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department of sustainability, environment, water, population and communities

Annual Report

2010–2011

Address: Main Office: John Gorton Building


King Edward Terrace, Parkes Act 2600

Mail: GPO Box 787


Canberra ACT 2601

Internet: www.environment.gov.au

Phone: 02 6274 1111
+61 2 6274 1111 (international)

Fax: 02 6274 1666


+61 2 6274 1666 (international)

© Commonwealth of Australia 2011

ISSN 1441-9335

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth, available from the Australian Government Department of Sustainability, Environment, Water, Population and Communities.



Acknowledgements

All images are copyright of Department of Sustainability, Environment, Water, Population and Communities, unless otherwise indicated.



Contents

Executive summary 9

Secretary’s review 9

Department overview, outcome and portfolio structure 12

Performance 20



Outcome 1: Biodiversity and ecosystems 22

Program 1.1 Sustainable management of natural resources 24

Program 1.2 Environmental regulation, information and research 52

Legislation reporting:



The Natural Heritage Trust Annual Reports 2009–10 and 2010–11 98

Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) 2010–11 Annual Report 106

Outcome 2: Sustainable environment 160

Legislation reporting:



The Hazardous Waste (Regulation of Exports and Imports) Act 1989 176

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 179

The Product Stewardship (Oil) Act 2000 188

The Fuel Quality Standards Act 2000 (FQS Act) 196

Outcome 3: Antarctica 210

Outcome 4: Sustainable water 228

Legislation reporting:



Water Efficiency Labelling and Standards Act 2005 258

Commonwealth Environmental Water Annual Report 2010–11 261

Outcome 5: Heritage conservation 294

This chapter incorporates Outcome 7—Conservation and Protection of Australia’s Heritage, which was created to reflect reporting requirements in the 2010–11 Portfolio Additional Estimates.



Outcome 6: Sustainable population and communities 322

Corporate outcome: Organisational effectiveness and efficiency 334

Human resources 337

Corporate governance 345

Audit, risk and fraud control 347

Procurement 349

Cross-portfolio activities 351

Stakeholder relations 358

External scrutiny 362

Environmental sustainability and performance 365

Financial performance and financial position 390



Appendices 399

Financial Statements 458

Glossary 621

List of Requirements 634

Index 638

Image credits 660

guide to the annual report

The Department of Sustainability, Environment, Water, Population and Communities Annual Report 2010–11 has been prepared in line with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies as approved by the Joint Committee of Public Accounts and Audit under subsections 63/4 and 70(2) of the Public Service Act 1999.

This report is presented in seven sections as outlined below.

Executive summary


  • a review by the secretary

  • an overview of portfolio structure, and a summary of the department’s financial performance.

Report on performance by outcomes1

Outcome 1: Biodiversity and ecosystems

Inclusive of legislation reporting:

The Natural Heritage Trust Annual Reports 2009–10 and 2010–11 Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) 2010–11 Annual Report

Outcome 2: Sustainable environment

Inclusive of legislation reporting:

The Fuel Quality Standards Act 2000 (FQS Act)

The Hazardous Waste (Regulation of Exports and Imports) Act 1989

The Product Stewardship (Oil) Act 2000

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989

Outcome 3: Antarctica

Outcome 4: Sustainable water

Inclusive of legislation reporting:

Water Efficiency Labelling and Standards Act 2005
Commonwealth Environmental Water Annual Report 2010–11


Outcome 5: Heritage conservation

Outcome 5 reports against Program 5.1—Arts and Cultural Development, and Program 5.2—Conservation and Protection of Australia’s Heritage as per the 2010–11 Budget. Although Program 5.1 was transferred to the Department of the Prime Minister and Cabinet as a result of the Machinery of Government changes in October 2010, reporting requirements for this Program continued for funding appropriated in the 2010–11 Budget. This chapter incorporates Outcome 7—Conservation and Protection of Australia’s Heritage, which was created to reflect reporting requirements in the 2010–11 Portfolio Additional Estimates.



Inclusive of legislation reporting:

Aboriginal and Torres Strait Islander Heritage Protection Act 1984

Outcome 6: Sustainable population and communities

Included as a result of the Administrative Arrangement Orders announced on 14 September 2010. It incorporates sustainable population policy from the Department of the Treasury, and housing supply and affordability policy from the Department of Families, Housing, Community Services and Indigenous Affairs.



Corporate outcome: Organisational effectiveness and efficiency

  • Human resources

  • Workforce planning and staff retention

  • Enterprise agreements

  • Learning and development

  • Social inclusion

  • Code of conduct and ethical standards

  • Corporate governance

  • Audit, risk and fraud control

  • Asset management

  • Business continuity plan

  • Certificate of compliance

  • Procurement

  • Cross-portfolio activities

  • External scrutiny

  • Environment reporting

  • Financial statements

Appendix

Workforce profile

Occupational Health and Safety

Committee roles and achievements

Grants administered by the department

Consultancy services

Advertising and marketing expenditure

Legislation administered by the department

Freedom of information

Other information—correction of material errors from 2009−10 annual report



Financial Statements

This section contains the department’s audited financial statements for the year ending 30 June 2011.



Glossary, List of Requirements and Index

The report includes a glossary of terms and acronyms, a list of requirements for locating mandatory and suggested information and an alphabetic index.



Enquiries

The department welcomes comment on this report. Enquiries and feedback may be directed to:

Assistant Secretary

Communication and Ministerial Services Branch

Department of Sustainability, Environment, Water, Population and Communities

GPO Box 787

Canberra ACT 2601

Copies of this annual report and other departmental publications can be requested online at www.environment.gov.au/about/publications/order-form.html



Online annual report

An online version of this annual report and related information is available at www.environment.gov.au



executive summary

Secretary’s review

It was a year of change and opportunity for the department in 2010–11. With a new minister and a parliamentary secretary, our name changed to reflect a substantially expanded agenda. After beginning the year as the Department of the Environment, Water, Heritage and the Arts, we became the Department of Sustainability, Environment, Water, Population and Communities.

The Machinery of Government changes of September 2010, and the new outcomes outlined in the May Portfolio Budget Statements, provided a broader framework for policy development and program delivery.

The addition of sustainability is reflected not only in our departmental name, but in the very essence of our work. The elements of sustainability – economic, social and environmental – are already playing out in marine bioregional planning, in built and natural environments and heritage, in science and research, in water reform, in national waste policy, in strategic assessments under the Environment Protection and Biodiversity Conservation Act 1999, in wildlife corridors, in housing programs and in the development of sustainability indicators- announced in the 2011–12 budget.

This emphasis on a sustainable Australia is set to continue to shape the department’s work developing policies and delivering programs in the interests of the wellbeing of all Australians.

The department’s achievements contained within this annual report reflect the combined input of a dedicated and enthusiastic staff. I particularly acknowledge the efforts and contribution of all members of the department throughout the year.



Biodiversity

We assisted in delivering on the government’s commitment to protecting biodiversity across the continent and in our oceans. The department worked with natural resource management stakeholders including Indigenous Australians, landholders and community groups to identify ways to better protect and manage the natural environment.

As well as consulting widely on the review of the Caring for our Country program, we consulted with regional communities, industries, groups and individuals on the establishment of a network of marine reserves for the benefit of healthy and productive oceans. As part of this process, marine bioregional plans are being developed for each of the identified marine regions in the South-west, North-west, North and East.

On behalf of all governments we managed the preparation of Australia’s Biodiversity Conservation Strategy and supported its launch during the International Year of Biodiversity.



Water

As 2010–11 saw the breaking of the drought in south-eastern Australia, national water reform continued as a key priority for the department. The focus of our work ranged widely from urban water use to on-farm water efficiency programs. The Murray-Darling Basin continued to be a significant area of activity. During the year, the Murray-Darling Basin Authority (MDBA) released its Guide to the Murray-Darling Basin Plan and the department participated extensively in the subsequent community consultation sessions in towns and cities across the basin.

The public consultation process highlighted community concerns with the processes underpinning the MDBA’s preparation of the Guide. The MDBA has subsequently undertaken further extensive work in advance of the publication of the Proposed Basin Plan later this year. The community consultation process was also valuable in providing an opportunity for the department to hear views about the programs we are delivering, including the management of water to be allocated to the environment and other elements of the Water for the Future reform agenda.

Murray-Darling Basin water ministers met regularly in 2011 to discuss the progress of reforms. A particular area of concern for ministers was the pace of the roll out of infrastructure programs under the ‘State Priority Projects’ banner. The department has invested effort in improving its engagement with state and territory water departments, and working with counterparts in state governments to overcome the barriers to the roll out of the state priority projects. This has established a good platform for further cooperation in the implementation of water reforms over the coming years.

In April 2011, an important milestone was reached with just over a thousand gigalitres of water entitlements secured from infrastructure and water purchase programs. This water will be dedicated to the environment, thereby supporting future healthy, productive rivers for local communities, irrigators and the nation.

National environment law

This year also marked a shift towards a more proactive, streamlined and holistic approach to biodiversity conservation including the continuation of work leading up to the government’s response to the independent review of the Environment Protection and Biodiversity Conservation Act 1999 – our national environment law.

The department managed a demanding environmental assessment program. Our workload in this area has risen sharply in recent years, driven particularly by the growth of major resource development projects across the nation.

Over the past 12 months some extremely large and complex assessments were completed. Department officers developed more than 300 conditions for each of three coal seam gas projects approved in Queensland to minimise their environmental impact, and assessed world-first technology for a floating LNG facility.

There were also good compliance achievements, including Operation CETUS, which saw our compliance and enforcement officers joining forces with state colleagues and the Great Barrier Reef Marine Park Authority to monitor the activities of people interacting with whales and ensuring a stress-free migration period.

Closing the Gap

A number of the department’s environmental and heritage conservation programs are proving to be a vehicle for meaningful Indigenous community participation, stimulating economic development and community capacity in regional and remote locations where there are few other employment opportunities. These programs form part of the government’s coordinated efforts to close the gap on Indigenous disadvantage.

The Working on Country Indigenous ranger program employed over 625 Indigenous rangers during 2010–11 to manage and protect significant environmental assets and our biodiversity over 1.5 million square kilometres across Australia. It was exciting to see several ranger teams receive national awards for their successes and achievements.

In line with our five-year strategic plan, Working on Country continues to contribute to key Closing the Gap outcomes, Indigenous Economic Development and Safe and Supportive Communities.

Indigenous Protected Areas remain one of Australia’s conservation success stories. Today Australia has 44 Indigenous Protected Areas, protecting more than 26 million hectares across the country.

Indigenous Protected Areas work because they recognise the crucial relationship between Indigenous Australians, the land and sea. They provide jobs and training opportunities, often in remote areas where business opportunities are limited. Rangers have told us that Indigenous Protected Areas lead to a range of wider community outcomes such as better health, better school attendance and greater social cohesion.

In 2010–11, 2.36 million hectares were protected through the Indigenous Protected Area program, including the spectacular Uunguu Indigenous Protected Area. Uunguu, meaning ‘living home’, protects more than 340 000 hectares of north Kimberley coastline.

Antarctica

The year saw another full range of activity under the department’s Antarctic program. The 2010–11 summer season presented a number of operational challenges for the Australian Antarctic Division, including assisting the French program following a fatal helicopter accident early in the season.

In 2011 we celebrate the 100th anniversary of Sir Douglas Mawson’s 1911–1914 Australasian Antarctic Expedition to Commonwealth Bay. Events to commemorate Mawson’s expedition will continue through to 2012.

Our scientists continue globally significant and coordinated research in the Antarctic and the Southern Ocean into critical issues such as climate change and increased global demands for food.



Heritage

This has been a significant year for heritage protection with the World Heritage Listing of Ningaloo Reef in Western Australia, the World Heritage Listing of Koongarra within Kakadu National Park and seven places added to the National Heritage List including the Great Ocean Road and Scenic Environs. We supported the Australian Government’s inaugural Heritage Week in April which was marked with more than 300 events across the country.

Offshore, Commonwealth heritage listings included the HMAS Sydney II and the HSK Kormoran shipwreck sites. The loss of HMAS Sydney II, along with its entire crew of 645, remains Australia’s worst naval disaster.

Waste

This year saw further progress in the implementation of Australia’s first National Waste Policy: Less Waste, More Resources, resulting in groundbreaking product stewardship initiatives and the passage of the Product Stewardship Bill.

The policy heralds a new and environmentally responsible approach to waste management in Australia. Agreed by all Australian environment ministers, it sets Australia’s waste management and resource recovery direction to 2020.

Products on the National Waste Policy implementation plan for product stewardship action include televisions and computers, packaging, tyres and mercury-containing lights.

Work was undertaken towards the development of a Regulatory Impact Statement on a range of measures to address packaging waste and litter, including container deposit options.

Sustainable communities

Following extensive consultation across governments and the community, we assisted the government in the delivery of Australia’s sustainable population strategy, Sustainable Australia – Sustainable Communities, in May 2011. Work has continued on a range of policies and programs underpinned by the principles of economic prosperity, liveable communities and environmental sustainability.

The Sustainable Australia – Sustainable Communities strategy includes measures designed to support affordable housing in areas where demand for work is increasing. It also includes planning for sustainable regional development, assistance to facilitate the location of more jobs in outer suburban areas of major metropolitan cities and sustainability measurement programs.

With additional responsibilities for housing policies and housing affordability programs, we continue to work with state, territory and local governments, community organisations and the private sector in responding to the factors affecting housing affordability for many Australians.



Our leadership team

During the year Ms Robyn Kruk announced her resignation as secretary of the department ahead of taking up a new role as Chief Executive of the government’s new Mental Health Commission. Ms Kruk provided strong leadership during a period of significant change and was greatly admired throughout the department.

After acting in the position from September 2010, I was honoured to be appointed secretary in June 2011.

Other notable changes in our senior executive leadership included the welcome arrival of two new deputy secretaries – Kimberley Dripps, who joined the department from the Victorian Government in January, and David Parker, who transferred from Treasury in February.



Department overview

The structure of the Portfolio changed through the Administrative Arrangements Order announced by the Prime Minister and approved by the Governor-General on 14 September 2010 and 14 October 2010. Machinery of Government changes resulted in new responsibilities in relation to sustainability, population and communities and the transfer of the Arts and Culture component of the Portfolio to the Department of the Prime Minister and Cabinet. Other changes included:



  • the change of the Portfolio name and department name from the Department of Environment, Water, Heritage and the Arts to the Department of Sustainability, Environment, Water, Population and Communities

  • the transfer of housing supply and affordability policy matters from the Department of Families, Housing, Community Services and Indigenous Affairs to the department

  • the transfer of sustainable population matters from the Department of the Treasury to the department

  • the appointment of the Minister for Sustainability, Environment, Water, Population and Communities, the Honourable Tony Burke MP, and the Parliamentary Secretary for Sustainability and Urban Water, Senator the Honourable Don Farrell.

Mission

The department’s mission has broadened from:



  • Protecting and enhancing Australia’s environment, heritage and culture

to:

  • Advancing a sustainable Australia: our environment, water, heritage and communities.

In 2010–11 the department supported the minister and parliamentary secretary in their policy and statutory functions. The department, minister and parliamentary secretary developed and implemented national policy, programs and legislation to protect and conserve Australia’s environment, water and heritage, and to advance Australia’s activities in the Antarctic.

In addition the department provided advice on sustainability matters, consistent with the expanded portfolio responsibilities. These sustainability matters include a number of important challenges that directly affect households, communities, businesses, industries and the natural environment, including:



  • helping to protect Australia’s unique biodiversity

  • improving how water resources are managed, particularly in the Murray-Darling Basin

  • adapting to the impacts and challenges of climate change

  • contributing to Closing the Gap on Indigenous disadvantage

  • developing a national sustainable population strategy

  • contributing to affordable housing access.

Senior Executive team

Dr Paul Grimes was appointed acting secretary when Ms Robyn Kruk took extended leave from 23 August 2010. Dr Grimes was appointed secretary following Ms Kruk’s resignation on 19 June 2011.

Dr Grimes was assisted in the management of the department by an executive team of four deputy secretaries and 18 division heads. The names, responsibilities and tenures of the division heads are shown in the organisation chart (pages 15-18).

Paul Grimes, Secretary

Paul Grimes joined the department from the Department of the Prime Minister and Cabinet, where he had been Associate Secretary (Domestic Policy). Before this, Dr Grimes was General Manager of the Budget Group in the Department of Finance and Deregulation. Dr Grimes has also served as the Chief Executive of the ACT Department of Treasury and, earlier, as Deputy Under Treasurer in the South Australian Department of Treasury and Finance.



Mark Tucker

Mark Tucker is the deputy secretary responsible for the Biodiversity and Antarctic Outcomes and Information Management Division. Mr Tucker has had responsibility for a wide range of public policy issues particularly in the environment, natural resource management, arts, heritage and Indigenous conservation fields. Mr Tucker has also overseen a business improvement agenda for the department to improve governance, risk management and program delivery. He has been a member of the department’s audit committee for a number of years. Mr Tucker has previously worked in the departments of Prime Minister and Cabinet, Primary Industries and Energy, and Communications, Information Technology and the Arts. Mr Tucker completed his Bachelor of Science majoring in Zoology and an Honours degree based on a thesis covering Antarctic marine systems.



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