with the creation of
potential to make Guyra a leader
establishing or expanding into eight new jobs and retention
in horticultural development
the Illawarra region. of four jobs.
throughout the region. (See Case
Study at the end of this section.)Examples of projects assisted under Industry Restructuring
– Interlloy Pty Ltd establishment of the Fund in 2004-2005 include:
a facility for the manufacture of
Business Initiatives
– expansion of Rynarp’s frozen
specialist steel products based and dry goods facility at Nowra Meat Industry Restructuring
at the Albury Airport estate which represents an investment Program
with an investment of $2 million of $910,000 and an estimated The program concluded its five year
and 16 jobs. 13 new jobs over five years term in 2004-2005. This initiative
Hunter Advantage Fund – support for the expansion of the was designed to assist the meat
The Hunter Advantage Fund is Illawarra Regional Airport at processing industry cope with
designed to attract new investment Albion Park, representing an structural change. Abattoirs are
and jobs to the Lower Hunter region investment of $2.1 million and major employers in many regional
including the Newcastle, Lake the creation of up to ten jobs towns and the aim was to develop a
Macquarie, Port Stephens, Maitland – assistance to Sea-slip more sustainable meat processing
and Cessnock local government areas Manufacturing Pty Ltd for the sector and ease the impact of
and encourages diversification of establishment of a marine rationalisation on local economies.
these local economies. manufacturing facility at The key components of the program
The Fund covers both new projects Keirville in the Illawarra with were strategic business reviews,
and expansion of existing businesses. an investment of $2.6 million value-adding investment, and
Each project is considered on its and 22 jobs. improving Occupational Health and
merits and assistance is linked to Safety performance. During the year,
achievements of employment and the program emphasised progression
capital investment milestones. from strategic business reviews to
more value-adding projects in
addition to innovative Occupational
Health and Safety projects to help
reduce workplace injuries, including:
– value-added projects with a Business Growth – a Showcase of the gourmet food
total investment value of products from Bellata Gold, a
$28.2 million were assisted, An important focus for activities family owned company from
resulting in the generation of in regional New South Wales, is Bellata in North West NSW. The
an estimated 600 equivalent the delivery of programs and Company reported up to 40 per
full-time jobs. Two projects services which enhance the cent extra export sales and is
developed systems for producing competitiveness and growth of expected to sell up to $500,000
retail-ready packaging for existing enterprises. The regional worth of extra products in the
major supermarkets office network delivers the full suite next two years as a direct result
– Occupational Health and Safety of small business programs of this event.
(OH&S) performance administered by the Department. The program assisted regional firms
improvement projects amounted In addition, the Department delivers to showcase their capabilities at
to $3.3 million in investment specific programs to assist the three key trade shows. This included
by abattoirs, including a robotic growth of regional enterprises. 34 regional firms being showcased
saw system that reduces risk of These include the New Market at the Wine Australia event in Sydney
injury to workers Expansion Program, Travelling Experts in October 2004, 12 regional firms
– The National Meat Industry Program and a range of business at the Fine Food Fair in Melbourne in
Training Council (MINTRAC) was seminars and workshops. September 2004 and six regional
commissioned to deliver training In 2004-2005, 266 regional firms at the Avalon Air Show in
in the fields of meat inspection, businesses were assisted by the March 2005.
professional development and Department and 116 business “Travelling Experts” Seminars
OH&S. Three hundred and ninety workshops were conducted and
attended by 4,083 people. These seminars provide regional
eight meat industry employees
businesses with access to expert
subsequently participated in
New Market Expansion Program speakers on current business issues.
this training to overcome a
This program helps companies This year, 16 travelling expert
shortage of workers, particularly
pursue new markets beyond their seminars were conducted with
in skilled areas.
normal horizons by providing attendance of almost 950 people
Business Drought Assistance assistance for targeted marketing of across regional New South Wales.
Program new opportunities. During the year, Examples of topics included regional
The Business Drought Assistance 127 companies were assisted to sustainability, marketing and
Program has two components. enter new markets and the program technology, management skills
It includes payroll tax relief for helped generate an estimated 15 per development, and business
regional firms to retain skilled cent increase in average sales development skills for young people.
workers for the duration of the turnover for firms, compared to a Business Seminars
drought, and assistance to small- year ago. Examples of projects in
medium enterprises impacted by 2004-2005 include: During the year, 116 workshops with
drought to access independent credit a total of 4,083 participants were
– a targeted marketing campaign conducted on topics to assist
management expertise or to help for Dalbroi Family Wines Pty Ltd,
diversify their operations. regional businesses to grow and
located in the Riverina to establish become more competitive.
Activity included: its brand in new overseas markets
– under the Small Business of the USA, United Kingdom, Regional and Community
Drought Assistance Program, European Union, China, and
other parts of Asia Economic Development
124 offers of assistance were
made to businesses in the three – a new market entry strategy for The Department offers a range
financial years to 2004-2005 value added macadamia products of programs designed to help
– since its inception, the Business of St Helena-based Brookfarm Pty communities build economic capacity
Drought Assistance Program has Ltd. The strategy exposed the to harness business opportunities
made 64 offers of payroll tax Company’s product range to and to be better placed to respond
assistance and the program has targeted distributors as well as to business needs. Programs
helped retain over 1,200 jobs. the gourmet food retail and delivered at both the regional
service sectors. The assistance has and local level also provide an
helped the company to generate important base for the Department
sales leads and has provided to engage with key partners such
important market information as local government, business
and feedback associations and regional
development organisations to
leverage business opportunities.
39
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
The Main Street/Small Towns and – assistance towards a business The Conference attracted over 150
Towns and Villages Futures development coordinator for the community, business and local
Programs, are the main tools for Northern Illawarra area to assist government representatives. The
assisting community economic the business community in conference featured leading experts
development. During the year, seizing economic opportunities and practitioners in regional
74 regional communities were from the re-opening of Lawrence community economic development.
assisted and the programs helped Hargrave Drive. Local regional fora were also held
communities to create 81 jobs and in the Riverina/Murray,
to leverage $5.1 million in project
Towns and Villages Futures
Program Southeast/Illawarra, Northern and
funds. In addition, 77 community Hunter/Central Coast regions. In
economic development workshops The aim of this program is to assist
total, 300 community representatives
were conducted with 2,751 people economic growth and job creation
attended these fora.
attending from across regional in regional communities with a
New South Wales. population of 2,500 or less. Help is Developing Regional Resources
available for the development of new Program
Main Street/Small Towns products or services, locating new This program provides support
Program markets for existing products and for local or regional organisations,
The Main Street/Small Towns services, and tourism development including development agencies
Program helps communities with a activities. During the year, 32 projects
and alliances of firms, to
population over 1,500 to take a were offered assistance towards investigate economic opportunities
strategic and proactive approach activities including: and pursue innovative approaches
to their economic development. – marketing and promotion of the to economic development.
During the year, 47 projects were 2005 Barmedman Tractor Pull The program aims to develop best
offered assistance in 42 different
– the conducting of Batlow practice, innovative methods,
regional communities towards
2005 Apple Blossom Festival and techniques and approaches in the
activities, including:
other events aimed at increasing field of local and regional
– the inaugural Inverell-On-Display the profile of the town, local development which strengthen
expo designed to showcase products (fresh fruit and plant regional economies through value-
Inverell’s industry, agriculture, adding resources and diversifying
nurseries) and natural attractions
retail and commercial products. (pristine mountain environment). from the existing economic base.
Inverell Shire Council was offered Funding was to Tumut Shire Examples of projects assisted in
funding toward project Council for employment of 2004-2005 include:
management, promotion and an events coordinator for – support to employ a project
marketing of the event. The Batlow and toward event coordinator and develop a
initiative targeted businesses, marketing materials business plan for the
visitors and industry people
– the development of a business establishment of a Visual Arts
interested in moving to the area
and marketing plan to Network in the Northern Rivers.
– a web based network commercialise Coramba Sports There are 348 members in the
development tool for Gloucester Ground and funding to promote Visual Arts Network
Shire Council to link businesses the January 2005 Rugby – assistance to the Native
and provide them with a League’s 7s Tournament at Fish Growers Co-operative to
communication portal and this sports ground. undertake a feasibility study
marketing avenue. This initiative
Community Economic and business plan for
will create opportunities for joint
Development Conference redevelopment of fish processing
purchasing, marketing, project
facilities in the Gloucester area
capability and product sale The Department hosts a regular State
of the Hunter region.
cooperation. The project will Community Economic Development
assist the growth of local Conference to share knowledge and
clusters of tourism operators, to explore the latest developments in
agricultural producers, food promoting sustainable economic
preparation businesses, growth in regional communities.
engineering firms and landscape In 2004, the Community Economic
and garden suppliers Development Conference was held in
Gosford from 17–19 October 2004.
Regional Development Boards Regional Development – conducted the Building Regional
and Regional Development Advisory Council Towns Tour to Scone, Forbes and
Board Innovation Program The NSW Regional Development Merriwa to showcase potential
The Department supports a network Advisory Council was established residential and commercial
of 13 Regional Development Boards to provide advice to the Minister property development
across the State. These Boards for Regional Development on opportunities to property
provide a strategic framework for regional development issues in developers. This has resulted
economic growth and play a critical New South Wales. in $600,000 in sales to date
role in local collaborative efforts to The Council brings together the – held the inaugural NSW Regional
attract business investment that will Chairs of the State’s thirteen Food Tour in May 2005, which
deliver sustainable long-term Regional Development Boards. took 16 food buyers and
employment and regional prosperity. industry experts to the
The advisory role of the Council
Through the Regional Development Hume/Murray, Riverina and
covers matters that relate to:
Board Innovation Program, Regional Central West regions to
Development Boards are assisted to – promoting economic and showcase regional food
pursue economic development employment growth in regional capabilities and to match
opportunities relevant to their New South Wales potential business opportunities
respective regions. – assisting regional communities to with regional producers. The
During the year, 33 board capitalise on their regional Food Tour provided 144
projects were assisted. Examples strengths, to broaden and potential business opportunities
of projects include: reposition the industry base of with sales expected to reach
regions and develop new $275,000 six months after
– the Central West Regional products and new markets the tour
Development Board managed
a project to facilitate the – developing regional or local – sponsorship of the inaugural
development of an solutions for regional or local Country Week Expo in October
engineering and trade business development problems 2004 to showcase to
related industry network – identifying opportunities to fill Sydneysiders the opportunities
gaps left by the market system. and benefits of relocation to
– the Murray Regional regional areas. The Expo
Development Board received Promoting Regional attracted 7,500 visitors
assistance for a broadband New South Wales
demand aggregation project – developed marketing collateral
The Department runs a series of for the Regional Distribution
which focussed on finding initiatives to promote regional
ways of getting state of the Centres Attraction Strategy to
New South Wales as a viable help regional centres promote
art technology to smaller centres destination for business activities.
in the region their natural advantages as
Some key initiatives during warehousing and distribution
– the Far Western Regional 2004-2005 included: hubs. The collateral for the
Development Board is piloting an – conducted the Central West Film Goulburn Logistics and
initiative to engage young Tour in November 2004 which Distribution Centre Attraction
people and their business took 13 film industry Strategy was released in
community in creating regionally representatives to the Central February 2005.
designed and sustainable West to showcase potential
business and employment filming locations for film and
opportunities for young people. television. This has helped secure
a NSW production spend of
$564,622, regional spend of
almost $22,000 and four
temporary regional jobs
Regional Development Board Websites 41
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Regional Development Board Website
Case Study
Costa’s Pty Ltd t/a Costa Group of Companies – Guyra, NSW Northern Tablelands
The Costa Group of Companies are The Costa Group, Australia’s largest Truss tomatoes (Tomatoes on the
investing a total of $26 million fresh produce company based in Vine) have established themselves in
($14.4 million – stage one) in Guyra Victoria, chose Guyra for its cool the European and US markets in the
to grow truss tomatoes in an all- climate and high amount of daylight relatively very short period of seven
glass building which will be the to reduce production times, to ten years. The initial response to
largest and most technologically glasshouse management problems truss tomatoes in Australia indicates
advanced glasshouse in Australia. and risk of crop disease. that the same level of up-take will
The ten hectare greenhouse will Another major factor was the occur here as has happen in Europe
grow truss tomatoes to be marketed support and encouragement of and the US.
throughout Australia by the Top of Guyra Council and the community in The Department is providing support
the Range Tomatoes network under bringing the project to fruition. ‘Top for the project through its Regional
the ‘Blush’ brand. of the Range’ tomatoes have the Business Development Scheme.
Guyra, with a population of 2,200, potential to make Guyra a leader
will benefit greatly from the in horticultural development.
investment. The first stage of the The project is moving ahead rapidly
project will provide employment for with the first five hectares planted
about 50 staff and the next stage with 155,000 tomato plants in June
will bring total employment up to 2005. More than 2.5 million kilos of
120 staff. The project also brings tomatoes will be shipped from the
considerable advantages in tomato farm within the first year of
secondary employment throughout operation. Presently the tomatoes
the town and the potential for will be sold to the major
support industries. supermarket chains within Australia.
9
Policy and Resources Division
The Department’s Policy and – providing corporate services The Unit ensures that economic and
Resources Division develops strategic to the Department. regional development issues are
policy directions and advice for The Division’s corporate service incorporated into government
promoting economic development responsibilities include financial decision making at the local, State,
in metropolitan and regional management, human resources and and Federal Government level. The
New South Wales. organisational development, Policy Unit works closely with other
The Division’s responsibilities include: information technology, legal NSW Government agencies, Federal,
counsel, business governance State and Territory Governments, as
– supporting the NSW
and property administration. well as Local Government and a
Government by providing policy
range of business and industry
advice on strategic approaches
Policy Unit groups to ensure NSW business
and initiatives to promote the
interests are promoted.
development of NSW industries,
Policy Advice During 2004-2005, the Policy Unit
regions and small business
The Division’s Policy Unit is contributed to policy development
– providing information to
responsible for the provision of on a number of significant issues,
industry and government on
high level policy advice to the being particularly active in the areas
the State’s economy and its
Department’s two Ministers on of trade, regional aviation and
competitive strength as an
economic development, trade, regional development and planning.
investment location
infrastructure, skills shortages, During the year, the Unit:
– informing the NSW Government technology and regional
about the impact of major – worked closely with the
development issues that impact on
investment projects on the Commonwealth and State and
New South Wales. Its key role is to
economy, and supports other Territory Governments on trade
develop strategic policy directions to
divisions of the Department initiatives to enhance market
provide a cost-effective and business
with economic advice and access for NSW exporters in
friendly environment for doing
investment analysis overseas markets. This included
business and investing in the State.
contribution to Australia’s
– benchmarking the performance
position on Free Trade
of the NSW economy, and
Agreement negotiations with the
advises on developments in its
United States, Singapore,
business climate
Thailand, Malaysia, Asean and
the United Arab Emirates
43
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– completed a number of As part of its core activities, the Economic Statistics
submissions to State and Policy Unit continued to provide: The Economic Statistics Section is
Commonwealth reviews – accurate and timely policy advice responsible for providing advice and
including the Review of the for the Department’s two statistics on investment, employment
Export Market Development Ministers on economic and and trade to the Department’s two
Grant (EMDG) Scheme regional development issues Ministers, the Department, and other
– coordinated Department’s – secretariat support for Ministerial NSW Government agencies.
hosting of the State and Territory attendance at Commonwealth The Section also provides a range of
Industry CEO Meeting in Sydney and State meetings of Industry information to the public, primarily
and several industry briefings on Ministers and Trade Ministers through publications and the
Free Trade Agreements Department’s websites. This
– timely management of
– participated in a range of high Freedom of Information information attests to the
level interdepartmental and requests, Cabinet Minute advantages of Sydney and
intergovernmental working responses and legislative issues. New South Wales as a business
groups including the NSW and investment location, compared
Government Interagency Economic Evaluation and with other locations in Australia
Working Group on Mobile and overseas.
Telecommunications,
Statistics Unit
The New South Wales
Infrastructure, the Economic Evaluation Competitiveness Report 2005,
Manufacturing Consultative an important promotional report,
The Economic Evaluation Section
Councils, the National detailing the State’s competitive
provides financial and economic
Investment Research Group and
analysis of business and development advantages was completed
the Best Industrial Relations during the reporting period. An
projects. These assessments assist
for NSW Interdepartmental
decision making processes within the updated version of the Report is
Steering Committee also published on the
Department of State and Regional
– the Working Group on the Development and within other State Department’s website.
Review of the Retail Leases Act government departments.
1994 consulted on a wide range Finance and Administrative
During the reporting period, 78 Overview
of matters connected with the
detailed evaluations were prepared. The Finance Unit is responsible
legislative review of the Act.
The majority of these assessed the for the management of the
This resulted in a considerable
financial viability and economic Department’s financial and
number of recommendations
impact of proposed projects. budgetary processes, including:
being made on changes to
They provide an assessment of a
the Act – financial and budgetary
project’s potential to generate
– the Division also shepherded management
employment and growth in the
through the two amendments State, and where relevant, within – co-ordination and review of
made to the Act as a result of specific regions of NSW. financial statements and
the National Competition Policy reporting requirements
Projects covered included
Review that had been conducted – strategic financial advice
manufacturing, agriculture, finance
prior to the legislative review.
and business services, infrastructure, – co-ordination of the internal
mining, films, major conferences audit function across the
and special events. Department
The Section also prepares – management of the Service
background briefings on issues Partnership agreement with
affecting business and infrastructure the Department’s contracted
in NSW, such as electricity financial services provider.
generation, and taxation.
The Unit also has responsibility for – The Privacy Management Plan The Department continued to ensure
the Department’s property and and Privacy and Spam What do I the protection of privacy of
administrative requirements, have to do – Guidelines for Staff individuals and was not required
including: – Guidelines for Engaging and to undertake any internal reviews
– strategic accommodation advice Using Consultants and of the conduct of any officers
Contractors concerning privacy matters, during
– property management
the reporting year.
– lease co-ordination and – The Protected Disclosures Policy
negotiation and Procedures
Human Resources
– project assistance – Use of Communication Devices A
Do’s and Don’ts Guide The Human Resources Unit is
– liaison with the Department’s
– The Protocol for Acceptable responsible for developing human
contracted service provider.
use of the Internet and resources policies for NSW
During the year, the Property Branch Department of State and Regional
Electronic Mail
relocated the Central Coast Regional Development staff, as well as
office from the Gosford CBD to the – The Communication Devices
providing support and guidance to
redeveloped Mount Penang precincts Policy and Guidelines for
managers and staff on all human
at Kariong. This relocation also the Department
resource issues.
realised an annual rental saving – The Risk Management Plan
Human resource issues cover
of $46,000. and Policy.
conditions of employment, training,
New leases were negotiated at three Privacy and Personal equity, occupational health and
existing offices and three lease Information safety, workers compensation and
options were exercised. rehabilitation, grievance resolution,
During the year, the Department
The Tokyo office was relocated from completed its bi-annual privacy organisational change and
expensive office space to a serviced compliance review. The review performance management, job
office environment realising an included an audit of processes evaluation and establishment.
annual saving of approximately used by the Department to collect, The unit provides personnel and
$200,000. store, use and dispose of personal payroll services to all staff through
A long term lease over the information. The Department’s the Department’s outsourced
Governments previous Privacy Resource Officers undertook provider, the Central Corporate
accommodation (King William Street, training to enable them to Services Unit (CCSU).
London) was surrendered. implement future privacy More specific details of human
In accordance with Premier’s management initiatives at resource activities and achievements
Memorandum 2004-4 Greenhouse local levels. for the year are listed separately in
Performance of Government Office The Department completed the the appendices.
Buildings and Rental Properties, revision of its privacy management Major achievements:
the Property Branch achieved the plan which is made available to all – developed and implemented a
first milestone by achieving a 3.5 staff internally via the Department’s six module Management
star Australian Building intranet site and publicly through Development Program for senior
Greenhouse rating at the its main web site managers. Modules include
Grosvenor Place premises. www.business.nsw.gov.au. Ethics, Values and Accountability,
In the coming year, the Department People Management, Effective
Business Governance Unit will continue to provide ongoing Workplace Management
training for staff at two levels: and Strategic Planning.
The Business Governance Unit Participants have rated the
develops and manages the – introductory sessions for
new staff program very highly
Department’s governance framework
in alignment with the Department’s – refresher sessions for existing – successfully developed and
corporate vision and purpose. staff including the additional implemented a Voluntary
The Unit provides support to requirements under the Health Redundancy program across
the Department’s Audit and Records Privacy Information the Department
Review Committee. Act 2002. – supported the development of a
Major achievements during the ‘Young Professionals’ group in
reporting year included the review the Department
and publication of the following
policies and guidelines:
45
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– managed ‘Health Week’ in Information Management – enhanced the Department’s
conjunction with the PSA and Intranet and systems
OH&S Committee. Activities During the year, nearly 90 per cent management software (including
included seminars on Workplace of the Department’s correspondence leave management, activity
Bullying, Caring for your Eyes, with its clients was conducted logging and software
Men’s Health and Exercise and electronically. Sessions on all distribution applications)
You. Activities were replicated in Department websites exceeded – further integrated and enhanced
regional offices, including the 1.3 million, and a wide variety of the Department’s Core Client
inaugural DSRD Fun Run critical information through the Relationship database structure
– sponsored a flu vaccination Department’s intranet to enhance (containing Investment, Small
program for all staff staff productivity was maintained. Business, and Regional
– strengthened the Department’s The functions of the Information Development Divisions’ client
Graduate Program through a Management and Technology Unit data) and built upgraded and
proactive recruitment campaign, include records management, supported Inventory, HR and
formalised induction program information research services and other related databases
and a mentoring program IT (Web and Data) services. – updated the Information
– ran Ergonomics training for During 2004-2005, the Unit: Management and Technology
all staff, including a focus on – continued to manage (IM&T) Strategic Plan,
safe driving principles for thousands of document, Department’s Database Strategic
regional staff record and file movements Plan and Records Management
documentation, to help ensure
– developed and implemented a – continued to support the
Departmental best practice in
strengthened training calendar Department’s information
information management
including programs on: policy management systems and
writing, writing skills, technology infrastructure, – continued to provide extensive
management skills, effective hardware and software staff training to improve staff
presentation skills, legal skills and security.
– introduced a common Content
awareness and diagnostic skills Management Server and Web
for departmental staff. Host for the Department’s
nineteen websites and migrated
the Department’s largest website
(Small business:
www.smallbiz.nsw.gov.au) and
newest website (Australian
technology Showcase:
www.ats.business.gov.au) to the
new Server and Host
10
Business Strategy Unit, Communications Unit,
Executive Support, Retail Tenancy Unit
Business Strategy Unit – consolidating the Results and – finalised a package of 57 reforms
Services Plan to meet Treasury to the Retail Leases Act 1994.
The Business Strategy Unit is a small requirements and working Developed in consultation with
unit which was established during across the Department to the retail leasing industry, the
2004-2005 to work on projects enhance the process of data proposed reforms will make it
that enhance the efficiency and collection to achieve consistent easier for retailers and landlords
effectiveness of the Department’s use of indicators to do business in New South
programs and service, and to – providing advice to the Director Wales by cutting red tape and
respond to challenges to the General and the senior introducing clearer requirements
organisation that create impact management team on emerging for retail leasing
across its divisions. industry opportunities for NSW – developed for publication an
Core activities of the Business – managing the program of industry profile of the financial
Strategy Unit are: the Department’s Audit and services sector
– oversighting the Department’s Review Committee. – undertook four program reviews
performance management Highlights during (Australian Technology
system, which includes 2004-2005 included: Showcase, Film and Television
developing and implementing Attraction Fund, Towns and
– completed client surveys of over
consistent measurement tools Villages Futures Program,
500 business clients of the
and sourcing market and Agribusiness Alternatives).
Department, and a statistical
client feedback During 2005-2006, as well as
study and survey of international
– managing a system of regular financial institutions in Sydney continuing to promote excellence in
review of key programs to program design and business
– finalised the Department’s
ensure contemporary and processes, the Unit will work across
investment assistance procedures
effective assistance approaches the Department to create industry
handbooks
are employed sector publications that profile the
– co-ordinated the Department’s State’s competitive strengths.
Results and Services Plan
with Treasury
47
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Communications Unit The Communications Unit prepared Significant international visitors to
nearly 900 media releases providing the centre included the Australia-
The Department’s Communications State-wide media exposure for the India Chamber of Commerce;
Unit is responsible for developing Department’s activities and Shanghai Economic Management
and implementing corporate successes. Marketing collateral Group; UAE Ministry of Economy
marketing and media strategies included 68 publications and three and Planning; Federation of Indian
and materials to promote Sydney interactive CD-ROMs. Chambers of Commerce and
and New South Wales (NSW) as Media and marketing support Industry; Alabama Development
leading business destinations in provided by the Unit for a range of Office; South Africa Electrotechnical
the Asia Pacific. Departmental projects and activities Export Council; Italian Chamber
The Unit pursued a busy program during the year included: of Commerce and Industry;
in 2004-2005 to support the California State Senate; Italian
– publication of the Department’s
investment and business aims of Chamber of Commerce and Industry;
monthly Business Update
the Department, including the Vietnam Chamber of Commerce;
electronic newsletter and
provision of strategic advice and European Australian Business
Business First and Regional First
assistance to all divisions on media, Council; Australian British Chamber
magazines
marketing, advertising, events and of Commerce; Swedish Trade
– the Department’s first ever Commission.
sponsorship issues.
Home-Based Business Week
The Unit provided media support for The Country Embassy provides an
held in May 2005
the securing of a number of major important Sydney CBD base for NSW
– the Premier’s NSW Exporter of regional clients to promote their
investment projects and industry
the Year Awards, of which the products, services and capabilities.
events as well as support for the
Department is a lead sponsor
Department’s small business Regional event highlights included
development programs and regional – media and marketing planning the launch of Countrystore.org.au,
development initiatives. for the Aichi World Expo in an online sales platform for country
Japan, from May 27 to June 3 businesses; the launch of Country
A series of investment brochures was
produced targeting high-profile – Small Business September, a Week; the launch of a NSW
industries including financial services, month-long celebration of the Department of Agriculture Workshop
international contact centres, diversity and contribution of for NSW farmers; and events by the
information and communications small firms across the State, NSW Wine Association, Orange Food
technology, and manufacturing. The was the media highlight for and Wine Regional Tourism Group,
Unit also assisted in the production September 2004 and included and Country Mayors’ Association.
of the NSW Competitiveness Report more than 360 events attracting
Business Briefings Program
2005, a high-end promotional significant media coverage.
publication that underlines the More than 2,000 visitors from
Trade and Investment Centre international delegations attended
business strengths of Sydney and and Country Embassy
NSW, comparing them with business the popular Business Briefings
locations in the Asia Pacific, North The Trade and Investment Centre Program on business opportunities
America and Europe. and Country Embassy, on Level 44 of in NSW.
Grosvenor Place, Sydney, continued Business briefings highlights included
The Unit actively participated in to rank among the city’s most
planning for The Forbes Global CEO Energy Solutions from Ireland, who
popular business networking venues. were investigating the possible
Conference, to be held in Sydney,
August 2005. A series of full page During 2004-2005, almost 35,000 establishment of operations in NSW;
advertisements in Forbes magazines people visited the facilities including a Korean coal delegation led by the
in the US, Europe and Asia ran 5,000 international business people. Korean Ministry of Commerce,
throughout the year to promote A total of 2,000 business events Industry and Energy investigating
Sydney and NSW as an investment were held that promoted Sydney and investment in NSW coal mining
destination and encourage NSW’s strengths as an investment operations; and senior executives
participation in the conference. In and business location. from Rao GazProm, Russia’ s largest
addition, two promotional events in company, inquiring about potential
the US were held with Steve Forbes gas investment opportunities.
to promote the conference to key
business audiences.
Executive Support Retail Tenancy Unit
The Department’s Executive Support The Retail Tenancy Unit services
Unit provides high level support to metropolitan and regional New
the Director General and senior South Wales by providing timely and
management, manages ministerial cost effective dispute resolution to
and departmental communications parties in dispute that allows them
and correspondence, and liaises with to avoid expensive litigation.
Ministers’ Offices. The Retail Leases Act requires parties
A total of 2,890 correspondence and in dispute to attempt mediation prior
Ministerial registrations were to the matter being listed in either
managed by the Unit during the the Administrative Decisions Tribunal
reporting year. This has remained or the court system. This results in
consistent with previous years. the parties quickly and cost
In the reporting period, the Unit: effectively resolving their dispute so
they can get back to the business of
– maintained close liaison with
being in business.
Communications Unit on
marketing, public relations The advice service endeavours to
issues, media promotions and assist people avoid disputes with
services to Ministers’ Offices information regarding industry
practice, negotiation skills, option
– maintained regular updates of
generation, advice relating to the Act
achievements, job creation, and
and dispute resolution procedures.
investment data
By assisting people to explore non
– continued its involvement in legal remedies the Unit is able to
corporate planning matters help them avoid having to spend
and the filling of essential time and money on a problem.
staff vacancies
During the reporting period, the Unit
– monitored and supported undertook 304 formal mediations
parliamentary proceedings and 461 informal mediations. The
– managed business Unit also responded to 7,148
website inquiries enquiries. The Unit continues to deal
– contributed to the Department’s with a wide range of participants in
preparations for the Forbes the retail leasing industry. Rents,
Global CEO Conference to be misrepresentations and the condition
held in August 2005. of properties continue to make up
the largest number of applications.
Opportunities were once again
provided for staff in other Divisions
of the Department to be seconded to
the Unit to gain experience within
the corporate environment.
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
49
an
sc
to
Department of State and Regional Development
Statement by the Chief Executive Officer
51
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Department of State and Regional Development
Financial Statements
Expenses
Operating expenses
Employee related expenses 2(a) 28,681 26,635 26,236
Other operating expenses 2(b) 16,495 16,348 18,985
Maintenance expenses 2(c) 252 219 226
Depreciation and amortisation expenses 2(d) 1,600 1,120 1,167
Grants and subsidies 2(e) 19,139 24,373 17,676
Other expenses 2(f) 24,576 30,937 25,306
Total Expenses 90,743 99,632 89,596
Less:
Retained revenue
Sale of goods and services 3(a) 149 538 68
Investment income 3(b) 877 600 686
Grants and contributions 3(c) 586 300 818
Other revenue 3(d) 591 214 753
Total Retained Revenue 2,203 1,652 2,325
Gain/(loss) on disposal of non-current assets 4 (4) – (17)
Net Cost of Services 21 88,544 97,980 87,288
Government Contributions
Recurrent appropriations (net of transfer payments) 5 83,859 93,806 81,403
Capital appropriations (net of transfer payments) 5 110 110 110
Acceptance by the Crown Entity of employee benefits
and other liabilities 6 3,281 2,842 3,049
Total Government Contributions 87,250 96,758 84,562
SURPLUS/(DEFICIT) FOR THE YEAR FROM ORDINARY ACTIVITIES (1,294) (1,222) (2,726)
SURPLUS/(DEFICIT) FOR THE YEAR (1,294) (1,222) (2,726)
53
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Statement of Financial Position
as at 30 June 2005
ASSETS
Current Assets
Cash 9 19,816 31,156 31,368
Receivables 10 3,773 3,717 3,717
Other current assets 12 1,280 1,579 1,579
Total Current Assets 24,869 36,452 36,664
Non-Current Assets
Receivables 10 – – 130
Plant and Equipment 11 2,484 2,851 3,861
Total Non-Current Assets 2,484 2,851 3,991
Total Assets 27,353 39,303 40,655
Current Liabilities
Payables 13 2,580 9,630 9,630
Provisions 14 2,536 2,604 2,604
Other current liabilities 15 141 5,072 5,072
Total Current Liabilities 5,257 17,306 17,306
Non-Current Liabilities
Provisions 14 563 392 392
Other non current liabilities 15 – – 130
Total Non-Current Liabilities 563 392 522
Total Liabilities 5,820 17,698 17,828
Net Assets 21,533 21,605 22,827
EQUITY
Accumulated funds 16 21,533 21,605 22,827
Total Equity 21,533 21,605 22,827
Receipts
Sale of goods and services 458 538 169
Interest received 787 600 710
Other 8,146 5,614 7,457
Total Receipts 9,391 6,752 8,336
55
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Summary of Compliance with Financial Directives
for the year ended 30 June 2005
2005 2004
Expenditure/ Expenditure/ Expenditure/ Expenditure/
Net Claim on Net Claim on Net Claim on Net Claim on
Recurrent Consolidated Capital Consolidated Recurrent Consolidated Capital Consolidated
Appropriation Fund Appropriation Fund Appropriation Fund Appropriation Fund
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
ORIGINAL BUDGET
APPROPRIATION/
EXPENDITURE
Appropriation Act 106,489 89,386 110 110 100,623 90,992 110 110
s24 PF&AA – transfers
of functions between
departments – – – – 1,795 1,795 – –
106,489 89,386 110 110 102,418 92,787 110 110
OTHER APPROPRIATIONS/
EXPENDITURE
Transfers to/from another
agency (s27 of the
Appropriation Act) 457 457 – – (1,021) – – –
457 457 – – (1,021) – – –
Total Appropriations/
Expenditure/Net Claim on
Consolidated Fund
(includes transfer payments) 106,946 89,843 110 110 101,397 92,787 110 110
Amount drawn down
against Appropriation 89,843 110 97,718 110
Liability to Consolidated Fund – – 4,931 –
57
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
(ii) Long Service Leave and Superannuation (g) Accounting for the Goods and Services
The Department’s liabilities for long service leave Tax (GST)
and superannuation are assumed by the Crown Revenues, expenses and assets are recognised net of the
Entity. The Department accounts for the liability amount of GST, except where:
as having been extinguished resulting in the – the amount of GST incurred by the Department as
amount assumed being shown as part of the non- a purchaser that is not recoverable from the
monetary revenue item described as “Acceptance Australian Taxation Office is recognised as part of
by the Crown Entity of employee benefits and the cost of acquisition of an asset or as part of
other liabilities”. an item of expense.
Long service leave is measured on a present value – receivables and payables are stated with the amount
basis. The liabilities that are expected to be settled of GST included.
more than twelve months after the reporting date is
(h) Acquisitions of Assets
measured as the present value of the estimated
The cost method of accounting is used for the initial
future cash outflows to be made by employers in
recording of all acquisitions of assets controlled by
respect of services provided by employees up to the
the agency. Cost is determined as the fair value of the
reporting date. The present value method is based
assets given as consideration plus the costs incidental
on the remuneration rates on what the entity
to the acquisition.
expects to pay at each reporting date for all
employees with five or more years of service. Assets acquired at no cost, or for nominal consideration,
This means that where it is expected that employees are initially recognised as assets and revenues at their
will receive a pay rise after reportintg date, the fair value at the date of acquisition. Fair value means the
increased pay rate is used in determining the amount for which an asset could be exchanged between
employee benefit liabilities. a knowledgeable, willing buyer and a knowledgeable,
willing seller in an arm’s length transaction.
The simple factors derived by the Government
Actuary to increase the long service leave (i) Plant and Equipment
liability and related on-costs to approximate present Plant and equipment costing $5000 and above
value calculations have been used in determining individually are capitalised.
the liabilities. (j) Revaluation of Physical Non-Current Assets
The superannuation expense for the financial year As the Department does not own Land, Building or
is determined by using the formulae specified in the Infrastructure assets, it considers it not cost-efficient
Treasurer’s Directions. The expense for certain to carry out a revaluation of physical non-current
superannuation schemes (ie Basic Benefit and First assets every five years, unless it becomes aware of
State Super) is calculated as a percentage of the any material difference in the carrying amount of
employees’ salary. For other superannuation any class of assets.
schemes (ie State Superannuation Scheme and State The Department’s assets are short lived and it is
Authorities Superannuation Scheme), the expense is considered by management that the written down
calculated as a multiple of the employees’ value of its non-current assets would approximate
superannuation contributions. their fair value.
(f) Insurance As the Department is a not-for-profit entity whose
The Department’s insurance activities are conducted service potential is not related to the ability to
through the NSW Treasury Managed Fund Scheme of generate net cash flows, the recoverable amount
self insurance for Government agencies. The expense test has not been applied.
(premium) is determined by the Fund Manager based
on past experience.
Department of State and Regional Development
Financial Statements
59
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000
2. EXPENSES
(a) Employee related expenses
Salaries and wages (including recreation leave) 23,738 21,719
Superannuation 2,011 1,967
Long service leave 1,149 964
Workers compensation insurance 139 105
Payroll tax and fringe benefit tax 1,523 1,363
Payroll tax employer’s superannuation contribution 121 118
28,681 26,236
The Department charges the full cost of long service leave and the current service cost of
superannuation to operations. However, as the Department’s liability for long service leave and
superannuation is assumed by the Crown Entity, the Department accounts for the liability as
having been extinguished. This results in non-monetry revenue described as “Acceptance by
the Crown Entity of employee entitlements and other liabilities” (Refer Note: 1 (e) (ii)).
2005 2004
$’000 $’000
3. REVENUES
(a) Sale of goods and services
Retail Tenancies Disputes fees 101 30
Other 48 38
149 68
61
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000
5. APPROPRIATIONS
Recurrent appropriations
Total recurrent drawdowns from Treasury (per Summary of Compliance) 89,843 97,718
Less: Liability to Consolidated Fund (per Summary of Compliance) – 4,931
89,843 92,787
Comprising:
Recurrent appropriations (per Statement of Financial Performance) 83,859 81,403
Transfer payments (see note 7) 5,984 11,384
89,843 92,787
Capital appropriations
Total capital drawdowns from Treasury (per Summary of Compliance) 110 110
110 110
Comprising:
Capital appropriations (per Statement of Financial Performance) 110 110
Total 110 110
7. TRANSFER PAYMENTS
Small Business Development Corporation of NSW 78 34
Ministerial Corporation for Industry 5,906 11,350
5,984 11,384
Transfer payments to the Ministerial Corporation for Industry comprise amounts administered
by the Corporation relating to Assistance to Industry.
The Corporation controls the identification of recipients, the amount and timing of payments
and the conditions under which payments are made to the recipients. The Corporation draws funds
from the Department only to the extent necessary to meet current cash requirements for expenditure.
2005 2004
$’000 $’000
Reconciliations
Plant and Equipment –
2005
Carrying amount at start of year 3,861
Additions 228
Disposals (5)
Depreciation expense (1,600)
Carrying amount at end of year 2,484
63
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000
2005 2004
$’000 $’000
65
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000
Payment Schedule – –
Not later than 1 year 29,632 29,035
Later than one year and not later than five years 11,845 25,771
Total (including GST) 41,477 54,806
The total grants and subsidies commitments above include input tax credits of
$3,771,000 (30 June 2004 $4,950,000) that are expected to be recovered from the ATO.
19. CONTINGENT LIABILITIES AND CONTINGENT (c) Actual Other Expenses were less than budget by
ASSETS $6,361,000. This is primarily due to less than
The Department is not aware of any contingent liabilities budgeted expenditure in program activities including
associated with its operations. Regional Development Assistance and Biotechnology
Strategies, as a result of cash flow variations in
approved program projects and activities.
20. BUDGET REVIEW
Assets and liabilities
Net cost of services
There was minimal variation between actual and
The actual Net Cost of Services was less than budget
budgeted Net Assets at year end. Actual Total Assets
by $9,436,000. Movement in major expense
were $11,950,000 less than budget primarily due to the
categories include:
use of cash to meet liabilities associated with the
(a) Actual Employee Related Payments were greater Department’s operational and program activities. Actual
than budget by $2,046,000. This is primarily due to Total Liabilities were $11,878,000 less than budget due
a 4% salary increase effective 1 July 2004 and to less than budgeted current liatilities in the payables
termination payments associated with a voluntary and other current liabilities categories.
redundancy program in the last quarter of the
financial year. Cash flows
Actual net cash flows used in operating activities
(b) Actual Grants and Subsidies being less than budget
exceeded budget by $10,910,000. This was due to less
by $5,234,000. The decrease was primarily due to
than budgeted net cash flows from Government and
cash flow variations in the timing of approved
greater than budgeted receipts. The less than budgeted
projects under management in items including
cash flows from Government were primarily due to less
Katoomba Echo Point, Regional Headquarters Tax
than forecast appropriation required in program
Concessions and Illawarra Advantage Fund.
activities including Regional Headquarters Tax
Concessions, Illawarra Advantage Fund and Regional
Development Assistance.
Department of State and Regional Development
Financial Statements
2005 2004
$’000 $’000
21. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET COST OF SERVICES
Reconciliation of cash flows from operating activities to the net cost of services
as reported in the Statement of Financial Performance
Net cash from (used on) operating activities (11,325) 8,759
Cash flows from Government/Appropriations (80,382) (87,674)
Acceptance by the Crown Entity of employee benefits and other liabilities (1,937) (1,819)
Depreciation and amortisation (1,600) (1,167)
Decrease/(increase) in provisions (103) 44
Increase/(decrease) in prepayments and other assets (373) 158
Decrease/(increase) in payables 7,050 (5,803)
Net gain/(loss) on sale of plant and equipment (4) (17)
Decrease/(increase) in other liabilities 130 231
Net cost of services (88,544) (87,288)
67
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
The Department has determined the key areas where Department’s equity and surplus/deficit. The Department
changes in accounting policies are likely to impact the does not anticipate any material impacts on its cash
financial report. Some of these impacts arise because flows. The actual effects of the transition may differ
AEIFRS requirements are different from existing AASB from the estimated figures below because of pending
requirements (AGAAP). Other impacts are likely to arise changes to the AEIFRS, including the UIG interpretations
from options in AEIFRS. To ensure consistency at the and / or emerging accepted practice in their
whole of government level, NSW Treasury has advised interpretation and application. The Department’s
agencies of options it is likely to mandate for the accounting policies may also be affected by a proposed
NSW Public Sector. The impacts disclosed below standard to harmonise accounting standards with
reflect Treausury’s likely mandates (referred to Government Finance Statistics (GFS). However, the
as”indicative mandates”). impact is uncertain because it depends on when this
Shown below are management’s best estimates as at standard is finalised and whether it can be adopted
the date of preparing the 30 June, 2005 financial report in 2005-06.
of the estimated financial impacts of AEIFRS on the
Based on the above, if AEIFRS were applied in 2004-05 applied, they are likely to impact on accumulated funds
this would not change the Net Cost of Services. (on first adoption) and the amount and volatility of
surplus/deficit. Further, the impact of these Standards
Notes to tables above
will in part depend on whether the fair value option
1 The adoption of AASB 138 will also result in
can or will be mandated consistent with Government
certain reclassifications from plant and equipnment
Finance Statistics.
to intangible assets (e.g. computer software
and easements). (c) Grant recognition for not-for profit entities
2 AASB 119 requires present value measurement for The Department will apply the requirements in AASB
all long-term employee benefits. Current AGAAP 1004 Contributions regarding contributions of assets
provides that wages, salaries, annual leave and sick (including grants) and forgiveness of liabilities. There are
leave are measured at nominal value in all no differences in the recognition requirements between
circumstances. The Department has long-term the new AASB 1004 and the current AASB 1004.
annual leave benefits and accordingly will measure However, the new AASB 1004 may be amended by
these benefits at present value, rather than nominal proposals in Exposure Draft (ED) 125 Financial Reporting
value, thereby decreasing the employee benefits by Local Governments. If the ED 125 approach is
liability and changing the quantum of the annual applied, revenue and/or expense recognition will not
leave expense. occur until either the Department supplies the related
goods and services (where grants are in-substance
(b) Financial Instruments agreements for the provision of goods and services) or
In accordance with NSW Treasury’s indicative mandates, until conditions are satisfied. ED 125 may therefore
the Department will apply the exemption provided in delay revenue recognition compared with AASB 1004,
AASB 1 First-time Adoption of Australian Equivalents to where grants are recognised when controlled. However,
International Financial Reporting Standards not to apply at this stage, the timing and dollar impact of these
the requirements of AASB 132 Financial Instruments: amendments is uncertain.
Presentation and Disclosures and AASB 139 Financial
Instruments: Recognition and Measurement for the
24. AFTER BALANCE DATE EVENTS
financial year ended 30 June, 2005. These Standards
will apply from 1 July 2005. None of the information There are no events subsequent to balance date which
provided above includes any impacts for financial affect the financial report.
instruments. However, when these Standards are (END OF AUDITED FINANCIAL STATEMENTS)
Ministerial Corporation for Industry
Independent Audit Report
Ministerial Corporation for Industry
Statement by Ministerial Corporation for Industry
69
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Ministerial Corporation for Industry
Financial Statements
Expenses
Other operating expenses 2(a) 7,880 12,633 13,092
Total Expenses 7,880 12,633 13,092
Less:
Retained revenue
Grants and contributions 3(a) 228 – 2,233
Total Retained Revenue 228 – 2,233
Government Contributions:
Recurrent appropriation 5 5,906 12,633 11,351
Total Government Contributions 5,906 12,633 11,351
71
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Statement of Financial Position
as at 30 June 2005
ASSETS
Current Assets
Cash 7 – – –
Receivables 8 23 120 120
Total Current Assets 23 120 120
Non-Current Assets
Other financial assets 9 500 501 501
– Land 10 3,198 3,198 3,198
Total Non-Current Assets 3,698 3,699 3,699
Total Assets 3,721 3,819 3,819
LIABILITIES
Current Liabilities
Payables 11 2,795 1,147 1,147
Total Current Liabilities 2,795 1,147 1,147
Total Liabilities 2,795 1,147 1,147
Net Assets 926 2,672 2,672
EQUITY
Accumulated funds 12 926 2,672 2,672
Total Equity 926 2,672 2,672
Receipts
Other 325 – 2,113
Total Receipts 325 – 2,113
73
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Summary of Compliance with Financial Directives
for the year ended 30 June 2005
2005 2004
Expenditure/ Expenditure/ Expenditure/ Expenditure/
Net Claim on Net Claim on Net Claim on Net Claim on
Recurrent Consolidated Capital Consolidated Recurrent Consolidated Capital Consolidated
Appropriation Fund Appropriation Fund Appropriation Fund Appropriation Fund
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
ORIGINAL BUDGET
APPROPRIATION/EXPENDITURE
Appropriation Act 12,633 5,906 – – 11,351 11,351 – –
12,633 5,906 – – 11,351 11,351 – –
Total Appropriations/
Expenditure/Net Claim
on Consolidated Fund
(includes transfer payments) 12,633 5,906 – – 11,351 11,351 – –
Amount drawn down
against Appropriation 5,906 – 11,351 –
Liability to Consolidated Fund – – – –
(a) The Summary of Compliance is based on the assumption that Consolidated Fund monies are spent first
(except where otherwise identified or prescribed). The appropriation is made to the Department of State and
Regional Development and disclosed in its financial report as a transfer payment.
(b) The Corporation operates from within the one program of the Department of State and Regional Development.
(c) The net claim on Consolidated Fund is less than budget appropriation due to less than forecast
expenditure on Assistance to Industry projects, as a result of varations in the timing of payments of
approved project commitments.
Ministerial Corporation for Industry
Financial Statements
75
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
(f) Revaluation of Physical Non-Current Assets (g) Depreciation of Non-Current Physical Assets
The Corporation’s physical non current assets are Depreciation is not provided as the Corporation’s non-
represented by land held for resale for commercial or current physical assets are non depreciable.
industrial development. Land is valued at market based
(h) Administrative Support
value. Physical non current assets are revalued every
All administrative support for the Corporation’s activities
5 years. The last such revaluation was completed on
is provided by the Department of State and Regional
30 June 2001 and was based on an independent
Development. The administrative support costs, which
assessment, by the State Valuation Office. The recoverable
have not been valued, are not reflected in the
amount test has not been applied as the Corporation is a
Corporation’s Statement of Financial Performance.
not-for-profit entity whose service potential is not related
to the ability to generate net cash inflows. Revaluation (i) Grants, Subsidies and Industry Assistance
increments are credited directly to the asset revaluation Payments for grants, subsidies and industry assistance
reserve, except that, to the extent that an increment are expensed at the time the Corporation becomes liable
reverses a revaluation decrement in respect of that class to make the payment. The approval of the grant,
of asset previously recognised as an expense in the subsidy or assistance may cover a number of years, and
surplus/deficit, the increment is recognised immediately as it is not considered that a liability arises until conditions
revenue in the surplus/deficit. Revaluation decrements are specified in the approval have been met and a claim for
recognised immediately as expenses in the surplus/deficit, payment has been received. Grants, subsidies and
except that, to the extent that a credit balance exists in assistance which have been approved but have not been
the asset revaluation reserve in respect of the same class paid or accrued have been included in commitments
of assets, they are debited directly to the asset revaluation (Refer Note 13).
reserve. Revaluation increments and decrements are offset
against one another within a class of non-current assets,
but not otherwise.
2005 2004
$’000 $’000
2. EXPENSES
(a) Other operating expenses
Auditor’s remuneration for audit of the financial report 16 15
Consultancies 22 –
Contractors 53 –
Other expenses 5 39
Assistance to Industry 7,784 13,038
7,880 13,092
3. REVENUES
(a) Grants and contributions
Department of State and Regional Development 228 2,233
228 2,233
5. APPROPRIATIONS
Recurrent appropriations
Total recurrent drawdowns from Treasury (per Summary of Compliance) 5,906 11,351
5,906 11,351
Comprising:
Recurrent appropriations (per Statement of Financial Performance) 5,906 11,351
5,906 11,351
Ministerial Corporation for Industry
Financial Statements
2005 2004
$’000 $’000
9. NON-CURRENT ASSETS
Loans to industry 3,548 3,550
Provision for Doubtful Debts (3,048) (3,049)
Investment – equity in Smart Internet Techology CRC 961 733
Dimunition of value of CRC Shares (961) (733)
500 501
Reconciliations
LAND
$’000
2005
Carrying amount at start of year 3,198
Carrying amount at end of year 3,198
Land held for resale was valued by the State Valuation Office in June 2001. Where appropriate,
parcels of land held for resale reflect the value attributable to the Corporation as per a joint venture
development agreement with Albury Wodonga Development Corporation.
10(b) JOINT VENTURE OPERATIONS
The Corporation is party to a joint venture development agreement with the Albury Wodonga
Development Corporation to develop, market and sell industrial property at Albury. The Corporation
contributed the industrial land with the Albury Wodogna Development Corporation responsible for
development of the site. The Corporation’s interest in the joint venture arrangement is calculated
at 58.8%. The carrying value of the land amounts to $148,000 and has been included in the
value of Non Current Assets – Property disclosed in this Note.
Ministerial Corporation for Industry
Financial Statements
77
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000
ACCUMULATED FUNDS
2005 2004
$’000 $’000
2005 2004
$’000 $’000
13. COMMITMENTS
(a) Other Expenditure Commitments
Industry Assistance Fund Commitments approved but not paid:
Not later than one year 8,406 12,626
Later than one year and not later than five years 9,870 15,310
Later than five years 55 –
Total (including GST) 18,331 27,936
The above comitments are not recognised in the 15. BUDGET REVIEW
financial statements as liabilities.
Net cost of services
The total commitments above include input tax credits The actual net cost of services was less than budget by
of $1,667,000 (30 June 2004 $2,525,000) that are $4,981,000. This is primarily due to less than budgeted
expected to be recovered from the ATO. expenditure on Industry Assistance projects due to
variations in the timing of approved project
14. CONTINGENT LIABILITIES AND commitments.
CONTINGENT ASSETS
Assets and liabilities
The Corporation is not aware of any contingent liabilities Net assets were less than budget by an amount of
and/or contingent assets associated with its operations. $1,746,000. This is primarily due to current liabilities
payables being greater than budget.
Cash flows
Net cash flows from operating activities
were as per budget.
Ministerial Corporation for Industry
Financial Statements
2005 2004
$’000 $’000
17. FINANCIAL INSTRUMENTS 1 July 2004 was prepared under AEIFRS (in parallel with
existing AGAAP financial information and financial
Loans to Industry
statement) and submitted to the NSW Treasury.
All loans are recognised as amounts receivable at
balance date. Collectability is reviewed on an ongoing The Corporation has determined the key areas where
basis. The majority of loans are considered to be not changes in accounting policies are likely to impact the
collectable. As a result a large provision for doubtful financial report. Some of these impacts arise because
debts has been raised. The credit risk is the carrying AEIFRS requirements are different from existing AASB
amount (net of any provision for doubtful debts). requirements (AGAAP). Other impacts are likely to
Security is generally in the form of mortgage over arise from options in AEIFRS. To ensure consistency at
the company’s assets or directors’ guarantees. the whole of government level, NSW Treasury has
advised agencies of options it is likely to mandate for
Bank Overdraft the NSW Public Sector. The impacts disclosed below
The Corporation does not have any bank overdraft reflect Treasury’s likely mandates (referred to as
facility. ‘’indicative mandates’’).
Trade Creditors and Accruals Shown below are management’s best estimates as at
Liabilities are recognised for amounts due to be paid the date of preparing the 30 June, 2005 financial report
in respect of Industry Assistance Grants, where the of the estimated financial impacts of AEIFRS on the
performance criteria has been met, and the claim Group’s equity and surplus/deficit. The Corporation does
has been made prior to the end of the year. not anticipate any material impacts on its cash flows.
The actual effects of the transition may differ from the
18. IMPACT OF ADOPTING AUSTRALIAN estimated figures below because of pending changes to
EQUIVALENTS TO IFRS the AEIFRS, including the UIG interpretations and/or
emerging accepted practice in their interpretation and
The Corporation will apply the Australian equivalents to
application. The Corporation’s accounting policies may
International Financial Reporting Standards (AEIFRS)
also be affected by a proposed standard to harmonise
from 1 July 2005.
accounting standards with Government Finance
The Corporation is managing the transition to the new Statistics (GFS). However, the impact is uncertain
standards by allocating internal resources and engaging because it depends on when this standard is finalised
Central Corporate Services Unit (CCSU) to analyse the and whether it can be adopted in 2005-06.
pending standards and Urgent Issues Group Abstracts to
identify key areas regarding policies, procedures, systems
and financial impacts affected by the transition. To date,
all the phases identified and reported in the Financial
Statements for the year ended 30 June 2004 have been
completed. In particular, a draft Balance Sheet as at
Ministerial Corporation for Industry
Financial Statements
79
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
1 JULY
2005 2004
$’000 $’000
30 JUNE
2005
$’000
1 AASB 5 Non-current Assets Held for Sale and Discontinued Operations requires
non-current assets classified as ‘held for sale’ to be reclassified as current and
recognised at the lower of the carrying amount and the fair value less costs to sell.
Expenses
Other operating expenses 2(a) 78 50 34
Total Expenses 78 50 34
Net Cost of Services 11 78 50 34
Government Contributions:
Recurrent appropriation 3 78 50 34
83
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Statement of Financial Position
as at 30 June 2005
ASSETS
Current Assets
Cash 5 – – –
Total Current Assets – – –
Total Assets – – –
LIABILITIES
Current Liabilities
Payables 6 5 5 5
Total Current Liabilities 5 5 5
Total Liabilities 5 5 5
Net Assets (5) (5) (5)
EQUITY
Accumulated Funds 7 (5) (5) (5)
Total Equity (5) (5) (5)
85
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Summary of Compliance with Financial Directives
for the year ended 30 June 2005
2005 2004
Expenditure/ Expenditure/ Expenditure/ Expenditure/
Net Claim on Net Claim on Net Claim on Net Claim on
Recurrent Consolidated Capital Consolidated Recurrent Consolidated Capital Consolidated
Appropriation Fund Appropriation Fund Appropriation Fund Appropriation Fund
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
ORIGINAL BUDGET
APPROPRIATION/EXPENDITURE
Appropriation Act 78 78 – – 34 34 – –
78 78 – – 34 34 – –
Total Appropriations/
Expenditure/Net Claim on
Consolidated Fund
(includes transfer payments) 78 78 – – 34 34 – –
Amount drawn down
against Appropriation 78 – 34 –
Liability to Consolidated Fund – – – –
(a) The Summary of Compliance is based on the assumption that Consolidated Fund monies are spent first
(except where otherwise identified or prescribed).
(b) The Corporation operates from within the one program of the Department of State and Regional Development.
(c) The net claim on Consolidated Fund is as per the Recurrent Appropriation.
Small Business Development Corporation of New South Wales
Financial Statements
Notes Accompanying and Forming – the requirements of the Public Finance and Audit
Part of The Financial Statements Act 1983 and Regulations; and
for the year ended 30 June 2005 – the Financial Reporting Directions published in the
Financial Reporting Code for Budget Dependent
1. SUMMARY OF SIGNIFICANT ACCOUNTING General Government Sector Agencies or issued by
POLICIES the Treasurer under section 9(2)(n) of the Act.
(a) Reporting entity Where there are inconsistencies between the above
The Small Business Development Corporation of requirements, the legislative provisions have prevailed.
New South Wales ( hereafter the “Corporation” ) In the absence of a specific Accounting Standard,
is constituted under the Small Business Development other authoritative pronouncements of the AASB or
Corporation Act,1984.The objectives of the UIG Consensus View, the hierarchy of other
Corporation are: pronouncements as outlined in AAS 6 ‘’Accounting
(a) develop policy objectives for Government Policies’’ is considered.
programs of assistance to the small business The financial statements are prepared in accordance
sector of the economy; with the historical cost convention.
(b) to evaluate such Government programs in the All amounts are rounded to the nearest one thousand
light of these objectives; dollars and are expressed in Australian currency.
(c) to make recommendations for improvement of The accounting policies adopted are consistent with
such Government programs; and those of the previous year.
(d) to assist the Government generally in matters (c) Insurance
relating to the development of the small business The Corporation’s insurance activities are included in
sector of the economy. the Department of State and Regional Development’s
The Corporation is a separate reporting entity. insurance coverage conducted through the NSW
As the Corporation is a single program entity, the Treasury Managed Fund Scheme of self insurance
financial operations disclosed in the Statement of for Government agencies.
Financial Performance and Statement of Financial Consequently no insurance expense is charged to the
Position are identical to the Corporation’s program. Corporation.
Accordingly, a separate supplementary program
(d) Administrative Support
statement has not been prepared. The reporting entity
Administrative support for the Corporation is provided
is consolidated as part of the NSW Total State Sector.
by the Department of State and Regional Development.
(b) Basis of Accounting The administrative support costs,which have not been
The Corporation’s financial statements are a general valued, are not reflected in the Corporation’s Statement
purpose financial report which has been prepared on of Financial Performance.
an accruals basis and in accordance with:
– applicable Australian Accounting Standards;
– other authoritative pronouncements of the
Australian Accounting Standards Board (AASB);
– Urgent Issues Group (UIG) Consensus Views;
Small Business Development Corporation of New South Wales
Financial Statements
87
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000
2. EXPENSES
(a) Other operating expenses
Auditor’s remuneration for audit of the financial reports 5 5
Administration Expenses 1 –
Contractors 40 –
Training and development 1 –
Publications and advertising – 6
Travel expenses 5 6
Printing 3 5
Other expenses 7 4
Meeting Fees and Expenses 16 8
78 34
3. APPROPRIATIONS
Recurrent appropriations
Total recurrent drawdowns from Treasury (per Summary of Compliance) 78 34
78 34
Comprising:
Recurrent appropriations (per Statement of Financial Performance) 78 34
78 34
The appropriation is made to the Department of State and Regional Development and is
disclosed in its financial statements as a transfer payment to the Corporation. The Corporation
draws funds from the Department only to the extent necessary to meet expenditure.
ACCUMULATED FUNDS
2005 2004
$’000 $’000
7. CHANGES IN EQUITY
Balance at the beginning of the year (5) (5)
Changes in equity – other than transactions with owners as owners
Surplus/(deficit) for the year – –
Balance at the end of the financial year (5) (5)
2005 2004
$’000 $’000
89
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
12. IMPACT OF ADOPTING AUSTRALIAN from options in AEIFRS. To ensure consistency at the
EQUIVALENTS TO IFRS whole of government level, NSW Treasury has advised
The Corporation will apply the Australian equivalents to agencies of options it is likely to mandate for the
International Financial Reporting Standards (AEIFRS) NSW Public Sector. The impacts disclosed below
from 1 July 2005. reflect Treasury’s likely mandates (referred to as
‘’indicative mandates’’).
The Corporation is managing the transition to the new
standards by allocating internal resources and engaging Shown below are management’s best estimates as at
Central Corporate Services Unit (CCSU) to analyse the the date of preparing the 30 June 2005 financial report
pending standards and Urgent Issues Group Abstracts to of the estimated financial impacts of AEIFRS on the
identify key areas regarding policies, procedures, systems Corporation’s equity and surplus/deficit. The Corporation
and financial impacts affected by the transition. To date, does not anticipate any material impacts on its cash
all the phases identified and reported in the Financial flows. The actual effects of the transition may differ
Statements for the year ended 30 June 2004 have been from the estimated figures below because of pending
completed. In particular, a draft Balance Sheet as at changes to the AEIFRS, including the UIG interpretations
1 July 2004 was prepared under AEIFRS (in parallel with and/or emerging accepted practice in their interpretation
existing AGAAP financial information and financial and application. The Corporation’s accounting policies
statement) and submitted to the NSW Treasury . may also be affected by a proposed standard to
harmonise accounting standards with Government
The Corporation has determined the key areas where
Finance Statistics (GFS). However, the impact is uncertain
changes in accounting policies are likely to impact the
because it depends on when this standard is finalised
financial report. Some of these impacts arise because
and whether it can be adopted in 2005-06.
AEIFRS requirements are different from existing AASB
requirements (AGAAP). Other impacts are likely to arise
1 JULY
2005 2004
$’000 $’000
30 JUNE
2005
$’000
91
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 1
Code of Conduct
The Department’s Code of Conduct has been developed to provide practical assistance to all staff in the Department
of State and Regional Development in performing its roles and in resolving situations which present ethical conflicts.
The Department’s Code of Conduct underpins the Department’s Management Development Program by setting the
standard of conduct and ethical behaviour that is expected by Managers and their staff. The Department reissued
the Code of Conduct during the reporting period.
Appendix 2
Engagement of Consultants
Legal NIL
Management Services $110,634
Organisational review $70,360
Total under $30,000 $180,994
Total consultancies $275,494
Appendix 3 Appendix 4
Consumer Response Controlled Entities
All requests made to the Department for information or The Department administers, but does not control, two
assistance are met directly and promptly or are referred entities as prescribed under Section 45A (1A) of the
to the most appropriate officer as required. The Public Finance and Audit Act 1983.
Department received no significant consumer
complaints during the reporting period. Consequently, Ministerial Corporation for Industry
no changes to the Department’s services were The Ministerial Corporation for Industry was established
warranted on the basis of adverse consumer response. under the State Development and Industries Assistance
The Department remains committed to providing Act 1966 No 10.
courteous, prompt and expert assistance to its clients
The Corporation’s functions are to promote,
and the public in general.
encourage and stimulate the:
– establishment, expansion or development
of industries
– carrying out, by business undertakings and
prescribed institutions, of projects that are likely to
assist the establishment, expansion or development
of industries.
Appendices
The Corporation acts as a vehicle for providing Further details of the Corporation’s activities for
financial assistance to investors on a case-by-case basis the year are described in the Small Business
following rigorous analysis of the projected impact on Development Division’s section within this report.
the NSW economy if a project were to proceed, The financial statements for the Corporation are
including in relation to new technologies and skills. included in this report.
The financial statements for the Corporation are Note: As foreshadowed in the Department’s 2003-2004
included in this Report. Annual Report, responsibility for the NSW Innovation
Council is to be transferred to the Minister for Science
Small Business Development Corporation and Medical Research in accordance with the
of NSW recommendation of the Legislative Council Standing
The Small Business Development Corporation was Committee on State Development.
established in 1984.
The Corporation’s primary objectives are to:
Appendix 5
– investigate such matters relating to the small
business sector of the economy as the Minister Credit Card Use Certification
may refer to the Corporation
In accordance with the Treasurer’s Direction 205.01, it is
– exercise such functions relating to the development certified that credit card usage by all the Department’s
of the small business sector of the economy as the officers during 2004-2005 was in accordance with the
Minister may confer appropriate Government policy, Premier’s Memoranda
– investigate any other matters relating to the small and Treasurer’s Direction.
business sector of the economy
– conduct enquiries into issues affecting Appendix 6
small business.
The Corporation’s membership for the 2004-2005 Disability Action Plan
year comprised: The Department’s second Disability Action Plan
– Ms Lynn Scott (Chair), Managing Director, 2003-2005 was developed to build on successes from
Creative By Design previous years. It identifies gaps in access and/or
– Mr Robert Cowan, Managing Director, barriers to DSRD offices and services for people with
Cowan Manufacturing Pty Limited disabilities. The Plan provides open communication
channels for feedback from all stakeholder groups and
– Mr Alan Eldridge, Managing Director,
provides for the implementation of appropriate
Eldridge and Co
strategies to ensure equal access to all DSRD services
– Mr Mark Fawcett, Managing Director, for people with disabilities.
Herd Bars and Bodies Pty Ltd
– Mr Loftus Harris, Director General, Department of
State and Regional Development
– Ms Lexie Hurford, Assistant General Manager,
Hurford group of companies
– Ms Beata Kade, Managing Director,
Art of Multimedia Pty Ltd
– Mr John Lightfoot, Managing Director,
Lightfoot and Associates Pty Ltd
– Ms Margaret Lomas, Director, Destiny Financial
Solutions Pty Ltd
– Ms Maree Lowe, Director, ASI Solutions
– Ms Karen Menzies, Managing Director,
Nineways Business Centre
– Mr Andrew Terry, Head of School of Business Law
and Taxation, University of NSW
Appendices
93
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Disability Action Plan 2003-2005
Physical Access Disability awareness training for staff, Training programs to all new staff
including the Department’s obligations to to the Department were implemented.
provide access for people with disabilities
to all services, programs and projects.
Promoting Positive Profiling people with disabilities who are in Articles included in
Community Attitudes business included in Departmental Departmental publications.
publications.
Employment and Disability awareness training for staff, Training programs to all new staff
Training of Staff including the Department’s obligations to to the Department were
provide access for people with disabilities implemented.
to all services, programs and projects.
Training program for recruitment panel Recruitment activities and training
members to ensure staff awareness of reflect merit based principles.
merit based selection.
Include in all job advertisements the Statement included in advertisements.
statement that the Department is an equal
opportunity employer.
Promote information about resources Information about how to access
available to staff to assist in meeting needs these resources included in orientation,
for reasonable workplace adjustment for staff and management training
people with a disability. programs.
Information about Development of Departmental policies, Policies, procedures and publications
Services procedures and publications to monitored and revised as necessary.
incorporate the needs of staff with
a disability.
Complaints Procedures Develop and implement a program for Under development.
managing customer comments which
is accessible for people with disabilities.
% of Total Staff
Benchmark Result
EEO Group or Target 2002 2003 2004 2005
% of Total Staff
Benchmark Result
EEO Group or Target 2002 2003 2004 2005
Women 100 83 83 86 87
Aboriginal people and Torres Strait Islanders 100 n/a n/a n/a n/a
People whose first language was not English 100 93 96 96 96
People with a disability 100 n/a n/a n/a n/a
People with a disability requiring
work-related adjustment 100 n/a n/a n/a n/a
Notes:
1. Staff numbers are as at 30 June 2005.
2. Excludes casual staff.
3. A Distribution Index of 100 indicates that the centre of the distribution of the EEO group across salary levels is
equivalent to that of other staff. Values less than 100 mean that the EEO group tends to be more concentrated
at lower salary levels than is the case for other staff. The more pronounced this tendency is, the lower the index
will be. In some cases the index may be more than 100, indicating that the EEO group is less concentrated at
lower salary levels. The Distribution Index is automatically calculated by the software provided by the Office of
the Director of Equal Opportunity in Public Employment (ODEOPE).
4. The Distribution Index is not calculated where EEO group or non-EEO group numbers are less than 20.
Appendices
95
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 8 – increasing the ethnic community’s representation on
its Boards and Advisory Councils, by encouraging
Ethnic Affairs Priorities Statement (EAPS) representation from ethnic communities and
and Agreement establishing ethnicity as a key criteria for
membership, for example, The Small Business
As New South Wales’ (NSW) leading business
Development Corporation is a statutory advisory
development agency, a major focus of the Department
body with 13 members, one of which is from
has been to sponsor business migrants to NSW.
a non-English speaking background. The
Following changes by the Commonwealth Government NSW-Asia Business Advisory Council currently has
to the Australian Business Migration Program in March 13 members, 11 of which are from a non-English
2003, 80% of business migrants to Australia require speaking background.
sponsorship from a State or Territory Government.
Most business migrants enter NSW firstly on a
Provisional (Temporary Residence) visa for 2 to 4 years Appendix 9
and then apply for a visa as a Permanent Resident.
Freedom of Information
In 2004-2005, NSW received 364 applications for NSW
State sponsorship and issued 232 sponsorships in The following information is set out in accordance with
support of visa applications to the Commonwealth. the format prescribed in the Premier’s Department
Twenty applications for sponsorship were declined and Freedom of Information (FOI) Procedure Manual.
112 were pending as of 30 June 2005. The Department
of Immigration and Multicultural and Indigenous Affairs Statement of Affairs
(DIMIA) approved visas for 69 applicants sponsored by Under the Freedom of Information Act 1989, each
NSW and declined 16 applicants. The business migrants agency is required to publish an annual Statement of
approved by DIMIA are expected to bring $12.2 million Affairs. The Statement describes the structure and
in business fixed capital investment, create 290 new jobs functions of the agency and lists the categories of
and generate $135 million in exports over five years. documents held by the agency. It also sets out how to
In 2005-2006, NSW expects to issue 280 sponsorships obtain documents that are eligible for public scrutiny
and receive 120 approvals from DIMIA which will under legislation. The following information satisfies the
bring $20 million in business fixed capital investment, legislative requirements of the Act.
create 500 jobs and deliver $240 million in exports
over five years. Structure and Functions
The Department was created in December 1995
Progress and Achievements following the amalgamation of the Department of
The Department has continued to support its State Development and the Department of Business and
commitment to our culturally diverse staff and Regional Development. The Department’s structure,
community by: functions and charter are detailed at the beginning
of this Report.
– incorporating EAPS accountabilities in all
position descriptions Effect of Functions on Members of the Public
– stating EAPS accountabilities in SES The Department’s target market is the business
Performance Agreements community on which it had a direct effect by assisting
– including the capacity to collect client ethnicity data major commercial projects through the approvals
in Recruitment and Staff Training Databases process and providing key business information and
– promoting Small Business Month activities through statistics. The Department assisted existing businesses
ethnic community newspaper and radio stations with projected expansion and new domestic projects.
– publishing two promotional brochures (one in Other areas where the Department directly assisted
Chinese) promoting Trade Missions, the other the public were in the area of advice and access to
dedicated to Aichi also promoting trade and government purchasing, encouraging the development
investment opportunities in New South Wales to of exports and the provision of support for selected
business people and officials, either in China or international trade exhibitions.
visiting the State. The brochure also covers the role Much of the Department’s work had an indirect impact
of DSRD in the economic development of NSW on the general public. By encouraging investment,
– maintaining a dedicated proxy exports, industry development activities and expediting
(china@business.nsw.gov.au) which facilitates project approvals, sustainable jobs were created for the
inquiries regarding exporting to China people of NSW.
Appendices
Archives
Out of date or inactive files, as classified by the
Department’s disposal schedule (approved by the State
Records Authority) in accordance with the State Records
Act, 1998, are stored at the Government’s Record
Repository in Kingswood, Sydney.
Appendices
97
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Freedom of Information Statistics for 2004-2005
Section A
Numbers of new FOI requests
Section B
What happened to completed requests?
B1 Granted in full – 1
B2 Granted in part – 5
B3 Refused – –
B4 Deferred – –
B5 Completed – 6
Section C
Ministerial Certificates
Section D
Section E
Amendment of personal records
Section F
Notation of personal records
F3 Number of requests for notation –
Appendices
Section G
FOI requests granted in part or refused – Basis of disallowing access – Number of times each reason cited
in relation to completed requests granted in part or refused.
Section H
Costs and fees of requests processed – does not include costs and fees for unfinished requests.
(Results for these are included in Line A8).
Section I
Discounts allowed
I1 Public Interest
I2 Financial Hardship – Pensioner/Child – –
I3 Financial Hardship – Non-profit organisation – –
I4 Totals – –
I5 Significant correction of personal records – –
Note: Except for item I5, items I1, I2, I3 and I4 refer to requests processed as recorded in A7. For I5, however, show
the actual number of requests for correction of records processed during the period.
Section J
Days to process – calendar days
J1 0–21 days – 3
J2 22–35 days – 2
J3 Over 35 days – 1
J4 Totals – 6
Appendices
99
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Section K
Processing time – (A4) by hours taken to process (completed)
K1 0 – 10 hrs – 3
K2 11 – 20 hrs – 2
K3 21 – 40 hrs – 1
K4 Over 40 hrs – –
K5 Totals – 42 hours
Section L
Reviews and appeals – number finalised during the period
L1 Number of internal reviews finalised –
L2 Number of Ombudsman reviews finalised –
L3 Number of Administrative Decisions Tribunal appeals finalised –
Details of Internal Review Results – in relation to internal reviews finalised during the period
* Relates to whether or not the original agency decision was upheld or varied by the internal review.
Appendices
Appendix 10 Implementation
The Departments Energy management goals are
Government Energy Management Policy contained in an Energy Management Plan for its four
Corporate Commitment Sydney and 18 Regional offices.
The Department of State and Regional Development is During 2004-2005, the Department used 8,595
committed to reaching the Government’s energy gigajoules of energy, which generated 1,234 tonnes of
management goal of reducing greenhouse emissions CO2. This represented an overall decrease in energy
arising from its operational activities. consumption of 799 gigajoules per annum from the
1996-1997 base year, which represents an 8.51 per cent
Planning reduction in energy consumption.
The Department has entered into Greenpower electricity
Performance Against Goals
supply contracts which account for over six per cent of
total electricity used. During the year, a reduction in fuel and electricity
consumed meant that the Department has generated
The Department continued to reduce future electricity
11.29 per cent less greenhouses gases in comparison to
consumption through leasing smaller more energy
the 1996-1997 base year.
efficient sites and installing energy savings devices in
existing premises where appropriate. This will be in Despite a high demand on the department’s fleet
accord with the Government’s policy on the Australian vehicles, total fuel consumption was reduced by
Greenhouse Buildings Rating Scheme. 16.97 per cent on the 1996-1997 base year. Of the
141,588 litres of fuel used, 2,415 litres were the more
During the reporting period, the Department
environmental friendly LPG.
achieved greater fuel efficiency in its fleet by
progressively replacing vehicles with more fuel efficient
Future Direction
cars and with smaller engine capacity. The Department’s
current fleet average of 10.2 already meets the targets The Department will continue to use Best Practice
required for 2005-2006 under the Premiers Greener Standards in the acquisition of replacement of fleet
Fleet Initiative. Further fleet improvements are planned vehicles and the purchase of new office equipment
to meet future targets. wherever possible.
The Department will also continue to target
opportunities to increase the energy efficiency of
its leased premises.
Appendices
101
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 11
Grants to Non-Government Community Organisations
Organisation Project Amount Date
103
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Organisation Project Amount Date
105
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Organisation Project Amount Date
Murray Shire Council Event plan for ‘Budburst’ Festival $3,500 01/02/2005
Urana Shire Council Plan to enhance the use of the $10,000 01/02/2005
aquatic centre to attract tourists
Deniliquin Shire Council Planning for “Deni Ute $8,000 01/02/2005
Muster” event
Greater Hume Shire Council “Holbrook Hoedown” event $10,000 01/02/2005
Cabonne Shire Council Strategic plan review workshop $1,000 01/03/2005
Forbes Promotion & Forbes business awards $4,00 01/03/2005
Development Inc
Albion Park Chamber of Employment of a coordinator $50,000 01/03/2005
Commerce
Moruya Chamber of Commerce Arts business forum – $2,000 01/04/2005
Moruya River of Art Festival
Wingecarribee Shire Council Business Retention Expansion $15,000 01/05/2005
program for LGA other
than Bowral
Narrabri Shire Council Economic Development Officer, $60,000 01/05/2005
community planning workshops,
Business Retention Expansion program
Gwydir Shire Council Community planning $24,000 01/05/2005
workshops and Business
Retention Expansion program
Narromine Shire Council Business Retention and $9,000 01/06/2005
Expansion program and
community planning workshops
Mayfield Mainstreet Mayfield on the map project $20,000 01/06/2005
Committee c/o Newcastle
City Council
Nowra Chamber of Commerce Shoalhaven Business Expo $8,000 01/06/2005
Sept 2005
Clarence Valley Council Business Retention Expansion program $8,000 01/06/2005
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ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Organisation Project Amount Date
109
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Establishment
Note: For EEO data see Appendix 7
Establishment (i.e. number of positions – FTE) 275.3 281.2 313.7 296 297
Staff number of the Department (FTE) 250.7 268.3 299.1 276.5 274.2
Study Assistance
The Department has continued to support staff
undertaking part time study through its study assistance
program. During the period 2004-2005, 14 staff were
provided with study assistance.
Appendices
111
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 14
Information and Communications Technology
The Department maintains and publishes information for clients and the public on the following websites:
www.business.nsw.gov.au (Main DSRD Site)
www.competitiveness.nsw.gov.au (NSW Competitiveness Data)
www.regionalcommunities.nsw.gov.au (Regional Site)
www.business.nsw.gov.au/biotech (Biotechnology & Pharmaceuticals)
www.smallbiz.nsw.gov.au (Small Business)
www.smallbusiness.nsw.gov.au (Small Business)
www.smallbusinessmonth.nsw.gov.au (Small Business)
www.smallbiz.nsw.gov.au/hbb (Small Business)
www.smallbiz.nsw.gov.au/makingit (Small Business)
www.aboriginalbiz.nsw.gov.au (Aboriginal Business)
www.export.nsw.gov.au (Export Business)
www.retailtenancy.nsw.gov.au (Retail Tenancy Site)
www.ats.business.gov.au (Australian Technology Showcase)
www.techshowcase.nsw.gov.au (Australian Technology Showcase)
www.food.nsw.gov.au (Food Site)
www.biotechnology.nsw.gov.au (Biotechnology Directory Site)
Appendix 15 Appendix 16
Internal Audit Bureau Land Disposal
The Internal Audit Bureau is contracted to the The Department, through the Ministerial Corporation for
Department for the provision of internal audit services Industry, has responsibility for several parcels of
and other special reviews. Audit activities undertaken industrial land at Berkeley Vale and Albury. This stock of
accord with an agreed audit plan. land is maintained for industrial development purposes.
Recommendations arising from reviews are considered The Albury land is subject of a joint venture agreement
by management and implemented as appropriate. with the Albury Wodonga Development Corporation.
During 2004-2005, two of the Albury Wodonga Joint
Venture Operation sites were sold. The remaining two
sites are still available on the market.
The sale of the Department’s Berkeley Vale site is being
actively marketed.
Appendices
Appendix 19
Overseas Travel
Department City and
Officer Country Visited Dates Purpose
Lynette Dorn Bangkok, Thailand 11–15 July 2004 NSW Trade Mission
Toni Hannon Tokyo 12–16 September NSW Government Office property matters
Loftus Harris Hong Kong, 18–24 September Forbes Global CEO 2004 Conference/Guandong
Warwick Glenn China Government Meetings
Brad Fitzmaurice Zurich, Switzerland 13–15 October Australian Interest Group Meeting
(based in London)
Brad Fitzmaurice Sydney 22 October– Business Briefings
(based in London) 6 November
Gerard Noon Palo Alto, 24–29 October ANZATECH 2004 Conference
California,USA
Michael O’Sullivan India 29 October– NSW Trade Mission
7 November
Christa Bracamonte Fiji and 1–10 November NSW Trade Mission
New Caledonia
Eric Cantwell Dubai, UAE 17–26 November NSW Market Visit – “Big 5” Exhibition
Brad Fitzmaurice Dusseldorf, Germany 24–27 November NSW delegation to MEDICA 2004
Steven Kerlander
Julie Scott China and 27 November – NSW Trade Mission
Paul William Smith Hong Kong 4 December Guandong Joint Economic Meeting,
Susan Xu Guangzhou
Loftus Harris Guangzhou, China 30 November- Joint Economic Meeting
3 December
Eric Winton China 13–22 January 2005 Support NSW companies at Stadia China 2005 in Beijing
and promote NSW expertise for the Beijing 2008 Olympics
Loftus Harris California, USA 16–20 January Australia Week in Los Angeles
Eric Cantwell 15–26 January
Tom McAlary China 19–26 February Promote business migration to New South Wales
Appendices
113
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Department City and
Officer Country Visited Dates Purpose
Michael O’Sullivan South Africa 6–11 February Sports Trade Mission promoting NSW skills for Soccer
World Cup 2010
Loftus Harris Dubai, UAE 4–11March NSW Trade Mission
Eric Cantwell Dubai, UAE 4–10 March
Will Cowley New Zealand 7 March–13 April International Staff Exchange
Roslyn Michelson New Zealand 4–7 April NSW Trade Mission
Sally Williams Singapore and 25–29 April NSW Trade Mission
Malaysia
Brad Fitzmaurice Frankfurt, Germany 28–29 April Australian Interest Group Meeting
(based in London)
Janine Ricketts Los Angeles, USA 17–20 May Electronic Entertainment Expo (E3)
Caroline Seagrove Aichi, Japan 26 May– 4 June Represent NSW at Sydney Week 2005 World Expo
Michelle Stewart
Loftus Harris USA/UK/France 15–28 June BIO2005, Philadelphia
Investment meetings in New York, Wales and London
Forbes CEO Europe Conference
Michael O’Sullivan USA 15–26 June Promote the NSW Biotechnology industry, and the
Shane Coombe 14–25 June Australian New Zealand Biotechnology Alliance
Steven Kerlander 16–25 June
Ellen Lintjens Wellington, 17–27 June Australian New Zealand School of Government
New Zealand
Jason Scattolin Wellington, 26 June–1 July Australian New Zealand School of Government
New Zealand
Appendix 20
Payment of Accounts
During the 2004-2005 financial year, the Department
maintained a policy of ensuring payment of accounts
by the due date and took advantage of discounts
where possible. The Department contracts the Central
Corporate Services Unit to process payments in
accordance with the Department’s accounts payment
policy. There were no instances during the 2004-2005
financial year where interest was paid for late payment
of accounts.
Appendices
September 76,027 – – – –
December 2,154 – – – –
March 284,166 – – – –
June 183,848 – – – –
115
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 22 Success Story: BTF Pty Ltd
Success Story: Cellabs Pty Ltd
Publications and Promotional Material Success Story: ObjectiVision
Success Story: Portland Orthopaedics
Corporate Success Story: Protech Research
NSW – at a glance (Z-card) Success Story: Ultraceuticals Pty Ltd
NSW Competitiveness Report 2005 Success Story: Vast Audio
NSW Competitiveness Report 2005 CD Rom Success Story: Vertical Orthotics
NSW Trade and Investment (Chinese) NSW Biotechnology Industry Directory – CD Rom
NSW Trade and Investment (Japanese) Western Sydney IT Cluster “Members Update” email (weekly)
Business First issue 30, 31, 32 Western Sydney IT Cluster bi-monthly e-newsletter (5 issues)
Regional First issue 19, 20 Western Sydney IT Cluster – Working Together for Mutual
Annual Report 2003-04 Benefit flyer on membership and benefits
First impression last – NSW Trade and Investment Centre Western Sydney IT Cluster – Online Members Capabilities
Directory
Investment Division Western Sydney IT Cluster – 2005 Calendar of Forums,
Workshops and Special events
Business Migration
Western Sydney IT Cluster new website www.wsitc.com.au
Doing Business in NSW (English)
Doing Business in NSW (Chinese)
Regional Development
Sydney – a top player in Digital Media CD-Rom
Small Town – Big Growth
Sydney and NSW: First for Information and Communications
Technology Your community – your future
Sydney – Digital Media Hotspot Putting regional NSW on the menu
Sydney – Major Project Unit Merriwa Small Towns Growth Strategy
Sydney, NSW – First for International Contact Centres Filming in Regional New South Wales, Australia
Sydney, NSW – First for Shared Services Growing Success in Cooma
Sydney, NSW – First for Foreign Exchange Funding Business Growth
Sydney, NSW – First for Funds Management Strong Regions, Strong Future
Sydney, NSW – First for Manufacturing Right place at the right time – developing distribution hubs in
regional NSW
Sydney, NSW – First for Food and Beverage Processing
Regional Distribution Centre Attraction Strategy – Goulburn
Sydney, Australia – Financial Services
Regional Food Tour 2005
Industry Division
Small Business Development Division
First for Aquaculture
Aboriginal Business Newsletters (pdf)
First for Aquaculture – industry directory 2004
Advertising and Promotion – Fact Sheet
Australian Technology Showcase – where Australian innovation
meets the world Anti-discrimination – Fact Sheet
Australian Technology Showcase Snapshot e-newsletter Better Solutions, Better Results (pdf)
Australian Technology Showcase website Business Advisory Services flyer
www.ats.business.gov.au Business Advisory Services large poster
Beijing Olympics brief, newsletter Business Advisory Services small poster
BioFirst website brochure Business Clusters: working together for growth
Biotechnology CD-ROM, online Directory Business Planning – Fact Sheet
www.business.nsw.gov.au/biotechnology Business Security – Fact Sheet
Biotechnology e-newsletter, online Business Structure – Fact Sheet
http://biotechnsw.e-newsletter.com.au
Buying a Business – Fact Sheet
Biotechnology events email (monthly)
China Fact Sheet (pdf)
Biotechnology Investment brochure
Cleaner Product Self Help Tool (pdf)
Discover NSW Wine and Food Trails – pocket guide
Cleaner Production PowerPoint Slides (http/powerpoint)
NSW First for Planted Forests
Cleaner Production Success Stories (webtext) –
Food Industry NSW – 2004-2005 Directory Bartter Enterprises
FoodBytes – e-newsletter (nine issues in 2004-2005) Cleaner Production Success Stories (webtext) – Castle Chemicals
NSW Aquaculture Industry Directory 2004 Cleaner Production Success Stories (webtext) –
NSW First for Aquaculture – case studies First Creek Wines
NSW First for Aquaculture – investment brief
Sydney, NSW; Focussing on Optical Technologies
Appendices
Cleaner Production Success Stories (webtext) – Small Business Fact Sheets in Korean x 6
Hammersley Chemicals Small Business Fact Sheets in Vietnamese x 6
Cleaner Production Success Stories (webtext) – Small Business Update (pdf)
Hunter Galvanizing Pty Ltd
Stepping Up – Helping your small business grow
Cleaner Production Success Stories (webtext) –
Maroba Incorporated Stepping Up Mentor Application and Brochure (pdf)
Cleaner Production Success Stories (webtext) – Pace Farm Eggs Stepping Up: Contractor Information Pack
Cleaner Production Success Stories (webtext) – Success Story: Aironic Pty Ltd
Alan Steggles Food Service Success Story: BerrySweet Australia
Client Service – Fact Sheet Success Story: Intensive Reading Programs Pty Ltd
Commercial Leases – Fact Sheet Success Story: IPS Worldwide
Debt Recovery – Fact Sheet Success Story: Metz Pty Ltd
Director of Aboriginal Business & Employment Programs (pdf) Success Story: Modular Mining Systems Pty Ltd
Directory of business services for Aboriginal People (pdf only) Success Story: Norco Co-operative Ltd
Electronic Commerce – Fact Sheet Success Story: Sud-Chemie Australia Pty Ltd
Employment Conditions – Fact Sheet Success Story: Waterco Ltd
Export Development: Helping Your Business to Export Success Story: Waterman AHW
Exporters Network registration (pdf) Surviving in Business – Fact Sheet
Exporting Newsletters (pdf) Taxation – Fact Sheet
Getting Started – Fact Sheet Technology and Innovation Newsletter (pdf)
Getting the Most from Advisers – Fact Sheet Trade Services Case Studies x 10
Helping people to start, manage and grow their business Wib Growth Strategies Workshop Programs (pdf)
Home based business action program WiB Mentor/Mentoree application forms (pdf)
Home Biz Kit CD Rom WiB Participant Notes (pdf)
Home-based Business Action Programs (pdf) Winning Exports Guide (pdf)
Independent Market Visit Program Women in Business – 2005 Growth Strategies Workshop
Innovation Clusters Program Women in Business – 2005 Growth Strategies Workshops
Innovation Services Program (February – June)
Innovation Success Stories (webtext) – Polo Hanger Women in Business – 2005 Growth Strategies Workshops
(July – December)
Innovation Success Stories (webtext) – Safety Pole
Women in Business – 2005 Mentor Program
Insurance – Fact Sheet
Women in Business – 2005 Regional Program
Insurance Finder Categories (pdf)
Intellectual Property – Fact Sheet
Retail Tenancy Unit
International Trade Missions and Market Visits Program,
July 2005–June 2006 RTU – Dispute Resolution Kit
International Trade Missions and Market Visits Program,
January to June 2005 Publications available on the Department’s
International Trade Missions and Market Visits Program, website
July to December 2004 DSRD Strategic Plan 2004-2007
Manufacturing in Western Sydney Annual Report 2004-2005
Marketing – Fact Sheet Guarantee of Service
NSW Exporters Network Sydney and NSW – An Overview
NSW Trade Mission to Shanghai and Guangdong, NSW First for Aquaculture – investment brief
29 November to 3 December 2004 (English and Chinese) First for Aquaculture – industry directory
NSW-Asia Business Advisory Council
Pricing and Costing: managing for a profitable business
(CD-ROM)
Quick Guide to Small Business Services (pdf)
Raising Finance – Fact Sheet
Risk Management Guide
Securing Our Manufacturing Future (pdf)
Small Business Banking Issues and Statistics (pdf)
Small Business Big Impact (pdf)
Small Business Big Impact 2004
Small Business Fact Sheets in Arabic x 6
Small Business Fact Sheets in Khmer x 6
Appendices
117
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Aquaculture case studies: Guide to Business Planning
– Aquabait Marine Worm Farm – a marine worm farm, NSW Clusters for Business Newsletter
Aquabait Pty Ltd, supplies ‘tube worms’ to bait and tackle Pricing and Costing
shops
Quick Guide to Small Business Services
– Clearwater Mulloway – an inland saline aquaculture venture
that breeds and harvests the mulloway fish which is sold to Securing our Manufacturing Future
restaurants Service Exports Toolkit
– Manton’s Black Pearl Oysters – a leading Indigenous oyster Small Business – Big Impact
farm enterprise established by the Manton family Small Business Banking: Issues and Statistics
– Namoi Valley Aquafarming – one of the biggest native fish Smallbiz e-news
farms in NSW
Winning Exports – Planning Guide
– Silver Perch – members of the NSW Silver Perch Growers
Association grow silver perch for the domestic market The Impact of e-commerce on export business
– Tailor Made – an established aquaculture venture called The Retail Tenancy Unit Dispute Resolution Kit
Tailor Made Fish Farms focusing on the grow-out of NSW - First for Food and Beverage Processing
Barramundi using recirculating aquaculture technology
Sydney, NSW – First for International Contact Centres
– Tathra Oysters – an oyster farm supplying some of Sydney
Sydney, NSW – First for Shared Services
and Melbourne’s finest restaurants.
Sydney, NSW – First for Funds Management
First for Forestry
Sydney, NSW – First for Foreign Exchange
First for Planted Forests
Financial Services – Growth industry profile
Building on Success
Sydney and NSW: First for Information and Communications
Business Relocation Guide
Technology
Brief on Finance for Small Business
Business First (Back issues)
Regional First (Back issues)
Appendix 23
Sydney Australia – Your business location
Replacing Imports – The advantages of sourcing supplies locally Research and Development
Funding Business Growth – A guide designed to help regional
enterprises access venture capital Throughout the reporting year, the Department
Converting the Rugby World Cup 2003 into business continued to provide funding support to the Hunter
DSRD employment information package Valley Research Foundation and the Illawarra Regional
DSRD employment application form
Information Service. Each organisation received funding
DSRD code of conduct
for the provision of regional information services which
support the Department’s regional investment attraction
BioBusiness update
efforts. These services include data on the Hunter and
NSW BioBusiness Program
– BTF (case study) Illawarra economies respectively, business conditions, the
– Cellabs (case study) labour market and other information relevant to the
– Portland Orthopaedics (case study) regions, and are highly valued by the Department and
– Vast Audio (case study)
– Objectivision (case study) its clients in the business and investment communities.
– Protech (case study)
– Ultraceuticals (case study)
– Vertical Orthotics (case study)
NSW Biotechnology Brochure
Innovation Australia
Strong Regions, Strong Future – Regional Development in NSW
Towns and Villages Futures Program 2004 approved projects
Main Street/Small Towns Program application form
Main Street/Small Towns Program approved projects 2003/2004
Aboriginal Business Newsletter
Better Solutions, Better Results
Brief on Business Networks
Brief on E-Commerce
Brief on Finance for Small Business
Brief on Information Technology
Business In NSW
Cleaner Production Self-Help tool
Directory of Aboriginal Business and Employment Programs
Exporting Newsletter
Appendices
Appendix 24
Risk Management and Insurance
Risk Management
The Department regularly reviews and updates as appropriate its
risk management policy. This process continues the Department’s
efforts to assess and manage risk. These will enhance the
achievement of the Department’s objectives and service delivery
through more effective staff involvement in applying risk
management techniques and incorporating risk management into
their daily responsibilities.
Insurance Activities
The Department is insured through the Treasury Managed Fund,
a self insurance scheme administered by the GIO. The coverage
provided by the scheme is all inclusive, and policies are held for
Workers Compensation, Commercial Motor Vehicles, Property,
Miscellaneous and Public Liability.
A summary of claims paid by the Managed Fund during the
2004-2005 financial year follows:
Policy No. of Claims Amount Paid Reserve Balance Recovered to Date Net incurred
$ $ $ $
Appendix 25
Senior Executive Service (SES)
Each SES Officer develops an annual performance agreement which sets out their principal responsibilities and tasks
for the year. Each SES Officer undergoes an annual formal assessment with the Director General of their outcomes
against the performance agreement. The assessment also takes into account their personal contribution to achieving
overall corporate objectives.
Senior Executive Service Officers as at 30 June 2005.
119
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Number of executive positions at each level 2003-2004 2004-2005
Level 1 1 1
Level 2 1 1
Level 3 5 5
Level 4 – –
Level 5 – –
Level 6 – –
Level 7 1 1
Female executive officers
Level 3 1 1
Level 2 0 1
Performance of SES officers Level Five and – assisting biotech companies commercialise new
above products and services and to expand into
Name: Loftus Harris international markets through the BioFirst
BioBusiness program
Position: Director General
– managing and conducting negotiations with major
SES LEVEL: 7
film and digital media companies to support
Remuneration: $346,190 production and post-production expansion in NSW
Period of Review: 1 July 2004–30 June 2005 – assessing the opportunities from a range of Free
Trade Agreements for NSW
The Minister for State Development indicated that Mr – leading contribution to the governance and
Harris met the performance criteria established for the directions of NICTA
position of Director General of the Department of State – ongoing promotion and support for small
and Regional Development. businesses in NSW including Aboriginal businesses
Specific achievements in 2004-2005 included: – ensuring the provision of quality services and
– developing and implementing strategies to attract support from the Department to the Minister for
global opportunities in the international financial State Development, Minister for Regional
services sector to Sydney Development and Minister for Small Business
– significant investment agreements with private – establishing and implementing processes to
sector firms in aerospace, defence, manufacturing ensure the Department operated within its
and financial services which have resulted in resource limitations
economic benefit for the State – establishing the Business Strategy Unit to lead and
– continuation of effective overseas business proactively manage strategic, corporate and
missions to promote the State economy and put business planning functions across the Department,
New South Wales exporters in direct contact with and, leading the Department’s ongoing corporate
overseas clients review, performance measuring, reporting and staff
– attracting and facilitating the Forbes CEO Global development processes.
Conference to be held in August/September 2005
– oversighting and implementing the Regional Film
and Food Tour initiatives to promote business
opportunities for regional towns and locations
Appendices
Appendices
121
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 26
Significant Committees Membership
Name Committee
Loftus Harris National ICT Australia (NICTA) – representative member; Commonwealth Standing Committee on
Regional Development; NSW Industry Capability Network – alternate Director to Minister for State
Development; NSW Infrastructure Council; NSW Information Industry Advisory Board; Small Business
Development Corporation; State Inter-Agency Greenhouse Network; NSW Wine Industry R&D Advisory
Council; CEOs’ Economic Development Forum; CEOs’ Network; Sydney Tourism Partners; State and
Territory CEOs’ Forum; Hunter Advantage Fund Assessment Committee; Illawarra Advantage Fund
Assessment Committee; Joint Consultative Committee
Perce Butterworth NSW Property Council Economic Development Committee; Illawarra Advantage Fund Assessment
Committee; Joint Consultative Committee; DSRD Audit and Review Committee; Department of
Commerce Central Corporate Services Unit Records and Information Management System
(RIMS) Steering Committee; Department of Commerce Central Corporate Services Unit
Client Senior Officer Group
Janine Ricketts State Contracts Control Board; DSRD Audit and Review Committee; NSW Business Licence Information
Service Steering Committee
Michael Cullen Illawarra Advantage Fund Assessment Committee; Hunter Advantage Fund Assessment Committee;
DSRD Audit and Review Committee; Chair of NSW Meat Industry Processing Restructuring Program
Steering Committee
Michael O’Sullivan Commonwealth, State and Territories Advisory Committee on Innovation; DSRD Audit and Review
Committee, The Bandwidth Foundry, Australian Synchrotron Research Program, Commonwealth,
State and Territories Advisory Committee on Innovation (CSTACI)
Warwick Glenn DSRD Audit and Review Committee
Leanne Joyce DSRD Audit and Review Committee; National Marketing Group
Julie Scott Small Business Ministerial Council Standing Committee; Aboriginal Economic Development Cluster
Working Group; DSRD Audit and Review Committee
Greg Beileiter WEST2000Plus Management Board
Gay Bryden Agribusiness Committee – Hunter
Paul Butler Greenhouse Benchmark’s Officer Group; NSW Greenhouse Network;
Energy Directions Inter-Agency Group
Eric Cantwell NSW Committee (Observer), Australia Arab Chamber of Commerce and Industry Inc
Ken Carlsund Minister’s Retail Leases Advisory Committee
Paul Chamberlain Statistical Coordination and Users Forum
Les Clements Project Control Group for Blue Mountains Cultural Centre in Katoomba, Contract Management
Committee for the Acquisition of Motor Vehicles
Paul Collits Standing Committee on Regional Development (SCORD) – National Research Network
Shane Coombe Committee for the Marketing of Australian Biotechnology (C-MAB); Australia – New Zealand Biotech
Alliance Working Group; AusBiotech NSW Branch Committee
Kevin Daly Committee Marketing ICT for Australia (CoMICTA)
Lynette Dorn Woman’s Development Committee
Sally Edwards Joint Consultative Committee; OH&S Workplace Committee
Robyn Faber OH&S Workplace Committee
Reg Fisk Employment Lands Planning Study Reference Group; Joint Consultative Committee
Suzette Gaff Hunter Community Renewal Scheme Directions Committee
Jeff Goodchild Cooks Cove Project Control Group
John Grady CCSU Internal Audit Committee (part year only); DSRD Audit and Review Committee
Jim Grant Riverina Murray Softwoods Working Group; Murray River Farm Forestry (Regional Plantation Committee);
Riverina Regional Telecommunications Advisory Board; Albury Environmental Technology Park
Steering Committee
Belinda Green Woman’s Development Committee
Leanne Grogan Illawarra Advantage Fund Assessment Committee
Jillian Hartley Woman’s Development Committee
Toni Hannon OH&S Workplace Committee
Vikki Hine NSW AusBiotech Branch Committee, NSW Medical Device Network Committee
Pat Hutton Joint Consultative Committee
Heather Irvine Board of Directors of Albury Wodonga Area Consultative Committee
Appendices
123
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 27 – Graduate Diploma in Public Administration
• Reg Fisk (Policy and Resources Division)
Staff Support Services
• Sally Edwards (Policy and Resources Division)
The Department continued its sponsorship of the
• Steven Kerlander (Industry Division)
Employee Assistance Program (EAP) that provides a
24-hour, seven day a week, independent counselling • Linda Taylor (Executive Support Unit)
service available to staff and their family members. The • Frances Beck (Policy and Resources Division)
Program provides assistance through a network of • Louise McMeeking (Investment Division)
qualified counsellors to support staff through a variety
• Martin Mansfield
of problems that may be home or work-related.
(Small Business Development Division)
The Department continued to recognise and support
– Executive Development Program
the need for its staff to balance home and work
responsibilities by providing flexible work options. • Roxanne Smith (Regional Development Division)
For information on the Department’s Graduate Program,
Exchange Program, Reward and Recognition Program
Appendix 28 and Career Mobility Programs, see Appendix 13.
125
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 31 – review of OH&S Policy and Plan
– review of Workers Compensation Policy
Workers Compensation and and procedures
Occupational Health and Safety
– provided accredited training to staff responsible
The Department continued to focus on providing a safe for return to work
and healthy working environment for its staff. – comprehensive management of workers’
The Department’s main goal is to prevent accidents and compensation claims and return to work program
injuries through the systematic identification and control – regular contact with staff and managers in the
of hazards in the workplace and in work practice. Where Workers Compensation claims process
a work related injury, incident or illness has occurred,
– improved follow up of ergonomics assessments
the Department has ensured the correct injury/incident
management, reporting, investigation, and review – facilitation of a Health Week program, covering
procedures are followed and that employees are issues of bullying, harassment, nutrition, eye care
provided with appropriate training. and fitness activities and including fun runs, yoga
and walking activities.
Achievements for the year included:
– quarterly meetings of the Department’s
OH&S Committee
– OH&S and Workers Compensation training including
advice and procedures about the implications of
legislation provided for supervisors and managers
– training on office ergonomics, principles of safe
driving and manual lifting
– ongoing provision of individual workplace
assessments for staff as required
– free flu vaccinations for staff
– training and appointment of First Aid Officers
as required
Access
127
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Access 126 Innovation and Technology Unit 18
Aboriginal Business Development Program 30 Internal Audit 111
Appendices 91 Investment Attraction and Development 8
Audit and Review Committee 3 Investment Division 25
Audited Financial Statements 49 Investment Promotion Activities 25
Audit Opinion 50, 68, 80 Land Disposal 111
Australian Technology Showcase 10, 18 Legislation 2
Biobusiness Program 32 Letter of Submission IFC
Biotechnology 20 Manufacturing 26
Business Growth 38 Major Assets 112
Business Strategy Unit 46 Major Works in Progress 112
Charter 2 Movement in Wages 109
Code of Conduct 91 NSW Innovation Council 92
Committee Membership 121 Objectives and Results 8
Committees Established or Abolished 122 Overseas Travel 112
Communications Unit 47 Payment of Accounts 113
Community Economic Development Conference 39 Performance Improvement 4
Consultancies 91 Performance of Executive Officer 120
Consumer Response 91 Policy and Resources Division 42
Controlled Entities 91 Policy Unit 42
Corporate Framework 3 Program Review 4
Corporate Governance 3 Promoting Regional NSW 40
Credit Card Use Certification 92 Privacy and Personnel Information 114
Culture, Recreation and Tourism 22 Publications and Promotional Material 115
Department Functional Structure 15 Purchasing Policy 123
Director General’s Report 5 Regional Development Boards 41
Disability Action Plan 92 Regional Development Division 36
Economic Evaluation and Statistics Unit 43 Regional Headquarters and Operations Centres 25
Equal Employment Opportunity 93 Research and Development 117
Ethnic Affairs Priorities Statement 95 Retail Tenancy Unit 48
Executive Support 48 Risk Management and Insurance 118
Executive Management Committee 3 Senior Executive Services 118
Financial Statements: Senior Management 16
– Department of State and Regional Development 50 Small Business Advisory Services 29
– Ministerial Corporation for Industry 68 Small Business Development Corporation 31
– Small Business Development Corporation 80 Small Business Development Division 28
Freedom of Information 95 Small Business Month 31
Governance Framework 3 Sports Infrastructure and Services and Special Events 23
Government Energy Management Policy 100 Staff Support Services 123
Grants to Non-government Community Organisations 101 Stepping Up Program 32
Guarantee of Service 108 Technology Diffusion 33
Highlights of the Year 8 The Year Ahead 14
Human Resources 44, 108 Trade Services 33
Hunter Advantage Fund 37 Training and Development 123
Illawarra Advantage Fund 37 Waste Reduction 123
Industry Development 21 Women’s Action Plan 124
Industry Division 17 Women in Business Program 29
Information and Communications Technology 26, 111 Workers’ Compensation 125
Other Annual Report requirements
Total Cost: report preparation $21,890
Materiality Complies
Table of contents Complies
Logical sequence Complies
Appropriate layout Complies
Legibility Complies
Appropriate captions Complies
Size ISO A4 Complies
Extension of time granted None
Exemptions from provisions of Act None
Distribution to Parliament Complies
Availability to the public Complies
Price determinations None
Delays to programs None significant
Economic factors affecting
achievement of objectives None significant
Major problems and issues None significant
Matters that could impact
on the succeeding year None significant
ISSN 1327-8177
Published by the NSW Department
of State and Regional Development
Level 35, Governor Macquarie Tower
Sydney NSW 2000