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P 2 DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY ANNUAL REPORT 2013-14 www.statedevelopment.sa.gov.au

A globally competitive, prosperous, and sustainable South Australia.

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DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

ANNUAL REPORT 2013-14

P 4 DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY ANNUAL REPORT 2013-14

DEPARTMENT OF STATE DEVELOPMENT

ABN 83 524 915 929

The Conservatory 131-139 Grenfell Street ADELAIDE SA 5000

GPO Box 1264 ADELAIDE SA 5001

DX 452

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

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

ISBN 978-0-9872018-1-2

1 JULY 2013 - 30 JUNE 2014

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Dear Ministers

I have pleasure in submitting to you the Department for Manufacturing, Innovation, Trade, Resources and Energy Annual Report and financial statements for the year ended 30 June 2014. The report has been prepared in accordance with the requirements of the Public Sector Act 2009 and the Public Finance and Audit Act 1987.

Yours sincerely

Dr Don Russell Chief Executive Department of State Development 30 September 2014

THE HONOURABLE SUSAN CLOSE MP

Minister for Manufacturing and Innovation Minister for Automotive Transformation

Level 6 45 Pirie Street ADELAIDE SA 5000

THE HONOURABLE IAN HUNTER MLC

Minister for Water and the River Murray

9th Floor Chesser House 91-97 Grenfell Street ADELAIDE SA 5000

THE HONOURABLE TOM KOUTSANTONIS MP

Minister for State Development Minister for Mineral Resources and Energy Minister for Small Business

Level 8 State Administration Centre 200 Victoria Square Adelaide SA 5000

THE HONOURABLE MARTIN HAMILTON-SMITH MP

Minister for Investment and Trade

Level 4 11 Waymouth Street Adelaide SA 5000


01 CHIEF EXECUTIVE’S FOREWORD P 1

02 ABOUT THE DEPARTMENT P 3

03 STRATEGIC CONTEXT P 9

04 THE CREATION OF THE DEPARTMENT OF STATE DEVELOPMENT P 15

05 DELIVERING RESULTS – HIGHLIGHTS OF THE YEAR P 17

06 ACHIEVEMENTS BY STRATEGIC OBJECTIVE P 19

Strategic Objective 1: Leverage the value from our major projects for all South Australians P 19 Strategic Objective 2: Attract and facilitate targeted business and infrastructure investment P 21 Strategic Objective 3: Enable accessible and sustainable energy and resources P 22 Strategic Objective 4: Drive the transition to high-value innovative manufacturing P 25 Strategic Objective 5: Deliver and advocate trusted regulation and targeted programs P 27 Strategic Objective 6: Drive and encourage innovation across industry and Government P 30 Strategic Enablers P 32

07 LOOKING AHEAD P 35

08 ABBREVIATIONS P 37

09 APPENDICES P 39

9.1 Legislation administered by DMITRE P 39 9.2 Regional impact assessment P 40 9.3 Managing risk and fraud P 40 9.4 Website listing P 40 9.5 Reconciliation statement P 41 9.6 Management of human resources P 41 9.7 Reporting against the Carer Recognition Act 2005 P 48 9.8 Reporting against the Whistle-blowers Protection Act 1993 P 48 9.9 Asbestos management P 48 9.10 Greening of Government Operations P 49 9.11 Urban Design Charter P 50 9.12 Industry Participation Authority P 50 9.13 Freedom of Information P 50 9.14 Consultants P 53 9.15 Overseas travel P 59 9.16 Accounts payments performance P 63 9.17 Boards and committees P 63

10 FINANCIAL STATEMENTS P 65

CONTENTS

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LIST OF FIGURES

Figure 1: DMITRE high-level functional organisational chart as at 30 June 2014 P 5

Figure 2: GSP and GDP growth (percentage against previous year) P 11

Figure 3: South Australia’s international trade in goods and services P 11

Figure 4: Minerals and petroleum exploration expenditure P 12

Figure 5: Minerals and petroleum production P 12

Figure 6: Energy efficiency of government buildings P 13

Figure 7: Carbon emissions intensity of South Australia’s electricity generation P 13

LIST OF FIGURES / LIST OF TABLES

LIST OF TABLES

Table 1: Work health and safety prosecutions, notices and corrective action taken P 41

Table 2: Gross workers compensation expenditure for 2013-14 compared with 2012-13 P 42

Table 3: Meeting safety performance targets P 43

Table 4: Number of Aboriginal and/or Torrens Strait Islander employees as at 30 June 2014 P 44

Table 5: Aboriginal and/or Torrens Strait Islander employees by salary bracket at 30 June 2014 P 44

Table 6: Cultural and linguistic diversity as at 30 June 2014 P 45

Table 7: Number of employees with ongoing disabilities requiring workplace adaptation P 45

Table 8: Total number of employees (staff paid as at 30 June 2014) P 45

Table 9: Employee numbers by gender P 45

Table 10: Status of employees in current positions P 46

Table 11: Employees (persons) by salary bracket and gender P 46

Table 12: Number of employees by age bracket by gender as at 30 June 2014 P 46

Table 13: Number of executives by gender classification and status as at 30 June 2014 P 47

Table 14: Voluntary flexible working arrangements by gender P 47

Table 15: Average days leave per full time equivalent employee P 47

Table 16: Employees separated and recruited in 2013-14 P 47

Table 17: Documented review of individual performance development plan P 47

Table 18: Leadership and management training expenditure P 48

Table 19: Accredited training packages by classification P 48

Table 20: Annual asbestos risk reduction report 2013-14 P 48

Table 21: Performance against annual energy use targets P 49

Table 22: Number and overall expenditure of consultancies engaged P 53

Table 23: Overseas travel P 59

Table 24: Accounts payable performance for the year to 30 June 2014 P 63


South Australia’s diverse economic and industrial base supports thousands of businesses, including some of the world’s leading companies in minerals and energy, defence and aerospace, food and wine and information and communications technology, and provides jobs and security for workers and families across the state.

During the reporting period, the Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) was the lead agency for identifying and pursuing opportunities for growth aligned with the State Government’s seven strategic priorities, particularly ‘growing advanced manufacturing’ and ‘realising the benefits of the mining boom for all South Australians’.

DMITRE has in recent years worked closely with business and research partners locally, and in key markets, to develop strategies and programs to achieve progress in these areas.

Since it was released nearly two years ago, the Manufacturing Works strategy – which aims to transform the state’s manufacturing capabilities through helping manufacturers to diversify and increase their innovation capacity - has had 190 manufacturing firms participate in its programs and resulted in 200 new jobs. Of these 190 firms, 70 per cent are exporters, a proportion seven times higher than the state average for the manufacturing sector, indicating that companies with the potential and desire for change are choosing to engage with the department and its programs.

Manufacturing Works programs included the Innovation Voucher Program, which has had 36 applicants approved for funding; the Small Business Innovation Research Pilot Program, which involved a trial with SA Water for firms to find new ways to recover and reuse phosphorus from wastewater at the Bolivar Wastewater Treatment Plant; and the SME Innovation Capacity Program, which has provided 39 companies with targeted training in business transformation, new business models and manufacturing-related services. One participant in the Innovation Capacity Program has reported an increase in revenue of 40 per cent, while another has restructured to focus on customer innovation since its involvement.

The redevelopment of Tonsley in Adelaide’s south continues to be a focus of work across the department. Signostics Ltd, Basetec Services Pty Ltd and ZEN Technologies (Power and Energy) Pty Ltd have joined Siemens Ltd, Tier5 Pty Ltd, Flinders University and TAFE SA in committing to Tonsley during this financial year.

The redevelopment of Tonsley aims to:

• provide a focal point for innovative manufacturers

• foster links between manufacturers and research and education institutions to foster commercialisation of industry-focused ideas

• attract more than $1 billion in business and investment to South Australia in sectors aligned with our economic and natural assets

• support innovation and entrepreneurs.

CHIEF EXECUTIVE’S FOREWORD01

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Tonsley is providing opportunities for business, investment and research in mining and resources, clean technologies and renewable energy, health and medical technologies, and sustainable construction. The co-location of Flinders University and TAFE SA on the site is ensuring our education partners are aware of the particular demands of these sectors, in a rapidly-changing industrial and economic environment.

Tonsley will be the focus of activities of the Mining and Petroleum Services Centre of Excellence (CoE), including the Onshore Petroleum Training Facility. The CoE supports innovative ways to drive growth within the resources sector, promoting local solutions that will unlock South Australia’s mineral and energy wealth, and will boost the state’s competitiveness within the global resources sector.

It will support the development of and local participation in local and global supply chains, creating business and jobs. By providing high value-added products and services to the resources sector, the CoE will generate growth in both ‘growing advanced manufacturing’ and ‘realising the benefits of the mining boom’, and support state-wide objectives in innovation and job creation.

The Onshore Petroleum Training facility will support the development of South Australia’s deep natural gas sector, which is strongly placed to deliver billions of investment dollars to the state. The Roadmap for Unconventional Gas Projects in South Australia, which we released in December 2012 as a result of ongoing industry engagement, continues to support exploration and investment in this sector.

Likewise, the Plan for Accelerating Exploration (PACE) 2020 – a $10.2 million expansion of the South Australian Government’s successful PACE initiative – continues to boost resource investment. In 2013 the state attracted mineral and petroleum resource exploration spending of more than $512 million, reflecting South Australia’s international standing as an exploration destination. This investment continues to create opportunities for industry and the community, through supply chains and job creation.

As a department we have identified that targeted relationships with key international partners will best support our ambitions to generate export growth and investment. Our engagement strategies with China and India reinforce the government’s determination to build strong, productive and long-term relationships with these economic superpowers that will maximise the benefits locally and abroad for industry, business and the community. This year, trade missions to Shandong Province – our focus in China – and India have created and expanded links with South Australian businesses looking to increase operations in these markets.

DMITRE also supports businesses, communities and living affordability for all South Australians through its work in securing access to electricity and other energy sources. The upgrade to the Heywood Interconnector (the South Australia to Victoria transmission interconnector) completed this year, will boost the capacity of the interconnector from 460 megawatts (MW) to 650 MW, increasing energy flows across the South Australian-Victorian border. An upgraded interconnection allows South Australia to increase its imports of cheaper power when it is available interstate, helping to reduce the level and volatility of extreme wholesale prices.

DMITRE has maintained a strong commitment to fostering a productive and inclusive workforce and culture. The implementation of a new Performance Management Framework, along with comprehensive training across the department, are ensuring our staff develop in their roles and perform to the best of their abilities, and that we are able to attract and retain highly skilled and motivated employees.

DMITRE staff members are also looking forward to the merger with the Department of Further Education, Employment, Science and Technology (DFEEST) and other government units that will create the new Department of State Development. I am confident the principles embedded within our culture will continue to drive performance and positive outcomes within the new agency and support its efforts in stimulating growth.

Geoff Knight Chief Executive 30 June 2014

01 CHIEF EXECUTIVE’S FOREWORD


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

In the reporting year, DMITRE led two of the South Australian Government’s Seven Strategic Priority areas: Realising the benefits of the mining boom for all and Growing advanced manufacturing. The agency also led efforts to achieve eleven targets of South Australia’s Strategic Plan (SASP), and facilitated the sustainability of small and medium enterprises across the state.

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

DMITRE VISION

A globally competitive, prosperous, and sustainable South Australia.

DMITRE MISSION

We create value for South Australia by:

• connecting industry, community, investors and opportunities

• enabling greater innovation and industry capability

• delivering an effective regulatory environment.

DMITRE STRATEGIC OBJECTIVES

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

• Attract and facilitate targeted business and infrastructure investment

• Enable accessible and sustainable energy and resources

• Drive the transition to high-value innovative manufacturing

• Deliver and advocate trusted regulation and targeted programs

• Drive and encourage innovation across industry and government.

DMITRE STRATEGIC ENABLERS

• A high-performing workforce and culture

• Effective and trusted stakeholder engagement

• High-value data and research

• Targeted marketing and communication

• Streamlined processes, systems and practices.

DMITRE VALUES

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

ABOUT THE DEPARTMENT02

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

• we are collaborative

• we respect others

• we act ethically

• we seek excellence

• we value individuals and their wellbeing.

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

Building on our core values, we will be:

• results driven

• progressive

• adaptive

• empowered

• commercially savvy.

STRATEGIC ALIGNMENT

THE SOUTH AUSTRALIAN GOVERNMENT’S SEVEN STRATEGIC PRIORITIES

In 2012 the State Government identified seven strategic priorities for South Australia’s future. These priorities are areas where we can make the most difference to the lives of everyday working people and the most difference to the future prosperity of our state.

These priorities are listed below:

• Creating a vibrant city

• An affordable place to live

• Every chance for every child

• Growing advanced manufacturing

• Safe communities, healthy neighbourhoods

• Realising the benefits of the mining boom for all

• Premium food and wine from our clean environment

These priorities recognised that South Australia works best when government works in partnership with business and community.

SOUTH AUSTRALIA’S STRATEGIC PLAN

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

DMITRE is the lead agency for 11 SASP targets:

T37 Total exports Increase the value of South Australia’s export income to $25 billion by 2020 (baseline: 2002 03)

T38 Business investment Exceed Australia’s ratio of business investment as a percentage of the economy by 2014 and maintain thereafter (baseline: 2002-03)

T41 Minerals exploration Exploration expenditure in South Australia to be maintained in excess of $200 million per annum until 2015 (baseline: 2003)

T42 Minerals production and processing Increase the value of minerals production and processing to $10 billion by 2020 (baseline: 2002 03)

02 ABOUT THE DEPARTMENT



Figure 1: DMITRE high-level function chart as at 30 June 2014

Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE)

Minister for Manufacturing, Innovation and

Trade

Minister for Water and the River Murray

Chief Executive DMITRE

Advanced Manufacturing

Council

Resources and Energy;

Olympic Dam Taskforce

Strategy People & Culture

Investment, Trade and Strategic Projects

Manufacturing and Innovation

Premier of South Australia

O�ce for the Public Sector

Economic Development

Board

Minister for Mineral Resources

and Energy

Minister for Small Business

DMITRE FUNCTIONAL STRUCTURE

The October 2011 Machinery of Government change resulted in a realignment of ministerial responsibilities and government departments and the formation of DMITRE. In 2013-14 the department had four main functional areas. These areas are discussed in greater detail below.

T60 Energy efficiency – dwellings Improve the energy efficiency of dwellings by 15 per cent by 2020 (baseline: 2003-04). Milestone of 10 per cent by 2014

T61 Energy efficiency – government buildings Improve the energy efficiency of government buildings by 30 per cent by 2020 (baseline: 2000 01). Milestone of 25 per cent by 2014

T64 Renewable energy Support the development of renewable energy so that it comprises 33 per cent of the state’s electricity production by 2020 (baseline: 2004-05). Milestone of 20 per cent by 2014

T65 Green power Purchase renewable energy for 50 per cent of the government’s own electricity needs by 2014 (baseline: 2010)

T66 Emissions intensity Limit the carbon intensity of total South Australian electricity generation to 0.5 tonnes of carbon dioxide per megawatt-hour (CO2/MWh) by 2020 (baseline: 2011)

T94 Venture capital Achieve a cumulative total of 100 private equity investments into South Australian companies between 2011 and 2020 (baseline: 2010 11)

T98 Business research expenditure Increase business expenditure on research and development to 1.5 per cent of GSP by 2014, and increase to 2.0 per cent by 2020 (baseline: 2000 01).

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MANUFACTURING AND INNOVATION GROUP

The Manufacturing and Innovation Group worked with a wide range of stakeholders, including manufacturers, industry associations, unions, research entities and other government agencies, to support and facilitate the growth of high-value, advanced manufacturing in South Australia. In 2013-14, the division’s key focus areas included:

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

• support of key stakeholders, developing industry growth and development models to leverage South Australia’s comparative and competitive advantages in resources, food and wine, forestry, automotive, medical technology and defence

• facilitation of awareness and adoption of emerging enabling technologies and capabilities such as nanotech, photonics and 3D printing

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

• the support of niche areas within the Knowledge Intensive Services sector, such as modelling and simulation, through sponsorship of a knowledge bank of industry intelligence and global opportunities

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

• leading the Tonsley Project, where $253 million is being invested in land and infrastructure development, to provide a platform for economic growth, industry transformation and investment attraction.

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

The Mining Industry Participation Office developed strategies to increase local industry participation in mining supply chains, and review opportunities for information and communications technologies in mining.

INVESTMENT, TRADE AND STRATEGIC PROJECTS DIVISION

Investment, Trade and Strategic Projects supported sustainable economic growth by building South Australia’s competitive advantage. Its five key work areas were:

• case management services for government and proponents of major projects, to ensure efficient delivery of significant projects

• active engagement with key businesses within South Australia to ensure strong working relationships with government through an account management approach

• development and management of international investment and trade arrangements, including facilitating export market opportunities for South Australian businesses through the TradeStart Program

• support for the Resources and Energy Sector Infrastructure Council who provided an advisory and coordination role to the South Australian Government and the private sector on resource development and energy infrastructure matters

• participation in the business and skilled migration programs, by providing nominations under the state-nominated visa programs to eligible candidates and promotion of South Australia internationally as the destination of choice within Australia for business and skilled migrants.

Investment, Trade and Strategic Projects’ geographical reach spans regional South Australia, interstate and international markets, and the directorship works closely with the private sector and all tiers of government.

RESOURCES AND ENERGY GROUP

The Resources and Energy Group is responsible for realising the South Australian Government's strategic priority ‘Realising the benefits of the mining boom for all South Australians’ and associated South Australia’s Strategic Plan targets.

The achievement of these outcomes was underpinned by the successful Plan for Accelerating Exploration (PACE) 2020 programs – PACE Exploration, PACE Mining, PACE Global and PACE Energy – and the Roadmap for Unconventional Gas in South Australia, which will deliver outcomes that continue to attract major investment, build South Australia’s international profile and strengthen investor confidence in the state’s resources sector.

The Resources and Energy Group comprises the Mineral Resources, Energy Resources, and Energy Markets and Programs divisions – the latter incorporating the Office of the Technical Regulator – and the Olympic Dam Task Force.



MINERAL RESOURCES

The Mineral Resources Division’s aim is to maximise the community’s net benefits from the state’s ownership of the rights to mineral resources. It is responsible for driving mineral exploration, development and production.

Specifically the objectives of Mineral Resources are to:

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

• manage the state’s mineral resources through best practice regulation

• provide comprehensive, high-quality geoscientific data and advice

• develop sustainable practices for exploration and development

• facilitate major mining projects through streamlined approval processes

• deliver an effective and efficient policy and legislative framework

• collect royalties with trustworthy compliance frameworks.

The Division delivers an integrated framework for industry across all areas of development, from initial exploration and discovery to operating mines, and eventually to mine closure and rehabilitation through delivery of leadership, policy, case management, advice and regulation for the mineral resources sector. Key focus areas for the Division include:

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

• facilitating the successful case management of mining development proposals

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

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

Energy Resources

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

The Division delivers an integrated framework for industry and ensures the sustainable development of South Australia’s energy resources by:

• the attraction of private sector exploration investment that will lead to new commercial petroleum, geothermal resource and geologic gas storage discoveries and developments

• regulation of the petroleum, geothermal and geologic gas storage exploration and development activities in a manner acceptable to both the community and industry

• provision of policy advice to all stakeholders on petroleum, geothermal and gas storage resources and their regulation in South Australia.

Key functions of the division included:

• attraction of responsible exploration investment to facilitate development and maximise potential economic return to the state

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

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

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

• implementating recommendations from the Roadmap for Unconventional Gas, providing a single contact point for mineral and petroleum royalty management, advice, assurance, collection, reporting and administration.

Energy Markets and Programs

The Energy Markets and Programs division is a key provider of advice on energy frameworks and programs that seek to deliver a competitive, sustainable, safe, reliable and efficient supply and use of energy, for the benefit of the South Australian community.

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Key functions of the division included:

• providing of policy advice on gas and electricity market reform and sustainability issues for the long term interests of South Australian energy consumers

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

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

• providing energy advisory services to South Australian households and organisations

• developing and delivering energy efficiency demand management policies and programs

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

• monitoring and managing emergency events involving energy shortages.

Olympic Dam Task Force

The Olympic Dam Task Force provides the single entry point into government for specialised facilitation of resource sector projects that are significant in terms of size and complexity. The Task Force guides proposed projects through government policy, planning, technical, legal, financial and environmental requirements, to enable approval and implementation. In 2013-14 these projects included BHP Billiton’s Olympic Dam expansion, Nyrstar’s proposed Port Pirie Smelter transformation and major expansion of Arrium’s Whyalla port.

STRATEGY, PEOPLE AND CULTURE

The Strategy, People and Culture Group are responsible for the provision of business support, governance and statutory reporting services to DMITRE.

In 2013 the Strategy, People and Culture Group underwent an organisational review to enable the delivery of strategic priorities. The Strategy People and Culture review was driven by the requirement to support a department the size of DMITRE, with commensurate budget and delivery pressure. A sustainable support model was implementing which comprised seven divisions; Communications, ICT Strategy and Programs, Executive Services, Finance, People and Culture, Governance and Business Services, and Strategic and Economic Policy. Key functions of the Group include:

• provision of administrative support and advice to the Chief Executive and the Senior Executive Group, coordination of cross-agency projects, management of correspondence from ministers’ offices related to their portfolio responsibilities, and contributions to the achievement of DMITRE’s strategic objectives

• provision of policy research, economic analysis and community engagement services

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

• provision of a consistent, high-quality and innovative communications approach

• working with ministers and across the agency to support and coordinate departmental marketing initiatives, media management, publications, events and online activities

• coordination of DMITRE’s input into the SASP and the High Performance Framework, and leading the department’s risk management and Freedom of Information functions.


South Australia remains well-placed with significant economic potential in a growing Asian market from which to drive prosperity from its resource base, industry capabilities and efficient economic infrastructure. The diversity and quality of the state’s mineral and energy resources, along with its proximity to Asia and developing links with Asian countries, are creating vast opportunities and will continue to do so into the future. The South Australian Government has a key role to play in maximising the economic development and social benefits arising from these opportunities, and in supporting business and industry as they pursue carefully selected avenues for diversification, competitiveness and growth.

However, the state is also experiencing a number of structural changes, compounded by cyclical pressures. The most high profile of these is the closure of the automotive sector, played out locally when GM Holden Ltd announced its withdrawal from Australian manufacturing in 2017.

Faced with both challenges and opportunities related to continuing global economic uncertainty and growing Asian markets, the State Government introduced Building a Stronger South Australia: Our Jobs Plan to assist the manufacturing transition, and providing a training and support strategy, through a coordinated approach to supporting workers directly affected.

Despite these challenges, the South Australian economy is still resilient with growth evident. One important indicator of our progress has been record level exports. The state recorded its highest ever twelve month export value in the year to May 2014 totalling $12.4 billion. This was an increase of 18.0 per cent ($1.9 billion) from the previous year.

The evidence of record levels of exports from the state, confirms the benefits of our trade strategy to capitalise on links with India and China, through the India and China engagement strategies. These strategies highlight how government and industry can partner to deliver mutually beneficial outcomes.

Beyond the current focus, additional effort will be put onto South East Asia. The next trade strategy to be developed will be modelled on the China and India strategies and will focus on Indonesia, Malaysia, Singapore and then Vietnam.

To sustain resource development, South Australia has been the driving force behind the development of a National Multiple Land Use Framework for the Australian resources and energy sector which has recently been acknowledged by the Commonwealth Government’s Productivity Commission inquiry report on non-financial impediments to mineral exploration1.

The Department for Manufacturing, Innovation, Trade, Resources and Energy is now developing a Multiple Land Use Framework for introduction in South Australia. The Framework will:

• encourage more efficient and effective land use outcomes in this state

• improve the transparency and consistency of decision-making, and

• ensure communities recognise the potential benefits of alternative land use, particularly from traditional agribusiness to minerals and energy development.

In the past financial year South Australia’s mineral and petroleum exports were valued at about $4.2 billion and accounted for 38 per cent of the state’s exports. South Australia’s mineral and petroleum production value exceeded $6 billion.

DMITRE’s support for resources exploration is underpinned by investment initiatives such as the suite of programs offered under the PACE 2020 banner, and the bringing forward of development of new discoveries supported through our dedicated case management and one-stop-shop approach to streamlined approvals for major projects.

By way of example, the recent opening of the Four Mile Uranium Mine Program in the state's Far North highlights the continued importance of job creation through the state's minerals and energy resources sector.

1 Productivity Commission Inquiry Report No. 65: Mineral and Energy Resource Exploration (27 September 2013)

STRATEGIC CONTEXT03

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Our unconventional gas resources are attracting world attention. South Australia is home to Australia’s largest onshore oil and gas province in the Cooper Basin, which surveys suggest may hold more than 200 000 petajoules of unconventional gas – more than 30 times the production from the Basin to date. New exploration methods and innovative technologies have unlocked fresh sources of unconventional gas. This surge in activity has been supported by the Roadmap for Unconventional Gas, the blueprint driven by DMITRE for the sector’s development.

The Resources and Energy Sector Infrastructure Council has established a very successful partnership between government and industry and has delivered strategic plans for development of critical resource infrastructure, including bulk minerals export ports, rail linkages and options for provision of power and water for major resource development regions of the state.

Similarly the Resources and Engineering Skills Alliance (RESA) has established a strong track record in brokering specific resources skills and training as well as providing well-researched scorecards predicting the number and type of skills required for the growing Industry.

The Mining Industry Participation Office (MIPO) has been particularly successful in identifying gaps in local industry’s capacity to meet minerals and energy investors’ demands in mining-related equipment and technology. MIPO continued to identify and recommend research and development projects which support growing mining and energy service companies.

The establishment of the Onshore Petroleum Centre of Excellence to drive the development of products and services required by South Australia’s energy investors is a significant milestone.

This work is being coordinated by the Mining and Petroleum Services Centre of Excellence, which has already produced a national ICT Roadmap for Minerals and Energy in conjunction with CSIRO and private partners.

These projects have contributed to a significant expansion of exploration and a four-fold increase in the number of mines operating in the state in the last decade. Mineral and petroleum exploration expenditure totalled $523 million in 2013, helping to bring forward a healthy inventory of resource projects.

Beyond the resources sector, DMITRE has also worked together with South Australian businesses, industry and across government to assist industry to become more flexible, innovative and responsive to new and emerging trade and investment opportunities.

Given the significant structural pressures on the state economy, at the heart of DMITRE’s approach has been the vision to transform South Australia’s manufacturing industry into one that provides a sustainable contribution to our economy in the long term, contributing to community wellbeing and quality of life.

To this end, Manufacturing Works was developed after intensive industry and community consultation and under the guidance of Professor Göran Roos, Chair of the Advanced Manufacturing Council, to enhance the capacity of manufacturers to innovate. Under the Manufacturing Works strategy, DMITRE continues to interact with manufacturers in automotive, timber, health and medical devices, minerals and energy technology and equipment, food and wine, and defence to:

• increase innovation, diversity and productivity

• make our state more attractive to investors

• build business opportunities and exports, and

• help create jobs.

Work completed under the strategy over the past eighteen months has made significant headway in assisting local manufacturers in understanding what they must do to become and remain competitive.

The strategy includes innovative approaches such as the Innovation Vouchers Program and the Small Business Innovation Research Pilot Program, and has a focus on supporting centres of excellence and industry clusters.

DMITRE recognises that success in innovation – in thinking, in business practices and in seeking opportunities for growth – is based on the value of building connections between manufacturing, research and government.

These connections with institutions, such as the Institute for Photonics and Advanced Sensing at the University of Adelaide, will ultimately result in the development of commercially viable products and services, which contribute to the development of new markets, new customers, and even new industries.

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

03 STRATEGIC CONTEXT



Figure 3: South Australia’s international trade in goods and services ABS Cat No 5220.0

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KEY ECONOMIC INDICATORS

ECONOMIC GROWTHLinked to SASP T35

Figure 2: GSP and GDP growth (percentage against previous years) ABS Cat No 5220.0

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

In order to continue to compete, it will be necessary for South Australia’s workers and businesses to increase their productivity by incorporating new business models, processes and technologies that push their products and services up the value chain.

Technological progress and industry innovation lead to sustained economic growth and productivity. The transformation of knowledge, combined with business creativity, will lead to new products and market opportunities

South Australia’s goods exports increased by 15.4 per cent in 2013 14 to a record value of $12.4 billion. This was driven by continued growth in minerals and agricultural commodities. The value of trade in services remained steady at around $2 billion annually.

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MINERALS EXPLORATION AND PRODUCTIONLinked to SASP T41 and T42

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

Figure 5: Minerals and petroleum production Source: DMITRE

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While minerals exploration expenditure fell in 2013, the value of exploration expenditure for petroleum resources increased by 31 per cent to almost $400 million.

In 2012-13 the value of minerals production was $4.85 billion, while processing accounted for $1.07 billion. The value of mineral production has experienced considerable growth in recent years with the current value almost 5 times greater than the 2002-03 baseline.



ENERGY EFFICIENCY AND EMISSIONS INTENSITYLinked to SASP T61 and T66

Figure 6: Energy efficiency of government buildings Source: DMITRE

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

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In 2012 13, the energy efficiency of South Australian Government buildings improved by around 14 per cent since 2006 07.

The carbon intensity of total electricity generation has steadily declined since 2005 and is on track to achieve the SASP target of 0.5 tonnes of CO2/MWh by 2020. This target measures the total amount of carbon dioxide equivalents emitted per unit of electricity generated at power stations.

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The South Australian Government has merged the Department of Further Education, Employment, Science and Technology (DFEEST), the Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE), the Office of the Economic Development Board of South Australia, Arts SA, Aboriginal Affairs and Reconciliation, Invest in South Australia, and Health Industry South Australia (HealthInSA) to become the Department of State Development. The creation of the department on 1 July 2014 provides an opportunity to harness synergies around productivity, innovation, economic development, employment, regional development and ensuring skills are closely aligned to the needs of industry.

The new department allows for a more collaborative approach on a range of matters. These include:

• support for the automotive sector

• innovation and commercialisation initiatives

• science, technology, engineering and maths skills

• skilled migration

• centres of excellence in resources and manufacturing

• the growing resources and energy portfolio

• advanced manufacturing

• investment attraction.

Aboriginal Affairs and Reconciliation will continue to be the South Australian Government's lead agency on Aboriginal affairs. The inclusion of this division in the department will allow a greater focus on Aboriginal economic development. This will result in more skills development, jobs creation, business development and sustainable employment for Aboriginal people.

The department will also recognise the important social and economic contributions of the Arts and will concentrate on innovation and growth in the creative industries as well as high technology sectors including photonics and biotechnology. Expanding science and research development will have a significant impact on economic growth in South Australia.

The Department of State Development will position South Australia to take advantage of our high growth, high value sectors, including mineral and resources, information and communications technology, defence, agriculture, advanced manufacturing and renewable energy. The inclusion of HealthInSA allows the department to bring together the state’s cutting edge, manufactured medical technologies and capacity to advance health related capabilities and industries.

The Department of State Development will focus on innovation to assist the transition of manufacturing to high value added activities that compete on value for money, not solely on cost. With funding from the Commonwealth Government’s Growth Fund, the department will continue to implement the automotive transformation strategy for South Australia, as announced in the government’s Building a Stronger South Australia: Our Jobs Plan initiatives.

Given responsibility for the state’s investment and trade, the department will work with industry to further trade and the internationalisation of our economy. Synergies have been created through the inclusion of Invest in South Australia.

The creation of the Department of State Development will better position South Australia to realise the potential of our natural and economic assets. The department will have the capacity to expand beyond our state borders to seek investment partners in Asia, and other growth-leading economies in our region. Expansion of the Olympic Dam Task Force will facilitate the proposed expansion of the Olympic Dam mine and provide BHP Billiton with a single entry point to government.

THE CREATION OF THE DEPARTMENT OF STATE DEVELOPMENT 04

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04 THE CREATION OF DEPARTMENT OF STATE DEVELOPMENT


• Finalised the delivery of the State Government’s support package to Nyrstar, securing a project to transform the Port Pirie-based smelter to a poly-metallic recovery and processing facility.

• Commenced the Automotive Supplier Diversification Pilot Program with three South Australian based automotive suppliers.

• Delivered Year 1 of Plan for Accelerated Exploration (PACE) Frontiers two year program designed to accelerate exploration in the Woomera Prohibited Area (WPA) and surrounding regions.

• Released a comprehensive Gawler Craton (WPA) atlas and data package.

• Commenced the Automotive Supplier Diversifcation Program to support existing suppliers seeking to diversify out of the automotive sector into alternate sectors.

• Case-managed the expansion of Arrium Ltd’s iron ore mining and export operations.

• Gained industry endorsement of the Tonsley redevelopment project as evidenced by 16 200 m2 of industrial land and 35 000 m2 of education land being committed to investors just two years into a 20-year project.

• Facilitated BHP Billiton’s Olympic Dam Expansion project re-scoping, including a $650 million expenditure commitment to 2016 for on-site works, investment in mining services industry development, environmental initiatives, expansion of Aboriginal opportunities, and new technology studies.

• Released the South Australian Cellulose Value Chain Technology Roadmap for short-, medium- and long-term feasible and sustainable market opportunities for higher value added forestry activities in the Limestone Coast region of South Australia.

• Facilitated the Major Development Declaration for the proposed Braemar Infrastructure Pty Ltd’s Braemar Bulk Export Project for iron ore in the Yorke and Mid North region.

• Supported the co-administration of rounds 2 and 3 of the Automotive New Markets Program.

• Delivered the Resources and Energy Sector Infrastructure Council’s Strategic Plan priorities.

• Released the ICT Roadmap for Minerals and Energy Resources that provides direction for the provision of innovative ICT based solutions for the resources sector.

• Built an awareness of the state’s business environment and investment opportunities, through an integrated communications program, the targeted interstate investment business awareness campaign and the release of the Major Developments Directory 2013/14.

• Supported South Australian manufacturing companies in meeting the supply demands of the state’s mining and resources projects, including unconventional gas, through the Mining Industry Participation Office.

• Completed the installation of an additional one megawatt diesel generator, two additional diesel storage tanks and an expanded building at the Central Powerhouse, Anangu Pitjantjatjara Yankunytjatjara (APY) Lands.

DELIVERING RESULTS – HIGHLIGHTS OF THE YEAR 05

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• Completed a comprehensive automotive supply chain review of Tier 1, Tier 2 and Tier 3 automotive supply chain firms, including a spatial analysis to assess the impact of the closure of GM Holden’s Elizabeth plant.

• Delivered Year 4 of the PACE 2020 programs, targeting under-explored regions, including a major crustal seismic and magnetotelluric survey in the far west and a major regional airborne geophysical survey in the state’s Far North.

• Granted 231 mineral exploration licences covering 103 838 km2 in 2013.

• Continued to lead at a global level in Geoscientific Data Delivery through the South Australian Resources Information Geoserver with over 400 spatial datasets on all aspects of resource information available 24/7.

• Facilitated $127 million worth of contracts, with over $103 million of those going to South Australian-based companies, via the Industry Capability Network South Australia.

• Initiated the attraction of exploration capital and further investment in the offshore South Australian Bight Basin, attracting approximately $1.2 billion in Exploration Permits for petroleum over the five years to 2016.

• Completed a review of the Residential Energy Efficiency Scheme, which resulted in extending the scheme until 2020 and expanding it to small business.

• Targeted additional skilled and high net worth migrants for state nomination under the General Skilled and Business Innovation and Investment migration programs.

• Continued the provision of safe and reliable electricity to customers across thirteen off grid remote area towns outside Aboriginal lands and fifteen remote communities within Aboriginal lands.

• Established the Mining and Petroleum Services Centre of Excellence, bringing together resource sector companies, research institutions and services businesses to support new and innovative ways to drive resources sector growth and support the development of local supply chains.

• Provided competitive processing, State Nomination and Regional Certifying Body advice relating to migration applications, and delivered the targets in relation to business and skilled migration outcomes.

• Upgraded the main switchboards in Fregon, Mimili and Indulkana, in the APY lands.

• Continued to progress all investment and trade priorities that emerged from the China and India engagement strategies with support from the China and India Councils and respective strategic advisers.

• Released an independent report on the economic impact of the PACE Program over the past decade.

• Commenced implementation of red tape reduction initiatives to reduce unnecessary or burdensome government regulations or processes through the Red Tape Reduction Steering Committee.

05 DELIVERING RESULTS – HIGHLIGHTS OF THE YEAR


STRATEGIC OBJECTIVE 1: LEVERAGE THE VALUE FROM OUR MAJOR PROJECTS FOR ALL SOUTH AUSTRALIANS

TONSLEY PARK REDEVELOPMENT

Through 2013-14 DMITRE led the Tonsley redevelopment project in conjunction with delivery agency partner Renewal SA. Tonsley is already demonstrating a vision of the future of manufacturing in South Australia – high-tech, globally competitive companies both local and internationally-based, working closely with world-class researchers and training organisations.

Land development and delivery of infrastructure totalling over $45 million has been committed to the site through a capital works program. This involves civil works, utility services delivery and refurbishment of the former main assembly building, including re roofing of over five hectares of roof area.

Approval was granted for the construction of the State Drill Core Reference Library. This will be the cornerstone investment for a resources hub at Tonsley, working in tandem with PACE 2020, the Mining and Petroleum Services Centre of Excellence and the ICT Roadmap for Minerals and Energy Resources to drive synergies for mining supply and services. The establishment of this world-class information and data resource at Tonsley is expected to lead to new discoveries and new mining and energy developments over the next 20 years and generate an estimated $6.5 billion in royalties.

Another step toward the Tonsley resources hub is the establishment of an Onshore Petroleum Centre of Excellence training facility at the site, funded through the Mining and Petroleum Services Centre of Excellence, which was approved in the reporting year. This facility is the result of a collaboration between Santos Ltd, Beach Energy Limited, Senex Energy Limited, the South Australian Government and TAFE SA, to ensure the provision of trained staff for an expanding onshore petroleum industry.

In the reporting year, the South Australian Government provided investment to catalyse a number of Centres of Excellence (CoE) at Tonsley that will aid the development of the new knowledge and skills required for growing South Australian industries:

• Centre of Excellence in Composites Research and Development will provide research and industry collaborations to develop expertise in the application of composite materials in a range of sectors including minerals, oil and gas, defence and water; this CoE will be developed in partnership with Basetec Services Pty Ltd

• Centre of Excellence in Hybrid Power Development – the State Government has signed a Memorandum of Understanding with MAN Diesel and Turbo Australia to potentially establish a Centre of Excellence to develop new hybrid energy and water solutions incorporating renewable energy generation sources (wind turbines, solar PV and thermal), and diesel or gas engines.

Flinders University commenced construction of ‘Flinders at Tonsley’, a $120 million investment which incorporates the School of Computer Science, Engineering and Mathematics, and a number of other Flinders business units, including the Medical Devices Research Institute, Flinders Partners and the New Ventures Institute.

Tonsley TAFE opened and is training 800 students per day at its state-of-the-art trade training facility.

Along with Flinders University and TAFE SA, a number of companies have also taken tenancies at Tonsley, including:

• Signostics Ltd, designers and manufacturers of portable, hand-held ultrasound devices

• Zen Energy Systems, the largest solar energy provider in South Australia; Zen will consolidate its manufacturing, research and development, and head office operations at the site

• Basetec Services Pty Ltd, a company that designs, develops and manufactures innovative pipe technologies, committed to develop their new business premises at Tonsley, incorporating a Centre of Excellence in Composites Research and Development.

ACHIEVEMENTS BY STRATEGIC OBJECTIVE 06

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06 ACHIEVEMENTS BY STRATEGIC OBJECTIVE

A preferred operator has been identified to establish a Co-Working Space at Tonsley. This facility will provide accommodation for start-ups, entrepreneurs and professional services in an affordable, collaborative environment.

NYRSTAR

DMITRE finalised the delivery of the state’s support package to Nyrstar, securing an investment of $514 million for a project to transform the existing Port Pirie Smelter into a polymetallic recovery and processing facility. In the reporting year, DMITRE:

• concluded a financing arrangement with Nyrstar and the Export Finance and Insurance Corporation, the Commonwealth Government’s export credit agency, to underwrite a $291.25 million funding contribution by third party external investors

• developed a new community ‘Targeted Lead Abatement Program for Port Pirie’, with Nyrstar, to address blood lead levels of young children and exposure to lead

• Arranged for the enactment of the Port Pirie Smelting Facility (Lead-In-Air Concentrations) Act 2013, to provide Nyrstar and its investors with environmental regulatory certainty

• facilitated the major development assessment process, and development approval granted for the proposal.

SOUTH AUSTRALIAN 2013-14 MAJOR DEVELOPMENTS DIRECTORY

In 2013-14 DMITRE capitalised on major projects being built or developed in South Australia by building awareness of the state’s business environment and investment opportunities, through an integrated communications program, a targeted interstate investment business awareness campaign and the release of the Major Developments Directory 2013/2014. The directory showcased a record 313 major projects – underway or planned – with a total value of more than $100 billion. Each project will offer investor, supplier and workforce opportunities in South Australia.

INDUSTRY CAPABILITY NETWORK SOUTH AUSTRALIA

The Industry Capability Network South Australia (ICNSA) facilitated over $127 million value in contracts, with $103 million value of these going to local suppliers across the manufacturing, resources, defence, and infrastructure sectors. Through ICNSA’s involvement in the national Industry Capability Network, South Australian industry was awarded an additional $9 million worth of contracts from other states, bringing the value of contracts awarded to South Australian industry thought the activities of the ICNSA to $234 million.

ICNSA is working with Nystar on its Port Pirie Smelter upgrade project and has provided information on potential suppliers for many work packages. The network is also working with Rex Minerals on their Hillside Copper Mine Project to increase local industry participation.

ICNSA has increased its service offering to project proponents by developing a prequalification service that will be offered to major projects. The prequalification service will assist ICNSA in determining capability gaps within companies and the state.

OTHER ACHIEVEMENTS IN 2013-14

• DMITRE continued to case manage major investment project proposals, assisting proponents to minimise project risk and reduce the time taken to work through the required approval process, and coordinating appropriate infrastructure needs. Examples of DMITRE case-managed projects bringing significant investment and employment opportunities to the state include:

- The Iron Road Limited mine project infrastructure corridor and deep-water sea port

- Phoenix Energy, a proposed $400 million waste-to-energy facility

- Mobile LNG Pty Ltd, a $250 million proposal to produce 400 tonnes of liquid natural gas per day, distributed by mobile tanks for remote area energy supply

- Sundrop Farms Pty Ltd, a proposed 20-hectare greenhouse near Port Augusta with an indicative capital expenditure of $150 million.

• The department continued to leverage the existing pipeline of projects, to expand the opportunities for local suppliers to gain a greater share of value chain and supply chain opportunities through case-managed projects.



STRATEGIC OBJECTIVE 2: ATTRACT AND FACILITATE TARGETED BUSINESS AND INFRASTRUCTURE INVESTMENT

MAJOR MINING AND INFRASTRUCTURE PROJECTS

DMITRE contributed to the continued growth of South Australia’s mining industry through:

• final approvals under the Mining Act 1971 for Arrium Ltd’s iron ore operations recommencing at Iron Knob in the Middleback Ranges

• final approvals under the Mining Act 1971 for the Quasar Resources Pty Ltd and Alliance Resources Ltd Four-Mile uranium mine, establishing this area in the Far North region of the state as a major uranium mineral domain

• case management and comprehensive assessment, including community engagement, for a major extension to the Kanmantoo copper mine.

CHINA ENGAGEMENT STRATEGY

DMITRE continued to work collaboratively across government, business and industry communities to implement the government’s South Australia-China Engagement Strategy. In August 2013, the department supported a visit to Shandong by the Hon. Tom Kenyon, Minister for Manufacturing, Innovation and Trade, to progress the high level working group structure, developed as a result of a Memorandum of Understanding (MoU) signed on a visit earlier in the year by Premier Jay Weatherill and Shandong Governor Gou Shuqing.

In December 2013, a MoU was signed between the South Australian Government and the China Development Bank to facilitate large project funding in South Australia. The China Development Bank has since accompanied South Australia’s delegation to Shandong to leverage this relationship for investment outcomes.

In May 2014, Hon. Susan Close, Minister for Manufacturing and Innovation, visited Shandong, leading a delegation of 27 South Australian companies seeking investment and trade opportunities. Meetings were held with representatives of 170 Chinese companies. Business connections made will be supported by structured and targeted reciprocal visits in late 2014 and during 2015.

A comprehensive China Business Education Program is being rolled out in South Australia to help local businesses to become more China-ready. Since the release of the China Engagement Strategy, more than 200 South Australian businesses have attended events organised as part of this program and over 250 businesses have registered with the Department of State Development to learn more about China.

INDIA ENGAGEMENT STRATEGY

An Adelaide-based India team has been established to support the ten-year South Australia-India Engagement Strategy, with an Investment Manager embedded in Austrade’s office in Mumbai.

The India Engagement Strategy had originally identified resources, aerospace and defence, cleantech and education sectors for the focus of effort. This is being reviewed for the possible inclusion of the premium food and wine sector, arts and culture, and related tourism opportunities.

In September 2013, the department supported a visit to India by Manufacturing, Innovation and Trade Minister the Hon. Tom Kenyon MP, for targeted meetings with high net worth Indian corporate groups in Mumbai and New Delhi, to further progress opportunities created by the Premier’s visit in November 2012, and promote South Australia as a potential investment destination and reliable trading partner.

During this visit, the Minister signed a MoU between the Government of South Australia and the Export Import Bank of India to promote investment and trade. The Minister also spoke at the plenary session of the Global Economic Summit at the World Trade Centre in Mumbai to promote South Australia.

RESOURCES AND ENERGY SECTOR INFRASTRUCTURE COUNCIL (RESIC)

In December 2012 the South Australian Government released its response to the recommendations made in RESIC’s consultation report, developed through the Council’s 2011 Resources and Energy Infrastructure Demand Study. In 2013-14 DMITRE delivered the three RESIC strategic priorities:

• facilitating the provision of data and knowledge of infrastructure (demand studies, infrastructure channel)

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STRATEGIC OBJECTIVE 3: ENABLE ACCESSIBLE AND SUSTAINABLE ENERGY AND RESOURCES

PACE 2020: PLAN FOR ACCELERATING EXPLORATION

PACE 2020 - DMITRE’s Plan for Accelerating Exploration – concluded its fourth year of operation in 2013-14. The PACE program is the capstone of the government’s efforts to increase mineral exploration and production in South Australia. The reporting year has seen the release of a comprehensive Gawler Craton (Woomera Protected Area) atlas and data package which includes the new WPA gravity survey data, drill core sampling, reprocessed regional geophysics and geochemical information together with the latest geological mapping coverages.

On behalf of the South Australian Government, DMITRE has undertaken a collaborative partnership with Western Australia and the Commonwealth Government, to deliver a major crustal seismic survey over more than 800 kilometres across the Nullarbor, linking the mineral-rich region of Western Australia’s Yilgarn Craton mineral province with the under-explored, highly prospective region in the south west of the state.

The department released an independent report on the economic impact of the PACE Program over the past decade. The report acknowledged that the PACE program has “engendered a competitive advantage to South Australia for resources exploration and significantly contributed to the state’s economy through:

• ensuring South Australia has achieved a much higher share of national mineral exploration expenditure

• fostering an increase in state mining revenue of $2.4 billion for an expenditure of less than $50 million

• creating an environment that has encouraged exploration in excess of the SASP target of $200 million a year for the past three years and a conservatively estimated $700 million extra in private mineral exploration investment, representing a leverage of at least 20:1 on PACE geoscience expenditure

• fifteen significant exploration successes resulting from collaborative drilling.

• developing relationships with government and industry to optimise infrastructure development (regional council and community participation, collaborative activities with industry and stakeholder agencies)

• providing advice to government.

In partnership with the Whyalla Community Consultative Committee, RESIC initiated the Port Bonython Visualisation Project. The project was jointly funded by the department, Regional Development Australia (Eyre and Western) and private sector proponents. The interactive tool will be used to highlight the region’s development potential to investors and to improve community consultation.

RESIC also promoted infrastructure development opportunities at a number of local and national conferences.


• The first Premier’s Indian Community Forum was organised for 2 October 2013, to coincide with the 144th anniversary of the birth of Mahatma Gandhi.

• In support of the Adelaide-Qingdao sister-city relationship, a MoU was signed between DMITRE and the Qingdao Bureau of Commerce to explore business opportunities. This platform has been utilised effectively to facilitate business-to business connections.

• Delivered the 2013 Minerals Targeted Investment Strategy Priority Events Program. The program focused on the key international markets of China, India, North and South America, United Kingdom, South Korea and Japan.

• Continued to successfully deliver the TradeStart program in partnership with Austrade, assisting businesses to achieve long-term success in international trade. As at 30 June 2014, TradeStart advisers had an active client list of 638 clients and had assisted with 66 export outcomes with a total value of nearly $30 million. Of these outcomes 62 were export sales and four were international agreements.

• South Australia continued to perform well across key metrics assessed in the global Fraser Institute Annual Survey of Mining Companies 2012-2013, demonstrating international leadership in ‘Geoscience Databases’.


ROADMAP FOR UNCONVENTIONAL GAS PROJECTS IN SOUTH AUSTRALIA

DMITRE implemented the highest priority recommendation of the Roadmap and fostered the acceleration of oil exploration and production through the offer and grant of Petroleum Retention Licences (PRLs) with competitive guaranteed work programs.

Recommendations from the Roadmap for Unconventional Gas Projects in South Australia are being addressed by five working groups actioning various items including:

• a hub for training to meet Australia/South East Asia skills requirements for deep unconventional gas operations, co-located with regional corporate headquarters at Tonsley, South Australia

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

• fit-for-purpose water use in the Cooper-Eromanga basins.

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

• innovation towards cost-effective and reliable greenhouse gas detection.

A sixth working group will be formed in 2014 to foster local content in the supply of services, materials and equipment to the upstream petroleum industry.

ONSHORE AND OFFSHORE EXPLORATION

In the reporting year, DMITRE granted PRLs with competitive guaranteed work programs to operators in the proven Cooper-Eromanga basins oil and gas play trends. The conversion of Petroleum Exploration Licences (PELs) to PRLs for both oil and gas plays, and the minimum expenditures required for the renewal of Santos’ Nappamerri Trough Petroleum Production Licences are expected to accelerate exploration and appraisal investment by at least $510 million in the term to 2020, as part of an expected total investment of $3.5 billion for all oil and gas projects in the South Australian extent of the Cooper-Eromanga basins.

The offshore South Australian Bight Basin is attracting the world’s major oil and independent companies including Chevron Corporation (US), BP Australia Pty Ltd (UK), Statoil ASA (Norway), Murphy Oil Corporation (US), Santos Ltd and Canada-based Bight Petroleum Pty Ltd.

Exploration Permits for Petroleum (EPPs) 43 to 45 were granted in October 2013. BP has contracted a new-build rig to drill for its drilling program in EPPS 37-40 which should start in early 2016. A total of nine wells and 38 785 km2 of 3D seismic testing are committed for the nine Bight Basin EPPs.

SOUTH AUSTRALIAN RESOURCES INFORMATION GEOSERVER

DMITRE has continued to lead at a global level in the field of geoscientific data delivery through the South Australian Resources Information Geoserver (SARIG), with over 400 spatial datasets on all aspects of resource information available at any time of day or night. Data releases in the reporting year included:

• geophysical airborne survey

• seismic horizon maps of the Eromanga Basin

• new online mineral deposits information

• South Australian marine park network.

The capabilities of SARIG have been enhanced by providing the South Australian Mining Projects Application, an authoritative reference source for resource and production information relating to South Australia’s major mines and developing projects.

INVESTMENT IN MINERAL EXPLORATION

South Australia’s mineral exploration expenditure for 2013 calendar year was $144.7 million, down $166.9 million (53.6 per cent) from $311.6 million in 2012, and falling below South Australia’s Strategic Plan target of $200 million per year. However, record exploration expenditure from recent years is now paying off, as discoveries have transitioned to mines, with record production in South Australia reaching $5.4 billion in 2013.

Since the 2012 implementation of the mineral Exploration Release Area (ERA) scheme, a total of 365 ERAs have been released, providing greater transparency and industry opportunity to explore in South Australia. The scheme is estimated to have increased the total committed exploration spend by $11 million.

In 2013, 231 mineral exploration licences covering 103 838 km2 were granted (down from the 284 granted (133 328 km2) during 2012). At the end of the calendar year, 198 licensees held 937 exploration licences covering 398 927 km2 (40 per cent) of South


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Australia’s land area, the decrease reflecting the continuing challenges for mineral explorers, particularly lack of access to global risk capital and falling commodity prices.

Following the introduction of new business improvement processes, 193 applications for mineral exploration Programs for Environment Protection and Rehabilitation (PEPRs), which included commitments for a total of $703 261 million in drilling and processing times for routine mineral exploration licence applications were reduced to below 100 days.

UNLOCKING MINERAL POTENTIAL IN THE WOOMERA PROHIBITED AREA

DMITRE continued to play an integral part in the implementation of the coexistence regime in the Woomera Prohibited Area (WPA) through:

• the provision of expert advice into the drafting of the Defence Legislation Amendment (Woomera Prohibited Area) Bills of 2013 & 2014, and associated Rules

• the conduct of a series of public and targeted stakeholder consultation forums on the proposed legislation in Adelaide and Coober Pedy

• significant contribution to the State Government submission to the Senate Standing Committee for Foreign Affairs, Defence and Trade inquiry on the WPA legislation

• compliance monitoring staff participation in joint field exercises with the Defence personnel at RAAF Woomera Test Range.

To further assess the economic and resource potential of the WPA, the PACE 2020 Woomera Geoscience (gravity) Survey was successfully completed from June to September 2013 in collaboration with Geoscience Australia and Defence. The new data has identified new primary drilling targets and generated new understanding of mineral systems, reinvigorating mineral tenement activity and exploration company drilling programs.

INNOVATIVE SOLUTIONS PROVIDING ACCESS TO LAND FOR THE RESOURCES SECTOR

DMITRE delivered Year 1 of the Eyre Peninsula Land Use Support Program to assist landholders, farming businesses and communities to more effectively engage and benefit from the opportunities provided by new investment across the Eyre Peninsula by explorers and developing mining projects. The program included community engagement workshops and forums across the Eyre Peninsula and the release of two information booklets Understanding dryland farming and Understanding mineral exploration.

The department also delivered Stage 1 of the Resource Area Management and Planning Project (RAMP) in partnership with Planning SA, and developed the RAMP Road Map – Developing Recommendations and Actions. RAMP is an innovative multiple land access approach to address increasingly complex interface issues with urban development encroaching on long life extractive operations.

DMITRE led South Australia’s representation in the delivery of the Council of Australian Governments (COAG) Energy Council-endorsed Multiple Land Use Framework that establishes the vision, guiding principles, tools and methods for effective integration of land use policy, planning and development in land use decision-making, and provided leadership and support to the COAG Energy Council Land Access Working Group.

PARTNERSHIPS AND COLLABORATIONS

In 2013-14 DMITRE expanded its Global and National Partnerships Program, signing two new Memoranda of Understanding: the China Geological Survey, Nanjing, focusing on mineral systems and their mapping and geological expressions, and the New South Wales Geological Survey, focusing on common geological provinces, commodities, and regulation.

DMITRE also strengthened the state’s ongoing strategic geoscience engagement and collaboration with:

• a focus on uranium and geological mapping, reciprocal scientific visits and international representation and presentations at resource industry forums in China

• the Saskatchewan Department of Mines and Geological Survey, incorporating exchange visits and joint field mapping programs on uranium mineral systems

• the Chilean Geological Survey (Sernageomin), focused on the geology of copper mineral systems as well as mining regulatory frameworks

• the Deep Exploration Technologies Cooperative Research Centre, including mapping of Olympic Dam style mineral systems in the Gawler Craton.





• Delivered the 2014 Premier’s Community Excellence Awards in Mining and Energy. This flagship award celebrates the positive impact the minerals and energy sectors and associated service providers have on communities in South Australia, and recognises those that have demonstrated commitment, leadership and best practice approaches to improving the social wellbeing of communities.

• Barry Goldstein, Executive Director Energy Resources, was awarded the Public Service Medal for outstanding public service to the South Australian energy resources sector.

• South Australia ranked first in the Oceania Region in the Fraser Institute Global Petroleum Survey 2013. http://www.fraserinstitute.org/publicationdisplay.aspx?id=20589&terms=2013+petroleum

STRATEGIC OBJECTIVE 4: DRIVE THE TRANSITION TO HIGH-VALUE INNOVATIVE MANUFACTURING

MANUFACTURING WORKS – A MANUFACTURING STRATEGY FOR SOUTH AUSTRALIA

Manufacturing Works, the South Australian Government’s 10 year manufacturing strategy continues to drive the transition of South Australian manufacturing to high-value added activities. Since the strategy’s launch, DMITRE has supported over 190 manufacturers to increase their knowledge and capacity for innovation, including technology, business model and design based innovation and to develop new capabilities and revenue streams.

In 2013-14 DMITRE delivered a number of outcomes through Manufacturing Works:

• 36 companies were supported in researching industry problems under the Innovation Voucher Program

• 39 companies were provided with access to targeted training from globally recognised experts through the SME Innovation Capacity Program

• workshops were conducted to increase business innovative capacity and increased collaborative activity

• establishment of the Grant Assist portal; the portal will assist the state’s businesses more easily identify and access business support offered by the state and Commonwealth governments.

BUILDING A STRONGER SOUTH AUSTRALIA: OUR JOBS PLAN

To prepare the state for the closure of GM Holden Ltd in 2017, the South Australian Government announced the Building a Stronger South Australia: Our Jobs Plan. The following key initiatives were implemented in 2013-14 to support the manufacturing sector:

• a consultancy to map the defence industry supply chain

• establishment of an Innovation for Growth Pilot Program, which is supporting five manufacturers in developing their business capabilities

• development of a program that will help manufacturers to accelerate the adoption of new technologies

• support for automotive supplier diversification.

ADVANCED MANUFACTURING COUNCIL

The Advanced Manufacturing Council (AMC) was established in 2012 to drive the development and implementation of policies, strategies and programs to support the growth and global competitiveness of South Australia’s manufacturing sector. The AMC’s achievements for 2013 14 include:

• oversight of a comprehensive cellulose fibre study in the South East of the state, conducted jointly by the region’s forestry industry and the VTT Technical Research Centre of Finland

• establishment of the Manufacturing Leaders Network, a forum to facilitate information exchange between government, industry leaders and global experts

• partnering with Defence SA to identify opportunities for South Australian companies to participate in the Federal Government’s proposed Land 400 project.

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AUTOMOTIVE TRANSFORMATION

In response to the announced closure of GM Holden’s automotive manufacturing operations in the state, the South Australian Government established the Automotive Transformation Taskforce. The Taskforce is responsible for administering programs designed to mitigate the short and long term economic and social costs of the closure, in terms of businesses and workers in the automotive supply-chain and in specific regions.

The Taskforce Board is chaired by Mr Greg Combet AM.

Other achievements over this period include:

• the appointment of the Automotive Transformation Coordinator to coordinate the assistance provided to automotive industry workers and automotive suppliers.

• the commencement the Automotive Supplier Transformation Program to support existing suppliers seeking to diversify out of the automotive sector into alternate sectors.

• the commencement of the Automotive Supplier Diversification Pilot Program with three South Australian based automotive suppliers.

• the completion of a comprehensive automotive supply chain review of Tier 1, Tier 2 and Tier 3 automotive supply chain firms, including a spatial analysis to assess the impact of the closure of GM Holden’s Elizabeth plant.

• support of the co-administration of rounds 2 and 3 of the Automotive New Markets Program, which provides direct financial assistance for automotive supply chain companies to enhance their capability and access new markets for their automotive products or new product opportunities, including non-automotive opportunities, for which eight South Australian companies were successful in receiving funding.

ICT ROADMAP FOR MINERAL AND ENERGY RESOURCES PROJECT

The ICT Roadmap for Mineral and Energy Resources was developed through a partnership between the Australian Information Industry Association and the South Australian Government with the aim of fostering collaboration between the state’s Information and Communications Technologies (ICT) industry and the mining and petroleum sectors. Its purpose was to identify and develop new and innovative ICT products and services that contribute to improved productivity, safety, environmental management and community engagement in the South Australian resources sector.

The Roadmap identified eleven future ICT opportunities in resources for South Australia. The first two of these collaborative projects began in 2013 14.

MINING INDUSTRY PARTICIPATION OFFICE

The Mining Industry Participation Office (MIPO) maximises opportunities for South Australian companies to gain a greater share of local, national and international minerals and petroleum supply chains. MIPO’s activities include forecasting the demand of goods and services in the resources sector, developing supply chain capabilities and fostering innovation and applied research.

MIPO’s achievements to date include:

• identification of opportunities, from gap analysis, including potential for guar crops and ‘proppant’ sand supply to the petroleum sector

• establishment of an onshore petroleum training facility at Tonsley, as a collaboration between Beach Energy Limited, Santos Ltd, Senex Energy Limited, TAFE SA and the Department of State Development, to provide trained personnel for the expanding industry

• implementation of an ICT Roadmap, supporting a strategic collaboration of the state’s ICT and Operational Technology industries in the resource sector

• leading a South Australian delegation to Houston, USA to expose local suppliers and manufacturers to a mature unconventional gas supply chain, resulting in South Australian suppliers already developing new capabilities

• facilitation of a collaborative Remote Operations Centre (ROC) with Oz Minerals Limited, IPACS Power Pty Ltd, the University of South Australia and Hewlett Packard, to produce an open platform for software and hardware development for the resources sector

• undertaking a study into the possible implications of graphene technology on the local industry.




• Completed mapping of the South Australian food industry sectors and supported innovation and capability development within South Australian food and beverage manufacturers through the Competitive Foods Initiative.

• Implemented the Manufacturing Business Placements Program.

• Implemented initiatives to support the small business sector to engage in supply chains and business opportunities created by the state’s infrastructure resources, energy and defence projects.

STRATEGIC OBJECTIVE 5: DELIVER AND ADVOCATE TRUSTED REGULATION AND TARGETED PROGRAMS

REMOTE AREAS ENERGY SUPPLIES SCHEME

DMITRE continued the provision of safe and reliable electricity to customers across thirteen off-grid remote area towns outside Aboriginal lands and fifteen remote communities within Aboriginal lands. Each year approximately 2400 customers are provided with over 15 million kilowatt-hours (kWh) of electricity.

DMITRE completed the installation of an additional one megawatt diesel generator, two additional diesel storage tanks and an expanded building at the Central Powerhouse, APY Lands to meet increased demand.

DMITRE continued to undertake upgrades to generation and distribution infrastructure, including satellite communication and control equipment across remote areas of the state. New fuel sensors were installed to assist in monitoring of diesel consumption.

DMITRE provided subsidies to independent operators in Coober Pedy, Andamooka and Yunta to enable reasonably priced access to electricity for 1750 customers in these three towns.

NATIONAL ENERGY FRAMEWORKS

Significant national energy market reform is being pursued to improve outcomes for consumers by strengthening network regulation, empowering consumers, enhancing competition and innovation, and ensuring balanced network investment. In this period, DMITRE delivered a number of legislative amendment packages for the consideration of Parliament and participated in the development and submission of a number of rule change proposals to the Australian Energy Market Commission.

Parliament passed amendments to the national energy frameworks to provide for the establishment of gas trading exchanges. The exchanges will provide the market with transparent price signals, which are not available where parties enter direct contracts for gas supply. The first exchange established under the framework at Wallumbilla commenced trading in March 2014.

The limited merits review appeal mechanism amendments passed by Parliament ensure that if a decision of the Australian Energy Regulator about network businesses expenditure is appealed, the Australian Competition Tribunal will decide the matter in the long-term interests of consumers.

Amendments passed in relation to competition and smart meters and the associated proposal submitted to the Australian Energy Market Commission for rule changes seeks to provide for the competitive provision of smart meters to residential and small business consumers. Rule changes were also submitted in relation to demand management and the appropriate setting of network businesses prices. Smart meters have been independently estimated to save up to $200 per year on a household power bill by allowing consumers to better manage their electricity use.

DMITRE has also submitted a rule change proposal to the Australian Energy Market Commission which seeks to ensure future generator bidding practices are consistent with an efficient, competitive and reliable market.

RESIDENTIAL ENERGY EFFICIENCY SCHEME

The Residential Energy Efficiency Scheme (REES) commenced in 2009 under the Electricity Act 1996 and the Gas Act 1997, and was due to be completed in 2014, subject to review. A review of the REES was completed in 2013.

An independent evaluation of REES, commissioned as part of the review, found that in its first three years of operation, the scheme delivered net benefits of over $100 million. As a result of the review, the Minister for Minerals and Energy Resources announced an extension of the scheme until 2020 and expanding it to small business.

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RED TAPE REDUCTION

A Red Tape Reduction Steering Committee has been established, bringing together industry and government representatives, to focus on the targeted reduction of unnecessary or burdensome government regulations or processes that impact on small businesses. The Steering Committee provides industry feedback on priority areas impacting on small businesses, and plays a facilitation role in the development of red tape reduction strategies between agencies and industry. Four targeted projects, in areas of priority for industry, are underway.

STRATEGIC INDUSTRY DEVELOPMENT FUND

The Strategic Industry Development Fund is a grant fund that targets pilot projects for industry demonstration and promotion of best practice, including technology projects that have the capacity for wider application to generate economic development in South Australia. Thirteen companies received grants from the fund over the 2013-14 financial year. These included Spring Gully Foods Pty Ltd, New Castalloy Pty Ltd, Normanville Meatworks Pty Ltd, Keyhole TIG Limited, ultrasonic transducer fabricator Ellex Medical Lasers Pty Ltd, and the University of South Australia Cooperative Research Centre for Cell Therapy Manufacturing.

SOUTH EAST FORESTRY PARTNERSHIPS PROGRAM

The South East Forestry Partnerships Program is an assistance package designed to encourage a viable and strong timber sawmilling industry. To date, six grants have been awarded through the program with these expected to generate over $36 million in investment in the south-east of the state.

To further support the sector, DMITRE released the second stage of a cellulose fibre and forestry roadmap to support short, medium and long-term feasible and sustainable market opportunities for higher value-added forestry activities in the Limestone Coast region of South Australia. Funding from the South East Forestry Partnerships Program will support the implementation of projects consistent with the report’s recommendations. The program will transfer to Primary Industries and Regions South Australia from 1 July 2014.

PETROLEUM, GAS STORAGE AND GEOTHERMAL ENERGY INDUSTRY

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

DMITRE reviewed 260 activity notifications of which 135 were related to high-surveillance operator activities, and 130 annual compliance reports. Where required, notifications were approved by the Minister for Mineral Resources and Energy.

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

OVERSEAS MIGRATION

A program of actively targeting additional skilled and high net worth migrants for state nomination under the General Skilled and Business Innovation and Investment migration programs has been commenced.

Competitive processing times have been achieved for state nomination and Regional Certifying Body advice applications in relation to business and skilled migration . Over 4000 nomination applications were processed resulting in 3092 approved nominations for skilled and business migrants.

DMITRE approved 130 new business migration nominations, of which 24 were significant investor visa applicants. This number was triple the previous year’s result. In November 2013 the department hosted a delegation of 72 attendees from China, including migration agents and potential business migrants, which provided an opportunity to show first-hand business, investment and education opportunities in South Australia.

MINING REGULATION

DMITRE continued to deliver a trusted regulatory and compliance program, essential to building confidence in the mining and exploration industry and the broader community. The department regulated mining operations throughout the state for:

• copper, gold, iron ore, coal, zinc, lead, silver, uranium, mineral sands

• industrial minerals, including salt, silica sand, limestone and gypsum

• extractive minerals for construction (e.g. sand, gravel)



• dimension stone

• opal and gemstones.

The department administered and regulated a significant number of mining tenements and operations throughout the state. As at 30 June 2014 DMITRE administered:

• 838 mining leases

• 665 extractive mineral leases

• 235 private mines

• 450 operating mines

• 20 major metal mines

• 378 opal mining claims

• 3500 former mines.

DMITRE approved 193 applications for mineral exploration Programs for Environment Protection and Rehabilitation (PEPR) under the Exploration Regulation Program, which included approval for a total of 703 261 metres of exploratory drilling. Twenty mineral exploration licences were inspected to ensure adherence to standards specified in guidelines, licence and PEPR approval conditions. No major non-compliance issues were identified. The department also managed:

• an active Mine Compliance Program, which conducted 425 mine site inspections including the investigation of 42 complaints, 30 reportable incidents, and 12 reports of illegal (unauthorised) mining

• collaboration with the Brukunga Mine Site Remediation Board to deliver the major extension of the Dawesley Creek diversion around the former Brukunga mine site and progressed planning for the remediation at Brukunga to further manage and reduce mine acid drainage into the surrounding Adelaide Hills water catchments

• the commission of an independent assessment of the future Extractive Areas Rehabilitation Fund rehabilitation liabilities across the state to inform future funding requirements and policies for Extractive Mining Operations.

RESOURCE ROYALTIES

DMITRE is charged with the management of royalty policy, regulation, assurance, engagement, assessment, collection and reporting of all royalties sourced from South Australian producers of minerals and petroleum.

The deprtment is responsible for auditing royalty payments to provide assurance to the government that licence holders correctly self-assess their royalty payable and are aware of their obligations under the relevant Acts, Regulations and guidelines. DMITRE’s approach to compliance matters is consistent with the compliance philosophy of:

• obtaining a maximum level of voluntary compliance

• operators having a clear understanding of their obligations

• identifying risk areas for proactive investigation

• applying the appropriate treatment for non-compliance

• treating operators in a fair and equitable manner.

In 2013-14 there were 73 royalty audits of mining and petroleum companies to confirm the accuracy and validity of records and financial information submitted to the department. The branch completed royalty audits and used data matching of royalty data to statutory data to verify 98 per cent of the 2013-14 South Australian royalty revenue. In 2013-14, nearly $1.4 million was reserved from both royalty audits completed by the department and through external audits.


• Completed the rehabilitation of the one-time mining site at Whiskey Swamp, within the Woomera Protected Area and its return to traditional owners. This significant event marked the success of a partnership between the South Australian Government, the Commonwealth Government’s Department of Defence, BHP Billiton and the Kokatha people.

• Continued to successfully deliver the TradeStart program in partnership with Austrade, assisting businesses to achieve long-term success in international trade.

• Provided self-help small business support services via multiple mediums to assist start ups, early stage businesses and those businesses wishing to grow.

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• Continued to provide support to eligible South Australian SME exporters through the Gateway Business Program, offering dollar-for-dollar matching grants from $2000 $10 000, to assist the export-readiness of new exporters and experienced companies entering new overseas markets.

• Implemented initiatives to support the small business sector to engage in supply chains and business opportunities created by the state’s infrastructure resources, energy and defence projects.

• Released the Government Buildings Energy Strategy 2013–2020, which addresses a broad range of government energy management issues.

• In partnership with the Business Development Council and industry, built on the existing Small Business Strategy to continue to support growth of small and family businesses in South Australia.

• Continued to provide a world-class regulatory regime to provide assurance that all energy resource projects that meet community expectations for net outcomes are authorised for implementation in South Australia.

• Implemented Minimum Energy Performance Standards (MEPS) for computers, and MEPS and energy labelling for computer monitors.

• Completed a review of South Australia’s water heater installation requirements and implemented the revised requirements.

• Implemented the Manufacturing Business Placements program.

• Continued to maintain a low level of energy safety-related incidents and accidents, through community engagement and education.

• Provided further assistance to small businesses through improved and refined dispute resolution services.

• Reduced processing times for routine mineral exploration licence applications to below 100 days, following business improvement processes.

• Continued research to reduce critical uncertainties that currently impede the commercialisation of petroleum, geothermal energy and geologic gas storage projects in the state.

• Revised the National Energy Frameworks for the establishment of gas trading exchanges, to ensure that the Limited Merits Review appeal mechanism delivers decisions in the long-term interest of consumers.

• Developed and participated in proposals for amendments to the national energy frameworks to ensure future generator bidding practices are consistent with an efficient, competitive and reliable market.

• Continued to undertake upgrades to generation and distribution infrastructure, including communication and control equipment across remote areas of the state, including remote Aboriginal Lands.

STRATEGIC OBJECTIVE 6: DRIVE AND ENCOURAGE INNOVATION ACROSS INDUSTRY AND GOVERNMENT

INNOVATION FOR GROWTH

In 2013 DMITRE initiated a new pilot program, the Innovation for Growth Program. The Program was created to assist high-value South Australian manufacturing businesses to accelerate their growth, with the aim of enhancing their profitability, productivity and competitiveness. Five companies participated in the pilot program, including Mayfield Engineering, Tindo Solar Pty Ltd, Beerenberg Pty Ltd, Century Manufacturing Pty Ltd and Climate Technologies.

FUTURE INDUSTRIES FOR SA

Building a Stronger South Australia: Our Jobs Plan was launched in 2013-14 as the state’s response to challenges arising from dynamic changes in local manufacturing. The Future Industries for SA component had the aim of building long term economic competitiveness through innovation. While innovation is a part of all group activities, the Future Industries for SA initiative is a whole-of-economy response that focuses on clusters and entrepreneurship to build this future.

CLUSTER INITIATIVE

The Cluster Initiative supports the establishment and development of new and innovative businesses, and drives the competitiveness of existing businesses. Five areas for cluster activity have been identified. These are the health and medical devices, business services, creative industries, mining and resources and aerospace industry sectors.



A Cluster Coordination Office is being established to strategically align cluster activity. The Cluster Coordination Office will be a cluster resource, while aligning cluster activity to achieve maximum benefit for industry and the state. This includes linking the five clusters being developed with the Food and Wine Cluster (funded though Primary Industries and Regions South Australia) and Forestry and Cellulose Fibre Cluster (funded though the existing South East Partnership Program Fund). This collaborative approach will be enhanced by the establishment of a Cluster Leadership Group that will enable sharing across clusters.

The department also supported the establishment of a local Cluster Observatory linked to the European Cluster Observatory. This resource will link measures of local cluster development to international benchmarks, and will facilitate international trade and investment, while drawing in the best innovation thinking to South Australia.

FACILITATING ENTREPRENEURSHIP

DMITRE has facilitated a number of entrepreneurship initiatives. These have been developed to build new business and ensure globally-competitive ideas have every opportunity for success. The Micro Finance Fund will provide seed funding to transform good ideas into globally competitive products and businesses. DMITRE is also continuing to support the Innovyz Start program, which provides incubation opportunities for entrepreneurial businesses. The Innovation Voucher Program provides support for business so they can resolve technical problems in partnership with research.

VENTURE CATALYST

In conjunction with the Advanced Manufacturing Council, DMITRE launched Venture Catalyst, a grant program to assist undergraduates and postgraduates establish a start-up firm, based on commercial opportunities arising from applied research (in partnership with the University of South Australia).

SIMULATION AUSTRALIA

Simulation Australia is the nation's peak simulation industry association and is responsible for promoting the research, development and use of simulation technologies and practices in society, industry, academia and government. The association will retain its headquarters in Adelaide until 2015. In 2013-14 Simulation Australia:

• secured the SimTecT and SimHealth convention in Adelaide in 2014, to attract over 800 international delegates and key note speakers per year, across multiple sectors, to generate business trade opportunities as well as tourism

• created an International Ambassadors Network, to grow international attendance to SimTecT and SimHealth in Adelaide over 2014 and 2015

• coordinated seven Adelaide based showcase and workshop events to promote local developers and DMITRE’s industry assistance programs

• assisted the development of the Data to Decisions Cooperative Research Centre

• supported the local simulation community and growing local members.


• As part of the Plan for Accelerated Exploration 2020 program, DMITRE launched the South Australian mining mobile device application, which highlights investment opportunities within the state’s mineral and energy resources sector.

• Implemented an account management approach across all DMITRE divisions to ensure greater engagement with business.

• Delivered an innovative and responsive audit and assurance function for South Australia’s resource royalties revenue, by completing 70 royalty audits of mining companies to confirm the accuracy and validity of records and financial information submitted to the department.

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STRATEGIC ENABLERS

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

• a high-performing workforce and culture

• effective and trusted stakeholder engagement

• high-value data and research

• targeted marketing and communication

• streamlined processes, systems and practices.

BUSINESS ACCOUNT MANAGEMENT

From October 2013, a ‘Business Account Management’ approach will be implemented in DMITRE, with the aim of formalising regular contact between government and businesses established in South Australia.

Account Managers within DMITRE provide a single entry point into government and work with and facilitate interactions with other agencies and regulatory authorities on behalf of business.

A brochure entitled A Guide to Case Management and Account Management Services for Your Business was developed and published in October 2013. Its aim is to inform businesses of the account and case management services available to them through DMITRE, and to promote the gathering and exchange of information that supports government in making better policy and better decisions for business.

ADVANCED MANUFACTURING SCORECARD

An Advanced Manufacturing ScoreCard has been developed with the Advanced Manufacturing Council to measure and monitor the manufacturing sectors progress in achieving the objectives defined in Manufacturing Works. Annual progress reports will cover a range of economic, social and environmental measures demonstrating how South Australia’s manufacturing sector contributes to the state.

Existing ScoreCards cover the food, wine, resources and agriculture sectors and, in the case of manufacturing, measure activities across the value chain including output, employment and training, and research and development.

ORGANISATIONAL CHANGE AND IMPROVEMENT

DMITRE’s Change Strategy provided the department with a clear strategic intent, building a values-based culture that supported behaviours indicative of a positive workplace culture. In 2013-14, a number of initiatives developed as a result of the DMITRE Change Strategy were implemented, to build a high-performing workplace and culture and develop organisational capability.

STAFF SURVEYS

DMITRE adopted the High Performance Framework (HPF), Staff Perception Survey and the High Performing Workplace Index Survey (HPWI) as tools to support continuous improvement.

In November 2013, the HPF Staff Perception Survey and HPWI Staff Survey results were analysed, to gain a clear understanding of the opportunities and challenges facing DMITRE. The major improvement themes from the surveys were supported by the Senior Executive Group and informed the development of local actions and departmental organisational change and improvement initiatives.

DMITRE PERFORMANCE FRAMEWORK

In July 2013, the DMITRE Performance Framework was approved and implemented. The Performance Framework provided the foundation for continuously improving organisational capability, achieving the vision for culture, supporting employees to strive for excellence and recognising them for doing so. The Framework was a key contributor to building a high performing workplace and culture, through applying a consistent approach to regular and formal performance conversations that aligned priority actions, development plans, values and behaviours to the DMITRE Strategic Directions 2012-15. In 2013-14 all DMITRE employees and line managers participated in mandatory performance management training based on the principles of the Performance Framework. The training and implementation of the Framework was led by the Senior Executive Group.



VALUES FRAMEWORK

The DMITRE Values Framework provided a reference point for what the values mean for the department. The Framework outlined suggested organisational practices, individual success habits and common taboos, to promote discussion and guide actions within DMITRE. The Framework was used to support regular and formal performance management discussions, leadership development and business planning.

PROJECT MANAGEMENT FRAMEWORK

In December 2013 the DMITRE Project Management Framework (PMF) was approved and implemented. The PMF provided a rigorous and consistent approach to the planning and execution of projects, irrespective of size and scope. The PMF provided a flexible approach to managing projects, including policy and program projects. A comprehensive online toolkit was published on the DMITRE Intranet.

DMITRE STAKEHOLDER ENGAGEMENT

A principle based Stakeholder Engagement Framework continued to guide DMITRE’s approach to effective and trusted stakeholder engagement. In 2013-14, fifty people from across DMITRE participated in IAP2 training, to build internal stakeholder engagement capability. The training participants formed a cross-agency group to facilitate engagement internally and externally and enhance collaboration across DMITRE. The group developed an online hub for informing and coordinating activities to embed a culture of stakeholder engagement.

ICT STRATEGY

The DMITRE ICT Strategy 2014-16 was developed in collaboration with business divisions to understand business requirements and align ICT services to DMITRE’s Strategic Directions 2012-15. The ICT Strategy is closely linked to the South Australian Government’s ICT Strategy, South Australia Connected – Ready for the Future and sets out six strategic programs. In March 2014 the ICT Strategy was launched to align internal and external ICT services, to deliver results in line with the strategic objectives of DMITRE and business as usual activities.

90-DAY CHANGE PROJECTS

In 2013-14 Change@SouthAustralia delivered 90-day change projects to demonstrate values in action, with a specific focus on citizen benefits and engagement, service improvement, productivity and performance improvements. Projects undertaken by DMITRE in 2013-14 include:

• streamlining the state’s immigration processes

• backing our businesses

• creating a service excellence culture for the Public Sector

• streamlining regulation for plumbing, gas and electricity

• producing an economically sustainable music industry

• redesigning procurement to develop local opportunities in the Anangu Pitjantjatjara Yankunytjatjara Lands.


• DMITRE progressed the development of a DMITRE Workforce Plan , the People@DMITRE Plan to align the workforce to Strategic Directions 2012-15.

• The department progressed the development of a new form and workflow system to streamline induction processes for new staff and create a culture of service excellence through more efficient processes.

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• Deliver Year 3 Manufacturing Works programs and initiatives, including acceleration of initiatives in accordance with Building a Stronger South Australia: Our Jobs Plan.

• Deliver Year 2 of the Plan for Accelerating Exploration Frontiers Initiative designed to stimulate new exploration in remote regions through a program of regional drilling, airborne surveying and mineral systems and geological mapping.

• Develop an Onshore Oil and Gas Training Hub facility at Tonsley as part of the Mining and Petroleum Services Centre of Excellence.

• Establish a Resource Industry Taskforce, which was a key recommendation of the South Australian Regional Mining and Infrastructure Plan, developed in response to the findings of the RESIC Infrastructure Demand Study.

• Expand the economic development-led approach to precinct redevelopment to other major government projects, including advising Renewal SA on the Royal Adelaide Hospital redevelopment project and establishing project governance and early-stage investigations for the GM Holden Elizabeth and Edinburgh Parks area.

• Commence a second challenge under the South Australian Small Business Innovation Research Pilot Program, to drive innovation in small business through government procurement.

• Deliver the Innovation for Growth Pilot Program, to support and accelerate the growth strategies of South Australian manufacturing firms.

• Support small businesses in northern Adelaide through the provision of targeted services and support through the Polaris Centre.

• Deliver Stage 2 of the Resource Area Management and Planning Project (RAMP) in collaboration with Planning SA and in consultation with the extractives industry, through implementation of the RAMP Road Map.

• Develop the final three clusters under the Future Industries for SA cluster initiative.

• Help automotive supply firms to identify growth opportunities in new markets and build capability through the Automotive Supplier Diversification Program, and skills and employment programs.

• Continue the collaborative development of a State Innovation Strategy, which will in turn guide the development of a Creative Industries Strategy and a Digital Economy Strategy for the state.

• Establish a government and industry working group to review and identify opportunities to reduce red tape and further streamline policy approaches for assessing and approving of major mining and extractive industry developments.

• Lead delivery of programs and projects for the Mining and Petroleum Services Centre of Excellence, to foster and coordinate innovation and applied research initiatives.

• Lead the development of best practice national regulatory frameworks for natural gas in unconventional rock reservoirs, to leverage South Australian projects.

• In partnership with industry, develop and implement a South-East Asia engagement strategy that encompasses diplomacy, trade and investment, collaborations in education, science and technology development, exchanges in cultural, arts, sport and other fields.

• Enhance the dedicated small business website to support improved access to relevant self-help information for South Australian small businesses.

LOOKING AHEAD07

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07 LOOKING AHEAD

• Continue to offer trade facilitation services through the TradeStart program in partnership with Austrade.

• Review of Immigration SA’s program areas and associated criteria to support the attraction of migrants to South Australia.

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

• Complete detailed design and commence construction of the new State Drill Core Reference Library at Tonsley.

• Support industry diversification and new investment in South Australia through the Automotive Australia 2020 Cooperative Research Centre Automotive New Markets Initiative.

• Deliver amendments to the Electricity Act 1996, Gas Act 1997 and the related regulations for technical and safety issues including hazard trees, and the approval of safety, reliability, maintenance and technical management plans and the implementation of the intergovernmental agreement on electricity industry safety.

• Continue to build the capacity of the automotive supplier community in South Australia to diversify and capture new revenue streams through participation in Manufacturing Works programs.

• Continue to facilitate increased local industry supply chain participation and deliver benefits to industry across the mining, energy and resources value chain.

• Release the fully updated Major Developments Directory 2014–15 to build awareness of the state’s business environment and investment opportunities.

• Expand Tonsley’s national and international profile through strategic partnerships with organisations such as Prospect Silicon Valley in San Jose and global technology leader Siemens.

• Deliver Year 2 of the Eyre Peninsula Land Use Support Program to assist landholders to more fully engage with opportunities and partnerships provided by investment in local exploration and mining.

• Extend the account management approach utilised to ensure greater engagement with business, to include all divisions in the newly-formed Department of State Development.

• Enter into a new participation agreement with the Department of Immigration and Border Protection to support skilled and business migration into South Australia.

• Further enhance Immigration SA’s website to provide a client friendly user experience.

• Release an issues paper detailing proposed amendments to the Petroleum and Geothermal Energy Act 2000 and regulations.

• Identify and assess options for the alternative use of GM Holden’s Elizabeth site in consultation with Holden Ltd.

• Continue to implement red tape reduction initiatives across the South Australian Government, through the Red Tape Reduction Steering Committee and in strong collaboration with industry.

• Lead the development of a proposal for amendments to the national energy frameworks in relation to transmission connections and planning.

• Commence a major project to re-platform the Petroleum Exploration Production System (PEPS) into a fully online database to provide better service to stakeholders.

• Amend regulations governing the Residential Energy Efficiency Scheme to allow it to continue from 1 January 2015 and advise the Minister for Mineral Resources and Energy about energy efficiency activities and targets associated with the scheme.

• Maintain safe, reliable and efficient electricity supplies to off-grid remote area communities.

• Implement five national projects on behalf of all jurisdictions, to improve the energy efficiency of new buildings and alterations, and develop a strategy for long term actions.

• Develop and implement further industry codes to provide specific standards of conduct about how an industry will deal with a range of issues.

• Maintain regional migration concessions for South Australia to encourage skilled migrants and investors to settle in the state.

• Market petroleum, geothermal energy and gas storage investment opportunities at key international and national industry events.


ABLIS Australian Business Licence and Information Service

ABS Australian Bureau of Statistics

AMC Advanced Manufacturing Council

APY Lands Anangu Pitjantjatjara Yankunytjatjara Lands

AutoCRC Automotive Australia 2020 Cooperative Research Centre

BDC Business Development Council

BLIS Business Licence and Information Service

CO2/MWh Carbon dioxide produced for every megawatt hour of energy

CPH Central Power House

DFEEST Department of Further Education, Employment, Science and Technology

DIAC Department of Immigration and Citizenship

DPC Department of the Premier and Cabinet

DSD Department of State Development

EDB Economic Development Board

ERA Exploration Release Area

ERP Estimated Resident Population

FOI Freedom of Information

FTE(s) Full-time equivalent(s)

GDP Gross Domestic Product

GSP Gross State Product

HealthInSA Health Industries South Australia

HPF High Performance Framework

IAP2 International Association for Public Participation engagement framework

ICNSA Industry Capability Network South Australia

ICT Information and Communications Technology

kWh Kilowatt hour

MCC Manufacturing Consultative Council

MEPS Minimum Energy Performance Standards

MIPO Mining Industry Participation Office

ABBREVIATIONS08

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MoU Memorandum of Understanding

ODTF Olympic Dam Task Force

PACE Plan for Accelerating Exploration

PDP Personal Development Plan

PIRSA Primary Industries and Regions SA

PEL Petroleum Exploration Licence

PEPR Program(s) for Environmental Protection and Rehabilitation

PRL Petroleum Retention Licence

PSRP Public Sector Reform Program

RAES Remote Areas Electricity Supplies

REES Residential Energy Efficiency Scheme

RESA Resources and Engineering Skills Alliance

RESIC Resources and Energy Sector Infrastructure Council

ROC Remote Operations Centre

SAES South Australian Executive Service

SARIG South Australian Resources Information Geoserver

SASP South Australia’s Strategic Plan

SFD State Final Demand

SEO Statement of Environmental Objectives

SIEC Sustainable Industries Education Centre

SME(s) Small and Medium Enterprise(s)

STEM Science, Technology, Engineering and Mathematics

TAFE SA Technical and Further Education, South Australia

WPA Woomera Probihited Area

08 ABBREVIATIONS


9.1 LEGISLATION ADMINISTERED BY DMITRE

Following is a list of legislation that fell within Ministers’ areas of responsibility during the year to 30 June 2014.

MINISTER FOR MANUFACTURING, INNOVATION AND TRADE

Industries Development Act 1941

MINISTER FOR SMALL BUSINESS

Retail and Commercial Leases Act 1995

Small Business Commissioner Act 2011

MINISTER FOR MINERAL RESOURCES AND ENERGY

Australian Energy Market Commission Establishment Act 2004

Broken Hill Proprietary Company’s Indenture Act 1937

Cooper Basin (Ratification) Act 1975

Electricity Act 1996

Energy Products (Safety and Efficiency) Act 2000

Gas Act 1997

Mines and Works Inspection Act 1920

Mining Act 1971

National Electricity (South Australia) Act 1996

National Energy Retail Law (South Australia) Act 2011

National Gas (South Australia) Act 2008

Natural Gas Authority Act 1967

Offshore Minerals Act 2000

Opal Mining Act 1995

Petroleum (Submerged Lands) Act 1982

Petroleum and Geothermal Energy Act 2000

Roxby Downs (Indenture Ratification) Act 1982

Stony Point (Liquids Project) Ratification Act 1981

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

Whyalla Steel Works Act 1958

MINISTER FOR WATER AND THE RIVER MURRAY

Water Industry Act 2012

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9.2 REGIONAL IMPACT ASSESSMENT

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

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

DMITRE did not submit any RIAS during the 2013-14 financial year.

9.3 MANAGING RISK AND FRAUD

Following the formation of DMITRE, a Risk Management Policy and Framework was developed and adopted in March 2012. An update of the divisional risk registers against the revised policy was completed in October 2012, and the divisional registers have since been reviewed annually.

Several divisions presented their high-level risk and associated controls to the Audit and Risk Management Committee during 2013-14.

In 2013-14 no incidences of fraud were identified.

9.4 WEBSITE LISTING

Website Name Website Address (www.) Description

DMITRE corporate website

www.dmitre.sa.gov.au Information about DMITRE’s priorities, support for industry and a comprehensive overview of the agency’s business units. Includes access to the South Australian Resources Information Geoserver.

Business, Industry and Trade

www.sa.gov.au/business Provides business-related advice, regulatory, support services and resources for small business in South Australia.

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

ImmigrationSA www.migration.sa.gov.au Provides information about how businesses, employers, organisations, merchants and other professional clients can nominate skilled workers in South Australia.

Industry Capability Network SA

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

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


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9.5 RECONCILIATION STATEMENT

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

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

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

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

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

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

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

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

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

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

• Commit to reconciliation, economic participation and sustainable opportunities.

9.6 MANAGEMENT OF HUMAN RESOURCES

9.6.1 CARING FOR OUR WORKFORCE

DMITRE maintains a safe and injury-free workplace for its staff through continuous review and improvement of work health and safety (WHS) and injury management systems. These systems align with the Workplace Health and Safety Act 2012, South Australia’s Strategic Plan, the Premier’s Zero Harm Vision and the business risk environment.

In 2013-14, a high-level commitment to WHS has continued to ensure a safe and healthy workplace. The development and implementation of WHS and injury management strategies has been monitored through the three WHS site committees and an overarching WHS and Injury Management Governance Committee. Key achievements have included revision of the suite of WHS and Injury Management procedures in line with new legislative requirements, development/revision of a substantial range of plant and chemical registers and conducting WHS prevention training of staff and injury management training of line managers.

In May and June 2014, DMITRE participated in the pilot public sector Audit and Verification (Safety and injury Management) System (AVS) evaluation program.

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

Number of notifiable occurrences pursuant to WHS Act Part 3 0

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

0

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Table 2: Gross workers compensation expenditure for 2013-14 compared with 2012-13

Expenditure 2013-14 ($000)

2012-13 ($000)

Variation ($000) + (-)

% Change + (-)

Income maintenance 70 85 -15 -18

Lump sum settlements Redemptions – Sect 42 1 0 +1 -

Lump sum settlements Permanent disability – Sect 43 41 0 +41 -

Medical/hospital costs combined 37 50 -13 -26

Other 8 0 +8 -

Total claims expenditure 157 135 +22 +16

Explanatory Note: Table 2:

• The increase in claims expenditure for 2013-14 is a reflection of the injury severity and return to work rate for a low number of claims.


Explanatory Note: Table 3:

While there was an overall increase in the number of new DMITRE claims for 2013-14, the total number remained relatively low and there were no new psychological claims. Given the low numbersof claims, performance can be distorted due to small variations and result in the public sector target not being met. The increased trend for income maintenance payments for 2012-13 injuries (at 24 months development) reflects injury severity and return to work rate. The trend for income maintenance for 2013-14 injuries (at 12 months development) has declined.

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

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

Table 3: Meeting safety performance targets

Base 2009-10

Performance: 12 months to end of June 2014*

Final target

Numbers or %

Actual Notional quarterly target**

Variation Numbers or %

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

0

2. New workplace injury claims 5 8 4 4 [target not met]

4

3. New workplace injury claims frequency rate*

6 10.4 4.8 5.57 [target not met]

4.5

4. Lost time injury frequency rate** 3.6 5.2 2.9 2.3 [target not met]

2.7

5. New psychological injury frequency rate 2.4 0 1.9 -1.93 [target exceeded]

1.8

6. Rehabilitation and return to work:

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

80%

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

90%

6c Days lost<=10days 50% 0% 60% 40% [target not met]

60%

7. Claim determination:

7a Claims determined for provisional in 7 calendar days

33.3% 75% 100% -25% [target not met]

100%

7b Claims determined in 10 business days 60% 66.7% 75% -8.33% [target not met]

75%

7c Claims still to be determined after 3 months

20% 0 3% -3% [target exceeded]

3%

8. Income maintenance payments for recent injuries:

8a 2012-13 injuries (at 24 months development)

$59 652 $2 249 $57 403 [target not met]

8b 2013-14 Injuries (at 12 months development)

$15 034 $24 878 -$9 844 [target exceeded]

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9.6.2 WORKFORCE DIVERSITYThe department’s workforce profile and its need to maintain close relationships with overseas trade offices and chambers of commerce, reinforces cultural diversity as an essential resource. This resource supports a dynamic, progressive and effective organisation and contributes to a strong economic community.

We acknowledge Aboriginal and Torres Strait Islander people as the first Australians, and share the vision of Reconciliation Australia “for an Australia that recognises and respects the special place, culture, rights and contribution of Aboriginal and Torres Strait Islander peoples; and where good relationships between First Australians and other Australians become the foundation for local strength and success; and the enhancement of our national wellbeing”.

DMITRE has developed a Reconciliation Action Plan which supports Aboriginal participation within the agency, and supports industry initiatives to encourage and support Aboriginal participation in the mining sector as well as supporting small business participation in the economy of South Australian economy.

To achieve these goals that benefit the economic and social development and prosperity of South Australia, DMITRE has worked in partnership with Aboriginal people to develop a strong relationship and a Reconciliation Plan to identify opportunities and build capability. The department acknowledges the approach towards reconciliation by addressing relationships, respect and opportunities as key deliverables. We will:

• develop relationships through effective and trusted stakeholder engagement to provide opportunities and strengthen our capacity to work collaboratively with Aboriginal people, industry and government departments

• develop respect through a high performing workforce and culture to actively cultivate behaviours that ensure work environments and services are respective and inclusive of Aboriginal people

• provide opportunities through high value data and research to deliver solutions and create opportunities to increase Aboriginal economic participation

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

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

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

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

• commit to reconciliation, economic participation and sustainable opportunities.

Table 4: Number of Aboriginal and/or Torres Strait Islander employees as at 30 June 2014

Male Female Total % of DMITRE Strategic target %*

Aboriginal/Torres Strait Islander 3 2 5 1.0 2.0

* Target from South Australia’s Strategic Plan.

Table 5: Aboriginal and/or Torres Strait Islander employees by salary bracket at 30 June 2014

Salary Bracket Aboriginal employees Total employees % Aboriginal employees

$54,799 1 26 3.9

$54,800 - $69,699 2 100 2.0

$69,700 - $89,199 1 163 0.6

$89,200 - $112,599 1 165 0.6

$112,600+ 0 44 0

Total 5 498 1.0

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9.6.3 PROMOTING INDEPENDENCEDMITRE has maintained its focus on promoting independence with the Disability Action Plan 2009-2014 being in effect during the reporting period.

Progress has been achieved against the six Disability Action Plan outcomes:

• access to DMITRE services and facilities

• information and communication about DMITRE services and programs

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

• consultation opportunities concerning service delivery, complaints and grievance mechanism

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

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

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

• ensure facilities are designed to reduce access barriers are reduced

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

• ensure the Ethical Conduct policy specifically caters for the non-discrimination of people with a disability, and extensive complaints and grievance mechanisms are in place

• ensure inclusive recruitment strategies, such as the ‘Employment of people with a disability – manager’s fact sheet’, and a co-operative agreement to refer recruitments to Disability WORKS Australia where possible.

Male Female Total % of DMITRE

3 2 5 1

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

9.6.4 WORKFORCE PROFILES

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

Table 9: Employee numbers by gender

Gender % Persons % FTEs

Male 54.8 56.7

Female 45.2 43.3

Persons 498

FTEs 476.6

* Benchmarks from ABS Publication Basic Community Profile (SA) Cat No. 2001.0.

Table 6: Cultural and linguistic diversity as at 30 June 2014

Male Female Total % of DMITRE % of SA community*

Number of employees born overseas 44 45 89 17.9 22.1

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

19 29 48 9.6 14.4

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Table 10: Status of employees in current positions

FTEs Ongoing Short-term contract

Long-term contract

Other (casual)

Total

Male 207.4 15.0 47.0 0.7 270.1

Female 170.7 18.9 16.9 0 206.5

Total 378.1 33.9 63.9 0.7 476.6

Persons Ongoing Short-term contract

Long-term contract

Other (casual)

Total

Male 210 15 47 1 273

Female 187 20 18 0 225

Total 397 35 65 1 498

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

Salary bracket Male Female Total

$54,799 8 18 26

$54,800 - $69,699 37 63 100

$69,700 - $89,199 85 78 163

$89,200 - $112,599 109 56 165

$112,600+ 34 10 44

Total 273 225 498

Table 12: Number of employees by age bracket by gender as at 30 June 2014

Age bracket Male Female Total % of total % of South Australian workforce benchmark*

15–19 0 0 0 0 6.7

20–24 3 9 12 2.4 10.5

25–29 12 20 32 6.4 10.2

30–34 28 36 64 12.9 9.9

35–39 38 32 70 14.1 11.2

40–44 30 40 70 14.1 11.9

45–49 31 21 52 10.4 12.3

50–54 34 28 62 12.4 11.3

55–59 47 26 73 14.7 8.6

60–64 36 7 43 8.6 5.0

65+ 14 6 20 4.0 2.4

Total 273 225 498 100 100

* Benchmark figure for 2007, ABS Catalogue Number 6291

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Classification Ongoing Contract tenured

Contract untenured

Total

Male Female Male Female Male Female Male % Female % Total

SAES1 0 0 0 0 22 7 22 56 7 18 29

SAES2 0 0 0 0 7 1 7 18 1 3 8

EX–E 0 0 0 0 1 0 1 3 0 0 1

EX–F 0 0 0 0 1 0 1 3 0 0 1

Total 0 0 0 0 31 8 31 79 8 21 39

Table 13: Number of executives by gender classification and status as at 30 June 2014

Male Female Total

Purchased leave 4 5 9

Flexi-time 197 173 370

Compressed weeks 8 5 13

Part-time 12 55 67

Job share 0 15 15

Working from home 9 7 16

Total 230 260 490

Table 14: Voluntary flexible working arrangements by gender

Table 15: Average days leave per full time equivalent employee

Table 16: Employees separated and recruited in 2013-14

Table 17: Documented review of individual performance development plans

2010-11 2011-12 2012-13 2013-14

Sick leave (paid and unpaid) 7.1 6.1 6.7 6.9

Family carer’s leave 1.4 1.0 1.1 0.9

Miscellaneous special leave 1.1 0.4 0.7 0.6

Number of persons during the 2012-13 financial year No.

Number of persons separated from the agency 87

Number of persons recruited 93

Number of persons on leave without pay (at 30 June 2014) 10

PS Act Employees 2013-14

% performance reviewed within last 12 months 22.7

% with performance review older than 12 months 15.3

% with no documented performance review 62.0

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Table 19: Accredited training packages by classification

Table 18: Leadership and management training expenditure

Classification ASO6 ASO7 ASO8 OPS2 PO3 PO4 SAES

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

Training and Development Total cost ($,000) % Total salary expenditure

Training and development expenditure (including HECS) 901 1.6

Leadership and management development expenditure 70 0.1

9.7 REPORTING AGAINST THE CARERS RECOGNITION ACT 2005

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

To highlight this commitment, DMITRE’s Special Leave Procedure provides provisions for carers that include:

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

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

9.8 REPORTING AGAINST THE WHISTLEBLOWER PROTECTION ACT 1993

The DMITRE Ethical Conduct policy, supported by a suite of preventative and corrective procedures, continues to provide guidance in relation to the Whistleblower Protection Act 1993. The policy sets out:

• the responsibilities of designated and trained Whistleblower Protection Officers

• the responsibilities of managers and employees in the process

• safeguards, including confidentiality, to employees making allegations

• procedures relating to untrue allegations

• communication and notification protocols.

No whistleblower reports were made in 2013-14.

9.9 ASBESTOS MANAGEMENT

Table 20: Annual Asbestos Risk Reduction Report 2013-14

Category Number of Sites Category Description Interpretation One or more items at these sitesAt start

of yearAt end of year

1 0 1 Remove Should be removed promptly

2 1 0 Remove as soon as practicable Should be scheduled for removal at a practicable time

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

4 0 3 Monitor condition Has asbestos present. Inspect according to legislation and policy

5 0 7 No asbestos identified / identified asbestos has been removed

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

6 12 2 Further information required These sites not yet categorised or some asbestos items do not have recommended actions

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9.10 GREENING OF GOVERNMENT OPERATIONS

DMITRE maintained its commitment to the Greening of Government Operations throughout the reporting year with the following programs continuing in the department:

• office recycling regime

• computers and photocopiers programmed for auto shut down mode to save power

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

• promotion of bike-friendly facilities

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

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

Table 21: Performance against annual energy use targets

Energy use (GJ)1 GHG emissions (tonnes)2

Business measure7 (MJ/m2/annum)

Base Year 2000-013 18 871 3 651 2 192

2013-14 Portfolio Target5 12 181 2 149 1 222

2013-14 Portfolio Total8 3 881 776 1 000

2014 Portfolio Target6 14 153 2 738 1 544

Notes:

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

2. DMITRE is pursuing a ‘triple bottom line’ reporting approach by including Greenhouse Gas Emissions (in CO2) as a means of quantifying a significant aspect of environmental performance. Greenhouse gas coefficients differ for fuel types.

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

4. To obtain mega joules (MJ) figure multiply GJ by 1000.

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

9.9 ASBESTOS MANAGEMENT CONTINUED

DEFINITIONS:

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

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

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

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

09 APPENDICES

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Notes continued:

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

7. Business measures are also known as normalisation factors. A key performance indicator for energy efficiency is energy intensity that is the energy consumed per unit of a given business measure. DMITRE uses the square metres (m2) of floor area of buildings leased as a business measure.

8. Due to changes in reporting systems, Corporate Fleet fuel consumption data is not included in the 2013-14 Portfolio total.

9.11 URBAN DESIGN CHARTER

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

In 2013-14 the department’s contribution to good urban design included its work in developing a mixed-use precinct for sustainable industries, research and education at Tonsley. The redevelopment site will demonstrate leading eco-industrial design principles, assisting industry (Including through case management and other programs) to support employment growth in line with the 30-year Plan for Greater Adelaide.

9.12 INDUSTRY PARTICIPATION AUTHORITY

In September 2013 the State Government made changes to the Industry Participation Policy (IPP). These changes included reducing the threshold at which tenderers are required to submit Industry Participation Plans. The commitments made in these plans subsequently become conditions of contract for successful tenderers.

It is a requirement for these tenderers to report to the awarding agency at least annually (or more often depending on the value of the contract)to demonstrate how they have performed against the commitments made in their IPP Plan in the areas of jobs, investment and supply chain.

In the 2013-14 financial year no tenders committed by DMITRE fell within the revised reporting scope of the Industry Participation Policy.

9.13 FREEDOM OF INFORMATION

The Freedom of Information Act 1991 (FoI Act) provides the public and Members of Parliament a legally enforceable right of access to documents held by South Australian Government agencies, subject to certain restrictions that are prescribed within the Act.

This Information Statement for 2013-14 is published in accordance with Section 9 of the Freedom of Information Act.

DEPARTMENTAL STRUCTURE AND FUNCTIONS

The department is comprised of the following business units to meet strategic objectives as summarised in DMITREs’ Strategic Directions – Our Focus for 2013-14:

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Contract Value South Australian IPP Plan Requirement

$4 million ($1 million in regional areas) and above, and less than $50 million

Reporting annually and on completion of the contract. Reporting is a contractual obligation.

Strategic Projects and projects over $50 million Reporting requirements to be negotiated between the agency and successful tenderer during contract award but to occur at least bi-annually and at end of contract. Reporting is a contractual obligation.


• Public Sector Renewal

• Olympic Dam Task Force

• Investment, Trade and Strategic Projects

• Manufacturing and Innovation

• Energy Markets and Programs

• Energy Resources

• Mineral Resources

• Strategy, People and Culture.

Information about the structure the DMITRE is shown in the department’s organisation chart on page XX of this report.

EFFECT OF THE DEPARTMENT’S FUNCTIONS ON MEMBERS OF THE PUBLIC

The department has a significant effect on the general public by creating jobs and wealth through advice and assistance. This vital cornerstone of the minerals, energy and manufacturing sectors underpin the creation of skilled jobs that in turn translates to a high standard of living.

HOW THE PUBLIC MAY PARTICIPATE IN THE DEPARTMENT’S POLICY DEVELOPMENT

The public may participate in the department’s policy development through community consultations and membership of government boards, committees and working groups. The department consults with major industry groups and service providers in its policy planning and development.

DESCRIPTION OF THE TYPES OF DOCUMENT HELD BY THE DEPARTMENT

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

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

• investment facilitation and trade development

• mineral and energy resources

• manufacturing, small business and services

• energy regulation

• financial management

• human resource management

• policy documents

• general publications on reviews, strategic directions and evaluations of assessment and proposals

• administration files.

DOCUMENTS AVAILABLE FOR PURCHASE

The types of documents available for purchase include:

• information sheets/brochures

• bulletins

• Special Bulletins

• explanatory notes

• Mineral Industry Quarterly

• Quarterly Geological Notes

• Mines and Energy Review

• handbooks

09 APPENDICES

9.13 FREEDOM OF INFORMATION CONTINUED

P 52

• Investigations reports

• special publications

• soils publications

• SA geology/digital plots

• geological maps (including non-metallic resource map series)

• metropolitan geological/resources maps.

DOCUMENTS AVAILABLE FREE OF CHARGE

Free of charge documents are available online via SARIG www.minerals.dmitre.sa.gov.au/sarighelp/databases/publications_and_reports2 Documents that are available free of charge include:

• Mines and Energy SA Journals

• information sheets

• brochures

• mining reviews, bulletins and reports

• PACE 2020 - publications and reports

• Resources and Energy plans

• Resources and Energy photographs

• Exploration Licence Report

• company mining programs and reports

• regulatory guidelines

• Ministerial Determinations.

DEPARTMENTAL POLICY DOCUMENTS

The department has many internal policy and procedure documents that relate to:

• accounts receivable

• asset management

• business planning and reporting

• communications support

• corporate governance and risk management

• financial management

• Financial Management Compliance Program

• grants and sponsorship

• proactive disclosure

• taxation

• work health and safety.

TO ACCESS POLICY DOCUMENTS

a request for access to documents can be sent to:

Accredited FOI Officer DMITRE, 131 139 Grenfell Street ADELAIDE 5000

Arrangements can be made to view document at this address between 9:00am and 5:00pm (except weekends and public holidays).

09 APPENDICES



09 APPENDICES

ACCESS TO DOCUMENTS UNDER THE ACT

Pursuant to Section 13 of the Freedom of Information Act 1991, applications for access to documents held by an agency must:

• be made in writing (by letter or using the application form)

• specify that the application is made under the Freedom of Information Act 1991

• be accompanied by the application fee (exemptions apply for Members of Parliament and pensioners or health care card holders). Note that additional processing charges may be incurred as prescribed by the Fees and Charges Regulations

• specify an address in Australia to which information can be sent

• provide such information to clearly identify the documents being sought

• specify the form of access such as inspection of the document or a copy

• be lodged with an office of agency.

REQUEST TO AMEND A DOCUMENT

To apply to amend a record(s) held by the department relating to personal affairs if the applicant considers them to be incomplete, incorrect, out-of-date or misleading, the application must:

• be made in writing either by letter or application form

• specify that the application is made under the Freedom of Information Act 1991

• specify an address in Australia to which information can be sent

• clearly identify the record to be amended

• provide such information as is necessary in order for the records to be amended.

CONTACT ARRANGEMENTS

Forward applications for access, or amendment of records to:

Accredited Freedom of Information Officer DMITRE GPO Box 1264 Adelaide SA 5001

For more information, telephone the FoI Officer on (08) 8303 2297 during office hours, Monday to Friday 9:00am to 5:00pm.


9.14 CONSULTANTS

Consultancies below $10 000

No. Consulting firm Purpose of consultancy $’000

27 Michael Moore Review, assess and provide lead health and environmental matters in relation to the Port Pirie Smelter transformation project

KPMG Professional services for Strategy, People and Culture workshop

D R Mutton Provision of advisory and coaching services

ABFA Pty Ltd Advisory services to the Budget and Finance Executive Committee regarding management of the department's budget and other related financial matters

Prozess Pty Ltd Analysis and identification of improvements of the Buzz Honey manufacturing process and facility

Table 22: Number and overall expenditure of consultancies engaged

P 54

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Consultancies below $10 000 continued


Sage Automation (SA) Pty Ltd Analysis and identification of improvements of the Buzz Honey manufacturing processes and facility

Fyfe Pty Ltd Provision of the Tonsley Sustainability Assessment Matrix

Rider Levett Bucknall SA Pty Ltd

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

Sentium Review and provide value proposition for Guar Gum

BDO Advisory (SA) Pty Ltd Probity advice for procurement for provision and maintenance of South Australia, State and Local Government Business Licensing Information ABLIS

Adelaide Research & Innovation Investment Trust

Evaluation of the Pilot Servitisaton as Innovation in Manufacturing Firms Applied Learning Program

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

The University of Adelaide Engagement of the Fraunhofer visit to Adelaide

Halifax House Consulting Pty Ltd

Immigration SA development & facilitation of team development workshop

Tanya Perry & Associates Pty Ltd

Development of customer service training for Immigration SA

SA Centre for Economic Studies

Assessment of the Potential New Employment Impact of New Major Projects for Major Developments Directory 2013/14

KRG Consultants Review and suggest changes to the Renewal of the South Australian Government's Vision and Strategy for Renewable Energy document

Light Naturally Conduct an assessment of and provide written advice on existing international methodologies, standards or guidelines for establishing energy efficiency requirements for streetlights and related performance requirements for lighting installations for various classes of roads

SLR Consulting Australia Pty Ltd

Geotechnical review for Hillside Copper Mine

URS Australia Pty Ltd Response to auditor comments on the deliverable final report for Brukunga Phase 2

Minex Consulting Pty Ltd Compilation of exploration trends in the mining sector

K Ashcroft Consulting Facilitation of a resource and information values & group norms session

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

Lamont Connections Design of a Guideline for Understanding Mineral Exploration in South Australia

Chamonix IT Management Provision of share point development services relating to modification and enhancement to the Mining Exploration Compliance Management System

Colin Dunn Consulting Provide a regional characterisation of major plant species biogeochemistry in relating to underlying and largely unknown substrates in the Eucla Basin region of western South Australia


Consultancies below $10 000 continued


Xenocryst Pty Ltd Provide a regional characterisation of major plant species biogeochemistry in relating to underlying and largely unknown substrates in the Eucla Basin region of western South Australia

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

VALUE OF CONSULTANCIES (BELOW $10 000) 157

Consultancies above $10 000 and below $50 000


35 KPMG Implementation advice for the Strategy, People and Culture Organisational Review

KPMG Design of the Mining and Petroleum Services Centre of Excellence

Rennick & Associates Pty Ltd Develop and conduct a survey of automotive industry manufacturers

Professional Public Relations Pty Ltd

Development of a Digital Marketing Strategy

High Performing Workplaces Pty Ltd

Flexible Working Arrangements project for South Australian Government

Econsearch Compilation of Interstate Trade Data

Brubrior Investments Pty Ltd Growing Advanced Manufacturing Cabinet Task Force Sub Committee

Rodeo Creative Pty Ltd Innovation Project consultancy services

Thinc Projects Australia Pty Ltd

Strategic Project Management Services for the roll-out of the Manufacturing Works Strategic Framework

Tim Horton Pty Ltd Provision of advice relating to the promotion of an Innovation Agenda


Developing industrial rejuvenation strategies for the automotive industry

Calder Consultants Pty Ltd Research and data analysis for the strategic brief for the Innovation to Commercialisation Centre

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

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

Synergy Project Management Pty Ltd

Project management services for the Tonsley redevelopment project

ACE Services Pty Ltd Provision of consultative services of the Chair of the South East Forestry Partnerships Program

FK Consulting Value chain mapping for Unconventional Gas, Cellulose Fibre (forestry) and Grain for South Australia

Mark Canny Consulting Research towards an automotive industry financial model

09 APPENDICES

P 56

Consultancies above $10 000 and below $50 000 continued


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

CQ Partners Pty Ltd Consultancy services for procurement services for large customers

Fyfe Pty Ltd Water engineering consultancy services for the Office Technical Regulator

Australian Information Industry Association

ICT Road Map Industry Roundtable for Minerals and Energy Resources including engagement and briefing of speakers, preparation of collaborative project proposals, workshop facilitation and report of outcomes

Australian Information Industry Association

ICT Engagement in Resources Plan

KPMG Creation of a tracking tool for Centre of Excellence opportunity monitoring for the Mining and Petroleum Services Centre of Excellence

Pacwest Consulting Partners International intelligence into the economic viability of growing, processing & future supply of guar gum products for use in Oil and Gas industries

JBS & G (Vic & SA) Pty Ltd Independent technical review for the Hillside Copper Project

O'Kane Consultants Pty Ltd Facilitation and review of Failure Modes, Effects Analysis (FMEA) and the closure planning assessment

Kevin Rosengren & Associates Independent peer review of reports and analysis of data for the Hillside Project

Earth Systems Consulting Pty Ltd

Provision of the Brukunga Water Quality Toxicological Risk Assessment and Exposure Pathway Analysis Risk Assessment

PF Hall Undertake research into issues around the effectiveness of the Native Title Process under Part 9B of the Mining Act 1971 from the Stakeholder perspective

Rider Levett Bucknall SA Pty Ltd

Provision of unit cost rate review for the Rehabilitation Liability Calculator

GHD Pty Ltd Preparation of the Resource Area Management Plan

GHD Pty Ltd Facilitation of community consultation to establish a framework through which mining companies can identify the requirements to establish a consultative group

Sinclair Knight Merz Review of the current GAS criteria for Borrow Pits

Golder Associates Professional services related to the Cooper-Eromanga Basins Water Balance

NAC International Inc Analysis of the opportunities for South Australian uranium in India

VALUE OF CONSULTANCIES (ABOVE $10 000 and BELOW $50 000) 899

09 APPENDICES

Consultancies above $50 000


37 Ferrier Hodges Professional services rendered in relation to advisory services for the Olympic Dam expansion project and the Port Pirie Smelter Transformation project


Consultancies above $50 000 continued


Fenix Performance Solutions Independent expert advice on prudential management matters in relation to the Port Pirie Smelter Transformation project

Contaminated land investigation for phase three of the Brukunga project

Grant Samuel Provision of advice and review for the Port Pirie Smelter Transformation project

KPMG Professional services for Shaping the Future of SA

MLCS Corporate Pty Ltd Provision of a regional procurement strategy feasibility study for Anangu Pitjantjatjara Yankunytjatjara (APY) lands


Identify the demand and opportunities in the Assistive Technologies Industry

Intellectual Capital Services Research , collation and provision of reportson the automotive industry

Prozess Pty Ltd Undertake an assessment of the Spring Gully Foods operations to identify efficiency improvements

Thinc Projects Australia Pty Ltd

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

SGS Economics & Planning Preparation and development of the Tonsley Precinct Governance Model including stakeholder consultation

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

Grant Thornton Australia Ltd Provision of advisory services regarding the automotive industry

ACIL Allen Consulting Provision of Value Chain analysis for Cellulose Fibre and Unconventional Gas industry sectors

Intellectual Capital Services Provision of advice to the department on the most effective and efficient means of delivering outcomes in accordance with the strategic objectives of the agency

PAC Project Advisors Australia Pty Ltd

Independent review of assembly operations within the automotive industry

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

PPS Global Implement a strategy for diversification program to support automotive supply chain companies

Intellectual Capital Services Identify and document the defence industry supply chains of three European firms with a view to identifying the opportunities for SA Firms to participate in those supply chains

KPMG Delivery of 'Innovation for Growth' Pilot Program

Auto CRC Provision of supply chain review and identification of cost saving opportunities across within the automotive industry

Greg Combet Pty Ltd Professional services and advice in the role of the Automotive Transformation Coordinator

09 APPENDICES

P 58

Consultancies above $50 000 continued


Manufacturing Focus Pty Ltd Review of research capability relating to key manufacturing technologies, including equipment and technology, research capability and links to South Australian Industry.

Ernst & Young Economic Development Plan and Investment Attraction Strategy for the Tonsley redevelopment project

Delivery of an outline business case for the Innovation to Commercialisation Centre

Intellectual Capital Services Provision of expert advice relating to the automotive industry

Applied Value KB Provision of consultancy services and research on the automotive industry

BRM Hayes QC Assist in the final development, refinement and implementation of the India Trade, Investment & Migration Strategy

Norman Waterhouse Provision of a South Australian Government Strategic Advisor to China and assisting the department in the refinement and implementation of initiatives contained within the China Strategy

Energy Efficient Strategies Review of residential energy efficiency activities under the SA Residential Energy Efficient Scheme (REES)

Pitt & Sherry (Operations) Pty Ltd

National industry based information register, needs and gap analysis and strategy to develop and support the knowledge and capacity of key professions and trade to deliver best practice energy efficiency to the building industry

Swinburne University of Technology

National industry based information register, needs and gap analysis and strategy to develop and support the knowledge and capacity of key professions and trade to deliver best practice energy efficiency to the building industry

ACIL Allen Consulting Pty Ltd Provision of an independent study review of operations of the automotive industry

Price Waterhouse Coopers Provision of a feasibility study on the viability, structure and proposed training facility located at former mine site at Brukunga in the Adelaide Hills including the recommended approach for funding, operation and governance of the facility

Environmental Earth Sciences (Glaeba (02) Pty Ltd)

Provision of an environmental audit for the Brukunga Mine Remediation Program

PPS Global Independent advice on the automotive industry

Golder Associates Provision of 3D Hydrogeological Modelling for the Brukunga Remediations Project

Sinclair Knight Merz Provision of geotechnical, hydrogeological and geomorphological investigations, design services and associated works for the Brukunga mine remediation project

Economics Consulting Services

Evaluation of the Plan for Accelerating Exploration Program

VALUE OF CONSULTANCIES (ABOVE $50 000) 4 808

TOTAL VALUE OF ALL CONSULTANCIES 5 864

09 APPENDICES


Number of employees

Destination/s Reasons for travel Total cost to agency

3 Shanghai, Beijing, Shenzhen and Hong Kong (China)

The South Australian Government has developed a strategy for its interaction with China, with the aim to maximise the trade and inward investment opportunities in key sectors.

Attend Migration Agent training and targeted meetings to advertise the new reduced South Australian Government Business migration requirements.

29 140

4 Houston and Denver (USA) Attend and present a paper at the 2013 Unconventional Resources Technology Conference followed by a 2 day workshop with United States Geological Survey (USGS) and Geoscience Australia.

49 677

1 Bengaluru (India) To undertake key duties at the Mining MAZMA - Mining Exploration Convention and Trade Show at the Australian Exhibition Booth and present South Australia's Mineral Resources and investment opportunities as part of the Minerals Australia conference session.

4 680

4 Shanghai, Jinan, Qingdao and Beijing (China)

Facilitate the official visit and program in China for the Minister for Manufacturing, Innovation and Trade and the Shadow Minister in their visit to Shanghai, Jinan, Qingdao and Beijing in support of the implementation of the South Australia China engagement strategy.

65 606

1 Hong Kong and Guangdong (China) and Taipei (Taiwan)

Develop a closer understanding of the fresh fruit and vegetable Asian markets and to increase knowledge in relation to the protocols and challenges of export fresh fruit and vegetables to some of our Asian markets and in particular China.

8 707

1 Austin (USA) Attendance as part of the South Australian Public Sector Transformative Leadership Program. This involved executives from South Australia and Texas public sectors undergoing collaborative development at the Universities of Texas and Adelaide.

13 223

1 Manila and Tagaytay (Philippines)

Attendance at International Energy Agency Geothermal Implementing Agreement (IEA-GIA) Executive Committee meetings as Australia's national representative.

9 375

3 Mumbai and Delhi (India) Facilitate the official visit and program in India for the Minister for Manufacturing, Innovation and Trade and the Shadow Minister in their visit to Mumbai and Delhi in support of the implementation of the South Australia India engagement strategy.

47 390

1 Beijing (China) To attend and be an invited panellist/presenter at the Global Unconventional Gas Conference in Beijing.

8 064

9.15 OVERSEAS TRAVEL

Details of overseas travel undertaken by DMITRE staff during 2013-14 are listed below. Costs include salaries of related employees, airfares, other transport and accommodation.

Table 23: Overseas travel

09 APPENDICES

P 60

09 APPENDICES

Number of employees


3 Nanjing, Beijing, Tianjin and Kunming (China)

Visit Nanjing Centre of China Geological Survey in Jiangsu Province. Participate in Team Australia presentations and meetings in Beijing and China Mining in Tianjin. Undertake visiting program of Kunming University of Scientific and Technology China requiring the delivery of lectures and presentations. Undertake international collaborative research programs through meetings and field trips on uranium mineral systems in China.

58 255

2 Kunming and Yantai (China) Due diligence exercise to inspect preferred Enclosed Bath Smelting (EBS) technologies selected through the Nyrstar Pre-feasibility Study.

27 839

5 Houston and Denver (USA) Promote South Australian upstream petroleum exploration opportunities, including unconventional gas plays, to attract investment at the premier petroleum industry acreage deal event NAPE (North American Petroleum Expo) in Houston. Participate in Team Australia promotions at NAPE with representative from the Commonwealth, other states and the Northern Territory. Promote South Australian opportunities including the 2013 Copper acreage release.

85 327

1 San Francisco, Portland, Houston, Austin and Dallas (USA)

Executive attendance as part of the South Australian Public Sector Transformative Leadership Program approved by Department of the Premier and Cabinet. This involves executives from South Australia and Texas public sectors undergoing collaborative development at the University of Adelaide and Lyndon and Johnson School of Public Affairs (University of Texas).

20 873

1 Santiago (Chile) Meeting with SERNAGEOMIN officials (National Geological and Mining Survey of Chile) to further develop the program of activities of the Memorandum Of Understanding for 2014 and beyond in regards with the areas of mining regulation and mine closure. Attend the Enviromine 2013 conference and gain an understanding of current practices and new trends addressing the environmental challenges facing the mining industry.

7 446

1 London (UK) Present at Mines and Money International Mining Investment Conference, London and Represent South Australia at the Australian Pavilion in the Mines and Money Exhibition.

19 901

3 Jinan, Shandong, Shanghai and Qingdao (China)

Furthering the State's economic relations with China by progressing the Shandong Sister State initiative under the State's China Strategy for investment and trade outcomes. Meet with the Shandong Sub-Committees on Trade and Investment and Minerals and Resources to report on the work of the South Australia Trade and Investment committee, responding to Shandong's proposal for project cooperation and presenting those initiatives that have been developed by South Australia's Committees.

40 571

Table 23: Overseas travel continued


Number of employees


1 Chennai and Kochi (India) and Colombo (Sri Lanka)

To participate in a fishing industry study and information mission to India and Sri Lanka to identify key trade initiatives.

9 443

1 Vancouver (Canada) Attend the Vancouver Minerals Exploration Roundup 2014 Convention and attend the South Australian Booth.

26 055

2 Beijing, Shanghai, Jinan, Chengdu, Xiamen, Shenzhen, Guangzhou and Hong Kong (China)

Promote South Australia's business migration program by working with one migration agent who has provided South Australia with the highest number of Significant Investor Visa applications. Conduct seminars with this agent and affiliated sub agents as a road show in several cities in China.

33 ,873

2 Toronto (Canada) and London (UK)

Attendance at the 2014 Annual Prospectors & Developers Association of Canada (PDAC) International Convention, Trade Show & Investors Exchange in Toronto, Canada.

Targeted South Australia Resource Seminar and Meetings with London Finance and Resources Brokers in conjunction with South Australia Government Agent General's Office in London.

55 959

3 Toronto (Canada) Attendance at the 2014 Annual Prospectors & Developers Association of Canada (PDAC) International Convention, Trade Show & Investors Exchange in Toronto, Canada.

Develop competency and familiarisation in Mining Industry Participation Office (MIPO) on global minerals supply chains and services and leading best practice. Establish supply chain contacts with a view to connecting South Australia Business into Global Supply Chains. Visit Sudbury Centre for Excellence in Mining and Innovation with a view to developing a similar model in South Australia aimed at developing industry focused research and innovation.

41 425

1 Chennai, Hyderabad, Mumbai, Rune and Delhi (India)

This program is focused on furthering the State's economic relations with India by progressing initiative under the South Australia - India Engagement Strategy.

14 149

1 London, Edinburgh (UK) and San Francisco (USA)

London - visit Imperial College Centre for Carbon Capture and Storage (CCS) to learn about current status of CCS research in Europe and also attend the working group on Transportation Standard.

Edinburgh - visit the UKCCS Research Centre at Heriot-Watt University to learn about status of CCS research.

San Francisco - Attend the International Partnership for Geothermal Technology (IPGT) Workshop for finalising White Paper for Induced Seismicity research project and also attend the Stanford Geothermal Conference.

18 170

1 San Francisco (USA) Attend the IPGT Workshop for finalising White Paper for Induced Seismicity research project and also attend the Stanford Geothermal Conference.

7 772


09 APPENDICES

P 62

Number of employees


1 Kuala Lumpur, Penang and Kota Kinabalu (Malaysia) and Singapore (Singapore)

Conduct a series of seminars in Malaysia and Singapore to increase South Australia's share of business migration applications from the region and develop relationships with migration agents in the region.

14 588

1 Paris (France) To sustain competence to understand industry's drivers and technology challenges; regulate geothermal operations in South Australia; attract investment into the geothermal energy sector; and policy advice to underpin public trust in multiple-use land for geothermal energy projects.

9 618

1 Beijing, Shanghai, Jinan and Qingdao (China)

Support the Premier in discussions with Shandong government. Meet with Shandong Department of commerce and Qingdao Department of Commerce to progress program for May Trade and Investment Forums in Shandong.

10 924

1 Singapore (Singapore) To attend and present at the Society of Petroleum Engineers Hydraulic Fracturing Workshop.

3 871

1 Ouro Preto (Brazil) Attendance at the Frontiers and Tendencies in Mineral Exploration as part of the SIMEXMIN 2014 Symposium. Appointed by the Society of Economic Geologists (SEG) as International Exchange Lecturer for 2014.

15 927

1 Shanghai, Jinan, Qingdao and Beijing (China)

Accompany and deliver TradeStart services to producers and farmers from the Southern Mallee District Council region; and support investment/trade ready companies from the Limestone Coast region on a mission to China to enhance their knowledge of market access channels and to meet with potential investors.

Work with Asian Agribusiness Consulting for 2 days following the Qingdao event.

10 509

2 Shanghai, Jinan and Qingdao (China)

Support a delegation of South Australian Companies participating in the investment attraction and trade activities in Jinan and Qingdao.

Hold High Level Working Group discussions with Shandong counterparts.

Participate in and support the China program for the Minister for Manufacturing, Innovation, Trade and the Shadow Minister for Trade.

94 503

2 Kiruna, Skelleftea and Stockholm (Sweden)

Develop a detailed understanding of the recent innovations in mining technologies in Sweden - Europe's largest mining nation and home of the largest capital equipment suppliers to Australia mines. Visit state of the art minerals processing facilities including the Luossavaara-Kiirunavaara Aktiebolag (LKAB) iron ore mine in Kiruna and the Boliden smelter. Attend the Euro Mine Expo in Skelleftea and receive presentations from Lulea University of Technology and the Ministry of Enterprise Stockholm. Attend a function hosted by The Australian Embassy in Sweden aimed at providing networking opportunities for both Australian and Swedish companies.

52 850


09 APPENDICES


Table 24: Accounts payable performance for the year to 30 June 2014

Number of accounts paid

% of accounts paid

Value in $A of accounts paid

% of accounts paid (by value)

Paid by due date* 12 934 96.5 388 478 545 98.0

Paid within 30 days or less from due date 378 2.8 6 041 793 1.5

Paid more than 30 days from due date 96 0.7 1 888 903 0.5

9.16 ACCOUNTS PAYMENT PERFORMANCE

9.17 BOARDS AND COMMITTEES

In 2013-14 DMITRE supported the following boards and committees:

• Advanced Manufacturing Council

• Business Development Council

• Mining Industry and Participation Office Advisory Council

• South Australia-China Advisory Committee

• South Australia –India Advisory Committee

• Board of Examiners for Mine Managers

• Brukunga Mine Site Remediation Board

• Electrical Technical Advisory Committee

• Energy Consumers’ Council

- The Energy Consumers’ Special Needs Sub-Committee

- The Energy Consumers’ Council Demand Side Management Sub-Committee

• Extractive Areas Rehabilitation Fund Project Assessment Panel

• Resources and Energy Sector Infrastructure Council

• Resources Industry Development Board

• Roxby Downs Advisory Reference Group

• Consumer Advisory Committee

• Electricity Act 1996 Assessors Panel

• Gas Act 1997 Assessors Panel

• Gas Technical Advisory Committee

• Water Technical Advisory Committee

• Power Line Environment Committee

• Industries Development Committee (Parliamentary committee)

Number of employees


1 Victoria, Vancouver, Calgary, Dallas, Fort Worth and Regina (Canada) and Los Angeles (USA)

Engagement and planning activities in Memorandum Of Understanding with Saskatchewan Geological Survey, and meetings with research collaborators and planning future engagement in British Columbia.

18 886


09 APPENDICES

* Note: The due date is defined within Section 11.8 of Treasurer's Instruction 11 - Payment of Creditors' Accounts

P 64

09 APPENDICES


INDEPENDENT AUDIT REPORT

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014

DISAGGREGATED DISCLOSURES - EXPENSES AND INCOME FOR THE YEAR ENDED 30 JUNE 2014

DISAGGREGATED DISCLOSURES - ASSETS AND LIABILITIES AS AT 30 JUNE 2014

STATEMENT OF ADMINISTERED COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014

STATEMENT OF ADMINISTERED FINANCIAL POSITION AS AT 30 JUNE 2014

STATEMENT OF ADMINISTERED CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014

STATEMENT OF ADMINISTERED CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014 SCHEDULE OF EXPENSES AND INCOME ATTRIBUTABLE TO ADMINISTERED ACTIVITIES FOR THE PERIOD ENDED 30 JUNE 2014

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FINANCIAL STATEMENTS10

P 66

10 FINANCIAL STATEMENTS



P 68




P 70



Note No.

2014 $’000

2013 $’000

Expenses

Employee benefit expenses 5 58 680 52 263 Supplies and services 6 50 839 51 173 Depreciation and amortisation expenses 7 2 059 2 290 Grants and subsidies 8 24 846 21 795 Other expenses 9 1 342 8 Net loss from disposal of non-current assets 17 12 3

Total expenses 137 778 127 532

Income

Revenues from fees and charges 12 21 585 17 421 Technical regulation 13 6 384 6 277 Sale of electricity 14 4 630 3 860 Commonwealth revenues 15 1 425 1 116 Interest revenues 16 6 15 Other revenues 18 7 186 6 413

Total income 41 216 35 102

Net cost of providing services (96 562) (92 430)

Revenues from / payments to SA Government

Revenues from SA Government 19 96 064 91 985 Payments to SA Government 19 (1 109) -

Net result (1 607) (445)

Other comprehensive income Items that will not be reclassified to net resultChanges in asset revaluation surplus 24 1 679 5

Total comprehensive result 72 (440)

The net result and comprehensive result are attributable to the SA Government as owner.

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


STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2014

P 72

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2014

Note No.

2014 $’000

2013 $’000

Current assets

Cash 20 22 493 21 379 Receivables 21 4 966 6 588 Financial assistance debtors 22 16 517 Non-current assets classified as held for sale 23 7 500 -

Total current assets 34 975 28 484

Non-current assets

Financial assistance debtors 22 - 453 Property, plant and equipment 24 25 088 30 661

Total non-current assets 25 088 31 114

Total assets 60 063 59 598

Current liabilities

Payables 26 12 592 11 498 Employee benefits 27 6 906 6 822 Provisions 28 134 139 Other liabilities 29 7 170 8 294

Total current liabilities 26 802 26 753

Non-current liabilities

Payables 26 595 558 Employee benefits 27 9 431 8 903 Provisions 28 466 475 Other liabilities 29 1 058 1 297

Total non-current liabilities 11 550 11 233

Total liabilities 38 352 37 986

Net assets 21 711 21 612

Equity

Retained earnings 16 152 17 732 Asset revaluation surplus 5 559 3 880

Total equity 21 711 21 612

The total equity is attributable to the SA Government as owner.

Unrecognised contractual commitments 30Contingent assets and liabilities 31




Note No.

Asset Revaluation

Surplus $’000

Retained Earnings

$’000

Total$’000

Balance at 30 June 2012 3 875 17 200 21 075 Prior period adjustment - 370 370

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

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

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

Revaluation of plant and equipment 5 - 5

Balance at 30 June 2013 3 880 17 125 21 005

Prior period adjustment - 607 607

Restated balance at 30 June 2013 3 880 17 732 21 612

Net result for 2013-14 - (1 607) (1 607)

Revaluation of plant and equipment 24 1 679 - 1 679

Total comprehensive result for 2013-14 1 679 (1 607) 72

Net assets transferred as a result of an administrative restructure

32 - 27 27

Balance at 30 June 2014 5 559 16 152 21 711


All changes in equity are attributable to the SA Government as owner.



STATEMENT OF CHANGES IN EQUITY

P 74

Note No.

2014Inflows (Outflows)

$’000

2013 Inflows (Outflows)

$’000

Cash flows from operating activities Cash outflows

Employee benefit payments (58 045) (62 588)Payments for supplies and services (57 740) (66 838)GST paid to the ATO (704) (602)Payments for security deposits (214) (1 151)Payments for grants and subsidies (24 492) (24 424)Payments for paid parental leave scheme (101) (44)

Cash used in operations (141 296) (155 647)

Cash inflows

Fees and charges 20 652 24 114 Receipts from technical regulation 6 384 7 993 Receipts from sale of electricity 4 683 5 154 Commonwealth revenues 1 569 1 068 Interest received 8 13 GST recovered from the ATO 6 476 6 519 Receipts for security deposits 73 7 169 Receipts from paid parental leave scheme 101 44 Receipts from restructure activities - 2 130 Proceeds from the repayment of financial assistance 2 22 Other receipts 9 288 6 495

Cash generated from operations 49 236 60 721

Cash flows from SA Government

Receipts from SA Government 96 064 91 985 Payments to SA Government (1 109) -

Cash generated from SA Government 94 955 91 985

Net cash provided / (used in) by operating activities 34 2 895 (2 941)

Cash flows from investing activities Cash outflows

Purchase of property, plant and equipment (1 787) (1 044)

Cash used in investing activities (1 787) (1 044)

Cash inflows

Proceeds from sale of property, plant and equipment 6 125

Cash generated from investing activities 6 125

Net cash used in investing activities (1 781) (919)

Net increase / (decrease) in cash 1 114 (3 860)

Cash as at the beginning of the period 21 379 25 239

Cash as at the end of the period 20, 34 22 493 21 379




STATEMENT OF CASH FLOWS


ACTI

VITY

1:

Publ

ic S

ecto

r Ren

ewal

ACTI

VITY

2:

Econ

omic

Dev

elop

men

tAC

TIVI

TY 3

:M

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ACTI

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4:

Oppo

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for

Smal

l Bus

ines

s

ACTI

VITY

5:

Wat

er In

dust

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Tech

nica

l and

Saf

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Regu

latio

n

(ref

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14$’

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2013

$’

000

2014

$’00

020

13

$’00

020

14$’

000

2013

$’

000

2014

$’00

020

13

$’00

020

14$’

000

2013

$’

000

Expe

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Empl

oyee

ben

efit e

xpen

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- 1

74

251

1

234

4

2 16

5 3

8 13

5 7

28

896

1

258

7

30

Supp

lies

and

serv

ices

- 1

166

3

2 3

23

37

532

37

037

489

8

51

809

5

46

Depr

ecia

tion

and

amor

tisat

ion

expe

nses

- -

- -

1 2

51

1 5

50

40

59

- -

Gran

ts a

nd s

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- -

- 5

1

2 91

1 1

2 91

9 2

85

252

-

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- -

- -

1 0

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6

13

- -

- Ne

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- -

- -

9

95

- 3

-

-

Tota

l exp

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s -

1 3

40

283

1

562

9

4 87

5 8

9 74

2 1

555

2

061

2

067

1

276

Inco

me

Reve

nues

from

fees

and

cha

rges

- -

- -

21

585

17

421

- -

- -

Tech

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l reg

ulat

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- -

- -

6 3

84

6 2

77

- -

- -

Sale

of e

lect

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- -

- -

4 6

30

3 8

60

- -

- -

Com

mon

wea

lth re

venu

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- -

- 7

60

177

1

-

- -

Inte

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reve

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- -

- -

4

12

- -

- -

Othe

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s -

- -

1

3 6

62

3 0

11

35

52

2 4

47

992

Tota

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ome

- -

- 1

3

7 02

5 3

0 75

8 3

6 5

2 2

447

9

92

Net c

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f pro

vidi

ng s

ervi

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- (1

340

) (2

83)

(1 5

61)

(57

850)

(58

984)

(1 5

19)

(2 0

09)

380

(2

84)

Reve

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from

/ pa

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ts to

SA

Gove

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Reve

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from

SA

Gove

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- -

- -

- -

- -

- -

Paym

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to S

A Go

vern

men

t -

- -

- -

- -

- -

-

Net r

esul

t -

(1 3

40)

(283

) (1

561

) (5

7 85

0) (5

8 98

4) (1

519

) (2

009

) 3

80

(284

)

FOR

THE

YEAR

END

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0 JU

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014


DISA

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P 76

ACTI

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6:

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ACTI

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7:

Man

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ACTI

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Gene

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No

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ACTI

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(ref

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14$’

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2013

$’

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$’00

020

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$’00

020

14$’

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$’00

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6 3

94

5 2

79

7 8

84

5 8

15

- -

- -

58

680

52

263

Supp

lies

and

serv

ices

4 9

94

6 4

89

5 1

14

4 7

61

1 8

69

- -

- 5

0 83

9 5

1 17

3 De

prec

iatio

n an

d am

ortis

atio

n ex

pens

es 3

64

385

4

04

296

-

- -

- 2

059

2

290

Gr

ants

and

sub

sidi

es 6

66

1 6

65

10

944

6 9

54

40

- -

- 2

4 84

6 2

1 79

5 Ot

her e

xpen

ses

147

1

1

75

1

- -

- -

1 3

42

8

Net l

oss

from

dis

posa

l of n

on-c

urre

nt a

sset

s 1

(1

07)

2

12

- -

- -

12

3

Tota

l exp

ense

s 1

2 56

6 1

3 71

2 2

4 52

3 1

7 83

9 1

909

-

- -

137

778

1

27 5

32

Inco

me

Reve

nues

from

fees

and

cha

rges

- -

- -

- -

- -

21

585

17

421

Tech

nica

l reg

ulat

ion

- -

- -

- -

- -

6 3

84

6 2

77

Sale

of e

lect

ricity

- -

- -

- -

- -

4 6

30

3 8

60

Com

mon

wea

lth re

venu

es 3

37

338

3

27

601

-

- -

- 1

425

1

116

In

tere

st re

venu

es 1

2

1

1

-

- -

- 6

1

5 Ot

her r

even

ues

239

6

66

802

1

691

1

-

- -

7 1

86

6 4

13

Tota

l inc

ome

577

1

006

1

130

2

293

1

-

- -

41

216

35

102

Net c

ost o

f pro

vidi

ng s

ervi

ces

(11

989)

(12

706)

(23

393)

(15

546)

(1 9

08)

- -

- (9

6 56

2) (9

2 43

0)

Reve

nues

from

/ Pa

ymen

ts to

SA

Gove

rnm

ent

Reve

nues

from

SA

Gove

rnm

ent

- -

- -

- -

96

064

91

985

96

064

91

985

Paym

ents

to S

A Go

vern

men

t -

- -

- -

- (1

109

) -

(1 1

09)

-

Net r

esul

t (1

1 98

9) (1

2 70

6) (2

3 39

3) (1

5 54

6) (1

908

) -

94

955

91

985

(1 6

07)

(445

)

FOR

THE

YEAR

END

ED 3

0 JU

NE 2

014


DISA

GGRE

GATE

D DI

SCLO

SURE

S - E

XPEN

SES

AND

INCO

ME

CONT

INUE

D


ACTI

VITY

1:

Publ

ic S

ecto

r Ren

ewal

ACTI

VITY

2:

Econ

omic

Dev

elop

men

tAC

TIVI

TY 3

:M

iner

al R

esou

rces

an

d En

ergy

ACTI

VITY

4:

Oppo

rtun

ities

for

Smal

l Bus

ines

s

ACTI

VITY

5:

Wat

er In

dust

ry

Tech

nica

l and

Saf

ety

Regu

latio

n

(ref

er N

ote

4)20

14$’

000

2013

$’

000

2014

$’00

020

13

$’00

020

14$’

000

2013

$’

000

2014

$’00

020

13

$’00

020

14$’

000

2013

$’

000

Asse

ts

Cash

- -

- -

8 3

75

8 0

03

- -

- -

Rece

ivab

les

- -

3

- 3

624

3

234

-

- -

- Fi

nanc

ial a

ssis

tanc

e de

btor

s -

- -

- -

- 1

6 -

- -

Non-

curr

ent a

sset

s cl

assi

fied

as h

eld

for s

ale

- -

- -

7 5

00

- -

- -

- Pr

oper

ty, p

lant

and

equ

ipm

ent

- -

- -

19

021

26

242

- -

- -

Tota

l ass

ets

- -

3

- 3

8 52

0 3

7 47

9 1

6 -

- -

Liab

ilitie

s

Paya

bles

- 1

19

- -

8 3

80

8 0

53

39

66

44

117

Em

ploy

ee b

enefi

ts -

- -

- 1

1 50

0 1

1 39

1 2

32

198

4

27

702

Pr

ovis

ions

- -

- -

- -

- -

- -

Othe

r lia

bilit

ies

- -

- -

6 8

43

7 8

90

- -

- -

Tota

l lia

bilit

ies

- 1

19

- -

26

723

27

334

271

2

64

471

8

19

AS A

T 30

JUNE

201

4


DISA

GGRE

GATE

D DI

SCLO

SURE

S - A

SSET

S AN

D LI

ABIL

ITIE

S

P 78

ACTI

VITY

6:

Glob

ally

Inte

grat

ing

the

SA E

cono

my

ACTI

VITY

7:

Man

ufac

turin

g an

d In

nova

tion

ACTI

VITY

8:

Auto

mot

ive

Tran

sfor

mat

ion

Gene

ral /

No

t Att

ribut

able

ACTI

VITY

TOT

AL

(ref

er N

ote

4)20

14$’

000

2013

$’

000

2014

$’00

020

13

$’00

020

14$’

000

2013

$’

000

2014

$’00

020

13

$’00

020

14$’

000

2013

$’

000

Asse

ts

Cash

and

cas

h eq

uiva

lent

s 2

81

214

-

- -

- 1

3 83

7 1

3 16

2 2

2 49

3 2

1 37

9 Re

ceiv

able

s 6

0 9

5 1

20

1 2

63

- -

1 1

59

1 9

96

4 9

66

6 5

88

Fina

ncia

l ass

ista

nce

debt

ors

- -

- 9

70

- -

- -

16

970

No

n-cu

rren

t ass

ets

clas

sifie

d as

hel

d fo

r sal

e -

- -

- -

- -

- 7

500

-

Prop

erty

, pla

nt a

nd e

quip

men

t 2

26

300

-

- -

- 5

841

4

119

2

5 08

8 3

0 66

1

Tota

l ass

ets

567

6

09

120

2

233

-

- 2

0 83

7 1

9 27

7 6

0 06

3 5

9 59

8

Liab

ilitie

s

Paya

bles

527

4

61

2 1

69

1 2

06

64

- 1

964

2

034

1

3 18

7 1

2 05

6 Em

ploy

ee b

enefi

ts 2

146

1

732

2

028

1

442

-

- 4

2

60

16

337

15

725

Prov

isio

ns -

- -

- -

- 6

00

614

6

00

614

Ot

her l

iabi

litie

s -

- 6

0 6

2 -

- 1

325

1

639

8

228

9

591

Tota

l lia

bilit

ies

2 6

73

2 1

93

4 2

57

2 7

10

64

- 3

893

4

547

3

8 35

2 3

7 98

6

AS A

T 30

JUNE

201

4

Asse

ts a

nd li

abili

ties

have

onl

y be

en a

lloca

ted

to a

ctiv

ities

whe

re th

is c

an b

e do

ne re

liabl

y.

Prop

erty

, pla

nt a

nd e

quip

men

t ass

ets

are

only

allo

cate

d w

here

ther

e is

exc

lusi

ve c

usto

dy, c

ontr

ol a

nd re

gula

tion

of th

e us

e of

the

asse

t, by

a s

peci

fic a

ctiv

ity.

Whe

re th

is c

riter

ia is

not

met

then

the

asse

t val

ue is

cla

ssifi

ed a

s ge

nera

l / n

ot a

ttrib

utab

le.


DISA

GGRE

GATE

D DI

SCLO

SURE

S - A

SSET

S AN

D LI

ABIL

ITIE

S CO

NTIN

UED


STATEMENT OF ADMINISTERED FINANCIAL POSITION

2014 $’000

2013 $’000

Expenses

Employee benefit expenses 319 282 Grants and subsidies 1 422 973 Payment of royalties to the Consolidated Account 291 331 188 737 Other expenses 10 195 4 215

Total expenses 303 267 194 207

Income

Revenues from SA Government 1 713 1 169 Royalties 291 331 188 737 Other revenues 10 104 3 474

Total income 303 148 193 380

Net result (119) (827)

Total comprehensive result (119) (827)

AS AT 30 JUNE 2014

2014 $’000

2013 $’000

Current assets

Cash 17 768 42 Receivables 1 492 23 217

Total current assets 19 260 23 259

Total assets 19 260 23 259

Current liabilities

Payables 19 092 22 972

Total current liabilities 19 092 22 972

Total liabilities 19 092 22 972

Net assets 168 287

Equity

Retained earnings 168 287

Total equity 168 287


STATEMENT OF ADMINISTERED COMPREHENSIVE INCOME


P 80



STATEMENT OF ADMINISTERED CHANGES IN EQUITY

Total $’000

Balance at 30 June 2012 1 116 Prior period adjustment (2)

Restated balance at 30 June 2012 1 114

Net result for 2012-13 (827)

Total comprehensive result for 2012-13 287

Net result for 2013-14 (119)

Total comprehensive result for 2013-14 (119)

Balance at 30 June 2014 168


$’000


$’000

Cash flows from operating activities Cash outflows

Employee benefit payments (319) (282)Payments for grants and subsidies (1 422) (973)Payment of royalties to Consolidated Account (295 756) (189 073)Other payments (9 584) (4 258)

Total cash outflows (307 081) (194 586)

Cash inflows

Revenue from SA Government 1 713 1 169 Other receipts 10 352 3 290 Royalties receipts 312 274 189 071 Receipts on restructure 468 -

Total cash inflows 324 807 193 530

Net cash (used in) / provided by operating activities 17 726 (1 056)

Net increase / (decrease) in cash held 17 726 (1 056)Cash as at 1 July 42 1 098

Cash as at 30 June 17 768 42


STATEMENT OF ADMINISTERED CASH FLOWS


Smal

l Bu

sine

ss

Com

mis

sion

er

Min

iste

r's

Sala

ryRo

yalti

esM

inta

bie

Adm

inis

trat

ion

Nativ

e Ti

tle

Agre

emen

tTO

TAL

2014

$’00

020

13$’

000

2014

$’00

020

13$’

000

2014

$’00

020

13$’

000

2014

$’00

020

13$’

000

2014

$’00

020

13$’

000

2014

$’00

020

13$’

000

Expe

nses

Empl

oyee

ben

efit e

xpen

ses

- -

319

2

82

- -

- -

- -

319

2

82

Gran

ts a

nd s

ubsi

dies

1 4

22

973

-

- -

- -

- -

- 1

422

9

73

Paym

ent o

f roy

altie

s to

the

Cons

olid

ated

Acc

ount

- -

- -

291

331

1

88 7

37

- -

- -

291

331

1

88 7

37

Othe

r exp

ense

s -

- -

- 7

3 -

35

8

10

087

4 2

07

10

195

4 2

15

Tota

l Exp

ense

s 1

422

9

73

319

2

82

291

404

1

88 7

37

35

8

10

087

4 2

07

303

267

1

94 2

07

Inco

me

Reve

nues

from

SA

Gove

rnm

ent

1 4

22

973

2

91

196

-

- -

- -

- 1

713

1

169

Ro

yalti

es -

- -

- 2

91 3

31

188

737

-

- -

- 2

91 3

31

188

737

Ot

her r

ecei

pts

- -

- -

- -

17

8

10

087

3 4

66

10

104

3 4

74

Tota

l Inc

ome

1 4

22

973

2

91

196

2

91 3

31

188

737

1

7 8

1

0 08

7 3

466

3

03 1

48

193

380

Net R

esul

t -

- (2

8) (8

6) (7

3) -

(18)

- -

(741

) (1

19)

(827

)

FOR

THE

PERI

OD E

NDED

30

JUNE

201

4

SCHE

DULE

OF

EXPE

NSES

AND

INCO

ME

ATTR

IBUT

ABLE

TO

ADM

INIS

TERE

D AC

TIVI

TIES


P 82

FOR THE PERIOD ENDED 30 JUNE 2014

SMALL BUSINESS COMMISSIONER

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

ROYALTIES

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

NATIVE TITLE AGREEMENT

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

SCHEDULE OF EXPENSES AND INCOME ATTRIBUTABLE TO ADMINISTERED ACTIVITIES CONTINUED



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

EXPENSE NOTES

Employee benefit expenses Note 5 Remuneration of employees and TVSP disclosure Note 5 Supplies and services Note 6 Consultancy disclosure Note 6 Depreciation and amortisation expenses Note 7 Grants and subsidies Note 8 Other expenses Note 9 Net loss from disposal of non-current assets Note 17 Auditor's remuneration Note 10 Overseas Representative Offices Note 11 Payments to SA Government Note 19

INCOME NOTES

Revenues from fees and charges Note 12 Technical regulation Note 13 Sale of electricity Note 14 Commonwealth revenues Note 15 Interest revenues Note 16 Other revenues Note 18 Revenues from SA Government Note 19

ASSET NOTES

Cash Note 20 Receivables Note 21 Financial assistance debtors Note 22 Non-current assets classified as held for sale Note 23 Property, plant and equipment Note 24 Fair value measurement Note 25

LIABILITY NOTES

Payables Note 26 Employee benefits Note 27 Provisions Note 28 Other liabilities Note 29

OTHER NOTES

Unrecognised contractual commitments Note 30 Contingent assets and liabilities Note 31 Transferred functions Note 32 Remuneration of board and committee members Note 33 Cash flow reconciliation Note 34 Trust funds Note 35 Events after the reporting period Note 36 Transactions with SA Government Note 37 Financial instruments / financial risk management Note 38


NOTE INDEX

P 84

OBJECTIVES OF THE DEPARTMENT FOR MANUFACTURING, INNOVATION, TRADE, RESOURCES AND ENERGY

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1

NOTE 2

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

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

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

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

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

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

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

Its strategic objectives are to:

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

- attract and facilitate targeted business and infrastructure investment;

- enable accessible and sustainable energy and resources;

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

- deliver and advocate trusted regulation and targeted programs.

A) STATEMENT OF COMPLIANCE

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

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

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

Australian Accounting Standards and interpretations that have recently been issued or amended but are not yet effective have not been adopted by the department for the reporting period ending 30 June 2014. Refer to Note 3.

B) BASIS OF PREPARATION

The preparation of the financial statements requires:

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

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


NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED

NOTE 2

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

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

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

c. employee targeted voluntary separation package information;

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

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

The department's Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets that were valued in accordance with the valuation policy applicable.

The Statement of Cash Flows has been prepared on a cash basis.

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

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2014 and the comparative information presented.

C) REPORTING ENTITY

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

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

D) TRANSFERRED FUNCTIONS

The Public Sector (Reorganisation of Public Sector Operations) Notice 2013 (dated 5 September 2013) declared that Invest in SA was transferred from DMITRE to the Department of the Premier and Cabinet (DPC) effective from 5 September 2013 (refer note 32).

The Public Sector (Reorganisation of Public Sector Operations) Notice 2013 (dated 21 November 2013) declared that Population and Migration Policy was transferred from DPC to DMITRE effective from 1 December 2013 (refer note 32).

E) COMPARATIVE INFORMATION

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

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

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

F) ROUNDING

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

G) TAXATION

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


P 86


NOTE 2

Income, expenses and assets are recognised net of the amount of GST except:

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

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

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

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

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

H) EVENTS AFTER THE REPORTING PERIOD

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

Note disclosure is made about events between 30 June and the date the financial statements are authorised for issue where the events relate to a condition which arose after 30 June and which may have a material impact on the results of subsequent years. Refer to Note 36.

I) INCOME

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

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

The following are specific recognition criteria:

Revenues from SA Government

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

Fees and Charges

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

Commonwealth Revenues

Commonwealth grants are recognised as revenues when the department obtains control over the funding. Control over grants is normally obtained upon receipt.

Recoveries

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

Land Sales

On 10 May 2004, Cabinet approved the transfer of land at Edinburgh Parks (Stages 0, 1 and 3) to the Urban Renewal Authority, effective from 1 July 2004. In accordance with the contractual agreement, the department is entitled to receive 25 percent of the net profit arising from the sale of Stage 0 and the net proceeds of Stages 1 and 3 sales. All income is recognised upon sale of land (refer note 18).




NOTE 2

Administered - royalty receipts

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

Net gain on non-current assets

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

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

J) EXPENSES

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

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

The following are specific recognition criteria:

Employee benefit expenses

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

Superannuation

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

Depreciation and amortisation

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

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

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

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

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

Land and non-current assets held for sale are not depreciated.

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

Class of Asset Useful Life (Years)

Buildings 25-80

Leasehold Improvements Life of lease

Plant and Equipment 2-60

Intangibles/Software 3-10


P 88


NOTE 2

Grants and subsidies

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

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

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

Payments to SA Government

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

K) CURRENT AND NON-CURRENT CLASSIFICATION

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

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

L) ASSETS

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

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

Cash and cash equivalents

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

For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

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

Receivables

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

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

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

Financial Assistance Debtors

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




NOTE 2

Non-Current Assets (or disposal groups) held for sale

Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of their carrying amount and fair value less costs to sell if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. The condition is regarded as met only when the sale is highly probable and the asset's sale is expected to be completed one year from the date of classification.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the Statement of Financial Position. The liabilities of a disposal group classified as held for sale are also presented separately from other liabilities in the Statement of Financial Position.

Non-Current Assets

Acquisition and Recognition

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

Where assets are acquired at no value, or minimal value, they are recorded at fair value in the Statement of Financial Position.

However, if the assets are acquired at no or nominal value as part of a restructure of administrative arrangements then the assets are recognised at book value i.e. the amount recorded by the transferor public authority immediately prior to the restructure.

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

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

Revaluation of Non-Current Assets

All non-current tangible assets are valued at fair value and revaluation of non-current assets or group of assets is only performed when its fair value at the time of acquisition is greater than $1 million and estimated useful life is greater than three years.

Every five years, the department revalues its land, buildings, leasehold improvements, works of art, core library and energy distribution and generation assets via an independent Certified Practicing Valuer or internal estimates based on indices or recent transactions. A valuation appraisal by an independent Certified Practicing Valuer is performed at least every 6 years.

If at any time, management considers that the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place.

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

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

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

Impairment

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

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


P 90


NOTE 2

Intangible assets

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

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

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

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

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

Fair Value Measurement

AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, in the principal or most advantageous market, at the measurement date.

The department classifies fair value measurement using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements, based on the data and assumptions used in the most recent revaluation.

- Level 1 - traded in active markets and is based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at measurement date.

- Level 2 - not traded in an active market and are derived from inputs (inputs other than quoted prices included within level 1) that are observable for the asset, either directly or indirectly.

- Level 3 - not traded in an active market and are derived from unobservable inputs.

Non-financial assets

In determining fair value, the department has taken into account the characteristic of the asset (eg condition and location of the asset and any restrictions on the sale or use of the asset); and the asset's highest and best use (that is physically possible, legally permissible, financially feasible).

The department's current use is the highest and best use of the asset unless other factors suggest an alternative use is feasible. As the department did not identify any factors to suggest an alternative use, fair value measure was based on current use.

The carrying amount of non-financial assets with a 'fair value at the time of acquisition that was less than $1 million or had an estimated useful life that was less than three years' are deemed to approximate fair value.

Refer to Note 23, 24 and 25 for disclosure regarding fair value measurement techniques and inputs used to develop fair value measurements for non-financial assets.

M) LIABILITIES

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

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

Payables

Payables include creditors, accrued expenses, GST payable, employment on-costs and the paid parental leave scheme payable.

Creditors represent the amounts owing for goods and services received prior to the end of the reporting period that are unpaid at the end of the reporting period. Creditors include all unpaid invoices received relating to the normal operations of the department.

Accrued expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting period and where an invoice has not been received.




NOTE 2

The paid parental leave scheme payable represents amounts which the department has received from the Commonwealth Government to forward onto eligible employees via the department's standard payroll processes. That is, the department is acting as a conduit through which the payment to eligible employees is made on behalf of the Family Assistance Office.

All payables are measured at their nominal amount, are unsecured and are normally settled within 30 days from the date of the invoice or date the invoice is first received.

Employee benefits on-costs include payroll tax, workers compensation and superannuation contributions in respect to outstanding liabilities for salaries and wages, long service leave, annual leave and skills and experience retention leave.

The department makes contributions to several State Government and externally managed superannuation schemes. These contributions are treated as an expense when they occur. There is no liability for payments to beneficiaries as they have been assumed by the respective superannuation schemes. The only liability outstanding at reporting date relates to any contributions due but not yet paid to the South Australian Superannuation Board.

Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement. The department has assessed whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.

The department has entered into operating leases in relation to office accommodation and motor vehicles for its administrative and operating activities.

Operating lease payments are recognised as an expense in the Statement of Comprehensive Income on a straight-line basis over the lease term. The straight-line basis is representative of the pattern of benefits derived from the leased assets.

Financial guarantees

At the time a financial guarantee contract is issued, it is recognised as a contingent liability as it is not expected that the guarantee will be called upon. In determining the value of the indemnities provided by the department, consideration has been given to the following:

- For those properties indemnified by the Minister for Manufacturing and Innovation and subject to lease where the historical cost or borrowing from South Australian Financing Authority (SAFA) remains, the value has been calculated using historical cost less the valuation of the property as at 30 June 2014.

- For those properties that are subject to a Deferred Purchase Agreement where the client is paying principal and interest repayments, the value has been calculated using the value of the loan outstanding as at 30 June 2014 less the most recent property or rating valuation.

The department has reviewed its financial guarantees and determined that there is no material liability to be recognised for financial guarantee contracts as at 30 June 2014 (there was no material liability recognised for financial guarantee contracts in 2013).

Whilst no liability has been recognised for financial guarantee contracts, further note disclosures relating to financial guarantees are contained at Note 31 Contingent assets and liabilities.

Employee Benefits

These benefits accrue for employees as a result of services provided up to the reporting date that remain unpaid. Long-term employee benefits are measured at present value and short-term employee benefits are measured at their nominal amounts.

Salaries and wages, annual leave, skills and experience retention leave and sick leave

The liability for salaries and wages is measured as the amount unpaid at the reporting date at remuneration rates current at reporting date.

The annual leave liability and the skills and experience retention leave liability is expected to be payable within twelve months and is measured at the undiscounted amount expected to be paid.

No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is estimated to be less than the annual entitlement for sick leave.


P 92


NOTE 2


Long service leave

The liability for long service leave is measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.

The estimated liability for long service leave is based on actuarial assumptions over expected future salary and wage levels, experience of employee departures and periods of service. These assumptions are based on employee data over SA government entities.

Expected future payments are discounted using market yields at the end of the reporting period on government bonds with durations that match, as closely as possible, the estimated future cash outflows.

The unconditional portion of the long service leave provision is classified as current as the department does not have an unconditional right to defer settlement of the liability for at least twelve months after reporting date. The unconditional portion of long service leave relates to an unconditional legal entitlement to payment arising after ten years of service.

Provisions

Provisions are recognised when the department has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the department expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of Comprehensive Income net of any reimbursement.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the reporting date. If the effect of the time value of money is material, provisions are discounted for the time value of money and the risks specific to the liability.

The workers compensation provision is an actuarial estimate of the outstanding liability as at 30 June 2014 provided by a consulting actuary engaged through the Public Sector Workforce Relations Division of the department of the Premier and Cabinet. The provision is for the estimated cost of ongoing payments to employees as required under current legislation.

The department is responsible for the payment of workers compensation claims.

N) UNRECOGNISED CONTRACTUAL COMMITMENTS AND CONTINGENT ASSETS AND LIABILITIES

Commitments include operating, capital and outsourcing arrangements arising from contractual or statutory sources and are disclosed at their nominal value.

Contingent assets and contingent liabilities are not recognised in the Statement of Financial Position, but are disclosed by way of a note and, if quantifiable, are measured at nominal value.

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

O) PRIOR PERIOD ADJUSTMENTS

Prior Period Adjustments have been processed that have resulted in a $607 000 increase in equity.

Increase of $173 000 has been made to correct an amount incorrectly reflected as an accrued expense as at 30 June 2012. The amount related to anticipated expenditure for a legal settlement and should have been reflected as an contingent liability instead of expenditure. The matter has been ruled by the Supreme Court in the favour of the department so no liability now exists.

Increase of $132 000 has been made to correct provision for doubtful debts relating to 2011-12.

Increase of $5000 due to loans not reflected as repaid in 2012-13 and increase of $2000 relating to a 2012-13 accrued expense correction.

Decrease of $51 000 was made to clear out a residual balance in Payables - Creditors and accrued expenses from the department of Planning, Transport and Infrastructure associated with 2011-12 machinery of government changes.

Increase of $346 000 has been made to correct payroll tax on costs for long service leave and retention leave relating to 2012-13.


NEW AND REVISED ACCOUNTING STANDARDS AND POLICIESNOTE 3

The department did not voluntarily change any of its accounting policies during 2013-14.

In accordance with the new AASB 13 Fair Value Measurement, which became effective for the first time in 2013-14, the department has:

- reviewed its fair value valuation techniques (both internal estimates and independent valuation appraisal) for non-financial assets to ensure they are consistent with the standard. Previously, the department has used the cost approach or the market approach to determine fair value. The department will continue to measure its non-financial assets using either the cost or market approach. The application of AASB 13 has not had a material impact on the fair value measurements; and

- included additional disclosures where required to assist users in assessing the valuation techniques and inputs used to ascertain fair value measurements used for asset and liability measurements.

Fair value hierarchy and other information is provided in Notes 23, 24 and 25.

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective, have not been adopted by the department for the period ending 30 June 2014.

ACTIVITIES OF THE DEPARTMENT NOTE 4

The department has identified eight broad activities that reflect the nature of the services delivered to the South Australian community. The activities related to 'Public Sector Renewal' have been reflected as part of the department of the Premier and Cabinet from the 1 July 2013 but this has not been treated as transferred functions. The activities undertaken under 'Economic Development' were transferred out as part of the machinery of government changes, effective 5 September 2013. The activities and their objectives of the department are:

Activity 1:

Public Sector Renewal - this activity will lead a values-based cultural change program in partnership with agencies and employees across the public sector. All participants collaborate to identify and embed values that are critical to better service delivery in the twenty-first century. This activity was transferred to the Department of the Premier and Cabinet.

Activity 2:

Economic Development - this activity supports the development and implementation of the state's economic strategy. This activity was transferred to the Department of the Premier and Cabinet.

Activity 3:

Mineral Resources and Energy - this activity supports the vision of the mineral resources and energy development program to continue South Australia's reputation as a leading mineral investment destination. It includes managing the state's mineral and energy resources, delivering the Plan for Accelerating Exploration (PACE 2020) programs, facilitating the South Australian and Commonwealth Governments' interaction with BHP Billiton for the approval of the Olympic Dam expansion, providing policy advice and coordination of energy market reforms and enforcement of energy related technical and safety regulation.

Activity 4:

Opportunities for Small Business - this activity supports small businesses to establish, grow and be sustainable, complemented by the role of the Small Business Commissioner.

Activity 5:

Water Industry Technical and Safety Regulation - this activity supports the enforcement, compliance and protection of technical and safety regulation of plumbing and equipment.

Activity 6:

Globally Integrating the SA Economy - this activity supports sustainable economic growth by building on South Australia’s competitive advantages. It includes facilitating investment, account management of key businesses, case management of major projects across the state, trade and population and migration.


P 94


ACTIVITIES OF THE DEPARTMENT CONTINUED

NOTE 4

Activity 7:

Manufacturing and Innovation - this activity will assist the development and improve the efficiency and international competitiveness of South Australian manufacturers, by driving and encouraging research and development, investment in innovation and capability development.

Activity 8:

Automotive Transformation - this activity will support companies operating within the supply chain to successfully diversify and secure alternate revenue streams to drive sustainable growth, long-term employment and potential for export revenues.

EMPLOYEE BENEFITS EXPENSESNOTE 5

Note No.

2014 $’000

2013 $’000

Salaries and wages 42 112 39 283 TVSPs (refer below) 2 958 365 Long service leave 1 951 1 200 Annual leave 3 668 3 675 Skills and experience retention leave 188 221 Employment on-costs - superannuation 4 782 4 466 Employment on-costs - other 2 655 2 433 Workers compensation 122 304 Board fees 33 244 316

Total employee benefits expenses 58 680 52 263

Targeted voluntary separation packages (TVSPs) and early terminations

2014 $’000

2013 $’000

Amount paid during the reporting period to these employees:

TVSPs 2 958 365 Early terminations 501 - Annual leave and long service leave paid to those employees 1 181 130 Employment on-costs (payroll tax and Shared Services SA processing fees) 123 54 Redeployment training support * - 1

4 763 550

Recovery from the Department of Treasury and Finance (3 636) (1 007)

Net cost to department 1 127 (457)

The number of employees who received a TVSP or early termination payment during 2013-14 was 28 (2).

The recovery from the Department of Treasury and Finance ($3.636 million) is reflected in the financial statements as Revenues from SA Government. This includes contingency appropriation of $2.618 million. The balance of $1.018 million is attributable to reimbursement of leave payments and payroll tax from the Department of Treasury and Finance and is reflected in the movement in Deposits with the Treasurer - Accrual Appropriation (refer note 20).

* The recovery from the Department of Treasury and Finance includes nil ($1 000) for redeployment training support, included in staff related expenses in Supplies and services (refer note 6).


2014 Number

Total Employees

2013 Number

Total Employees

$138 000 - $141 499* n/a 2 $141 500 - $151 499 12 9 $151 500 - $161 499 6 7 $161 500 - $171 499 3 2 $171 500 - $181 499 4 8 $181 500 - $191 499 8 3 $191 500 - $201 499 7 3 $201 500 - $211 499 3 4 $211 500 - $221 499 1 - $221 500 - $231 499 1 2 $241 500 - $251 499 - 2 $251 500 - $261 499 1 - $261 500 - $271 499 1 - $281 500 - $291 499 1 1 $291 500 - $301 499 1 - $301 500 - $311 499 2 2 $311 500 - $321 499 - 1 $321 500 - $331 499 2 1 $331 500 - $341 499 - 1 $341 500 - $351 499 1 - $381 500 - $391 499 1 1 $421 500 - $431 499 - 1 $451 500 - $461 499 2 - $461 500 - $471 499 1 -

Total number of employees 58 50

* This band has been included for the purposes of reporting comparative figures based on the executive base level remuneration rate for 2013-14.

The table includes all employees who received remuneration equal to or greater than the base executive remuneration level during the year. Remuneration of employees reflects all costs of employment including salaries and wages, TVSPs / early terminations, superannuation contributions, fringe benefits tax and any other salary sacrifice benefits. The total remuneration received by these employees for the year was $12.265 million ($10.030 million).

REMUNERATION OF EMPLOYEES

The number of employees whose remuneration received or receivable falls within the following bands:


P 96


SUPPLIES AND SERVICESNOTE 6

Note No.

2014 $’000

2013 $’000

Accommodation and service costs 6 036 6 132 Accounting and audit fees 10 314 431 Communications and information technology 4 726 4 965 Contractors 7 224 8 288 Consultancies (refer below) 5 864 4 577 Energy supply fuel and lubricants 7 851 7 539 Lease incentive amortisation 29 (240) (240)Marketing 1 300 2 290 Overseas trade representation (1) 360 140 RAES (remote areas energy supplies) Aboriginal Communities infrastructure 3 997 3 257 Shared service fees - other (2) 2 443 2 687 Staff related expenses 1 575 1 682 Travel and related expenses 3 290 3 501 Office administration expenses 6 099 5 924

Total supplies and services 50 839 51 173

The total supplies and services amount disclosed includes GST amounts not recoverable from the ATO due to the department not holding a tax invoice or payments related to third party arrangements. (1) Represents payments made to trade organisations relating to activities promoting South Australia. (2) Represents payments to the Department of Planning, Transport and Infrastructure, Department of Primary Industries and

Regions SA and the Department for the Premier and Cabinet for the provision of corporate support and project management services.

The number and dollar amount of consultancies paid/payable (included in supplies and services expense) that fell within the following bands:

Number 2014 $’000

Number 2013 $’000

Below $10 000 27 157 17 67 $10 000 to $50 000 35 899 35 800 Above $50 000 37 4 808 18 3 710

Total paid/payable to the consultants engaged 99 5 864 70 4 577



DEPRECIATION AND AMORTISATION EXPENSES

GRANTS AND SUBSIDIES

NOTE 7

NOTE 8

2014 $’000

2013 $’000

Class of assistance: Industry development 12 162 8 744 Energy 6 048 6 723 Minerals and petroleum 6 042 4 973 Renewables 190 1 049 Other 404 306

Total grants and subsidies 24 846 21 795

2014 $’000

2013 $’000

Depreciation

Plant and equipment 929 913 Leasehold improvements 853 885

Total depreciation 1 782 1 798

Amortisation

Intangible / Software 277 492

Total amortisation 277 492

Total depreciation and amortisation 2 059 2 290

OTHER EXPENSESNOTE 9

2014 $’000

2013 $’000

Bad and doubtful debts 1 232 8

Asset write-down 110 -

Total other expenses 1 342 8

AUDITOR’S REMUNERATIONNOTE 10

2014 $’000

2013 $’000

Audit fees paid/payable to the Auditor-General's Department 172 143

Total audit fees 172 143

No other services were provided by the Auditor-General's Department.

Auditor's remuneration costs are recognised in the Statement of Comprehensive Income and included in the balance of 'Accounting and audit fees' (refer to note 6).

P 98


OVERSEAS REPRESENTATIVE OFFICESNOTE 11

China$’000

India$’000

2014 Total

$’000

2013 Total

$’000

Operating expenses 489 3 492 1 249 Operating revenues 30 - 30 223 Funds advanced to overseas offices towards operating expenses 437 - 437 1 253

The following table provides a summary of the financial transactions for the reporting period for overseas offices, where the department funds their operations. The transactions relating to operating expenses and operating revenues have been included in the financial statements.

The costs relating to overseas representation provided through Austrade are not included in the table below. These costs are shown in note 6 (refer Overseas trade representation).

Singapore, Dubai and India offices were closed in 2012-13. Residual expenses for India office relates to post-closure contractor and audit fees.

Shanghai office in China was officially closed on 30 June 2013 and post-closure activities have been finalised and funds repatriated to the department in July 2014.

2014 $’000

2013 $’000

Mining and petroleum application fees, rentals and licences 21 585 17 421

Total revenues from fees and charges 21 585 17 421

REVENUES FROM FEES AND CHARGESNOTE 12

2014 $’000

2013 $’000

Technical regulation - gas and electricity technical regulation and electricity emergency management

6 384 6 277

Total technical regulation 6 384 6 277

TECHNICAL REGULATIONNOTE 13

Licence fees on industry bodies levied by the Essential Services Commission of SA (ESCOSA) and received via the Department of Treasury and Finance.



2014 $’000

2013 $’000

Grants

Tradestart 321 338 Supplier Access to Major Projects Program - Australian Water Access to USA - California 105 105 Supplier Access to Major Projects Program - Olympic Dam Expansion - 6 Supplier Access to Major Projects Program - Domain Specialist - Water 204 263 Municipal and Essential Services - Murputja and Watarru Power Station Fuel Contribution 181 177 National Energy Efficiency Buildings 424 - Street Lighting Energy Efficiency Program 48 - Anangu Pitjantjatjara Yankunytjatjara (APY) Lands Regional Procurement Strategy 72 - High Performance Workplaces 70 - Cellulosic Value Chain Technology Roadmap - 227

Total Commonwealth revenues 1 425 1 116

COMMONWEALTH REVENUESNOTE 15

2014 $’000

2013 $’000

Sale of electricity - remote areas 4 630 3 860

Total sale of electricity 4 630 3 860

SALE OF ELECTRICITYNOTE 14

Contributions which have conditions of expenditure still to be met as at reporting date were $246 000 ($140 000). These contributions relate to the Supplier Access to Major Projects Program - Australian Water Access to USA - California, National Energy Efficiency Buildings, Street Lighting Energy Efficiency Program and Anangu Pitjantjatjanara Yankunyitjatjara (APY) Lands Regional Procurement Strategy Projects.

Included in revenue is Commonwealth funding for Tradestart. The terms of this grant are that the department must promote exporting, international business and the Commonwealth Government's trade agenda for a period of approximately three and a half years ending 31 August 2014 (initially 30 June 2014). As the grant is a non-recourse grant it has been recognised upon receipt.

Conditions attached to the contributions relating to the Supplier Access to Major Projects - Australian Water Access to USA - California and Supplier Access to Major Projects - Olympic Dam Expansion projects state that funds are to be used to facilitate South Australian industry participation where it has full, fair and reasonable opportunity to tender for the supply of goods and services associated with this project. The Olympic Dam Expansion project did not proceed in 2012-13.

The terms of the Municipal and Essential Services - Murputja and Watarru Power Station Fuel Contribution state that the department is to purchase fuel for power stations at Murputja and Watarru on the APY Lands and offset this cost with the diesel fuel rebate and charges to consumers for power.

Conditions attached to the National Energy Efficiency Buildings are to promote best practice knowledge, capacity, compliance and enforcement systems in energy efficient design, construction and renovations for the residential and small commercial sector. The project will support and facilitate Local Government and Industry to deliver best practice energy efficiency in residential and commercial alterations, additions, renovations and targeted retrofitting.

Street Lighting Energy Efficiency Program outlines a comprehensive suite of measures (the National Strategy on Energy Efficiency or NSEE) to provide a nationally consistent and coordinated approach to improving energy efficiency and thus the productivity of the Australian economy.

P 100


COMMONWEALTH REVENUES CONTINUEDNOTE 15

Anangu Pitjantjatjara Yankunytjatjara (APY) Lands Regional Procurement Strategy aims to provide support to individuals, families and communities to improve well being, capability and governance. It seeks to change the way Government works with Indigenous Australians in a number of priority communities.

The conditions attached to the High Performance Workplaces project are to measure workplace performance characteristics of Northern Adelaide based enterprises and South Australian family businesses. Specifically it will implement the High Performing Workplace Index (HPWI) survey in South Australia through predetermined strategies outlined in the memorandum of understanding.

Conditions attached to the Cellulosic Value Chain Technology Roadmap Initiative stem from the SA Government's wish to develop the potential of the forestry resources from South Australian forests, in particular the Limestone Coast region. In order to achieve this, a detailed mapping of the possible commercial ready or near commercial ready technologies and associated high value add industries to be attracted to the area has been carried out.

INTEREST REVENUESNOTE 16

2014 $’000

2013 $’000

Interest revenues 6 15

Total interest revenues 6 15

2014 $’000

2013 $’000

Plant and equipment:

Proceeds from disposal 6 125 Less net book value of assets disposed (18) (128)

Total net loss from disposal of non-current assets (12) (3)

NET LOSS FROM THE DISPOSAL OF NON-CURRENT ASSETSNOTE 17

OTHER REVENUESNOTE 18

2014 $’000

2013 $’000

Fuel tax credits 1 623 1 610 Management of Extractive Areas Rehabilitation Fund 449 284 Sponsorship revenues 21 51 Recoveries - financial assistance grants 426 323 Recoveries - intra-government transfers - grants 3 243 1 618 Recoveries - other (1) 1 424 2 527

Total other revenues 7 186 6 413

(1) Other recoveries includes recoveries from Urban Renewal Authority relating to land sales at Edinburgh Parks of $0.094 million.



REVENUES FROM / PAYMENTS TO SA GOVERNMENTNOTE 19

2014 $’000

2013 $’000

Revenues from SA Government

Appropriations from Consolidated Account pursuant to the Appropriation Act 92 031 86 228

Appropriations under other Acts (pursuant to Treasurer's contingency section 15 Public Finance and Audit Act 1987)

4 033 5 757

Total revenues from SA Government 96 064 91 985

Payments to SA Government

Return of surplus cash pursuant to cash alignment policy 1 109 -

Total payments to SA Government 1 109 -

Total revenues from Government consists of $87.056 million ($85.247 million) for operational funding and $4.975 million ($0.981 million) for capital projects. For details on the expenditure associated with the operational funding and capital funding received refer to Note 5 to 10 and 32.

The amount appropriated to the department under the annual Appropriation Act increased by $9.554 million from the original appropriation budget for 2013-14 of $82.477 million.

In addition, an advance of $4.033 million ($5.757 million) was received pursuant to Treasurer's contingency. Contingency appropriation in 2013-14 included $0.375 million for Remote Areas Energy Supplies Aboriginal Communities (RAES AC) Infrastructure, $0.550 million for Essential Services Infrastructure - Aboriginal Communities, $2.618 million for TVSP reimbursement and $0.490 million employee related approvals including enterprise bargaining supplementation.

CASHNOTE 20

2014 $’000

2013 $’000

Deposits with Treasurer – Operating Account 18 189 16 125 Deposit with the Treasurer – Accrual Appropriation 4 021 5 039 Deposits at call - overseas offices 281 214 Other 2 1

Total cash 22 493 21 379

DEPOSITS WITH TREASURER – OPERATING ACCOUNT

Includes cash securities held for mining remediation of $5.877 million ($6.018 million). The department only has claims to these funds if the licensee fails to perform its legislative requirements (refer note 29).

DEPOSIT WITH THE TREASURER – ACCRUAL APPROPRIATION

This balance relates to funds held in the Accrual Appropriation Excess Funds Account. The balance of these funds is not available for general use, i.e. funds can only be used in accordance with the Treasurer's / Under Treasurer's approval.

INTEREST RATE RISK

Cash on hand is non-interest bearing. Deposits at call and with the Treasurer earn a floating interest rate, based on daily bank deposit rates. The carrying amount of cash represents fair value.

P 102


RECEIVABLESNOTE 21

2014 $’000

2013 $’000

Current

Receivables 2 213 2 970 Less allowance for doubtful debts (103) (56)GST input tax recoverable 859 738 Prepayments 276 114 Accrued revenue 1 721 2 822

Total current receivables 4 966 6 588

Total receivables 4 966 6 588

MOVEMENT IN THE ALLOWANCE FOR DOUBTFUL DEBTS

The allowance for doubtful debts (allowance for impairment losses) is recognised when there is objective evidence (i.e. calculated on past experience and current and expected changes in client credit rating) that a receivable is impaired.

An allowance for impairment loss has been recognised in 'Other expenses' in the Statement of Comprehensive Income for specific debtors and debtors assessed on a collective basis for which such evidence exists.

2014 $’000

2013 $’000

Movements in the allowance for doubtful debts (impairment loss):

Carrying amount at the beginning of the period

(56) (161)

(Increase) / Decrease in the allowance (88) 105 Amounts recovered during the year 41 -

Carrying amount at the end of the period (103) (56)

INTEREST RATE AND CREDIT RISK

Receivables are raised for all goods and services provided for which payment has not been received. Receivables are normally settled within 30 days. Trade receivables and accrued revenues are non-interest bearing.

Other than as recognised in the allowance for doubtful debts, it is not anticipated that counterparties will fail to discharge their obligations. The carrying amount of receivables approximates net fair value due to being receivable on demand. There is no concentration of credit risk.

a. Maturity analysis of receivables - refer to table 38.3 in Note 38.

b. Categorisation of financial instruments and risk exposure information - refer to Note 38.


FINANCIAL ASSISTANCE DEBTORSNOTE 22

2014 $’000

2013 $’000

Current

Financial assistance debtors 1 225 541 Less allowance for doubtful debts (1 209) (24)

Total current financial assistance debtors 16 517

Non-current

Financial assistance debtors - 453

Total non-current financial assistance debtors - 453

Total financial assistance debtors 16 970

2014 $’000

2013 $’000

Movements in the allowance for doubtful debts (impairment loss):

Carrying amount at the beginning of the period

(24) (110)

Increase in the allowance (1 187) - Amounts recovered during the year 2 - Amounts written off - 86

Carrying amount at the end of the period (1 209) (24)



Receivables are raised for all goods and services provided for which payment has not been received. Receivables are normally settled within 30 days. Trade receivables and accrued revenues are non-interest bearing.

Other than as recognised in the allowance for doubtful debts, it is not anticipated that counterparties will fail to discharge their obligations. The carrying amount of receivables approximates net fair value due to being receivable on demand. There is no concentration of credit risk.

a. Maturity analysis of receivables - refer to table 38.3 in Note 38.


NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALENOTE 23

2014 $’000

2013 $’000

Land and buildings 7 500 -

Total non-current assets classified as held for sale 7 500 -

Land and buildings held for sale relates to the Glenside core library.

P 104


2014 $’000

2013 $’000

Plant and equipment

Plant and equipment at cost (deemed fair value) 4 306 4 290 Accumulated depreciation (3 070) (2 918)Plant and equipment at fair value 10 391 18 578 Accumulated depreciation - (9 606)

Total plant and equipment 11 627 10 344

Leasehold improvements

Building improvements at fair value 8 292 18 981 Accumulated depreciation (1) (8 831)

Total leasehold improvements 8 291 10 150

Intangibles / software

Computer software at cost (deemed fair value) 3 541 3 493 Accumulated amortisation (2 834) (2 557)

Total intangible assets 707 936

Land and improvements

Land at fair value 2 562 9 023

Total land and improvements 2 562 9 023

Works of art

Works of art at fair value 105 105

Total works of art 105 105

Capital works in progress

Works in progress at cost 1 796 103

Total capital works in progress 1 796 103

Total property, plant and equipment 25 088 30 661

PROPERTY, PLANT AND EQUIPMENTNOTE 24

VALUATION OF WORKS OF ART

The valuation of works of art was performed by Theodore Bruce, an independent valuer, as at 9 May 2013. The valuer arrived at fair value based on recent market transaction for similar items.

VALUATION OF LAND AND BUILDINGS

The valuation of land and buildings was performed by a independent Certified Practicing Valuer from Liquid Pacific Pty Ltd, as at 30 June 2014.

The valuer arrived at fair value using the market approach. The valuation was based on recent market transactions for similar land and buildings (non-specialised) in the area and includes adjustments for factors specific to the land and building being valued such as size, location and current use.

The valuer used depreciated replacement cost for specialised land and buildings, due to there not being an active market for such land and buildings. The depreciated replacement cost considered the need for ongoing provision of government services; specialised nature of the assets, including the restricted use of assets; size, condition, location and current use of the assets. The valuation was based on a combination of internal records, specialised knowledge and the acquisition/transfer costs.


PROPERTY, PLANT AND EQUIPMENT CONTINUED

RECONCILIATION OF NON-CURRENT ASSETSThe following table shows the movement of non-current assets during 2013-14

RECONCILIATION OF NON-CURRENT ASSETSThe following table shows the movement of non-current assets during 2012-13

NOTE 24

Plant & Equip$’000

Buildings / Leasehold

Improvements $’000

Intangibles/Software

$’000

Land $’000

Works of Art

$’000

Work in Progress

$’000

Total$’000

Carrying amount at the beginning of the financial year 10 344 10 150 936 9 023 105 103 30 661

Additions 313 - 48 - - 2 074 2 435 Capitalisation - 381 - - - (381) - Disposals/transfers (18) - - - - - (18)Revaluation increment/(decrement) 1 917 1 198 - (1 436) - - 1 679 Asset write-down - (110) - - - - (110)Depreciation and amortisation (929) (853) (277) - - - (2 059)Assets reclassified as to assets held for sale - (2 475) - (5 025) - - (7 500)

Carrying amount at the end of the financial year 11 627 8 291 707 2 562 105 1 796 25 088


Buildings / Leasehold

Improvements $’000

Intangibles/Software

$’000

Land and Improvements

$’000

Works of Art

$’000

Work in Progress

$’000

Total$’000

Carrying amount at the beginning of the financial year 10 737 10 905 969 9 023 100 356 32 090

Additions 575 - 24 - - 385 984 Capitalisation 43 160 435 - - (638) - Disposals/transfers (98) (30) - - - - (128)Revaluation increment - - - - 5 - 5 Depreciation and amortisation (913) (885) (492) - - - (2 290)

Carrying amount at the end of the financial year 10 344 10 150 936 9 023 105 103 30 661


FAIR VALUE MEASUREMENTNOTE 25

FAIR VALUE HIERARCHY

The fair value of non-financial assets must be estimated for recognition and measurement or for disclosure purposes. The department categorises non-financial assets measured at fair value into hierarchy based on the level of inputs used in measurement.

Fair value measurements recognised in the Statement of Financial Position are categorised into the following levels at 30 June 2014.

The department had no valuations categorised into level 1.

P 106

FAIR VALUE MEASUREMENT CONTINUEDNOTE 25


Comparative information for non-financial assets has not been provided as permitted by the transitional provisions of the new standard.

There were no transfers of assets between level 1 and 2 fair value hierarchy levels in 2014. The department's policy is to recognise transfers into and out of fair value hierarchy levels as at the end of the reporting period.

VALUATION TECHNIQUES AND INPUTS

Valuation techniques used to derive level 2 and 3 fair values are at note 23 and 24. There were no changes in valuation techniques during 2014. The following table is a reconciliation of fair value measurements using significant unobservable inputs (level 3).

Description Valuation Technique Unobservable Inputs Range (weighted average)

Buildings and leasehold improvements

Depreciated Replacement Cost

Cost per unit area (m2) $450.00 - $2,500.00 per m2 ($1,475.00 per m2)

Plant and Equipment - Core Library


Cost per unit area (m2) $18.50 - $450.00 per m2 ($234.25 per m2)

Plant and Equipment - Remote Area Energy Supply


Cost per unit area (km) $0.15 - $659.49 per km ($329.82 per km)

Works of Art Market Approach Recent market transactions for similar items

Quantitative information about fair value measurement using significant unobservable inputs (level 3)

2014 $’000

Level 2 $'000

Level 3 $'000

Recurring fair value measurements

Land (note 24) 2 562 2 562 - Buildings and leasehold improvements (note 24) 8 291 667 7 624 Plant and equipment (note 24) 11 627 - 11 627 Works of art (note 24) 105 - 105

Total recurring fair value measurements 22 585 3 229 19 356

Non-recurring fair value measurements

Land and buildings held for sale (Note 23)* 7 500 7 500 -

Total non-recurring fair value measurements 7 500 7 500 -

Total fair value measurements 30 085 10 729 19 356

* Land and buildings held for sale are recorded at market value based on the sales contract.

Fair value measurement at 30 June 2014



2014 $’000

2013 $’000

Current

Creditors and accrued expenses 11 562 10 455 Employee on-costs 1 030 1 043

Total current payables 12 592 11 498

Non-current

Employee on-costs 595 558

Total non-current payables 595 558

Total payables 13 187 12 056

PAYABLESNOTE 26

As a result of an actuarial assessment performed by the Department of Treasury and Finance, the percentage of the proportion of long service leave taken as leave has remained at the 2013 rate of 40% and the average factor for the calculation of employer superannuation cost on-cost has changed from the 2013 rate of 10.2% to 10.3%. These rates are used in the employment on-cost calculation. The change results in an increase of $0.228 million on the long service leave liability for the 2013-14 reporting period. The impact on 2015 and 2016 can not be reliably estimated.


Creditors and accruals are raised for all amounts due but unpaid. Sundry creditors are normally settled within 30 days. Employment on-costs are settled when the respective employee benefit that they relate to is discharged. All payables are non-interest bearing. The carrying amount of payables represents fair value due to the amounts being payable on demand.

Reconciliation of fair value measurements - Level 3

Buildings/ Leasehold

Improvements$’000


Works of Art$’000

Total$’000

Carrying amount at the beginning of the financial year 10 150 10 344 105 20 599

Acquisitions - 313 - 313 Capitalised subsequent expenditure 381 - - 381 Classified as held for sale and/or disposals (2 475) - - (2 475)Disposals - (18) - (18)Asset write-down (110) - - (110)

7 946 10 639 105 18 690

Gains/(losses) for the period recognised in net result

Depreciation (834) (929) - (1 763)

(834) (929) - (1 763)

Gains/(losses) for the period recognised in other comprehensive income

Revaluation increment/decrement 512 1 917 - 2 429

512 1 917 - 2 429

Carrying amount at the end of the financial year 7 624 11 627 105 19 356

P 108


a. Maturity analysis of payables - refer to table 38.3 in Note 38.


PAYABLES CONTINUEDNOTE 26

AASB 119 contains the calculation methodology for the long service leave liability. This year an actuarial assessment performed by the Department of Treasury and Finance was used to calculate the liability rather than using a short hand measurement technique for the calculation of the liability.

AASB 119 requires the use of the yield on long-term Commonwealth Government bonds as the discount rate in the measurement of long service leave liability. The yield on long-term Commonwealth Government bonds has decreased from 2013 (3.75%) to 2014 (3.50%). The decrease in the bond yield, which is used as the rate to discount future long service leave cash flows, results in an increase in the reported long service leave liability.

As a result of an actuarial assessment performed by the Department of Treasury and Finance, the calculation of employer superannuation cost on-cost has changed from the 2013 rate of 10.2% to 10.3%. The change results in an increase of $0.228 million on the long service leave liability for the 2013-14 reporting period. The impact on future periods is impractical to estimate as the long service leave liability is calculated using a number of assumptions - a key assumption is the long term discount rate.

The actuarial assessment performed by the Department of Treasury and Finance determined that the salary inflation remained at 4%. As a result, there is no net financial effect in the annual leave liability and employee benefit expenses.

2014 $’000

2013 $’000

Current

Accrued salaries and wages 174 286 Annual leave 3 960 3 811 Long service leave 2 711 2 504 Skills and experience retention leave 61 221

Total current employee benefits 6 906 6 822

Non-current

Long service leave 9 222 8 903 Skills and experience retention leave 209 -

Total non-current employee benefits 9 431 8 903

Total employee benefits 16 337 15 725

EMPLOYEE BENEFITS NOTE 27



OTHER LIABILITIESNOTE 29

Lease incentive received from building owner applied as a contribution towards fitout costs (as per agreement) and amortised over the period of the lease (10 years), commencing December 2009.

Security deposits are received to ensure mine operators rehabilitate sites and comply with all statutory requirements on cessation of licences. Cash deposits are classified as security deposits. The value of securities held in the form of bank guarantees are reflected as a contingent asset (note 31) as the department only has a claim on these funds if the licensee fails to meet its legislative requirements.

Unearned revenue includes payments of rent received for the grant or renewal of exploration licences and mining leases which are held as unearned revenue until the Minister officially approves the grant or renewal of the tenement or lease. Once the grants or renewals have been instrumented, amounts are then recognised as revenue, or transferred to the landowners refund account for those Freehold Landowners who are entitled to a refund of rent.

2014 $’000

2013 $’000

Current

Lease incentive 240 240 Security deposits 5 877 6 018 Unearned revenue 1 053 2 036

Total current other liabilities 7 170 8 294

Non-current

Lease incentive 2 156 2 156 Accumulated amortisation - lease incentive (1 098) (859)

Total non-current other liabilities 1 058 1 297

Total other liabilities 8 228 9 591

PROVISIONSNOTE 28

2014 $’000

2013 $’000

Current

Provision for workers compensation 134 139

Total current provisions 134 139

Non-Current

Provision for workers compensation 466 475

Total non-current provisions 466 475

Total provisions 600 614

Carrying amount at the beginning of the period 614 436

Additional provisions recognised 123 303 Payments (137) (125)

Carrying amount at 30 June 600 614

A liability has been reported to reflect unsettled workers compensation claims. The workers compensation provision is based on an actuarial assessment performed by the Public Sector Workforce Relations Division of the Department of the Premier and Cabinet.

P 110


2014 $’000

2013 $’000

Remuneration commitments

Commitments for the payment of salaries and other remuneration under fixed-term employment contracts in existence at the reporting date but not recognised as liabilities are payable as follows:

Within one year 10 518 11 523 Later than one year but not longer than five years 16 798 17 308

Total remuneration commitments 27 316 28 831

Amounts disclosed include commitments arising from executive and other service contracts. The department does not offer fixed-term remuneration contracts greater than five years.

2014 $’000

2013 $’000

Other commitments

Commitments for the payment of other contracts and grant agreements in existence at the reporting date but not recognised as liabilities are payable as follows:

Within one year 15 742 13 569 Later than one year but not longer than five years 8 860 6 416

Total other commitments 24 602 19 985

Amounts disclosed include commitments arising from agreements with contractors, consultants and grant recipients.

2014 $’000

2013 $’000

Capital commitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities in the financial statements are payable as follows:

Within one year 851 1 658

Total capital commitments 851 1 658

UNRECOGNISED CONTRACTUAL COMMITMENTSNOTE 30

Capital commitments at 30 June 2014 relate to the State Drill Core Reference Library.



CONTINGENT ASSETS AND LIABILITIES NOTE 31

CONTINGENT ASSETS

Where specific conditions relating to a financial assistance grant are not met, the department may request the amount granted be repaid by the grantee. There are no known contingent assets arising from these present obligations as at 30 June 2014.

The department receives securities in accordance with Acts administered by the department for mining and petroleum. These are obtained to ensure that a mine operator rehabilitates a site and complies with all statutory requirements on cessation of a licence. The amount held as bank guarantees at 30 June 2014 is approximately $126 million ($113 million). The department only has a claim on these funds if the licensee fails to perform its legislative requirements.

CONTINGENT LIABILITIES

Guarantees and Indemnities

The department has provided indemnities relating to various industry packages. As at 30 June 2014 the value of these indemnities cannot be reliably measured (the value reported in last financial year was $4 837 000, for which the idenmity has been satisified).

The nature of activities that the department is involved in can create potential exposure to mining matters, which the department may be required to remedy in the future. The department has some potential outstanding litigation specifically resulting from interpretation of past mining practices and petroleum exploration.

Certain matters associated with contaminants such as contaminated land and hazardous materials have been identified and are managed in accordance with recognised standards. This includes the environmental liabilities of past mining practices where there is no longer an active licence. For new activities, it is a lease condition that rehabilitation be undertaken by the leaseholder before a lease is surrendered. The department's responsibility is to ensure that a lease is not surrendered before appropriate rehabilitation has occurred, thus minimising the likelihood of future environmental risks to government. Work is progressing to determine any liabilities that may be associated with this role. At this time, the financial impact, if any, cannot be reliably estimated.

UNRECOGNISED CONTRACTUAL COMMITMENTS CONTINUEDNOTE 30

2014 $’000

2013 $’000

Operating lease commitments

Commitments in relation to operating leases contracted for at the reporting date but not recognised as liabilities are payable as follows:

Within one year 5 605 5 599 Later than one year but not longer than five years 14 047 16 404 Later than five years 1 094 3 677

Total operating lease commitments 20 746 25 680

Representing: Cancellable operating leases 1 058 811 Non-cancellable operating leases 19 688 24 869

20 746 25 680

The department's operating leases relate to office accommodation and motor vehicles. Office accommodation is leased from the Department of Planning, Transport and Infrastructure - Building Management Accommodation and Property Services. The leases are non-cancellable with terms ranging up to ten years with some leases having the right of renewal. Motor vehicles are leased from SAFA through their agent LeasePlan Australia with lease periods of up to three years. These are cancellable without notice.

P 112


On transfer of the Population and Migration Policy unit, the department recognised the following assets and liabilities:

Transferred from DPC $’000

Total$’000

Current Liabilities

Payables 5 5 Employee benefits 43 43

Total current liabilities 48 48

Non-current Liabilities


Total non-current liabilities 56 56

Total liabilities 104 104

Total net assets transferred (104) (104)

Net assets assumed by the department as a result of the administrative restructure are the carrying amount of those assets in the transferor’s Statement of Financial Position immediately prior to transfer. The net assets transferred were treated as a contribution by the Government as owner.

TRANSFERRED FUNCTIONSNOTE 32

TRANSFERRED IN

Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2013, from 1 December 2013 the Population and Migration Policy unit was transferred from the Department of the Premier and Cabinet (DPC) to the Department for Manufacturing, Innovation, Trade, Resources and Energy. This included the transfer of three employees and expenditure budget funding of $0.358 million for controlled activities.

The effective date of the transfer is 1 December 2013.

Total income and expenses attributable to the Population and Migration Policy unit for 2013-14 were:

DPC1 July 2013 to 30 Nov 2013

$’000

DMITRE 1 Dec 2013 to June 2014

$’000

Total$’000

Expenses

Employee benefit expenses 160 158 318 Supplies and services 10 1 11

Total expenses 170 159 329

Net result (170) (159) (329)



REMUNERATION OF BOARD AND COMMITTEE MEMBERSNOTE 33

* In accordance with the Department of the Premier and Cabinet Circular No. 016, government employees did not receive any remuneration for board / committee duties during the financial year. In addition, members of Parliament who are members of boards or committees did not receive any remuneration.

^ Indicates a member entitled to remuneration but has elected not to receive payment.

Members of boards and committees reporting to the Minister for Investment and Trade and Minister for Manufacturing and Innovation (Minister for Manufacturing, Innovation and Trade) during the 2014 financial year were:

Advanced Manufacturing Council

D McGurk S Myatt G Roos Chair J Law G Knight* Resigned 30/06/2014 T Monro G Combet Appointed 22/10/13 M Beer Appointed 24/04/14

Business Development Council

P Sims Chair A Christopoulos Deputy Chair A Fisher S Gallery

TRANSFERRED FUNCTIONS CONTINUEDNOTE 32

TRANSFERRED OUT

Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2013, from 5 September 2013 the Invest in SA business unit was transferred from the Department for Manufacturing, Innovation, Trade, Resources and Energy to the Department of the Premier and Cabinet (DPC).

The effective date of the transfer is 5 September 2013.

The following assets and liabilities were transferred to Department of the Premier and Cabinet:

Transferred to DPC $’000

Total$’000

Current Liabilities


Total current liabilities 82 82

Non-current Liabilities


Total non-current liabilities 49 49

Total liabilities 131 131

Total net assets transferred (131) (131)

Net assets transferred by the department as a result of the administrative restructure were at the carrying amount. The net assets transferred were treated as a distribution to the Government as owner.

P 114


Business Develpment Council continued

K Saffin^ J Chapman Resigned 21/01/2014 K Baker Jamieson C Johnston J Hawkes V McClurg D Basheer A Kittel^ B Roberts S Chase B Mahoney^

Mining Industry Participation Office Advisory Council

R Nelson C Stallan Resigned 30/06/2014 P Goiak* B Kilgariff A Kachallek Chair J Kuchel M McGowan D Dally G Knight* Resigned 30/06/2014 D Cruickshanks-Boyd P Heithersay* B Goldstein* E Tyne* G Hunt L Dello Appointed 30/06/2014 N Gibbins D Maxwell P Dowd Appointed 15/05/2014 L Piro*

For the Mining Industry Participation Office Advisory Council, no members received remuneration.

South Australia - China Advisory Committee

S Kennihan Chair K Anderson A Huang J Yuile I Zhang C Tragakis K Osborn Resigned 06/06/2014 D Frater* Resigned 03/06/2013 G Knight* Resigned 30/06/2014 C Bierbaum* Appointed 03/09/2013

For the South Australia-China Advisory Committee, no members received remuneration.

REMUNERATION OF BOARD AND COMMITTEE MEMBERS CONTINUEDNOTE 33




South Australia - India Advisory Committee

B Hayes Chair A Vicary D Von Wald Resigned 26/07/2014 A Downs R Vasan R Spencer D Frater* G Knight* C Bierbaum* Appointed 17/09/2013 N Relph Appointed 17/09/2013

For the South Australia-India Advisory Committee, no members received remuneration.

Members of boards and committees reporting to the Minister for Mineral Resources and Energy during the 2014 financial year were:

Board of Examiners for Mine Managers

G Marshall* Chair J Coker P Reynolds Appointed 16/07/2014 M Van Leuven A Ward Appointed 27/01/2014

Brukunga Minesite Remediation Board

H MacDonald Chair R MacDonald A Stuart E Tyne* H Seager Appointed 15/07/2013 S Skibinski Appointed 15/07/2013

Electrical Technical Advisory Committee

R Anderson* Resigned 06/12/2013 G Cox* R Donnelly R Faunt* Chair J Gater D Inge* Resigned 14/02/2014 B Jackson L Moore P Morris* S O'Loughlin T Tran J Corbett* Appointed 06/12/2013 S Cottell* Appointed 06/02/2014

For the Electrical Technical Advisory Committee, no members received remuneration.

Energy Consumers Council

M Baldock Chair C Eardley Deputy Chair J Fisher Resigned 01/07/13 T Hipper Appointed 04/11/13, Resigned 15/05/14

P 116



Energy Consumers Council continued

H I’Anson N Long A McKenna Appointed 04/11/13 A Moore H Nichols Resigned 14/01/14 J Pike R Williams D Crabb Deputy Member M Creswell Deputy Member J De Silva Proxy Member L Stoll Proxy Member

The Energy Consumers Council has a number of proxy members representing various organisations. Only paid proxy members have been included above.

Energy Consumers Council Special Needs Sub-Committee

M Baldock Chair Resigned 31/12/13 C Eardley Deputy Chair Resigned 31/12/13 J Fisher Resigned 31/12/13 H I’Anson Resigned 31/12/13 N Long Resigned 31/12/13 A Moore Resigned 31/12/13 H Nichols Resigned 31/12/13 J Pike Resigned 31/12/13 R Williams Resigned 31/12/13 J De Silva Proxy Member Resigned 31/12/13 L Stoll Proxy Member Resigned 31/12/13

Energy Consumers Council Demand Side Management Sub-Committee

M Baldock Chair Resigned 31/12/13 C Eardley Deputy Chair Resigned 31/12/13 J Fisher Resigned 31/12/13 H I’Anson Resigned 31/12/13 N Long Resigned 31/12/13 A Moore Resigned 31/12/13 H Nichols Resigned 31/12/13 J Pike Resigned 31/12/13 R Williams Resigned 31/12/13 J De Silva Proxy Member Resigned 31/12/13 L Stoll Proxy Member Resigned 31/12/13

Any member on the Energy Consumers Council are invited to attend the sub-committee meetings if they are interested in the topic to be discussed at the meeting.

The Energy Consumers Council sub-committee's were abolished on 31/12/2014.

Extractive Areas Rehabilitation Fund Project Assessment Panel

C Miller Chair S Falland H O'Neil E Tyne* P Whiffen Resigned 01/10/13 E Young*




Extractive Areas Rehabilitation Fund Project Assessment Panel continued

J Barker* Deputy Member Resigned 11/03/14 M Harvey Deputy Member S Linou Deputy Member Resigned 01/07/13 G Marshall* Deputy Member T McDonald Deputy Member

Gas Technical Advisory Committee

D Buchanan A Clarke R Faunt* Chair D Inge* Resigned 14/02/2014 R Mignone W Patience* D Santinon N Smith Resigned 08/05/2014 A Szacinski* T Tucker* M Clough S Cottell* Appointed 06/02/2014 D Parker Appointed 08/05/2014

For the Gas Technical Advisory Committee, no members received remuneration.

Olympic Dam Social Management Partnership

W Cossey Chair

For the Olympic Dam Social Management Partnership, no members received remuneration as no meetings were held.

Resources and Energy Sector Infrastructure Council

B Carter G Guglielmo Chair R Hook* Resigned 01/05/14 J Kuchel* L Owens J Roberts J White Resigned 03/08/13 P Heithersay* L Worrall* D Cuzzubbo T White D Cruickshanks-Boyd

For the Resources & Energy Sector Infrastructure Council, no members received remuneration.

Resources Industry Development Board

K Yates Chair P Carr Deputy Chair D Carter B Goldstein* R Goldsworthy I Gould

P 118



Resources Industry Development Board continued

G Guglielmo^ P Heithersay* P Holloway G McKenzie A McCleary J Roberts E Tyne* J White Resigned 28/04/2014 R Yeeles^

Roxby Downs Advisory Reference Group

W Cossey Chair M Gall* P Heithersay* P Holloway^ N Jones^ M Kelledy^ Deputy Member E Tyne* Deputy Member

For the Roxby Downs Advisory Reference Group, only the Chair received remuneration.

The following committees and panels are responsible to the Minister for Mineral Resources and Energy, but report to other government departments:

Consumer Advisory Committee

S Canale^ M Henley D Hossen H I'Anson T Kelly P Walsh^ Chair J Whittaker I Yates^ A McKenna Appointed 09/07/2014

Members of the Consumer Advisory Committee are remunerated by the Essential Services Commission of South Australia.

Electricity Act 1996 Assessors Panel

T Blackburn C Cooper B Rajkowska D Round H Sandstrom E Woodley

Gas Act 1997 Assessors Panel

O Clark C Cooper B Rajkowska W Ryan




REMUNERATION OF BOARD MEMBERS

The number of members whose remuneration received or receivable falls within the following bands is:

2014 Number

2013 Number

$1 - $9 999 47 38 $10 000 - $19 999 4 2 $20 000 - $29 999 2 3 $70 000 - $79 999 1 2

Total number of members 54 45

Powerline Environment Committee

I Brooks Resigned 04/03/2014 R Crowley Chair K Hamilton D Harvey M Lee M Magin L Clyne Appointed 05/03/2014 G O'Niell* Appointed 05/03/2014 T Wilson Appointed 05/03/2014

Members of the Powerline Environment Committee were entitled to remuneration, which was paid by the Essential Services Commission of South Australia.

The following committee is a Parliamentary committee:

Industries Development Committee

L Breuer Presiding Member Resigned 14/02/14 P Caica Resigned 14/02/14 I Evans Appointed 15/05/14 S Griffiths Resigned 14/02/14 B Rowse* Appointed 15/05/14 M Hamilton-Smith Appointed 15/05/14, Resigned 27/05/14 K Hildyard Appointed 15/05/14 L Odenwalder Presiding Member Appointed 15/05/14

Boards transferred out of the department as a result of restructuring arrangements as at 5 September 2013:

Invest in South Australia Advisory Board

K Osborn Chair D Thomas C Namblard B Carter D Klingberg G Knight* J Hallion* L Worrall* R Garrand* S Ashby* G Roos

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2014 $’000

2013 $’000

Reconciliation of cash and cash equivalents at the end of the reporting period:

Reconciliation of cash – cash at 30 June 2014 as per Statement of Financial Position: Deposits with Treasurer – Operating Account 18 189 16 125 Deposit with the Treasurer – Accrual Appropriation 4 021 5 039 Deposits at call – overseas offices 281 214 Other 2 1

Balance as per the Statement of Cash Flows 22 493 21 379

Reconciliation of net cash provided (used in) by operating activities to net result:

Net cash provided (used in) by operating activities 2 895 (2 941)Net cash paid to restructure (27) 6 841

Add / (less) non cash items:

Depreciation and amortisation expense of non-current assets (2 059) (2 290)Amortisation of lease incentive 240 240 Doubtful debts expense (1 225) (8)Prior period adjustments (175) - Loss from disposal and write down of non-current assets (122) (3)

Movements in assets / liabilities:

(Decrease) increase in receivables (1 421) 1 680 Increase (decrease) in other assets 166 (106)Decrease (increase) in payables (264) (2 179)Decrease in other liabilities 983 199 Decrease (increase) in provisions 14 (178)Increase in employee benefits (612) (1 700)

Net result (1 607) (445)

CASH FLOW RECONCILIATIONNOTE 34

For the purposes of the Statement of Cash Flows, cash on hand and on deposit includes cash deposits which are used in the cash management function on a day-to-day basis.

Remuneration of members reflects all costs of performing board / committee member duties including sitting fees, superannuation contributions, fringe benefits tax and any other salary sacrifice arrangements. The total remuneration received or receivable by members was $244 764 ($306 138).

Unless otherwise disclosed, transactions between members are on conditions no more favourable than those that it is reasonable to expect the entity would have adopted if dealing with the related party at arm's length in the same circumstances.

For the purpose of this table, the travel allowance paid to members has not been included as remuneration as it is considered to be a reimbursement of direct out-of-pocket expenses incurred by the relevant members.


2014 $’000

2013 $’000

Net assets: Cash at bank 19 052 17 364 Receivables - 7

Net assets 19 052 17 371


Funds: Balance of funds at beginning of period 17 371 17 184 Net receipts 1 681 187

Fund balance at 30 June 19 052 17 371

Commitments in place at 30 June 1 627 1 563

2014 $’000

2013 $’000

Operations: Revenue 3 441 2 839 Expenditure 1 760 2 652

Net operating surplus 1 681 187

TRUST FUNDSNOTE 35

EXTRACTIVE AREAS REHABILITATION FUND

The Extractive Areas Rehabilitation Fund is credited with amounts by way of royalty on extractive minerals and is used for the rehabilitation of land disturbed by mining operations. The funds collected are used to limit damage to any aspect of the environment by such mining operations in addition to the promotion of research into methods of mining engineering and practice by which environmental damage might be reduced.

Aggregate details of the transactions and balances relating to this trust fund to year ended 30 June are as follows:

EVENTS AFTER THE REPORTING PERIODNOTE 36

As proclaimed on 26 June 2014 and in accordance with Section 26 of the Public Sector Act 2009, from July 1 2014 the title of the Department for Manufacturing, Innovation, Trade, Resources and Energy is altered to the Department of State Development.

"In addition the Public Sector (Reorganisation of Public Sector Organisations) Notice 2013 and 2014 (dated 15 June 2014) proclaimed that effective from 1 July 2014 the Department of Further, Education, Employment, Science and Technology, Arts SA, Aboriginal Affairs and Reconciliation division, Office of the Economic Development Board, Invest in SA and Health Industries SA will be transferred to the Department of State Development.

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SA Government Non-SA Government Total

Note2014

$’000 2013

$’000 2014

$’000 2013

$’000 2014

$’000 2013

$’000

Expenses

5 Employee benefit expenses 2 717 2 550 55 963 49 713 58 680 52 263 6 Supplies and services

Accommodation and service costs 5 577 5 477 459 655 6 036 6 132 Accounting and audit fees 172 143 142 288 314 431 Communications and information technology 1 766 1 638 2 960 3 327 4 726 4 965 Contractors 46 7 7 178 8 281 7 224 8 288 Consultancies - 149 5 864 4 428 5 864 4 577 Energy supply fuel and lubricants 75 56 7 776 7 483 7 851 7 539 Lease incentive amortisation - - (240) (240) (240) (240)Marketing 5 9 1 295 2 281 1 300 2 290 Overseas trade representation 16 - 344 140 360 140 RAES (remote areas energy scheme) Aboriginal Communities infrastructure 2 120 1 950 1 877 1 307 3 997 3 257 Shared service fees - other 2 435 2 687 8 - 2 443 2 687 Staff related expenses 82 105 1 493 1 577 1 575 1 682 Travel and related expenses 1 153 959 2 137 2 542 3 290 3 501 Office administration expenses 1 867 1 791 4 232 4 133 6 099 5 924

7 Depreciation and amortisation expenses - - 2 059 2 290 2 059 2 290 8 Grants and subsidies

Industry development 3 820 597 8 342 8 147 12 162 8 744 Energy 62 20 5 986 6 703 6 048 6 723 Minerals and petroleum 1 440 587 4 602 4 386 6 042 4 973 Renewables - 50 190 999 190 1 049 Other 35 28 369 278 404 306

9 Other expenses Bad and doubtful debts - - 1 232 8 1 232 8 Asset write-down - - 110 - 110 -

17 Net loss from the disposal of non-current assets - - 12 3 12 3

Total expenses 23 388 18 803 114 390 108 729 137 778 127 532

Income

12 Revenues from fees and charges - - 21 585 17 421 21 585 17 421 13 Technical regulation 6 384 6 277 - - 6 384 6 277 14 Sale of electricity 2 745 2 012 1 885 1 848 4 630 3 860 15 Commonwealth revenues - - 1 425 1 116 1 425 1 116 16 Interest revenues - - 6 15 6 15 18 Other revenues

Fuel tax credits - - 1 623 1 610 1 623 1 610 Management of Extractive Areas Rehabilitation Fund

449 284 - - 449 284

Sponsorship revenues - - 21 51 21 51 Recoveries - financial assistance grants 10 310 416 13 426 323 Recoveries - intra-government transfers - grants 3 243 1 618 - - 3 243 1 618 Recoveries - other 534 1 155 890 1 372 1 424 2 527

Total income 13 365 11 656 27 851 23 446 41 216 35 102

TRANSACTIONS WITH SA GOVERNMENTNOTE 37



FINANCIAL INSTRUMENTS / FINANCIAL RISK MANAGEMENTNOTE 38

Details of the significant accounting policies and methods adopted including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised with respect to each class of financial asset, financial liability and equity instrument are disclosed in Note 2 Summary of Significant Accounting Policies.

Table 38.1: Categorisation of financial instruments

Category of financial asset and financial liability

Statement of Financial Position line item

Note Carrying amount

2014 $’000

Fair value2014

$’000

Carrying amount

2013$’000

Fair value2013

$’000

Financial assets

Cash Cash 20, 34 22 493 22 493 21 379 21 379Loans and receivables Receivables (1) (2) 3 845 3 845 6 567 6 567

Total financial assets at cost 26 338 26 338 27 946 27 946

Financial liabilities

Financial liabilities at cost Payables (1) 11 409 11 409 10 303 10 303

Total financial liabilities at cost 11 409 11 409 10 303 10 303

(1) Receivable and payable amounts disclosed here exclude amounts relating to statutory receivables and payables. In government, certain rights to receive or pay cash may not be contractual and therefore in these situations, the requirements will not apply. Where rights or obligations have their source in legislation such as levy receivables/payables, tax equivalents, Commonwealth tax, etc. they would be excluded from the disclosure. The standard defines contract as enforceable by law. All amounts recorded are carried at cost (not materially different from amortised cost).

(2) Receivables amount disclosed here excludes prepayments. Prepayments are not financial assets as defined in AASB 132 as the future economic benefit of these assets is the receipt of goods and services rather than the right to receive cash or another financial asset.

TRANSACTIONS WITH SA GOVERNMENT CONTINUEDNOTE 37

SA Government Non-SA Government Total

Note2014

$’000 2013

$’000 2014

$’000 2013

$’000 2014

$’000 2013

$’000

Financial assets

21 Receivables Receivables 305 1 611 1 805 1 303 2 110 2 914 GST input tax recoverable - - 859 738 859 738 Prepayments - - 276 114 276 114 Accrued revenue 716 1 356 1 005 1 466 1 721 2 822

22 Financial assistance debtors - - 16 970 16 970

Total financial assets 1 021 2 967 3 961 4 591 4 982 7 558


24 Payables Creditors and accrued expenses 2 954 4 998 8 608 5 457 11 562 10 455 Employee on-costs 557 838 1 068 763 1 625 1 601

Total financial liabilities 3 511 5 836 9 676 6 220 13 187 12 056

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FINANCIAL INSTRUMENTS / FINANCIAL RISK MANAGEMENT CONTINUEDNOTE 38

Receivable amounts disclosed here exclude amounts relating to statutory receivables. The accounting standard requires disclosure of financial assets (receivables) resulting from contracts enforceable by law. In government, certain rights to receive or pay cash may not be contractual and therefore in these situations, the requirements will not apply. Where rights or obligations have their source in legislation such as levy receivables, tax equivalents, Commonwealth tax etc they would be excluded from the disclosure. They are carried at cost.

Table 38.2: Ageing analysis of financial assets

Past due by

Overdue for < 30 days $’000

Overdue for 30 - 60 days $’000

Overdue for > 60 days $’000

Total$’000

2014 Not impaired Receivables 1 406 97 1 441 2 944

2013 Not impaired Receivables 1 680 247 171 2 098

The following table discloses the ageing of not impaired financial assets, past due.

FAIR VALUE

The Department for Manufacturing, Innovation, Trade, Resources and Energy does not recognise any financial assets or financial liabilities at fair value (refer to Note 2 Summary of Significant Accounting Policies and Notes 20, 21, 22, 24, 27 and 32).

CREDIT RISK

Credit risk arises when there is the possibility of the department’s debtors defaulting on their contractual obligations resulting in financial loss to the department. The department measures credit risk on a fair value basis and monitors risk on a regular basis.

The department has minimal concentration of credit risk. The department has policies and procedures in place to ensure that transactions occur with customers with appropriate credit history. The department does not engage in high risk hedging for its financial assets.

Allowances for impairment of financial assets are calculated on past experience and current and expected changes in client credit rating. Currently the department does not hold any collateral as security for any of its financial assets. Other than receivables, there is no evidence to indicate that financial assets are impaired. Refer note 21 for information on the allowance for impairment in relation to receivables.



LIQUIDITY RISK

Liquidity risk arises where the department is unable to meet its financial obligations as they fall due. The department is funded principally from appropriation by the SA Government. The department works with the Department of Treasury and Finance to determine the cash flows associated with its Government approved program of work and to ensure funding is provided through SA Government budgetary processes to meet the expected cash flows. The department settles undisputed accounts within 30 days from the date of the invoice or date the invoice is first received. In the event of a dispute, payment is made 30 days from resolution.

The department's exposure to liquidity risk is insignificant based on past experience and current assessment of risk.

The carrying amount of financial liabilities recorded in Table 38.1 represent the department's maximum exposure to financial liabilities.

MARKET RISK

Market risk through interest rate or price fluctuations is immaterial.

SENSITIVITY DISCLOSURE ANALYSIS

A sensitivity analysis has not been undertaken for the interest rate risk of the department as it has been determined that the possible impact on profit and loss or total equity from fluctuations in interest rates is immaterial.

FINANCIAL INSTRUMENTS / FINANCIAL RISK MANAGEMENT CONTINUEDNOTE 38

Table 38.3: Maturity analysis of financial assets and liabilities

Contractual Maturities

Carrying amount($’000)

< 1 year($’000)

1-5 years($’000)

> 5 years($’000)

2014 Financial assets

Cash 22 493 22 493 - -Receivables 3 845 3 845 0 -

Total financial assets 26 338 26 338 0 -


Payables 11 409 11 409 - -

Total financial liabilities 11 409 11 409 - -

2013 Financial assets

Cash 21 379 21 379 - -Receivables 6 567 6 114 453 -

Total financial assets 27 946 27 493 453 -


Payables 10 303 10 303 - -

Total financial liabilities 10 303 10 303 - -

The following table discloses the maturity analysis of financial assets and financial liabilities.

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Published September 2014.

No responsibility for any loss or damage caused by reliance on any of the information or advice provided by or on behalf of the State of South Australia, or for any loss or damage arising from acts or omissions made, is accepted by the State of South Australia, their officers, servants or agents. Produced by the South Australian Department of State Development © September 2014. Content correct at time of printing.

DEPARTMENT OF STATE DEVELOPMENT

Level 9, The Conservatory131-139 Grenfell StreetAdelaide, South Australia 5000

GPO Box 1264Adelaide, South Australia 5001DX 452

T. +61 8 8303 2400F. +61 8 8303 2410E. [email protected]

DIVISIONS AND LOCATIONS:

Office of the Chief ExecutiveInvestment, Trade and Strategic ProjectsManufacturing and InnovationStrategy, People and Culture

Level 9, The Conservatory131-139 Grenfell StreetAdelaide, South Australia 5000

T. +61 8 8303 2400F. + 61 8 8303 2410E. [email protected]

Minerals and Energy Resources Customer Services CentreLevel 7, 101 Grenfell StreetAdelaide, South Australia 5000


Energy Markets and ProgramsOffice of the Technical Regulator

Level 8, ANZ Building (City Central Tower 1)11 Waymouth StreetAdelaide, South Australia 5000


Olympic Dam Task Force Level 9, 178 North TerraceAdelaide, South Australia 5000

T. +61 8 8303 2204F. +61 8 8303 2964