Preliminaries

Letter from the secretary to the minister

The Hon. Tony Burke MP
Minister for Agriculture, Fisheries and Forestry
Parliament House
Canberra ACT 2600

Dear Minister

I am pleased to present the annual report of the Australian Government Department of Agriculture, Fisheries and Forestry for the year ended 30 June 2008.

The report has been prepared in accordance with the Requirements for annual reports approved by the Joint Committee of the Public Accountants and Audit, as required by section 63 of the Public Service Act 1999 (the Act).

The report notes significant progress during the year to achieve the portfolio’s planned outcome ‘More sustainable, competitive, and profitable Australian agriculture, food, fisheries and forestry industries’ and foreshadows activities for 2008–09

I am satisfied that the department has prepared fraud rise assessments and fraud control plans, and has in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the department’s needs and comply with the Australian Government Fraud Control Guidelines.

Subsection 63(1) of the Act requires you to lay a copy of the report before each House of the Parliament on or before 31 October 2008.

Yours sincerely

[signed]

Conall O’Connell
Secretary
26 September 2008

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Guide to the report

Structure

This annual report of the Australian Government Department of Agriculture, Fisheries and Forestry begins with the secretary’s review of activities and results in 2007–08 and outlook for 2008–09, followed by an overview of our portfolio and the department’s responsibilities, organisational structure and financial and human resources.

The report on performance for 2007–08, which examines our work during the year, is structured around the department’s eight output groups and Biosecurity Australia. For each area, the report highlights key achievements and measures performance against the performance indicators listed in the 2007–08 Portfolio Budget Statements.

The management and accountability section examines our policies and performance in corporate governance, human resource management, customer service, and social justice and equity. The section also details internal and external scrutiny of our operations, and gives a summary of financial performance, purchasing, use of consultants, tendering, contracting, and purchaser–provider arrangements with other Australian Government entities.

Seven appendixes provide required information on such things as grants, occupational health and safety, freedom of information and the Commonwealth Disability Strategy. The department’s and Biosecurity Australia’s financial statements for 2007–08 follow the appendixes.
To help you find specific information, the report includes a table of contents, a list of acronyms and abbreviations, a glossary, an alphabetical index and a compliance index of information required by law.

Figures in the body of this report are rounded to one or two decimal places. Apparent errors in addition are due to rounding.

Availability

You can obtain copies of this report and a number of other publications about our activities, functions and services from:

Information Officer
Department of Agriculture,
Fisheries and Forestry
GPO Box 858
Canberra ACT 2601
Phone: 02 6272 5120
Email: p.r@daff.gov.au

Feedback

We encourage comment on this report’s usefulness and content to help us produce better reports in the future. To provide feedback, please:

Email: annual-report.contact@daff.gov.au
Phone: 02 6272 5807
Fax: 02 6272 5372
or contact the Information Officer
as listed above.

Correction of errors in 2006–07 annual report

Thirteen freedom of information requests were under internal review and undecided at 30 June 2007, not seven (as reported in Table 51, page 278, of the 2006–07 annual report).

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At a glance

Who we are

The Australian Government Department of Agriculture, Fisheries and Forestry

Our portfolio outcome

More sustainable, competitive and profitable Australian agriculture,
food, fisheries and forestry industries

Our departmental outcome

Australian agricultural, fisheries, food and forestry industries that are based on the sustainable management of and access to natural resources, are more competitive, self-reliant and innovative, have increased access to markets, are protected from diseases and are underpinned by scientific advice and economic research

Our work

Equine influenza

After the August 2007 equine influenza outbreak, we responded promptly to coordinate the rapid eradication of the disease. For full coverage of the response to the outbreak, see pages 7, 120, 131 and 144.

Drought

Australia’s worst drought on record continued in many parts of the country. Since 2001, the Australian Government has provided about $2.6 billion to farmers in drought assistance. As well as managing drought assistance programs, we have been working on a comprehensive review of Australia’s drought policy. For more information on the assistance packages and the policy review, see pages 56–58.

Climate change

Climate change presents increasing challenges for Australia’s farmers, foresters and fishers. For information on our climate change research and contribution to whole-of-government policy initiatives, see pages 4 and 5. We have also geared up to administer the Australia’s Farming Future, a new four-year, $130 million program to help primary producers adapt to climate change.

Export opportunities

In 2007–08 we continued our work to gain, maintain and improve opportunities for Australian exports. Our efforts in bilateral and multilateral trade forums are summarised on pages 99–102.

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Secretary’s review

The 2007–08 financial year was one of transition and change for the department’s staff. The new Australian Government took office, with new policies, programs and emphases. The nation’s agriculture, fishing and forestry industries faced challenges ranging from continued drought and water shortages to emergency animal disease outbreaks.

Our people responded with initiative, imagination and integrity. I congratulate all of them on their efforts.

Supporting farmers through drought

Australia’s worst drought on record continued in many parts of the country through 2007–08. Since 2001, the Australian Government has provided about $2.6 billion to farmers in drought assistance, most notably through Exceptional Circumstances (EC) programs in the form of income support and interest rate subsidies. The government has made a commitment of up to $760.9 million to continue EC support during 2008–09.

Governments at all levels in Australia have recognised that we have entered a critical period for the planet’s climate. On 23 April 2008, the Minister for Agriculture, Fisheries and Forestry, Tony Burke MP, announced a comprehensive national review to improve Australia’s drought policy. The review includes separate investigations of the economic and social aspects of drought and drought support, and a climatic assessment by the Bureau of Meteorology and the CSIRO. It will draw on earlier studies by the Australian Bureau of Agricultural and Resource Economics (ABARE) and the Bureau of Rural Sciences (BRS). The outcomes of the review will position the government to assist Australian farmers to cope with droughts in a changing climate.

In 2007–08, we kept our focus on supporting rural families and their farming businesses through drought and change. More than 23,000 families accessed EC income support during the year, and more than 20,000 applications for EC interest rate subsidies were approved.

The new EC Exit Grant, introduced in September 2007, now provides a way for farmers in EC-declared areas who wish to make a change to leave the industry with dignity. By the end of the financial year, 32 exit grants had been paid.

The Transitional Income Support Program, which began in June 2008, will help farming families who are recovering from drought and in serious financial difficulty to adapt to changing circumstances, including climate change. By the end of June, 44 applications for support had been received.

We continued to implement measures to help the agricultural industry, including irrigators, respond to the drought, likely reduced water availability due to climate change, and the national water reform agenda.

During the year, the government provided more than 7800 grants of up to $20,000 to irrigators in the Murray–Darling Basin for improvements in water efficiency, and just over $144.8 million has been spent. Another $7.5 million supported more than 3,700 farmers, growers and service providers in the basin to manage low water allocations.

The department did economic and biophysical work to support sound water policy development. A survey by ABARE provided a deeper understanding of the economic characteristics of irrigators, analysed the effects of water trading in the Murray–Darling Basin, and gauged the impacts of reduced water availability. BRS completed aerial electromagnetic surveys of salinity and groundwaters in the central River Murray Corridor, bringing to light new knowledge about the location and quantities of groundwater, salt, and the interactions between surface activities and groundwater.

Supporting exporters

During 2007–08, the department advised on and implemented the Australian Government’s reforms to wheat marketing arrangements. The new system increases competition in the export marketing of bulk wheat by allowing more marketers to participate in the sector. A new statutory body, Wheat Exports Australia, was established to formulate and administer a new wheat export accreditation scheme and to monitor and enforce wheat export arrangements to protect the interests of growers and other industry participants.

The government expects the deregulation of Australia’s wheat marketing arrangements to result in more choice and competition, driving down costs in the sale and logistics chains.

We continued to work towards a successful World Trade Organization (WTO) Doha Round outcome during the year. Our officers participated in negotiating sessions in Geneva to advance portfolio interests.

To complement the efforts to complete multilateral agreements, we continued work on bilateral agreements, including existing free trade agreements (FTAs) with New Zealand, Singapore, Thailand and the United States, and negotiations for new FTAs with China, Chile, Japan, the United Arab Emirates, Malaysia and the Association of South-East Asian Nations.

In our work to gain, maintain and improve market access for Australian exports, our achievements have included:

• maintaining access to Thailand for grain exports worth $200 million, after changes to Thailand’s plant quarantine regulations
• maintaining the $1.2 billion United States market for Australian beef, after new testing requirements were introduced
• reopening the trade in live animals to Libya and Egypt
• gaining new or improved conditions for trade in various fruits to Canada, Taiwan, Japan, Malaysia and the United States, providing millions of dollars in export opportunities for the horticultural sector.

Our scientific and technical officers have been working with legal counterparts in the Department of Foreign Affairs and Trade and the Attorney-General’s Department on a challenge in the WTO by New Zealand against Australia’s quarantine measures for New Zealand apples. A WTO panel is expected to make a finding on this dispute in the second half of 2009.

Eradicating equine influenza

Following the August 2007 outbreak of equine influenza, the department responded promptly to coordinate the rapid eradication of the disease by the end of June 2008. Our national emergency animal disease systems ensured that the response was timely, well structured, well resourced and comprehensive, with full industry involvement.

The Australian Chief Veterinary Officer chaired the Consultative Committee on Emergency Animal Diseases, which was charged with technical management of the eradication effort. The consultative committee reported to the National Management Group, chaired by me, which had overall responsibility for the response. These committees included representatives from all states and territories and various industry sectors.

On the ground, our officers:

• provided crucial technical input into contingency plans, vaccination regimes, movement controls and, most importantly, the establishment of the regime to prove that Australia had regained its freedom from the disease
• organised quarantine clearance and emergency registration of the vaccine used in the eradication effort
• provided updates to the media and gave national and international stakeholders situation reports on the progress of eradication
• coordinated resource allocation to affected states and territories
• aided businesses in the horse industries by developing policies for the distribution of financial assistance.

The department worked closely with the horse industry during the outbreak and provided over $260 million in assistance through the Equine Influenza Emergency Assistance Package to individuals and businesses that derived most of their income from horse-dependent activities.

The assistance package was initially to run for 12 weeks. However, because of the impact the outbreak had on families and businesses, some avenues of assistance continued until mid-March 2008.

Two important reviews followed the equine influenza outbreak.

In April 2008, the Equine Influenza Commission of Inquiry, headed by the Hon. Ian Callinan AC, reported to government on the outbreak. The Callinan Report made 38 recommendations for improvements to Australia’s quarantine system relating to horse importation, all of which the government has accepted. The department took immediate steps to implement the recommendations.

In February 2008, the government announced the appointment of Roger Beale AO to convene a panel including Dr Jeff Fairbrother AM, Andrew Inglis AM and David Trebeck to conduct a broad-ranging Quarantine and Biosecurity Review and report to government by the end of September 2008.

Restructuring portfolio bodies

Changes to some portfolio bodies in 2007–08 responded to Uhrig Review recommendations and new Australian Government policy:

• The Australian Pesticides and Veterinary Medicines Authority now has an executive management structure.
• Forest and Wood Products Australia Limited replaced the Forest and Wood Products Research and Development Corporation.
• The Australian Fisheries Management Authority became a commission and prescribed agency under the Financial Management and Accountability Act 1997.
• Wheat Exports Australia, which took over from the Export Wheat Commission (which had earlier replaced the Wheat Export Authority), was created to develop and administer an accreditation scheme for bulk wheat exporters.

Listening to our people

In July–August 2007, we conducted a whole-of-department employee survey, to which 2997 employees responded. Based on the survey results, we began work on a suite of initiatives to improve employee attraction, retention, rewards and recognition. For example, we introduced a 40-day limit on all departmental recruitment processes to reduce excessive delays. Both the employee survey and the State of the service report 2006–07 had highlighted this problem.

In July 2008, I was proud to launch our new Disability Strategy 2008–2010, which outlines how we will increase employment opportunities and accessibility for people with disability, boost staff awareness of disability, and ensure that we consult people with disability when developing policies and programs that might affect them. The strategy has cultural, training, mentoring and management components based on the Management Advisory Committee report, Employment of people with disability in the APS. Phillip Glyde is the department’s ‘disability champion’.

Our tasks in 2008–09

The Australian Government has announced that it intends to implement the Carbon Pollution Reduction Scheme in 2010, as the primary vehicle to reduce Australia’s greenhouse gas emissions. We were fully engaged with the Department of Climate Change in developing the government’s Green Paper, and we continue to have an important role in liaising with our industry stakeholders. The scheme will not include agriculture until 2015 at the earliest, but it has the potential to affect portfolio industries from the outset. In 2013, the government will announce a final decision on the inclusion of agriculture.

Managing new initiatives

We will administer Australia’s Farming Future, a new four-year, $130 million package to help primary producers reduce their greenhouse gas emissions and adapt and respond to the impacts of climate change. The department will support research and development projects (through the $46.2 million Climate Change Research Program), communication and awareness activities, training (through the $26.5 million FarmReady program), community networks and capacity building, and advice and assistance for farmers choosing to leave the industry (through the Climate Change Adjustment Program).

The Regional Food Producers Innovation and Productivity Program—a new four-year, $35 million initiative—will aim to improve the productivity and profitability of the regional food industry by funding new technologies and production and processing methods. Funding will be through competitive, matched-funding grants.

Promoting Australian Produce, a new $5 million initiative, will help industries develop their capability to market clean, green Australian produce to established and new domestic and export markets.

The Australian Government’s five-year, $2.25 billion Caring for our Country initiative began in July 2008. The initiative rolls a number of existing natural resource management (NRM) measures into a consolidated funding and administrative package, including the Natural Heritage Trust, the National Landcare Program and the Environmental Stewardship Program.

Caring for our Country applies the lessons we have learned over nearly a decade to remove barriers to sustainability, reduce red tape, and rationally prioritise hundreds of community NRM initiatives across Australia. Regional NRM groups will have a guaranteed $636 million in forward funding, but will compete for additional funding.

Winding up earlier programs

The Agriculture Advancing Australia (AAA) package ended on 30 June 2008, and we will finalise funding commitments under its Farm Help, FarmBis and Advancing Agricultural Industries components during 2008–09. Other elements of the package (the Rural Financial Counselling Service Program, the International Agricultural Cooperation Program and the Farm Management Deposits Scheme) will continue independently of the AAA package.

The four-year, $44.4 million Defeating the Weed Menace Program also ended with the 2007–08 financial year, after achieving the adoption of the Australian Weeds Strategy, funding around 200 projects, developing many best practice manuals for weed control and promoting nursery industry efforts to reduce sales of weedy plants. Weed management objectives will continue to be pursued through the new Australian Weeds Research Centre, an election commitment of the government.

Other major initiatives (the Securing our Fishing Future package, the Sugar Industry Reform Program 2004, and the development of the National Biotechnology Strategy) are essentially complete, but will require finalisation during 2008–09.

Developing our people

To better support staff and increase our capacity to meet future challenges, we introduced the DAFF Capability Framework in 2007–08. The framework is based on the Integrated Leadership System developed by the Australian Public Service Commission.

In 2008–09, it will guide our learning and development strategies, and particularly our recruitment and selection, workforce planning and performance management. This will help us build the skills and capabilities we need to meet future policy and program challenges for our stakeholders.

The department will continue to recognise and support high-performing staff at all levels of the organisation. Fourteen employees received 2007–08 Development Awards, and 15 received 2008–09 awards, giving them professional and personal development opportunities that will benefit both them and the department in the long term. The 2008 Australia Day Achievement Awards recognised 12 teams and four individuals for their outstanding contributions to our work. I look forward to presenting further awards to outstanding staff in the coming year.

[signed]

Conall O’Connell
Secretary

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Portfolio overview

At 30 June 2008, the agriculture, fisheries and forestry portfolio comprised:

• the Australian Government Department of Agriculture, Fisheries and Forestry (the department), which includes
• • the Agricultural Productivity Division
  • the Australian Bureau of Agricultural and Resource Economics
  • the Australian Quarantine and Inspection Service
  • the Bureau of Rural Sciences
  • the Climate Change Division
  • the Corporate Policy Division
  • the Management Services Division
  • the Product Integrity, Animal and Plant Health Division
  • the Sustainable Resource Management Division
  • the Trade and Market Access Division

• four prescribed agencies under the Financial Management and Accountability Act 1997
  • Biosecurity Australia
  • the Dairy Adjustment Authority
  • the Australian Pesticides and Veterinary Medicines Authority
  • the Export Wheat Commission

• nine bodies under the Commonwealth Authorities and Companies Act 1997
  • one statutory marketing authority—the Australian Wine and Brandy Corporation
  • one regulatory authority—the Australian Fisheries Management Authority
  • seven research and development corporations.

Figure 1 shows the portfolio structure at 30 June 2008.

Portfolio outcome

The department and the various agencies share one planned portfolio outcome:
More sustainable, competitive and profitable Australian agriculture, food, fisheries and forestry industries.

Biosecurity Australia has its own planned outcome:
To provide science based quarantine assessments and policy advice that protects Australia’s favourable pest and disease status and enhances Australia’s access to international animal and plant related markets.

Each portfolio agency has one or more planned outcomes and outputs that contribute to the overall achievement of the portfolio outcome.

Reporting

This annual report concerns the department and Biosecurity Australia. The other prescribed agencies, statutory marketing and regulatory authorities and research and development corporations publish their own annual reports.

The National Residue Survey, a residue monitoring program operating within the Product Integrity, Animal and Plant Health Division, tables its annual report in parliament each year in accordance with section 10 of the National Residue Survey Administration Act 1992.

Responsible minister

The Minister for Agriculture, Fisheries and Forestry oversees the portfolio.

Until the change of government in December 2007, the minister was the Hon. Peter McGauran MP. He was assisted by Senator the Hon. Eric Abetz (the Minister for Fisheries, Forestry and Conservation) and the Hon. Sussan Ley MP (the Parliamentary Secretary to the Minister for Agriculture, Fisheries and Forestry).

Since 3 December 2007, the Hon. Tony Burke MP has been the Minister for Agriculture, Fisheries and Forestry. Mr Burke has no assisting minister or parliamentary secretary.

Much of the department’s work is delivered through the Primary Industries Ministerial Council and the Natural Resource Management Ministerial Council. The ministerial councils were established in 2001 by agreement between the Australian Government and state and territory governments, and have many subcommittees and working groups. Figure 2 shows the structure of the councils at 30 June 2008.

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Departmental overview

Our mission

The department’s mission is:

Increasing the profitability, competitiveness and sustainability of Australian agricultural, fisheries, food and forestry industries and enhancing the natural resource base to achieve greater national wealth and stronger rural and regional communities.

Our planned outcome

Our departmental outcome is:

Australian agricultural, fisheries, food and forestry industries that are based on sustainable management of and access to natural resources, are more competitive, self-reliant and innovative, have increased access to markets, are protected from diseases and are underpinned by scientific advice and economic research.

Our role and functions

To fulfil our mission, we are involved in activities throughout the supply chain from producer to consumer.

Our work:

• helps Australian agricultural, food, fisheries and forestry industries be more competitive, profitable and sustainable
• protects and develops the natural resource base on which these industries rely
• addresses Australia’s entire supply chain, from producer to processor to consumer
• upholds the quarantine, export inspection and certification and food safety standards that are essential for maintaining Australia’s highly favourable animal and plant health status
• creates and maintains export opportunities for Australian agriculture and food industries
• delivers scientific advice, economic research, policy advice, programs and services to help deal with the challenges faced by the industries.

Our stakeholders include:

• rural communities
• producers, processors and consumers of agriculture, fisheries, forestry and food processing products
• natural resource managers
• importers and exporters
• non-government interest groups
• research and development consumers
• travellers
• Australian, state, territory and local government organisations.

Our organisational structure

The organisational structure of the department changed during the reporting period.

Until 16 June 2008, the department comprised eight divisions, two bureaus (the Bureau of Rural Sciences and the Australian Bureau of Agricultural and Resource Economics), the Australian Quarantine and Inspection Service and Biosecurity Australia (see Figure 3). To improve the portfolio’s approach to the government’s priorities, particularly to meet the challenges of climate change and improve productivity, a significant reorganisation of the department’s structure was necessary.

From 16 June 2008, natural resource programs have been more closely integrated with the divisions responsible for the policies and programs supporting Australia’s rural industries. The portfolio’s response to climate change is now focused through the new Climate Change Division, which also incorporates those parts of the department with responsibilities for drought policy, rural adjustment and forestry (see Figure 4).

Accompanying the changes is a new emphasis on cross-portfolio and strategic policy work, supported by the new Policy Development (Economic and Cross-portfolio) Branch in the Corporate Policy Division.

These broad structural changes will enable us to focus our resources and skills in the areas that are critical to the future of Australia’s rural industries.

Outcome and output group structure

In 2007–08, the department’s divisions, two bureaus and the Australian Quarantine and Inspection Service worked together and individually to deliver eight outputs:

_{Two divisions not listed below (Management Services Division and Corporate Policy Division) provide support across the department.}

In 2008–09, the department’s divisions, the two bureaus and the Australian Quarantine and Inspection Service will produce five outputs:

Biosecurity Australia, as a prescribed agency within the portfolio, delivers one output based on its planned outcome:

Provide science based quarantine assessments and policy advice.

Corporate Policy Division

Our Corporate Policy Division supports individual divisions and the department as a whole. The division’s work in 2007–08 included parliamentary and ministerial liaison services; corporate communications; cross-divisional, whole-of-portfolio and whole-of-government policy advice; and the administration of governance, security, risk management, planning and reporting activities. The division led and coordinated continuous improvement strategies for many of our processes. From 16 June 2008, the department’s governance, security, risk management, planning and reporting functions were moved to the Management Services Division.

Activities in 2007–08

The division’s Policy Development Branch managed the introduction of new quarantine regulations on 5 September 2007, providing the legal foundation for reforms to the import risk analysis (IRA) process.

Over the course of the year, the division provided the necessary support to ensure a smooth transition to the new arrangements, including by providing secretariat services to the Eminent Scientists Group and the Import Market Access Advisory Group.

The Policy Development Branch also played an important role in the transition to the new government, coordinating the portfolio’s incoming government brief as well as much of the early interaction between the department and the new minister and his office.

The branch continued to play an important coordination role across the portfolio, leading the department’s policy work on issues such as labour and skill shortages and following up on the ideas raised at the 2020 Summit. A key role for the branch was providing the secretariat to the Primary Industries and Natural Resource Management ministerial councils and their standing committees. Working with the Chairs and members, the secretariat sets the agendas, collates and distributes papers, and records resolutions and action items. The secretariat organised Minister Burke’s inaugural Primary Industries Ministerial Forum, which was held with his state and territory counterparts in Cairns in February 2008. The forum established the strategic agenda for the Primary Industries Ministerial Council for the year ahead. The branch also provided the secretariat to the National Management Group during the equine influenza outbreak.

The branch was responsible for managing many of the ministerial appointments to the boards of portfolio bodies, such as the research and development corporations, including through support to the selection committees.

The Governance and Planning Branch helped us demonstrate our compliance with whole-of-government planning and operational requirements by coordinating departmental corporate documents, such as our 2007–10 Corporate Plan, our 2006–07 annual report, business and risk management plans and six-monthly performance reviews. The division contributed to our departmental outcomes by providing quality governance, services and advice to departmental clients, other agencies, the department’s Executive Management Team, the previous and incumbent portfolio ministers and the previous parliamentary secretary (and their offices).

The Business Ethics, Security and Investigations Unit and the Internal Audit Unit provided independent scrutiny of internal practices and processes, and policy advice relevant to their respective charters, as part of the department’s governance framework.

The Equine Influenza Inquiry Taskforce was established within the division in 2007 to manage the department’s interaction with the inquiry by Commissioner Callinan into the August 2007 outbreak of equine influenza in Australia. The taskforce liaised with the department’s lawyers and departmental witnesses throughout the inquiry and managed the production of documents and information to the inquiry.

The division also provided administrative and secretariat support for the independent review of Australia’s quarantine and biosecurity arrangements, which was announced by the minister on 19 February 2008.

A key task for the Parliamentary and Media Branch was establishing the portfolio offices of the new minister and the offices’ administrative and communications procedures. The branch also supported the department during the caretaker period and provided a single contact point for guidance from the Department of the Prime Minister and Cabinet on the caretaker conventions. Other important tasks included reviewing and improving the quality and timeliness of responses to questions on notice, question time briefs, ministerial speeches, and ministerial correspondence and briefings, and aligning them to the new minister’s requirements.

Outlook for 2008–09

The June 2008 restructure of the department recognised the increasing importance to the portfolio of a broad range of cross-cutting and whole-of-government initiatives and issues, including labour and skills. In 2008–09, the Corporate Policy Division will operate with two policy development branches—one dealing with economic and cross-portfolio issues, and the other providing strategy and support.

The division will continue to provide policy advice and support in the delivery of secretariat functions, ministerial appointments, parliamentary services, communications and public relations. Across the portfolio, it will coordinate work to increase the leadership and representative capacity of target groups such as women, youth, Indigenous Australians and people from culturally and linguistically diverse backgrounds in primary industries.

The division will also continue to manage our portfolio interests in whole-of-government initiatives managed by other portfolios, including those dealing with labour and skills shortages, fuel policy (including biofuels), regulation review, transport, and responding to ideas raised at the 2020 Summit.

An important priority for the division will be contributing to the portfolio’s response to the recommendations of the independent Quarantine and Biosecurity Review. It will also help to coordinate and lead the department’s work on new and emerging cross-cutting portfolio issues.

Management Services Division

The Management Services Division contributes to the department’s planned outcome by providing high-quality, timely and cost-effective corporate services to the divisions, their staff and stakeholders. These services underpin our overall operational efficiency and effectiveness. They include building and improving organisational systems and policies, supporting the secretary and the Executive in managing change, and providing expert advice to senior staff, the minister and his office.

Corporate services include financial, people and information management; administrative and office systems; information and communications technology (ICT); outsourced services contracts management; and the collection and distribution of industry levies through the Levies, Contracts and Services Branch. These services are delivered through a mix of internal and external service provider arrangements. We have outsourced corporate legal, ICT, fleet management, travel and property services.

From 16 June 2008, the Management Services Division assumed responsibility for the department’s governance, security, risk management, planning and reporting functions, which were transferred from the Corporate Policy Division.

Activities in 2007–08

Our highest priority in 2007–08 was completing the construction and fit-out of our new Canberra accommodation, and moving personnel and equipment from the former premises. Managed by a small project group, the move required extensive effort from all staff. The building fit-out was completed on schedule and within budget, and staff began to occupy the new buildings in early November 2007. Virtually all milestones and deadlines set for the move and the clean-out and make-good of our former premises, and the terms of our lease agreements, were met.

To reduce the costs of moving desktop and printing equipment, we completely refreshed our personal computing inventory at the same time. Computer disaster recovery and off-site backup facilities were incorporated into the design of our third building (in Fyshwick, ACT) to ensure that the department’s critical functions can be maintained in emergencies.

In July 2007, we began a project to seek prospective suppliers of ICT services beyond June 2009. The services have been provided first by Volante and then by Commander for the past eight years. We released a request for tender to the market in June 2008, and will evaluate the responses in 2008–09. Our aim is a seamless transition of service provision for our staff and clients throughout Australia, and services that can take advantage of likely developments in technology and software.

Our Corporate Systems team completed a number of system upgrades and new system implementations during the year, including work on our systems for grants management, file management and correspondence tracking. The Aurion systems team, in our Human Resources Branch, implemented Timekeeper (a major new module in our human resources management system). The module will electronically record attendance and overtime by all shiftworkers (excluding meat inspectors), reducing administrative overheads and the risk of fraud. The implementation of the Timekeeper module is progressing well (more than 40% of shiftwork staff were using it by 30 June 2008). We plan to have full coverage by December 2008.

We have also developed a system to identify staff training needs and encapsulate learning and development plans in Aurion. This will help us develop employees’ core capabilities and reduce training costs for common training needs across the department. The system was tested in May 2008 with positive results, and a pilot began in June 2008.

The infrastructure of our new buildings incorporates current generation voice and information display systems, including a telecommunications system based on Voice over Internet Protocol (VOIP) architecture. Although the VOIP system is operational, we are still working to overcome some unsatisfactory aspects of the system’s software and functions. This work will continue into 2008–09.

We completed the establishment of an offsite storage facility for our extensive paper-based records, and continued our Business Classification Scheme and Records Disposal Project to develop a departmental business classification scheme to allow us to classify, retrieve and manage records more efficiently. This work will continue in 2008–09.

Attracting and retaining staff are critical to the department’s operations. Work by our human resources staff during the year included:

• continuing review of our performance management systems
• development of our learning and development strategy, which will ensure that our activities maintain a workforce with the skills we need
• continuation of the DAFF Management Program, which gives potential managers a development pathway
• targeted recruitment (57 graduates and 18 trainees began work with us in January 2008)
• our University Vacation Employment Program, which attracted 16 university students to work with us from December 2007 to February 2008
• development of a cadetship program within the Corporate Finance Branch.

Our work in recruitment was publicly recognised when one of our staff won the 2007 Australian Graduate Recruitment Industry Award for Graduate Recruiter of the Year in November 2007 (see ‘Management of human resources’).

Skills development and learning opportunities included training in exchanging constructive feedback (232 employees have completed the training) and Indigenous cultural awareness workshops (113 employees). Fifteen staff were granted development awards through a competitive process.

Our major annual activities in financial management are the timely delivery of the annual budget, the Financial Management and Accountability Act 1997 Certificate of Compliance and the financial statements. Other activities in 2007–08 included tendering for a new transactional banker with the Reserve Bank being the successful tenderer; automating production of the department’s administered financial statements and managing asset records for transfers, acquisitions and disposals relating to the department’s move to our new Canberra accommodation.

The DAFF Disability Strategy 2008–2010 has been completed. The SES disability ‘champion’ has been appointed, and the strategy was launched by the secretary in July 2008.

2007–08 was the first full year of operations of the division’s new Levies, Contracts and Services Branch. The work of the new branch, which consolidates previously disparate functions, produced efficiencies and savings in the department’s travel operations through:

• introducing online bookings using our travel provider’s reservations system (80% of air travel is now booked online)
• obtaining the ‘best fare of the day’ for travel
• achieving the government’s target of 25% minimum usage of smaller airlines for official air travel on the Canberra–Sydney route
• implementing a preferred hotel program.

To reduce risks involving material contracts, the branch has introduced mandatory protocols to ensure legal sign-off of requests for tender and contracts, to appoint a probity adviser and to obtain delegates’ approval throughout the procurement process.

Levy revenue collected during the year totalled $595 million (2006–07: $609 million), which was 5% higher than the revised budget estimates. Regional staff conducted 1842 levy records inspections and 40 120 account interventions, and collected an additional $3.9 million as a result (2006–07: 1690 inspections, 37 207 interventions, $4.3 million). They also identified 1086 new or potential levy payers (2006–07: 1758). A pilot to collect levies online was successful, and a rollout strategy began in July 2008.

See the relevant sections of this report for more detailed information on financial and people management, our use of contractors, occupational health and safety, and workplace industrial agreements.

Outlook for 2008–09

In 2008–09, the Management Services Division expects to focus on human resources administration and strategies to strengthen staff recruitment and retention. This work will include:

• trialling an integrated system to include staff development and training alongside staff and employer expectations from performance management
• improving the performance management process and the work plans of staff to relate their achievements and skills development to our capability framework
• improving the quality and analysis of human resources information and reporting to assist managers
• streamlining recruitment to reduce delays, to market the department more effectively, and to reduce effort by candidates and the department.

The department’s current collective agreement runs to 30 June 2009, and we will work to develop a replacement agreement to commence in 2009–10. Early in 2008–09, we will review remuneration and options to ensure that we maintain a competitive salary and conditions package, and develop an engagement strategy. We expect to begin negotiations on salary and conditions, and the productivity gains needed to offset their cost, early in the new financial year.

Work on our ICT systems and associated operations in 2008–09 will include:

• completing the Timekeeper module rollout for shiftworkers
• resolving problems with our VOIP telecommunications system, finalising the implementation of the VOIP Central Office, and migrating mobile voice services to a new provider
• finalising the Business Classification Scheme by September 2008, integrating it with our file management system, and having it operational by June 2009
• gaining National Archives of Australia approval of our records disposal system and having it operational by June 2009
• evaluating tenders for ICT services, determining the best form for ICT service delivery (outsourced, in-house or hybrid), and transitioning the department to the chosen delivery model and successful suppliers
• implementing an ICT facilities management system (covering the department’s computing environment, data centre and disaster recovery site) to provide information on the status of all ICT projects to the Chief Information Officer and others.

Since the restructure of the department in June 2008, the Governance and Planning Branch has been placed in the Management Services Division. The branch will continue to report directly to the department’s executive and secretary on particular activities, such as internal audit. The branch expects an increase in workload in 2008–09 arising from freedom of information requests and claims under various compensation schemes, and from playing a more interventionist role in risk, grants and project management.

Financial resources

The department

In 2007–08, the department received $370.63 million in appropriation revenue from the Australian Government to contribute to the costs of delivering our outputs (2006–07: $350.63 million). We obtained a further $276.67 million in revenue (2006–07: $269.43 million) from external sources, particularly from activities undertaken by AQIS (nearly $200 million), with the balance largely from other services provided by the department.

In addition to our departmental appropriation, we administered $3135.07 million (2006–07: $2217.73 million) for programs delivered on behalf of the Australian Government. Of this, $594.90 million was collected as industry levies or other charges (2006–07: $608.85 million). The increase in administered funding in 2007–08 resulted from new and expanded drought assistance and new equine influenza assistance measures announced by government. The administered programs, which are aligned with our identified outputs, contributed significantly to the achievement of our planned outcome.

Biosecurity Australia

In 2007–08, Biosecurity Australia received $21.12 million in appropriation revenue from the Australian Government to contribute to the costs of delivering its output (2006–07: $18.57 million). The agency obtained a further $0.04 million in revenue from external sources (2006–07: $0.46 million).

Staffing

The department’s employment profile was steady in 2007–08.

We employed 4526 full-time equivalent staff in Australia and overseas. Our people include policy officers, program administrators, scientists, economists, meat inspectors, veterinary officers and quarantine inspectors.

More than half of our Australian-based staff work outside Canberra, at more than 250 sites from Tasmania to the Torres Strait. They operate in capital city and regional offices, major airports, mailing centres, ports, laboratories and abattoirs.

Our people in Brussels, Paris, Rome, Tokyo, Washington, Seoul, Beijing, Dubai, Bangkok, Jakarta and New Delhi maintain relationships with key trading partners and with international organisations, such as the World Trade Organization, the Food and Agriculture Organization of the United Nations and the Organisation for Economic Co-operation and Development. In partnerships with regional neighbours, such as Indonesia, Vietnam and Timor Leste, we contribute to technical capacity building and market access projects.

Appendix 1 of this report details staffing statistics for 2007–08.

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