2006-07 Ministerial Portfolio Statement

Document Sample
2006-07 Ministerial Portfolio Statement Powered By Docstoc
					    MINISTERIAL PORTFOLIO STATEMENT

           2006-07 STATE BUDGET



This Ministerial Portfolio Statement includes the
     following Departments and Agencies:



    DEPARTMENT OF EMPLOYMENT AND TRAINING

       DEPARTMENT OF INDUSTRIAL RELATIONS

       SPORT AND RECREATION QUEENSLAND
                         TABLE OF CONTENTS


DEPARTMENT OF EMPLOYMENT AND TRAINING


Departmental Overview                                       1-1

Output Performance
      Employment Initiatives                                1-9
      Vocational Education and Training Services           1-16


Administered Items                                         1-29

Capital Acquisitions                                       1-30

Financial Statements                                       1-33

Reconciliation of Appropriation Amounts to the Financial
Statements                                                 1-42


STATUTORY BODIES
      Australian Agricultural College Corporation           2-1
                         TABLE OF CONTENTS


DEPARTMENT OF INDUSTRIAL RELATIONS


Departmental Overview                                             3-1

Output Performance
      Workplace Health and Safety Services (including Workers’    3-8
      Compensation Policy)
      Private Sector Industrial Relations Services               3-16
      Administration of the Industrial Court and Commission      3-22
      System
      Electrical Safety Services                                 3-27
      Public Sector Industrial and Employee Relations Services   3-34


Reconciliation of Output Statements to the Whole-of-Department   3-38
Financial Statements

Administered Items                                               3-40

Capital Acquisitions                                             3-41

Financial Statements                                             3-43

Reconciliation of Appropriation Amounts to the Financial
Statements                                                       3-54



SPORT AND RECREATION QUEENSLAND                                   4-1


APPENDIX - Glossary of Terms
         MINISTERIAL PORTFOLIO STATEMENT

                     2006-07 STATE BUDGET



    MINISTER FOR EMPLOYMENT, TRAINING AND
    INDUSTRIAL RELATIONS AND MINISTER FOR
                    SPORT



          DEPARTMENT OF EMPLOYMENT AND TRAINING




______________________________                ______________________________

Hon. Tom Barton MP                            Scott Flavell
Minister for Employment, Training and         Director-General
Industrial Relations and Minister for Sport
                                     DEPARTMENTAL OVERVIEW


STRATEGIC ISSUES
Skills and training for employment are key drivers of economic growth, social development
and individual and community prosperity. Skills contribute to increased productivity in the
workplace, increased participation in the workforce and increased personal and financial
rewards for individuals. A skilled workforce supports industry to be more innovative, achieve
productivity improvements, increase profit margins, compete internationally and build
enterprises that are attractive to skilled workers.

The Queensland Government’s vocational education and training (VET) and employment
programs play a major role in supporting the Government’s priority outcomes of a strong,
diversified economy, a community of well-skilled and knowledgeable people and a fair,
socially cohesive and culturally vibrant society.

The Department of Employment and Training’s role is continuing a rapid evolution in
response to changes within the Queensland economy. The current tight labour market,
spurred by the lowest levels of unemployment in 30 years, have demanded a refocus of
priorities to ensure the continued provision of effective responses to the training and
employment needs of Queensland.

The State’s vocational education and training system is building on the significant advances
to date and is implementing more flexible training delivery to meet the requirements of
modern learners. The department is increasing its focus on higher level training programs to
support the high skill needs of growth industries, professional and associate professional
occupations and new technologies. New strategies are being developed to recognise and build
on the existing skills of the workforce.

Last year the Queensland Government conducted a comprehensive review of Queensland’s
vocational education and training system. In doing this, it identified two major deficits in
Queensland’s labour market:
• an urgent shortage of trade skills
• an underqualified associate professional workforce.

Subsequently, the department has announced a major package of reforms that will ensure our
training system gives Queenslanders the skills that industries need and provides existing
workers with opportunities to update their skills and improve their productivity and incomes.

The Queensland Skills Plan outlines four major areas of reform:
• A training system that works for Queensland – significantly reforming the vocational
   education and training system and the TAFE structure of our training system
• Training that works for industry and employers – outlining a new approach to working
   with industry and employers to ensure the vocational education and training system is
   better targeted to economic needs
• Training that works for the trades – introducing major reforms to trades training and
   modernising our apprenticeship system to assist in overcoming trades skills shortages


2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1-1
•    Training that works for individuals – providing better ways of supporting individuals to
     access training and develop their skills. This will include improved access to training and
     career information, more flexible training options and increased support for people who
     are disadvantaged in the labour market.

The department is also refocussing its labour market initiatives in recognition of the high
levels of support required by clients who are still struggling to gain employment in the
current economy. Over the coming year the department will replace the Breaking the
Unemployment Cycle initiative with Skilling Queenslanders for Work. This new initiative will
provide more intensive case-management approaches to supporting people who are the most
vulnerable in the labour market to gain sustainable job ready skills and employment
outcomes.

This new approach to skills and training complements work being undertaken to reduce the
impact of skills shortages at a national level, including work overseen by the Council of
Australian Governments (COAG).

During 2005-06, the department hosted the shared service provider Corporate Solutions
Queensland which provides corporate services to 11 agencies as part of the
whole-of-Government Shared Service Initiative. From 1 July 2006, the hosting arrangements
for Corporate Solutions Queensland, CorporateLink and PartnerOne were consolidated from
three host agencies to the Shared Service Agency hosted by Queensland Treasury. The
operations of Corporate Solutions Queensland are reported in the Ministerial Portfolio
Statement for the Deputy Premier, Treasurer and Minister for State Development, Trade and
Innovation.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1-2
2006-07 HIGHLIGHTS
In 2006-07, the department will invest $978.7 million in jobs and training.

The Breaking the Unemployment Cycle initiative, introduced in 1998, has been highly
successful achieving its target of 100,000 jobs more than 12 months ahead of schedule. While
the unemployment rate has nearly halved since 1998, there are still many Queenslanders
struggling to compete in the job market and who need extra help to break into the paid
workforce. In response, Skilling Queenslanders for Work is being introduced to continue to
help the most disadvantaged jobseekers with a greater emphasis on skilling for work. Many
features of the successful Breaking the Unemployment Cycle initiative are being combined
with new measures, under more flexible guidelines, to allow assistance to be better tailored to
suit individual jobseeker’s needs.

In 2006-07, the Government will be embarking upon the implementation of the Queensland
Skills Plan. This Plan outlines a range of fundamental reforms to the State’s training system
to tackle skills shortages and improve alignment with the changing needs of industry and the
economy. Over the next four years, around $801 million in recurrent expenditure will be
invested to implement vocational education and training reforms (including an estimated
$542 million in new recurrent funding), with a total capital commitment exceeding $300
million over six years.

2006-07 Significant Allocations
•    $45.7 million will be allocated to implement capital initiatives outlined within the
     Queensland Skills Plan, including modernisation of the State’s network of TAFE
     Institutes.

•    $8.5 million will be injected to create 4,250 additional trades training places. By 2010,
     this will increase to a total of 17,000 extra trade training places each year.

•    $7.4 million will be committed for 3,500 further higher level training places for
     associate professional and professional workers. By 2010, this will increase to a total of
     14,000 extra higher level training places each year.

•    $12.3 million will be invested in Skilling Solutions Queensland to continue existing
     operations and to expand this innovative and customised face-to-face service to ten
     additional centres across Queensland. This investment will give Queenslanders across the
     State unprecedented access to information on training and career pathways, a vital step in
     providing a skilled workforce to maintain Queensland’s growing economy.

•    $22.8 million will be provided to fund up to 1,100 First Start traineeships through
     subsidies provided to public sector agencies to employ disadvantaged jobseekers as
     trainees.

•    $27.1 million will be committed to the Community Jobs Plan program to support 6,020
     long-term unemployed, mature age and other disadvantaged jobseekers with targeted job
     places, job search assistance and training.

•    $3 million will be invested in 11 Skills Formation Strategies including four regional
     strategies based on identified priorities. These strategies will support industry and

2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1-3
     regional stakeholders to work together on identifying and addressing the factors which
     impact on skills development.

•    $6 million will be provided to establish three Centres of Excellence in manufacturing
     and engineering; building and construction; and energy to complement contributions
     provided by industry.

•    $7.2 million will be invested to support further increases in the use of Recognition of
     Prior Learning and credit transfer.

•    $7.6 million will be provided to the Training in Communities program to assist up to
     4,470 individuals participate in a range of nationally recognised training competencies
     and qualifications.

•    $2 million to implement the Experience Pays Awareness Strategy to raise awareness to
     encourage the adoption of age-friendly recruitment and workplace management practices.
     It will also promote best practices in the recruitment and retention of older workers. The
     strategy will also link eligible mature age people with information and referral services.

•    $9.8 million for the Education and Training Reforms Pathway Program – Get Set for
     Work will fund 2,230 places and a recognition and registration process. This program
     provides employment preparation for 15-17 year olds who are either early school leavers
     or otherwise at risk of disengagement from learning and likely to become unemployed.

•    $1.7 million to improve the attractiveness of apprenticeships by means of better
     marketing arrangements through industry, increased travel and accommodation
     allowances and establishing a new Apprenticeship Hotline.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1-4
DEPARTMENTAL OUTPUTS
The Department of Employment and Training realises its vision of Queenslanders excelling
in learning, skilling and work for personal, community and economic prosperity through
delivery of the following outputs:
• Employment Initiatives
• Vocational Education and Training Services.

The strategic intent of the department is Skilling Queenslanders for employment and building
the social and economic capacity of communities.

Following a comprehensive review of Queensland’s vocational education and training
system, which identified major skills deficits in the Queensland labour market including an
urgent shortage of trades skills and an underqualified associate professional workforce, the
Government released the Queensland Skills Plan in March 2006.

The Queensland Skills Plan sets out the State Government’s strategy for achieving the goal of
acquiring highly educated professionals and associate professionals, tradespeople of the
highest standard and managers who are equipped to lead enterprises to success. The plan
outlines both a fundamental shift in the way our training system operates and a significant
reform to TAFE Queensland.

Departmental outputs contribute significantly to the achievement of the Government’s
outcomes in relation to building a strong diversified economy and a community of well-skilled
and knowledgeable people. Training and employment strategies and programs have a pivotal
role in achieving the following Government policy priorities:
• Growing a diverse economy and creating jobs, by:
      − helping to create additional jobs to break the unemployment cycle; and
      − skilling activities which contribute to diversifying and strengthening the economy by
          assisting value adding, productivity growth and the development of future growth
          industries.
• Realising the Smart State through education, skills and innovation, by:
      − implementing education and training reforms and upgrading education and training
          facilities; and
      − improving workforce skills for current and future needs and focussing on lifelong
          learning.

Departmental outputs also have a support role in the Government outcome improving health
care and strengthening services to the community. Skilling activities can lead to the
development and implementation of strategies that underpin services to the community and
support all Queenslanders, including people with a disability, their families and carers. In
addition, Aboriginal people and Torres Strait Islanders are a priority population group for
both outputs. Training and employment strategies and programs are developed in partnership
with Indigenous people and aim to improve economic, social and community well being.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1-5
OUTPUT LINKAGES WITH GOVERNMENT OUTCOMES
                                                                   Government Outcome/
Output Name
                                                                   Strategic Governance
Employment Initiatives                                             •     A strong diversified economy
                                                                   •     A community of well-skilled and
                                                                         knowledgeable people
                                                                   •     A fair, socially cohesive and culturally vibrant
                                                                         society.
Vocational Education and Training Services                         •     A strong diversified economy
                                                                   •     A community of well-skilled and
                                                                         knowledgeable people.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training             1-6
DEPARTMENTAL FINANCIAL SUMMARY1
                                                                                  2005-06           2005-06          2006-07
                                                                                  Budget         Est. Actual        Estimate
                                                                                    $’000              $’000           $’000

CONTROLLED
 Income
    Output revenue                                                                 597,035            613,661        640,291
    Own source revenue                                                             314,774            328,763        338,409
 Total income                                                                      911,809            942,424        978,700

  Total expenses                                                                   911,722            938,724        978,700

  Operating Surplus/ (Deficit)                                                            87                3,700          ..

NET ASSETS                                                                      1,052,592          1,012,233        1,058,150

ADMINISTERED
 Revenue
    Administered item revenue                                                        1,414              1,443              ..
    Other administered revenue                                                      28,900             28,900         28,900
 Total revenue                                                                      30,314             30,343         28,900

  Expenses
     Transfers of administered revenue to Government                                28,900             28,900         28,900
     Administered expenses                                                           1,414              1,443              ..
  Total expenses                                                                    30,314             30,343         28,900

Note:
1. Explanations of variances are provided in the Explanation of Variances in the Financial Statements section and Output
     Income Statements.




APPROPRIATIONS1
                                                                                                      2005-06        2006-07
                                                                                                      Budget        Estimate
                                                                                                        $’000          $’000

Controlled Items
  Departmental Outputs                                                                                597,035        640,291
  Equity Adjustment                                                                                    12,899         45,917

Administered Items                                                                                          1,414          ..

Vote Total                                                                                            611,348        686,208

Note:
1. A reconciliation of appropriations to the Financial Statements follows the Financial Statements.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                 1-7
STAFFING
                                                                                                  2005-06             2006-07
Output/Activity                                                                  Notes
                                                                                               Est. Actual           Estimate
                                                                                  1,2,3
OUTPUTS
 Employment Initiatives                                                                4                 133               162
 Vocational Education and Training Services                                            5               6,940             7,100

Total Outputs                                                                                          7,073             7,262

Total                                                                                                  7,073             7,262

Notes:
1. Full-Time Equivalents (FTEs) have been averaged for the financial year. This is to avoid anomalous point-in-time results
   due to the seasonal nature of staffing requirements at some TAFE Institutes.
2. Corporate FTEs are allocated across the outputs to which they relate.
3. FTEs exclude staff on leave without pay.
4. The increase in the estimated FTEs for 2006-07 for the Employment Initiatives output is primarily due to additional staff for
   Get Set for Work, Parents and Carers, Experience Pays Awareness Campaign, Indigenous Employment and Training
   Support and implementation of the Queensland Skills Plan.
5. The increase in estimated FTEs for 2006-07 for the Vocational Education and Training Services output is primarily due to
   an increase in activity in high priority areas such as trade training at some TAFE institutes, the increase in pilot sites for
   Skilling Solutions Queensland and increased estimated revenues by some Institutes for fee for service activities and
   international students.




2006-07 OUTPUT SUMMARY1
                                                                                 Sources of Revenue
                                        Total Cost             Output               User            C’wealth           Other
Output
                                             $’000            Revenue            Charges            Revenue          Revenue
                                                                 $’000             $’000               $’000            $’000

Employment Initiatives                      101,110            100,691                  331                    ..            88

Vocational Education and                    877,590            539,600             140,852            191,123            6,015
Training Services


Total                                       978,700            640,291             141,183            191,123            6,103

Note:
1. Explanations of variances are provided in the Financial Statements section and Output Income statements.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                   1-8
                                         OUTPUT PERFORMANCE


OUTPUT:                                  Employment Initiatives

RELATED OUTCOME:                         A strong diversified economy

DESCRIPTION
Implemented in October 1998, the Breaking the Unemployment Cycle initiative comprises a
range of employment programs aimed at alleviating skills shortages and improving the
employability of the least competitive jobseekers. Funded on a triennial basis as part of the
successive election commitments to reduce unemployment, the initiative has a current
investment of up to $284.7 million over three years, including up to $15 million for the
Worker Assistance Program. This initiative, which concludes at the end of the 2006-07
financial year, has been highly successful having achieved its target of 100,000 jobs, more
than 12 months ahead of schedule.

Despite Queensland’s strong economic growth and low unemployment there is still an
ongoing need for employment programs to maximise opportunities for the most
disadvantaged to participate in the workforce. This focus remains vital if the effects of an
ageing society and emerging labour shortages are to be alleviated.

In 2006-07 transitioning to a new labour market response, Skilling Queenslanders for Work,
will commence. Skilling Queenslanders for Work will retain many components of the
Breaking the Unemployment Cycle initiative combined with new assistance measures and the
ability to customise and package assistance to suit the specific needs of individuals. Some
programs however will be phased out to enable resources to better assist the most
disadvantaged jobseekers and the underemployed.

The response will continue to target assistance to the long-term unemployed, Aboriginal
people and Torres Strait Islanders, people from non-English speaking backgrounds, people
with a disability, parents and carers and mature age jobseekers. The commitment to young
people who are early school leavers or are at risk of leaving and a continuing rapid response
capacity to assist workers displaced as a result of large-scale retrenchments is maintained.
Assistance will also be targeted at jobseekers in rural and remote areas. Underemployed
jobseekers who are working 20 hours or less a week and are not able to secure full-time work
because they do not have the necessary skills, may now also qualify for assistance.

REVIEW OF OUTPUT PERFORMANCE

Recent Achievements

As at 31 March 2006
•    Approved $30.6 million under the Community Jobs Plan to assist 6,350 long-term
     unemployed, mature age and other disadvantaged jobseekers with targeted job
     placements, job search assistance and training.


2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1-9
•    Commenced eight Community Jobs Plan pilots in six Queensland regions at a total
     approved cost of $3 million. These pilots will integrate a range of existing employment
     assistance measures with nationally recognised training to meet the needs of specific
     groups, individuals and locations.

•    Committed $1.8 million for the Prisoners Post Release Program to assist 2,100 offenders
     prior to and following release, to achieve work readiness and obtain employment.
     Additional funding has been approved to undertake an evaluation of the program
     commencing this financial year.

•    Approved 22 projects across the State to assist 1,146 unemployed parents and carers
     obtain work. Through the Back to Work: Parents and Carers Program, assistance is
     customised to suit individual needs and may include the provision of work experience,
     nationally recognised training, job search assistance and a contribution towards childcare,
     transport and work-related clothing costs. A wage subsidy is also available to eligible
     employers who employ a participant from the program.

•    Invested $12.7 million to support the education and training reforms for 15-17 year olds
     by providing employment pathway options. The department:
      − approved $4.8 million to eligible public sector employers as well as private sector
          employers in identified rural and remote areas through the Youth Training Incentive
          Program. This resulted in 1,505 school-based apprenticeship and traineeship places
          for young people undertaking senior secondary education; and
      − committed $7.9 million for the delivery of the Get Set for Work program and to
          increase places available in 2006 to 1,619. Get Set for Work provides employment
          preparation for 15-17 year olds who are either early school leavers or otherwise at
          risk of disengagement from learning and likely to become unemployed.

•    Allocated 2,412 additional traineeship places through the First Start program to support
     entry-level training for young and disadvantaged jobseekers with little or no work
     experience. A budget of $29.6 million provided subsidies to Queensland public sector
     agencies and not-for-profit community organisations to employ trainees. A further $6.5
     million was allocated for the continued employment of public sector apprentices in skills
     shortage occupations.

•    Invested $8.4 million to create an additional 4,218 apprenticeship places in skills shortage
     occupations and industries through the provision of incentive payments to eligible private
     sector employers through the Strategic Employment Development Program.

•    Provided 1,509 apprenticeship opportunities through the Queensland Government
     Building and Construction Contracts Structured Training Policy (the “10% Training
     Policy”).

•    Created 1,531 additional apprenticeship and traineeship places, 267 more than the
     previous year, by leveraging up to $7.6 million through the increased training levy,
     collected through the Building and Construction Industry (Portable Long Service Leave)
     Authority.



2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 10
•    Provided $0.4 million through the Worker Assistance Program for training, job
     preparation, relocation and wage subsidy assistance for 265 workers displaced primarily
     through major industry restructuring activities.

•    Initiated the development of a strategic policy framework to deliver employment
     assistance and training. The Queensland Indigenous Employment and Training Strategy
     will be finalised in 2006-07, incorporating priorities identified in the Queensland Skills
     Plan.

•    Approved $2.1 million to continue to employ Indigenous Employment and Training
     Managers and Indigenous Employment and Training Support Officers. These initiatives
     provided culturally appropriate mentoring and support services to 1,010 Aboriginal and
     Torres Strait Islander apprentices, trainees and vocational students, and played a key role
     in the coordination and implementation of regional employment and training plans.

•    Delivered cultural awareness training to 757 public sector employees across 12
     government agencies through the services of the Wal-Meta (learn and grow), the
     Aboriginal and Torres Strait Islander Public Sector Employment Development Unit. The
     unit also delivered the following career advancement training to Indigenous public sector
     employees:
      − 33 of the 38 participants who commenced the Advancement Program in 2005
           completed the program, with 15 continuing their studies for a Diploma in either
           Government or Frontline Management;
       − 35 participants commenced the Leadership Program;
       − 20 participants commenced the Indigenous Employment Training Support Officers
           Program; and
       − 15 participants have enrolled in the Remote Community Councils Training Program.

•    Wal-Meta Recruitment Services assisted 49 Aboriginal people and Torres Strait Islanders
     to obtain employment in the Queensland public sector. The majority of these positions
     were at the trainee to AO3 level however four were placed into positions at the AO6 to
     AO8 levels. These positions were from entry to middle administrative levels.

•    Released a Cyclone Larry Employment Assistance Package to cost up to $18.6 million to
     provide employment and training support to workers in the affected area.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 11
Future Developments
In 2006-07, employment programs will undergo a transition from the Breaking the
Unemployment Cycle initiative to a new labour market response Skilling Queenslanders for
Work.

Key Transition Activities for 2006-07
•    Apply the learnings from the eight Community Jobs Plan pilots to develop more flexible
     and integrated State-wide delivery approaches that are better able to respond to the
     individual needs of jobseekers by customising employment and training assistance
     measures.

•    Develop and implement six pilot employment and training projects to assist
     underemployed individuals gain the necessary skills to access increased work hours or
     find more sustainable employment. The pilots will form the basis of assistance measures
     for underemployed workers under Skilling Queenslanders for Work.

•    Expand the number of Indigenous Employment and Training Support Officers (IETSOs)
     from 20 to a minimum of 40, to improve the retention and completion rates of Aboriginal
     and Torres Strait Islander apprentices, trainees and vocational students. This expansion
     will enable more people to access culturally appropriate mentoring and support services.
     Indigenous Employment and Training Managers (IETMs) will also increase from six to a
     minimum of 12 to improve the capacity to coordinate and implement regional
     employment and training plans.

•    Fund 1,100 First Start traineeships at a cost of up to $22.8 million. First Start will provide
     subsidies to public sector agencies to employ disadvantaged jobseekers as trainees. The
     First Start program will, in future, have a greater focus on disadvantaged groups and
     regional Queensland under the Skilling Queenslanders for Work initiative. A further $3.6
     million will be allocated for the final year of the employment of public sector apprentices
     in skill shortage occupations.

Other Key Activities for 2006-07
•    Commit $27.1 million in the Community Jobs Plan program to support 6,020 long-term
     unemployed, mature age and other disadvantaged jobseekers with targeted job
     placements, job search assistance and training.

•    Allocate $1.9 million to the Prisoner Post Release Program to assist 2,100 offenders prior
     to, and following release, to achieve work readiness and gain sustainable employment.

•    Provide customised assistance, which may include work experience, nationally
     recognised training, job search, a contribution to childcare, transport and work-related
     clothing costs to 1,000 unemployed parents and carers. The Back to Work: Parents and
     Carers Program also makes a wage subsidy available to employers who employ a
     participant from the program.

•    Continue to support employment and vocational skilling options for young people in the
     new compulsory participation phase of education and training by:


2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 12
      −     allocating $7.1 million for employer incentives to increase school-based
            apprenticeship and traineeship opportunities under the Education and Training
            Reforms Pathways Program – Youth Training Incentive. This will provide 2,100
            school-based apprenticeship and traineeship places with Queensland public sector
            agencies, including local government authorities, and with private sector employers
            in rural and remote areas and through additional opportunities in skill shortage
            trades; and
      −     making employment skills development programs available to 15-17 year olds who
            have left school before completing Year 12 or are at risk of leaving without
            engaging in further education, training or employment. Fund $9.8 million for 2,230
            places in the Education and Training Reforms Pathways Program – Get Set for
            Work and a recognition and registration process will be implemented for programs
            provided through non-departmental funds.

•    Continue to provide assistance through the Worker Assistance Program for career
     planning advice, skills recognition, nationally recognised training, relocation and wage
     subsidy assistance for workers adversely affected by large-scale retrenchments arising
     from firm closures or industry restructuring.

•    Create up to 1,200 training opportunities through the Queensland Government Building
     and Construction Contracts Structured Training Policy (the “10% Training Policy”).

•    Enable up to 2,000 additional apprenticeship and traineeship places to be employed from
     funds leveraged through the Building and Construction Industry Training Fund, which
     will also support up-skilling, cross-skilling, research and development within the building
     and construction industry.

•    Allocate $2 million to implement the Experience Pays Awareness Strategy to raise
     awareness and encourage the adoption of age-friendly recruitment and workplace
     management practices. It will also promote best practices in the recruitment and retention
     of older workers. The strategy will also link eligible mature age people with information
     and referral services.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 13
                                               OUTPUT STATEMENT
Output: Employment Initiatives

                                                                                 2005-06            2005-06            2006-07
Measures                                                           Notes
                                                                              Target/Est.        Est. Actual        Target/Est.
Quantity
No. of employment opportunities created
through:
• Provision of assistance to the long-term                               1            8,420                 8,650        8,120
    unemployed and disadvantaged jobseekers
• No of people assisted through Back to                                               1,000                 1,146        1,000
    Work: Parents and Carers Program
• Provision of assistance to Indigenous                                  2            1,000                 1,010        2,000
    apprentices, trainees and vocational
    students
• Provision of subsidies under the Strategic                             3            1,500                 5,100        3,150
    Employment Development Program
• Provision of subsidies to employ additional
    apprentices and trainees in the public sector
    (First Start):
    - Trainees                                                           4            2,400                 2,412        1,100
    - Apprentices                                                                       322                   322          322
• Provision of assistance under the Education                            5            3,200                 3,200        4,330
    and Training Reforms Pathways Program
• Building and Construction Industry Training                            6            1,225                 2,300        2,000
    Fund
• Number of individuals assisted through the                             7               N/A                 265           N/A
    Worker Assistance Program
Quality
People who gain further employment and                                   8         50-55%                    63%       60-65%
training outcomes upon completion of the
Community Jobs Plan

People who gain further employment outcomes                                        70-75%                    90%       75-80%
under the Public Sector Apprentice/Trainee
(First Start) program

Location
Placements delivered outside South East                                            35-45%                    40%       35-45%
Queensland

State Contribution ($’000)                                                           98,388            99,300          100,691
Other Revenue ($’000)                                                                   491               715              419
Total Cost ($’000)                                                                   98,859           100,015          101,110
Notes:
1. 2005-06 figures include the Youth Justice Service. In 2006-07 this activity is captured under Education and Training
   Reforms for the Future which more accurately reflects the age cohort of the participants.
2. Reflects the expansion of the Indigenous Employment and Training Support program from 1 July 2006.
3. Overachievement is due to Strategic Employment Development Program being a demand driven program that has
   exceeded expectations. This program will cease from 30 June 2006 with payments finishing in December 2006.
4. A decreased number of positions will be offered to public sector agencies in 2006-07. Traineeships in future years will be
   targeted towards disadvantaged groups and regional Queensland under Skilling Queenslanders for Work.
5. The increase in 2006-07 is in line with the Government’s commitment to expand this program.
6. The 2005-06 Target Estimate was increased from 1,225 to 2,300 additional apprentices and trainees as a result of an
   increase in the Building and Construction Industry Training Fund levy effective 1 July 2005.
7. As the demand for the Worker Assistance Program cannot be predicted, it is not appropriate to set targets.
8. Under the Breaking the Unemployment Cycle initiative the Community Employment Programs are known collectively as
   Community Jobs Plan.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                  1 - 14
Output Income Statement – Employment Initiatives
                                                                                       2005-06         2005-06         2006-07
                                                                        Notes          Budget          Est. Act.      Estimate
                                                                                         $’000            $’000           ’000

Income
  Output revenue                                                             1,6         98,388             99,300     100,691
  User charges                                                                              430                331         331
  Grants and other contributions                                             2,7             25                314          12
  Other Revenue                                                                              36                 70          76
  Gains on sale/revaluation of property, plant and                                            ..                 ..          ..
  equipment and investments
Total income                                                                             98,879         100,015        101,110

Expenses
 Employee expenses                                                          3,8          10,142             10,381      12,276
 Supplies and services                                                      4,9           4,771              5,157       7,757
 Grants and subsidies                                                      5,10          83,785             84,118      80,719
 Depreciation and amortisation                                                              150                354         354
 Finance/borrowing costs                                                                      3                  ..          ..
 Other expenses                                                                               8                  5           4
 Losses on sale/revaluation of property, plant and                                            ..                 ..          ..
 equipment and investments
Total expenses                                                                           98,859         100,015        101,110

OPERATING SURPLUS/ (DEFICIT)                                                                  20                 ..           ..


Notes:
Significant variances between the 2005-06 Budget and the 2005-06 Estimated Actual:
1. The increase in output revenue due to the recognition of revenue deferred from 2004-05.
2. Increase due to contribution received from Department of Housing for Community Renewal Projects and Government
    Contributions for traineeship subsidies.
3. Increase due to the employment of additional Indigenous Employment and Training Support officers in regional areas.
4. Increase due to the impact of changes in the asset recognition thresholds following the adoption of Australian equivalents
    to International Financial Reporting Standards (AeIFRS) and to reflect an increase due to changes to Government
    Accounting Policy on Asset Thresholds.
5. Increase mainly due to additional funding for the Community Jobs Plan, Prisoners Post Release Program, the Strategic
    Employment Development Program and the Cyclone Larry Employment Assistance Package (CLEAP).
Significant variances between the 2005-06 Budget and the 2006-07 Estimate:
6. Increase mainly due to new funding of approximately $2 million for the Experience Pays Awareness Initiative under the
    Queensland Skills Plan.
7. Reduction in grants from Department of Housing for Community Renewal Projects and Government Contributions for
    traineeship subsidies.
8. Increase due to the impact of the proposed 2006 Enterprise Bargaining Agreement and additional staff for Get Set for
    Work, Parents and Carers, Experience Pays Awareness Campaign, Indigenous Employment and Training Support and
    implementation of the Queensland Skills Plan.
9. Impact of changes in the asset recognition thresholds following the adoption of Australian equivalents to International
    Financial Reporting Standards (AeIFRS). Additional expense of $1.1 million relates to the implementation of the
    Queensland Skills Plan in 2006-07.
10. Reduction of grant funding in Employment Support Programs such as the First Start program for trainees and 300
    apprenticeships. Additional $0.81 million relates to the Queensland Skills Plan.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                 1 - 15
                                         OUTPUT PERFORMANCE


OUTPUT:                                  Vocational Education and Training Services

RELATED OUTCOME:                         A strong diversified economy

DESCRIPTION
Queensland’s labour market has fundamentally changed. Although some changes may be
linked to cyclical patterns in worker demands for certain industries, other changes are more
permanent reflecting likely trends in the labour market for decades to come. This new work
environment requires a fresh approach to skills development to meet the current and future
needs of the labour market.

Increasing the skills and qualifications of Queensland’s workforce is crucial to economic
growth, social development and individual and community prosperity. Today’s labour market
demands that workers be more highly skilled than ever and qualifications are a key factor in
determining an individual’s chance of obtaining employment.

Launched in March 2006, the Queensland Skills Plan outlines a policy framework that will
better match the supply of skilled labour to industry’s needs and the economy’s demands. It
sets out a range of actions the Queensland Government will take to implement these policies.

This new framework has four key elements:
• a training system that works for Queensland
• training that works for industry and employers
• training that works for the trades
• training that works for individuals.

The department will continue to partner with community, industry, business and all levels of
government to design and deliver training programs and initiatives which are high quality and
which achieve maximum value for the Government’s investment in skills development.


REVIEW OF OUTPUT PERFORMANCE

Recent Achievements
Last year, the Queensland Government conducted a comprehensive review of Queensland’s
vocational education and training system. This review identified two major deficits in
Queensland’s labour market:
• an urgent shortage of trade skills
• an underqualified associate professional workforce.

Subsequently, the department has announced a major package of reforms that will ensure our
training system gives young Queenslanders the skills that industries need and provides
existing workers with opportunities to update their skills and improve their productivity and
incomes.

2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 16
From 1 July 2004 Government introduced the SmartVET Strategy comprising a range of
initiatives which ensure vocational education and training increases workforce productivity
and participation. In 2005-06 Government has continued its commitment to SmartVET in the
lead up to integration of the successful pilots into the Queensland Skills Plan for 2006-07.

SmartVET Achievements as at 31 March 2006
•    Allocated $4 million to the innovative new customised face-to-face training and career
     information service, Skilling Solutions Queensland, to consolidate the existing pilot
     operations and expand the pilot service to regional locations in Rockhampton, Mackay
     and Townsville in late 2005-06.

•    Created a total of 35 contracts under the Industry Training Partnership strategy targeting a
     total of 2,596 places across priority industries. This is a commitment of $5.9 million for
     industries such as biotechnology, forestry and timber, food processing, seafood, small
     business, tourism, information and communication technology, aviation, sport and
     recreation and manufacturing.

•    Allocated $1.3 million to provide 119 cadetship places. The department has approved
     four cadetship pilot projects, including a new cadetship to boost skills in the energy
     industry.

•    Funded 18 accelerated apprenticeship pilot projects with a commitment of $6 million to
     provide opportunities for 649 participants and to create 443 apprenticeship places. Since
     inception of the program, 239 students have commenced training under this initiative.

•    Provided a further $2.2 million for the Mining Industry Skills Centre in partnership with
     industry to further establish its capacity to lead the skills development agenda in the
     mining industry. An additional $3.2 million has been provided to purchase simulator
     equipment for specialist training in the mining industry.

•    Recognised the existing skills of 2,524 Queenslanders. Contracts to the value of
     $3.2 million are in place in Recognition of Prior Learning specific programs for 2005-06.

Other Achievements as at 31 March 2006
•    Allocated $121.1 million to the User Choice program to address apprenticeship and
     traineeship training in priority industry areas, particularly the traditional trades and
     improved training provision for thin market qualification.

•    Invested $4.8 million to support the Government’s Queensland Takes Off initiative by
     funding training in Queensland’s aviation industry sector. This included $1.5 million in
     funding to Aviation Australia to ensure continued success of aviation initiatives including
     the Queensland Aerospace Industry Development Plan.

•    Improved TAFE training facilities by investing $29 million across the State on major
     infrastructure projects. Works are nearing completion on a new building in Toowoomba,
     on the consolidation of facilities at Hervey Bay campus, and the provision of new
     facilities at Biloela and Yeppoon.



2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 17
•    Invested $30 million to acquire a site and commence capital works to establish the
     southside campus of the Trade and Technician Skills Institute at Acacia Ridge. This
     Institute is a key component of the Queensland Skills Plan for working with industry to
     ensure Queensland has a highly skilled trades workforce.

•    Commenced the $230 million construction phase of the Southbank Education and
     Training Precinct, the State’s first Public Private Partnership project. Construction will be
     ongoing until mid 2008.

•    Provided $362 million in Direct Grant funding for TAFE Institutes and the Australian
     Agricultural College Corporation to support the delivery of State, regional and local
     priority training and infrastructure.

•    Invested $5.8 million of the $7.8 million provided over two years to support the
     amalgamation and improvements in information technology capabilities of the Australian
     Agricultural College Corporation.

•    Injected $64 million in training and skills development for the manufacturing industry. As
     at 31 March 2006, 5,720 new apprentices and trainees had commenced training under the
     Manufacturing Industry Skilling Initiative.

•    Continued growth in vocational education and training export revenue through
     international business, particularly by full fee paying international students and offshore
     projects. TAFE Queensland’s international revenue was $16.4 million for 2005-06, an
     increase of $1.8 million or 12% on export revenue for 2004-05.

•    Concluded negotiations with the Australian Government on the 2005-08
     Commonwealth-State Agreement for Skilling Australia’s Workforce, securing
     Commonwealth funding to assist the delivery of training services in Queensland to 31
     December 2008.

•    Committed $6.7 million to the Training in Communities program to fund 119 projects to
     assist 5,663 people access a range of accredited competencies and qualifications to
     increase their competitiveness in the labour market, improve their ability to participate in
     the community or undertake further education and training.

•    Led the integration of the vocational education and training system and assessment
     requirements associated with individuals obtaining an occupational licence in ‘load
     shifting’ and the use of ‘industrial equipment’. The implementation of this initiative, in
     partnership with the Department of Industrial Relations, commenced on 1 January 2006
     with full transition to be achieved by 30 June 2007.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 18
Future Developments
In 2006-07, Government will commence the implementation of the Queensland Skills Plan
which comprises a range of fundamental reforms to the State’s training system and delivers
on the Queensland Government’s commitment to create one of the most flexible, modern
and innovative education and training systems in Australia.

Over the next four years, around $801 million in recurrent expenditure will be invested to
implement vocational education and training reforms (including an estimated $542 million in
new recurrent funding), with a total capital commitment exceeding $300 million over six
years.

Key Queensland Skills Plan activities for 2006-07

A Training System that works for Queensland

•    Allocate a total capital commitment exceeding $300 million over six years to support
     initiatives outlined within the Queensland Skills Plan. New government funding,
     complemented by funds from other sources, will support a range of projects including:
      − commencement of a five year $24.6 million strategy to upgrade and modernise
           information and communication technology (ICT) infrastructure and streamline the
           department’s information management systems to improve vocational education and
           training management;
      − continuation of a five year $135.1 million initiative to establish the State-wide Trade
           and Technician Skills Institute to lead product development and training delivery in
           the key areas of automotive, building and construction, manufacturing, engineering
           and electrical. This Institute will be establishing physical presences at Acacia Ridge
           and Eagle Farm in Brisbane;
      − commencement of a five year $80.2 million initiative to establish specialist trade
           centres in the Central Queensland and Townsville/Thuringowa regions. This
           investment also includes the modernisation of some existing facilities; and
      − commencement of a five year $25.4 million modernisation program of facilities on
           the Sunshine Coast, including trade training areas at Nambour and addressing key
           growth areas at Mooloolaba.

•    Establish a dedicated TAFE Queensland Product Services unit which will support quality
     processes, collaboration across the TAFE network, individual customisation, appropriate
     packaging and flexibility.

•    Reorganise TAFE training delivery across Queensland from 1 July 2006 to improve
     collaboration, efficiency and outcomes for students. The non-trade segments of the
     Yeronga, Moreton and Logan Institutes of TAFE will be amalgamated. The Open
     Learning Institute will combine with the Brisbane North Institute of TAFE. Southbank
     Institute of TAFE will become Southbank Institute of Technology and will focus on
     technological and high level skills as well as associate degrees, university pathways and
     articulation arrangements.

•    Establish TAFE lead institutes with a clear mandate for leading product development and
     coordination across the State in designated fields. Lead institutes will become the primary
     point of contact for industry in relation to TAFE training and qualifications in their
     designated areas.
2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 19
•    Develop a comprehensive professional development strategy for TAFE Queensland staff
     to support and maintain a highly capable, responsive and flexible workforce. The strategy
     will focus on development of up-to-date skills for teaching, leading, learning and
     assessment, working with clients, business planning and development, and meeting
     compliance requirements of the vocational education and training system.

•    Implement an open third party access regime to TAFE facilities and infrastructure, where
     any spare capacity exists, and identify opportunities for collaborative partnerships with
     industry and private training providers to ensure broad access to the best possible training
     services. New relationships based on business partnerships between TAFE Institutes and
     private training providers will remove the barriers that limit private training providers
     from delivering priority industry apprenticeship training.

•    Reprioritise resources for service delivery and training in TAFE Institutes. In addition, the
     changing training environment and the need for greater employer and industry
     engagement create a strong case for a more commercial governance model for TAFE
     Institutes. More commercially structured TAFE Institutes, developed through a phased
     transition, will better handle complex business contracts and funding arrangements.

Training that works for industry and employers

•    Continue developing more robust structures and processes for engaging and partnering
     with industry, building on the success of the SmartVET strategy. Funding of $28 million
     will be allocated over the next four years for:
     − three further Centres of Excellence in manufacturing and engineering; building and
          construction; and energy. In 2006-07, funding of $6 million will be provided to
          establish these Centres to complement contributions provided by industry;
     − 23 additional Skills Formation Strategies. An investment of $2.9 million for 11
          Skills Formation Strategies, including four regional Strategies, will commence
          during 2006-07 based on identified priorities; and
     − investment of $1 million for the establishment of Industry Skills Alliances during
          2006-07. Five skills alliances will be established in areas of tourism and hospitality;
          community services and health; sport and recreation; automotive; and creative
          industries.

•    Establish a Small Business Solutions Unit within TAFE Queensland to deliver a range of
     training services and flexible delivery strategies for small business.

Training that works for the trades

•    Inject $8.5 million to create 4,250 additional trades training places. By 2010, this will
     increase to a total of 17,000 extra places each year.

•    Offer 40 Technology Cadetships through the Trade and Technician Skills Institute. These
     cadetship will deliver a Certificate IV in Technology through one year of full-time study
     followed by one year of work-based training.



2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 20
•    Allocate $1.7 million to improve the attractiveness of apprenticeships including by means
     of better marketing arrangements through industry, increased travel and accommodation
     allowances for apprentices, establishing a new Apprenticeship Hotline to provide
     information on apprenticeships to stakeholders and developing strategies to help reduce
     bullying and harassment of apprentices in the workplace.

•    Introduce a new concept of expected durations to facilitate early completion of
     apprenticeships. Commencing from January 2007 this will help ensure that apprentices,
     once competent, are sooner able to help address the skills shortages in many of the trades.

•    Establish a Skills Assessment Service to provide advice on assessment practices, develop
     consistency and improve stakeholder confidence in competency based assessment
     arrangements which underpin the Queensland vocational education and training system.
     This service will include a dispute resolution capability to resolve disputed assessments as
     they relate to apprenticeship progression and completion.

Training that works for individuals

•    Allocate $119 million over four years to fund an additional 14,000 higher-level, associate
     professional and professional worker training places in each year by 2010. In 2006-07,
     3,500 training places will be made available with a commitment of $7.4 million.

•    Invest an additional $12.3 million in Skilling Solutions Queensland to continue existing
     operations and to expand this innovative and customised face-to-face service to 10
     additional centres across Queensland. This investment will give Queenslanders across the
     State unprecedented access to information on training and career pathways, a vital step in
     providing a skilled workforce to maintain Queensland’s growing economy.

•    Develop a new Skilling Action Plan to improve education and employment outcomes for
     Queenslanders with a disability.

•    Implement strategies including the new Skills First program to offer more customised
     services to provide for the diverse needs of clients of Queensland’s vocational education
     and training system. Skills First will streamline skills assessment processes and ensure
     assessment is practical, efficient and relevant, thereby enabling people to have their
     competencies properly evaluated in terms of achieving a qualification.

•    Allocate $7.2 million to support further increases in the use of Recognition of Prior
     Learning and credit transfer while maintaining assessment integrity and streamlining
     services for clients.

•    Engage with schools to introduce a range of initiatives designed to prepare young people
     for work and to provide more opportunity for young people to participate in a broader
     range of education and training options.

•    Engage with industry to ensure that employability skills, including workplace literacy and
     numeracy, are incorporated within all training programs.



2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 21
Other Future Key Activities for 2006-07

•    Commit $7.6 million to assist up to 4,470 individuals participate in a range of nationally
     recognised training competencies and qualifications. Training in Communities will
     transition into a specific Community Literacy Strategy with the remaining vocational
     education and training being integrated to support skills development through the Skilling
     Queenslanders for Work initiative.

•    Participate in national forums to implement the skills reform agenda agreed by the
     Council of Australian Governments in February 2006.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 22
                                               OUTPUT STATEMENT
Output: Vocational Education and Training Services
Measures                                                     Notes            2005-06              2005-06         2006-07
                                                                           Target/Est.          Est. Actual     Target/Est.
Quantity
Commencements for apprenticeships and
traineeships:
• Total                                                          1,2            50,000-               53,000-       58,000-
                                                                                 52,000                55,000        60,000
•   15-17 year olds                                                3            13,000-               16,000-       18,000-
                                                                                 14,000                17,000        19,000

% of traineeships completed                                        4            55-60%               55-60%        55-60%
% of apprenticeships completed                                     4            60-65%               60-65%        60-65%

Number of apprentices and trainees in                              5      New Measure                  78,800       78,800-
training                                                                                                             82,800

Total number of VET students:                                      6
• VET (All)                                                        7           265,000-              291,700       291,300-
                                                                                270,000                             297,300
•   Total TAFE                                                     8      New Measure                251,900       251,600-
                                                                                                                    256,600
•   Total Australian Agricultural College                          9      New Measure                   2,800   2,700-2,900
    Corporation
•   Higher-level training (Cert IV & above)                       10      New Measure                  60,800       61,400-
                                                                                                                     63,400
•   Mature age                                                    11      New Measure                  56,900       56,400-
                                                                                                                     58,400
•   15-17 year olds                                                3      New Measure                  35,900       35,300-
                                                                                                                     37,300

Number of VET enrolments:                                        12
• 15-17 year old VET student enrolments                        3,13             48,000-                48,200          N/A
                                                                                 50,000
•   Priority population group student                         13,14            216,000-              229,200           N/A
    enrolments (excluding 15-17 year olds)                                      225,000

Total annual hours curriculum to be                               12
delivered:
• VET (All)                                                        7          49M-50M                  52.9M           N/A
• TAFE (All excluding Priority Purchasing                         15          35M-36M                  36.4M           N/A
   Program)
• Agricultural Colleges (Direct Grant)                            16     0.58M-0.60M                   0.33M           N/A
• Priority Purchasing Program activity                            17     13.5M-14.0M                   15.9M           N/A
   (including User Choice and Strategic
   Purchasing)
• Priority Industry areas                                     18,19         30M-31M                    33.1M           N/A
• New and emerging industry areas                             19,20            8M-9M                    9.1M           N/A
• 15-17 year olds                                                 3        6.9M-7.3M                    7.2M           N/A
• Priority population group students                             14        28.5M-30M                   31.5M           N/A
   (excluding 15-17 year olds)

Total qualifications completed:                                    6
• VET (All)                                                        7      New Measure                  87,300       81,400-
                                                                                                                     87,400
•   Priority Industry areas                                       18      New Measure                  46,400       42,800-
                                                                                                                     46,800
•   New and emerging industry areas                               20      New Measure                   8,300   7,100-8,300

2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training             1 - 23
Output: Vocational Education and Training Services
Measures                                                     Notes            2005-06              2005-06            2006-07
                                                                           Target/Est.          Est. Actual        Target/Est.
Total competencies successfully completed:                     6,12
• VET (All)                                                    7,21      1.25M-1.30M                   1.5M        1.5M-1.7M
• 15-17 year olds                                              3,21          173,500-                214,800             N/A
                                                                              178,500
•   Priority population group students                        14,21          729,000-                874,700              N/A
    (excluding 15-17 year olds)                                               769,000
•   Total TAFE                                                     8      New Measure                  1.3M        1.2M-1.4M
•   Higher-level training (Cert IV and above)                     10      New Measure                325,400         329,000-
                                                                                                                      339,000
•   Priority industry areas                                       18      New Measure                923,700         926,900-
                                                                                                                      936,900
•   New and emerging industry areas                               20    New Measure                  182,500         182,100-
                                                                                                                      186,100

Employment/further study outcome:
• TAFE                                                            22                87%                     87%          87%

TAFE – non-government revenue ($)                                 23    New Measure                     136M            142M

Number of students provided with language,                        12
literacy and numeracy support:
• Adults (18yrs and over)                                                      17,300-                 19,700             N/A
                                                                                18,000
•   Youth (15-17 year olds)                                        3       3,200-3,300                  3,400             N/A

Revenue from industry funded training for                     12,24               43.8M                38.2M              N/A
TAFE institutes ($)

Number of full fee paying international                       12,25        3,500-4,500                  5,100             N/A
students

Queensland’s VET participation rate (to                           26              10.1%                10.5%           10.1%
achieve the national average VET
participation rate in the medium to long-
term)

Quality
Level of stakeholder satisfaction with VET
training services and products:
• Student Outcomes Survey                                         27           81%                          88%          88%
• Survey of Employer Views                                        28           82%                           N/A          N/A
     −   nationally recognised training                           28    New Measure                         71%          71%
     −   apprentices and trainees                                 28    New Measure                         81%          81%

Percentage of successfully completed                          12,29                 82%                81.4%              N/A
modules compared with all modules
assessed

Compliance of training organisations with
the Australian Quality Training Framework
(AQTF):
• Total number of registered training                             30    New Measure                     1,087           1,090
    organisations in Queensland
• Number of organisations approved for                            31                 100                    320           320
    registration as a registered training
    organisation

2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                1 - 24
Output: Vocational Education and Training Services
Measures                                                    Notes            2005-06              2005-06              2006-07
                                                                          Target/Est.          Est. Actual          Target/Est.
•    Number of qualifications approved for                       32              550                 1,960               1,960
     organisations upon achieving
     registration / renewal of registration
•    Number of qualifications approved to be                     32               2,000                1,840                2,000
     added to the scope of existing
     registered training organisations

Compliance with the provisions of
departmental training contracts:
• Number of training contracts audited                           33                 130                   135                   80
Location
Proportion of VET activity delivered in                          34                34%                36.2%                   34%
regional Queensland
Cost ($)
Cost per hour (Annual Hours Curriculum) for                      12
Government funded VET:
• VET (All)                                                       7               16.56                15.38                   N/A
• TAFE (All excluding Priority Purchasing                        15               14.68                13.02                   N/A
    Program funded activity)
• Agricultural Colleges (Direct Grant)                       16,35                24.66                43.29                   N/A
• Priority Purchasing Program activity (incl                                      11.11                 9.91                   N/A
    User Choice and Strategic Purchasing)

Average cost per competency successfully                         36
completed:
• VET (All)                                                        7   New Measure                        559                  586
• Total TAFE                                                       8   New Measure                        435                  447

Total Government funding ($’000):                              12
• TAFE (All)                                                37,38,             580,408              566,116              581,431
                                                               39
•    TAFE (All excluding Priority Purchasing                15,40              513,709              480,379                    N/A
     Program funds)
•    Agricultural Colleges (Direct Grant)                        16             14,303               14,303                    N/A
•    Priority Purchasing Program (including                      17            150,000              158,301                    N/A
     User Choice and Strategic Purchasing)

State Contribution ($’000)                                                     498,647              514,361              539,600
Other Revenue ($’000)                                                          314,283              328,048              337,990
Total Cost ($’000)                                                             812,863              838,709              877,590

Notes:
1. The 2005-06 Target/Estimate of apprenticeship and traineeship commencements has been exceeded due to accelerated
    growth in apprenticeship commencements which is expected to continue. Target Estimate commencement figures for
    2005-06 were based on expected trends in apprenticeship and traineeship activity.
2. The 2006-07 Target/Estimate of apprenticeship and traineeship commencements will factor in the additional apprenticeship
    training places per year as identified in the Queensland Skills Plan.
3. Measures specifically relating to 15-17 year olds reflect Government’s support for young people including through Education
    and Training Reforms for the Future (ETRF) initiatives.
4. Percentages of traineeships and apprenticeships completed are based on the number of potential completions in the period
    irrespective of commencement date.
5. New measure for 2006-07, which reflects an estimate of the number of apprentices and trainees in training as at June 2006.
6. The focus on total number of VET students, total qualifications completed and total competencies successfully completed is
    a more accurate reflection of increased skills acquisition, contribution to industry development and participation in vocational
    education and training than the previous focus on nominal hours of training (AHCs) delivered and/or funded.
7. VET (All) represents government-funded and fee for service vocational education and training programs delivered through
    public providers and government-funded programs through other providers.
8. New measure for 2006-07. Total TAFE refers to TAFE training activity funded through all sources. It includes training funded
    from Direct Grant and the Priority Purchasing Program and training funded from specific government funds as well as fee for
    service activity.
9. New measure for 2006-07. In mid-2005 the four Queensland agricultural colleges amalgamated into the Australian
2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                    1 - 25
      Agricultural College Corporation (AACC). Total AACC refers to agricultural college training activity funded through all
      sources. It includes training funded from Direct Grant and the Priority Purchasing Program and training funded from
      specific government funds and fee for service activity.
10.   New measure for 2006-07 which reflects Government’s commitment to increasing the number of Certificate IV and above
      training places to meet skills shortages in associate professional occupations.
11.   Mature age people are defined as persons aged 45 years and over.
12.   Discontinued measure from 2005-06 as the focus on total number of VET students, total qualifications completed and total
      competencies successfully completed is a more accurate reflection of increased skills acquisition, contribution to industry
      development and participation in vocational education and training than the previous focus on nominal hours of training
      (AHCs) delivered and/or funded.
13.   In relation to Number of VET enrolments, it should be noted that unique students may enrol in more than one course.
14.   Priority population groups are defined by the department as those marginalised from earning or learning and include
      women, Aboriginal people and Torres Strait Islanders, people with a disability, people from non-English speaking
      backgrounds and mature and mature age people. 15-17 year olds are separately reported.
15.   TAFE (All excluding Priority Purchasing Program) is TAFE delivered training funded from Direct Grant, as well as training
      funded through specific Australian Government funds and fee-for-service activities. The majority of this activity is generated
      from Direct Grant, including activity associated with TAFE’s social obligations.
16.   This reflects Direct Grant funds to the Australian Agricultural College Corporation to meet regional and industry priorities.
17.   Priority Purchasing Program activity includes training funded through User Choice (apprenticeship and traineeship training),
      preferred training supplier arrangements, adult and community based education arrangements, and Employment Initiatives
      training contracts delivered by TAFE, Australian Agricultural College Corporation and private providers.
18.   Priority industry areas are those experiencing skill shortages, traditional industries experiencing technological change and
      industries with the greatest potential to contribute to Queensland’s economy. Currently, these include aviation,
      biotechnology, building and construction, creative industries, environment, food processing, forest and timber, ICT,
      manufacturing and engineering, marine, meat processing, mining, rural, seafood, sport and recreation, sugar, tourism and
      hospitality, transport and logistics, community services and health, energy and small business.
19.   There may be enrolments that are counted in both ‘priority industry areas’ and ‘new and emerging industries’.
20.   New and emerging industry areas are based on occupations that are positively exposed to global market forces. These are
      the occupations most likely to experience growth in the foreseeable future and are therefore a better strategic measure of
      vocational education and training output performance in terms of contribution to economic outcomes. Currently, these
      include financial and business services, information technology content and software, and media production.
21.   Total competencies successfully completed reflect skills acquisition and outcomes from participation in training.
22.   Employment/Further study Outcomes (TAFE) identifies the number of TAFE students who completed a vocational
      education and training course in the previous calendar year, graduated with a qualification from the course and indicated
      that they were in either full-time or part-time employment/further study as at the end of May in the following calendar year,
      as measured by the NCVER Student Outcomes Survey.
23.   New measure for 2006-07 which captures the level of User Charges in TAFE and also highlights TAFE institutes’
      increasing contribution and responsiveness to industries skill requirements, and the effectiveness of new strategies to
      ensure Queensland employers and industries share responsibility for creating a skilled workforce.
24.   Revenue from industry funded training for TAFE institutes is revenue earned by TAFE institutes through the delivery of
      training for industry.
25.   The number of full fee paying international students is market driven and indicates the amount of public provider activity
      that earns direct export earnings.
26.   Queensland’s VET participation rate is the ratio of the number of 15-64 year olds who undertake any form of vocational
      education and training through the publicly funded vocational education and training system to the number of people in
      Queensland aged 15-64 years. Population figures are derived from the official Queensland Government population
      projections released by the Office of Economic and Statistical Research
27.   NCVER Student Outcomes Survey - the percentage of TAFE graduates satisfied with the overall quality of their training as
      measured on a 1 to 5 point scale.
28.   Employer satisfaction regarding vocational education and training is obtained from the biennial NCVER survey entitled
      Employers’ Use and Views of the VET System. The methodology for rating employer satisfaction has changed from that
      used in previous versions of this survey. The new methodology does not provide a single satisfaction rating. Instead,
      separate satisfaction ratings are provided for apprentices and trainees, nationally accredited training, unaccredited training
      and other categories. Consequently, a single 2005-06 estimated actual satisfaction rating can not be provided in the output
      statement. From 2006-07 onwards, two separate satisfaction ratings will be included in the output statement – one for
      apprentices and trainees and one for nationally accredited training. The new methodology is not comparable with that used
      previously and therefore any apparent lower ratings do not necessarily reflect a drop in performance.
29.   The ratio of students who pass assessment in an assessable unit of competency to all students who are assessed and
      pass, fail or withdraw from participation in the unit of competency.
30.   New measure for 2006-07, reflecting the total number of registered training organisations approved by the Queensland
      authority. The measure does not include those registered training organisations operating in Queensland under the
      principles of national recognition. The figures include information provided by the Queensland Studies Authority.
31.   Approved for registration includes organisations registered for the first time and those organisations where registration is
      renewed. The figures include information provided by the Queensland Studies Authority concerning schools which are
      registered or renewed. The measure does not include those registered training organisations operating in Queensland
      under the principles of national recognition. The targets were based on historical data and trends at the time. The actual
      uptake is market-driven.
32.   These measures are dependent upon market forces (i.e. applications received from training organisations). The figures
      include information provided by the Queensland Studies Authority concerning qualifications approved for schools delivering
      nationally recognised training.
33.   In 2005-06, Registered Training Organisations under User Choice arrangements typically received two funding contract
      allocations - ‘Continuing Students’ and ‘New Business Students’. From 2006-07 continuing and new business students will
      be managed through one contract allocation per RTO, significantly reducing the number of contracts to be audited. Auditing
      of this new contract will be based on a risk assessment and will often be conducted as part of audits of compliance with the
      Australian Quality Training Framework Standards. This change in approach will result in a reduction in the number of
      contract audits.
2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                     1 - 26
34. The percentage of total vocational education and training activity delivered outside South East Queensland is based on
    student residential postcodes. The 2006-07 target is based on ABS data indicating about 34% of Queenslanders aged 15-
    64 years live outside the southeast corner of the State. The department aims to ensure the percentage of vocational
    education and training activity delivered to regional Queensland is commensurate with the proportion of the 15-64 year old
    population living in this part of the State.
35. Increase in cost per hour due to establishment costs for the Australian Agricultural College Corporation, change in type of
    delivery and reduction in delivery hours.
36. New Cost measures introduced to ensure consistency with new Quantity measures.
37. Total Government funding TAFE (All) refers to funding provided for vocational education and training activity.
38. The decrease in funding from the 2005-06 target to the 2005-06 estimated actual is mainly due to a reduction in Direct
    Grant and own source revenue. The reduction is offset by an increase in TAFE user choice and Strategic Purchasing fund.
39. The increase from 2005-06 Estimated Actual to 2006-07 Target is mainly due to TAFE user choice funding and Direct
    Grant.
40. The decrease in total funding in 2005-06 Estimated Actual compared to 2005-06 Target is due to a reduction in Direct
    Grant.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                1 - 27
Output Income Statement – Vocational Education and Training Services
                                                                                       2005-06         2005-06       2006-07
                                                                        Notes          Budget          Est. Act.    Estimate
                                                                                         $’000            $’000        $’000

Income
  Output revenue                                                           1,8         498,647          514,361      539,600
  User charges                                                             2,9         134,446          131,475      140,852
  Grants and other contributions                                          3,10         178,215          193,350      195,730
  Other Revenue                                                              4           1,622            3,223        1,408
  Gains on sale/revaluation of property, plant and                                           ..               ..           ..
  equipment and investments
Total income                                                                           812,930          842,409      877,590

Expenses
 Employee expenses                                                        5,11         449,174          458,869      477,656
 Supplies and services                                                    6,12         254,944          271,829      280,455
 Grants and subsidies                                                     7,13          48,824           54,822       66,395
 Depreciation and amortisation                                               6          54,948           48,167       48,167
 Finance/borrowing costs                                                                   646              649          439
 Other expenses                                                                          4,327            4,373        4,478
 Losses on sale/revaluation of property, plant and                                           ..               ..           ..
 equipment and investments
Total expenses                                                                         812,863          838,709      877,590

OPERATING SURPLUS/ (DEFICIT)                                                                  67            3,700            ..


Notes:
Significant variances between the 2005-06 Budget and the 2005-06 Estimated Actual:
1. Increase due to the recognition of $15.5 million in revenue for projects deferred from 2004-05.
2. Reduction in fee for service activity within TAFE Network, including Industry Funded Training and International Student
    fees.
3. Increase in recurrent grant funding from Department of Education, Science and Training (DEST) and additional funding for
    the Indigenous Education Strategic Initiative Program (IESIP).
4. Increase mainly from the proceeds from sale of assets.
5. The increase is mainly due to an underestimation of employee costs in the 2005-06 Budget.
6. Increase in supplies and services due to the impact of changes in the asset recognition thresholds following the adoption of
    Australian equivalents to International Financial Reporting Standards (AeIFRS). This is offset by the corresponding
    reduction in depreciation and amortisation expense by approximately $6 million.
7. Increase mainly in payments to Centre of Excellence (Mining), Workplace Excellence, Mature Age Program and
    Community Training Partnerships.
Significant variances between the 2005-06 Budget and the 2006-07 Estimate:
8. Increase due to VET growth funding ($7.9 million), estimated Enterprise Bargaining supplementation ($11.4 million) and the
    Queensland Skills Plan ($24.3 million). The increase is offset by projects deferred from 2004-05 ($15.5 million).
9. Increase in user charges revenue of $9 million under the Queensland Skills Plan which is offset by a downward adjustment
    to other user charges revenue of $3 million.
10. Increase in funding for Workplace Excellence and Australian Government funding including recurrent grant funding and
    national projects.
11. Increase due to impact of the proposed 2006 Enterprise Bargaining Agreement and an increase in paternal leave
    allowance payments.
12. Increase is due to additional expenses of $23 million to implement the Queensland Skills Plan.
13. Increase in funding for VET in Schools, Centres of Excellence (Mining), Workplace Excellence, Community Training
    Partnerships, and Australians Working Together. Approximately $9 million relates to the Queensland Skills Plan.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                1 - 28
                                           ADMINISTERED ITEMS


DESCRIPTION
The Department of Employment and Training receives Capital Grants from the
Commonwealth Department of Employment, Science and Training which is allocated to
vocational education and training projects in accordance with an approved Strategic
Infrastructure Plan and an Annual Infrastructure Statement.

The Capital Grant ($28.9 million) in 2006-07 is remitted to the Consolidated Fund and is
returned to the department as output revenue.

Financial information relating to administered items is contained in the Income Statement on
page 1-37.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 29
                                         CAPITAL ACQUISITIONS

The department oversees the operations of 14 TAFE Institutes and delivers training from 99
separately owned and leased locations across the State. The department has a physical net
asset base of approximately $1.1 billion, including approximately 450 buildings.

The Queensland Government priorities outlined in the Queensland Skills Plan are supported
by the six year infrastructure program which will:
• provide a learning environment that is attractive to students, nurturing their interests and
    maximising their learning outcomes
• contribute infrastructure to the Smart State initiatives with an emphasis on development
    of a skilled trades workforce
• provide facilities that are adaptable and flexible to the constantly changing needs of
    industry
• invest significantly in information and communication technology infrastructure to
    generate more flexible student access, accelerated skills acquisition and greater resource
    sharing among public providers
• provide more jobs for Queenslanders by generating the equivalent of a year’s
    employment in building, construction, and information and communication technology
    industries for approximately 800 people
• ensure that facilities are planned and constructed in a manner that is environmentally
    sustainable, socially responsible and economically viable.

Through the Queensland Skills Plan, Government has committed to a six year infrastructure
reform package exceeding $300 million designed to enhance TAFE Queensland facilities
around the State. In 2006-07 this will include commencing:
• a six year, $274.4 million major capital works program, incorporating upgraded training
    equipment across the State
• a five year $24.6 million investment to upgrade and standardise the information and
    communication technology environment for TAFE Queensland, including a State-wide
    Learning Management System for students
• a two year, $4.1 million program to expand the Skilling Solutions Queensland within
    Queensland.

A total of $98.1 million will be invested in 2006-07 in property, plant and equipment to
support flexible training delivery, promote training to industry standards, and improve
accessibility to TAFE’s vocational education and training services.

Vocational Education and Training
The vocational education and training capital acquisition program continues to have four
primary elements:
• investment in information and communication technologies
• construction of new physical facilities
• refurbishment of existing physical facilities
• disposal of excess properties.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 30
Information and Communication Technology
Funding of $23.4 million1 will be invested in TAFE Queensland information and
communication technology infrastructure. This is primarily directed at improving the
capacity of TAFE Institutes to provide flexible training that responds to the service delivery
expectations of an increasingly e-literate society. This investment will provide improved
services and choice for regional and remote communities and greater accessibility for all
clients.

Construction of New Facilities
The department will invest $48.5 million2 in new facilities across the State. Continuing
investment in the establishment of the Acacia Ridge campus of the Trade and Technician
Skills Institute will continue, along with the commencement of planning and minor works for
specialist trade centres in Mackay and Townsville.

Facilities will continue to be developed at Coomera and Caboolture, and works will be
finalised at Biloela, Yeppoon, Hervey Bay and Toowoomba.

Refurbishment of Existing Facilities
A further $27.3 million3 will be invested in refurbishment activities, including continuing the
redevelopment of the Mt Gravatt campus and completing an upgrade at the Bundaberg
campus. Planning and minor works for the redevelopment of the Eagle Farm campus will
also commence.

Disposal of Excess Properties
In 2006-07 the department will continue to progress its property disposal program in both
metropolitan and regional areas, targeting property identified as excess to service delivery
requirements. More than $5 million is expected from the proceeds of property sales in
2006-07 and, when realised, will be re-invested in the TAFE infrastructure initiatives
contained in the Queensland Skills Plan.

The expense component of the program represents that part of the total vocational education
and training infrastructure program that is categorised for accounting purposes as an expense
item incurred in the current financial period.

Further information on the Capital Acquisitions program is contained in Budget Paper No. 3
(Capital Statement), which includes other items such as capital grants, and a breakdown of
major capital works projects.




1
  Includes an expense component of $9.9 million
2
  Includes an expense component of $2.4 million
3
  Includes an expense component of $3.3 million
2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 31
CAPITAL ACQUISITION STATEMENT
                                                                                       2005-06         2005-06         2006-07
                                                                         Notes         Budget          Est. Act.      Estimate
                                                                                         $’000            $’000          $’000

PROPERTY PLANT AND EQUIPMENT

Property Plant and Equipment
  Major Capital Works Construction                                             1         40,496           36,273        48,537
  Major Capital Works - Refurbishment                                          1         14,317           21,163        27,274
  Information and Communication Technology                                               15,000           15,178        25,804
  Minor Capital Works                                                          2           3,500           5,474         5,947
Less Expense Component                                                         3         (5,385)        (13,310)      (20,348)
Other acquisitions of property, plant and
equipment                                                                                  6,672             8,695      10,884

TOTAL PROPERTY PLANT AND EQUIPMENT                                                       74,600             73,473      98,098


OTHER CAPITAL ACQUISITIONS

Other Capital Acquisitions                                                                      ..               ..           ..

Other Items                                                                                     ..               ..           ..

TOTAL OTHER CAPITAL ACQUISITIONS                                                                ..               ..           ..

TOTAL CAPITAL ACQUISITIONS                                                               74,600             73,473      98,098


FUNDING SOURCES OF ACQUISITIONS

  Equity Adjustment                                                                      12,899             15,349     45,917
  Funding for depreciation and amortisation                                    4         55,098             48,521     48,521
  Borrowings                                                                                  ..                 ..          ..
  Proceeds of asset sales                                                                 7,520              4,720       5,550
  Other                                                                                   (917)              4,883     (1,890)

TOTAL FUNDING SOURCES                                                                    74,600             73,473      98,098


Notes:
1. The major changes from 2005-06 budget to 2005-06 estimated actual include deferral of $17.6 million associated with
   Coomera Project, and acquisition of a $23 million site at Acacia Ridge. The major changes from 2005-06 budget to the
   2006-07 budget are for the Queensland Skills Plan.
2. Increases in 2005-06 are due to additional minor works undertaken by TAFE Institutes. Increases in 2006-07 are a result of
   the investment in the Queensland Skills Plan.
3. Operating component increases are due to the change in asset recognition thresholds following the adoption of
   international financial accounting standards. The increase from 2005-06 budget to 2006-07 budget is due to (1) change in
   asset recognition thresholds and (2) additional activity under the Queensland Skills Plan.
4. Costs have fallen because of new accounting rules which reduce the number of assets that are depreciated.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                 1 - 32
                                     DEPARTMENTAL

                                               FINANCIAL

                                          STATEMENTS




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training   1 - 33
INCOME STATEMENT
                                                                                       2005-06         2005-06       2006-07
                                                                         Notes         Budget          Est. Act.    Estimate
                                                                                         $’000            $’000        $’000

Income
  Output revenue                                                         1,8,14        597,035          613,661      640,291
  User charges                                                           2,9,15        134,876          131,806      141,183
  Grants and other contributions                                           3,10        178,240          193,664      195,742
  Other revenue                                                            4,16          1,658            3,293        1,484
  Gains on sale/revaluation of property, plant and                                           ..               ..           ..
  equipment and investments
Total income                                                                           911,809          942,424      978,700

Expenses
 Employee expenses                                                     5,11,17         459,316          469,250      489,932
 Supplies and services                                                    6,18         262,294          276,986      288,212
 Grants and subsidies                                                  7,12,19         130,030          138,940      147,114
 Depreciation and amortisation                                              13          55,098           48,521       48,521
 Finance/borrowing costs                                                    20             649              649          439
 Other expenses                                                                          4,335            4,378        4,482
 Losses on sale/revaluation of property, plant and                                           ..               ..           ..
 equipment and investments
Total expenses                                                                         911,722          938,724      978,700

OPERATING SURPLUS / (DEFICIT)                                                                 87            3,700           ..




STATEMENT OF CHANGES IN EQUITY
                                                                                       2005-06         2005-06       2006-07
                                                                         Notes         Budget          Est. Act.    Estimate
                                                                                         $’000            $’000        $’000

Net effect of the adoption of a new accounting
standard                                                                                        ..      (23,336)            ..
Increase/ (decrease) in asset revaluation reserve                                               ..      (40,000)            ..
Net amount of all revenue and expense
adjustments direct to equity not disclosed above                                                ..             ..           ..

Net income recognised directly in equity                                                        ..      (63,336)            ..

Surplus/ (deficit) for the period                                                             87            3,700           ..

Total recognised income and expense for the
period                                                                                       87            3,700           ..
Equity injection/ (withdrawal)                                                           12,899           15,349      45,917
Equity adjustments (MoG Transfers)                                                            ..               ..          ..
Total movement in equity for period                                                      12,986         (44,287)      45,917




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training               1 - 34
BALANCE SHEET
                                                                                      2005-06          2005-06         2006-07
                                                                       Notes          Budget           Est. Act.      Estimate
                                                                                        $’000             $’000          $’000

CURRENT ASSETS
 Cash assets                                                            21,36           22,423              15,842       15,110
 Receivables                                                            22,37           22,959              30,622       30,622
 Other financial assets                                                                      ..                  ..           ..
 Inventories                                                                               830                 890          890
 Other                                                                  23,38            5,124               7,613        7,613

  Non-financial assets held for sale                                    24,39                  ..            9,911        9,911

Total current assets                                                                    51,336              64,878       64,146

NON-CURRENT ASSETS
 Receivables                                                                              288              288              288
 Other financial assets                                                                     ..               ..               ..
 Property, plant and equipment                                      25,40,51        1,072,823        1,015,944        1,060,883
 Intangibles                                                        26,41,52           34,026           39,894           38,982
 Other                                                                                      ..               ..               ..
Total non-current assets                                                            1,107,137        1,056,126        1,100,153

TOTAL ASSETS                                                                        1,158,473        1,121,004        1,164,299

CURRENT LIABILITIES
 Payables                                                              27,42            25,013           33,438         33,085
 Accrued employee benefits                                             28,43            43,699           46,180         46,180
 Interest-bearing liabilities and derivatives                       29,44,53             4,196            2,269            951
 Provisions                                                            30,45             6,831            9,825          9,825
 Other                                                                 31,46            18,662           15,436         15,436
Total current liabilities                                                               98,401          107,148        105,477

NON-CURRENT LIABILITIES
 Payables                                                                                     ..               290          290
 Accrued employee benefits                                                                  303                  ..           ..
 Interest-bearing liabilities and derivatives                       32,47,54              6,769                951            ..
 Provisions                                                                                 330                330          330
 Other                                                                                       78                 52           52
Total non-current liabilities                                                             7,480              1,623          672

TOTAL LIABILITIES                                                                     105,881           108,771        106,149

NET ASSETS (LIABILITIES)                                                            1,052,592        1,012,233        1,058,150

EQUITY
 Capital/Contributed equity                                         33,48,55           34,820            32,866         78,783
 Retained surplus/ (Accumulated deficit)                               34,49          760,240           743,023        743,023
 Reserves:
  - Asset revaluation reserve                                           35,50         257,532           236,344        236,344
  - Other (specify)                                                                         ..                ..             ..

TOTAL EQUITY                                                                        1,052,592        1,012,233        1,058,150




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                  1 - 35
CASH FLOW STATEMENT
                                                                                        2005-06         2005-06         2006-07
                                                                          Notes         Budget          Est. Act.      Estimate
                                                                                          $’000            $’000          $’000

CASH FLOWS FROM OPERATING ACTIVITIES
 Inflows:
   Output receipts                                                        1,8,14        597,035             613,661     640,291
   User charges                                                           2,9,15        139,159             136,089     145,593
   Grants and other contributions                                           3,10        178,240             193,664     195,742
   Other                                                                                 30,588              32,223      32,042
 Outflows:
   Employee costs                                                        5,11,17      (459,316)        (469,250)       (489,932)
   Supplies and services                                                    6,18      (291,224)        (305,916)       (318,770)
   Grants and subsidies                                                  7,12,19      (130,030)        (138,940)       (147,114)
   Borrowing costs                                                                        (649)            (649)           (439)
   Other                                                                                (9,246)          (9,289)         (9,245)

Net cash provided by/ (used in) operating
activities                                                                                54,557             51,593      48,168

CASH FLOWS FROM INVESTING ACTIVITIES
 Inflows:
   Sales of property, plant and equipment                                                  7,520              4,720       5,550
   Investments redeemed                                                                        ..                 ..          ..
   Loans and advances redeemed                                                                 ..                 ..          ..
 Outflows:
   Payments for property, plant and equipment                          56,59,61         (74,600)        (73,473)        (98,098)
   Payments for intangibles                                                                    ..              ..              ..
   Payments for investments                                                                    ..              ..              ..
   Loans and advances made                                                                     ..              ..              ..

Net cash provided by/ (used in) investing
activities                                                                              (67,080)        (68,753)        (92,548)

CASH FLOWS FROM FINANCING ACTIVITIES
 Inflows:
   Borrowings                                                                                  ..                 ..          ..
   Equity injections                                                   57,60,62           12,899             15,349      45,917
 Outflows:
   Borrowing redemptions                                                       58         (4,258)           (2,424)      (2,269)
   Finance lease payments                                                                       ..                ..           ..
   Equity withdrawals                                                                           ..                ..           ..

Net cash provided by/ (used in) financing
activities                                                                                 8,641             12,925      43,648

Net Increase/ (decrease) in cash held                                                     (3,882)           (4,235)        (732)

Cash at the beginning of financial year                                                   26,305             20,077      15,842

Cash transfers from restructure                                                                ..                 ..          ..
Cash at the end of financial year                                                         22,423             15,842      15,110




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                   1 - 36
INCOME STATEMENT
                                                                                        2005-06         2005-06        2006-07
EXPENSES AND REVENUES ADMINISTERED ON
                                                                           Notes        Budget          Est. Act.     Estimate
BEHALF OF THE WHOLE OF GOVERNMENT
                                                                                          $’000            $’000         $’000

Revenues
 Commonwealth grants                                                                      28,900            28,900      28,900
 Taxes, fees and fines                                                                         ..                ..          ..
 Royalties, property income and other territorial
 revenue                                                                                       ..                ..          ..
 Interest                                                                                      ..                ..          ..
 Administered item revenue                                                     1,2         1,414             1,443           ..
 Other                                                                                         ..                ..          ..
Total revenues                                                                            30,314            30,343      28,900

Expenses
 Supplies and services                                                                          ..               ..           ..
 Depreciation and amortisation                                                                  ..               ..           ..
 Grants and subsidies                                                                       1,414            1,443            ..
 Benefit payments                                                                               ..               ..           ..
 Borrowing Costs                                                                                ..               ..           ..
 Other                                                                                          ..               ..           ..
Total expenses                                                                              1,414            1,443            ..


Net surplus or deficit before transfers to
Government                                                                                28,900            28,900      28,900

Transfers of Administered Revenue to                                                      28,900            28,900      28,900
Government

OPERATING SURPLUS/ (DEFICIT)                                                                      ..             ..           ..




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                 1 - 37
BALANCE SHEET
                                                                                         2005-06        2005-06      2006-07
ASSETS AND LIABILITIES ADMINISTERED ON
                                                                           Notes         Budget         Est. Act.   Estimate
BEHALF OF THE WHOLE OF GOVERNMENT
                                                                                           $’000           $’000       $’000

CURRENT ASSETS
 Cash assets                                                                                      ..           ..           ..
 Receivables                                                                                      ..           ..           ..
 Inventories                                                                                      ..           ..           ..
 Other                                                                                            ..           ..           ..

  Non-financial assets held for sale                                                              ..           ..           ..

Total current assets                                                                              ..           ..           ..

NON-CURRENT ASSETS
 Receivables                                                                                      ..           ..           ..
 Other financial assets                                                                           ..           ..           ..
 Property, plant and equipment                                                                    ..           ..           ..
 Intangibles                                                                                      ..           ..           ..
 Other                                                                                            ..           ..           ..
Total non-current assets                                                                          ..           ..           ..

TOTAL ADMINISTERED ASSETS                                                                         ..           ..           ..

CURRENT LIABILITIES
 Payables                                                                                         ..           ..           ..
 Transfers to Government payable                                                                  ..           ..           ..
 Interest-bearing liabilities                                                                     ..           ..           ..
 Other                                                                                            ..           ..           ..
Total current liabilities                                                                         ..           ..           ..

NON-CURRENT LIABILITIES
 Payables                                                                                         ..           ..           ..
 Interest-bearing liabilities                                                                     ..           ..           ..
 Other                                                                                            ..           ..           ..
Total non-current liabilities                                                                     ..           ..           ..

TOTAL ADMINISTERED LIABILITIES                                                                    ..           ..           ..

ADMINISTERED NET ASSETS/ (LIABILITIES)                                                            ..           ..           ..

EQUITY
 Capital/Contributed equity                                                               (2,582)              ..           ..
 Retained surplus/(Accumulated deficit)                                                     2,582              ..           ..
 Reserves:
  - Asset revaluation reserve                                                                     ..           ..           ..
  - Other (specify)                                                                               ..           ..           ..

TOTAL ADMINISTERED EQUITY                                                                         ..           ..           ..




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training               1 - 38
CASH FLOW STATEMENT
                                                                                       2005-06         2005-06         2006-07
CASH FLOWS ADMINISTERED ON BEHALF OF
                                                                         Notes         Budget          Est. Act.      Estimate
THE WHOLE OF GOVERNMENT
                                                                                         $’000            $’000          $’000

CASH FLOWS FROM OPERATING ACTIVITIES
 Inflows:
   Administered item receipts                                                             1,414              1,443           ..
   Grants and other contributions                                                        28,900             28,900      28,900
   Taxes, fees and fines                                                                      ..                 ..          ..
   Royalties, property income and other territorial
   revenues                                                                                     ..               ..           ..
   Other                                                                                        ..               ..           ..
 Outflows:
   Transfers to Government                                                             (28,900)         (28,900)      (28,900)
   Grants and subsidies                                                                 (1,414)          (1,443)             ..
   Supplies and services                                                                      ..           (292)             ..
   Borrowing costs                                                                            ..               ..            ..
   Other                                                                                      ..               ..            ..

Net cash provided by/ (used in) operating
activities                                                                                       ..          (292)            ..

CASH FLOWS FROM INVESTING ACTIVITIES
 Inflows:
   Sales of property, plant and equipment                                                       ..               ..           ..
   Investments redeemed                                                                         ..               ..           ..
   Loans and advances redeemed                                                                  ..               ..           ..
 Outflows:
   Payments for property, plant and equipment                                                   ..               ..           ..
   Payments for intangibles                                                                     ..               ..           ..
   Payments for investments                                                                     ..               ..           ..
   Loans and advances made

Net cash provided by/ (used in) investing
activities                                                                                       ..              ..           ..

CASH FLOWS FROM FINANCING ACTIVITIES
 Inflows:
   Borrowings                                                                                   ..               ..           ..
   Equity injections                                                                            ..               ..           ..
 Outflows:
   Borrowing redemptions                                                                        ..               ..           ..
   Finance lease payments                                                                       ..               ..           ..
   Equity withdrawals                                                                           ..               ..           ..

Net cash provided by/ (used in) financing
activities                                                                                       ..              ..           ..

Net increase/ (decrease) in cash held                                                            ..          (292)            ..

Administered cash at beginning of financial
year                                                                                             ..            292            ..

Cash transfers from restructure                                                                 ..               ..           ..
Administered cash at end of financial year                                                      ..               ..           ..




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                 1 - 39
EXPLANATION OF VARIANCES IN THE FINANCIAL STATEMENTS

Queensland Government entities adopted Australian Equivalents to International Financial
Reporting Standards (AeIFRS) from 1 July 2005. These Standards replace existing Australian
Accounting Standards, with the exception of AAS 29 Financial Reporting by Government
Departments and AAS 31 Financial Reporting by Government.

With the introduction of AeIFRS, several Accounting Policy Guidelines (APGs) were
amended to bring them into line with the new standards, and several additional policies were
introduced to take effect on transition to AeIFRS. In particular, new asset recognition
thresholds (contained in the Non-Current Asset Policies for the Queensland Public Sector),
were introduced in the 2005-06 financial year and are effective from 1 July 2004. The
2005-06 Budget column in the financial statements does not reflect new asset recognition
thresholds (consistent with the figures reported in the 2005-06 MPS), whilst the 2005-06 Est.
Actual and 2006-07 Estimate columns do reflect new asset recognition threshold changes.
Detailed notes are provided where these variances are significant.

Machinery of Government changes are reflected (if relevant) in recast estimates.

Income Statement
Major variations between 2005-06 Budget and 2005-06 Estimated Actual include:
1. Increase due to the recognition of approximately $15 million revenue for projects deferred from 2004-05.
2. Reduction in fee for service activity within TAFE Network, including Industry Funded Training and International Students.
3. Increase in recurrent grant and IESIP funding from the Department of Education, Science and Training (DEST) and
   additional funding from Department of State Development for the Workplace Excellence program.
4. Increase mainly due to proceeds from the sale of assets.
5. Increase is mainly due to an underestimation of employee costs in 2005-06 Budget.
6. Increase due to the impact of changes in the asset recognition thresholds following the adoption of Australian equivalents
   to International Financial Reporting Standards (AeIFRS) and to reflect an increase due to changes to Government
   Accounting Policy on Asset Thresholds.
7. Increase in payments to Centre of Excellence (Mining), Workplace Excellence and Mature Age Program and Community
   Training Partnerships.

Major variations between 2005-06 Budget and 2006-07 Estimate include:
8. Increase due to VET growth funding, estimated Enterprise Bargaining supplementation and the Queensland Skills Plan.
    The increase is offset by projects deferred from 2004-05.
9. Increase in user charges revenue mainly from the Queensland Skills Plan.
10. Increase in funding for Workplace Excellence and Australian Government funding including recurrent grant funding and
    national projects.
11. Increase due to the impact of the proposed 2006 Enterprise Bargaining Agreement and increased maternity leave
    allowance payments.
12. Increase in funding for VET in Schools, Centres of Excellence (Mining), Workplace Excellence, Community Training
    Partnerships, and Australians Working Together. Approximately $9 million relates to the Queensland Skills Plan.
13. The decrease is mainly due to adjustments following the adoption of AeIFRS and the outcomes of a comprehensive
    revaluation of departmental assets on land and buildings.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
14. Increase in VET Growth funding, estimated Enterprise Bargaining supplementation and the Queensland Skills Plan.
15. Increase in revenue mainly from the Queensland Skills Plan and fee for service activity such as Industry Funded Training,
    International Students and Literacy and Numeracy fees.
16. Reduction in Miscellaneous Revenue items.
17. Increase due to the impact of the proposed 2006 Enterprise Bargaining Agreement and increase for maternity leave
    allowance payments.
18. Increase due to the impact of changes in the asset recognition thresholds following the adoption of AeIFRS.
19. Increase in payments for Apprentice/Trainee travel and accommodation, programs including Get Set For Work, Public and
    Community and Private Sector School Based Apprenticeships and Trainees. Approximately $9.8 million relates to the
    Queensland Skills Plan.
20. Decrease is mainly due to the department's debt reduction strategy for borrowing costs.


Balance Sheet
Major variations between 2005-06 Budget and 2005-06 Estimated Actual include:
21. Lower than anticipated opening balance from the 2004-05 financial year due to Department self-funding borrowings
    associated with implementation of the Institute Student Administration System (ISAS) project for TAFE.
2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                 1 - 40
22.   Increase is predominantly in the expected level of trade debtors at year end.
23.   General increase in level of prepayments.
24.   Increase is mainly due to the reclassification of assets held for immediate sale following the adoption of AeIFRS.
25.   The decrease is mainly due to the adjustment following the adoption of AeIFRS and the outcomes of a 3 year
      comprehensive revaluation program for Departmental land and buildings.
26.   Increase is due to additional capital acquisitions under the Department's Information Communication and Technology (ICT)
      program.
27.   The increase is predominantly in the expected level of trade creditors at year end.
28.   General increase in the level of accrued employee benefits.
29.   The decrease is due to department self-funding strategy for ISAS project.
30.   The increase is due to additional provision for amount unclaimed at year end by private training providers.
31.   Decrease reflects the expected level of unearned revenue at year end.
32.   The decrease is due to the department's self-funding strategy for ISAS project.
33.   The decrease is due to the deferral of investment for the Coomera Education Precinct program and impact of changes in
      the asset recognition thresholds following adoption of AeIFRS. This is partly offset by payments of land purchased at
      Acacia Ridge for the Trade and Technician Skills Institutes (TTSI).
34.   The decrease is mainly due to the reduction of 2005-06 opening balance as a result of first time adoption of AeIFRS.
35.   The decrease is due to the outcomes of a comprehensive revaluation of Departmental assets mainly on land and buildings.

Major variations between 2005-06 Budget and 2006-07 Estimate include:
36. Decrease is due to the department self-funding strategy for ISAS project and general increase in receivables,
    predominantly trade debtors.
37. Increase is predominantly in the expected level of trade debtors at year end.
38. General increase in level of prepayments.
39. Increase is mainly due to reclassification of assets held for immediate sale following the adoption of AeIFRS.
40. The decrease is mainly due to adjustments following the adoption of AeIFRS and the outcomes of a comprehensive
    revaluation of departmental assets on land and buildings. The decrease is largely offset by the capital acquisition under the
    Queensland Skills Plan.
41. Acquisitions under the department's ICT program and the Queensland Skills Plan.
42. The increase is predominantly in the expected level of trade creditors at year end.
43. General increase in the level of accrued employee benefits.
44. The decrease is due to the department’s self-funding strategy for ISAS project.
45. The increase is due to additional provision for amount unclaimed at year end by private training providers.
46. Decrease reflects the expected level of unearned revenue at year end.
47. The decrease is due to department self-funding strategy for ISAS project.
48. Increase in equity injection to fund capital investments associated with the Queensland Skills Plan.
49. The decrease is mainly due to the reduction of 2005-06 opening balance as a result of first time adoption of AeIFRS.
50. The decrease reflects the outcomes of a comprehensive revaluation of departmental assets mainly on land and buildings.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
51. The increase is due to capital acquisitions under the Queensland Skills Plan, offset by the depreciation of assets during
    2006-07.
52. The decrease reflects the capital acquisition of ICT programs, offset by the amortisation of intangible assets during
    2006-07.
53. Repayment of principal on Queensland Treasury Corporation loan.
54. Reclassification from non-current to current as the loan is expected to settle within 12 months.
55. Increase in equity injection to fund capital investments associated with the Queensland Skills Plan.


Cash Flow Statement
Major variations between 2005-06 Budget and 2005-06 Estimated Actual include:
56. The decrease is due to the deferral of the Coomera Precinct project and impact of changes in the asset recognition
    thresholds following adoption of AeIFRS. The decrease is largely offset by payments of land purchased at Acacia Ridge.
57. The increase is due to equity injection to fund capital investment associated with the Acacia Ridge TTSI construction
    project, offset by the deferral of Coomera Education Precinct.
58. The decrease is due to the department's self-funding strategy for the ISAS project.

Major variations between 2005-06 Budget and 2006-07 Estimate include:
59. The increase is due to the capital acquisitions under the Queensland Skills Plan.
60. The increase is due to equity injection to fund capital investment under Queensland Skills Plan.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
61. The increase is due to the capital acquisitions under the Queensland Skills Plan.
62. The increase is due to equity injection to fund capital investment under Queensland Skills Plan..



Income Statement
Expenses and Revenues Administered on Behalf of the Whole of Government
Major variations between 2005-06 Budget and 2006-07 Estimate include:
1. Reduction as the department will no longer be the host agency for Corporate Solutions Queensland from 1 July 2006.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
2. Reduction as the department will no longer be the host agency for Corporate Solutions Queensland from 1 July 2006.

2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                   1 - 41
RECONCILIATION OF 2006-07 APPROPRIATION AMOUNTS TO THE
FINANCIAL STATEMENTS


CONTROLLED

Income Statement
                                                                                           $’000

 Output Revenue in Income Statement1                                                    640,291
                                                          a
    Add:      Appropriation Funding for Outputs Receivable                                    ..

 = Appropriation for Departmental Outputs                                               640,291

                                                   2
 = Output Receipts in Cash Flow Statement                                               640,291




Balance Sheet
                                                                                           $’000

 Closing balance Contributed Equity3                                                      78,783
    Less:    Opening Balance Contributed Equity3                                          32,866

 = Change in Contributed Equity in the Balance Sheet                                      45,917

                                                                 b
      Add:      Appropriation Equity Injection Receivable                                       ..
                                                     4
      Less:     Non-appropriated Equity Adjustments                                             ..

 = Appropriation for Equity Adjustment5                                                   45,917

 = Net Appropriated Equity Adjustment in Cash Flow Statement                              45,917


1.   This Output Revenue amount reconciles to the Output Revenue line in the Income Statement on page 1-34.
2.   This Output Revenue amount reconciles to the Output Receipts line in the Cash Flow Statement on page 1-36.
3.   The Contributed Equity amounts reconcile to the Contributed Equity line in the Balance Sheet on page 1-35.
4.   Non-appropriated equity adjustments relate to Machinery of Government changes, long service leave liabilities transferred
     to the whole-of-Government scheme.
5.   The Appropriation for Equity Adjustment amount reconciles to the Equity Adjustment line in the Appropriations table on
     page 1-7.

a.   This line item relates to operating revenue recognised in one year for which the cash is not received until the subsequent
     year.
b.   This line item relates to equity recognised in one year for which the cash is not received until the subsequent year.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                  1 - 42
ADMINISTERED

Statement of Expenses and Revenues Administered on Behalf of the Whole of
Government
                                                                                          $’000

 Administered Item Revenue in Income Statement6                                                ..
    Add:     Other (Administered) Appropriation Receivable                                     ..

 = Appropriation for Administered Expenses7                                                    ..




Statement of Assets and Liabilities Administered on Behalf of the Whole of
Government
                                                                                          $’000

 Closing balance Contributed Equity8                                                           ..
    Less:    Opening Balance Contributed Equity8                                               ..

 = Change in Contributed Equity in the Statement of Assets and
   Liabilities administered on behalf of the State Government                                  ..

        Add:      Appropriation Equity Injection Receivableb                                   ..
        Less:     Non-appropriated Equity Adjustment                                           ..

 = Appropriation for Administered Equity Adjustment7                                           ..




6.   The Administered Item Revenue amount reconciles to the Administered Item Revenue line in the Statement of Expenses
     and Revenues Administered on Behalf of the Whole of Government on page 1-37.
7.   Total Appropriation for Administered items ($0) = Appropriation for Administered expenses ($0) + Appropriation for
     Administered Equity Adjustment ($0).
8.   The Contributed Equity amounts reconcile to the Contributed Equity line in the Statement of Assets and Liabilities
     Administered on Behalf of the Whole of Government on page 1-38.

Note:     Appropriation for Administered Expenses + Appropriation for Administered Equity Adjustment = total Administered
          Items (which reconciles to the Administered Items line in the Appropriations table on page 1-7).

a.      This line item relates to operating revenue recognised in one year for which the cash is not received until the subsequent
        year.
b.      This line item relates to equity recognised in one year for which the cash is not received until the subsequent year.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training                     1 - 43
Corporate Services1 Allocation 2006-07 Estimate ($’000)
                                                                                                                 Vocational
                                                                              Total                              Education
                                                                                              Employment
                                                                          Corporate                                     and
                                                            Notes                               Initiatives
                                                                           Services                                Training
                                                                                                                  Serivces

Income
  Output revenue                                                               87,926                   3,036       84,891
  User charges                                                                  1,142                      77        1,064
  Grants and other contributions                                                  894                       5          889
  Other revenue                                                                   969                      66          903
  Gains on sale/revaluation of property,                                            ..                      ..           ..
  plant and equipment and investments

Total income                                                                   90,931                   3,184       87,747

Expenses
 Employee expenses                                                             41,528                   1,078       40,450
 Supplies and services                                                         45,220                   1,989       43,230
 Grants and subsidies                                                             355                       ..         355
 Depreciation and amortisation                                                  2,370                      45        2,324
 Finance/borrowing costs                                                            ..                      ..           ..
 Other expenses                                                                   780                      29          751
 Losses on sale/revaluation of property,                                            ..                      ..           ..
 plant and equipment and investments

Total expenses                                                                 90,253                   3,141       87,110


Full Time Equivalents                                                              537                      17         520


Note:
1. Corporate services functions include: planning and purchasing, policy development, training quality and regulation, human
   resource strategy and performance, strategic communications and marketing, executive services (Office of the CEO),
   Ministerial and Cabinet liaison, information technology strategic directions, business management strategy, training and
   employment to external clients, finance and administration, procurement, human resources, payroll, staff training
   information technology, records management and property acquisition and management.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Department of Employment and Training              1 - 44
         MINISTERIAL PORTFOLIO STATEMENT

                     2006-07 STATE BUDGET



    MINISTER FOR EMPLOYMENT, TRAINING AND
    INDUSTRIAL RELATIONS AND MINISTER FOR
                    SPORT



     AUSTRALIAN AGRICULTURAL COLLEGE CORPORATION




______________________________                ______________________________

Hon. Tom Barton MP                            Scott Flavell
Minister for Employment, Training and         Chief Executive, Australian
Industrial Relations and Minister for Sport   Agricultural College Corporation
                                                        OVERVIEW


STRATEGIC ISSUES
The Australian Agricultural College Corporation commenced operation on 1 July 2005,
amalgamating the former four Queensland agricultural colleges. The corporation combines
over 130 years of education and training experience in agriculture.

In 2006-07 the Australian Agricultural College Corporation will move toward the delivery of
more flexible and responsive training for rural industries and communities across five
campuses located in diverse geographical and climatic regions of Queensland.

The key strategic initiatives, which were the focus of the corporation’s first 12 months, will
form the foundation of business over the next two years. These initiatives are:
• positioning the Australian Agricultural College Corporation as the premier and preferred
   nationally recognised provider of rural industry vocational education and training in
   Australia
• developing the Australian Agricultural College Corporation as an effective, efficient and
   economically viable corporation.

The Australian Agricultural College Corporation services support Government objectives of
building a strong diversified economy and of developing a community of well-skilled and
knowledgeable people. The corporation’s key strategic initiatives also link with the
Government’s Queensland Skills Plan, and the Department of Employment and Training’s
Strategic Plan and 2006-07 regional vocational education and training plans.

Key strategic issues
•    Responding more effectively to State and regional training and employment priorities,
     particularly the skilling priorities of primary and rural industries.

•    Developing lead institute status in the areas of agriculture and land management.

•    Implementing strategies that address the challenges identified within the Queensland
     Skills Plan.

•    Engaging more broadly and proactively with; industry, employers, community groups,
     the Department of Employment and Training, and the Department of Primary Industries
     and Fisheries to identify and respond to priority training needs.

•    Working with the Department of Employment and Training and the Department of
     Primary Industries and Fisheries to develop and realise Skills Formation Strategies for
     primary and rural industries.

•    Implementing actions to prepare young people for work, consistent with the Queensland
     Skills Plan.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation   2-1
•    Skilling for economic growth and development in key priority areas, with an emphasis on
     industries experiencing skills shortages. This includes skills passports and Skills
     Formation Strategies.

•    Increasing the uptake of Recognition of Prior Learning.

•    Promoting training and retraining of mature age workers.

•    Initiating a system to monitor employer, student and stakeholder satisfaction rates.

•    Customising training products and delivery modes to suit the needs of clients and
     stakeholders.

Impact of current market and business conditions
•    Significant levels of public confidence were lost during the amalgamation process. The
     corporation will continue to address this by developing partnering arrangements,
     increasing industry consultation, and the realisation of Skills Formation Strategies.

•    Low levels of unemployment continue in Queensland. The corporation is focusing on
     increased industry consultation, entry level participation and working with industry
     groups to up-skill existing workers and enhance career paths in rural related areas.

•    Drought and inclement weather, such as Cyclone Larry and torrential rain, have resulted
     in training delays in the affected areas. The corporation is working with industry and the
     Department of Employment and Training to mitigate these effects where possible.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation   2-2
                  NON-DEPARTMENTAL OUTPUT PERFORMANCE


NON-DEPARTMENTAL OUTPUT:                                    Public Provider of rural-related Vocational
                                                            Education and Training

RELATED OUTCOMES: A strong diversified economy and
                  A community of well-skilled and knowledgeable
                  people.


REVIEW OF NON-DEPARTMENTAL OUTPUT PERFORMANCE
The Australian Agricultural College Corporation is contributing to a strong diversified
economy and a community of well skilled and knowledgeable people by responding to
industry and training needs for entry level students and existing workers.

Recent Achievements
Since amalgamation on 1 July 2005, the corporation has placed considerable effort into
improving the relevance, quality and efficiency of all training, with particular emphasis on
campus training.

2005-06 Key Achievements
•    Planning for lower level courses to be common to all campuses, supporting greater
     efficiencies in course materials, assessments and compliance.

•    Development of objectives and enabling strategies to facilitate an increase in the level of
     off campus delivery and assessment. These initiatives have aimed to increase:
      − the availability of staff to deliver training off campus;
      − staff capacity to deliver and assess at higher levels for existing managers (for
          example, Certificate IV, Diploma and Advanced Diploma);
      − community and regional training opportunities;
      − the uptake and cost effectiveness of industry training partnerships; and
      − enhancing the profile of the vocational education and training sector as training to
          meet industry needs.

•    Implementation of the information and communication technology upgrade has ensured
     the Australian Agricultural College Corporation maintains the standards required for a
     modern teaching and administrative public provider. The corporation now operates a
     consolidated, efficient and effective information and communication technology business
     platform.

•    A comprehensive review of organisational structure requirements, job descriptions and
     salary classifications as a result of the first 12 months of amalgamation.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation   2-3
Future Developments
In 2006-07 the Australian Agricultural College Corporation will move toward the delivery of
more flexible and responsive training for rural industries and communities across five
campuses located in diverse geographical and climatic regions of Queensland.

2006-07 Key Activities
•    Implement a new program of study options in 2007 better suited to industry needs.

•    Lower level courses will be common across campuses leading to streamlining student
     options and greater efficiency in delivery.

•    Develop a three year rolling annual budget and performance framework that reflects
     contemporary management practices and improves overall profitability and output.

•    Develop sustainable property and capital infrastructure plans, and appropriate and viable
     pricing strategies.

•    Continue the development of cost effective internal controls that emphasise
     accountability, transparency and exceed minimum legislative requirements.

•    Develop flexible, fair and attractive employment arrangements embedded into a new
     Certified Agreement.

•    Research the potential of delivery partnerships with TAFE.

•    Overall business focus on improving services, responsiveness, quality and relevance of
     training to students, community and industry.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation   2-4
                      NON-DEPARTMENTAL OUTPUT STATEMENT

Non-Departmental Output: AUSTRALIAN AGRICULTURAL COLLEGE CORPORATION

                                                                                  2005-06              2005-06         2006-07
Measures                                                         Notes
                                                                               Target/Est.          Est. Actual     Target/Est.

Quantity
Total Annual Hours Curriculum to be
delivered (‘000 AHC)
• VET Revenue                                                           1                N/A                  450          500
• Priority Purchasing Program (including                                1                N/A                  180          130
    User Choice and Strategic Purchasing)

Quality
Level of stakeholder satisfaction with VET
training services and products
• Student Outcomes Survey                                                                N/A                 75%          80%
• Survey of employers views                                                              N/A                 75%          80%

Percentage of successfully completed                                                     N/A                 85%          85%
competencies compared with all modules
assessed

Location
Proportion of VET activity delivered in                                 2                N/A                100%         100%
regional Queensland

Cost ($)
Cost per hour (Annual Hours Curriculum) for
Government funded VET:
• VET (all)                                                                              N/A              $26.27        $25.92
• Direct Grant                                                                           N/A              $31.77        $29.24
• Priority Purchasing Program (including                                                 N/A              $12.50        $10.61
   User Choice and Strategic Purchasing)

State Contribution - VET ($’000)                                                         N/A             $16,553       $16,332
Other Revenue ($’000)                                                   3                N/A             $12,727       $10,782
Total Cost ($’000)                                                                       N/A             $30,280       $27,114
N/A = Australian Agricultural College Corporation commenced operation 1 July 2005. The 2006-07 year is the first year a
Ministerial Portfolio Statement is required, therefore no 2005-06 targets are applicable.

Notes:
1. The increase in VET revenue and decrease in Priority Purchasing is due to a shift of training from one area to the other.
2. Although all Australian Agricultural College Corporation campuses are regionally based, there are increasing levels of
    urban students attending these campuses.
3. The decrease in Other Revenue results from specific project funds received in 2005-06.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation             2-5
FINANCIAL STATEMENTS

INCOME STATEMENT
                                                                                         2005-06          2005-06          2006-07
                                                                          Notes          Budget           Est. Act.       Estimate
                                                                                           $’000             $’000           $’000

Income
  User charges                                                                   1             N/A            4,298          5,610
  Grants and other contributions                                                 2             N/A           21,882         17,486
  Other revenue                                                                                N/A            3,100          3,582
  Gains on sale/revaluation of property, plant and                                             N/A                ..           436
  equipment and investments
Total income                                                                                   N/A           29,280         27,114

Expenses
 Employee expenses                                                               3             N/A           14,575         13,270
 Supplies and services                                                           4             N/A            9,521          8,300
 Grants and subsidies                                                                          N/A                ..             ..
 Depreciation and amortisation                                                                 N/A            3,796          3,469
 Finance/borrowing costs                                                                       N/A              411            375
 Other expenses                                                                                N/A            1,977          1,700
 Losses on sale/revaluation of property, plant and                                             N/A                ..             ..
 equipment and investments
Total expenses                                                                                 N/A           30,280         27,114

OPERATING SURPLUS / (DEFICIT)                                                                  N/A           (1,000)             ..




STATEMENT OF CHANGES IN EQUITY
                                                                                         2005-06          2005-06          2006-07
                                                                          Notes          Budget           Est. Act.       Estimate
                                                                                           $’000             $’000           $’000

Net effect of the adoption of a new accounting
standard                                                                         1             N/A                (700)          ..
Increase/ (decrease) in asset revaluation reserve                                2             N/A                3,549          ..
Net amount of all revenue and expense
adjustments direct to equity not disclosed above                                               N/A                (314)          ..

Net income recognised directly in equity                                                       N/A                2,535          ..

Surplus/ (deficit) for the period                                                              N/A           (1,000)
                                                                                                                                 ..
Total recognised income and expense for the
period                                                                                         N/A           (1,000)             ..
Equity injection/ (withdrawal)                                                                   ..                ..            ..
Equity adjustments (MoG transfers)                                                               ..                ..            ..
Total movement in equity for period                                                            N/A             1,535             ..




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation                2-6
BALANCE SHEET
                                                                                         2005-06          2005-06           2006-07
                                                                          Notes          Budget           Est. Act.        Estimate
                                                                                           $’000             $’000            $’000

CURRENT ASSETS
 Cash assets                                                                     1             N/A                  696       1,505
 Receivables                                                                     2             N/A                1,492         945
 Other financial assets                                                                        N/A                  177         180
 Inventories                                                                                   N/A                  190         175
 Prepayments                                                                                   N/A                   65          40

  Non-financial assets held for sale                                                           N/A                    ..          ..

Total current assets                                                                           N/A                2,620       2,845

NON-CURRENT ASSETS
 Receivables                                                                                   N/A                ..              ..
 Other financial assets                                                                        N/A               64              64
 Property, plant and equipment                                                   3             N/A           79,787          78,723
 Intangibles                                                                                   N/A              405             405
 Other (SGARAs)                                                                                N/A            5,050           5,100
Total non-current assets                                                                       N/A           85,306          84,292

TOTAL ASSETS                                                                                   N/A           87,926          87,137

CURRENT LIABILITIES
 Payables                                                                                      N/A                  766         516
 Accrued employee benefits                                                                     N/A                  300         300
 Interest-bearing liabilities and derivatives                                                  N/A                1,272       1,100
 Provisions                                                                                    N/A                1,319       1,350
 Other                                                                                         N/A                  130           ..
Total current liabilities                                                                      N/A                3,787       3,266

NON-CURRENT LIABILITIES
 Payables                                                                                      N/A                    ..          ..
 Accrued employee benefits                                                                     N/A                    ..          ..
 Interest-bearing liabilities and derivatives                                                  N/A                2,637       2,284
 Provisions                                                                                    N/A                1,710       1,795
 Other                                                                                         N/A                    ..          ..
Total non-current liabilities                                                                  N/A                4,347       4,079

TOTAL LIABILITIES                                                                              N/A                8,134       7,345

NET ASSETS (LIABILITIES)                                                                       N/A           79,792          79,792

EQUITY
 Capital/Contributed equity                                                                    N/A                ..              ..
 Retained surplus/ (Accumulated deficit)                                                       N/A           37,053          37,053
 Reserves:
  - Asset revaluation reserve                                                                  N/A           42,739          42,739
  - Other (specify)                                                                            N/A                ..              ..

TOTAL EQUITY                                                                                   N/A           79,792         79,792




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation                 2-7
CASH FLOW STATEMENT
                                                                                         2005-06          2005-06          2006-07
                                                                          Notes          Budget           Est. Act.       Estimate
                                                                                           $’000             $’000           $’000

CASH FLOWS FROM OPERATING ACTIVITIES
 Inflows:
   User charges                                                                  1             N/A            4,211          5,922
   Grants and other contributions                                                2             N/A           21,882         17,486
   Other                                                                         3             N/A            2,948          3,373
 Outflows:
   Employee costs                                                                4             N/A         (14,575)       (12,958)
   Supplies and services                                                         5             N/A         (10,418)        (7,543)
   Grants and subsidies                                                                        N/A                ..             ..
   Borrowing costs                                                                             N/A            (411)          (375)
   Other                                                                                       N/A          (1,905)        (1,850)

Net cash provided by/ (used in) operating
activities                                                                                     N/A                1,732      4,055

CASH FLOWS FROM INVESTING ACTIVITIES
 Inflows:
   Sales of property, plant and equipment                                                      N/A                   ..       636
   Investments redeemed                                                                        N/A                   ..         ..
   Loans and advances redeemed                                                                 N/A                   ..         ..
 Outflows:
   Payments for property, plant and equipment                                    6             N/A           (1,800)       (2,982)
   Payments for intangibles                                                                    N/A                 ..            ..
   Payments for investments                                                                    N/A                 ..            ..
   Loans and advances made                                                                     N/A                 ..            ..

Net cash provided by/ (used in) investing
activities                                                                                     N/A           (1,800)       (2,346)

CASH FLOWS FROM FINANCING ACTIVITIES
 Inflows:
   Borrowings                                                                                  N/A                   ..          ..
   Equity injections                                                                           N/A                   ..          ..
 Outflows:
   Borrowing redemptions                                                         7             N/A           (1,300)         (900)
   Finance lease payments                                                                      N/A                 ..            ..
   Equity withdrawals                                                                          N/A                 ..            ..

Net cash provided by/ (used in) financing
activities                                                                                     N/A           (1,300)         (900)

Net Increase/ (decrease) in cash held                                                          N/A           (1,368)           809

Cash at the beginning of financial year                                                        N/A                2,064       696

Cash transfers from restructure                                                                N/A                   ..          ..
Cash at the end of financial year                                                              N/A                 696       1,505




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation                2-8
EXPLANATION OF VARIANCES IN THE FINANCIAL STATEMENTS

Income Statement
Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
1. Increase in user charges revenue due to increased demand and streamlining of fees.
2. 2005-06 estimate includes the receipt of special project funds.
3. Decrease due to finalisation of base FTE’s and post amalgamation staff requirements.
4. Operational savings as a result of streamlined and tighter expenditure controls.


Statement of Changes in Equity
Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
1. Estimated impact of changes to asset threshold applied to Australian Agricultural College Corporation from 1 July 2005.
2. Estimated increase in asset revaluation exercise – to be completed by 30 June 2006.


Balance Sheet
Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
1. Increase due to improved working capital management.
2. Decrease due to positive debtor management and streamlining BPAY and credit facilities.
3. Decrease due to streamlined depreciation rates and reinvestment less than depreciation expense for the year.


Cash Flow Statement
Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
1. Increase due to changes to the timing of receipts, tighter debtor management and increased fees.
2. Decrease due to 2005-06 receipt of additional special project funds.
3. Increases in production receipts and tighter debtor control.
4. Decrease due to finalisation of base FTE’s and post amalgamation staff requirements and improved management of
    employee entitlements.
5. Decrease due to operational savings and improved expenditure control.
6. Increase in the purchases of plant and equipment as a result of changes to education and training imperatives.
7. Decrease due to changes in the QTC borrowing pool repayments as a result of amalgamation.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Australian Agricultural College Corporation          2-9
This page has been left blank intentionally.
         MINISTERIAL PORTFOLIO STATEMENT

                     2006-07 STATE BUDGET



    MINISTER FOR EMPLOYMENT, TRAINING AND
    INDUSTRIAL RELATIONS AND MINISTER FOR
                    SPORT



              DEPARTMENT OF INDUSTRIAL RELATIONS




______________________________                ______________________________

Hon. Tom Barton MP                            Peter Henneken
Minister for Employment, Training and         Director-General
Industrial Relations and Minister for Sport
                                      DEPARTMENTAL OVERVIEW


STRATEGIC ISSUES

A strong and diversified economy
Safe, fair and productive workplaces are an essential feature of a strong and diversified
economy. The Department of Industrial Relations leads policy development and service
delivery that supports safe, fair and more productive work environments that contribute to the
social and economic wellbeing of Queenslanders. The department also contributes to safe and
secure communities and responsive government in Queensland.

The department has four key goals:
• a fair and equitable industrial relations system
• safe and healthy work environments
• electrically safe homes, workplaces and other environments
• a fair, safe and productive public sector work environment.

In recent years, outcomes in these goal areas have been very positive. A keystone of
Queensland’s strong economic growth has been the State’s effective and equitable industrial
relations system. Queensland’s level of industrial disputation is well below the Australian
average (working days lost per 1,000 employees - Queensland 4.4; Australian average 6.6).
Improvements in workplace health and safety and electrical safety have also contributed to
improved productivity. The rate of work-related injuries has fallen - in the period 2000-01 to
2004-05, the injury rate declined by 11%. This improved safety performance has contributed
to a 16% reduction in the average workers’ compensation premium rate from 1 July 2005
(rate of $1.43 for every $100 in wages paid) to 1 July 2006 (rate of $1.20 for every $100 in
wages paid). Queensland’s rate of electrical fatalities has dropped to 1.24 fatalities per
million people (five year moving average 2000-01 to 2004-05) and is now below the
Australian average rate of 1.9 for the same period. Effective public sector wage bargaining
has resulted in minimal days lost to industrial disputation and moderate, fair and consistent
wage outcomes for public sector workers.

Into the future, the Department of Industrial Relations will continue to play a critical role in
addressing challenges to ensure Queensland’s strong economic performance continues and
the Smart State objectives are achieved. In particular, these challenges will come through:
• changes to the working conditions, rights, entitlements and job security of Queensland
    workers, specifically through the federal government’s Workplace Relations Amendment
    (Work Choices) Act 2005
• the changing nature of the labour force including increasing casualisation, labour hire and
    contracting
• demographic changes such as the ageing of the workforce, the present skills shortage, and
    industry and population expansion, particularly in South East Queensland.

Federal government’s Work Choices changes
The federal government’s Work Choices legislation dramatically changes Australia’s
industrial relations system. This new system, which commenced on 27 March 2006, has the
potential to have a major impact on the department’s operations and the wider Queensland
community.
2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3-1
The Queensland Government has initiated a High Court challenge to the Work Choices
changes. Until the outcome of the challenge is known, the Work Choices legislation will be
in effect. The Work Choices legislation involves major changes to the industrial relations
framework across Australia, including Queensland. These include:
• removing unfair dismissal protection for all employees in the new federal system working
    in businesses with 100 or fewer staff members
• abolishing the no disadvantage test, thereby allowing workers to be covered by new
    federal agreements that remove current entitlements such as overtime, public holiday pay,
    shift allowances and weekend penalty rates
• establishing a new Australian Fair Pay Commission to fix minimum wages in place of the
    Australian Industrial Relations Commission
• reducing the coverage of the Queensland state industrial relations jurisdiction from the
    current 70% of employees to around 40% of employees
• giving priority to individual agreements over collective bargaining.

The federal government has argued these changes will produce a simpler, national system of
industrial relations and a stronger economy. However, in practice:
• the Work Choices changes are proving complex and causing ongoing uncertainty about
   coverage
• the changes do not produce a single national system as there is still a significant State
   jurisdiction in operation (i.e. workplaces falling outside the corporations law)
• the system also reduces choice as many employers no longer have the option of operating
   in the State system.

International evidence shows that labour market deregulation has led to increased wage
dispersion, without necessarily improving economic performance or productivity. By
reducing existing employment protections, the changes increase the risk of exploitation,
particularly for the most vulnerable sections of the workforce with limited or no bargaining
power.

Queensland’s continued strong economic growth will be underpinned by skilling, capital
development and fostering the use of high technology and innovation. A more deregulated
labour market, which is one outcome of the Work Choices package, increases the need for the
Queensland Government to actively foster cooperative and productive labour relations in
workplaces to ensure Queensland’s economic growth continues.

Labour market changes and economic expansion
Changes in workplace arrangements, population ageing, labour shortages, strong population
growth and industry and infrastructure expansion will put pressure on the Government’s
ability to deliver services that improve safety, fairness and productivity in Queensland’s
workplaces.

Over the past 20 years, Queensland has seen an increase in alternative work arrangements
such as non-standard working hours and a variety of employment arrangements such as
casual, labour hire and contract employment. Between 1998 and 2001 the number of
individuals in labour hire in Queensland doubled. Some 28% of all employees are casuals and
younger workers have an even higher rate of casual work.



2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3-2
In the future, population ageing will have a significant impact on Queensland’s labour force.
Currently, there are 5.2 people in the potential workforce for every person aged 65 or more
years (an age dependency ratio of 19%). By 2044-45 this will have fallen by more than half,
to less than 2.4. Labour force growth is also expected to slow dramatically (from 3.2% in the
1980s to 0.4% by 2016).

Labour shortages are a significant concern and have the potential to impact dramatically on
the community through lost productivity and increased workloads and stress for workers.

Safety
While workplace health and safety in Queensland has improved over recent years, the social
and economic costs of work-related injury and disease remain unacceptable. A key challenge
is to achieve a more consistent national approach to workplace health and safety (both in
standard setting and implementation) and workers’ compensation. This will improve
efficiency for Workplace Health and Safety Queensland while reducing the compliance
burden for employers. Queensland has adopted a cooperative approach to working with other
jurisdictions to achieve this outcome. However, the federal government has recently moved
unilaterally on workers’ compensation self insurance and the application of federal
government occupational health and safety laws.


2006-07 HIGHLIGHTS
The department’s newly established Fair Go Queensland Advisory Service will continue to
inform employers and employees about their rights and responsibilities under the federal
government’s Workplace Relations Amendment (Work Choices) Act 2005.

The department will develop its ‘Smart Workplaces’ program to demonstrate the links
between cooperative employer/worker decision-making and improved safety, fairness and
productivity. The program, to be trialled with a range of employers, will be implemented at
the enterprise level and focus on:
• responsible safety systems, injury prevention and rehabilitation
• training in mutual gains agreement-making, problem solving and dispute resolution
• changing cultures around negotiations and bargaining
• work and family strategies
• trust relationships between employees and management.

Additional workplace health and safety inspectors will be appointed in regional areas to
respond to growth in high risk industries and new asbestos management regulations.


DEPARTMENTAL OUTPUTS
Workplace Health and Safety Services (including Workers’ Compensation Policy) Output
contributes to the Government’s priority of Growing a diverse economy and creating jobs –
ensure a fairer industrial relations system and improve workforce management by putting
people, safe jobs and workplaces first, by delivering policy and regulatory frameworks and a
range of workplace health and safety services to employers, employees and the public. The
output includes the provision of high-level advice to the Minister on a range of matters
relating to workplace health and safety and workers’ compensation.


2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3-3
Private Sector Industrial Relations Services Output contributes to the Government’s priority
of Growing a diverse economy and creating jobs – ensure a fairer industrial relations system
and improve workforce management by putting people, safe jobs and workplaces first, by
providing policy and regulatory frameworks and a range of compliance and advisory services
to the private sector. The output includes the provision of high-level advice to the Minister on
industrial relations matters.

Administration of the Industrial Court and Commission System Output contributes to the
Government’s priority of Growing a diverse economy and creating jobs – ensure a fairer
industrial relations system and improve workforce management by putting people, safe jobs
and workplaces first, by providing independent conciliation, arbitration and agreement
approval services in respect of industrial matters detailed in the Industrial Relations Act 1999.
The output seeks to ensure its services are accessible and delivered equitably across the State,
and plays a major role in contributing to the social and economic well-being of
Queenslanders.

Electrical Safety Services Output contributes to the Government’s priority of Protecting our
children and enhancing community safety – minimise the risk and impact of accidents,
emergencies and disasters by delivering policy and regulatory frameworks and a range of
electrical safety services to employers, employees and the public. The output provides high-
level advice to the Minister on a broad range of matters relating to electrical safety. Its focus
is on achieving the Government’s policy objectives of ensuring improved personal and public
electrical safety in Queensland.

Public Sector Industrial and Employee Relations Services Output contributes to the
Government’s priority of Delivering a responsive government – support a responsive public
sector, focused on improving government service delivery by providing policy frameworks to
improve and review public sector wages, bargaining and employee relations policies. The
output provides high-level advice to the Minister on industrial and employee relations matters
and is focused on achieving the Government’s policy objectives of supporting a responsive
public sector and improving government service delivery.


OUTPUT LINKAGES WITH GOVERNMENT OUTCOMES
                                                                     Government Outcome/
Output Name
                                                                     Strategic Governance
Workplace Health and Safety Services (including                      A strong diversified economy
Workers’ Compensation Policy)
Private Sector Industrial Relations Services                         A strong diversified economy

Administration of the Industrial Court and                           A strong diversified economy
Commission System
Electrical Safety Services                                           Safe and secure communities

Public Sector Industrial and Employee Relations                      Delivering responsive government
Services




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3-4
DEPARTMENTAL FINANCIAL SUMMARY
                                                                                    2005-06
                                                                                                       2005-06       2006-07
                                                                                   Adjusted
                                                                                                    Est. Actual     Estimate
                                                                                    Budget
                                                                                                          $’000        $’000
                                                                                      $’000

CONTROLLED
 Income
    Output revenue                                                                     53,604             52,095      54,086
    Own source revenue                                                                 40,278             42,443      44,759
 Total income                                                                          93,882             94,538      98,845

  Total expenses                                                                       94,098             94,570      99,184

  Operating Surplus/ (Deficit)                                                           (216)              (32)       (339)

NET ASSETS                                                                              4,301              2,594       1,104

ADMINISTERED
 Revenue
    Administered item revenue                                                               ..                 ..          ..
    Other administered revenue                                                         32,170             32,844      35,243
 Total revenue                                                                         32,170             32,844      35,243

  Expenses
     Transfers of administered revenue to Government                                   32,170             32,844      35,243
     Administered expenses                                                                  ..                 ..          ..
  Total expenses                                                                       32,170             32,844      35,243

Notes:
1. Explanations of variances are provided in the Explanation of Variances in the Financial Statements section and Output
   Income Statements.
2. The financial statements reflect adjustments for Machinery of Government changes which took effect during 2005-06.
   Further detail of these adjustments is contained in the Explanation of Variances in the Financial Statements section.



APPROPRIATIONS
                                                                                                         2005-06     2006-07
                                                                                                         Budget     Estimate
                                                                                                           $’000       $’000

Controlled Items
   Departmental Outputs                                                                                   55,669     54,086
   Equity Adjustment                                                                                         477     (1,151)

Administered Items                                                                                             ..          ..

Vote Total                                                                                                56,146      52,935

Note:
1. A reconciliation of appropriations to the Financial Statements follows the Financial Statements.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3-5
STAFFING1
                                                                                               2005-06 Est.           2006-07
Output/Activity                                                                    Notes
                                                                                                     Actual          Estimate

OUTPUTS
 Workplace Health and Safety Services (including                                     1,2,3               485.7           498.2
 Workers’ Compensation Policy)

  Private Sector Industrial Relations Services                                         1,2               201.4           198.2

  Administration of the Industrial Court and Commission                              1,2,4                46.3             43.0
  System

  Electrical Safety Services                                                           1,2                75.6             77.9

  Public Sector Industrial and Employee Relations                                      1,2                30.9             31.2
  Services

Total                                                                                                    839.9           848.5

Notes:
1. Full-Time Equivalents (FTEs) as at 30 June.
2. Corporate services are provided to the department by Corporate Solutions Queensland (CSQ) under the Shared Service
   Provider arrangement. The output staffing figures in this table do not include corporate services staff employed by CSQ.
   However, internal departmental strategic and tactical level staff numbers are distributed across outputs on an allocated FTE
   basis (i.e. staff employed in corporate support roles).
3. Changes are mainly due to the appointment of additional workplace health and safety inspectors to respond to growth in
   higher risk industries and new asbestos management regulations and the reallocation of internal corporate support for
   strategic and tactical level services.
4. Changes are mainly due to the anticipated non-filling of vacant positions pending the outcome of the High Court challenge
   to the federal government’s Work Choices legislation and reallocation of internal corporate support for strategic and tactical
   level services.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                      3-6
2006-07 OUTPUT SUMMARY
                                                                                   Sources of Revenue
                                         Total Cost             Output                 User              C’wealth     Other
Output
                                              $’000            Revenue              Charges              Revenue    Revenue
                                                                  $’000               $’000                 $’000      $’000

Workplace Health and                           55,040              22,468                  310                 ..     32,456
Safety Services (including
Workers’ Compensation
Policy)

Private Sector Industrial                      22,069              21,841                  239                 ..        66
Relations Services

Administration of the                           7,591               7,303                     3                ..         2
Industrial Court and
Commission System

Electrical Safety Services                     11,077                     ..            2,849                  ..      7,889

Public Sector Industrial                        2,858               2,474                  394                 ..         2
and Employee Relations
Services
Total                                          98,635              54,086               3,795                  ..     40,415

Notes:
1. Explanations of variances are provided in the Financial Statements and Output Income Statements.
2. The total revenue sources do not equal the Operating Revenue in the Departmental Financial Summary Table as the
   department provides corporate services to the Department of Employment and Training.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3-7
                                          OUTPUT PERFORMANCE


OUTPUT:                                   Workplace Health and Safety Services (including
                                          Workers’ Compensation Policy)

RELATED OUTCOME:                          A strong diversified economy

DESCRIPTION
The output develops and implements legislative, compliance and enforcement strategies and
activities to improve workplace health and safety in Queensland, and provides policy advice
on workers’ compensation matters. Client groups include employers, workers, self-employed
people, insurers and the community.

Strategies and activities include:
• development of the legislative framework and standards for workplace health and safety
    and workers’ compensation
• inspection, advisory and enforcement activities to promote compliance with workplace
    health and safety laws and standards
• information, education and training activities to assist industry, employees and the
    community reduce the risk of work-related injury and disease in the workplace
• strategic policy advice to the Minister on workplace health and safety and workers’
    compensation matters
• support for statutory industry bodies including the Workplace Health and Safety Board
    and Industry Sector Standing Committees
• management of registration, approval and accreditation systems required under the
    Workplace Health and Safety Act 1995.

REVIEW OF OUTPUT PERFORMANCE

Recent Achievements
•    The Queensland Workplace Health and Safety Strategy 2004-2012, released in April
     2004, established a comprehensive plan of action to substantially improve Queensland’s
     workplace health and safety performance. The strategy is underpinned by five three-year
     industry action plans. The strategy also establishes targets for the reduction of workplace
     fatalities and injuries. Over the eight-year period to 30 June 2012 the target is at least a
     20% reduction in the work-related fatalities and at least a 40% reduction in workplace
     injury. In the period 2000-01 to 2004-05, the workplace injury rate in Queensland
     declined by 11%.

•    During 2005-06, a range of legislative changes were approved by the Queensland
     Parliament to improve safety and fairness.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3-8
     In October 2005, Parliament passed the Workers’ Compensation and Rehabilitation and
     Other Act Amendments Bill 2005. This legislation enhanced workers’ compensation
     benefits for injured workers and their families; protected the workers’ compensation
     scheme from the impacts of employers exiting to the federal government self-insurance
     scheme; adopted aspects of the National Standard for Construction Work; and extended
     the licensing requirements for the removal of asbestos containing material and adopted
     the National Code for the Management and Safe Removal of Asbestos. In March and
     April 2006, more than 1,500 people attended seminars at 13 locations across Queensland
     to explain new workplace health and safety laws.

•    Amendments to the Workers’ Compensation and Rehabilitation Act 2006, passed by
     Parliament on 30 March 2006, reaffirmed the independent and non-adversarial nature of
     the Medical Assessment Tribunals, following a court decision.

• The Workplace Health and Safety and Other Acts Amendment Act 2006 (the Amendment
  Act) gave union officials the right to enter workplaces on health and safety grounds.
  Under the amendments the Queensland Industrial Relations Commission will issue
  permits that authorise a representative of a registered industrial organisation to enter a
  workplace where there is a reasonable suspicion that a contravention of the Act involving
  workplace health and safety has happened or is happening. Authorised representatives
  will be required to undertake approved occupational health and safety training.

     The Amendment Act also amended the Workers’ Compensation and Rehabilitation Act
     2003 to require an employer to keep open an injured worker’s job for a period of 12
     months. This requirement was previously contained in the Industrial Relations Act 1999.
     In comparison, the new federal legislation makes it unlawful to dismiss a worker because
     of a temporary absence due to illness or injury, unless the absence is longer than three
     months in any 12 month period.

•    The Workplace Health and Safety Regulation 1997 was amended to allow the transition
     of assessments for prescribed occupations to the vocational education and training sector
     by 1 July 2007. Transitional arrangements are progressing to plan with the Department of
     Employment and Training and registered training organisations.

•    To improve health and safety outcomes in Queensland’s building and construction
     industry, a range of initiatives were undertaken during 2005-06. Queensland was the first
     Australian state to adopt the National Standard for Construction Work to improve safety
     for construction workers and provide a more consistent approach to national regulations.
     The Formwork Code of Practice 2006, which commenced on 1 January 2006, focuses on
     safe work systems for formwork. Seminars providing information about the code were
     delivered in partnership with industry associations. Following a compliance campaign
     targeting tower and mobile cranes in 2005, a draft Code of Practice for Tower and Mobile
     Cranes was developed.

•    During 2005-06, workplace health and safety inspectors undertook a range of compliance
     campaigns focused at national, State-wide, and regional levels.

     In cooperation with other Australian jurisdictions, Workplace Health and Safety Services
     contributed to four national campaigns: rural plant suppliers and manufacturers; falls
     from heights in road transport; hazardous substances in manufacturing; and
     demolition/asbestos.
2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3-9
     State-wide campaigns addressed rural mobile plant, amusement devices at agricultural
     shows, and retail/wholesale distribution centres. The rural plant campaign included 36
     State-wide pre-audit seminars attended by 633 rural producers. The amusement devices
     audit checked maintenance and non-destructive testing records of critical components of
     rides, electrical components, and rider restraints. The distribution centres audit involved
     the assessment of 300 workplaces.

     Targets for regional compliance interventions were identified using an evidence-based
     approach, in particular the black spot methodology. The interventions ranged from
     compliance audits to education sessions and research projects. Interventions targeted
     process workers in small goods manufacturing in south-west Queensland, childcare
     centres and tilt-up construction in the Brisbane south and Gold Coast region,
     manufacturing and scaffolding in the Brisbane north region and mango harvesting and
     occupational diving in north Queensland.

•    In addition to a program of proactive audits, inspectors continued the strong emphasis on
     serious incidents and complaint investigation. As at 31 March 2006, inspectors visited
     more than 13,300 workplaces and issued more than 15,000 notices requiring
     improvements in health and safety. The output continued its strong focus on enforcement
     and prosecution as a means of promoting compliance with health and safety laws. As at
     31 March 2006, 133 prosecutions were finalised, resulting in fines of $2.8 million.

•    The output assisted with the Cyclone Larry relief effort providing on-site support,
     including a contingent of 16 inspectors, and information about staying safe during the
     clean up. A number of fact sheets with practical advice on electrical safety and safe
     handling of asbestos were distributed in affected communities.

•    The new workplace health and safety advisory service to assist small business operators
     to prevent injury was launched in June 2005. The service targets workplaces in high risk
     industries with 10 or fewer workers. As at 31 March 2006, the advisory service completed
     613 workplace consultations and information sessions to groups of small business
     operators. Six industry associations have entered into agreements to deliver practical
     guidance products to their small business members as part of a pilot grants program.

•    Workplace Health and Safety Services assisted Queensland Health, the Local
     Government Association of Queensland, Brisbane City Council, the Department of Local
     Government, Planning, Sport and Recreation and the Environmental Protection Agency to
     develop an information strategy to alert home owners and tradespersons to the risks of
     asbestos and ways of minimising exposure.

• Implementation of the output’s strategy to reduce work-related psychological injury is
  continuing. Specialist psychosocial advisers have assisted employers to implement
  procedures to reduce the risk of work-related psychological injury. These advisers are also
  improving the skills of workplace health and safety inspectors and Infoline staff so they
  are able to better respond to complaints. Improved investigation and operational
  procedures for inspectors dealing with psychological injury were also implemented.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 10
• WorkSafe Week, held from 23-29 October 2005, focused on strains and sprains as the
  most common types of injuries in Queensland workplaces. In excess of 85 events were
  held across the State with 24 industry associations and trade union partnership events,
  involving approximately 2,100 attendees.

•    The output continued to administer a rebate scheme for WorkCover policy holders to fit
     rollover protective structures to their existing wheeled tractors. The rebate scheme will
     end on 27 April 2007.

Future Developments
•    Implementation of the Queensland Workplace Health and Safety Strategy 2004-2012 and
     the five Industry Action Plans will continue. These plans guide the output’s approach to
     the prevention of work-related deaths, injuries and disease to ensure the long-term targets
     for reduction in fatalities and injuries are achieved.

•    During 2006-07 occupational health and safety priorities include a review of national
     standards and codes of practice on plant, working in confined spaces, major hazard
     facilities, certification, falls in the building industry and manual handling. Major workers’
     compensation activities will include a focus on an ageing workforce, national
     consistency, self-insurance, return to work strategies and psychological injury claims.

•    Queensland is committed to consistency in occupational health and safety and, to the
     extent that it can be achieved, workers’ compensation arrangements. The output is
     actively cooperating with states, territories and the federal government in the
     development of nationally consistent standards, codes and guidance material through the
     Australian Safety and Compensation Council.

•    The Child Employment Act 2006 will be supported by a workplace health and safety code
     of practice for young workers.

•    In preparation for the construction of significant tunnels in Brisbane, a safe tunnelling
     strategy will be developed. This will include the development of a code of practice for
     safe tunnelling work and upgrading the skills of inspectors with respect to safety issues
     relating to tunnel construction.

•    The output will continue to consolidate and improve its evidence-based approach to
     decision-making. A major activity for 2006-07 will be a review and evaluation of the
     occupational injury blackspot methodology. With increased data available through the
     workers’ compensation scheme, improvements and enhancements to the precision and
     sensitivity of the methodology are planned.

•    Additional inspectors will be employed in regional areas to respond to growth in higher
     risk industries and new industries, and new asbestos management regulations including
     licensing and compliance activities. The small business advisory service will revise its
     focus to include timber and food product manufacturing industry sectors and broaden the
     scope of the program to include small business operators with up to 20 employees.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 11
•    The output will continue its strong focus on education and information. A range of
     channels and techniques will be used, including State-wide events such as Workplace
     Health and Safety Week, regional workshops, advertising and publicity, and information
     on the department’s internet site. Queensland will conduct a State-based workplace health
     and safety awards program, the winners of which will compete in the national
     competition.

•    The implementation of the new codes of practice for mobile cranes and tower cranes will
     be supported by seminars across the State. The seminars will be conducted jointly with
     industry to promote key elements of the codes.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 12
                                                 OUTPUT STATEMENT
Output: Workplace Health and Safety Services (including Workers’ Compensation Policy)
                                                                               2005-06                2005-06         2006-07
Measures                                                       Notes
                                                                            Target/Est.            Est. Actual     Target/Est.
Quantity
State-wide            compliance              campaign
implemented                                                                         100%                   100%         100%

% of notices that directly protect worker
health and safety                                                                 85-95%                    94%       85-95%

Number of prosecutions finalised                                                       125                  166           130

Clients accessing information and advisory
services                                                                         850,000                 860,000      860,000

Number of occupational licensing
transactions                                                                       57,000                 65,000       67,000
Quality
Reduction in the incidence of compensable
workplace injury by at least 40% by 30 June
2012 (20% reduction by 30 June 2007) in
accordance with the National strategy                                1                  4%                    ..             ..

Reduction in the incidence of compensable
workplace injury by at least 40% by 30 June
2012 (20% reduction by 30 June 2007) in
accordance with the Queensland strategy                              2                  5%                   3%           5%

% of improved compliance within a targeted
industry (or specific workplace health and
safety hazard)                                                                        10%                   10%          10%

Client satisfaction with:
• Inspectorate contact                                                            75-80%                   85%        75-80%
• Policy development                                                 3            80-85%                  74.4%       80-85%
• Seminar programs                                                                80-85%                   80%        80-85%

% of successful prosecutions                                                          85%                   85%          85%
Timeliness
Prosecution matters actioned within nine
months of incident                                                   4            70-80%                    70%       70-80%

Investigations completed within specified
timeframes                                                                        70-80%                    71%       70-80%

Policy briefs to the Minister completed within
deadlines                                                                       90-100%                     90%      90-100%
Location
Regional Performance Agreements
negotiated and agreed with all regions to
ensure State-wide delivery of WHSQ
services                                                                                6                      6            6
State Contribution ($’000)                                                         22,323                 21,318       22,468
Other Revenue ($’000)                                                              27,905                 29,497       32,766
Total Cost ($’000)                                                                 50,228                 50,634       55,040




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 13
Notes:
1. This measure is discontinued from 2005-06 and is replaced by a new measure “Reduction in the incidence of compensable
    workplace injury by at least 40% by 30 June 2012 (20% reduction by 30 June 2007) in accordance with the Queensland
    strategy”.
2. The Queensland strategy target, which mirrors the 10 year National strategy target, is a long term goal to be achieved over
    eight years. Many factors outside the control of the department impact on progress against the target resulting in
    unpredictable annual variations in the compensable workplace injury rate. It is expected that the rate of decline will vary
    throughout the strategy. An increased injury rate in some years is not necessarily an indication that the target will not be
    met by 2012. Although an annual decline of 5% will ensure the target is met: the decline will be slow at the beginning; will
    accelerate as the actions undertaken take effect; and will slow again as the relative rate of return on the actions undertaken
    declines towards the end of the strategy’s life. The measurement methodology and the data were updated and improved in
    2005-06. The 2005-06 estimated actual is based on the average annual reduction in workplace injury between 2000-01 and
    2004-05. See page 3-8 for a description of progress to date against the strategy targets using the revised methodology.
3. The satisfaction rate is based on a new survey and scale and therefore is not directly comparable to satisfaction rates
    reported in previous years. The actual satisfaction rate was calculated by excluding unsure respondents, hence it relates to
    only those satisfied and unsatisfied respondents.
4. Measure renamed from “Prosecution matters commenced within nine months of incident”. This measure reports on the
    percentage of matters notified to the WHSQ legal and prosecution unit that are actioned within nine months of the
    incident/event.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                      3 - 14
Output Income Statement – Workplace Health and Safety Services (including
Workers’ Compensation Policy)
                                                                                         2005-06         2005-06      2006-07
                                                                          Notes          Budget          Est. Act.   Estimate
                                                                                           $’000            $’000       $’000

Income
  Output revenue                                                                           22,323          21,318      22,468
  User charges                                                                   1            320             629         310
  Grants and other contributions                                                 5         27,125          28,378      31,996
  Other Revenue                                                                               460             490         460
  Gains on sale/revaluation of property, plant and                                              ..              ..          ..
  equipment and investments
Total income                                                                               50,228          50,815      55,234

Expenses
 Employee expenses                                                            2,6          34,429          35,844      38,449
 Supplies and services                                                          3          14,517          13,865      14,864
 Grants and subsidies                                                           7             394             420       1,229
 Depreciation and amortisation                                                4,8             776             379         391
 Finance/borrowing costs                                                                        ..              ..          ..
 Other expenses                                                                               112             126         107
 Losses on sale/revaluation of property, plant and                                              ..              ..
 equipment and investments                                                                                                  ..
Total expenses                                                                             50,228          50,634      55,040

OPERATING SURPLUS/ (DEFICIT)                                                                       ..         182         194


Notes:
Significant variations between 2005-06 Budget and 2005-06 Estimated Actual:
1. User charges from Commonwealth construction projects are higher than forecast.
2. The variation relates mainly to an increase in the number of staff employed earlier than anticipated.
3. Savings were achieved to fund the increase in staff numbers.
4. The variance relates to Accounting Policy Guideline 20 (APG 20) changes as detailed in the foreword note in the
    Explanation of Variances in the Financial Statements section.

Significant variations between 2005-06 Budget and 2006-07 Estimate:
5. Increased funding for additional regional services for high risk industries and asbestos management.
6. See note 5 and provision for enterprise bargaining salary increases.
7. The increase in grants expenses relates mainly to small business initiative grants and the Queensland Public Sector Injury
    Prevention and Management Strategy project.
8. The variance relates to APG 20 changes as detailed in the foreword note in the Explanation of Variances in the Financial
    Statements section.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 15
                                          OUTPUT PERFORMANCE


OUTPUT:                                   Private Sector Industrial Relations Services

RELATED OUTCOME:                          A strong diversified economy

DESCRIPTION
The output delivers private sector industrial relations services including:
• advice to government on industrial relations legislation and policy and facilitating the
   implementation of that legislation and policy
• compliance and information services in relation to industrial relations legislation and
   industrial instruments
• representing government in industrial tribunals and courts.

A State-wide inspectorate provides compliance services and advice to the community on
industrial relations legislation, awards and agreements.

Key stakeholders include government, employers, unions and employees.

REVIEW OF OUTPUT PERFORMANCE

Recent Achievements
•    The commencement of the federal government’s Workplace Relations Amendment (Work
     Choices) Act 2005 on 27 March 2006 has had a significant impact on the operation of the
     department. The Queensland Government’s High Court challenge to the changes was
     heard in May 2006 and the outcome is unlikely to be known until late 2006 or early 2007.

•    This output has taken a leading role in implementing the Queensland Government’s
     response to the federal ‘Work Choices’ changes. Key elements of the response include:
     the new advisory service for employers and employees, the Fair Go Queensland Advisory
     Service Hotline (operative from December 2005); funding to provide advocacy for
     disadvantaged workers; and a program to provide advice to businesses on ‘best practice’
     models for cooperative and safe workplaces.

     The Industrial Relations Act 1999 was amended to protect the entitlements of workers.
     The amendments, approved in August 2005, protect employee rights to long service
     leave, superannuation, parental leave, personal leave, classifications and skill-based
     career paths, stand-down provisions, ordinary time hours of work, meal breaks, annual
     leave loading, notice of termination, public holiday penalties, overtime loadings, casual
     loadings, shift loadings, penalty rates, redundancy pay, jury duty, and pay and conditions
     for outworkers on awards.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 16
•    The Child Employment Act 2006, passed by Parliament in February 2006, will commence
     on 1 July 2006. The Act and its supporting regulation seeks to ensure that work does not
     interfere with children’s schooling and that children are prevented from performing work
     that may be harmful to their health or safety or their physical, mental, moral or social
     development. A promotions campaign was undertaken to inform the community about
     these new laws before they came into effect, including media advertising and publishing
     of a Child Employment Guide explaining the new laws.

•    The Queensland Government made a submission in the 2006 State Wage Case to the
     Queensland Industrial Relations Commission supporting an increase of $20 a week to all
     State award rates of pay and the Queensland minimum wage, with an operative date of
     1 September 2006. The proposed increase will provide a real benefit to the lowest paid
     employees in Queensland and is considered to be responsible and affordable.

•    The Queensland Government responded to the ACTU work and family claim as part of a
     joint Labor States and Territories submission to the Australian Industrial Relations
     Commission (AIRC). The AIRC decision, in August 2005, closely reflected the position
     put forward by the Government. The Queensland Government implemented the test case
     decision through a number of amendments to the Industrial Relations Act 1999 which
     improved parental and carers leave provisions and provided improved entitlements to
     casuals.

•    During the period 1 July 2005 to 31 March 2006, evidence-based and targeted State-wide
     audits were conducted across 10 industries, focusing on poor performing employers. A
     total of 1,376 employers were audited, with over $1 million in wages adjusted on behalf
     of 8,486 employees. The audits found that 67% of employers were in full compliance.

•    In the nine months to March 2006, the output’s industrial inspectors:
     - investigated more than 5,000 complaints;
     - issued more than 40 on-the-spot fines for offences under the Industrial Relations Act
         1999;
     - undertook more than 100 prosecutions for the recovery of wages and offences;
     - completed almost 1,400 general audits; and
     - recovered more than $7.5 million on behalf of employees through wage complaint
         activity, audits and prosecutions.

•    In the period 1 July 2005 to 31 March 2006, the Wageline website provided over 760,000
     people with accurate and timely industrial relations information. A new Check Your Pay
     feature and a new Fair Go Calculator were added to the website in 2005-06. The Check
     Your Pay tool is being used primarily by employers and employees to readily determine
     the correct wages to be paid under popular State industrial awards. The Fair Go
     Calculator allows clients to compare entitlements under Queensland state awards with
     Australian Workplace Agreements under the federal Work Choices legislation.

•    The output has released new resources to help businesses and workers balance work and
     family responsibilities. The web-based information resource, with links to other relevant
     government and non-government websites, creates a comprehensive source of
     information on balancing work and family responsibilities for the community.



2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 17
•    In late 2005 the department, in association with the Australian Centre for Industrial
     Relations Research and Teaching conducted a Queensland Workplace Industrial
     Relations Survey. The survey provides important statistical information on industrial
     relations arrangements and practices in Queensland and will be used to provide base line
     data for subsequent research. The report outlining the results of the survey was published
     on the department’s website.

Future Developments
•    Responding to the implementation of the federal Workplace Relations Amendment (Work
     Choices) Act 2005 will be a major focus for this output’s activities in 2006-07. Until the
     outcome of the High Court challenge to the Work Choices legislation is known, the
     changes will remain in effect and are expected to place significant demand on the output
     for information and compliance activities.

•    Work Choices has many areas where the potential to exploit vulnerable workers is high,
     for example the lack of safeguards for agreement-making and unfair dismissals. The
     department intends to focus information, advice and audit activities on assisting
     vulnerable workers impacted by Work Choices. The 1300 Hotline, established as part of
     the Fair Go Queensland Advisory Service, will continue to provide information and
     advice about the new industrial relations system.

•    The department will also:
     - develop ‘best practice’ guides for employers in developing workplace agreements;
     - arrange comprehensive research and analysis to monitor workplace conditions;
     - research and develop, in partnership with universities, tools to assist employers and
        unions to achieve better industrial relations outcomes at the workplace level;
     - develop the Work and Family measure and pilot program outcomes for promotion to
        workplaces; and
     - administer a grants program to assist workplaces develop innovative programs to
        promote better industrial relations practices at the workplace level.

• The Child Employment legislation will be supported by a workplace health and safety
  code of practice for young workers commencing at the same time as the Act (from 1 July
  2006). A code of practice for the employment of young people in the entertainment
  industry will be introduced within 12 months of the commencement of the Act. A new
  audit function related to the child employment legislation is planned for 2006-07.

•    The department will be investigating the use of Work and Family policies in Queensland
     through the ‘Queensland Household Survey’ undertaken by Queensland Treasury. This
     measure will assist in evaluating the effectiveness of departmental work and family
     initiatives across Queensland.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 18
                                                 OUTPUT STATEMENT
Output: Private Sector Industrial Relations Services
                                                                               2005-06                2005-06        2006-07
Measures                                                       Notes
                                                                            Target/Est.            Est. Actual    Target/Est.
Quantity
Completion of agreed legislative/policy
program as set by the Minister                                                      >90%                 100%          >90%

% of employees covered by State Industrial                                                      Pre 27/3/06 -
Relations legislation                                                                                   70%
                                                                                               Post 27/3/06 -
                                                                   1,2                55%               40%             40%

Audits conducted                                                   2,3              2,500                 2,000        2,500

IR complaints investigated and finalised                           2,4             >8,000                 6,500       >6,000

Clients assisted through telephone and
internet information services                                        2         1,200,000             1,200,000     1,200,000

Quality
Level of client satisfaction in relation to:
• Wage complaints                                                                   >90%                  97%          >90%
• Information services                                                              >90%                  98%          >90%
• Policy                                                                            >80%                 100%          >80%

Wage dispersion
• D5-D1                                                         2,5,6                1.43                    ..         1.43
• D9-D1                                                         2,5,6               <2.42                    ..        <2.42
• D9-D5                                                         2,5,6                <1.7                    ..         <1.7

Industrial disputation – Strike Rate (working                               <Average of                           <Average of
days lost per 1,000 employees)                                                 6.25 per                              6.25 per
                                                                   2,7          quarter                     4.4       quarter
Success rate in wages recovery court
hearings                                                                            >90%                   97%         >90%

Timeliness
Legislation and policy completed within
agreed timeframes                                                                   >90%                 100%          >90%

Written requests responded to within five
working days                                                                        >90%                   97%          90%

Wage recovery investigations completed
within three months                                                                   75%                  70%          75%

Location
Performance frameworks in place with all
DIR regions to ensure delivery of IR services
in Queensland                                                                       100%                 100%          100%

State Contribution ($’000)                                                         21,188                20,039       21,841
Other Revenue ($’000)                                                               1,352                 1,560          305
Total Cost ($’000)                                                                 22,540                21,519       22,069




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                  3 - 19
Notes:
1. The 2006-07 target reduced as a result of the introduction of the federal WorkChoices legislation.
2. The federal government’s Work Choices amendments to the Workplace Relations Act 1996 will have a significant impact
    on the State industrial relations system. It is expected that the coverage of the State system will be reduced to around 40%
    of the workforce. This will have an impact on inspectorial, regional office and Wageline services. Assessment of the impact
    of this change is difficult to predict. For example, a high proportion of those who lodge complaints with the department are
    employed in small unincorporated businesses and will not be affected by Work Choices. Work Choices may result in
    accelerating wage dispersion trends if it results in a reduction in increases to minimum wages while allowing high end
    wages to increase unchecked. Work Choices may also result in an increased level of disputation.
3. Measure renamed from “General inspections conducted”.
4. The 2006-07 target reduced as a result of the introduction of federal WorkChoices legislation and the cessation of the
    contract with the federal government for federal award wage complaint investigations. Wage complaints received have
    decreased as a result of audit activity.
5. There are many factors outside the control of the department that impact on the achievement of these measures. However,
    they are key measures for the output. The target is based on what could reasonably be achieved if other factors had little or
    no impact.
6. The Australian Bureau of Statistics (ABS) provides a measure of wages for full-time adult non-managerial employees at
    various points along the wage distribution. The three measures of wage dispersion provided here represent the ratio
    between different points along that distribution (D1) or the 10th percentile. The D9-D1 measure is the ratio of the wage 10%
                                                      th
    from the top of the distribution (D9) or the 90 percentile to the median wage (D5). An increase in the ratio indicates an
    increase in wage dispersion (i.e. an increase in wage inequality). The decision by the ABS to measure Employee Earnings
    and Hours only on a bi-annual basis means it is not possible to report this measure on an annual basis.
7. The estimated actual is based on latest available data for the 12 months to December 2005.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                     3 - 20
Output Income Statement – Private Sector Industrial Relations Services
                                                                                         2005-06         2005-06      2006-07
                                                                          Notes          Budget          Est. Act.   Estimate
                                                                                           $’000            $’000       $’000

Income
  Output revenue                                                                1          21,188          20,039      21,841
  User charges                                                                2,5           1,298           1,498         239
  Grants and other contributions                                                               48              61          60
  Other Revenue                                                                                 6               1           6
  Gains on sale/revaluation of property, plant and                                              ..              ..          ..
  equipment and investments
Total income                                                                               22,540          21,599      22,146

Expenses
 Employee expenses                                                            3,6          15,136          14,406      14,122
 Supplies and services                                                                      5,815           5,707       5,833
 Grants and subsidies                                                           7           1,140           1,101       1,698
 Depreciation and amortisation                                                4,8             419             267         390
 Finance/borrowing costs                                                                        ..              ..          ..
 Other expenses                                                                                30              38          26
 Losses on sale/revaluation of property, plant and                                              ..              ..          ..
 equipment and investments
Total expenses                                                                             22,540          21,519      22,069

OPERATING SURPLUS/ (DEFICIT)                                                                       ..          80          77


Notes:
Significant variations between 2005-06 Budget and 2005-06 Estimated Actual:
1. The variation reflects savings made in expense outlays in 2005-06 (with associated revenue deferred to 2006-07) to
    address the expected impacts on industrial relations service delivery in 2006-07 as a result of the introduction of the
    federal Work Choices legislation.
2. The variation is due to an increase in revenue received for services rendered for the contract with the Australian
    Government for federal industrial relations services to 30 June 2006.
3. See note 1.
4. The variance relates to Australian Policy Guideline 20 (APG 20) changes detailed in the foreword note in the Explanation
    of Variances in the Financial Statements section.

Significant variations between 2005-06 Budget and 2006-07 Estimate:
5. The variation is mainly due to the cessation of the contract with the Australian Government for federal industrial relations
    services as at 30 June 2006.
6. See note 5.
7. The increase in grant expenses relates to the provision of funding to address advocacy for disadvantaged workers arising
    from the federal Work Choices legislation.
8. The variance relates to APG 20 changes detailed in the foreword note in the Explanation of Variances in the Financial
    Statements section.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 21
                                          OUTPUT PERFORMANCE


OUTPUT:                                   Administration of the Industrial Court and
                                          Commission System

RELATED OUTCOME:                          A strong diversified economy

DESCRIPTION

The Industrial Court of Queensland, the Queensland Industrial Relations Commission
(QIRC) and the Industrial Registry are constituted under Chapter 8 of the Industrial Relations
Act 1999.

The output has a major responsibility in providing a fair system of industrial relations that
supports economic prosperity and social justice.

In particular, the Commission provides an independent conciliation, arbitration and
agreement approval service in respect of industrial matters including awards; agreements;
prevention and settlement of industrial disputes and related matters; unfair dismissals; unfair
contracts; and wage recovery matters.

REVIEW OF OUTPUT PERFORMANCE

Recent Achievements
•    Performance indicators for timeliness of processing dispute notifications continued to be
     achieved at 99% efficiency and other applications at 95% efficiency.

•     The second round of the Award Review process (Award Review Mark II), a requirement
      under Section 130 of the Industrial Relations Act 1999, which commenced in 2004-05 to
      ensure provisions remain current and relevant, continued into 2005–06. Items considered
      as part of Award Review Mark II are the 38 hour week, wage increases granted by
      Statement of Policy, and awards not previously reviewed.

• The Full Bench of the Commission, as part of Award Review Mark II, declared by
  General Ruling adjustments to award wages or salaries to take into account any previous
  wage and allowance increases awarded during the course of the wage case decisions
  granted from the period 1 January 1987 through to 1 January 2005, effective from 15
  August 2005.

•     The Full Bench of the Commission declared by General Ruling a wage adjustment of
      $17 per week increase in award rates of pay. By the same General Ruling, the minimum
      wage for all full-time employees in Queensland was increased to $484.40 per week with
      a proportionate amount for junior, part-time and casual employees. The effective date for
      the increased rates was set at 1 September 2005.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 22
•     On 7 September 2005, the Full Bench granted the dental assistant profession an 11% pay
      increase plus an ongoing annual 1.25% equal remuneration component under Australia’s
      first arbitrated pay equity decision. The 11% increase is to be phased in via five
      instalments of $12.75 or $12.70 per week to be paid every six months until December
      2007. The increase accommodated for the differential between enterprise bargaining
      outcomes able to be secured by the predominately male occupations in question from
      1997 to 2004 and those increases available under State Wage Cases for the same period.
      The annual 1.25% equal remuneration component is to supplement award increases from
      State Wage Cases recognising the almost complete absence of formalised enterprise
      bargaining for dental assistants.

•     The Full Bench of the Commission declared by General Ruling to provide entitlements
      for make-up pay for permanent full-time and part-time employees who have been
      summonsed to attend jury service, effective from 15 September 2005.

•     The Full Bench of the Commission heard an application to amend the trading hours of
      South-East Queensland that effectively sought for the major supermarkets and shopping
      centres in Regional Queensland (Southern and Eastern Area) to be able to trade on
      Sundays. Interstate inspections, and extensive inspections and hearings in regional
      Queensland were undertaken. On 15 September 2005, the Full Bench dismissed the
      application. In doing so, the Full Bench stated that there was no evidence that the long
      term economic well-being of the retail sector would suffer by the denial of Sunday
      trading in regional Queensland, but there was evidence that it may if Sunday trading was
      introduced in the area.

•     The Full Bench of the Commission, on 20 February 2006, dismissed an application by
      the federal Minister for Employment and Workplace Relations to have the 2006 State
      Wage Case adjourned until after the Australian Fair Pay Commission had made its first
      minimum wage determination under the Workplace Relations Amendment (Work
      Choices) Act 2005. The Full Bench stated there was a specific obligation under the
      Industrial Relations Act 1999 that the Commission ensure that a general ruling about a
      minimum wage was made each calendar year.

•     In an interim decision of 24 March 2006, the Full Bench of the Commission awarded
      wage increases to child care workers consistent with the January 2005 decisions of the
      AIRC in respect of the Victorian and ACT child care awards. The increases, based on
      current classification structure, are to be paid in six instalments over 2.5 years
      commencing 10 April 2006. The Full Bench recognised the evidence that the work
      performed by child care workers has been historically undervalued based on their gender.

•     The new Industrial Matters System (IMS) that supports the Commission and Registry
      judicial and business processes was implemented in August 2005 which allowed the
      Commission and Registry to implement changed business processes to maximise
      efficient delivery of quality services.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 23
Future Developments
•    The commencement of the federal government’s Workplace Relations Amendment
     (Work Choices) Act 2005 on 27 March 2006 will cause significant change to
     Queensland’s industrial relations system. The full impact on the workload of the
     Commission and Registry will not be known until the High Court decides in relation to
     the Queensland Government’s challenge to the new federal laws.

    The Government is confident about the challenge. Legal advice confirms there are strong
    grounds to argue the federal government’s industrial relations laws are unconstitutional.
    The Government will address the role and workload of the Commission and Registry
    when the challenge is determined.

•    In the interim the Commission and Registry will continue to undertake a range of
     activities. Queensland Commissioners, in their dual capacity as federal Commissioners,
     can provide dispute resolution for parties in the federal system. Many parties still prefer
     to use State Commissioners.

•    The Commission and Registry will also undertake a range of internal projects designed to
     further enhance service delivery, including:
     - reviewing the Tribunal Rules to reflect new business processes;
     - enhancing both the internal and external websites including publishing decisions,
         awards and related documentation on the QIRC website; and
     - developing electronic information guides and fact sheets, particularly to assist
         industrial organisations’ Committees of Management and organisations’ members.

•    The Workplace Health and Safety and Other Acts Amendment Act 2006 gave union
     officials the right to enter workplaces on health and safety grounds. Under the
     amendments the Industrial Registrar will issue permits that authorise a representative of a
     registered industrial organisation to enter a workplace where there is a reasonable
     suspicion that a contravention of the Act involving workplace health and safety has
     happened or is happening.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 24
                                                 OUTPUT STATEMENT
Output: Administration of the Industrial Court and Commission System
                                                                                2005-06               2005-06       2006-07
Measures                                                     Notes
                                                                             Target/Est.           Est. Actual   Target/Est.
Quantity
Total applications received                                      1,2                 4,350               3,430          3,350

•    Dispute notifications received                                1                   550                 430            250
•    Agreements received                                           1                   900                 500            100
•    All other applications received                             1,2                 2,900               2,500          3,000

Agreements certified/approved by the                                1                   800               500              100
Commission

Quality
Level of client satisfaction with Registry                          3                  95%                87%           >85%
services

Timeliness
% of cases completed within three months                                             >75%                 80%           >75%

Parties notified of dispute conference within                                          99%                99%             99%
five working hours

Initial processing of applications within                                              95%                95%             95%
eight working hours

Initial processing of agreements within                                                90%                95%             90%
three working days

Location
Equitable access to QIRC services to all                            4                100%                 75%           100%
Queenslanders

Cost ($)
Average cost per application received for                           5                1,542               2,180          2,270
Commission Services

State Contribution ($’000)                                                           6,715               7,176          7,303
Other Revenue ($’000)                                                                    2                   8              5
Total Cost ($’000)                                                                   6,717               7,466          7,591
Notes:
1. Reflects the anticipated impact on the workload of the QIRC from the introduction of the federal industrial relations reforms
    on 27 March 2006.
2. The number of applications lodged includes a reduction in other applications (certified agreements, dispute notifications
    and reinstatement applications). However, the 2006-07 estimate includes an increase due to changed compliance policy
    within the industrial inspectorate of the Department of Industrial Relations regarding wage recovery notifications.
3. This is only the second year that this survey has been conducted. The 2005-06 target was based on the first year’s result
    (2004-05) of 91%. The 2006-07 target has been adjusted to >85%.
4. Stage 2 of the Industrial Matters System Project involving online lodgment of forms has been placed on hold awaiting the
    outcome of the High Court challenge to the federal industrial relations reforms.
5. The increase in cost per application for 2005-06 is due to a decrease in the number of applications received.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                    3 - 25
Output Income Statement – Administration of the Industrial Court and
Commission System
                                                                                         2005-06         2005-06      2006-07
                                                                          Notes          Budget          Est. Act.   Estimate
                                                                                           $’000            $’000       $’000

Income
  Output revenue                                                              1,4            6,715          7,176       7,303
  User charges                                                                                   2              3           3
  Grants and other contributions                                                                 ..             3           2
  Other Revenue                                                                                  ..             2           ..
  Gains on sale/revaluation of property, plant and                                               ..             ..          ..
  equipment and investments
Total income                                                                                 6,717          7,184       7,308

Expenses
 Employee expenses                                                            2,5            4,882          5,661       5,619
 Supplies and services                                                                       1,682          1,632       1,795
 Grants and subsidies                                                                            ..             ..          ..
 Depreciation and amortisation                                                3,6              147            166         172
 Finance/borrowing costs                                                                         ..             ..          ..
 Other expenses                                                                                  6              7           5
 Losses on sale/revaluation of property, plant and                                               ..             ..          ..
 equipment and investments
Total expenses                                                                               6,717          7,466       7,591

OPERATING SURPLUS/ (DEFICIT)                                                                       ..       (282)       (283)


Notes:
Significant variations between 2005-06 Budget and 2005-06 Estimated Actual:
1. The increase in output revenue is for approved salary increases for Members of the Queensland Industrial Relations
    Commission.
2. The increase is due to approved salary increases for Members of the Commission and anticipated savings in salaries from
    the introduction of the Industrial Matters System not being realised to date.
3. The variance relates to Australian Policy Guideline 20 (APG 20) changes detailed in the foreword note in the Explanation of
    Variances in the Financial Statements section.

Significant variations between 2005-06 Budget and 2006-07 Estimate:
4. See note 1.
5. See note 2.
6. See note 3.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 26
                                          OUTPUT PERFORMANCE


OUTPUT:                                   Electrical Safety Services

RELATED OUTCOME:                          Safe and secure communities

DESCRIPTION
The output develops and implements legislative, compliance and enforcement strategies and
activities to improve electrical safety in Queensland. Client groups include employers,
workers, self-employed people, electricity entities, manufacturers, designers, suppliers and
importers of electrical equipment and the community.

Services include:
• development of the legislative framework, subordinate legislation and standards for
   electrical safety
• inspection, advisory and enforcement activities to promote compliance with electrical
   safety laws and standards
• information, education and training activities to assist industry, employees and the
   community reduce the risk of injury, fire and explosion and improve electrical safety
• strategic policy advice to the Minister on electrical safety matters
• advice to statutory bodies including the Electrical Safety Board, the Electrical Safety
   Education Council, the Electrical Licensing Committee and the Electrical Equipment
   Committee
• management of registration, approval and accreditation systems required under the
   Electrical Safety Act 2002.

REVIEW OF OUTPUT PERFORMANCE

Recent Achievements
• Queensland’s rate of electrical fatalities per million people continues to fall - from 3.58
  fatalities per million at June 2001 to 1.24 at June 2005 (five year moving average). This is
  substantially below the national five year moving average of 1.9 fatalities per million for
  the same period. Queensland’s rate of electrical fatalities per million people is expected to
  continue to fall when measured at June 2006.

• This output has continued to focus on the electrical safety priorities and strategies outlined
  in the Electrical Safety Plan for Queensland 2003-2008.

• The clean-up after Cyclone Larry generated a wide range of electrical safety risks,
  particularly in infrastructure repairs, domestic repairs, damage to electrical equipment and
  extensive use of generators. The department responded quickly with additional inspectors
  and educational fact sheets with an emphasis on advice to ensure safety of electrical
  workers, other workers and householders.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 27
• The Electrical Safety Regulation was amended from 1 October 2005 to clarify exclusion
  zone provisions, offences relating to untested equipment, provisions of emergency
  isolation of electric lines and updating fees relating to electrical equipment approval. Four
  new on-the-spot fines for offences under electrical safety legislation relating to
  requirements for testing electrical equipment were introduced.

• A further amendment to the Electrical Safety Regulation, effective from 1 April 2006,
  requires that all plug-in electrical equipment sold in Queensland has insulated pin plugs to
  provide additional protection against electric shock.

• On 1 March 2006, a new Code of Practice for Electrical Equipment in Rural Industry
  came into effect. The new code, developed after extensive consultation with industry, will
  help to protect farm owners and workers from injury from electrical equipment. The code
  is the recommended means of complying with obligations under the Electrical Safety Act
  2002 and provides for a simplified process for assessing risk and ensuring safety control
  measures are followed.

• To help electrical contractors check their own systems for compliance with electrical
  safety obligations under the Electrical Safety Act 2002, a self-auditing package has been
  drafted. Stakeholder feedback will be used to refine and finalise the package.

• The Electrical Safety Plan for Queensland 2003-2008 identifies safety switches as a key
  means of controlling electrical risk in dwellings. Safety switches have been mandatory in
  all new domestic premises since 1992. Following an amendment to the Electrical Safety
  Act 2002, from 1 March 2006 owners of domestic rental accommodation are required to
  install safety switches when a new lease commences.

• A review of requirements for exclusion zones for work around overhead electrical lines
  was undertaken and resulted in a discussion paper for industry stakeholders. Feedback
  from stakeholders is being assessed to determine the most appropriate actions to improve
  electrical safety in the community.

• In November 2005, the Department of Industrial Relations, in partnership with the
  Department of Energy, assumed the role of the Coordinating Chair of the Electrical
  Regulatory Authorities Council (ERAC) for a two-year term. The department will provide
  secretariat services to support ERAC to liaise between the technical and safety electrical
  regulatory authorities of eight Australian States/Territories and New Zealand.

• In line with the Electrical Safety Plan for Queensland 2003-2008 and the department’s
  strategic plan, this output has continued to deliver compliance programs targeted at
  priority industries and areas. The electrical safety enforcement framework was revised
  and the compliance program was expanded beyond the traditional focus on contractors. In
  response to substantial replacement and extension work to Queensland’s electricity
  networks, the Electrical Safety Office has introduced network specific auditing programs
  to ensure worker and public safety.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 28
• During 2005-06, electrical safety audits conducted under the safety compliance program
  included: repairers of electrical equipment; electrical lighting products that are offered for
  sale from retail outlets; and audits of electricity entities. The electricity entity audits
  related to vegetation clearance from powerlines, high voltage and low voltage safe work
  practices and asset management. Where non-compliance was evident, appropriate
  enforcement action was taken which included the issuing of notices.

• Inspectors conducted more than 2,140 investigations and issued more than 1,125 notices
  (including notices for electrical safety protection, improvement, unsafe electrical
  equipment and infringement notices).

• Since 2002, the purchaser of a domestic residence must install a safety switch within three
  months of the property transfer if a switch is not already in place. During 2005–06, more
  than 520 domestic residence audits were conducted. This included a safety switch blitz
  which found that around 92% complied with that requirement. In the cases of non-
  compliance, appropriate notices were issued to the new home owners requiring them to
  have a safety switch installed.

•    As at 31 March 2006, the Electrical Licensing Committee conducted five disciplinary
     hearings to determine whether grounds existed to take disciplinary action against licensed
     electrical workers or electrical contractors. As at 31 March 2006, 26 prosecution
     proceedings had been initiated for 44 breaches of the Electrical Safety Act 2002.

•    The output provided technical support to Queensland Fire and Rescue Services,
     Department of Emergency Services and Queensland Police Service for 66 fire scene
     investigations where an electrical cause was suspected. On behalf of these agencies, the
     Electrical Safety Office also examined electrical equipment suspected as being the source
     of ignition.

• Strong demand for electrical equipment approvals has continued. The output is exploring
  options for developing an integrated database for equipment approvals with other
  electricity regulators in Australia. Such a database will provide greater consistency
  between jurisdictions and for a more effective and responsive delivery of services.

• The output has undertaken a wide range of communication activities to promote safety
  switches and other aspects of electrical safety. This includes extensive material about
  electrical safety on the Department of Industrial Relations website, advertising and
  editorial coverage in mass media and trade press and presentations to industry
  participants.

• In partnership with Energex and Ergon Energy, the output introduced an initiative to
  collect information about the extent of safety switch coverage in the community. An initial
  data-gathering stage has been completed. In the longer-term this information will help the
  output evaluate safety switch policy and plan future initiatives.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 29
Future Developments
•    In 2006-07, the Electrical Safety Plan for Queensland 2003–2008 will be reviewed, in
     conjunction with the Electrical Safety Board to determine progress against the priorities
     listed in the plan and to ensure that the plan’s goals are still current.

•    Codes of Practice for electrical safety will be reviewed in consultation with stakeholders
     to ensure their relevance and currency.

•    The Council of Australian Governments (COAG) has agreed that governments will work
     with employers and unions to put in place more effective mutual recognition
     arrangements across states and territories for electricians and other skills-shortage trades.
     The Electrical Safety Office will participate on the General Electricians Action Group
     that has been formed to develop proposals for COAG’s consideration.

•    The output will implement an evidence-based compliance program with proactive and
     reactive elements. The proactive program will focus on electrical safety issues/risks in the
     community with particular emphasis on electrical contractors, domestic safety switches
     and audits of electricity entities. The reactive program will focus on investigation in
     serious electrical incidents and complaints.

•    In response to the Somerville report, substantial additional funds have been allocated to
     the replacement and extension of Queensland’s electricity distribution network. This
     activity will increase electrical safety risks. In response, this output will undertake
     comprehensive audits of distribution entities (focusing on high voltage switching, low
     voltage connections and vegetation management) to ensure safety management systems
     and procedures are being implemented.

•    The strong emphasis on improving electrical safety at home and in the workplace through
     information and education strategies will continue. Key themes in 2006-07 will be a
     continuation of the focus on safety switches (installation and testing) and ‘Don’t DIY
     electrical work’.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 30
                                                 OUTPUT STATEMENT
Output: Electrical Safety Services
                                                                               2005-06                2005-06           2006-07
Measures                                                       Notes
                                                                            Target/Est.            Est. Actual       Target/Est.
Quantity
Number of prosecutions finalised                                                         20                   25              25

Clients accessing information and advisory
services                                                             1           310,000                 265,000        265,000

Number of electrical licences                                        2             11,000                 12,099         12,000

State-wide compliance campaign
implemented                                                                         100%                   100%           100%

Electrical investigations conducted                                                 2,000                  2,800          2,500

Electrical appliance approvals                                       3              2,000                  1,900          1,900

Quality
Reduction in the number of electrical
incidents where confirmed medical attention
is required                                                          4                 135                   150               ..

Reduction in the incidence of reported
electrical incidents where confirmed medical                                                                              To be
attention is required                                                5                    ..                   ..   benchmarked

Client satisfaction with:
• Inspectorate contact                                                                85%                   85%            85%
• Policy development                                                                  80%                   80%            80%
• Electrical safety seminar programs for
    industry and the community                                       6                    ..                   ..          70%

Timeliness
Electrical    type    2   comprehensive
investigations completed within specified
timeframes.                                                          7                90%                   90%            90%

Policy briefs to the Minister completed within
deadlines                                                                             90%                   90%            90%

Electrical licences issued within specified
timeframes                                                           6                    ..                80%            80%

Location
% of activities delivered outside of South
East Queensland                                                      8                40%                      ..              ..

% of inspectors based in regional
Queensland                                                           6                    ..               >50%           >50%

State Contribution ($’000)                                                              ..                     ..             ..
Other Revenue ($’000)                                                               9,980                 10,316         10,738
Total Cost ($’000)                                                                 10,196                 10,348         11,077




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                     3 - 31
Notes:
1. The estimated number of clients accessing information and advisory services is below the 2005-06 target as 2005-06 is a
    year with a relatively low number of electrical licence renewals. The same will apply for 2006-07.
2. This measure reports on the number of electrical licences issued and renewed during the year. The increase in the 2005-06
    estimated actual as compared to the 2005-06 target is that more new applications were received than originally predicted.
    Forecasts for new licences may not be entirely accurate in comparison to forecasting renewal applications.
3. The estimated number of electrical appliance approvals, while 5% below the 2005-06 target, is higher than in previous
    years. The 2006-07 target has been based on the estimated actual for 2005-06.
4. This measure will be replaced in 2006-07. The estimated actual result for 2005-06 is due to more accurate data analysis
    processes and a higher awareness in industry of the need to seek medical attention following an electrical incident.
5. New measure for 2006-07. In 2006-07, the Output will move to an improved reporting measure based on a % reduction in
    the incidence of reported electrical incidents where confirmed medical attention is required per million population.
6. New measure.
7. This measure has been renamed from “Electrical investigations completed within specified timeframes”.
8. Measure discontinued in 2005-06.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                 3 - 32
Output Income Statement – Electrical Safety Services
                                                                                         2005-06         2005-06      2006-07
                                                                          Notes          Budget          Est. Act.   Estimate
                                                                                           $’000            $’000       $’000

Income
  Output revenue                                                                                 ..             ..          ..
  User charges                                                                   1           2,593          2,829       2,849
  Grants and other contributions                                                 4           7,307          7,313       7,759
  Other Revenue                                                                  2              80            174         130
  Gains on sale/revaluation of property, plant and                                               ..             ..          ..
  equipment and investments
Total income                                                                                 9,980         10,316      10,738

Expenses
 Employee expenses                                                               5           6,139          6,222       6,783
 Supplies and services                                                                       3,839          3,993       4,166
 Grants and subsidies                                                                            ..             ..          ..
 Depreciation and amortisation                                                3,6              188            108         106
 Finance/borrowing costs                                                                         ..             ..          ..
 Other expenses                                                                                 30             25          22
 Losses on sale/revaluation of property, plant and                                               ..             ..          ..
 equipment and investments
Total expenses                                                                             10,196          10,348      11,077

OPERATING SURPLUS/ (DEFICIT)                                                     7           (216)           (32)       (339)


Notes:
Significant variations between 2005-06 Budget and 2005-06 Estimated Actual:
1. The increase in user charges is due to an increase in electrical equipment approval applications.
2. Revenues from Electrical Safety Board investigations and hearings are higher than estimated.
3. The variance relates to Australian Policy Guideline 20 changes detailed in the foreword note in the Explanation of
    Variances in the Financial Statements section.

Significant variations between 2005-06 Budget and 2006-07 Estimate:
4. The increase in grant revenue is due to the annual CPI increase and growth in the number of electrical retail premises used
    in the determination of the grant.
5. The increase is due to the provision for enterprise bargaining salary increases and the additional inspectors required to
    service the growth in the number retail premises.
6. The variance relates to APG 20 changes detailed in the foreword note in the Explanation of Variances in the Financial
    Statements section.
7. The operating deficit is fully funded by trading surpluses from the electrical workers’ licensing function in 2004-05. These
    licences are renewed once every five years and program expenses will be incurred over the next five years in support of
    the function. The next licensing peak will be in 2009-10.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 33
                                          OUTPUT PERFORMANCE


OUTPUT:                                   Public Sector Industrial and Employee Relations
                                          Services

RELATED OUTCOME:                          Delivering responsive government

DESCRIPTION
The output delivers industrial and employee relations services relating to the government’s
own workforce.

Major responsibilities are to:
• improve and review public sector wages, bargaining and employee relations policies
• assist agencies to effectively implement government industrial and employee relations
  policy for public sector employees
• monitor and assist Government-owned corporations with matters relating to industrial and
  employee relations.

Key stakeholders include Government, public sector agencies and entities, unions and
employees.

REVIEW OF OUTPUT PERFORMANCE

Recent Achievements
• The department successfully completed a Memorandum of Agreement with the
  Queensland Council of Unions (on behalf of the unions representing public sector
  workers). This Memorandum established consistent wage outcomes across the public
  sector (4% per annum or $30 per week, whichever is the greater) as well as enhancing a
  number of employment conditions. The most notable of these enhancements is the
  increase in paid maternity/adoption leave from six weeks to 12 weeks.

• In 2005-06, some 18 Certified Agreements for Queensland Government agencies
  (including Government-owned Corporations) were negotiated. These agreements, based
  on cooperative and consultative industrial relations, delivered fair and reasonable wages
  while contributing to the Queensland public sector ability to deliver quality services.

• This output took an active role in developing the industrial strategies associated with
  certified agreements for Queensland Health (agreements for nurses, medical staff and
  staff other than nurses). The agreements formed a significant part of the health reform
  agenda in Queensland. These industrial strategies included the piloting of the use of
  facilitated Interest Based Bargaining to allow the parties to explore problem-solving
  approaches rather than adversarial positional bargaining.

• Other certified agreements included Education Queensland agreements with teachers’
  aides, teachers and cleaners, the Queensland Ambulance Service agreement and the
  Department of Primary Industries’ Forestry agreement.

2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 34
• The department also contributed strategically to the renegotiation of certified agreements
  in a number of Government-owned corporations. These included Queensland Rail,
  Energex and Ergon.

• The department has continued to work closely with agencies to develop industrial
  solutions for staffing issues such as shortages of appropriately skilled workers. These
  solutions will look at innovative and creative policies and programs and will focus on
  addressing these needs in both the short and longer term.

• In December 2005, three units of the department’s Division of Public Sector Industrial
  and Employee Relations became part of the Office of Public Service Merit and Equity
  (OPSME). The units focused on employment policy, learning and development (including
  the Public Sector Management Program) and information and data analysis. These units
  had a close working relationship with the OPSME and the change consolidates workforce
  planning for the Queensland public sector into one department. The transition was
  effectively managed with no disruption in service delivery.

Future Developments
•    In 2006-07, the output will continue to focus on public sector wage bargaining and public
     sector industrial relations advice and services.

•    Negotiations for a new State Government Departments Certified Agreement (Core
     Agreement) will be a high priority. The 2004 agreement is due to expire early in the
     2006-07 financial year. In addition to the ‘core’ State Government Departments
     Agreement, 17 other certified agreements are due for renewal in 2006-07.

•    The output will continue to work closely with Queensland Health on industrial relations
     and human resource strategies to continue reform to the health system.

•    The output will work closely with the OPSME in relation to reviewing Government
     policy and practices associated with the attraction and retention of identified skill
     shortage areas within the Queensland public sector. This work will include a review of
     the current salary sacrifice arrangements available to employees.

•    The output provides public sector industrial relations advice and service to public sector
     entities. This work focuses on assisting the entities to operationalise policy and procedure
     within the public sector. There will also be a role in ensuring entities affected by recent
     federal legislative changes properly understand these changes.

•    Until the Queensland Government’s High Court challenge to the federal government’s
     Work Choices legislation is determined, Queensland Government Owned Corporations,
     statutory bodies and some other public sector entities will be subject to the new
     legislation. This output will work closely with these various bodies to manage the impact
     of the legislation.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 35
                                                 OUTPUT STATEMENT
Output: Public Sector Industrial and Employee Relations Services
                                                                               2005-06                2005-06        2006-07
Measures                                                       Notes
                                                                            Target/Est.            Est. Actual    Target/Est.
Quantity
Completion of agreed policy program as
approved by the Minister                                             1              >90%                 100%          >90%

Number of Ministerial Directives reviewed or
issued to deal with the changing nature of
public sector employment                                             2                    6                19               7

Increase in on-line use of collected
workforce data by agencies                                           3                10%                   ..              ..

Number of Public Sector Management
Program graduates                                                    3                   85                 ..              ..

Quality
Client/stakeholder satisfaction with the
services and advice provided on public
sector IR or workforce management issues                             4              >75%                    ..              ..

Client/stakeholder satisfaction with the
services and advice provided on public
sector IR                                                            5                    ..             100%          >75%

Stakeholder satisfaction in achieving
Government wages policy                                                             >75%                  78%          >75%

Timeliness
Public sector development and review
assignments completed within agreed
timeframes                                                           3                80%                   ..              ..

Clients satisfied with the timeliness of                                                                               To be
services and advice of PSIER issues                                  5                    ..                ..   benchmarked

State Contribution ($’000)                                                          2,683                2,867         2,464
Other Revenue ($’000)                                                                 362                  384           396
Total Cost ($’000)                                                   6              3,045                3,231         2,848
Notes:
1. Measure renamed from “Completion of agreed policy program as set by the Minister”.
2. 2005-06 Estimated Actual result is higher than anticipated because a number of directives, not scheduled for amendment,
    were amended during the year to implement commitments given in a memorandum of understanding with unions.
3. Measure transferred to the Office of Public Service Merit and Equity (OPSME) effective from 1 December 2005 due to
    Machinery of Government change.
4. Measure discontinued from 2006-07.
5. New measure for 2006-07.
6. Adjustments for Machinery of Government change to OPSME.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                  3 - 36
Output Income Statement – Public Sector Industrial and Employee Relations
Services
                                                                                        2005-06
                                                                                                         2005-06      2006-07
                                                                                       Adjusted
                                                                          Notes                          Est. Act.   Estimate
                                                                                        Budget
                                                                                                            $’000       $’000
                                                                                          $’000

Income
  Output revenue                                                              1,4            2,683          2,867       2,474
  User charges                                                                  5              362            363         394
  Grants and other contributions                                                                 ..             3           2
  Other Revenue                                                                                  ..            18           ..
  Gains on sale/revaluation of property, plant and                                               ..             ..          ..
  equipment and investments
Total income                                                                                 3,045          3,252       2,870

Expenses
 Employee expenses                                                               2           2,073          2,260       2,007
 Supplies and services                                                                         837            906         796
 Grants and subsidies                                                                           44              ..          ..
 Depreciation and amortisation                                                3,6               85             57          50
 Finance/borrowing costs                                                                         ..             ..          ..
 Other expenses                                                                                  6              8           5
 Losses on sale/revaluation of property, plant and                                               ..             ..          ..
 equipment and investments
Total expenses                                                                               3,045          3,231       2,858

OPERATING SURPLUS/ (DEFICIT)                                                                       ..          21          12


Notes:
Significant variations between 2005-06 Adjusted Budget and 2005-06 Estimated Actual:
1. The increase is mainly due to additional revenue deferred from 2004-05 to meet increased service delivery costs for
    enterprise bargaining.
2. See note 1.
3. The variance relates to Australian Policy Guideline 20 changes detailed in the foreword note in the Explanation of
    Variances in the Financial Statements section.

Significant variations between 2005-06 Adjusted Budget and 2006-07 Estimate:
4. The reduction is mainly a result of the re-alignment of corporate services allocations for 2006-07.
5. Revenues from fee for service work undertaken by Workplace Consulting are expected to increase.
6. The variance relates to APG 20 changes detailed in the foreword note in the Explanation of Variances in the Financial
    Statements section.
.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 37
RECONCILIATION OF OUTPUT STATEMENTS TO DEPARTMENTAL
FINANCIAL STATEMENTS

The 1 December 2005 Machinery of Government changes resulted in the transfer of the
Employment Policy and Research Branch, Information and Data Analysis Branch and
Learning and Development Branch from this department to the Office of the Public Service
Merit and Equity. Accordingly, the 2005-06 Adjusted Budget and the 2005-06 Estimated
Actual in the Departmental Income Statement reflect five months of activity relating to the
transferred function.

The individual Output Income Statements have been recast as if the transfer of the
Employment Policy and Research Branch, Information and Data Analysis Branch and
Learning and Development Branch out of this Department had occurred on 1 July 2005, and
as such do not add to the Departmental Income Statement, which shows revenue and
expenses as they were actually incurred by this Department.

Below is a reconciliation of Output Income Statements to the Departmental Income
Statement.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 38
              Reconciliation of Output and Departmental Income Statements
                                                                                                          2005-06   2005-06
                                                                                                         Adjusted   Est. Act.
                                                                                                          Budget        $000
                                                                                                             $000
             Workplace Health and Safety Services (including Workers’
             Compensation Policy)
               Income                                                                                      50,228     50,815
               Expenses                                                                                    50,228     50,634

Plus         Private Sector Industrial Relations Services
                Income                                                                                     22,540     21,599
                Expenses                                                                                   22,540     21,519

Plus         Administration of the Industrial Court and Commission
             System
                Income                                                                                      6,717      7,184
                Expenses                                                                                    6,717      7,466

Plus         Electrical Safety Services
                Income                                                                                      9,980     10,316
                Expenses                                                                                   10,196     10,348

Plus         Public Sector Industrial and Employee Relations Services
               Income                                                                                       3,045      3,252
               Expenses                                                                                     3,045      3,231

Equals       Total Output
                Income                                                                                     92,510     93,166
                Expenses                                                                                   92,726     93,198

Plus         Transfer of Employment Policy and Research Branch,
             Information and Data Analysis Branch and Learning and
             Development Branch(a) to the Office of the Public Service
             Merit and Equity:

                 Income                                                                                      841         841
                 Expenses                                                                                    841         841

Plus         Corporate Services provided to Department of Employment
             and Training
                Income                                                                                       531         531
                Expenses                                                                                     531         531


Equals       Departmental Income Statement
               Income                                                                                      93,882     94,538
               Expenses                                                                                    94,098     94,570


(a) Represents Revenue and Expenses for this function for the period 1 July 2005 to 30 November 2005.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                  3 - 39
                                             ADMINISTERED ITEMS



DESCRIPTION
The major administered revenues collected by the department are workplace health and safety
regulatory fees.

Building and construction work attracts a levy where the cost of the work is $80,000 or more.
The levy is calculated at 0.125% of the cost of the work. The levy is collected by the
Queensland Building and Construction Industry (Portable Long Service Leave) Authority
(QLeave) on behalf of the department.

Fees are collected on the issue of certificates for people working in a prescribed occupation.

All of the above fees are remitted to the Consolidated Fund.

Financial information relating to administered revenues is contained in the Statement of
Expenses and Revenues Administered on Behalf of the State Government on page 3-47 of
this document.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 40
                                           CAPITAL ACQUISITIONS

Expenditure on capital items is expected to total $457,000 in 2006-07. Key areas of
expenditure will be replacement of operational equipment and new accommodation fit-outs.

The department will be making substantial investment in knowledge management systems
such as an electronic document and records management system, a web content management
system and redevelopment of the intranet. Under accounting standards and Accounting Policy
Guidelines, the majority of this expenditure will be classified as an operating expense for
2006-07. The department has approval to transfer $500,000 from capital funding in 2006-07
to assist in the implementation of these systems.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 41
                                    CAPITAL ACQUISITION STATEMENT
                                                                                          2005-06        2005-06      2006-07
                                                                           Notes          Budget         Est. Act.   Estimate
                                                                                            $’000           $’000       $’000

PROPERTY PLANT AND EQUIPMENT

Property Plant and Equipment
   - Operational plant and equipment                                           1,3              947           200          157
   - Leasehold improvements                                                    2,3               83           289          100


Other acquisitions of property, plant and
equipment                                                                                          ..           ..             ..

TOTAL PROPERTY PLANT AND EQUIPMENT                                                           1,030            489          257


OTHER CAPITAL ACQUISITIONS

Other Capital Acquisitions
   - IT systems                                                                1,3           1,074            601          200

Other Items                                                                                        ..           ..             ..

TOTAL OTHER CAPITAL ACQUISITIONS                                                             1,074            601          200

TOTAL CAPITAL ACQUISITIONS                                                                   2,104          1,090          457


FUNDING SOURCES OF ACQUISITIONS

  Equity adjustment                                                              3             477            377       (1,151)
  Funding for depreciation and amortisation                                      1           1,627            978         1,108
  Borrowings                                                                                     ..             ..            ..
  Proceeds of asset sales                                                                        ..             ..            ..
  Other                                                                                          ..         (265)           500

TOTAL FUNDING SOURCES                                                                        2,104          1,090          457


Notes:
Significant variations between 2005-06 Budget and 2005-06 Estimated Actual:
1. The variance relates to Australian Policy Guideline 20 changes detailed in the foreword note in the Explanation of
    Variances in the Financial Statements section.
2. The increase in expenditure is mainly due to accommodation fit-outs undertaken in Nambour and Central Plaza II.

Significant variations between 2005-06 Budget and 2006-07 Estimate:
3. Funding has been transferred to meet the implementation costs of knowledge management projects.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                     3 - 42
                                      DEPARTMENTAL

                                                FINANCIAL

                                           STATEMENTS




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations   3 - 43
INCOME STATEMENT
                                                                                        2005-06
                                                                                                         2005-06      2006-07
                                                                                       Adjusted
                                                                          Notes                          Est. Act.   Estimate
                                                                                        Budget
                                                                                                            $’000       $’000
                                                                                          $’000

Income
  Output revenue                                                                           53,604          52,095      54,086
  User charges                                                            1,4,10            5,206           5,899       4,344
  Grants and other contributions                                            5,11           34,580          35,859      39,819
  Other revenue                                                                               492             685         596
  Gains on sale/revaluation of property, plant and
  equipment and investments                                                                     ..              ..          ..
Total income                                                                               93,882          94,538      98,845

Expenses
 Employee expenses                                                               6         63,815          65,567      67,464
 Supplies and services                                                                     26,998          26,301      27,520
 Grants and subsidies                                                        7,12           1,578           1,521       2,927
 Depreciation and amortisation                                                2,8           1,624             978       1,108
 Finance/borrowing costs                                                                        ..              ..          ..
 Other expenses                                                               3,9              83             203         165
 Losses on sale/revaluation of property, plant and
 equipment and investments                                                                      ..              ..          ..
Total expenses                                                                             94,098          94,570      99,184

OPERATING SURPLUS / (DEFICIT)                                                  13            (216)           (32)       (339)



STATEMENT OF CHANGES IN EQUITY
                                                                                        2005-06
                                                                                                         2005-06      2006-07
                                                                                       Adjusted
                                                                          Notes                          Est. Act.   Estimate
                                                                                        Budget
                                                                                                            $’000       $’000
                                                                                          $’000

Net effect of the adoption of a new accounting
standard                                                                                           ..     (1,823)            ..
Increase/ (decrease) in asset revaluation reserve                                                  ..           ..           ..
Net amount of all revenue and expense
adjustments direct to equity not disclosed above                                                   ..       (127)            ..

Net income recognised directly in equity                                                           ..     (1,950)            ..

Surplus/ (deficit) for the period                                                            (216)           (32)       (339)

Total recognised income and expense for the
period                                                                                       (216)        (1,982)       (339)
Equity injection/ (withdrawal)                                                                 477            377     (1,151)
Equity adjustments (MoG Transfers)                                                           (106)          (106)           ..
Total movement in equity for period                                                            155        (1,711)     (1,490)




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 44
BALANCE SHEET
                                                                                        2005-06
                                                                                                         2005-06      2006-07
                                                                                       Adjusted
                                                                          Notes                          Est. Act.   Estimate
                                                                                        Budget
                                                                                                            $’000       $’000
                                                                                          $’000

CURRENT ASSETS
 Cash assets                                                              1,9,17             3,773          5,373       4,534
 Receivables                                                                2,10             1,940          3,044       3,044
 Other financial assets                                                                          ..             ..          ..
 Inventories                                                                 3,11               27              ..          ..
 Other                                                                                         252            336         336

  Non-financial assets held for sale                                                               ..           ..           ..

Total current assets                                                                         5,992          8,753       7,914

NON-CURRENT ASSETS
 Receivables                                                                                     ..             ..          ..
 Other financial assets                                                                          ..             ..          ..
 Property, plant and equipment                                           4,12,18             4,195          2,427       1,812
 Intangibles                                                                 4,12            2,112          1,337       1,301
 Other                                                                                           ..             ..          ..
Total non-current assets                                                                     6,307          3,764       3,113

TOTAL ASSETS                                                                               12,299          12,517      11,027

CURRENT LIABILITIES
 Payables                                                                    5,13            1,708          3,025       3,025
 Accrued employee benefits                                                   6,14            5,978          5,544       5,544
 Interest-bearing liabilities and derivatives                                                    ..             ..          ..
 Provisions                                                                                      ..             ..          ..
 Other                                                                       7,15              176             76          76
Total current liabilities                                                                    7,862          8,645       8,645

NON-CURRENT LIABILITIES
 Payables                                                                                        ..             ..          ..
 Accrued employee benefits                                                   6,14                ..         1,196       1,196
 Interest-bearing liabilities and derivatives                                                    ..             ..          ..
 Provisions                                                                                      ..             ..          ..
 Other                                                                       7,15              136             86          86
Total non-current liabilities                                                                  136          1,282       1,282

TOTAL LIABILITIES                                                                            7,998          9,927       9,927

NET ASSETS (LIABILITIES)                                                                     4,301          2,590       1,100

EQUITY
 Capital/Contributed equity                                                                  4,331          4,316       3,165
 Retained surplus/ (Accumulated deficit)                                 8,16,19               (30)       (1,726)     (2,065)
 Reserves:
  - Asset revaluation reserve                                                                      ..           ..           ..
  - Other (specify)                                                                                ..           ..           ..

TOTAL EQUITY                                                                                 4,301          2,590       1,100




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 45
CASH FLOW STATEMENT
                                                                                        2005-06
                                                                                                         2005-06      2006-07
                                                                                       Adjusted
                                                                          Notes                          Est. Act.   Estimate
                                                                                        Budget
                                                                                                            $’000       $’000
                                                                                          $’000

CASH FLOWS FROM OPERATING ACTIVITIES
 Inflows:
   Output receipts                                                                         53,604          52,290      54,086
   User charges                                                           1,4,10            7,386           8,079       6,554
   Grants and other contributions                                           5,11           34,580          35,859      39,819
   Other                                                                                    2,949           3,142       3,079
 Outflows:
   Employee costs                                                                6       (63,815)        (65,567)    (67,464)
   Supplies and services                                                                 (29,455)        (28,758)    (30,003)
   Grants and subsidies                                                      7,12         (1,578)         (1,521)     (2,927)
   Borrowing costs                                                                              ..              ..          ..
   Other                                                                                  (2,263)         (2,383)     (2,375)

Net cash provided by/ (used in) operating
activities                                                                                   1,408          1,141        769

CASH FLOWS FROM INVESTING ACTIVITIES
 Inflows:
   Sales of property, plant and equipment                                                          ..           ..           ..
   Investments redeemed                                                                            ..           ..           ..
   Loans and advances redeemed                                                                     ..           ..           ..
 Outflows:
   Payments for property, plant and equipment                             2,8,13           (1,027)          (489)       (257)
   Payments for intangibles                                               2,8,13           (1,074)          (601)       (200)
   Payments for investments                                                                      ..             ..          ..
   Loans and advances made                                                                       ..             ..          ..

Net cash provided by/ (used in) investing
activities                                                                                 (2,101)        (1,090)       (457)

CASH FLOWS FROM FINANCING ACTIVITIES
 Inflows:
   Borrowings                                                                                    ..             ..           ..
   Equity injections                                                             3             540            440            ..
 Outflows:
   Borrowing redemptions                                                                          ..            ..          ..
   Finance lease payments                                                                         ..            ..          ..
   Equity withdrawals                                                        9,14              (63)          (63)     (1,151)

Net cash provided by/ (used in) financing
activities                                                                                     477            377     (1,151)

Net Increase/ (decrease) in cash held                                                        (216)            428       (839)

Cash at the beginning of financial year                                                      4,217          5,173       5,373

Cash transfers from restructure                                                              (228)          (228)           ..
Cash at the end of financial year                                                            3,773          5,373       4,534




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 46
INCOME STATEMENT
                                                                                         2005-06         2005-06      2006-07
EXPENSES AND REVENUES ADMINISTERED ON
                                                                          Notes          Budget          Est. Act.   Estimate
BEHALF OF THE WHOLE OF GOVERNMENT
                                                                                           $’000            $’000       $’000

Revenues
 Commonwealth grants                                                                            ..              ..          ..
 Taxes, fees and fines                                                           1         32,166          32,840      35,239
 Royalties, property income and other territorial
 revenue                                                                                        ..              ..          ..
 Interest                                                                                       ..              ..          ..
 Administered item revenue                                                                      ..              ..          ..
 Other                                                                                          4               4           4
Total revenues                                                                             32,170          32,844      35,243

Expenses
 Supplies and services                                                                             ..           ..           ..
 Depreciation and amortisation                                                                     ..           ..           ..
 Grants and subsidies                                                                              ..           ..           ..
 Benefit payments                                                                                  ..           ..           ..
 Borrowing Costs                                                                                   ..           ..           ..
 Other                                                                                             ..           ..           ..
Total expenses                                                                                     ..           ..           ..


Net surplus or deficit before transfers to
Government                                                                                 32,170          32,844      35,243

Transfers of Administered Revenue to                                                       32,170          32,844      35,243
Government

OPERATING SURPLUS/ (DEFICIT)                                                                       ..           ..           ..




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 47
BALANCE SHEET
                                                                                         2005-06         2005-06      2006-07
ASSETS AND LIABILITIES ADMINISTERED ON
                                                                          Notes          Budget          Est. Act.   Estimate
BEHALF OF THE WHOLE OF GOVERNMENT
                                                                                           $’000            $’000       $’000

CURRENT ASSETS
 Cash assets                                                                                   312            378         378
 Receivables                                                                     1           4,771          5,466       5,466
 Inventories                                                                                     ..             ..          ..
 Other                                                                                           ..             ..          ..

  Non-financial assets held for sale                                                               ..           ..           ..

Total current assets                                                                         5,083          5,844       5,844

NON-CURRENT ASSETS
 Receivables                                                                                       ..           ..           ..
 Other financial assets                                                                            ..           ..           ..
 Property, plant and equipment                                                                     ..           ..           ..
 Intangibles                                                                                       ..           ..           ..
 Other                                                                                             ..           ..           ..
Total non-current assets                                                                           ..           ..           ..

TOTAL ADMINISTERED ASSETS                                                                    5,083          5,844       5,844

CURRENT LIABILITIES
 Payables                                                                                        9              2           2
 Transfers to Government payable                                                 1           5,074          5,842       5,842
 Interest-bearing liabilities                                                                    ..             ..          ..
 Other                                                                                           ..             ..          ..
Total current liabilities                                                                    5,083          5,844       5,844

NON-CURRENT LIABILITIES
 Payables                                                                                          ..           ..           ..
 Interest-bearing liabilities                                                                      ..           ..           ..
 Other                                                                                             ..           ..           ..
Total non-current liabilities                                                                      ..           ..           ..

TOTAL ADMINISTERED LIABILITIES                                                               5,083          5,844       5,844

ADMINISTERED NET ASSETS/ (LIABILITIES)                                                             ..           ..           ..

EQUITY
 Capital/Contributed equity                                                                        ..           ..           ..
 Retained surplus/(Accumulated deficit)                                                            ..           ..           ..
 Reserves:
  - Asset revaluation reserve                                                                      ..           ..           ..
  - Other (specify)                                                                                ..           ..           ..

TOTAL ADMINISTERED EQUITY                                                                          ..           ..           ..




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 48
 CASH FLOW STATEMENT
                                                                                         2005-06         2005-06      2006-07
CASH FLOWS ADMINISTERED ON BEHALF OF
                                                                          Notes          Budget          Est. Act.   Estimate
THE WHOLE OF GOVERNMENT
                                                                                           $’000            $’000       $’000

CASH FLOWS FROM OPERATING ACTIVITIES
 Inflows:
   Administered item receipts                                                                   ..              ..          ..
   Grants and other contributions                                                               ..              ..          ..
   Taxes, fees and fines                                                         1         32,166          33,240      35,239
   Royalties, property income and other territorial
   revenues                                                                                        ..           ..           ..
   Other                                                                                           4            4            4
 Outflows:
   Transfers to Government                                                       1       (32,170)        (34,544)    (35,243)
   Grants and subsidies                                                                         ..              ..          ..
   Supplies and services                                                                        ..              ..          ..
   Borrowing costs                                                                              ..              ..          ..
   Other                                                                                        ..              ..          ..

Net cash provided by/ (used in) operating
activities                                                                                         ..     (1,300)            ..

CASH FLOWS FROM INVESTING ACTIVITIES
 Inflows:
   Sales of property, plant and equipment                                                          ..           ..           ..
   Investments redeemed                                                                            ..           ..           ..
   Loans and advances redeemed                                                                     ..           ..           ..
 Outflows:
   Payments for property, plant and equipment                                                      ..           ..           ..
   Payments for intangibles                                                                        ..           ..           ..
   Payments for investments                                                                        ..           ..           ..
   Loans and advances made                                                                         ..           ..           ..

Net cash provided by/ (used in) investing
activities                                                                                         ..           ..           ..

CASH FLOWS FROM FINANCING ACTIVITIES
 Inflows:
   Borrowings                                                                                      ..           ..           ..
   Equity injections                                                                               ..           ..           ..
 Outflows:
   Borrowing redemptions                                                                           ..           ..           ..
   Finance lease payments                                                                          ..           ..           ..
   Equity withdrawals                                                                              ..           ..           ..

Net cash provided by/ (used in) financing
activities                                                                                         ..           ..           ..

Net increase/ (decrease) in cash held                                                              ..     (1,300)            ..

Administered cash at beginning of financial year                                               312          1,678         378

Cash transfers from restructure                                                                  ..             ..          ..
Administered cash at end of financial year                                                     312            378         378




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 49
EXPLANATION OF VARIANCES IN THE FINANCIAL STATEMENTS

Queensland Government entities adopted Australian Equivalents to International Financial
Reporting Standards (AEIFRS) from 1 July 2005. These Standards replace existing
Australian Accounting Standards, with the exception of AAS 29 Financial Reporting by
Government Departments and AAS 31 Financial Reporting by Government.

With the introduction of AEIFRS, several Accounting Policy Guidelines (APGs) were
amended to bring them into line with the new standards, and several additional policies were
introduced to take effect on transition to AEIFRS. In particular, new asset recognition
thresholds (contained in the Non-Current Asset Policies for the Queensland Public Sector),
were introduced in the 2005-06 financial year and are effective from 1 July 2004. The
2005-06 Budget column in the financial statements does not reflect new asset recognition
thresholds (consistent with the figures reported in the 2005-06 MPS), whilst the 2005-06 Est.
Actual and 2006-07 Estimate columns do reflect new asset recognition threshold changes.
Detailed notes are provided where these variances are significant.

Machinery of Government changes are reflected (if relevant) in recast estimates.

Income Statement
Major variations between 2005-06 Adjusted Budget and 2005-06 Estimated Actual include:
1. The increase in user charges is due to fees from Workplace Health and Safety services and Private Sector Industrial
   Relations services being higher than forecast.
2. The change in depreciation expense relates the application of Australian Policy Guideline 20 (APG 20) and asset
   recognition thresholds as detailed in the foreword note to this section.
3. The increase in Other Expenses relates to a minor re-classification of some expense items from Supplies and Services.

Major variations between 2005-06 Budget and 2006-07 Estimate include:
4. The decrease in user charges revenue mainly relates to the cessation of the contract with the Australian Government for
   federal industrial relations services.
5. The increase in grants and contributions relates to funding for workplace health and safety services in high risk industries
   and asbestos management and growth in electrical retail premises for electrical safety services.
6. The increase in employee expenses is due to provision for enterprise bargaining salary increases and additional inspectors
   to be employed for high risk industries and asbestos management.
7. The increase relates to small business initiative grants, the Queensland Public Sector Injury Prevention and Management
   Strategy project and the provision of funding to address advocacy for disadvantaged workers arising from the federal Work
   Choices legislation.
8. The change in depreciation expense relates the application of APG 20 and asset recognition thresholds as detailed in the
   foreword note to this section.
9. The increase in Other Expenses relates to a minor re-classification of some expense items from Supplies and Services.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
10. Refer to note 4 in this section.
11. Refer to note 5 in this section.
12. Refer to note 7 in this section.
13. The operating deficit is fully funded by trading surpluses from the electrical workers’ licensing function in 2004-05. These
    licences are renewed once every five years and program expenses will be incurred over the next five years in support of
    the function. The next licensing peak will be in 2009-10.


Balance Sheet
Major variations between 2005-06 Adjusted Budget and 2005-06 Estimated Actual include:
1. The increase in cash is due to a higher level of payables.
2. The increase in receivables is due to a higher level of actual receivables as at 30 June than forecast.
3. Inventories were considered immaterial and not disclosed in the Balance Sheet for the year ended 30 June 2005.
4. The change in asset values relates the application of Australian Policy Guideline 20 (APG 20) and asset recognition
    thresholds as detailed in the foreword note to this section.
5. The variation represents a higher level of payables as at 30 June than forecast and reclassification of employment related
    on-costs to accrued employee benefits in accordance with the application of AEIFRS.
6. The change in employee benefits and provisions relates to a higher level of benefits and provisions as at 30 June than
    forecast and the reclassification of amounts between current and non-current liabilities and payables in accordance with
    the application of AEIFRS as detailed in the foreword note to this section.
7. The variation represents a lower level of Other liabilities (unearned revenue and lease incentive liability) as at 30 June
    than forecast.
8. The change in equity relates the application of AEIFRS and APG 20 as detailed in the foreword note to this section.
2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                    3 - 50
Major variations between 2005-06 Adjusted Budget and 2006-07 Estimate include:
9. The increase in cash is due to a higher level of payables offset by equity withdrawal to meet the implementation costs of
    knowledge management projects.
10. Refer to note 2 in this section.
11. Refer to note 3 in this section.
12. Refer to note 4 in this section.
13. Refer to note 5 in this section.
14. Refer to note 6 in this section.
15. Refer to note 7 in this section.
16. Refer to note 8 in this section.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
17. The decrease in cash is mainly due to an equity withdrawal to meet the implementation costs of knowledge management
    projects.
18. The decrease in plant and equipment represents a lower level of capital expenditure in 2006-07.
19. The change in equity is the result of the equity withdrawal and lower level of capital investment detailed in notes 17 and
    18.


Cash Flow Statement
Major variations between 2005-06 Adjusted Budget and 2005-06 Estimated Actual include:
1. The increase in user charges is due to fees from Workplace Health and Safety services and Private Sector Industrial
    Relations services being higher than forecast.
2. The lower value of payments for plant and equipment and intangibles relates the application of Australian Policy Guideline
    20 (APG 20) and asset recognition thresholds as detailed in the foreword note to this section.
3. Capital outlays for Check Your Pay project are expected to be lower than forecast and the equity injection for this project
    will not be fully drawn down.

Major variations between 2005-06 Adjusted Budget and 2006-07 Estimate include:
4. The decrease in user charges receipts mainly relates to the cessation of the contract with the Australian Government for
    federal industrial relations services.
5. The increase in grants and contributions receipts relates to funding for workplace health and safety services in high risk
    industries and asbestos management and growth in electrical retail premises for electrical safety services.
6. The increase in employee expenditure is due to provision for enterprise bargaining salary increases and additional
    inspectors to be employed for high risk industries and asbestos management.
7. The increase in expenditure relates to small business initiative grants, the Queensland Public Sector Injury Prevention and
    Management Strategy project and the provision of funding to address advocacy for disadvantaged workers arising from
    the federal Work Choices legislation.
8. The reduction in capital expenditure relates the application of APG 20 and asset recognition thresholds as detailed in the
    foreword note to this section.
9. The increase in equity withdrawal relates cash transfers to meet the implementation costs of knowledge management
    projects.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
10. Refer to note 4 in this section.
11. Refer to note 5 in this section.
12. Refer to note 7 in this section.
13. The reduction in outflows is related to the lower level of capital expenditure in 2006-07.
14. Refer to note 9 in this section.


Income Statement
Expenses and Revenues Administered on Behalf of the Whole of Government

Major variations between 2005-06 Budget and 2005-06 Estimated Actual include:
1. The variation represents a higher level of receivables for construction work revenue as at 30 June than forecast.

Major variations between 2005-06 Budget and 2006-07 Estimate include:
1. Refer to note 1 in this section.



Balance Sheet
Assets and Liabilities Administered on Behalf of the Whole of Government

Major variations between 2005-06 Budget and 2006-07 Estimate include:
1.   Increase in construction work notification receivables due to a high level of construction activity in Queensland.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
1. Refer to note 1 in this section.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                    3 - 51
Cash Flow Statement
Cash Flows Administered on Behalf of the Whole of Government

Major variations between 2005-06 Budget and 2006-07 Estimate include:
1. Increase in construction work notification receipts due to a high level of construction activity in the Queensland.

Major variations between 2005-06 Estimated Actual and the 2006-07 Estimate include:
1.    Refer to note 1 in this section.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                   3 - 52
RECONCILIATION OF 2006–07 APPROPRIATION AMOUNTS TO
THE FINANCIAL STATEMENTS


CONTROLLED

Income Statement
                                                                                              $’000

 Output Revenue in Income Statement1                                                        54,086
    Add:      Appropriation Funding for Outputs Receivablea                                      ..

 = Appropriation for Departmental Outputs                                                   54,086

                                                     2
 = Output Receipts in Cash Flow Statement                                                   54,086




Balance Sheet
                                                                                              $’000

 Closing balance Contributed Equity3                                                          3,165
    Less:    Opening Balance Contributed Equity3                                              4,316

 = Change in Contributed Equity in the Balance Sheet                                        (1,151)

      Add:       Appropriation Equity Injection Receivableb                                        ..
                                                      4
      Less:      Non-appropriated Equity Adjustments                                               ..

 = Appropriation for Equity Adjustment5                                                     (1,151)

 = Net Appropriated Equity Adjustment in Cash Flow Statement                                (1,151)



1.   This Output Revenue amount reconciles to the Output Revenue line in the Income Statement on page 3-44.
2.   This Output Revenue amount reconciles to the Output Receipts line in the Cash Flow Statement on page
     3-46.
3.   The Contributed Equity amounts reconcile to the Contributed Equity line in the Balance Sheet on page 3-45.
4.   Non-appropriated equity adjustments relate to Machinery of Government changes and long service leave
     liabilities transferred to the whole-of-Government scheme.
5.   The Appropriation for Equity Adjustment amount reconciles to the Equity Adjustment line in the
     Appropriations table on page 3-5.

a.   This line item relates to operating revenue recognised in one year for which the cash is not received until the
     subsequent year.
b.   This line item relates to equity recognised in one year for which the cash is not received until the subsequent
     year.




2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations         3 - 53
Corporate Services1 Allocation 2006–07 Estimate ($’000)
                                                                                                     Workplace
                                                                                                     Health and                          Administration
                                                                                                                                                                                        Public Sector
                                                                                                         Safety    Private Sector                of the
                                                                                   Total                                                                                Electrical      Industrial and
                                                                                                       Services         Industrial           Industrial
                                                                               Corporate                                                                                   Safety         Employee
                                                            Notes                                    (including         Relations            Court and
                                                                                Services                                                                                 Services         Relations
                                                                                                       Workers’          Services          Commission
                                                                                                                                                                                           Services
                                                                                                  Compensation                                Systems
                                                                                                         Policy)
 Income
   Output revenue                                                                    16,591              10,763                4,276                    900                        ..                  652
   User charges                                                                          51                  29                   12                      3                        5                     2
   Grants and other contributions                                                        52                  30                   12                      3                        5                     2
   Other revenue                                                                          ..                  ..                   ..                     ..                       ..                    ..
   Gains on sale/revaluation of property,                                                 ..                  ..                   ..                     ..                       ..                    ..
   plant and equipment and investments

 Total income                                                      2                 16,694              10,822                4,300                    906                      10                    656

 Expenses
  Employee expenses                                                                   8,235               4,932                1,955                    387                    681                     280
  Supplies and services                                            3                  9,445               5.565                2,215                    489                    821                     355
  Grants and subsidies                                                                    ..                  ..                   ..                     ..                     ..                      ..
  Depreciation and amortisation                                                         145                  84                   34                      8                     13                       6
  Finance/borrowing costs                                                                 ..                  ..                   ..                     ..                     ..                      ..
  Other expenses                                                                         82                  48                   19                      4                      8                       3
  Losses on sale/revaluation of property,                                                 ..                  ..                   ..                     ..                     ..                      ..
  plant and equipment and investments

 Total expenses                                                                      17,907              10,629                4,223                    888                  1,523                     644

 Full Time Equivalents                                             4                    95.1                58.4                23.1                     3.9                    6.9                     2.8
 Notes:
 1. Corporate services functions include: finance and administration, procurement, human resources, payroll, staff training, information technology, records management, property acquisition and
     management, executive services (Office of the Director-General), Ministerial and Cabinet liaison, legal services and internal corporate support for strategic and tactical level services.
 2. The total revenue for corporate services does not include the internal pricing payments for services to the Electrical Safety Office.
 3. Includes payments to Corporate Solutions Queensland (CSQ) for the provision of services provided under the shared service provider arrangement and to the Department of Employment and
     Training for the purchase of internal audit and misconduct prevention services.
 4. Full-time equivalent numbers represent staff providing executive services (Office of the Director-General), Ministerial and Cabinet liaison, legal services and internal corporate support for strategic
     and tactical level services only and do not include staff employed by CSQ.



2006–07 Queensland State Budget – Ministerial Portfolio Statement – Department of Industrial Relations                                                                                              3 - 54
         MINISTERIAL PORTFOLIO STATEMENT

                     2006-07 STATE BUDGET



   MINISTER FOR EMPLOYMENT, TRAINING, AND
   INDUSTRIAL RELATIONS AND MINISTER FOR
                   SPORT



               SPORT AND RECREATION QUEENSLAND
                 QUEENSLAND ACADEMY OF SPORT




______________________________                ______________________________

Hon. Tom Barton MP                            Michael Kinnane
Minister for Employment, Training and         Director-General
Industrial Relations and Minister for Sport
This Ministerial Portfolio Statement (MPS) includes financial and performance information
for those parts of the Department of Local Government, Planning, Sport and Recreation
(namely Sport and Recreation Queensland and the Queensland Academy of Sport), which
report to the Minister for Employment, Training and Industrial Relations and the Minister for
Sport. Information relating to Sport and Recreation Queensland and the Queensland
Academy of Sport also appears in the MPS for the Minister for Environment, Local
Government, Planning and Women.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation   4-1
                                      DEPARTMENTAL OVERVIEW

The Department of Local Government, Planning, Sport and Recreation, through Sport and
Recreation Queensland and the Queensland Academy of Sport, is responsible for developing
and managing policies, strategies, programs and services to support increased opportunities
for Queenslanders to participate in sport and active recreation - from the grassroots to the
elite levels.

STRATEGIC ISSUES
The following factors are influencing the nature, shape and delivery of sport and recreation
services and products:

• The common theme emerging from all participation research is that more Queenslanders
    could participate in physical activity more often. In order to combat alarming rates of
    overweight and obesity, appropriate sport and active recreation opportunities need to be
    identified for Queenslanders, taking into account that participation choices are
    increasingly influenced by changing work and family patterns, competing priorities and
    the capacity of local communities to provide participation solutions.
•   Sport and active recreation are essential components in building vibrant, cohesive
    communities. As communities grow and change, competing pressures and priorities for
    the provision of land and infrastructure can impact on the availability of places and
    facilities for sport and recreation. Local governments can play a key role in identifying
    and planning for the participation needs of their communities and in delivering facilities
    and opportunities that assist Queenslanders to lead an active, healthy lifestyle.
•   Sport and active recreation also play a key role in enhancing the quality of life and in
    providing opportunities for community development in Queensland’s Indigenous
    communities. It is important for all sport and active recreation providers, including the
    department, to develop and deliver community based programs and solutions which are
    sufficiently flexible and respond to the needs of our Indigenous communities.
•   The sport and active recreation industry is a major provider of participation opportunities,
    yet faces significant challenges in keeping pace with the needs of Queenslanders. Access
    to appropriate support, resources and information is necessary for the industry in order to
    satisfy community expectations, respond to a more complex operating environment and
    build its capacity to provide safe, enjoyable and relevant participation opportunities – from
    the grassroots to the elite level.
•   The Queensland Government has made significant investments in sport and active
    recreation infrastructure. It is important that this infrastructure remains accessible and that
    future investments continue to meet the participation needs of Queenslanders.
•   Queensland has a unique comparative advantage over other States, through its mix of
    climate, lifestyle, facilities, elite athlete development services, expertise and environment.
    Collectively, these need to be harnessed and maximised to attract sport investment,
    participation, training and competition in support of the future development of sport in
    Queensland.
•   Continuing performance improvement in the world sporting arena is putting increased
    demands on Queensland to maintain and enhance its competitive edge in elite athlete
    development; including competition opportunities at a national and international level and
    access to the latest in sport technology, coaching expertise and skills in a lucrative and
    specialist market.
•   In a constantly changing global sporting environment, the need for long-term, pro-active
    planning for athlete development and excellence becomes essential to respond to these

2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation       4-2
    changes, thereby ensuring our athletes continue to perform at high standards in the world
    arena.

2006-07 HIGHLIGHTS
During 2006-07 the department will:

• Contribute an additional $4 million per year for the next three years as part of whole of
    Government efforts to combat rising levels of overweight and obesity. This will include:
     - a comprehensive social marketing campaign through television, radio and print media
         conveying simple messages on how to lead an active, healthy lifestyle. The campaign
         will be supported by referral advice, information and resources to help Queenslanders
         to make the active and the active and healthy lifestyle choice; and
     - a new community partnerships program, which will enable a wide range of
         organisations to establish community-led programs, particularly in areas of need. The
         grants will be designed to initiate innovative and sustainable approaches to increasing
         participation in physical activity locally and encouraging healthy food choices.
•   Deliver an Indigenous Sport Plan to support better sport and recreation opportunities in
    Indigenous communities through:
     - partnerships and collaboration with local communities, local governments, the
         Commonwealth and other agencies to deliver sport and recreation opportunities;
     - community identified solutions for getting more people involved in sport; and
     - more responsive and flexible funding and program arrangements.
•   Provide $0.50 million each year through the Young Athlete Assistance Program to assist
    children and young people with travel and accommodation costs where they have been
    selected to participate in State, national and international level sporting events.
•   Contribute nearly $50 million in grants to support the development of sport and recreation
    opportunities and facilities across Queensland, including:
     - $0.45 million to the Balonne Shire Council to construct a 25 metre x 6 lane
         community swimming pool at Dirranbandi;
     - $0.25 million to TRAWQ Community Council Inc. to construct a shade structure over
         multipurpose courts incorporating lighting and seating at Thursday Island;
     - $0.30 million to the Burke Shire Council to construct an aquatic facility at
         Burketown;
     - $2.77 million towards the Townsville PCYC to upgrade, refurbish and extend the
         existing facility;
     - $0.59 million to the Mareeba Shire Council to construct an aquatic centre at Kuranda;
     - $0.98 million to the Paradise Point Bowls Club to construct an outdoor synthetic
         bowls green; and
     - $0.75 million to The Australian Hellenic Sports and Cultural Association Inc to
         construct new fields and a multipurpose activities centre at Yeronga.
•   Work with Mirvac Queensland to complete early works for the Tennyson Riverside
    Development (demolition of the former power station and remediation of the site) and
    commence construction of the State Tennis Centre.
•   Prepare Queensland’s elite athletes for the 2008 Beijing Olympic Games through targeted
    training, sports science, athlete assistance and a range of other support services.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation      4-3
                                          OUTPUT PERFORMANCE

OUTPUT:              Services, Infrastructure and Facilities to Queensland – Sport and
                     Recreation

RELATED OUTCOME:                          Healthy, active individuals and communities

DESCRIPTION
The department develops policies, strategies, programs and administers funding to:
• encourage more Queenslanders to participate in sport and active recreation;
• build a sport and active recreation industry responsive to the participation needs of
  Queenslanders;
• achieve better planned, vibrant communities with improved access to sport and active
  recreation places and facilities which support participation from the grass roots to elite
  levels;
• position Queensland nationally and internationally as a premier sport location; and
• develop elite athletes to optimise Queensland’s national and international sporting success
  and ensure recognition of Queensland’s athletes as sporting ambassadors for Queensland
  and Australia.


REVIEW OF OUTPUT PERFORMANCE
Recent Achievements
A key priority for the department is to build sustainable, cohesive communities and advance
the well-being of all Queenslanders. Sport and active recreation are recognised as key
ingredients in the social fabric of well functioning communities, as well as improving
individual health and lifestyle. From the Torres Strait to Coolangatta, communities are being
assisted by the department to achieve a more active lifestyle through:
• Contributing to key policy initiatives to promote physical activity and combat overweight
   and obesity, such as:
    - the Queensland Obesity Summit, where the department played a major role in
        identifying policy priorities and new program initiatives to encourage Queenslanders
        to lead an active, healthy lifestyle; and
    - Eat well, be active – healthy kids for life action plan, which includes major elements
        of the department’s Get Active Queensland Children and Young People Strategy.
• Developing a range of new sport and physical activity programs, including school holiday
   programs, at the department’s Active Recreation Centres.
• Providing $13 million and a range of resources and education based workshops to support
   the development of sport and active recreation organisations at the State and local levels
   and their capacity to deliver services and participation opportunities.
• Supporting more sustainable participation opportunities in Indigenous communities by:
    - providing $2.3 million for programs, events and the employment of Indigenous sport
        and recreation officers - providing on-the-ground, locally based sport and physical
        activity opportunities in over 40 communities across Queensland;
    - introducing the Indigenous Facilities Management Training Program, enabling 15
        Indigenous sport and recreation officers to develop skills in facility management and
        operation;
    - providing $0.79 million over three years to support six State sporting organisations to
        deliver appropriate sport and recreation opportunities in Cape York communities; and

2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation   4-4
     -   improving access by children in remote Indigenous communities to programs such as
         the Locker Rooms and the Get Active Queensland Schools Program.
•   Streamlining and standardising sport and recreation funding programs to better support the
    development of local participation opportunities.
•   Implementing the Fair Go program to assist sport and active recreation organisations to
    promote a harassment-free environment in junior sport.
•   Completing construction of the Townsville Sports House as a key facility for regional
    sporting associations and the department in North Queensland.
•   Providing more than $30 million in grants to support the development and delivery of
    quality sport and recreation facilities throughout Queensland.
•   Establishing the Regional Tennis Facilities Program, providing $10 million over four
    years to support the development of major tennis centres in regional Queensland.
•   Finalising the development agreement with Mirvac Queensland for the Tennyson
    Riverside Development project, providing the opportunity to develop an international-
    standard State Tennis Centre at Tennyson.
•   Funding the Major Sports Facilities Authority to upgrade and improve the standard of its
    venues, including an additional 5,300 seats and improved catering facilities at Dairy
    Farmers Stadium and the completion of the final stage of the Brisbane Cricket Ground.
•   Completing the planning and design stages of the new $10 million Rehabilitation and
    Recovery Centre for the Queensland Academy of Sport.
•   Preparing Queensland’s elite athletes for the 2006 Commonwealth Games, where the
    Queensland Academy of Sport athletes brought home 38 gold, 12 silver and 12 bronze
    medals - 11 medals more than for the 2002 Manchester Commonwealth Games.
•   Supporting the research program at the Centre of Excellence for Applied Sport Science
    Research, Queensland’s leading centre dedicated to applied research initiatives in sport
    science, sports medicine, psychology and nutrition. In 2005, the Centre of Excellence was
    granted an Australian Research Council Grant, in partnership with Griffith University.
•   Delivering Queensland Academy of Sport programs including the Talent Search Program
    and athlete and coach support services. In 2006, 3,400 school students were tested in
    Cairns to identify future elite athletes.

Future Developments
Combatting rising levels of overweight and obesity through physical activity (particularly for
children and young people) is a primary focus for the year ahead. The department will play a
leading role in the delivery of practical initiatives to promote greater participation in physical
activity through sport and active recreation. Building participation opportunities in remote
and Indigenous communities and contributing to the State’s impressive inventory of local
sport and recreation facilities will also be key priorities. To this end, the department will:
• Contribute an additional $4 million per year for the next three years for:
    - a comprehensive social marketing campaign through television, radio and print media
        conveying simple messages on how to lead an active, healthy lifestyle. The campaign
        will be supported by referral advice, information and resources to help Queenslanders
        to make the active and healthy lifestyle choice; and
    - a new community partnerships grants program, which will enable a wide range of
        organisations to establish community-led programs, particularly in areas of need. The
        grants will be designed to initiate innovative and sustainable approaches to increasing
        participation in physical activity locally and encouraging healthy food choices.
• Deliver an Indigenous Sport Plan to support better sport and recreation opportunities in
   Indigenous communities through:




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation      4-5
     -   partnerships and collaboration with local communities, local governments, the
         Commonwealth and other agencies to deliver sport and recreation opportunities and
         facilities in remote communities;
     - community-identified solutions for getting more people involved in sport; and
     - more responsive and flexible funding and program arrangements.
•   Provide $0.50 million each year through the Young Athlete Assistance Program to assist
    children and young people with travel and accommodation costs where they have been
    selected to participate in State, national and international level sporting events.
•   Work with the Department of Education and the Arts to increase the uptake in schools of
    the Get Active Queensland Children and Young People Strategy resources and programs
    (including training and coaching accreditation for teachers) and support the development
    of school sport and recreation facilities for community use.
•   Work with industry peak bodies and other stakeholders to establish a Sport and Recreation
    Industry Skills Alliance, which will play a strategic role in the identification and
    prioritisation of education and training needs for the industry.
•   Support the development of the South East Queensland Outdoor Recreation Strategy as
    part of the South East Queensland Regional Plan, to assist State agencies, local
    governments and other key stakeholders to better coordinate the delivery of outdoor
    recreation places and services in the region.
•   Contribute nearly $50 million to the development of sport and recreation opportunities and
    facilities across Queensland, including:
     - $0.45 million to the Balonne Shire Council to construct a 25 metre x 6 lane
         community swimming pool at Dirranbandi;
     - $0.25 million to TRAWQ Community Council Inc. to construct a shade structure over
         multipurpose courts incorporating lighting and seating at Thursday Island;
     - $0.30 million to the Burke Shire Council to construct an aquatic facility at
         Burketown;
     - $2.77 million towards the Townsville PCYC to upgrade, refurbish and extend the
         existing facility;
     - $0.59 million to the Mareeba Shire Council to construct an aquatic centre at Kuranda;
     - $0.98 million to the Paradise Point Bowls Club to construct an outdoor synthetic
         bowls green; and
     - $0.75 million to The Australian Hellenic Sports and Cultural Association Inc to
         construct new fields and a multipurpose activities centre at Yeronga.
•   Pursue opportunities to market Queensland as a premier destination for sport training and
    competition in the lead up to the Beijing Olympics in 2008.
•   Work with Mirvac Queensland to complete early works for the Tennyson Riverside
    Development (demolition of the former power station and remediation of the site) and
    commence construction of the State Tennis Centre.
•   Fund and support the Major Sports Facilities Authority (MSFA) to maintain, develop and
    promote the State’s national standard sporting facilities. This includes progressing the
    development of a new rectangular field stadium at Robina, the attraction of major sporting
    events to the MSFA’s facilities and improvements to existing venues to ensure these world
    class facilities remain available for present and future generations of Queenslanders.
•   Continue the Queensland Academy of Sport Coach Excellence Program, providing
    talented coaches with the skills, knowledge and experience to coach at an elite level.
•   Prepare Queensland’s elite athletes for the 2008 Beijing Olympic Games through targeted
    training, sports science, athlete assistance and a range of support services.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation   4-6
                                                OUTPUT STATEMENT
Output:        Services, Infrastructure and Facilities to Queensland - Sport and Recreation
                                                                               2005-06             2005-06       2006-07
Measures                                                      Notes
                                                                            Target/Est.         Est. Actual   Target/Est.
Quantity
Percentage increase in Queenslanders
participating in the department’s sport and
recreation programs.                                                     New Measure                     ..          5%
Percentage of Queensland schools utilising
Children and Young People Strategy
resources.                                                               New Measure                     ..         10%
Number of national and international
sporting teams choosing Queensland as
their preferred location for training.                               1                     32           32             ..
Number of schools visited by Queensland
Academy of Sport (QAS) athletes.                                  1, 2                 150             295             ..
Number of Queenslanders participating in
the department’s sport and active recreation
participation programs.                                              3           379,450           390,000       401,700
Number of Queenslanders participating in
the department’s sport and recreation skills
programs.                                                         1, 4              3,615            3,810             ..
Number of athletes assessed by the Talent
Search program in Queensland.                                     1, 5              2,000            3,500             ..
Percentage of QAS athletes selected for
national teams.                                                      6                22%             28%           22%
Quality
Stakeholder satisfaction with services
provided by QAS.                                                         New Measure                     ..         85%
Participant satisfaction with the department’s
sport and recreation programs.                                           New Measure                     ..         75%
Client satisfaction with the department’s
advice and other services provided.                                      New Measure                     ..         70%
Average satisfaction rating, on a scale of 1-
5, of surveyed participants in sport and
active recreation skills programs.                                   1                     4             4             ..
Average satisfaction rating, on a scale of 1-
5, of surveyed participants in sport and
recreation participation programs.                                   1                     4             4             ..
Number of athletes meeting or exceeding
their personal development goals in relation
to the Get Active Queensland Schools
Program.                                                             1                90%             90%              ..
Timeliness
Percentage of Grant notifications within
agreed timeframes.*                                                      New Measure                     ..         92%
Location
Percentage of QAS athletes located in
regional Queensland.                                                     New Measure                     ..         30%
Percentage of grant funds distributed to
regional and remote areas.                                               New Measure                     ..         50%
Cost ($)
Average QAS investment per athlete.                                      New Measure                     ..       $8,934



2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation                             4-7
Output:        Services, Infrastructure and Facilities to Queensland - Sport and Recreation
                                                                               2005-06         2005-06              2006-07
Measures                                                      Notes
                                                                            Target/Est.     Est. Actual          Target/Est.
Total Investment in sport and recreation
infrastructure in Queensland.                                        7       $54 million   $66.9 million        $56.6 million
Total investment in sport and recreation
                                                                     8     $17.8 million   $17.8 million        $21.1 million
participation and development programs.
State Contribution ($’000)                                      9, 10            176,923         166,637             137,084
Other Revenue ($’000)                                              10              4,839           5,017              32,752
Total Cost ($’000)                                                  9            181,762         171,654             169,836
Notes:

1. While all of the 2005-06 programs will continue, the department has revised its output measures (see 2006-07 New
    Measures in the Output Statement) to better assess the impact and effectiveness of its programs and services for
    Queensland communities. Therefore, this measure will be discontinued from 2005-06. This approach is consistent with the
    recommendations of the Auditor-General’s Report No. 5 of 2005, “Results of Performance Management Systems Audits of
    Output Performance Reporting”.
2. 2005-06 Estimated Actual is higher than 2005-06 Target Estimate due to increased community interest in the program and
    the associated response by the department to this demand.
3. 2005-06 Estimated Actual is higher than 2005-06 Target Estimate primarily due to expansion of program activity at the
    Currimundi, Lake Tinaroo and Tallebudgera Active Recreation Centres, including the introduction of school holiday programs
    at these three centres.
4. 2005-06 Estimated Actual is higher than 2005-06 Target Estimate primarily due to increased community demand for Building
    Active Communities workshops, particularly those relating to child safe environments for sport and recreation and attracting
    and developing volunteers.
5. 2005-06 Estimated Actual is higher than the 2005-06 Target Estimate due to a greater than expected interest in the Cairns-
    based baseball and softball talent identification project.
6. 2005-06 Estimated Actual is higher than the 2005-06 Target Estimate as the number of QAS athletes selected for the 2006
    Commonwealth Games Team was higher than expected, particularly in the sports of hockey, triathlon and swimming.
7. 2005-06 Estimated Actual is higher than 2005-06 Target Estimate and 2006-07 Target Estimate primarily due to an
    additional capital grant for the development of the Queensland Academy of Sport Indoor Rehabilitation and Recovery Centre
    at the Queensland Sports and Athletics Centre, Nathan.
8. 2006-07 Target Estimate is higher than 2005-06 Estimated Actual primarily due to the introduction of two new financial
    assistance programs – the Young Athlete Assistance Program and the Community Partnerships Program for combating
    overweight and obesity.
9. 2005-06 Estimated Actual is less than 2005-06 Target Estimate primarily due to the reclassification of operational funding to
    capital funding to support early works for the Tennyson Riverside Development (TRD). The majority of this funding will be
    reimbursed to the department once Mirvac Queensland receives development approval for the TRD and satisfies contractual
    conditions.
10. The movement reflects the realignment of funding between output revenue and grants and other contributions. This
    realignment relates to the funding the department will receive from the Community Investment Fund to assist the Major
    Sports Facilities Authority with its debt servicing commitments in relation to the development of Suncorp Stadium, the final
    stage of the Brisbane Cricket Ground and the construction of the rectangular field stadium at Robina.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation                                  4-8
Output Income Statement – Services, Infrastructure and Facilities to
Queensland – Sport and Recreation
                                                                                           2005-06    2005-06      2006-07
                                                                          Notes            Budget     Est. Act.   Estimate
                                                                                             $’000       $’000       $’000

Income
  Output revenue                                                              1,2          176,923    166,637      137,084
  User charges                                                                  3            3,154      3,146        3,878
  Grants and other contributions                                                4            1,109      1,307       28,318
  Other Revenue                                                                                576        564          556
  Gains on sale/revaluation of property, plant and                                               ..         ..           ..
  equipment and investments
Total income                                                                               181,762    171,654      169,836

Expenses
 Employee expenses                                                           5,6            23,336     25,513       26,724
 Supplies and services                                                       7,8            29,603     22,106       18,460
 Grants and subsidies                                                       9,10           120,523    116,318      115,946
 Depreciation and amortisation                                                11             4,796      4,068        4,860
 Finance/borrowing costs                                                                         ..         ..           ..
 Other expenses                                                                              3,504      3,649        3,846
 Losses on sale/revaluation of property, plant and                                               ..         ..           ..
 equipment and investments
Total expenses                                                                             181,762    171,654      169,836


OPERATING SURPLUS/ (DEFICIT)                                                                     ..          ..             ..


Notes:

1. The decrease in the 2005-06 Estimated Actual from the 2005-06 Budget is primarily due to the reclassification of
    operational funding to capital funding to support early works for the Tennyson Riverside Development Project (TRD). The
    majority of this funding will be reimbursed to the department once Mirvac Queensland receives development approval for
    the TRD and satisfies contractual conditions.
2. The 2006-07 Estimate is lower than the 2005-06 Budget principally due to the realignment of funding between output
    revenue and grants and other contributions. This realignment relates to the funding the department will receive from the
    Community Investment Fund to assist the Major Sports Facilities Authority with its debt servicing commitments in relation
    to the development of Suncorp Stadium, the final stage of the Brisbane Cricket Ground and the construction of the
    rectangular field stadium at Robina. The decrease also reflects the completion of commitments deferred from the 2004-05
    financial year.
3. The 2006-07 Estimate increase is due to projected increases in revenue from the Active Recreation Centres as new
    programs are introduced at a number of centres.
4. The 2006-07 Estimate is higher than the 2005-06 Budget principally due to the realignment of funding between output
    revenue and grants and other contributions (see Note 2 above).
5. The 2005-06 Estimated Actual is higher than the 2005-06 Budget primarily due to additional resources for the delivery of
    programs at the Active Recreation Centres and to meet the operational requirements of the department.
6. The 2006-07 Estimate is higher than the 2005-06 Budget primarily as a result of additional Enterprise Bargaining (EB)
    supplementation and the realignment of funds for the operational requirements of the department.
7. The 2005-06 Estimated Actual is less than the 2005-06 Budget primarily due to the reclassification of operational funding
    to capital funding to support early works for the Tennyson Riverside Development Project (TRD). The majority of this
    funding will be reimbursed to the department once Mirvac Queensland receives development approval for the TRD and
    satisfies contractual conditions.
8. The decrease between the 2005-06 Budget and the 2006-07 Estimate principally reflects the realignment of operational
    funding to meet grants and subsidies commitments.
9. The 2005-06 Estimated Actual is less than the 2005-06 Budget principally due to the realignment of funding to 2006-07 to
    meet current year grant commitments that will not be drawn down in 2005-06.
10. The 2006-07 Estimate is less than the 2005-06 Budget principally due to the completion of grants and subsidies
    commitments carried over from 2004-05. Partially offsetting this decrease is an increase due to the realignment of
    resources from supplies and services.
11. The 2006-07 Estimate is less than the 2005-06 Budget due to the realignment of funding resulting from the adoption of the
    Australian Equivalents to the International Financial Reporting Standards changes.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation                                 4-9
                                            ADMINISTERED ITEMS

Gold Coast Events Company
The Gold Coast Events Company (GCEC) is a Government-owned company established as
the vehicle for holding and managing the Government’s 50% ownership of the Gold Coast
Motor Events Company (GCMEC), which conducts the annual Lexmark Indy 300 on the
Gold Coast.

The four day event is conducted under a partnership agreement between GCEC and the
International Management Group of America Pty Ltd (IMG). Under the terms of the
partnership agreement, IMG manages the operations of the event and underwrites any losses.

The Queensland Government provides a non-refundable grant to the race organisers to assist
with the staging of the event. The Government will contribute $11.4 million towards the
staging of the 2007 event.

The event provides a significant economic return to Queensland. It is estimated the
2005 event generated approximately $60.1 million in economic benefits to the State and
attracted record crowds, with more than 316,000 people attending the event over four days.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation   4 - 10
                                          CAPITAL ACQUISITIONS

The department’s asset base primarily consists of land and buildings at active recreation
centres, the Townsville Sports Reserve, Sports Houses, the site for the new State Tennis
Centre at Tennyson, computer equipment and other information technology (desktop
computers, printers, photocopiers and the supporting network). Capital funding is used to
meet the planned, cyclical replacement of these assets as well as maintaining and enhancing
this infrastructure and these facilities.

The Capital Acquisition Statement on the following page provides an overview of the
funding provided and expended in 2005-06 and planned acquisitions in 2006-07.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation   4 - 11
                                    CAPITAL ACQUISITION STATEMENT
                                                                                           2005-06    2005-06      2006-07
                                                                          Notes            Budget     Est. Act.   Estimate
                                                                                             $’000       $’000       $’000

PROPERTY PLANT AND EQUIPMENT

Property Plant and Equipment
  General Acquisitions                                                           1             600         282          209
  Townsville Sports House                                                        2           2,000       2,078           87
  Active Recreation Centres                                                      3           3,274       2,903        4,877
  Tennyson Riverside Development Project                                         4               ..      3,184        6,700
  Townsville Sports Reserve                                                      5               ..        733          395

Other acquisitions of property, plant and
equipment                                                                                        ..          ..             ..

TOTAL PROPERTY PLANT AND EQUIPMENT                                                           5,874       9,180       12,268


OTHER CAPITAL ACQUISITIONS

Other Capital Acquisitions                                                                       ..          ..             ..

Other Items                                                                                      ..          ..             ..

TOTAL OTHER CAPITAL ACQUISITIONS                                                                 ..          ..             ..

TOTAL CAPITAL ACQUISITIONS                                                                   5,874       9,180       12,268


FUNDING SOURCES OF ACQUISITIONS

  Equity Adjustment                                                              6           1,270       3,341        7,530
  Funding for depreciation and amortisation                                      7           4,604       3,900        4,738
  Borrowings                                                                                     ..          ..           ..
  Proceeds of asset sales                                                                        ..          ..           ..
  Other                                                                          8               ..      1,939            ..

TOTAL FUNDING SOURCES                                                                        5,874       9,180       12,268


Notes:

1. The 2005-06 Estimated Actual is lower than the 2005-06 Budget primarily due to the realignment of funding resulting from
   the implementation of Australian Equivalents to International Financial Reporting Standards (AEIFRS) changes. This
   decrease has been partially offset by funds deferred from 2004-05 to complete projects.
2. The 2006-07 Estimate is less than the 2005-06 Budget due to the completion of the Townsville Sports House.
3. The 2005-06 Estimated Actual is less than the 2005-06 Budget due to the realignment of funding from 2005-06 to 2006-07
   to complete existing projects.
4. The 2005-06 Estimated Actual reflects the reclassification of operational funding to capital funding to support early works
   for the Tennyson Riverside Development Project (TRD). The majority of this funding will be reimbursed to the department
   once Mirvac Queensland receives development approval for the TRD and satisfies contractual conditions.
5. The 2005-06 Estimated Actual and 2006-07 Estimate represent additional works to support the operation of and attraction
   of events to, the Townsville Sports Reserve.
6. The increase reflects the funding sources and profiles of the projects being undertaken including the reclassification of
   operational funding to capital funding to support the early works for the Tennyson Riverside Development Project.
7. The 2005-06 Estimated Actual is lower than the 2005-06 Budget primarily due to the realignment of funding resulting from
   the implementation of AEIFRS changes. The 2006-07 Estimate is higher than the 2005-06 Estimated Actual due to a
   realignment of funding for increased depreciation expense as a result of the commissioning of completed assets.
8. The 2005-06 Estimated Actual represents funding realigned from 2004-05 to fund projects in 2005-06.




2006-07 Queensland State Budget – Ministerial Portfolio Statement – Sport and Recreation                                 4 - 12
                                                                                 APPENDIX
                            GLOSSARY OF TERMS


Accrual            Recognition of economic events and other financial transactions
Accounting         involving revenue, expenses, assets, liabilities and equity as they occur
                   and reporting in financial statements in the period to which they relate,
                   rather than when a flow of cash occurs.

Accrual Output     A process through which agencies are funded and monitored on the
Budgeting (AOB)    basis of delivery (performance) of outputs which have been costed on a
                   full accrual basis. Queensland’s model of AOB, Managing for
                   Outcomes, is a fully integrated planning, budgeting and performance
                   management framework.

Administered       Assets, liabilities, revenues and expenses an agency administers on
Items              behalf of the Government without discretion.

Agency             Used generically to refer to the various organisational units within
                   Government that deliver services or otherwise service Government
                   objectives. The term can include departments, commercialised business
                   units, statutory bodies or organisations established by Executive
                   decision rather than legislation.

Appropriation      Represents Parliamentary authority for the Treasurer to issue funds to
                   agencies during a financial year for:
                   • delivery of agreed outputs
                   • administered items
                   • adjusting the Government’s equity in agencies.

Balance Sheet      A financial statement that reports the assets, liabilities and equity of an
                   entity as at a particular date.

Capital            A term used to refer to the stock of assets, including property, plant and
                   equipment, intangible assets and inventories, that an agency owns
                   and/or controls, and uses in the delivery of services, and capital grants
                   made to other entities.

Cash Flow          A financial statement which reports the inflows and outflows of cash
Statement          for a particular period for the operating, investing and financing
                   activities undertaken by an agency or the Government as a whole.

Controlled Items   Assets, liabilities, revenues and expenses that are controlled by
                   departments, in that they relate directly to the departmental operational
                   objectives and which arise at the discretion and direction of the
                   department concerned.
Depreciation         The periodic allocation of the cost of physical assets, representing the
                     amount of the asset consumed during a particular period of time.

Equity               Equity is the residual interest in the assets of the entity after deduction
                     of its liabilities. It usually comprises the agency’s accumulated
                     surpluses/losses, capital injections and any reserves.

Equity Injection     An increase in the investment of the Government in a public sector
                     agency.

Financial            Collective description of the Income Statement, the Balance Sheet and
Statements           the Cash Flow Statement.

Income Statement A financial statement highlighting the accounting surplus or deficit of
                 an entity. It provides an indication of whether the entity has sufficient
                 revenue to meet expenses in the current year, including non-cash costs
                 such as depreciation.

Outcomes             Whole-of-Government Outcomes are intended to cover all dimensions
                     of community well being. They express the current needs and future
                     aspirations of communities, within a social, economic and environment
                     context.

Outputs              Discrete services or products for external customers or consumers
                     produced by agencies with funding from the Government.

Own-Source           Revenue generated by an agency, generally through the sale of goods
Revenue              and services but may also include approved Commonwealth Specific
                     Purpose Payments.

Priorities           The Government’s Priorities represent the areas of policy for focussed
                     attention during a given term. They highlight key areas where improved
                     results are sought.


For a more detailed Glossary of Terms, please refer to the Reader’s Guide available on the
Budget website at www.budget.qld.gov.au.




                    By authority: R. J. Hunt, Government Printer, Queensland-2006

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:9/11/2011
language:English
pages:140