Report on Performance

Overview of the performance framework

This section provides overviews of our framework for managing departmental performance and staff performance.

Departmental performance

The department has one planned outcome, as published in the 2007–08 Portfolio Budget Statements:
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.

The outcome has eight components, for each of which the Portfolio Budget Statements list effectiveness indicators:

• Sustainable management of resources
• Competitive portfolio industries
• Self-reliant and innovative portfolio industries
• Access to markets
• Managing pest and disease risk
• Scientific advice
• Economic research
• Policy advice.

The following section (‘Overall effectiveness report’) assesses the department’s performance against the overall effectiveness indicators for the outcome components (Table 1), and reports in detail on our delivery of policy advice.

To deliver the outcome in 2007–08, we produced eight outputs (which should not be confused with the eight outcome components). The remaining sections of the ‘Report on performance’ assess our delivery of the outputs, plus the work of Biosecurity Australia. Each of these sections includes:

• a list of priority work areas declared in the 2007–08 Portfolio Budget Statements
• a list of highlights of the work during the year
• charts showing the proportion of staff, administered funding and departmental funding contributing to the output
• a narrative report on each priority work area
• an outlook for 2008–09
• a table showing performance measures for the output, as specified in the 2007–08 Portfolio Budget Statements, and performance against those measures.

Where administered items contribute to an output, the report includes a table showing, for each item:

• the item’s actual value in 2007–08 (which may differ from the planned value in the 2007–08 Portfolio Budget Statements)
• the item’s performance measures as specified in the Portfolio Budget Statements, except where they were later adjusted by the government in the Additional Estimates or Supplementary Additional Estimates processes (in which case, the adjusted measures are given)
• an analysis of performance against the measures.

The Management Services and Corporate Policy divisions contribute to departmental performance but not directly to outputs covered in the Portfolio Budget Statements, and so do not report in this section. Details of the work of those divisions in 2007–08 and their outlook for 2008–09 are in the ‘Departmental overview’ section.

Staff performance

The department’s performance management scheme fosters a culture of constructive feedback by being clear about our people’s work goals and the standards we expect, and by linking people management directly to our business goals.

Under the department’s collective agreement, all employees are required to participate in our performance management process. Individual work plans and learning agreements clarify expectations and provide for ongoing feedback and development. Managers and their staff regularly discuss work planning, performance feedback, and skills and knowledge needs. This involves, as a minimum, two formal discussions: mid-cycle (December) and annual cycle (May–June).

In response to results from our 2007 employee survey and the secretary’s staff meetings, we are preparing a review of the department’s performance management process. We will implement changes in the 2008–09 appraisal period.

The ‘Management and accountability’ section of this report gives more detailed information about our management of staff performance.

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Overall effectiveness report

The department’s 2007–08 Portfolio Budget Statements listed eight components of our single outcome, with effectiveness measures for each component. Many of our divisions contribute to more than one component, so our achievements under the eight components reflect our whole-of-department effort during the year. Table 1 specifies the components and measures and summarises our achievements, giving a snapshot of important work during the year.

Table 1
Our outcome, outcome components and overall effectiveness
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
Outcome component: Sustainable management of resources
Effectiveness indicators Increased awareness and understanding of natural resources issues. Adoption of sustainable practices by land/fishery/forestry managers and the general community. Increased opportunities to secure and access resources with certainty and on a sustainable basis.
Responsible output Output 1: Natural Resources Access and Management
Increased awareness and understanding
During 2007–08, the department raised awareness and understanding of natural resource management (NRM) by: supporting 189 community projects through the National Landcare Programsupporting 63 community Landcare coordinator positions generating more than $27 million in cash and in-kind matching contributions from communities and businesses through the Defeating the Weed Menace program, supporting a network of Weeds of National Significance coordinators and the National Weeds Management Facilitator to disseminate information on better weed management techniques and more efficient weed control testing better ways to manage native vegetation through Native Vegetation Regional Pilot Projects under the Natural Heritage Trust completing the sixth Signposts for Australian Agriculture industry profile contributing to the second Environmental Performance Review by the Organisation for Economic Co-operation and Development organising an Agriculture Roundtable to provide industry input into the government’s Carbon Pollution Reduction Scheme Green Paper.
Adoption of sustainable practices
We increased the adoption of sustainable practices by: managing the final year of the National Action Plan for Salinity and Water Quality, the Natural Heritage Trust and the Defeating the Weed Menace program managing projects to promote such sustainable practices as the integration of agricultural production and conservation on farms; increased adoption of controlled-traffic farming systems and riparian management to reduce run-off; sustainable land management in Indigenous communities; healthier estuaries through better management by land-based primary producers; increased ground cover for salinity abatement and erosion control; and sustainable animal waste reuse and recycling on intensive farms managing 29 priority national Landcare projects, including projects to improve stakeholders’ rangeland management skills and knowledge, demonstrate new technologies to better handle dairy effluent, develop information packages on water recycling for pastures and crops, and run workshops to promote the National Water Quality Management Strategy managing 51 Natural Resource Innovation Grants, including grants to increase crop productivity through better pollination practices, promote supply-chain driven environmental performance in the dairy industry, promote remote monitoring of livestock behaviour for sustainable grazing management, demonstrate a contour-based soil management system for more efficient water and nutrient use, and build sustainable farming systems resilient to climate change.
Increased opportunities to secure and access resources
Through the continuing Native Vegetation Regional Pilot Projects initiative, the department increased opportunities to secure and access resources by: working with landholders and the community to develop profitable businesses based on sustainable agricultural methods improving the productive capacity and long-term ecological health of the land through best practice native vegetation management piloting flexible and innovative mechanisms to improve water quality, soil condition and biodiversity.
Outcome component: Competitive portfolio industries
Effectiveness indicators Commercially sustainable industries with improved responsiveness to market conditions as measured by: impediments to growth and competitiveness being reduced or removed feedback from industry, government and community stakeholders industry profitability and level of investment in sector. Portfolio industries are responsive to evolving global markets and the adoption of new and innovative approaches along the value chain as measured by: BRS status reports ABARE statistics and reports commercialisation of new agribusiness products, technologies and services AFMA restructured as a commission. Change, adjustment strategies and programs are developed and implemented effectively as measured by: timely implementation of industry reforms and structural adjustment programs enhanced industry competitiveness. Food safety regulations built on a through chain approach which facilitate industry innovation and competitiveness as measured by: improved food regulatory arrangements that reduce regulatory burden, are consistent, and reflect public health, consumer and industry issues.
Responsible output Output 3: Industry Development
Commercially sustainable industries
In 2007–08, the department helped to build commercially sustainable industries with better responsiveness to market conditions by: completing the seven foundation projects of the Australian Vegetable Industry Development Group helping agribusinesses and food processing businesses in rural and regional Australia add value to food commodities through Food Processing in Regional Australia projects, 71 of which were active during the year assisting the AFMA in initiatives to improve the management of Commonwealth fisheries, in particular addressing overfishing and the recovery of overfished stocks, and implementing the Commonwealth Fisheries Harvest Strategy policy promoting the Australian Grown labelling initiative implementing the National Indigenous Forestry Strategy to increase Indigenous employment and business opportunities in the forest industries.
Portfolio industries responsive to evolving global markets
We fostered market responsiveness and innovation by: contributing to the Productivity Commission’s reviews of regulatory burdens on business gaining Standards Australia’s endorsement of the Australian Forestry Standard, which has been used to certify the management of 8.7 million hectares of native and plantation forest as environmentally sound promoting the Australian Forestry Standard to foreign trade ministers and government procurement officers completing the creation of Forest and Wood Products Australia as the forest industry research and development provider.
Change, adjustment strategies and programs
The department successfully delivered change and adjustment strategies by: providing structural adjustment assistance through the $220 million Securing our Fishing Future package managing the Onshore Business Assistance discretionary grants program under the Securing our Fishing Future structural adjustment package, facilitating industry exit by 33 businesses, and helping 64 businesses develop their enterprises providing assistance to tobacco growers to move into other activities approving $21.6 million for projects under the Tasmanian Community Forest Agreement Hardwood, Softwood and Country Sawmills programs, which supported more than $84.4 million in new investment by the industry managing the replacement of the Wheat Export Authority by the Export Wheat Commission in October 2007 finalising the Dairy Industry Adjustment Package reviewing the Victorian, New South Wales and Western Australian regional forest agreements helping the Torres Strait Regional Authority to implement leasing arrangements in the strait’s finfish fishery to ensure continuity of supply to onshore businesses and to maximise the economic benefit from the fishery taking responsibility for targeted programs (announced in September 2008) to help Murray–Darling Basin irrigators plan for and manage reduced water availability.
Food safety regulations that foster industry innovation and competitiveness
We worked to improve food safety regulation by: pursuing Australian objectives in international food standard-setting bodies, particularly the Codex Alimentarius Commission working with Food Standards Australia New Zealand advisory committees on standards for nutrition, health and other claims; the primary production and processing requirements for poultry, meat, eggs, seafood and dairy foods; and standards for the mandatory fortification of folic acid.
Outcome component: Self-reliant and innovative portfolio industries
Effectiveness indicator Increased awareness of and participation in programs to support change and adjustment, and to improve business, risk and resource management, uptake of research and innovation, and capacity for leadership as measured by: independent program reviews and audits participant surveys annual reports and reporting data from portfolio corporations website data commissioned research.
Responsible output Output 2: Rural Policy and Innovation
Increased awareness and participation to support change and improve management, innovation and leadership
We have increased awareness of and participation in rural relief and innovation programs: Awareness of the FarmBis program was steady at 81%, and 9000 FarmBis training sessions were completed in 2007–08. Record take-up of the Rural Financial Counselling Services program, accessed by more than 14 500 clients during the year. Under the Advancing Agricultural Industries program, 29 Action Grant projects helped industries to address priority problems and opportunities, and 38 AgFund projects gave producer groups the opportunity to tackle industry issues at the local level. Total contributors to the Farm Management Deposits Scheme increased to over 41 000 primary producers; total funds topped $2.3 billion. We ran 20 agricultural biotechnology information forums for farmers and the community, and published six reports on genetically modified (GM) crops and non-GM biotechnology applications. A five-year longitudinal study of the Farm Help program showed that it produced better medium- to long-term financial results for participants.
Outcome component: Access to markets
Effectiveness indicators Maintaining existing markets and creating new and improved trade opportunities for portfolio industries. Enhancing international agricultural cooperation to facilitate increased trading opportunities. Maintaining the integrity and delivery of inspection and certification services, standards setting, technical market maintenance and public awareness.
Responsible outputs Output 4: International Food and Agriculture Service Output 6: Quarantine and Export Services
Maintaining existing markets and creating new and improved trade opportunities
In 2007–08, the department acted to maintain existing markets and create new markets for Australian products, including: protecting 100 animal product exports to 52 countries (6 markets were gained, 6 improved and 10 maintained) protecting market access for plant products (2 markets were gained, 14 markets improved and 4 markets maintained). We also: maintained continuing access to overseas markets enabled after audits of Australian export systems by the United States, European Union, Russia, Taiwan and Indonesia gained access for five additional Australian export meat establishments to the Chinese market maintained access for $200 million in grain exports to Thailand, after changes to plant quarantine regulations maintained the $1.2 billion United States market for beef after new testing requirements were introduced reopened the trade in live animals to Libya and Egypt gained new or improved conditions for trade in stonefruit to Canada, citrus to Taiwan and Japan, mangoes to Malaysia, and cherries to the United States.
Enhancing international agricultural cooperation
We enhanced international agricultural cooperation by: contributing to negotiations in the World Trade Organization (WTO) Doha Round contributing to a number of free trade agreement (FTA) negotiations, including those for FTAs between Australia and ASEAN, Chile, Japan and Mexico funding 14 projects under the four-year, $6.4 million International Agricultural Cooperation program, including work with Eritrea, Taiwan, China and Indonesia promoting improved animal welfare and trade in live animals in work with Russia, Indonesia, Malaysia, Libya, Eritrea and Egypt working with AusAID on sanitary and phytosanitary capacity building in ASEAN countries.
Maintaining the integrity and delivery of inspection and certification services, standards setting, technical market maintenance and public awareness
During 2007–08, the department maintained the integrity and delivery of inspection and certification services, standards setting, technical market maintenance and public awareness by: improving Australia’s import risk analysis process, with effect from September 2007 contributing to the work of the United Nations Food and Agriculture Organization, the Codex Alimentarius Commission, the World Organisation for Animal Health, the International Plant Protection Convention, the WTO Committee on Sanitary and Phytosanitary Standards sustaining public awareness of quarantine through the Quarantine Matters! campaign (two-thirds of Australians over 18 recall the campaign) building community awareness and commitment to the Australian Animal Welfare Strategy through presentations, news articles, our website, special events and participation in conferences managing the extension of the National Livestock Identification System to cover sheep, goats, pigs and alpacas.
Outcome component: Managing pest and disease risk
Effectiveness indicators Maintaining Australia’s favourable animal and plant health status. Minimising the adverse impacts of agriculture, forest or aquaculture pests, diseases and contaminants on production and trade. Ensuring that scientific and technical advice underpins import risk analyses and the development of a national quarantine policy. Maintaining the integrity of, and continuing to deliver, inspection and certification services.
Responsible outputs Output 4: International Food and Agriculture Service Output 5: Product Integrity, Animal (including Aquatic Animal) and Plant Health Output 6: Quarantine and Export Services
Maintaining Australia’s favourable animal and plant health status
During 2007–08, the department maintained Australia’s animal and plant health status by: analysing and advising on pest and disease threats formally reporting Australia’s animal health status to international animal health authorities, directly supporting export certification, import risk analysis and trade developing a national approach to avian influenza through workshops to discuss biosecurity, surveillance, vaccination, and communications with poultry industries, zoos, wild bird community organisations and state and territory governments working to prevent incursions of avian influenza and to mitigate risks by supporting a government–industry surveillance taskforce, an industry-led biosecurity consultative group, stakeholder and expert workshops, and spatial risk analysis leading the national expert advisory group on avian influenza vaccination policy.
Minimising the adverse impacts of pests, diseases and contaminants on production and trade
We minimised adverse impacts by: effective and efficient national management of pest, disease and contaminant emergencies affecting Australian agriculture and aquaculture leading the national response to eradicate equine influenza, leading to Australia’s declaration of freedom from the disease on 30 June 2008 supporting Australian Veterinary Reserve members working on the outbreak managing the program to eliminate citrus canker from the Emerald region of Queensland managing the program to eradicate the red imported fire ant managing small anthrax outbreaks, an increased incidence of bovine ephemeral fever, an incursion of Asian honey bees, and the detection of antibacterial residues in cattle completing Securing the Future projects on time and to a high quality effectively managing Wildlife and Exotic Diseases Preparedness Program projects and coordinating the Australian Wildlife Health Network enabling whole-of-government and multidisciplinary approaches to zoonoses and wildlife health, particularly in relation to surveillance providing national coordination for responses to emergency plant pests continuing our strong involvement in industry biosecurity planning and pest categorisation.
Scientific and technical advice underpins import risk analyses and national quarantine policy
We supplied scientific and technical advice to: the United States, Thailand, China, Korea and Indonesia, on Australian production and certification systems Japan, on maximum residue limits Singapore, Malaysia, Japan, China and the United Arab Emirates, on Australian horses Thailand, on Australian grain various countries, to support markets for Australian abalone, horticultural products, livestock genetic material, sheep, goats, cattle, stonefruit and citrus.
Maintaining the integrity and delivery of inspection and certification services, standards setting, technical market maintenance and public awareness
See above under ‘Outcome component: Access to markets’.
Outcome component: Scientific advice
Effectiveness indicators The degree to which scientific advice is utilised by ministers and industry and is reflected in national policy decisions or related public information as measured by: a high level of demand by stakeholders, including through new technologies references to scientific advice in policy decisions and related public information client feedback.
Responsible output Output 7: Scientific Advice
Scientific advice utilised by ministers and industry and reflected in policy decisions or public information
In 2007–08, the Bureau of Rural Sciences (BRS) delivered scientific advice to guide policy decisions and to inform the public on: equine influenza and avian influenza drought and climate change—including weekly and monthly climate reports to the minister and to other Australian Government agencies, and assessments of coastal irrigation areas at risk from rising sea levels water—including assessments of groundwater condition in the Murray–Darling Basin, a report on rainfall chloride levels across the basin and their impact on soil, and an assessment of the potential to use brackish water in contingency planning in the basin fisheries—including advice to international fisheries commissions and advice to the Australian Government on the Commonwealth Fisheries Harvest Strategy policy, ecological risk assessment and the fisheries structural adjustment package forestry—including participation in meetings of the Food and Agriculture Organization and the Montreal Process and advice to the government for reviews of regional forest agreements, illegal logging, plantations, timber certification and other forestry issues. A BRS survey in June 2008 polled 110 clients and stakeholders about the relevance and quality of the bureau’s advice. In the survey, more than 90% of respondents were satisfied or very satisfied with the quality of BRS scientific advice (2006–07: 91%).
Outcome component: Economic research
Effectiveness indicators The extent to which ABARE research, analysis and forecasts are considered in the policy-making process as measured by: the use of ABARE analysis in government-commissioned reports and studies the number of mentions in parliament the number of invitations to give briefings and presentations to government, business and community conferences and meetings the number of media mentions, including on television and radio and in the press.
Responsible output Output 8: Economic Research
During 2007–08, Australian Bureau of Agricultural and Resource Economics (ABARE) research results were used as input to Australia’s policy agendas for: developing the Carbon Pollution Reduction Scheme developing appropriate adaptation and mitigation responses to climate change through the Garnaut Review and Australian Treasury whole-of-government climate change modelling developing a cost-effective strategy for the management of equine influenza in Australia planning and modelling the impacts of drought, water trading and irrigation in the Murray–Darling Basin development of the new wheat marketing arrangements to commence in 2008–09 administering drought relief across eastern Australia developing the Commonwealth Fisheries Harvest Strategy policy. ABARE was mentioned 3680 times in the media and 22 times in parliament, and was invited to present 146 briefings. Internationally, ABARE’s research fed into WTO and FTA negotiations on agricultural trade.
Outcome component: Policy advice
Effectiveness indicators Level of satisfaction of ministers and the parliamentary secretary with the quality and timeliness of ministerial correspondence, briefs, parliamentary questions on notice, question time briefs, speeches and media releases as measured by the feedback received.
Responsible outputs All outputs
The minister provided regular feedback throughout the year. He has expressed his satisfaction, formally and informally, with continued improvements in the quality and timeliness of our work on ministerial correspondence, briefs, parliamentary questions on notice, question time briefs, speeches and media releases since his appointment.

All the department’s divisions and agencies contribute to Policy advice, the eighth component of the outcome. Performance for this component was to be measured by the:

Level of satisfaction of ministers and the parliamentary secretary with the quality and timeliness of ministerial correspondence, briefs, parliamentary questions on notice, question time briefs, speeches and media releases as measured by the feedback received.

The portfolio is now the responsibility of a single minister, and includes no parliamentary secretary.

The minister has expressed his satisfaction with continued improvements in the quality of our policy advice in discussions with the department’s Executive, for example at portfolio business meetings.

During the year, the minister’s staff provided regular feedback by phone and email and through annotations on paperwork, a feedback sheet attached to all ministerial documents, and portfolio business meetings with the Executive.

The department’s ministerial workflow increased in 2007–08 for incoming ministerial correspondence (up 40.8%). Briefs decreased by 36.3%, due largely to the caretaker period and the reduction of the number of ministers within the portfolio following the election. Figure 6 shows totals and trends for written advice provided over the past five years.

For 2007–08, we set an ambitious target of less than 5.0% for ministerial correspondence returned to us for redrafting—a reduction from 5.0% in 2006–07 and 8.6% in 2005–06.

We prepared a total of 4977 ministerial responses in 2007–08, including 3308 for the minister’s signature and 1669 for departmental signature. Of the items for the minister’s signature, 511 (15.5%) were returned to the department for redraft. Around 40% of those were returned to be changed from ministerial to departmental responses. Other main reasons for redrafts were to update content and to adjust to the new minister’s style. For 2008–09, we aim to reduce returns to less than 5.0%.

The department has a target of ‘no overdue’ ministerials at close of business each Thursday. Throughout the year, 53 ministerials (1.6% of responses sent to the minister for signature) were reported as overdue. Further refinement of the department’s procedures for correspondence and briefings, and quality assurance of those processes, will be a priority in 2008–09.

To develop more coordinated portfolio communications and ensure that our administrative procedures are practical and effective, we held regular meetings with our departmental liaison officers, who work in the ministers’ offices. A focus of our work in 2008 has been on establishing offices for the new minister and tailoring procedures and styles to ensure streamlined and effective delivery of portfolio material.

Changes to the ministerial correspondence process and ministerial workflow system in April 2007 created an instant feedback mechanism to departmental officers on the quality of correspondence. We have used quality information captured by the system to provide targeted, team-based training in ministerial writing and style. Initiatives introduced in 2007–08 included individual plain English training and plain English tips through the department’s eBulletin. Regular in-house training in writing ministerial correspondence, speeches and media releases and in the use of the workflow system was positively received.

Following the election, we developed new ministerial and departmental style guides, which have been regularly updated and are available to all staff on our intranet.

We are further upgrading the ministerial workflow system. The new system (called MinCor4) to be introduced in 2008–09 will include enhanced performance reporting.

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Natural Resources Access and Management

The department works with farmers, industries, governments and other stakeholders to maintain and improve the sustainability of Australia’s land, water, fisheries and forestry resources. In 2007–08, we did most of this work through our Natural Resource Management (NRM) Division and our Fisheries and Forestry Division.

After the departmental restructure in June 2008, most NRM tasks were transferred to the new Sustainable Resource Management Division, while the new Climate Change Division took over responsibilities for forests.

Priorities

• Through close collaboration with Australian agricultural industries, address priority NRM issues and develop and coordinate policies at government and regional levels to encourage sustainable resource access and use and meet the challenges involved in sustainable production systems.
• Deliver information for improved resource management through initiatives that assess the condition, use and management of Australia’s natural resources, and lead to improved monitoring, evaluation and knowledge management at national and regional levels.
• In collaboration with the private sector and all levels of government, promote and facilitate adoption of sound NRM practices, particularly at the catchment or regional scale, through targeted programs such as the Natural Heritage Trust, the Australian Government Envirofund, the National Action Plan for Salinity and Water Quality, the National Landcare Program (NLP), and the Defeating the Weed Menace Program.

Highlights

• Supported 189 NLP projects and 63 community Landcare positions to promote the integration of agricultural production and conservation.
• Supported Signposts for Australian Agriculture project, bringing to six the number of completed industry profiles assessing and demonstrating industries’ contribution to sustainability.
• Managed the closure of the National Action Plan for Salinity and Water Quality, the Natural Heritage Trust and the Defeating the Weed Menace program, and the transition to the new Caring for our Country programs.
• Established six major Native Vegetation Regional Pilot Projects across Australia under the Natural Heritage Trust to investigate and test improved strategies to manage native vegetation.
• Organised an Agriculture Roundtable to provide industry input into the government’s Carbon Pollution Reduction Scheme Green Paper.
• Contributed to the second Environmental Performance Review by the Organisation for Economic Co-operation and Development.

Encouragement for sustainable resource access and use

The department continued to promote and encourage sustainable resource use, and the development of sustainable production systems, through close collaboration with rural industries and all levels of government. Programs such as the Environmental Management Systems Pathways to Sustainable Agriculture Program and the Sustainable Industry Initiatives Program produced positive NRM results. Recent program evaluations have confirmed the benefits of work with industry to promote and implement sustainable production systems (see ‘Reviews and evaluations’ in this report).

Developing policies to achieve sustainable production

The Australian Landcare Council advises the minister on sustainable resource management policy. During 2007–08, the council advised on weeds policy and program investment priorities; improving landcare monitoring, evaluation, reporting and program improvement; maintaining and encouraging the volunteer network; and responding to climate change. The council also contributed advice on landcare achievement through the regional delivery model for the development of Caring for our Country. The council is currently in recess. The government is considering the need for and nature of advice required for Caring for our Country.

A review of Australian Government industry initiatives provided policy recommendations on maximising the agricultural industries’ contribution to sustainable farm practices through strategic industry actions. The NRM Division supported Landcare Australia Limited to promote private sector participation, leverage corporate support and integrate sustainable resources management into the agricultural sector’s value chain. Landcare Australia Limited also contributed to the climate change policy debate and continued to support farmers’ participation in carbon markets.

Working with industry on NRM priorities

The Pathways to Industry EMS (environmental management systems) Program and the Sustainable Industry Initiatives built ongoing partnerships and collaborative arrangements across a broad range of industry groups.

This work enabled strategic national NRM activity and better management of natural resources, and allowed industries to demonstrate their environmental credentials to markets and the public. Program evaluations have delivered a better understanding of differing industry perspectives and needs, and helped to refine and guide future investment in sustainable agriculture.

The Australian Government provided $2 million for Native Vegetation Regional Pilot Projects under the Natural Heritage Trust to investigate and test improved management strategies for native vegetation on private and public rural lands. The aim is to develop strategies that also facilitate sustainable, profitable businesses. This is achieved in a way that allows farmers to demonstrate their sustainable land use and environmental credentials, recognises the contribution farm management makes to regional priorities and targets, and shares the costs of managing native vegetation for public benefit between landholders and the Australian community.

We expect the knowledge and experience from these pilot projects to lead to established guidelines and templates that inform future national programs to improve the sustainable management of Australia’s natural vegetation resources. The Bureau of Rural Sciences is evaluating the program, and a report is expected to be finalised by early 2009 when all the projects are completed.
Fact sheets on the pilot projects are now available on our website.

Improving policy coordination across government and the regions

In 2007–08, the department supported many forums that coordinate policy and share information between governments and regions on various NRM issues. These included:

• National NRM Knowledge conference (April 2008)
• NRM Regional Chairs Forum, which also presented to the NRM Ministerial Council meeting of 18 April 2008
• 2nd National Indigenous Land & Sea Management Conference (October 2007)
• Murray–Darling Basin Commission International River Health Conference (October 2007)
• 2nd International Salinity Forum (March–April 2008).

We also improved policy coordination through our involvement in:

• the Joint Working Group on a National Environmental Information System
• national coordinating committees for NRM issues
• the National Land and Water Resources Audit
• the Australian Resource Management Survey and the redesign of the Natural Resource Management survey, with the Australian Bureau of Statistics
• CSIRO liaison activities.

The department organised an Agriculture Roundtable on 28 April 2008, hosted by the Minister for Agriculture, Fisheries and Forestry, Tony Burke MP, and the Minister for Climate Change and Water, Senator Penny Wong. The meeting engaged the agricultural industries on their potential inclusion in the Carbon Pollution Reduction Scheme, and the timeframe and design of the scheme.

We continued to work closely with the Department of the Environment, Water, Heritage and the Arts and the states and territories to encourage a national approach to the management and control of weeds and pest animals.

We are partners, along with all state and territory governments, in the implementation of the national strategies for the management of invasive species. The Australian Weed Strategy and the Australian Pest Animal Strategy are agreed multijurisdictional frameworks for nationally consistent action on weeds and pest animals. Work under these strategies is dynamic, and we continue to work with the Australian Weeds Committee and the Vertebrate Pests Committee to ensure that the Australian Government’s priorities are being addressed.

The Pathways to Industry EMS Program and the Sustainable Industry Initiatives contributed to improved policy coordination by improving partnerships and increasing participation in regional planning and activities. Pathways to Industry supported 10 regions, increasing their capacity to provide leadership and sustained support for EMS approaches and sustainable resource management in Australian agriculture.

Information for improved resource management

The department worked to assess and report on Australia’s natural resources, and to improve monitoring, evaluation and knowledge management.

Assessing and reporting on Australia’s natural resources

We contributed to the second Environmental Performance Review by the Organisation for Economic Co-operation and Development (OECD). The review was delivered to the Minister for the Environment, Heritage and the Arts, Peter Garrett, and the Minister for Climate Change and Water, Senator Penny Wong, by the head of the OECD Environment Directorate on 19 March 2008.

The report examined the environmental performance of Australia as a whole. Reviewing the period from 1998 to 2007, it showed substantial progress in environmental management, but also recommended:

• setting more precise environmental standards
• expanding the use of economic instruments (such as market-based incentives)
• improving environmental monitoring and data
• more closely integrating biodiversity conservation into land management.
• The conclusions and recommendations of the review are available on the website of the Department of the Environment, Water, Heritage and the Arts (www.environment.gov.au/commitments/oecd/publications/review.html).

Implementing Signposts for Australian Agriculture projects

We continued to participate in Signposts for Australian Agriculture, which is managed by the National Land and Water Resources Audit. The project aims to develop a framework for consistent reporting on the contributions of Australia’s agricultural industries to environmentally sustainable development.

Six industry profile reports (grains, beef, dairy, horticulture, cotton and wine) summarising the industries’ economic, social and environmental contributions, issues, and initiatives have been completed. The grains industry profile is the first of the six to be made available online (http://signposts4ag.com/).

Improving monitoring, evaluation and knowledge management

During 2007–08, the Australian Government NRM Team worked to improve monitoring, evaluation, reporting and program improvement (MERI) efforts at national and regional levels.

The NRM Team developed the Australian Government NRM MERI Framework, which revises the previous framework developed in 2003. The framework promotes the use of logical program design as a tool for improving project management, learning and investment design. It also identifies the need to improve the way we report on NRM investments by focusing on reporting the outcomes of investment.

There has been a major training investment in MERI principles and practice at regional, state and national levels, with a focus on program logic, reporting by outcomes and the integration of multiple lines of evidence in outcome reports. Around 2000 NRM practitioners have now participated in one or more of nearly 70 workshops held in all jurisdictions, and nearly three-quarters of NRM regions have hosted a training event.

The NRM Team, in partnership with states, territories and regions, trialled outcome reporting through 13 ‘performance story reports’ as a way of improving reporting on the impact and appropriateness of NRM program investment. Each report documents evidence of the achievement of outcomes leading to a longer term NRM goal or target. As well as explaining what a program has achieved, a performance story report also describes how it was done. The results of the trial will improve our ability to report on investment outcomes.

For example, the performance story report on NRM investment in the Ellen Brockman subregion of the Swan Catchment in Western Australia demonstrated that the investment:

• leveraged another $1 million of public and private investment from an Australian Government contribution of around $1 million
• benefited water quality by holding nitrogen and phosphorus loads stable despite increasingly intensive land use
• protected biodiversity and the extent and quality of native vegetation despite development pressures
• enabled the Chittering Landcare Centre to build strong, positive relationships with local government, with the aim of making urban developments at the rural–urban interface more sustainable.

Promotion and adoption of sound NRM practices

The department maintained a strong emphasis on promoting catchment- and regional-level management practices to strengthen the sustainability of the natural resource base. An important element in this work has been the development of cooperative arrangements that allow the various programs to leverage further investment from the private sector, state and territory governments and local governments.

Implementing targeted NRM programs

Major programs administered by the department to support sustainable NRM include:

• the National Action Plan for Salinity and Water Quality and the Natural Heritage Trust (which includes the Australian Government Envirofund). We have a cross-portfolio arrangement with the Department of the Environment, Water, Heritage and the Arts (DEWHA) to deliver these programs jointly through the Australian Government NRM Team, which includes personnel from both departments. Funds are directed to specific regional investment plans and strategies. These programs are also reported on by DEWHA in that department’s annual report.
• the National Landcare Program (NLP), which supports the take-up of sustainable farming techniques and technology and enhances land managers’ awareness of Landcare and NRM activities. NLP funding is delivered mainly through the states and various regional arrangements; some specific elements (such as Natural Resource Innovation Grants) are delivered directly to individual project proponents.
  

In March 2008, the Australian Government announced the Caring for our Country initiative to succeed the Natural Heritage Trust and the National Action Plan and to take a new approach to the delivery of the NLP. The government will invest $2.25 billion over five years to restore the health of Australia’s environment and build on improved land management practices. Planning and preparation of the initial stages of Caring for our Country were completed, and administrative arrangements and policies are in place to deliver the program in 2008–09 and beyond.

Projects funded by the Natural Heritage Trust and the National Action Plan are listed at the Caring for our Country website. Natural Heritage Trust investments and their outcomes are also detailed in the annual reports of the Trust.

National Action Plan for Salinity and Water Quality

The National Action Plan, a seven-year, $1.4 billion program, concluded on 30 June 2008. The plan focused on reducing dryland salinity and improving water quality, with emphasis at the regional level and delivery through regional NRM plans that integrated National Action Plan and Natural Heritage Trust activities. Of Australia’s 56 NRM regions, the 55 with NRM bodies have NRM plans that are jointly accredited by the Australian Government and state and territory governments. During 2007–08, the Australian Government contributed $98.3 million for activities under the National Action Plan.

For example, in New South Wales the plan has provided $640,885 over four years for a project to restore natural cycles of inundation and drying to wetlands in the lower Murray–Darling Basin. The project restored more than 700 hectares of wetlands, improved water quality and the ecological health of the wetlands and their river systems, and increased the diversity and abundance of native plants and animals.

The National Market-based Instruments Pilot Program, which was funded collaboratively by all governments under the National Action Plan, continued during 2007–08 after favourable reviews of Round 1 in 2005–06. Market-based instruments can deliver environmental outcomes from farmers more cost effectively than traditional program methods. They can be price-based (such as auctions) or quantity-based (such as offset schemes), or they can work by improving the functioning of existing markets, for example by reducing uncertainty or risk.

As the host agency for the program, the department liaised with jurisdictions for final contributions to the program special account, appointed an external agent to deliver the capacity-building component of the program, and took on the secretariat role for the program working group and oversight committee. We have begun discussions with the working group on the evaluation of the program.

The Caring for our Country website has further details of National Action Plan projects, including a mosaic map highlighting achievements in each NRM region. The National Action Plan website publishes annual reports on the regional component of the plan.

National Landcare Program

Landcare is Australia’s voluntary, community-based movement to promote sustainable land management. Landcare funding is administered at national and local levels through the National Landcare Program (NLP), which aims to increase engagement by industry, farmers and the general community in the program. Funding under the NLP includes support for the Australian Landcare Council and Landcare Australia Limited.

In 2007–08, the national component of $8.75 million ($11.72 million in 2006–07) provided for:

• 29 priority national projects, including management of rangelands, dairy shed effluent, variable inputs for graingrowers, fire, recycled water, methane from livestock production, and climate variability
• 51 Natural Resource Innovation Grants (which encourage people in portfolio industries to develop and adopt innovations in production techniques, technologies and products), including for work on pollination, livestock behaviour monitoring and contour-based soil management
• 15 Sustainable Industry Initiatives, which are partnerships with resource-based industries to promote industry ‘ownership’ of NRM and encourage participation in regional NRM planning and activities
• 7 state Landcare coordinator positions and 1 National Landcare Facilitator.

At the state and regional levels, NLP community funding of $26.8 million supported 189 projects and 63 community Landcare coordinator positions (2006–07: $25.3 million; 172 projects; 62 positions; see also Figure 7). The funding generated commitments of more than $27 million in cash and in-kind matching contributions from those involved in the projects.

The projects promoted such sustainable practices as the integration of agricultural production and conservation, controlled-traffic farming systems and riparian management to improve catchment water quality, and best practice pasture and grazing management.

From their inception in 2002–03 to their completion in 2007–08, Sustainable Industry Initiatives enabled the Australian Government to develop 21 partnerships with 16 industry organisations, and involved expenditure of $6.7 million. The initiatives supported many activities and outputs contributing to the sustainability of portfolio industries, including goal setting, strategic planning, coordination and targets; development and trial of support tools and training materials; extension and technical support to industry and on-farm decision-makers; information access and knowledge brokering; and linking with regional NRM bodies.

Natural Heritage Trust

The $3.1 billion Natural Heritage Trust was established in 1997 by the Australian Government to invest in activities that restore and conserve Australia’s environment and natural resources, and contribute to the sustainable use of those resources. The program ended on 30 June 2008.

Australian Government investments in the Trust occurred in two phases. In Phase 1 (1996–97 to 2001–02), $1258.2 million was invested through some 20 programs. In Phase 2 (2002–03 to 2007–08), $1774.67 million was invested:

• national projects—$742.56 million
• regional projects—$747.15 million
• local projects—$136.57 million
• administration expenses—$148.4 million.

The largest component of Phase 2 of the Trust was regional investment through Australia’s 56 NRM regions under plans accredited by the Australian Government and state and territory governments. Investments were made jointly with the National Action Plan.

The second largest component of Phase 2 was investment in activities with national, state-wide or multiregional scope.

The third component, local level investment, was delivered through the Australian Government Envirofund, with grants of up to $50,000 allowing local groups to undertake small-scale projects to address local environmental problems.

In 2007–08, the government invested $342.48 million under the Trust, and the Envirofund funded 1206 local projects to the value of $25.8 million via competitive funding rounds. Envirofund projects announced in October 2007 were the final projects to receive funding.The Natural Heritage Trust also funded the Pathways to Industry EMS (Environmental Management Systems) Program, which fostered partnerships with industry, regions and research organisations. The aim was to increase the adoption of self-sustaining profitable and sustainable farming practices, and to enable producers to demonstrate environmental credentials to domestic and international markets. The program engaged a total of 23 industry groups and regional NRM bodies across Australia. The final review of the program was published in October 2007. The observations from the review contributed to the department’s broader evaluation of industry-focused NRM programs, which assisted in the development of Caring for our Country targets and programs.

Defeating the Weed Menace

The Defeating the Weed Menace program ceased on 30 June 2008. The final year of the program focused on the finalisation of projects funded over the life of the program.

Around 200 projects have been funded, covering on-ground eradication, containment and control; best practice management strategies; monitoring, mapping, early detection and identification tasks; and communication and awareness programs leading to better management, quarantine and biological control.

Over $41 million was injected directly into priority weed management activities mainly for the 20 ‘weeds of national significance’ (WoNS), the weeds on the National Environmental Alert List and ‘sleeper weed’ species.

As well as providing grant funding, Defeating the Weed Menace supported a network of WoNS coordinators and their management groups, and the National Weeds Management Facilitator, to coordinate national action. This resulted in stronger strategic action on weeds across the country, the dissemination of information on better weed management techniques, and more efficient weed control.

The government honoured an election commitment for a national weeds and productivity research program by establishing the Australian Weeds Research Centre. The centre will continue the work begun by the Cooperative Research Centre for Australian Weed Management, which also ceased on 30 June 2008. The government is providing $15.3 million over four years to investigate and address Australia’s most significant invasive plants to reduce their impact on farm and forestry productivity and on biodiversity.

Leveraging further investment

During 2007–08, several NRM programs attracted additional investments from the private sector, state, territory and local governments, and community groups. For example, the National Action Plan required state and territory governments to provide around $700 million over the life of the program to match the Australian Government’s investment (the final total will not be known until joint accounts are finalised in December 2008).

The NLP attracted further investments from landholders, industry, regional organisations, local governments and communities. Community support project proponents reported contributions well over the required dollar-for-dollar ratio for NLP projects (in some cases, by nearly four to one). Between 2003–04 (when community support projects began) and 2007–08, project proponents reported contributions totalling $171.03 million (in cash and in kind) on projects funded by the NLP for $135.1 million (a ratio of about 1.27:1). (See also Figure 7.)

Under bilateral agreements to deliver the regional component of Phase 2 of the Natural Heritage Trust, state and territory governments were also required to match Australian Government investments, either in cash or in kind (the final figure for matching contributions will not be available until December 2008). The Australian Government Envirofund, part of the Trust, provided small grants to community groups for environmental projects, and those groups usually contributed additional cash or in-kind resources. Over the life of the Envirofund, project proponents contributed $210 million.
Over its life, the $41 million Defeating the Weed Menace program leveraged matching contributions of about $39 million from project partner organisations.

Natural Resource Management (Financial Assistance) Act 1992

The Natural Resource Management (Financial Assistance) Act 1992 assists the development and implementation of an integrated approach to NRM in Australia. In particular, the Act supports landcare through the NLP. Under subsection 26(1) of the Act, a report must be prepared each year on the operation of the Act and agreements made under it. This is that report.

The NLP was established in 1992 to manage Australian natural resources under the Act efficiently, sustainably and equitably. After the Natural Heritage Trust was established in 1997, major NRM programs, including the NLP, were delivered through the Trust One-Stop Shop. Since the shift during 2002–03 to regional NRM arrangements, NLP funding has been managed separately from the Trust, and delivered directly by the Australian Government and through the NRM regional process.

Appropriations to the NLP in 2007–08 totalled $35.52 million (2006–07: $37.00 million), with $9.02 million allocated to the Natural Resources Management Fund for activities contracted directly by the Australian Government and $26.77 million allocated to payments to the states (see Table 2). Section 5 of the Act provides for the Australian Government and the states and territories to agree on financial assistance for NRM projects. Agreements with the states and territories to deliver funds for these projects have been in effect since 1 July 1993.

Agreements and commitments approved under section 6 of the Act, covering payments from the Natural Resources Management Fund during 2007–08, allowed $8.75 million of appropriation to be paid into the fund, in addition to the funds carried forward from 2006–07.

Significant projects included $1.49 million for Natural Resources Innovation Grants, $3.43 million for Priority National Projects and $2.30 million for 15 Sustainable Industry Initiative projects, which aimed to encourage industry and resource users to improve Landcare and NRM activities through partnerships with the Australian Government.

Another $3.83 million was spent on Landcare support, including the Australian Landcare Council established under the Act as an independent advisory body on NRM; Landcare Australia Limited for raising corporate sponsorship and awareness of Landcare; the National Landcare Facilitator for efficient and effective channels of communication between the Australian Government and the Landcare movement, national industry and community organisations and other relevant national bodies; and monitoring, evaluation and administration.

Seven state Landcare coordinators, based in each state and the Northern Territory, were engaged with industry at a cost of $1.31 million.

Table 2
Payments to the states and territories under the Natural Resource Management (Financial Assistance) Act 1992, 2003–04 to 2007–08 ($)
	2003–04	2004–05	2005–06	2006–07	2007–08
Australian Capital Territory	140,000	160,000	183,500	190,000	174,500
New South Wales	6,243,110	6,572,153	6 799 419	6 162 769	6,332,567
Northern Territory	1,080,200	1,593,171	1,327,581	971,440	889,134
Queensland	7,935,624	6,541,034	6,362,266	4,908,510	5,740,160
South Australia	3,183,924	3,736,719	3,688,376	3,518,115	3,645,085
Tasmania	995,175	1,658,402	1,541,999	1,590,945	1,624,148
Victoria	4,627,491	4,845,094	5,525,952	4,332,859	4,832,438
Western Australia	3,661,937	3,967,520	3,592,055	3,585,885	3,536,602
Total	27,867,461	29,074,093	29,021,148	25,260,523	26,774,634

Outlook for 2008–09

The new $2.25 billion Caring for our Country initiative began on 1 July 2008, and integrates delivery of the Australian Government’s existing NRM programs, the Natural Heritage Trust, the National Action Plan for Salinity and Water Quality, the National Landcare Program, the Environmental Stewardship Program and the Working on Country Indigenous land and environmental program.

Our new Sustainable Resource Management Division will manage much of the new investment. We have a cross-portfolio arrangement with the Department of the Environment, Water, Heritage and the Arts to deliver the program jointly through the Australian Government Land and Coasts Team, which includes personnel from both departments.

Caring for our Country provides $2.25 billion in funding over five years from July 2008 to June 2013. Regional NRM organisations will be supported by $636 million to invest in actions that complement and contribute to the achievement of the Australian Government’s six national priority areas:

• a national reserve system
• biodiversity and natural icons
• coastal environments and critical aquatic habitats
• sustainable farm practices
• NRM in remote and northern Australia
• community skills, knowledge and engagement.

The government will also provide funds to fulfil election commitments to:

• rescue the Great Barrier Reef
• repair our fragile coastal ecosystems
• save the endangered Tasmanian devil
• improve water quality in the Gippsland Lakes
• fight the cane toad menace
• employ additional Indigenous rangers
• expand the Indigenous Protected Area network
• assist Indigenous Australians to enter the carbon trading market.

We expect to complete a mid-term review of the National Agriculture and Climate Change Action Plan 2006–09. The action plan is an agreement by Australian governments to develop a coordinated framework for climate change policy in agriculture. It provides practical tools to develop effective and efficient policies to deal with climate change challenges.

We also plan to finalise two major planning documents:

• the Forestry and Climate Change Action Plan, which is due for consideration by the Primary Industries Ministerial Council late in 2008
• the National Climate Change and Fisheries Action Plan, for consideration by the Primary Industries Ministerial Council and the NRM Ministerial Council late in 2008.

Table 3
Output 1 performance, 2007–08
Output 1 objective
To advance the productive, profitable and sustainable use and management of Australia’s natural resource assets—land, water, fisheries and forestry—and security of access to them.
Output component: High-quality policy advice on natural resources access and management
Performance measure The extent to which policy advice relating to natural resource management is used in policy decisions as measured by feedback from ministers and the parliamentary secretary and the extent that actions of ministerial councils and other government and industry committees take account of portfolio policies and priorities. Performance The department provided policy advice on natural resource management (NRM) programs beyond June 2008, following the government’s decision to wind up the Natural Heritage Trust and, from 1 July 2008, refocus its NRM programs in the Caring for our Country initiative to better target national priorities. We prepared agenda papers on market-based instruments as NRM tools to inform discussions by the NRM Standing Committee and Ministerial Council. We contributed to the development of national policy frameworks, including the reviews of the National Biodiversity Strategy, the national Native Vegetation Framework and the National Reserve System, and worked closely with the Department of the Environment, Water, Heritage and the Arts to advance the NRM Ministerial Council’s review of the Native Vegetation Framework.
Output component: Effective administration of natural resources access and management programs
Performance measures The progress on program implementation that contributes to improved natural resource management outcomes as measured by evaluation of existing programs and the extent of establishment of new program arrangements and leverage of additional financial and other investments from public and private organisations. The extent of engagement with stakeholders and evidence of improved stakeholder relations as measured by the degree of awareness and positive recognition and the take-up of NRM programs. Performance Implementation of all programs was on schedule at 30 June 2008. For assessments of performance for administered programs, see Table 4. Administered items Four administered items contributed to Output 1. See Table 4 for performance reporting on individual items.

Table 4
Output 1 administered items, 2007–08
Defeating the Weed Menace Program	2007–08: $5.66 million
Performance measure The extent to which the program has improved national coordination of weed management, increased public awareness of weed issues and improved coordination and national focus of weeds research. Performance Highlights of work in 2007–08 included: an Australian Government commitment of $3.72 million in grant payments for ongoing projects $0.60 million committed for research into ways to combat Australia’s most intractable weeds $1.99 million committed for national coordination and facilitation of action on 20 of Australia’s worst weeds a national campaign to raise awareness of the potential of garden plants to become weeds in the wider environment continued engagement with the nursery and garden industry to reduce the sale of weedy plants, including a project to develop information to help the public choose more suitable plants support for the work of the network of Weeds of National Significance coordinators, their management groups and the National Weeds Management Facilitator. Projects funded under the research and development component of the program are nearing completion and will provide a valuable foundation for the Australian Weeds Research Centre, which the government has recently established to coordinate national weeds research. See ‘Promotion and adoption of sound NRM practices’ in this section for a full description of Defeating the Weed Menace work during the year.
National Action Plan for Salinity and Water Quality	2007–08: $96.36 million
Performance measures Investment strategies address nationally agreed natural resource management (NRM) priorities to deal with identified NRM issues. All investments approved by ministers are delivered through appropriate financial agreements and provided with funding in accordance with National Action Plan accountability and acquittal procedures, to meet the plan’s objectives. Performance Each of Australia’s 56 regional NRM bodies now has an investment strategy or a series of discrete investment packages for which funding is agreed and specified in financial agreements. All of the 21 priority National Action Plan regions have approved investment strategies developed by the 36 NRM regions responsible for delivery. In 2007–08, 464 National Action Plan projects were funded with a total value of $96.36 million. All the investment strategies were reviewed before approval to ensure that they reflected agreed priorities and delivery arrangements for the National Action Plan. All activities receiving national-level National Action Plan funding met agreed priorities, and all activities receiving funding through regional investment strategies reflected the agreed priorities and delivery arrangements for the plan. Results of investment in the regional component of the Natural Heritage Trust and the National Action Plan are reported in the annual reports of the Trust and the annual National Action Plan and Natural Heritage Trust Regional Programs Reports. A monitoring and evaluation strategy is in place for National Action Plan delivery in each state and territory.
National Landcare Program —for payment to NRM special account	2007–08: $8.75 million
Performance measures The extent of engagement of industry and the wider community in NRM at a national scale to encourage adoption of sustainable practices. The extent of strategic direction and support received by the volunteer Landcare movement. Performance In 2007–08, National Landcare Program (NLP) national component expenditure of $8.75 million (2006–07: $11.72 million) provided for: 29 Priority National Projects, including projects to – improve the rangeland management skills and knowledge of land managers, regional groups and Landcare groups – identify and demonstrate new technologies to better handle dairy shed effluent – increase the number of graingrowers using technologies that allow variable application of inputs within and across paddocks – assess the impact on farmers of the Great Artesian Basin Sustainability Initiative – identify the financial and environmental costs and benefits of fire management regimes in different parts of Cape York – develop information packages promoting the use of water recycling for pastures and crops, including appropriate guidelines – research the recovery and use of methane from intensive livestock production – survey the reasons why farmers in South Australia choose to adopt or not adopt conservation farming practices – fund workshops to promote the National Water Quality Management Strategy – prepare a discussion paper on a national soil strategy – understand the impact of regional shifts in climate reliability on farm management – improve the skills and knowledge of local-level Landcare coordinators 51 Natural Resource Innovation Grants, including for – increasing crop productivity through better pollination practices – supply-chain driven environmental performance in the dairy industry – remote monitoring of livestock behaviour for sustainable grazing management – demonstration of a contour-based soil management system for improved water and nutrient use efficiency – sustainable farming systems resilient to climate change 12 Sustainable Industry Initiatives 7 state Landcare coordinator positions 1 National Landcare Facilitator. The Natural Resource Innovation Grants encourage people engaged in farming, food, aquaculture and forest industries to contribute to sustainable production by developing and adopting innovative practices, production techniques, technologies and products. These projects continued in 2007–08. The Sustainable Industry Initiatives program worked in partnership with resource-based industries at the national level to encourage sustainable NRM and promote nationally consistent approaches. The program objective is to enhance the profitability and sustainability of portfolio industries through industry ownership of NRM issues; increased numbers of resource managers and industries adopting NRM, sustainable agricultural practices and industry best management practice; widespread recognition of industry best management practice as sustainable; and greater industry participation in regional planning and activities. The program has enabled the Australian Government to form 21 partnerships with 16 different industry organisations (12 of which continued or began in 2007–08). Project activities fell into three main categories: the development of national NRM strategies, the development of NRM tools, and extension activities. A diverse range of sectors were supported, including dairy, forestry, cotton, horticulture, seafood, wine and grains. Many projects built upon or complemented work conducted through the Natural Heritage Trust’s Environmental Management Systems (EMS) National Pilot Program, the Pathways to Industry EMS Program and the EMS Pathways to Sustainable Agriculture Program. The National Landcare Facilitator Project provided strategic direction and support to the volunteer Landcare movement. The project has improved the communication of Australian Government NRM programs and priorities to the Landcare movement and to national primary industry and community organisations.
National Landcare Program Payments to States	2007–08: $26.78 million
Performance measures The extent of engagement of industry and the wider community in NRM at a regional scale to encourage adoption of sustainable practices. The extent of on-ground actions by community and industry groups that will contribute to learning and behavioural change. Performance In 2007–08, NLP community support component funding of $26.78 million supported 189 projects and 63 community Landcare coordinator positions (2006–07: $25.28 million; 172 projects; 62 Landcare positions). This generated commitments of more than $27 million in cash and in-kind matching contributions from those involved in the projects. Sustainable practices promoted in the projects included: integration of agricultural production and conservation on farms increased adoption of controlled-traffic farming systems and riparian management to reduce run-off and inputs and to improve catchment water quality improved water quality through riparian management best management practice for sustainable agriculture, including improved pasture and grazing management sustainable land management practices in Indigenous communities healthier estuaries through better management by land-based primary producers increased ground cover for salinity abatement and erosion control better NRM on dairy farms, including less nutrient input to waterways, erosion control, off-stream watering points for stock and the management of acid sulfate soil sustainable animal waste reuse and recycling on intensive farms.

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Rural Policy and Innovation

Output 2 integrates policy development and programs to build strong and sustainable rural industries. In 2007–08, the output was delivered mainly by our Rural Policy and Innovation Division, which also managed the Exceptional Circumstances (EC) programs and the Agriculture Advancing Australia (AAA) package to help rural families and businesses adapt to change.

Following the June 2008 restructure of the department, the Agricultural Productivity Division will deliver the innovation component of the output, while the Climate Change Division will manage drought policy and rural adjustment.

Priorities

• Develop policies and programs to build the rural sector’s business management skills and capacity to prepare for exceptional events and fluctuating markets, weather and incomes.
• Assist farm families and small businesses through exceptional circumstances by providing financial support to manage and recover from such events, and refine drought-recovery measures.
• Manage the AAA—Advancing Agricultural Industries initiative to build industry resilience, self-reliance and the capacity of women, young people and Indigenous people.
• Improve the targeting, coordination and adoption of the results of research and development and extension efforts, and ensure that the rural research and development bodies meet the government’s financial and accountability standards.
• Support primary producers, fishers and small rural businesses to manage industry change and adjustment.
• Promote the responsible use of biotechnology in Australian agriculture.

Highlights

• Prepared for the start of the new Australia’s Farming Future package, and wound up AAA programs.
• Incorporated lessons from previous training programs into FarmReady, the Australia’s Farming Future targeted training program.
• Delivered EC programs and other assistance to primary producers and small businesses adversely affected by drought and floods.
• Provided Professional Advice and Planning Grants to 4021 clients.
• Implemented the EC Exit Package from September 2007.
• Managed a record take-up of the Rural Financial Counselling Services program, accessed by more than 14 500 clients in 2007–08.
• Finalised all projects funded through the Targeted Industry Initiative component of the FarmBis program.
• Developed and ran 20 agricultural biotechnology information forums for farmers and the community to inform them of developments in the field.
• Published six reports on the production, marketing and economic effects of GM crops and the value of non-GM biotechnology applications.
• Began development of a national RD&E strategy, and helped to set up the Rural Research and Development Council.

Business management skills

Australia’s uncertain climate, and fluctuating consumer tastes and world markets, mean that our rural industries must be adaptable and flexible, and capable of coping with extremes in production and profitability. The department aims to develop policies and programs that build business management skills and the individual producers’ capacity to plan and prepare for exceptional events and to cope with fluctuating markets and incomes.

Providing business management training and assistance

In 2007–08, the main channel for management training and assistance was the AAA FarmBis program. The national FarmBis program (which operated in New South Wales and Victoria during 2007–08) ceased on 29 February 2008 to make way for the new Australia’s Farming Future initiative announced in the 2008–09 Budget. The joint Commonwealth–state FarmBis program ceased as scheduled on 30 June 2008.

Australia’s Farming Future includes FarmReady, a new targeted training program to help primary producers increase their self-reliance, preparedness and capacity to develop better strategies to adapt to climate change. That program will commence in early 2008–09.

More than 4600 primary producers took part in business management training with the assistance of the FarmBis program, with many individuals attending multiple courses. Total uptake exceeded 9000 training sessions in 2007–08. A survey of participants found that 94% considered the training relevant, 95% gained new skills or knowledge, and 97% were able to incorporate their learning into their business.

Providing Professional Advice and Planning Grants

EC Professional Advice and Planning Grants fund short-term professional advice for farmers in EC-declared areas experiencing serious financial difficulty. The grants help farmers undertake viability assessments and develop drought management plans or business plans that incorporate drought management strategies. Centrelink administers the grants on our behalf.

From September 2007, the government broadened the grant to allow eligible people in all EC-declared areas to access the grant. In 2007–08, Centrelink approved 4021 grant applications and issued vouchers worth $13.68 million (2006–07: 3062 applications, $15.7 million).

Promoting Farm Management Deposits for risk management

The Farm Management Deposits Scheme encourages farmers to adopt a more self-reliant approach to risk management by allowing them to set aside farm income in good years as a cash reserve for low-income years. The income is taxed in the year in which it is withdrawn. The scheme is administered commercially through participating authorised deposit-taking institutions, mainly banks.

At the end of June 2008, 41,355 primary producers held a total of $2.88 billion in the Farm Management Deposits Scheme (compared to the 40,574 holders and $2.79 billion in holdings in June 2007).

Exceptional Circumstances assistance and drought policy

In 2007–08, the department administered EC assistance and reviewed the Australian Government’s drought mitigation policies.

EC assistance included interest rate subsidies, relief payments and exit grants. Centrelink administered EC payments on our behalf, and met all administrative requirements during the year.

Supporting people through severe events

EC assistance is the government’s primary mechanism for providing support to drought-affected farmers and small businesses, including those affected by reduced water allocations. The objective is to help ensure that farmers with good long-term prospects are not forced to leave the land because of short-term adverse events that are beyond their ability to manage. The main forms of assistance are interest rate subsidies and short-term income support. Figure 8 shows the four-year, drought-driven trend in EC assistance.

For a farm business to be eligible for the EC interest rate subsidy, it must be in an EC-declared area and must be otherwise viable. Its difficulties must be due to rare and severe events beyond those that can be managed through normal risk management practices.

During 2007–08, there were 20,915 successful applications (19,756 from farm businesses and 1159 from small businesses) to 20 June, up from 14,198 in 2006–07. Some $695.90 million was expended in 2007–08, compared to $441.26 million in 2006–07.

EC relief payments provide short-term income support to farmers in EC-declared areas. During 2007–08, there were 46,893 successful EC relief payment applications (45,392 from farmers and 1501 from small businesses) and $395 million was expended. At 20 June 2008, there were 24,290 current recipients (2006–07, $259.89 million spent after 26,312 successful applications).

On 25 September 2007 the government announced the EC Exit Package, which is intended to help families who want to cease farming and is funded through to 30 June 2009. The package is available to families with a significant long-term financial and personal investment in farming land in EC-declared areas who are in financial difficulty and who have decided to leave the land. The package will help them make the transition, which might include urban employment, self-employment or other off-farm work.

The package consists of three grants for eligible applicants:

• the exit grant (up to $150,000) when the farm is sold
• professional advice and training (up to $10,000)
• a relocation grant (up to $10,000) when the farm is sold.

Centrelink encouraged farmers to test their eligibility for assistance by submitting an application, rather than self-assess themselves as ineligible. By 30 June 2008, 413 applications had been lodged. Of those:

• 32 exit grants were paid (average of $140,963)
• 100 claims were assessed pending farm sale and a subsequent net assets test
• 192 claims were rejected.

Extreme events are not limited to drought. During 2007–08, Natural Disaster Relief and Recovery Arrangements were activated for various local government areas affected by floodwaters in Queensland and New South Wales.

The outbreak of equine influenza also constituted an emergency requiring a government response. The department assisted people and businesses who relied on horse-dependent commercial activities for most of their income through four measures:

• the Equine Influenza Hardship Fund ($4 million)
• Business Assistance Grants ($76.73 million)
• Commercial Horse Assistance Payments ($179.92 million)
• Non-Government, Not-for-Profit Equestrian Organisation Grants ($0.63 million).

The Equine Workers Hardship Wage Supplement was administered by the Department of Families, Housing, Community Services and Indigenous Affairs.

The government also provided $750,000 to the Australian Sports Commission for the Equestrian Federation of Australia to help the Australian Olympic equestrian team, as the team’s preparations for the Beijing Olympics had been disrupted by the equine influenza outbreak.

Improving drought policy

The government commenced a comprehensive review of drought policy. The review has included climatic, social and economic assessments, which will be completed in 2008–09 and will inform the development of an improved drought policy to better prepare and support farmers as they adapt to climate change.

Agriculture Advancing Australia—Advancing Agricultural Industries

The department has an important role in promoting and helping to build industry and producer resilience and self-reliance, and in increasing the capacity of women, young people and Indigenous people to participate in the agriculture industries.

The Advancing Agricultural Industries program, which began on 1 July 2007, ceased on 30 June 2008 following the change of government. Current projects will continue through to completion, but no further funding calls will be made. Details of new programs are in the ‘Outlook for 2008–09’ section.

In 2007–08:

• funding of $0.19 million enabled the turf and banana industries to undertake Industry Stocktake projects to assess their challenges and opportunities over the short to medium term and set their priorities
• 29 Action Grant projects worth $3.63 million helped industries to address priority issues, such as improving supply-chain coordination and increasing producers’ skills and knowledge
• 38 AgFund (Advancing Agriculture Fund) projects worth $0.96 million gave producer groups the opportunity to address industry issues at the local level
• funding of $1.02 million to the Rural Leadership Development component of the program paid for such initiatives as the Enhancing Entrepreneurial Skills Course, the Young Australian Rural Network (YARN) website, the Women’s Advancement Initiative and the Rural Indigenous Engagement Pilot Program.

In 2007–08, two industries accessed the Industry Stocktake component, 22 industries received Action Grants and 38 producer groups began AgFund projects.

Through Rural Leadership Development initiatives for young people:

• 101 attended the 2007 National Young Farmers Forum (Griffith, NSW, July 2007)
• 35 attended the ABC Heywire Youth Issues Forum (Canberra, February 2008)
• 21 attended the Pathways to Rural Leadership Course (Canberra, August 2007)
• 16 attended the Enhancing Entrepreneurial Skills Course (Melbourne, September 2007).

Seven women’s groups received funding to build the leadership skills of women in primary industries, and three Rural Indigenous Engagement Pilot Program projects to increase Indigenous people’s involvement in agriculture, fisheries and forestry industries began.

Rural research, development and extension

Widespread take-up of innovation is the key to rural industries’ competitiveness and sustainability. In 2007–08, the department worked with the research and development corporations and companies (RDCs) to improve the targeting, coordination and adoption of the results of the portfolio’s research, development and extension (RD&E) efforts.

The new four-year Australia’s Farming Future package includes the Climate Change Research Program, which is designed to help primary producers reduce their greenhouse gas pollution and adapt and respond to the impacts of climate change.

Investment by RDCs in research and development projects is expected to be around $500 million in 2007–08 ($525 million in 2006–07). Despite significant pressures on levy revenues from the impacts of the drought, RDCs have sought to maintain R&D expenditure through drawdowns of reserves and adjustments to projects.

This expenditure aligns with the government’s national and rural R&D priorities, particularly for productivity and adding value, natural resource management and increasing skills and technology adoption.

Increasing collaboration and cooperation

We have been working with state and territory authorities, the CSIRO and the RDCs to accelerate the development of a national RD&E strategy. A Rural Research and Development Council is being established to advise the minister on ways to improve the effectiveness of investment in RD&E. The terms of reference and operating arrangements were agreed in June 2008, and membership of the council is expected to be finalised early in 2008–09.

The Climate Change Research Strategy for Primary Industries was a major focus of collaborative efforts by all the RDCs, the CSIRO, and the Australian and state and territory governments during 2007–08. The first stage of the strategy involved analysis, by a steering committee made up of stakeholders, of the current research and development effort for climate change mitigation and adaptation in rural industries. The analysis will guide future collaborative investments in this area.

Increasing productivity and investment returns

In 2006–07, the Council of Rural RDC Chairs approved a framework for evaluating the impacts of RDC research and development investments. In 2007–08, the council undertook the first round of a three-year program to evaluate the overall impacts of the investments. We expect detailed results of the first round to be released in the first quarter of 2008–09.

Supporting families through change

The department supports farmers, fishers, foresters and small rural businesses to manage industry change and adjustment. In 2007–08, we did this mainly through Farm Help and the Rural Financial Counselling Service and, when necessary, by making re-establishment grants available.

In 2008–09, the Climate Change Adjustment Program and Transitional Income Support components of the Australia’s Farming Future initiative will be the main channels for this support.

Implementing Farm Help

The Farm Help program concluded on 30 June 2008, although agreed financial assistance will continue to be provided to participants until 30 June 2009, when all Farm Help payments will cease.

Farm Help, which was administered on our behalf by Centrelink, supported farming families in severe financial difficulties who were unlikely to obtain a loan from a financial institution. Farm Help also offered income support and professional advice to develop a Pathways Plan to improve the farm’s financial position or to gain skills to obtain off-farm income or move out of farming. Re-establishment grants were available for eligible farmers who decided to leave the industry.

Under the program, up to 30 June 2008, 568 advice and training sessions were conducted (2006–07: 437 sessions). Twenty-five Farm Help income support applications were approved and 15 customers chose to take a re-establishment grant and leave farming, compared to 53 in 2006–07.

The fourth iteration of a five-year longitudinal study of the program showed that the Pathways Plan approach encouraged farmers to think about their options and the actions needed to improve their financial viability. Farmers who continued with a planning approach afterwards were likely to do better financially over the medium to longer term than farmers who did not. This study also found that one-third of respondents who had prepared a Pathways Plan were in a better financial position than the year before.

Providing the Rural Financial Counselling Service

The Rural Financial Counselling Service program was funded under the AAA suite of programs in 2007–08. The service now operates as a stand-alone program.

The Office of Rural Financial Counselling sought applicants to deliver rural financial counselling services for the 2008–11 funding period through a competitive grants process advertised in all states in September 2007. Successful applicants were announced in June 2008, and began offering rural financial counselling services from 1 July 2008. There are now 14 service providers across Australia employing more than 110 rural financial counsellors. Figure 9 shows client take-up over the life of the program—the rising trend is due to the effects of drought and clients’ need for assistance to manage it.

Because of the continuing impact of record low rainfall and reduced water allocations on farmers and small rural businesses, particularly in the southern Murray–Darling Basin, the Australian Government announced in September 2007 that an additional $5.24 million over three years to June 2010 would be provided to the Rural Financial Counselling Service program. This funding was part of a broader package of enhanced drought assistance measures announced by the government.

In January 2008, much of Queensland and northern New South Wales experienced severe floods, causing extensive stock and property losses and long-term negative effects on fisheries. Additional rural financial counsellors were deployed to these regions to help people manage the financial impacts, such as loss of income and inability to service debt. Counsellors also assisted clients to access disaster response grants.

Agricultural biotechnology

The department recognises that the full potential of biotechnology will only be realised if rural industries and individual producers and consumers, in domestic and international markets, appreciate the technology’s scientific underpinnings and benefits, and have confidence in the regulation and management of genetically modified (GM) crops and products.

The May 2008 meeting of the Biotechnology Ministerial Council affirmed the Australian Government’s position that GM crops and food should be approved only if they are safe for human health and the environment, and that it supports the existing national framework for management and regulation of GM crops and food.

Promoting responsible biotechnology use and awareness

To inform producers and consumers about new biotechnologies, the department released six reports commissioned under the National Biotechnology Strategy during 2007–08:

• A path to market for genetically modified canola
• GM canola: an information package
• The value of biotechnology applications to Australian agriculture
• Economic impacts of GM crops in Australia
• GM oilseed crops and the Australian oilseed industry
• GM crops in emerging economies: impacts on Australian agriculture.

A further six reports are scheduled for release in the second half of 2008.

Reports we had previously commissioned under the current phase of the National Biotechnology Strategy (2004–08) provided valuable input into the independent reviews of the moratorium arrangements for GM crops by New South Wales, Victoria and South Australia in 2007. Across Australia, 20 agricultural biotechnology information forums (involving domestic and international experts and attended by 745 people) informed farmers and the general community about the production and use of GM crops.

Our Biotechnology Policy Section collaborated with the Innovation, Industry, Science and Research portfolio to prepare a range of publications, including Agricultural biotechnology developments—past: present: future, which was released at the BIO ’08 conference in San Diego, California.

We also contributed to the development of the Industrial Biotechnology Strategy (endorsed by the Biotechnology Ministerial Council in September 2007), and we are working with the Biotechnology Statistical Users Group to develop a process for collecting biotechnology statistics.

Improving regulation and management

The department helped to develop the National Co-existence Framework for Genetically Modified Crops for the Primary Industries Ministerial Council meeting in April 2008. The framework is necessary to ensure a consistent approach to dealing with GM issues in the agri-food supply chain, especially in relation to meeting customer requirements.

The department and the Office of the Gene Technology Regulator also collaborated on an incident response plan to deal with the possibility of unapproved GM events, such as GM contamination in imported seed or grain, and their impact on local food supply chains. When the plan is finalised in 2008–09, it will be provided to the Primary Industries Ministerial Council for endorsement.

Maintaining and improving access to export markets

To maintain and improve access to export markets, the department contributed to Australia’s participation in various international meetings on biotechnology, including:

• the fourth Meeting of the Parties to the Cartagena Protocol on Biosafety
• the APEC High Level Policy Dialogue on Agricultural Biotechnology
• the eleventh Research, Development and Extension on Biotechnology workshop
• the Australia – United States Free Trade Agreement Committee on Agriculture
• the Codex Alimentarius Committee on Methods of Analysis and Sampling
• the OECD Working Party on Biotechnology.

We are also part of the organising committee for the fourth International Conference on Co-existence between GM and non-GM Based Agricultural Supply Chains (GMCC-09) being organised for Melbourne in November 2009.

Outlook for 2008–09

Agriculture Advancing Australia programs such as Farm Help concluded at the end of 2007–08, and have been replaced by Australia’s Farming Future, a $130 million initiative to assist primary producers who are or are likely to be adversely affected by climate change. The new package includes:

• a targeted training program (Farm Ready) to help primary producers develop better strategies to adapt to climate change
• the Climate Change Adjustment Program, which provides primary producers with grants of up to $5,500 for financial assessments, professional advice and planning, and up to $150 000 for eligible applicants who sell their farm enterprise and leave farming
• the Transitional Income Support Program, which provides short-term (up to 12 months) income support to farm families in financial difficulty due to drought.

The department will draw together findings from three assessments to inform a national review of drought policy. The drought policy review includes climatic, social and economic assessments initiated by the minister. We will provide secretariat support for parts of the review and the public consultation. The review’s findings will inform an improved drought policy.

We expect industry innovation to gain from the establishment of the Rural R&D Council early in 2008–09. The council will develop the National Strategic Rural R&D Investment Plan, and be an important source of advice to the minister on the government’s investment in rural R&D.

The department will participate in the development of a whole-of-government white paper response to the Review of the National Innovation System (the Cutler review), to be completed by the end of 2008. We will also continue to work closely with the states and territories, the RDCs, the CSIRO, the Bureau of Meteorology and industry to develop and implement the national Research, Development and Extension Framework.

The Rural Financial Counselling Service program will increase its focus on supporting clients facing severe financial difficulty to manage necessary adjustments. From July 2008, rural financial counsellors are using case management to support clients, including those likely to be exposed to the impact of climate change. Case management assistance by a rural financial counsellor, including quarterly meetings, will also be mandatory for clients receiving Transitional Income Support, and for the most financially vulnerable clients accessing professional advice and training grants.

Table 5
Output 2 performance, 2007–08
Output 2 objective To promote a self‑reliant, profitable, competitive and sustainable business environment through the development of integrated policies and programs in the areas of skills development, support for farm families in adverse circumstances, research and development and innovation, biotechnology and rural industry leadership.
Output component: High-quality policy advice on rural policy and innovation issues
Performance measure The level of satisfaction of ministers and the parliamentary secretary with the quality and timeliness of policy advice as measured by written feedback received. Performance The offices of the previous Minister for Agriculture, Fisheries and Forestry, the previous Minister for Fisheries, Forestry and Conservation and the current Minister for Agriculture, Fisheries and Forestry recorded satisfaction with our advice on a range of rural policy and innovation issues. Among other subjects, our advice covered: drought programs drought policy reform the finalisation of Agriculture Advancing Australia programs the Rural Financial Counselling Service farm management deposits agricultural biotechnology, including genetically modified crops the national Rural Research and Development Priorities amendments to the Primary Industries and Energy Research and Development Act 1989 changes to taxation arrangements for non‑forestry managed investment schemes.
Output component: Effective administration of rural policy and innovation programs
Performance measures The delivery of programs and services in accordance with the relevant agreement/memorandum of understanding, program guidelines and government prudential requirements. Client awareness of programs and their purpose, as measured by client feedback data. Performance All programs and services were delivered in accordance with relevant agreements, memorandums of understanding, program guidelines and government prudential requirements. See Table 6, Output 2 administered items, for measurements of client awareness of specific programs. Administered items Nineteen administered items contributed to Output 2. See Table 6 for performance reporting on individual items.

Table 6	Output 2 administered items, 2007–08
Australian Meat and Live-Stock Industry Act 1997	2007–08: $760.17 million
Australian Wine and Brandy Corporation Act 1980 Dairy Produce Act 1986 Egg Industry Service Provision Act 2002 Financial Management and Accountability Act 1997, s. 28(2) Forestry Marketing and Research and Development Services Act 2007 Horticulture Marketing and Research and Development Services Act 2000 Plant Health Australia (Plant Industries) Funding Act 2002 Pig Industry Act 2001 Primary Industries and Energy Research and Development Act 1989 Cotton Research and Development Corporation (RDC); Fisheries RDC; Forest and Wood Products RDC; Grains RDC; Grape and Wine RDC; Rural Industries RDC; and Sugar RDC. Wheat Marketing Act 1989 Wool Services Privatisation Act 2000
Note: The Forest and Wood Products RDC ceased to operate from September 2007 and was replaced by Forest and Wood Products Australia (under the Forestry Marketing and Research and Development Services Act 2007)
Performance measure The efficient and effective delivery and adoption of research and development that improves sustainability and productivity of primary industries. Performance In 2006–07 the Council of Rural RDC Chairs approved a framework for evaluation of the impacts of RDC research and development investments. In 2007–08 the council undertook the first round of a three‑year program of evaluation of the overall impacts of those investments. Detailed results of this first round are expected to be released in the first quarter of 2008–09. Initial assessments of a number of projects indicate positive returns. RDC compliance with legislative and funding contract requirements continued to be high in 2007–08.
Agriculture Advancing Australia—FarmBis	2007–08: $10.55 million
Performance measures The level of awareness of FarmBis amongst potential participants. Participants’ level of satisfaction with the service of FarmBis staff, training providers and course content. The proportion of participants indicating training was relevant, met their expectations and enabled them to acquire new skills, and who have incorporated course outcomes/new skills into their business and natural resource management practices. Performance The level of awareness of the FarmBis program among potential participants was most recently measured through the National Farm Survey conducted by ABARE in October 2006. The survey revealed that 81% of potential participants were aware of the FarmBis program. Participants’ satisfaction with the FarmBis program is measured by the FarmBis Participant Survey (most recently conducted in November 2006) and through analysis of data from the FarmBis national database (updated quarterly, most recently 31 March 2008). Available data show that satisfaction with course content was 93%, and satisfaction with training providers was 94%. Satisfaction with the services of FarmBis staff was measured through the FarmBis Participant Survey, which indicated that 85% of participants surveyed were satisfied with FarmBis staff. Training was seen as relevant by 94% of participants, and met the expectations of 77%. Of those surveyed, 95% gained new skills or knowledge and 97% were able to incorporate their learning into their business. This program ceased on 30 June 2008.
Agriculture Advancing Australia—Farm Help	2007–08: $2.79 million
Performance measures Short-term financial assistance and training provided to farmers experiencing financial difficulty. The extent that farm families examine their options for the future and take action to improve their future financial prospects, either on or off the farm. Performance During 2007–08, 25 applicants were granted Farm Help Income Support, 568 advice and training sessions were attended, and 15 customers chose to take a re‑establishment grant and leave farming. Training sessions have increased since 2006–07 (when 437 sessions took place) and the number of customers, including the number of re‑establishment grants, has decreased (2006–07: 53 grants). Monthly management information reports from Centrelink indicate program uptake and trends, and exit surveys provide feedback on program effectiveness. A mid‑term review of the program and a five‑year longitudinal study of exiting participants contributed to changes in the program. The fourth wave of the longitudinal study, completed in October 2007, compares Farm Help to Exceptional Circumstances (EC) Relief Payments and EC Income Support and also examines the effectiveness of Farm Help in assisting farmers to improve their financial outlook. Results from the fourth wave of the longitudinal study were consistent with the results of previous years, and also emphasised the value of Pathways Planning. The program’s ‘pathways planning’ approach effectively encourages farmers to think about future options and actions needed to improve their financial viability. Farmers who continue with a planning approach after exiting the program are likely to experience better financial outcomes over the medium to longer term than farmers who do not. The fourth wave of the longitudinal study found that one‑third of respondents who had prepared a pathways plan were in a better financial position than the year before. The Farm Help experience led many farmers (up to 61%) to obtain further professional advice at their own expense to better secure their financial and farming futures. Up to a third undertook further study or training after exiting the program—a much higher proportion than among the general adult population. Of those who took re‑establishment grants, 88% agreed that the grant had helped them to adjust to life off the farm, and 85% said that leaving their farm had been a positive change in their life. This program ceased on 30 June 2008.
Agriculture Advancing Australia— Advancing Agricultural Industries Program	2007–08: $5.19 million
Performance measures The number of industry partnership projects initiated and the level of participation of the target client group. The level of participants’ (industries and individuals) satisfaction with the program approach and delivery. The number of people participating in initiatives under the Pathways for Participation Strategy. Performance To date, 43 industries and over 800 people have received support through the Industry Stocktakes, Action Grants, AgFund and Rural Leadership Development components of the Advancing Agricultural Industries Program and its predecessor the Industry Partnerships Program. Pathways for Participation projects involved participation by 173 young people, and seven women’s groups received funding. Other work in 2007–08 included: 29 Action Grant projects assisted industries to address priority issues such as improving supply chain coordination and increasing producers’ skills and knowledge. 38 AgFund projects provided producer groups with the opportunity to address industry issues at the local level. 2 industries (turf and banana) undertook Industry Stocktake projects to assess their challenges and opportunities over the short to medium term and to set their priorities. Initiatives within the Rural Leadership Development component to build the skills, networks and influence of women, young people and Indigenous people in primary industries were undertaken. These included the Enhancing Entrepreneurial Skills Course, the Young Australian Rural Network (YARN) website, the Women’s Advancement Initiative and the Rural Indigenous Engagement Pilot Program. Satisfaction with the program was gauged by surveys of participants: Of the 105 people who attended the National Young Farmers Forum, 89 completed evaluation forms; 92% of those felt the forum met or exceeded their expectations; 96% said they were very likely to get more involved in their industry as a result of the forum or would try to do so; and 98% believed the forum had been valuable or very valuable and was worth holding again in the future. Of the 20 participants in the Young Rural Leadership Course, 18 completed a six‑month post‑program survey in which they indicated a 10.4% increase in knowledge and skill acquisition across all areas of the course, including key national and global issues affecting industry. All 16 participants in the Enhancing Entrepreneurial Skills Course completed post‑course questionnaires, which ranked statements on a scale from 1 (strongly disagree) to 5 (strongly agree). On a range of statements about reaching their own and the department’s objectives, the lowest average score was 3.9 and the highest was 4.69. The statement that they had achieved their primary objective in attending the course scored an average of 4.25. This program ceased on 30 June 2008.
Agriculture Advancing Australia—Rural Financial Counselling Service	2007–08: $13.45 million
Performance measures The level of awareness of the program amongst potential recipients. The number of clients assisted. The number of referrals to other services. The level of client satisfaction with responsiveness and mobility of enhanced service delivery arrangements. The number of clients making change or adjustment. Performance In 2007–08, 14,523 clients used Rural Financial Counselling Services funded under the program (up from 12,183 in 2006–07), and 10,319 were referred to other services (up from 5,234 the previous year). Client awareness of and satisfaction with the program have previously been measured through ABARE’s National Farm Survey, which collected information on the awareness and uptake of the main elements of the Agriculture Advancing Australia (AAA) package. As the AAA package was to be wound up in 2008, ABARE did not conduct the survey in 2007. The Office of Rural Financial Counselling planned to conduct a survey of client satisfaction in 2007 with the assistance of ABARE. However, the survey was postponed to reconsider its methodology and objectives in the light of the government’s new climate change adaptation and adjustment programs. The office will now call for tenders in December 2008 for a revised survey to be conducted in early 2009. Full‑year data on the number of clients making changes or adjustments are not yet available from the Australian Rural Counselling database, which is managed by the Office of Rural Financial Counselling. However, the office is enhancing and updating the database to allow rural financial counsellors to record clients’ change or adjustment outcomes more accurately. These changes are scheduled to be completed by late 2008. Data on this performance indicator will become available in 2009.
Exceptional Circumstances	2007–08: $695.90 million
Performance measure The number of long‑term viable farm and agriculturally dependent small businesses assisted by Exceptional Circumstances interest rate subsidies and relief payments. Performance The EC interest rate subsidy provides short‑term assistance to otherwise viable farm businesses experiencing financial difficulties in EC‑declared areas. For a business to be eligible for assistance, its difficulties must be due to rare and severe events beyond those that can be managed through normal risk management practices. During 2007–08, there were 20,915 successful applications to 20 June 2008 (19,756 farm businesses and 1,159 small businesses), up from 14,198 in 2006–07. $695.9 million was spent in 2007–08, compared to $441.26 million in 2006–07.
Farm Household Support Act 1992 (Exceptional Circumstances Relief Payment)	2007–08: $395.00 million
Performance measure The number of farm families and agriculturally dependent small businesses experiencing severe financial difficulties in Exceptional Circumstances declared areas receiving welfare support. Performance EC relief payments provide short‑term targeted drought assistance to farmers and small businesses in EC‑declared areas. During 2007–08, there were 46,893 successful EC Relief Payment applications (45,392 for farmers and 1501 for small businesses to 20 June) up from 26 312 in 2006–07. Payments totalled $395 million (2006–07: $259.89 million). Centrelink delivered EC relief payments in accordance with relevant guidelines and a memorandum of understanding with the department. All administrative requirements were met.
Drought Assistance—Professional Advice	2007–08: $6.24 million
Performance measure Short-term professional advice provided to farmers experiencing serious financial difficulty. Performance From September 2007, the department broadened the Professional Advice and Planning Grant by removing the three‑year EC declaration criterion. This allowed eligible recipients in all EC-declared areas to access the grant. The grant helps farmers undertake viability assessments and develop drought management plans or business plans that incorporate drought management strategies. Centrelink administers the grant on the department’s behalf. In 2007–08, Centrelink approved 4021 grant applications and issued vouchers worth $13.69 million (2006–07: 3062 applications, $15.7 million).
Interim Income Support Payments	2007–08: $7.85 million
Performance measure Number of farm families and agriculturally dependent small businesses experiencing severe financial difficulties in prima facie areas receiving welfare support. Performance Interim Income Support (IIS) has been part of the standard Exceptional Circumstances (EC) assistance measures since 2002. IIS is available where a prima facie case for an EC declaration has been demonstrated. In November 2006, as part of extensions to EC assistance more broadly, support was extended to people carrying on agriculture-dependent small businesses. In September 2007, it was extended to a wider range of small businesses. At that time, 14 areas were also declared as interim assistance areas. IIS in those areas ceases after 12 months unless the relevant state or territory government lodges an application for an EC declaration. In 2007–08, there were 1351 successful applications for Interim Income Support and $6.92 million was spent (2006–07: 2289 applications, $11.63 million). At 20 June 2008, 263 people were IIS recipients.
FedLink Supplementation for Rural Industry Research and Development Corporation (RIRDC)	2007–08: $0.08 million
Performance measure Payment to RIRDC to allow implementation of FedLink access. Performance RIRDC was paid its supplemental funding allocation on time. The payment enabled RIRDC to work on connecting to the FedLink network to improve the corporation’s financial accountability.
Fisheries Administration Act 1991—Special Appropriation	2007–08: $8.79 million
Performance measure The Australian Fisheries Management Authority demonstrates good stewardship of Commonwealth fisheries by compliance with the objectives of the Fisheries Management Act 1991. Performance The Australian Fisheries Management Authority met the government’s financial and accountability requirements during 2007–08.
Land and Water Resources R&D Corporation	2007–08: $13.02 million
Performance measure The efficient and effective delivery and adoption of research and development that improves sustainability and productivity of primary industries. Performance Land & Water Australia’s annual reports provide information on performance against indicators and the National and Rural Research and Development Priorities. However, it is not yet possible to quantify the benefits of R&D investment, particularly in the aggregate. Work to develop an effective performance reporting framework is continuing. Land & Water Australia met the government’s financial and accountability requirements during 2007–08.
Regional Assistance	2007–08: $0.13 million
Performance measure Enhanced long‑term viability and sustainability of regional farming communities. Performance WEST 2000 Plus is a structural adjustment program in the Western Division of New South Wales, jointly funded by the Australian and New South Wales governments since 2001. The aim is to help Western Division landholders to improve their business and management skills, develop alternative industries and better manage the natural resource base. Most activities in the program were completed by 30 June 2005, but support for longer term aspects of the program, such as enterprise-based conservation (EBC) measures, will continue until December 2012. A final payment of $0.22 million of Australian Government funding was made in June 2008. As part of this program, financial support was provided to landholders to improve their management of the natural resource base through the EBC project. Ten landholders involved in the EBC program managed approximately 70 000 hectares for conservation. Grants were also provided for property build‑up, which allows adjustments for landholders who have been able to leave the industry and for those who have used program funds to expand their farm business enterprise.
Rural Industries Research and Development Corporation (RIRDC) (Bill 1)	2007–08: $13.33 million
Performance measure The efficient and effective delivery and adoption of research and development that improves sustainability and productivity of primary industries. Performance RIRDC met the government’s financial and accountability requirements during 2007–08. Investment in the government’s National and Rural Research and Development Priorities continued, with a focus on productivity improvement and skills development in new and established rural industries and research on national rural issues, including climate change and variability. RIRDC reports on its achievements in research delivery and adoption in its annual reports.
Drought Assistance—Murray Darling Basin Grants to Irrigators	2007–08: $144.31 million
Performance measure/s Grants paid to irrigators in accordance with policy guidelines to assist them to manage reduced water allocations. Performance In 2007–08, 8191 irrigators received grant payments in accordance with policy guidelines.
Drought Assistance—Re-establishment Assistance	2007–08: $4.58 million
Performance measures Financial assistance provided to assist farmers in financial difficulty to re‑establish outside the farming industry. The extent that farm families can gain the training and assistance required to establish effectively in off‑farm positions. Performance This package is aimed primarily at farmers in Exceptional Circumstances (EC) areas. Between the program’s inception (29 September 2007) and 30 June 2008, 28 EC Exit grants were paid. There were 368 applicants. Four Relocation grants and 68 Advice and Training grants were approved, although no vouchers had yet been presented for reimbursement by 30 June 2008.
Drought Assistance—Technical Information Workshop	2007–08: $6.06 million
Performance measure Delivery of Irrigation Industry Workshop Program is in accordance with deeds of funding. Performance More than 3700 farmers, growers and service providers have benefited from advice provided through the program, which was delivered in accordance with the deeds of funding. In 2007–08, the funds were allocated to industry groups as follows: Cotton: $0.83 million Dairy: $1.08 million Wine: $1.36 million Horticulture: $3.37 million Rice: $0.76 million.
Drought Assistance—Communication Strategy	2007–08: $ nil
In February 2008, the government identified the 2008–09 funding for this program as a savings measure. This included the Drought Communication Strategy, to the value of $3 million for 2007–08.
Equine Influenza Emergency Assistance Package	2007–08: $261.46 million
Performance measures No formal performance measures were developed for the equine influenza emergency assistance measures, as the program was an emergency response to the disease outbreak. Performance The equine influenza assistance emergency measures, which have now ceased, assisted individuals and businesses that derived most of their income from horse-dependent commercial activities to cope with the immediate impacts of equine influenza. The department administered four measures: the Equine Influenza Hardship Fund ($4 million) the Business Assistance Grant ($76.73million) the Commercial Horse Assistance Payment ($179.92 million) Non‑Government, Not‑for-Profit Equestrian Organisation Grants ($0.63 million). The department also provided $750,000 to the Australian Sports Commission for the Equestrian Federation of Australia to help the Australian Olympic equestrian team’s preparation for the Beijing Olympics. The team’s work had been adversely affected by the outbreak in Australia. The Equine Workers Hardship Wage Supplement was administered by the Department of Families, Housing, Community Services and Indigenous Affairs.

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Industry Development

Output 3 focuses on individual rural industries and downstream activities, and in 2007–08 was delivered mainly by the department’s Food and Agriculture Division and Fisheries and Forestry Division. In 2008–09, most of the industry activities will be handled by the Agricultural Productivity Division, apart from forestry (Climate Change Division) and fishing (Trade and Market Access and Sustainable Resource Management divisions).

Priorities

• For the rural industries, implement new wheat marketing arrangements, finalise the Sugar Industry Reform Program, develop the horticulture industry strategic plan, and wind up the Dairy Industry Adjustment Package.
• For the food industry, encourage innovation, pursue Australian interests in international standards, improve food health and safety regulation and oversee the Australian Grown labelling initiative.
• For the forestry industry, review regional forest agreements and forest policies, advance work under the Tasmanian Community Forest Agreement, promote the Australian Forest Standards, help to establish Forest and Wood Products Australia, reduce the volume of illegally sourced forest products in the market, and implement the National Indigenous Forestry Strategy.
• For fisheries, improve policy for managing Commonwealth and Torres Strait fisheries, complete the Securing our Fishing Future package, work with the Australian Fisheries Management Authority (AFMA) to minimise overfishing, implement the outcomes of the Uhrig review of AFMA, and develop controls on illegal fishing.

Highlights

• Established new export wheat marketing arrangements.
• Completed all major activities of the Sugar Industry Reform Program.
• Completed all Australian Vegetable Industry Development Group projects on time.
• Developed two targeted programs to help Murray–Darling Basin irrigators.
• Finalised arrangements to wind up the Dairy Industry Adjustment Package.
• Pursued Australian objectives in international food standard-setting bodies
• Promoted the Australian Grown labelling scheme.
• Promoted Australia’s sustainable forest arrangement credentials, including the new Australian Forestry Standard, to export customers.
• Further reduced illegal foreign fishing in Australia’s northern waters.
• Released the Commonwealth Fisheries Harvest Strategy policy and guidelines.
• Completed final funding rounds for the Securing our Fishing Future structural adjustment package.
• Completed buyback of Torres Strait finfish fishery.
• Assisted the conversion of AFMA to a commission governance structure.

Rural industries

Our work for Australia’s rural industries included the introduction of new programs for irrigators, the successful management of various structural adjustment programs, and the development of new industry structures and codes of practice.

Wheat

The new government’s wheat marketing policy was implemented, and came into effect on 1 July 2008 after the necessary legislation passed through parliament. Wheat Exports Australia will administer an accreditation scheme to control the export of wheat in bulk. Companies wanting to export bulk wheat must meet strict probity and performance tests to gain accreditation.

The department was responsible for the development of the legislation and coordinated extensive consultations, which included public comment on an exposure draft of the legislation and liaison with government and industry stakeholders on the proposed changes. We also assisted the then Export Wheat Commission with the development of the Wheat Export Accreditation Scheme, so that the scheme could be operational as soon as Wheat Exports Australia was established.

The department also provided secretariat support to the Industry Expert Group established by the government to advise on wheat industry development functions.

Murray–Darling Basin irrigated industries

The government gave the department responsibility for the delivery of targeted programs, announced in September 2007, to help Murray–Darling Basin irrigators plan for and manage reduced water availability:

• We developed the Murray–Darling Basin Irrigation Management Grants Program, under which assistance is available to help irrigators respond to temporarily reduced water allocations and improve on-farm practices to maximise production from the available water. The first grants were paid in November 2007. By the end of June 2008, 7699 grants and expenditure of $142.38 million had been approved.
• We also developed the Irrigation Industries Workshop Program. In November 2007, the department signed deeds of funding for the cotton, rice, horticulture, wine and dairy industries worth $6.73 million, and by the end of June 2008 more than 3700 farmers, growers and service providers had participated in information sessions or received information packages.

Funding arrangements for both programs will conclude by 30 June 2009.

Sugar

All elements of the Sugar Industry Reform Program 2004 have been completed. A small number of projects under the Regional and Community Projects component are yet to be finalised because flooding in some areas prevented work being completed on time. Those projects will be completed by the end of 2008.

The Industry Oversight Group has completed its evaluation of the program’s contribution to industry sustainability and reform, and the evaluation is now under review by the government. The Bureau of Rural Sciences will undertake a further study of the program and is due to report towards the end of 2008.

Horticulture

We provided input and secretariat support to the Horticulture Code Committee, which advises the government on the operation of the Horticulture Code of Conduct. The Australian Competition and Consumer Commission, which is responsible for enforcing the code, accepted court enforceable undertakings from five Western Australian fruit traders who acknowledged breaches of the code. Those traders are legally required to prepare and publish code-compliant terms of trade.

The Accord Group is contracted to work as the Horticulture Mediation Adviser and provide mediation services to help growers and wholesalers resolve disagreements. In 2007–08, the mediation adviser received 15 inquiries and three applications for mediation. Two mediations were begun; in the third case, the respondent went into liquidation. The department plays no role in the management of mediation, as the Accord Group is under contract to provide an arm’s length mediation service.

Departmental officers participated in the leadership group to develop a horticultural industry strategic plan, which will be completed during 2008–09. Six industry workshops focused on priority areas within the plan.

All seven foundation projects under the Australian Vegetable Industry Development Group were delivered by the 30 June 2008 deadline. Among other outputs, the projects produced a domestic marketing strategy, an industry benchmarking tool, a people development strategy and tools, a value chain analysis, a comparative analysis of Australia’s and China’s vegetable industries, and a survey of the financial performance of Australian vegetable growers. Documents developed by the group are available at its website (www.avidgroup.net.au).

Dairy

The department continued to work closely with the Dairy Adjustment Authority (DAA) and Dairy Australia Limited (which receives the industry levy as the trustee of the Dairy Structural Adjustment Fund) on arrangements for terminating the levy and winding up the Dairy Industry Adjustment Package. The DAA’s independent internal auditor found the transition process to be timely and comprehensive.

The final quarterly payment to eligible dairy farmers was made in April 2008. We are working to finalise wind-up arrangements in 2009. As part of the process, the secretary of the department became the sole member of the DAA from 1 July 2008 until its dissolution, after which the department will be responsible for residual DAA activities, such as maintaining records and making payments to deceased estates.

Amendments to the Dairy Produce Act 1986 to terminate the Dairy Adjustment Levy and the DAA are expected to be introduced in the 2008 spring session of parliament.

The department’s administration of dairy quotas for the European Union and the Unites States was reviewed by an independent panel. The panel provided its report to the government on 6 June 2008.

Food

Funding for the National Food Industry Strategy, including the Food Innovation Grants program and the Australian Food Industry Advisory Council, was redirected to other priorities, such as the new Regional Food Producers Innovation and Productivity Program, in 2007–08.

Table 8, Output 3 administered items, 2007–08, details the achievement of performance measures for the terminated programs.

International standards

In 2007–08, the department continued to pursue Australian objectives in international food standard-setting bodies, particularly the Codex Alimentarius Commission (Codex). We represented Australia on Codex committees, including those for fresh fruit and vegetables; food additives; food labelling; food hygiene; food import and export inspection and certification systems; quick frozen foods; and nutrition and foods for special dietary uses.

We consulted widely with industry to understand its needs and to get its input into Australia’s negotiating positions in Codex. By working to ensure that international food standards are science based, aligned with Australian domestic standards and industry practices and not trade restrictive, we helped to improve the international competitiveness and market access of Australia’s food industries.

Highlights included:

• negotiation of an international code of practice for the handling of quick frozen foods
• work to remove potentially trade-restrictive provisions from draft Codex standards for horticulture products, including fresh fruits and vegetables
• work with Codex Australia to raise awareness of Codex standards in the Australian industry, and participating in the Codex Australia Industry Stakeholder Forum to discuss Australia’s strategic interests in Codex and find ways to improve industry input into the Codex process.

Domestic standards

The department took part in Food Standards Australia New Zealand advisory committees developing standards for nutrition, health and related claims, and the primary production and processing (PPP) requirements for poultry meat and eggs. Standards for the mandatory fortification of folic acid and PPP requirements for seafood and dairy were finalised. We chaired the PPP Working Group, which continued work with the states and territories to promote consistent implementation of PPP standards. The working group considered potential amendments to the Food Regulation Agreement and the Model Food Provisions to achieve that aim.

We also participated in Food Regulation Standing Committee working groups on ‘front of pack’ labelling claims, addition of substances other than vitamins and minerals, and strategic planning. The Australia New Zealand Food Regulation Ministerial Council endorsed the policy guideline developed by the working group on substance additions and the strategic statement developed by the strategic planning working group. The ministerial council will consider the Front of Pack Working Group report in October 2008.

We collaborated with the Department of Health and Ageing and the Australian Food and Grocery Council to fund and develop the National Children’s Nutrition and Physical Activity Survey. Interviewing was completed in August 2007. The final report, which will be released jointly by the department and the Department of Health and Ageing later in 2008, will contribute to strategies to promote good nutrition and physical activity and combat childhood obesity.

Australian Grown labelling

The Australian Grown labelling initiative, administered by Australian Made Campaign Limited (AMCL), was launched in June 2007. This initiative incorporates ‘Australian Grown’ into the distinctive Australian Made logo, which has been in the marketplace for 22 years and is recognised by 98% of Australian consumers. The Australian Competition and Consumer Commission approved rules for the use of the label in May 2007.

AMCL ran an extensive marketing campaign in 2007–08 to promote Australian Grown, including print, television, radio and outdoor advertising and public relations events. The label was also incorporated into AMCL’s export promotion strategy, including major food and beverage trade shows in the United States.

While the scheme is voluntary and based on the user-pays principle, the department provided seed funding of $890,000 to AMCL during 2007–08 for administration and promotion. Our funding for the scheme ceased on 30 June 2008. We will continue to monitor industry uptake and consumer receptiveness during 2008–09.

Forestry

The department’s work for forestry industries focused on domestic policy and regional forest agreements and on protecting international markets for Australian forest products.

Forest policy

The National Forest Policy Statement, which was signed in December 1992, provides a strong basis for Australia’s forest policies. To highlight policy and other developments, the Bureau of Rural Sciences published The changing face of Australia’s forests—a summary of major changes in Australia’s forests since 1992.

The report noted that:

• around 13.6 million hectares of forest has been added to the nature conservation reserve network since 1990
• the area of public native forests available for timber production has declined
• the area of Australia’s plantations has expanded, to over 1.8 million hectares in 2006.

Regional forest agreements

During the year, the department prepared to begin reviews of the Victorian and New South Wales regional forest agreements (RFAs), and made progress on preparing the initial report for the Western Australian RFA review.

The second five-yearly review of the implementation of the Tasmanian RFA was completed, and the report of the independent reviews was tabled in parliament in June 2008. The independent reviewer noted that there has been significant progress in implementing RFA obligations, and made 43 recommendations for further improvements in forest management practices. The Australian and Tasmanian governments have given in-principle support to the review recommendations, and are preparing a response.

In conjunction with Tasmanian Government agencies, the department continued to administer the Tasmanian Community Forest Agreement. The $56 million Industry Development Program component of the $250 million agreement provides funds for grants to Tasmanian forest industry members. In 2007–08, 47 grant applications totalling $21.6 million were approved, supporting more than $84.4 million in new investment by the Tasmanian timber industry.

Research programs

Research programs investigating alternatives to 1080 poisoning and alternatives to clearfelling of old growth forests continued in 2007–08.

The Alternatives to 1080 Program is investigating ways to reduce the impact of herbivores on forest establishment through methods such as targeted culling, trapping and the use of repellents.

Preliminary results of the clearfelling research were presented to more than 150 delegates to the Old Forests—New Management international conference held in Hobart in February 2008. The research has focused on possible alternatives to clearfelling (such as the use of variable retention), analysis of the safety of changed harvesting regimes, and the impact of burning on soil and biodiversity.

Australian Forestry Standard

Standards Australia endorsed the Australian Forestry Standard as a full standard on 7 August 2007. The management of around 8.7 million hectares of native and plantation forest has been certified by the Australian Forest Certification Scheme as meeting the requirements of the standard.

Nine countries have public procurement policies intended to restrict purchases to legal and/or sustainable wood and paper products (Belgium, Denmark, France, Germany, Japan, the Netherlands, New Zealand, Norway and the United Kingdom). Australian certified forest products meet criteria for legality under all these policies and for sustainability under all except that of the Netherlands. The Netherlands’ criteria for sustainability are being reviewed, as no forest certification scheme anywhere in the world has yet met its criteria.

The department developed communications material about the outcomes of the Tasmanian Community Forest Agreement and Australia’s sustainable forest management credentials for the Chinese and European markets. A delegation from the department travelled to China and Europe and presented the materials to government and industry stakeholders.

In October 2007, the department held meetings in the United Kingdom, Belgium, the Netherlands and Switzerland to update government and other stakeholders on the finalisation of the Australian Forestry Standard. The meetings discussed processes for assessing forest certification schemes under European green procurement policies for timber. We also provided information to Australia’s major forest products trade partners through our overseas agricultural officers’ network. This work ensured that commercial and government decision-makers have the facts about Australian forest management.

Forest and Wood Products Australia

During 2007–08, arrangements were established to declare Forest and Wood Products Australia as the forest industry research and development provider and the manager of industry research levies. The functions, staff and assets of the Forest and Wood Products Research and Development Corporation were transferred to the new body in September 2007.

Forest and Wood Products Australia submitted its first strategic plan and operating plans to the government in June 2008, in accordance with the statutory funding agreement.

Illegal logging

Australia’s policy on illegal logging is being implemented in collaboration with industry and other stakeholders and state and territory governments. In October 2007, the then government released Bringing down the axe on illegal logging—an Australian Government policy to eliminate trade in illegally sourced forest products.

In November 2007, the current government committed to:

• helping regional governments build capacity to prevent illegal logging
• developing and supporting certification schemes for timber products sold in Australia
• identifying illegally logged timber and restricting its importation into Australia
• requiring disclosure at point of sale of species, country of origin and any certification
• supporting incentives in emerging global carbon markets for avoided deforestation and better management of tropical rainforests.

We are working with Australian industry and regional governments to develop a practical and cost-effective system to verify and document the legality of forest products imported into Australia. We are developing bilateral arrangements with producer and consumer countries, consistent with the Australian Government’s international trade and foreign policy commitments, to support this work.

The department is also assisting producer countries through the Asia Pacific Forestry Skills and Capacity Building Program to build their capacity to promote sustainable forest management, including by reducing illegal timber harvesting and developing forest certification and legal product chain-of-custody systems. The first round of the program attracted 79 expressions of interest from around the world, resulting in 17 projects being funded for $2.58 million for 2007–08.

National Indigenous Forestry Strategy

The National Indigenous Forestry Strategy was launched in August 2005. Its aim is to increase Indigenous employment and business opportunities in the forest industries.

During 2007–08, a number of regional meetings were held with Indigenous landowners and forestry industry stakeholders to increase their awareness of opportunities and to develop networks among regional communities and forest industries. Meetings were held in the Great Southern region of Western Australia; the Tiwi Islands and the Top End of the Northern Territory; the Green Triangle region of South Australia and western Victoria; central Queensland; and the north coast of New South Wales.

Funding from the Natural Heritage Trust was used to develop a package of national Indigenous communication tools. The tools will provide accessible information on forestry as a sustainable land-use option for Indigenous communities. The aim is to help Indigenous community leaders make better informed land-use decisions and to increase community involvement in forestry opportunities on Indigenous land. The project will conclude with the release of the package, expected in September 2008.

Fisheries

Our work for the fishing industries centred on reducing illegal foreign fishing in Australian waters, improving fisheries management and finalising structural adjustment in Commonwealth fisheries. Internationally, we worked to make regional fisheries more sustainable.

Illegal foreign fishing

Since 2004–05, more than $603.8 million has been spent in a whole-of-government initiative to combat illegal, unreported and unregulated (IUU) foreign fishing in northern Australian waters. In 2007–08, a key focus of the whole-of-government approach was increased aerial surveillance and on-water enforcement coordinated through the Border Protection Command. This involved close collaboration between the department, the Australian Customs Service, the Royal Australian Navy, the Australian Fisheries Management Authority (AFMA), the Australian Quarantine and Inspection Service, and Immigration officers. We also worked with the other members of the interagency Strategic Maritime Management Committee to commence a review of illegal foreign fishing measures. The findings from the review will provide a basis for assessing the effectiveness of current arrangements for maritime security and for determining future requirements.

We have made good progress in reducing illegal incursions into northern waters. In 2007–08, 156 foreign fishing vessels were apprehended inside the Australian Fishing Zone, compared to 221 in 2006–07 and 649 in 2005–06 (see Figure 10). Border Protection Command reports a commensurate reduction in foreign fishing vessel sightings over this period. Most sightings of foreign fishing vessels now occur near the border of the zone, well away from the Australian mainland. The decline in interceptions since 2005–06 is evidence of the effectiveness of Australian Government investments in this area.

A feature of the fight against IUU fishing has been the development of closer cooperation with our northern neighbours. Our cooperation with Indonesia led the two countries to jointly convene the world’s first Regional Plan of Action to Promote Responsible Fishing Practices including Combating IUU Fishing. The department helped broker the endorsement of fisheries ministers from 10 other countries in the region, including East Timor and Papua New Guinea, and from such agencies as the United Nations Food and Agriculture Organization (FAO).

To drive action on the regional plan of action, we conducted several regional workshops and forums, culminating in an agreed action plan for better fisheries governance. The plan has now become the flagship for multilateral cooperation to improve management of fisheries resources in the region.

We sharpened our focus on combating IUU fishing at its source by working with Indonesia and Papua New Guinea to raise fishing communities’ awareness of the destructiveness of IUU fishing and the consequences of being apprehended in Australian waters. In eastern Indonesia, a public information campaign supported by the Indonesian Government and coordinated through the Australian Embassy in Jakarta has covered fishing communities.

High seas fisheries

Australia worked closely with other members of the Pacific Islands Forum Fisheries Agency to promote the sustainable use of tuna resources, and has been an active participant in the Western and Central Pacific Fisheries Commission, which manages the world’s largest tuna fishery. We made progress on a range of conservation and management measures to combat overfishing of important tuna species.

We led Australian Government engagement in the negotiations to establish the South Pacific Regional Fisheries Management Organisation. These negotiations are likely to conclude in 2008–09.
The period available for signing the Southern Indian Ocean Fisheries Agreement ended in July 2007. Australia, as a signatory, has since gone ahead with ratification procedures. Four ratifications are required to bring agreement into force; only the Seychelles is currently a party to the agreement.

At the Indian Ocean Tuna Commission, we advocated limits on the fishing capacity of large fishing fleets and led efforts to reduce the impacts of fishing on non-target species. The results included stronger measures to reduce IUU fishing, additional monitoring of at-sea transhipment, tighter catch reporting requirements, and new measures to mitigate seabird bycatch.

Australia hosted the meeting of the Commission for the Conservation of Southern Bluefin Tuna in October 2007. Members agreed to continue the 11 810-tonne global total allowable catch for southern bluefin tuna and to develop catch documentation strategies to better manage the resource. We also coordinated a joint Australian–Japanese project to test two new technologies for measuring Australia’s southern bluefin tuna catch, most of which is now fattened in sea-pens in South Australia.

Commonwealth fisheries management

The department released the Commonwealth Fisheries Harvest Strategy policy and associated guidelines in September 2007. The policy provides a framework for the management of commercial fish species for long-term biological sustainability and economic profitability. In line with the policy, AFMA has developed harvest strategies for all relevant fisheries, including indicators, reference points and decision rules. During 2007–08, the department funded over $3 million of research to underpin sound fisheries policy and management through the Fisheries Resources Research Fund.

We led the development of the draft National Climate Change and Fisheries Action Plan in close consultation with the commercial and recreational fishing sectors and the aquaculture sector. The action plan will cover all fishing sectors, including wild catch, aquaculture, recreational and traditional fisheries.

Structural adjustment

Onshore business assistance and fishing community assistance make up the final stage of the $220 million Securing our Fishing Future structural adjustment package. The department completed final funding rounds for these components in 2007–08. Assistance programs for skippers and crew, and for business advice, were also finalised and all eligible claims were paid.

Onshore business assistance was a discretionary grants program to help onshore businesses adjust to reductions in fishing activity resulting from the $150 million buyback of fishing concessions completed in 2006–07. In total, 33 businesses were awarded over $2.5 million to exit from the onshore fishing-related business sector, and 64 businesses were granted over $10.25 million to develop their enterprises. Implementation of most projects began in 2007–08; the completion date for projects is 30 June 2009.

Fishing community assistance grants aim to generate employment and economic activity in coastal communities affected by reductions in fishing activity. Over $17.9 million was allocated to help communities adjust. These projects, along with projects awarded $2.7 million in grant funding in 2006–07, are expected to be fully implemented by 30 June 2009.

The details of onshore business and fishing community assistance grants are available at our website (www.daff.gov.au/fishingfuture).

Compliance monitoring programs for all components of the Securing our Fishing Future package began in 2007–08. The Australian National Audit Office began an audit of the department’s administration of the package, and is due to report in early 2009 (see ‘Internal and external scrutiny’).

Australian Fisheries Management Authority

Legislation enacted in June 2008 replaced AFMA’s board of directors with a chief executive officer and a commission structure, and brought it under the authority of the Financial Management and Accountability Act 1997. The changes were in line with Uhrig review recommendations and took effect from 1 July 2008.

The legislation requires AFMA to improve its financial management and accountability to the Australian Government, and strengthens its ability to deal with IUU foreign fishing. AFMA now has broader powers to board and inspect foreign fishing vessels, initiate hot pursuit of supporting vessels outside the Australian Fishing Zone, and enforce the correct stowage of fishing equipment on foreign vessels transiting the zone.

Torres Strait fisheries

The department assisted the Torres Strait Regional Authority to implement leasing arrangements in the Torres Strait finfish fishery after a reallocation of all Australian concessions in the fishery, which are now held by the authority on behalf of Indigenous fishers. This process also secured 25% of the fishery for Papua New Guinea, meeting Australia’s obligations under the 1984 Torres Strait Treaty.

The leasing arrangements ensure continuity of product supply to onshore businesses in the region and maximise the economic benefit from the fishery.

In the tropical rock lobster fishery, over 30% of the entitlements held by commercial fishers were reallocated to Indigenous fishers to increase opportunities in the fishery for them and to meet obligations to Papua New Guinea set out in the treaty.

We are working to implement output controls (restraints on what can be caught, including total allowable catches, quotas, size limits and species) in both fisheries by 2010.

The department continued to support the Torres Strait prawn fishery by providing more than $700 000 in research funds in 2007–08. The research will support the development of a harvest strategy for the fishery, to be implemented under a new management plan released for public comment in June 2008.

We also began work on a review of appeal processes under the Torres Strait Fisheries Act 1984. The review will identify best practice methods for allowing appeals to allocation decisions under the Act. An independent consultant is expected to conduct the review in 2008–09.

Aquaculture and seafood

Aquaculture is one of the fastest growing primary industry sectors and is an important part of Australian fisheries production. In 2007–08, our work for the industry focused on working with the peak industry body, the National Aquaculture Council, and other sectoral bodies to address national industry issues.

To support seafood labelling requirements, we provided funds for the operation and promotion of the Australian Seafood Consumer Hotline (a 1800 line) as a means for consumers to voice concerns about mislabelled seafood and to have those concerns referred to the relevant state or territory agency for action. The hotline supports the country-of-origin food labelling requirements that came into effect in June 2006 and apply to all seafood.

Recreational fishing

The $15 million, three-year Recreational Fishing Community Grants Program was extended for 12 months (until June 2009) to allow later funded projects to be completed (see Table 8, Output 3 administered items, 2007–08, for details of performance during the year).

Outlook for 2008–09

In 2008–09, Output 3 will be delivered mainly by the Agricultural Productivity Division (most industry programs and innovation), the Climate Change Division (forestry programs) and the Trade and Market Access and Sustainable Resource Management divisions (international fisheries and domestic fisheries, respectively).

For agricultural industries, we plan to:

• smooth the transition to the new export wheat marketing arrangements by implementing the recommendations of the Industry Expert Group and by organising information sessions for growers about managing their businesses in the new environment
• deliver and evaluate the Murray–Darling Basin Water Efficiency Grants and Irrigation Workshops
• deliver the Regional Food Producers Innovation and Productivity and Promoting Australian Produce programs, leading to the development and use of new technologies and methods that result in a more productive and profitable regional food production sector
• continue to administer the Horticulture Code of Conduct, provide input into the government response to the Australian Competition and Consumer Commission’s evaluation of the code, and implement any changes agreed by government
• develop and implement the government’s approach to respond to global food security concerns
• implement legislative changes to remove the dairy adjustment levy
• implement outcomes of the European Union – United States dairy quota review.

In forestry, the department will:

• support the International Forest Carbon Initiative through the Asia Pacific Forestry Skills and Capacity Building Program, which will reduce emissions by providing practical support for sustainable forest management
• work with forest industry stakeholders to complete the Forestry and Climate Change Action Plan, develop guidelines for investment, and have them approved by the NRM and Primary Industries ministerial councils
• implement the new Forest Industries Development Fund, which will provide funds for value-adding projects that will boost exports of Australian forest products.

In the domestic fisheries sector, the department will:

• finalise and have the major role in the delivery of the National Climate Change and Fisheries Action Plan, which identifies ways to adapt to climate change
• contribute to a strategic review of the management of the Torres Strait fisheries
• finalise the review of provisions in Commonwealth fisheries legislation that allow fishing entitlements to be cancelled in certain circumstances
• review arrangements for each of the three northern Australian joint fisheries authorities to identify opportunities to improve, simplify and streamline arrangements
• finalise evaluations of the merits review processes in Commonwealth fisheries legislation
• contribute to the development of a new National Plan of Action for the Conservation and Management of Sharks
• finalise the National Plan of Action for Reducing Incidental Catch of Seabirds in Longline Fisheries
• commission additional research under the Fisheries Research Program as part of work to reduce the number of species whose stocks are listed as ‘uncertain’ in the BRS Fisheries status reports
• provide secretariat support to an advisory committee established to review the 1994 National Recreational Fishing Policy and prepare a new Recreational Fishing Industry Development Strategy.
  

In international fisheries work, we will:

• host the sixth round of international negotiations to establish the South Pacific Regional Fisheries Agency and lead the Australian delegation
• continue the development of interim management measures to conserve and manage deep-sea stocks taken by bottom-fishing in the Southern Indian Ocean
• host the first meeting of signatories to the Southern Indian Ocean Fisheries Agreement
• lead Indian Ocean coastal states to develop management measures to ensure equitable and secure access to high-value fisheries resources
• work to ensure that the 2008 annual meeting of the Western and Central Pacific Fisheries Commission adopts an effective and binding conservation and management measure to reduce overfishing
• seek agreement by the Commission for the Conservation of Southern Bluefin Tuna to a range of monitoring, control and surveillance measures.

In the aquaculture sector, we will:

• work with the National Aquaculture Council and sectoral bodies to increase industry productivity and growth
• support industry in addressing the priorities identified by the National Aquaculture Council
• continue to develop Indigenous aquaculture projects that are environmentally, economically and culturally responsible
• continue to work with interested states and territories to clarify arrangements for aquaculture in Commonwealth waters.

Case study 3 Sugarcane to furfural: new industry takes shape Early this decade, the Australian sugar industry was reeling from low sugar prices and fierce international competition. Some millers diversified into non-sugar products to reduce risk and increase revenue. Many marketed bagasse, the waste from crushed cane, for fuel, horticultural and other uses. In 2006, the Proserpine Sugar Mill in Queensland went one step further and made a bold decision. The mill will use bagasse to produce furfural, a valuable liquid biochemical, using the patented SupraYield process. Furfural can replace petrochemicals in the production of resin, nylon and lycra. Many players in the sugar industry believe that ethanol production from cane will save the industry, but Laurie Watson, who manages the furfural project for the mill, says furfural might be a better bet. ‘Compared with ethanol, furfural produced by SupraYield is cheaper and easier to make,’ he said. ‘While ethanol is produced from molasses or sugar, furfural from bagasse does not reduce other income streams from sugarcane processing.’ With help from a $12 million Australian Government grant under the Sugar Industry Reform Program 2004, construction of the furfural plant began in October 2006. The construction phase created around a hundred jobs and injected more than $25 million into the economy, about 45% of it within the region. Furfural production at Proserpine is expected to begin in October 2008. In full production, the mill will produce 5000 tonnes a year, most of it for export to a Belgian company. The furfural price is not linked to raw sugar prices, so furfural will be a buffer against volatile sugar prices. Proserpine is a cooperative mill, so its 280 farmer members will share the profits. Demand for furfural will grow as the world searches for renewable alternatives to petrochemicals, and Proserpine Mill will face new commercial opportunities: expand production capacity, market the production technology to other mills here and overseas, or both.

Table 7
Output 3 performance, 2007–08
Output 3 objective To make Australia’s agricultural, fisheries, forestry and food industries more globally competitive through sound policy advice and program administration that enable business to perform better and respond to market signals along the value chain.
Output component: High-quality policy advice on industry development issues
Performance measure The level of satisfaction of ministers and the parliamentary secretary with the quality and timeliness of policy advice as measured by feedback received.
Performance Feedback from the offices of the current and previous ministers on the quality of our advice has generally been positive. In 2007–08, the subjects on which we advised included: reforms to export wheat marketing arrangements the buyback of licences in the Torres Strait finfish fishery the introduction of the Australia’s Farming Future package arrangements for winding up the Dairy Industry Adjustment Package in 2009 development and commencement by December 2007 of targeted assistance programs for Murray–Darling Basin irrigators.
Output component: Effective administration of industry development programs
Performance measures Timely and effective delivery of programs in accordance with program guidelines and government prudential requirements as measured through the regular review of programs. Client awareness of programs and their purpose as measured through the regular review of programs. The management of contractual obligations with outsourced service providers in accordance with government prudential requirements.
Performance In 2007–08, all programs in Output 3 were delivered in accordance with the relevant agreements, guidelines and government prudential requirements. Where relevant, clients were made aware of the programs and their purposes. An audit of the Tasmanian Community Forest Agreement Industry Development Program by the Australian National Audit Office made three recommendations to improve the administration of the program. The department is implementing measures to address these recommendations.
Administered items Twenty-seven administered items contributed to Output 3. See Table 8 for performance reporting on individual items.

Table 8
Output 3 administered items, 2007–08
Assistance to the Vegetable Industry	2007–08: $1.06 million
Performance measure Based on advice from the Australian Vegetable Industry Development Group (AVIDG), implement seven foundation projects aimed at improving the vegetable industry’s competitiveness.
Performance The AVIDG was established to direct the investment of funding on behalf of the Australian Government to achieve seven foundation project themes: Development of a vegetable industry strategic plan Market development Industry information and decision support frameworks Global comparative analysis Leadership and industry structures Industry benchmarking Business skill development. The AVIDG and the department implemented all seven foundation project themes during 2007–08: The AVIDG decided on the terms of reference and the allocation of funding for specific projects to address the themes, some of which involved more than one project. The department was responsible for the provision of services to perform each project. The AVIDG sought to act as a catalyst to create industry momentum for further take-up of the work. The benefits of the group’s work will be realised when the outcomes of the projects are adopted by industry participants.
Australian HomeGrown Campaign	2007–08: $0.89 million
Performance measure Level of progress towards implementation of a sustainable voluntary labelling campaign for Australian-grown food. Performance The government provided support to Australian Made Campaign Limited to extend the Australian made certification trademark to include Australian-grown products. The campaign offers a readily recognised symbol to help consumers identify Australian-grown products on supermarket shelves. It is also assisting Australian food producers and processors to market the Australian origin of their products. In 2007–08, the contracted scheme administrator, Australian Made Campaign Limited, managed a wide marketing campaign involving print, television, radio and outdoor advertising and public relations events. Funding for the scheme ceased on 30 June 2008. The Australian grown label is now widely used by food producers and recognised by consumers.
Australian Seafood Industry Council	2007–08: $0.05 million
Performance measure Work with industry to develop a viable consultative body for the seafood industry. Performance The department invested $50 000 in a joint project with the Fisheries Research and Development Corporation to develop a business case for a new peak body for the seafood industry. The project has a steering committee formed from the industry. A review of possible strategies to develop the new body has been completed and is being incorporated into the business case. The business case will be finalised by early 2008–09 and then discussed broadly with industry.
Dairy Produce Act 1986—Dairy Industry Restructure Package	2007–08: $228.04 million
Performance measure The ongoing timely and efficient administration of the Dairy Structural Adjustment Program/Supplementary Dairy Assistance in order to assist dairy farmers and communities adjust to the impacts of farmgate pricing deregulation. Performance Performance measures in the memorandum of understanding between the department and the Dairy Adjustment Authority were met. The last quarterly payment to eligible individuals was made in mid-April 2008, and the department has put in place processes for winding up the package.
Fisheries Resources Research Fund	2007–08: $3.09 million
Performance measure Targeted economic and scientific policy research contributes to the management of Commonwealth fisheries and Australia’s engagement in regional forums and organisations. Performance The Fisheries Resources Research Fund (FRRF) provides the Australian Government with independent research, review and assessment capabilities in pursuit of long-term fisheries resource development. The FRRF has a rolling program of assessment of Commonwealth fisheries by ABARE and BRS, and targeted biological, economic and social research to underpin the government’s response to emerging fishery policy and management issues. In 2007–08, the FRRF invested $3.09 million (2006–07: $3.08 million) in 34 fisheries-related research projects and conferences. Over half was invested in work by BRS and ABARE in support of Commonwealth fisheries assessment, as well as policy advice and research. FRRF-funded projects supported government fisheries policy in such areas as Australia’s engagement in regional fisheries management organisations, facilitating market access and trade, and improving economic efficiency. The FRRF, the Fisheries Research and Development Corporation and AFMA also co-funded several projects referred by the Commonwealth Fisheries Research Advisory Board. These included projects relating more directly to improved fisheries management. The FRRF produces annual reports, which are available on the department’s website (www.daff.gov.au).
Fishing Structural Adjustment Package —Fishing Communities Program	2007–08: $5.45 million
Performance measure The projects implemented within timeframe to facilitate economic and social outcomes. Performance The Fishing Communities Grants Program is designed to generate employment and economic activity in coastal communities affected by reductions in fishing activity due to the Securing our Fishing Future package. More than $17. 9 million was allocated to fishing communities in 2007–08 (2006–07: $2.7 million). Successful applications for Round 2 of the program were announced on 5 September 2007. Along with successful projects from Round 1, they will be implemented until the end of the program in 2009. So far, projects are on track for implementation within that timeframe.
Fishing Structural Adjustment Package —Onshore Business Restructure Program	2007–08: $5.74 million
Performance measure The number of fishing related businesses that receive assistance. Performance Onshore Business Assistance is a discretionary grants program to help onshore businesses adjust to reductions in fishing activity associated with the Securing our Fishing Future package. Two rounds of the program were announced in 2007–08. Round 2, which allocated $8.3 million, was finalised on 5 September 2007. An additional and final round was announced on 28 September 2007 to ensure that all affected businesses had an opportunity to apply for funding. Round 3, which allocated more than $1 million, was finalised on 20 December 2007. A large number of applications were received from businesses around Australia over the three rounds of the program. In total, 33 businesses received over $2.5 million to exit from the onshore fishing sector and 64 businesses received over $10.25 million to develop their enterprises. All projects will be completed by the end of 2008–09.
Fishing Structural Adjustment Package—Management Levy Subsidy	2007–08: $5.00 million
Performance measure The timely payment of subsidy to the Australian Fisheries Management Authority. Performance This subsidy, implemented in 2006–07, 2007–08 and 2008–09, is to reduce the levy on those operators who remain after business exit tenders have been finalised and to aid the implementation of new management arrangements. Timely payment of the subsidy was made to AFMA in 2007–08.
Fishing Structural Adjustment Package —Science, Compliance and Data Collection	2007–08: $2.00 million
-Performance measure The timely payment to the Australian Fisheries Management Authority for additional science, compliance and data collection. Performance This funding has been made available in 2006–07, 2007–08 and 2008–09. Timely payment of the funding was made to AFMA in 2007–08.
Food Processing in Regional Australia	2007–08: $2.29 million
Performance measure The capacity of agribusinesses and food processing businesses in rural and regional Australia to add value to food produce/commodities is increased through: the number of Food Processing in Regional Australia grant projects approved each year, and the success of these ongoing projects the dissemination of information and lessons learned from projects through a variety of media and demonstration/presentation events. Performance No new projects were approved under the Food Processing in Regional Australia program in 2007–08. All available funds were committed in 2006–07, and the program closed at the end of the 2007–08 financial year. Of the 101 projects funded over the life of the program, 71 were active in 2007–08; 69 were completed; and 2 withdrew from the program. One additional volume of the ‘First Course’ case studies educational brochure was printed and distributed to stakeholders at field days, conferences and expos.
For expenditure under the Fisheries Administration Act 1991	2007–08: $34.07 million
Performance measure The Australian Fisheries Management Authority demonstrates good stewardship of Commonwealth fisheries by compliance with the objectives of the Fisheries Management Act 1991. Performance AFMA continued a number of initiatives to improve the management of Commonwealth fisheries, in particular addressing overfishing and the recovery of overfished stocks, in line with the objectives of the Fisheries Management Act and the 2005 ministerial direction. In other work in 2007–08: significant progress was made on the implementation of the Commonwealth Fisheries Harvest Strategy policy, with the development of harvest strategies for all main commercial species AFMA continued to develop alternative monitoring and reporting technologies, such as on-board cameras and electronic logbooks a business efficiency review maintained a strong focus on ensuring the cost efficiency of fisheries management AFMA continued to engage and work closely with fisheries stakeholders, particularly through management advisory committees.
Horticultural Code of Conduct	2007–08: $Nil
Performance measure Quarterly reports on arrangements from committee. Performance In 2007–08, the mediation adviser received 15 inquiries and three applications. Two mediations were begun; in the third case, the respondent went into liquidation. The mediation adviser submitted an annual report and four quarterly reports, as required under contract.
International Organisations Contributions	2007–08: $1.35 million
Performance measures Membership payments made accurately and on time, consistent with Australia’s obligations under international treaties. Work programs which further the achievement of Australia’s international fisheries, forestry, agricultural and wine trade policy objectives. Industry support for government involvement. Performance Contributions to international fisheries, wine and agricultural organisations have been paid. Our officers attended meetings of the organisations to advocate Australia’s policy positions. Industry representatives also attended, and we consulted them on Australia’s negotiation positions. Industry involvement, support and advice have made our international work more effective. The international organisations have been able to implement work programs: to improve the sustainable management of fish stocks and to maintain access for Australian fishers to improve the international trade and market information in wine, grains, sugar and cotton industries.
National Food Industry Strategy—Food Innovation Grants	2007–08: $0.51 million
Performance measures Extent to which the program leads to commercial gains from research and development and innovation throughout the food industry as measured by the percentage of FIG grants that result in new or improved food products and packaging, processing, storage and distribution technologies. Number of additional food businesses with increased uptake of the outcomes of research and development and innovation arising from grants and other initiatives funded by the program. Extent to which the program generates increased linkages between food businesses and Australian-based research providers measured by the number of contracts created between businesses and research providers. Performance In 2007–08, two grant payments were made to the horticulture industry. The grants contributed to increased industry knowledge, understanding and take-up of innovation. The payments brought to 80 the number of Australian food manufacturers who obtained grants under the program since it began in 2002–03. Total investment in R&D as a result of the program was over $100 million, most of it contributed by industry. This program ceased in March 2008.
New Industries Development Program	2007–08: $0.78 million
Performance measures Australian agribusiness enterprises gain the business skills and resources required to successfully commercialise new agribusiness products, technologies and services as measured through: a minimum of 16 pilot commercialisation projects approved and existing projects effectively monitored a minimum of 13 scholarships awarded and existing scholarships effectively monitored. The effectiveness of planning educational tools and services in the area of supply chain management, business enterprise development and market analysis and planning, gathered through follow-up evaluation. Performance In 2007–08, the New Industries Development Program funded eight in-market experience scholarships, valued at up to $12 500 each. One edition of Made in Australia was produced and disseminated to 12 000 subscribers. The pilot commercialisation project grants and the program’s educational components were finalised following the government’s decision to redirect funding to other priorities.
Recfish Australia	2007–08: $0.10 million
Performance measures Recfish Australia effectively engages with the Australian Government on issues of national significance to the recreational fishing sector. Recfish Australia has strong support within the recreational fishing sector and remains financially viable. Performance The department administered funding to Recfish Australia of $100,000 a year over four years, beginning in May 2005 and ceasing in June 2008. In accordance with the funding agreement, Recfish Australia supplied a half-yearly activity and financial report in December 2007. During 2007–08, Recfish Australia continued to develop options for an independent funding source, developed an industry-wide code of practice and a recreational fishing and safety scoping paper. The organisation played a prominent, ongoing role in resource-sharing negotiations and the development of marine protected areas, and continued to build capacity to engage with government.
Recreational Fishing Community Grants	2007–08: $5.70 million
Performance measures Improve recreational fishing throughout Australia by funding projects concerning infrastructure, fishing participation, education and awareness, fish information and abundance and marine rescue activities. Performance The Recreational Fishing Community Grants Program provided funding to 386 approved projects over five funding rounds from July 2005. Successful projects from the fifth (final) funding round were announced in September 2007. Round 5 provided $4.5 million to 112 successful projects. Projects approved included fish-cleaning stations; fish restocking; habitation rehabilitation; fish passage construction; fishing clinics; education and awareness raising; upgrades to boat ramps, jetties, pontoons and fishing platforms; and upgrades to volunteer rescue group facilities. All applications for grants were assessed by an independent assessment panel, which was supported by state-based reference groups and the program’s secretariat. Final reports and independent audit reports are required before the project is deemed to be finalised.
Sugar Industry Reform Program 2004—Advisory Group Network	2007–08: $0.44 million
Performance measures The Industry Oversight Group (IOG) progresses industry reform priorities and undertakes to align regional plans with its strategic vision. The regional advisory groups facilitate a regional focus for industry operations through development and implementation of regional plans. The Industry Oversight Group and the regional advisory groups contribute to the assessment of regional and community projects. Performance Regular meetings of the IOG and the regional advisory groups discussed progress in reform and restructuring within each region. The IOG advised the Minister for Agriculture, Fisheries and Forestry on progress with reform and restructure in the sugar industry. In June 2008, the IOG presented its confidential evaluation report on the program to the minister. Both the IOG and the regional advisory groups ceased their roles on 30 June 2008.
Sugar Industry Reform Program 2004 —Regional and Community Projects	2007–08: $32.65 million
Performance measure An increased medium to longer term restructuring of the sugar industry through regionally based, targeted projects that stimulate necessary change. Performance In July 2007, the government announced funding of more than $11.1 million for 27 regional and community projects under Round 4. In 2007–08, $31.7 million was paid against milestones for approved projects (2006–07: $18.2 million). The regional and community projects are an important form of assistance as the sugar industry restructures in line with regional and national priorities. These projects will help to improve the long-term viability of the industry.
Sugar Industry Reform Program 2004 —Finalisation of 2006–07 payments	2007–08: $2.48 million
Some payments under three 2006–07 elements of the Sugar Industry Reform Program were finalised in 2007–08: Financial Viability Assessments: $0.01 million Re-establishment Grants: $2.46 million Retraining and Employment Assistance: $0.01 million.
Tasmanian Community Forest Agreement —Hardwood, Softwood and Country Sawmills Programs	2007–08: $26.00 million
Performance measures The number of businesses assisted and jobs maintained. The amount of new investment in forest industries. The assistance given within agreed timeframes. Performance During 2007–08: 47 grant applications totlling $21.6 million were approved under the industry grants program (2006–07: 40 applications, $33.8 million) the grant applications supported more than $84.4 million of new investment by the Tasmanian timber industry (2006–07: $96.7 million) 39 companies employing over 2100 people have been offered grants; 83 new jobs are likely to be created through the grants (2006–07: 35 companies employing 1619 people, 163 new jobs) payments totalling $14.5 million were paid to successful grant applicants (2006–07: $7.3 million).
Tobacco Grower Adjustment Assistance 2006	2007–08: $14.37 million
Performance measure Number of growers who have been assisted. Performance All applications for assistance have been assessed. In 2007–08, 165 tobacco growers received assistance totalling $14.37 million (2006–07: 396 growers, $30.51 million).
Torres Strait Prawn Fisheries	2007–08: $21.07 million
Performance measures Research—development and commencement of research plan to support new management arrangements. Levy relief—timely payment of funding to AFMA to offset increased costs during development of new management arrangements. Performance In January 2007, after a request for tender, the Queensland Department of Primary Industries and Fisheries was selected to research alternative management strategies to ensure the fishery’s long-term viability. That department delivered the research project plan in May 2007 and conducted the first trawl survey to collect biological information in the Torres Strait Protected Zone. A number of surveys are to be conducted over two years. An interim report was delivered in December 2007 and considered by the Torres Strait Prawn Management Advisory Committee. The research program is planned to run until March 2009, when the final report will be delivered. The final report will be used to support new management arrangements under a management plan, which is due for implementation at that time. Levy relief of $250 000 was paid to AFMA in February 2008 to offset levies for the 2008 season. In addition, the voluntary surrender of non-traditional inhabitant commercial licences was finalised this year for approximately 30% of the Torres Strait tropical rock lobster fishery and 100% of the Torres Strait finfish fisheries. These processes were conducted to meet Australia’s obligations to Papua New Guinea under the Torres Strait Treaty and to reallocate as much of each fishery as possible to the traditional inhabitant commercial sectors.
Australia’s Forestry Industry—Preparing for the Future	2007–08: $Nil
Performance measure Funds provided on time. Performance This four-year program, which was introduced in the 2007–08 Portfolio Additional Estimates Statements, will now commence from 1 July 2008. Funding of $0.30 million in 2007–08 has been moved to 2010–11.
Integrated Forest Products Grant	2007–08: $4.00 million
Performance measures The timetable for funds provision as set down in the deed of grant met. Project achieved within budget. Performance An amount of $4 million plus GST was provided to Integrated Forest Products (Receivers and Managers Appointed) to support the operation of the Hume sawmill in the Australian Capital Territory while the receiver conducted a process to sell the sawmill as a going concern. Funds were used to support the mill’s continuing operation. Four payments of $1 million plus GST were made on an established schedule in late August 2007 and on 15 September, 15 October and 15 November 2007. The project was achieved within budget.
Regional Food Productivity and Innovation Program	2007–08: $ nil
There was no funding for this program in 2007–08. In the 2008–09 Portfolio Budget Statements, the program was renamed ‘Regional Food Producers Innovation and Productivity Program’ and funding was moved to 2009–10.
Wheat Export Authority Supplementation	2007–08: $2.00 million
The Export Wheat Commission (EWC) replaced the Wheat Export Authority (WEA) on 1 October 2007. A lump sum grant of $2 million was made in September 2007 with the intention of maintaining the EWC’s solvency. This was required because the prolonged drought and subsequent drop in exports meant the Wheat Export Charge of 22 cents per tonne of wheat exported collected insufficient revenue to fund the operations of the EWC. This grant allowed the EWC to operate effectively in 2007–08.

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International Food and Agriculture Service

The International Food and Agricultural Service, coordinated in 2007–08 by our International Division, enables us to take a unified, strategic approach to international work across the department. We work with industry and trading partners to open new markets, maintain existing ones, reduce trade distortions, reduce plant and animal disease risks, and develop international trade standards.

Priorities

• Maximise trade opportunities from multilateral agreements, ensure that Australia receives full benefit from World Trade Organization agreements, protect Australia’s interests in agriculture-related disputes, participate in the Doha Round of negotiations, and prioritise portfolio industries’ interests in Australia’s negotiating positions.
• Maximise trade opportunities from existing regional and bilateral free trade agreements (FTAs), negotiate new FTAs, and support feasibility studies for proposed FTAs.
• Contribute to international standard-setting through relevant international organisations and encourage the adoption of standards that facilitate trade in Australian products.
• Identify and target bilateral market access opportunities or threats and collaborate with stakeholders to overcome technical barriers to trade.
• Provide technical assistance and agricultural cooperation to trading partners, support improved animal welfare in major markets receiving live animals from Australia, and implement projects under the agricultural assistance program with China.

Highlights

• Supported the Department of Foreign Affairs and Trade in pursuing the government’s objective of a comprehensive outcome in WTO Doha Round negotiations.
• Made progress on guidelines and procedures in the WTO Sanitary and Phytosanitary Committee.
• Reached international agreement on major reform proposals for the UN Food and Agriculture Organization.
• Concluded formal negotiations for the Australia–Chile FTA.
• Began FTA feasibility studies with Indonesia and India.
• Made substantial progress in negotiations for the ASEAN – Australia – New Zealand FTA.
• Achieved better market access for horticultural products in Canada, Japan, Taiwan, Malaysia and the United States.
• Reopened live sheep and cattle trade to Libya.
• Minimised impacts on Australian agriculture of new quarantine regulations in some South-east Asian countries.
• Improved the welfare of exported Australian animals by supporting the adoption of international animal welfare standards.

Trade opportunities from multilateral agreements

In our work to maximise trade opportunities from multilateral agreements, we worked within the World Trade Organization (WTO) to protect the national interest in dispute resolutions, participate actively in Doha Round negotiations, and bring portfolio industries’ interests to the fore in Australian negotiating positions.

Ensuring full benefit from World Trade Organization agreements

The multilateral trading system relies on the transparent and predictable implementation of commitments by WTO members.

The department represented portfolio interests in the WTO through contributions to regular Committee on Agriculture meetings and Trade Policy Reviews of other WTO members. This enabled us to scrutinise the policy settings of our trading partners to improve market access conditions for our exports.

We continued to monitor Australia’s export markets to identify and assess specific policy measures, which may be inconsistent with WTO agreements, adopted by trading partners. Working closely with the Department of Foreign Affairs and Trade and relevant industry groups, we raised concerns through bilateral discussions on measures affecting Australia’s export interests. In 2007–08, we assisted dairy, sheepmeat, sugar and wool exporters in this way.

Protecting Australia’s interests in agriculture-related disputes

Throughout 2007–08, we continued to pursue portfolio industries’ interests through participation in the WTO dispute settlement system. WTO dispute settlements clarify WTO rules and contribute to the predictability and stability underpinning the multilateral trading system.

We continued to monitor the European Commission’s implementation of the WTO Dispute Settlement Body’s findings in a case brought by Australia, Brazil and Thailand relating to EC sugar export subsidies. The outcomes of this dispute will continue to drive reform of the commission’s sugar support program, which will lead to a less distorted global sugar market. Evidence suggests that the European Union has reduced its subsidised sugar exports, so that Australian canegrowers now operate in a less distorted world market.

We continued our participation as a third party in Brazil’s dispute action to assess whether the United States took the necessary steps to comply with an earlier ruling on US cotton subsidies and other export assistance measures. The outcome of this appeal will require the US to further amend or withdraw certain aspects of those programs. We expect this to lead to a less distorted world market for cotton producers.

In early 2008, New Zealand decided to proceed with a WTO dispute against Australia’s quarantine measures for apples imported from New Zealand. New Zealand alleges that the quarantine measures in the final import risk analysis are too strict. In March, we created the Apples Dispute Taskforce within the International Division to coordinate our input, including technical and scientific contributions, to the defence of Australia’s measures. The taskforce works closely with the government’s lead agency in WTO disputes, the Department of Foreign Affairs and Trade, and the Attorney-General’s Department. A WTO ruling is not expected until the second half of 2009.

Participating in the Doha Round

A successful conclusion to the WTO Doha Round of multilateral trade negotiations remains the Australian Government’s highest trade priority.

We continued to work towards that end through regular participation in negotiating sessions in Geneva, including negotiations affecting trade in seafood and forestry products.

The department also assisted in promoting the role of the Cairns Group in the Doha Round through contributions to position papers and statements on the agriculture negotiations.

Prioritising portfolio interests in negotiations

We maintained regular formal contact with portfolio industry bodies through a WTO Technical Working Group to update them on progress in the Doha Round negotiations. We also had regular formal contact with industry stakeholder groups to understand industry priorities in the Doha negotiations. These priorities were reflected in Australia’s negotiating position in the discussions.

Trade opportunities from regional and bilateral agreements

In addition to our work in multilateral forums, we sought to maximise market access opportunities arising from bilateral free trade agreements (FTAs)—both existing FTAs with New Zealand, Singapore, Thailand and the United States, and in the negotiations of new FTAs with China, Chile, Japan, the United Arab Emirates, Malaysia and the Association of South-East Asian Nations (ASEAN). The department also contributed to feasibility studies for FTAs with Korea, Indonesia and India.

Maximising market access through current free trade agreements

We pressed Australia’s top four priorities for market access to the United States under the Australia – United States FTA: for cherries, mangoes, lychees and stonefruit. The US finalised the import conditions for cherries from mainland Australia in January 2008. Australia continues to seek improved import conditions for cherries. We made good progress on our request for mangoes and lychees, and began work on stonefruit. We continued to press the US to finalise access for ruminant animals, following a 2006 assessment of Australia’s bovine tuberculosis status.

The department continued negotiations with the US for an irradiation framework that would permit exports of irradiated fruit and vegetables to the US.

We continued to monitor the implementation of the Thailand–Australia FTA, especially through the Thailand–Australia Joint Working Group on Agriculture and the Market Access Working Group. The department worked closely with the Australian post in Bangkok, where a departmental officer is based, to advance trade matters, to improve bilateral agricultural relationships, to build support for continued agricultural and trade reform in Thailand, and to help industry maintain existing and maximise new export opportunities in that market.

Under the Australia New Zealand Closer Economic Relations Agreement, the department continued to pursue market access in New Zealand, including at a Closer Economic Relations meeting in July 2007. Our priorities included in-transit cold disinfestation, stonefruit and lychees. We established a joint working group to strengthen cooperation in the fisheries sector; the group will identify opportunities for regulatory harmonisation to better align the delivery of fisheries services.

Discussions with our New Zealand counterparts also covered biosecurity and quarantine market-access issues, including trans-Tasman access for New Zealand apples and Australian honey, and New Zealand’s request for an exemption to the certification requirements for confirming the bovine spongiform encephalopathy-free status of New Zealand beef exported to Australia.

Negotiating new free trade agreements

The department is a participant in FTA negotiations with China, taking part in discussions on market access for goods and on sanitary and phytosanitary (SPS) measures. Two rounds of negotiations were held in 2007–08, and both sides agreed to revive discussions after Prime Minister Rudd’s visit to China in April 2008.

Continuing close engagement between the department and China’s Ministry of Agriculture; General Administration of Quality Supervision, Inspection and Quarantine; and Ministry of Commerce provided a good platform for presenting Australia’s interests in the negotiations.

Japan remains Australia’s largest market for agricultural products, with Australian exports valued at $4.7 billion in 2007. Five rounds of FTA negotiations have been held with Japan since negotiations began in December 2006, and progress has included agreement on tariff modalities. The two sides exchanged initial market access offers on goods at the fourth round, and on services and investment at the fifth round. Japan’s offer on goods had many exclusions in agriculture, including for many items of interest to Australia (mainly beef, dairy, wheat, sugar and rice). Notwithstanding Japan’s current stance in the negotiations, we are seeking the complete elimination of all barriers to agricultural trade to ensure that a successful FTA would provide tangible commercial benefits to the Australian agriculture industries.

Two rounds of negotiations for an FTA between Australia and the Gulf Cooperation Council were held (in July–August and November 2007). Australia is seeking agreement for a third round in the second half of 2008. Useful progress was made in a number of important areas across the agreement, including goods, sanitary and phytosanitary matters, and rules of origin. However, an offer on goods is yet to be made.

The Australia–Chile FTA negotiations concluded on 27 May 2008. Subject to Australian and Chilean domestic approval, the FTA is expected to enter into force in early 2009. The agreement provides for the immediate elimination of Chile’s tariffs on all meat and wine products, as well as on dairy products that Australian industry identified as priorities. We also secured an undertaking from Chile to establish recognition of Australia’s beef grading systems in the first year of the FTA.

Along with the immediate elimination of Chile’s 6% tariff on all meat products, this recognition will provide Australian industry with significant costs savings for exports to Chile. The FTA will also give Australian agricultural exporters an advantage over, or at least tariff parity with, competitors such as the United States and New Zealand.

In 2007–08, six negotiating rounds were held for the development of the ASEAN – Australia – New Zealand FTA. Negotiations concluded in August 2008, and were followed by further work to finalise the tariff schedules that will be annexed to the agreement.

No negotiation rounds were held for the Malaysia–Australia FTA in 2007–08. We hope to reinvigorate the negotiations after the ASEAN agreement is concluded.

Supporting proposed FTAs and feasibility studies

The department supported a number of feasibility studies for possible additional FTAs in 2007–08.

The Republic of Korea is Australia’s fifth largest export market for agricultural products ($1.9 billion or 7% of total value in 2006–07) and trade has increased over the past five years. A joint non-government feasibility study into an Australia–Korea FTA was completed in April 2008. Economic analysis estimated that an FTA could boost Australia’s gross domestic product by up to US$22.7 billion and Korea’s by up to US$29.6 billion in the period from 2007 to 2020, and suggested that particular gains could be made from cuts to Korea’s agricultural trade barriers. The study report provides a useful basis for both governments to consider moving to formal FTA negotiations.

The department supported the Department of Foreign Affairs and Trade in work relating to:

• the Australia–Indonesia FTA Feasibility Study (announced in July 2007), including briefings and participation in Joint Study Group meetings in Jakarta (December 2007) and Canberra (April 2008)
• the Australia–India FTA Feasibility Study (announced in August 2007), including briefings and participation in Joint Study Group meetings in New Delhi (April 2008) and Canberra (May 2008)
• the Australia–Mexico Joint Experts Group Study (from April 2007), including the preparation of the agriculture and SPS chapters of the draft report.

International standards

In 2007–08, the department contributed to international standard-setting by being strategically involved in relevant international organisations, where we encouraged the adoption of standards that facilitate trade in Australian products.

Contributing to international standard-setting activities through international organisations

We engaged actively in negotiations in the WTO Committee on SPS Standards to ensure that Australia’s interests were reflected in:

• new guidelines for implementing Article 6 of the SPS Agreement, which will provide guidance on how WTO member countries evaluate and assess requests for recognition of pest- and disease-free areas
• revised procedures for implementing transparency obligations, which outline processes for notifying trading partners of changes to SPS measures.

We continued to support high-priority work on standards in the United Nations Food and Agriculture Organization (FAO), and we took part in the development of the FAO’s program of work and budget for 2008–09 to ensure that adequate resources are directed to the Codex Alimentarius Commission (which works on food safety and quality standards), and to the International Plant Protection Convention.

The department also contributed to the development of technical standards through participation in the World Organisation for Animal Health (OIE) and the Animal Health Quadrilateral Group.

Encouraging standards that facilitate trade in Australian products

In consultation with the Australian Pesticides and Veterinary Medicines Authority, the department is working closely with Japanese authorities to provide technical information for Japan’s review of maximum residue limits in food. During 2007–08, the department provided 20 technical submissions (2006–07: 115 submissions) to support the development of maximum residue limits in food and stockfeed that are aligned more closely with Australian standards. Additional submissions will be provided over the next two years.

Technical market access barriers and opportunities

During 2007–08, the department collaborated with stakeholders to identify and remove technical market access barriers.

Identifying and targeting bilateral market access opportunities or threats

Increasing technical barriers to export remain a problem in advancing our agricultural, fisheries and forestry trade interests globally, but they can be overcome.

Our achievements in 2007–08 included:

• maintaining access for $200 million in grain exports to Thailand, after changes to plant quarantine regulations
• maintaining the $1.2 billion United States market for beef after new testing requirements were introduced
• reopening trade in live animals to Egypt
• signing a memorandum of understanding with Qatar covering the $16 million live animal trade to ensure that animals are unloaded on arrival
• gaining new or improved conditions for trade in stonefruit to Canada, citrus to Taiwan and Japan, mangoes to Malaysia, and cherries to the United States.

In late 2007 the first shipment of Australian mangoes was exported to China after negotiation of market access conditions in 2004. In September 2007, the two countries signed a new arrangement to bring China’s testing of Australian dairy products into line with international standards and also established a separate inspection system for importing Australian infant formula.

Recent gains include Japan’s acceptance of Australia’s technical report of the efficacy of 2?C and 3?C cold treatment. Japan amended its import protocol for Australian citrus to include these additional treatment options on 20 September 2007. After sustained efforts on our part, Japan agreed to a reduction in the inspection rate for fresh mangoes from 5% to 2% from October 2007. Japan has also agreed to consider a pilot trial for a non-fumigation protocol for Tasmanian cherry exports, and is also assessing our request for recognition of seasonal fruit fly freedom for the Greater Sunraysia area and new market access for table grapes and grapefruit.

Gains in market access for horticulture products in the Republic of Korea included an agreed import protocol for Australian mangoes in 2007. However, for commercial reasons, there was no trade during the 2007 mango season. Korea has also amended its import protocol for Australian citrus to include the option of cold disinfestation at 2?C instead of only 1?C. Access for Tasmanian carrots was regained in November 2007, after Korea accepted Tasmania’s area freedom from the burrowing nematode. Korea has finalised the preliminary pest risk assessment for the export of Tasmanian cherries and is assessing Australia’s requests for further improvements to market access for citrus.

In support of Australia’s export trade to Indonesia, the department gave briefings and advice to the Jakarta post and stakeholders for representations to address high tariffs for some horticultural products and meat offal import regulations that are restraining trade.

Collaborating with stakeholders to remove technical barriers to trade

The department has regularly consulted Australian agricultural industry groups on the formation of the Australian negotiating position for the Australia–China FTA and other FTAs.

We have also consulted industry groups on priorities for market access work through industry consultative groups, including the Horticultural Market Access Committee, the Live Animal Export Protocol Committee, the Red Meat Market Access Committee and the Grains Market Access Committee.

International agricultural cooperation

The department continued to provide technical assistance and agricultural cooperation to our trading partners.

Providing technical assistance and agricultural cooperation to trading partners

In March 2008, we supported the APEC Seminar on Structural Adjustment Policies in the Agricultural Sector, held in Sydney. Co-funded by APEC, the seminar provided an opportunity for government officials from APEC economies to share their experiences in implementing structural adjustment policies in response to trade policy reform or market pressures. The seminar identified common elements and highlighted the challenges for developing economies, particularly in relation to food security. The department will follow up this activity in 2008 with an intensive training course and study tour, co-funded by AusAID, to build the capacity of policymakers in the agriculture sector of APEC developing economies to design, implement and evaluate structural adjustment policies.

The department continued Australia’s longstanding agricultural cooperation efforts with China. Since 1984, more than 185 exchange missions to and from China have occurred under the Australia–China Agricultural Cooperation Agreement. In 2007–08, the exchanges covered such areas as aquaculture, horticulture, wheat science and eucalyptus plantation management.

Chinese wool producers have been trained in fine-wool classing and marketing techniques; sheep herders have been exposed to alternative grassland management systems; and the capacity of Chinese wool processors to produce high-quality textiles from Australian wool has been increased. Our wool trade with China was valued at $1.75 billion in 2007–08. Other projects underway include an equivalence study on forestry standards and a study on wine and dairy regulatory control and product-quality certification issues.

These activities strengthen the bilateral relationship and provide opportunities for new market access for Australian products in China.

In other technical cooperation work during the year, the department supported a project to commercialise business units in the Indonesian Ministry of Agriculture, and cooperated with New Zealand on common policy measures to eliminate illegal logging in the region, in line with an Australian Government election commitment to restrict the sale of illegally logged timber products in Australia.

Supporting improved animal welfare in export markets

The focus of the Live Animal Trade Program in 2007–08 was on making tangible improvements to animal welfare in the $730 million live animal trade by improving infrastructure and training the people who handle and transport livestock in receiving countries. This work was concentrated in Australia’s major livestock export markets—the Middle East and South-east Asia.

Funding of $350,000 from the Live Animal Trade Program paid for education and training projects in Bahrain, Kuwait, Oman, Qatar, Jordan, Israel and Saudi Arabia. Educational tools developed included video and printed material, and signage for areas where poor animal handling is likely, such as markets. The training targets feedlot managers, feedlot staff, livestock handlers, transport staff and importers, and the training material is in Arabic, Urdu and Tagalog (Filipino) in addition to English.

We spent around $1.2 million to repair or replace infrastructure, such as unloading ramps, and to install restraint boxes in Indonesia, Libya and Malaysia, and worked with South-east Asian countries to develop a regional animal welfare strategy to implement the OIE guidelines on animal welfare.

Australia signed a memorandum of understanding on the trade in live animals with Qatar in July 2007, bringing to eight the number of such agreements in the Middle East. The memorandum states conditions for the trade, including offloading on arrival irrespective of the health status of the livestock.

Table 9
Ministerial visits, 2007–08
Month	Visitors	Destination	Purpose
July 2007	Sheikh Abdul Rahman bin Khalifa Al Thani, Minister of Municipal Affairs and Agriculture, Qatar	Australia	To sign a memorandum of understanding on the trade in live animals with Australia
September 2007	Alexei Gordeyev, Russian Minister for Agriculture	Australia	To build the bilateral relationship and discuss issues such as grain markets, the live animal trade and the broader trade relationship
April 2008	Minister Burke and officials	Japan, Hong Kong, China and Korea	To strengthen the bilateral relationship between Australia and three of its largest agricultural trading partners, promote Australian produce, and press for progress on agricultural market access, including in free trade agreement negotiations
June 2008	The Hon. Arefaine Berhe Ghebremedhin, Minister of Agriculture, Eritrea	Australia	To discuss opportunities for continued technical cooperation under the memorandum of understanding on cooperation on agricultural issues to address the challenges of food security and develop quarantine systems for Eritrea
Junne 2008	Dr Yahya Almutawakel, Minister for Industry and Trade, Republic of Yemen	Australia	To discuss the new wheat marketing arrangements and opportunities to source wheat

The department continued activities in Eritrea. Projects included placing Australian volunteers in capacity-building roles; evaluating Australian forage species in Eritrean conditions; and the practical application of conservation farming using no-till seeding systems in the Hamelmalo farming community.

Table 9 lists ministerial visits to and from Australia during 2007–08; Table 10 details technical assistance visits and missions during the year.

Table 10
Technical exchanges and other assistance, 2007–08
Month	Location	Activity
July and November 2007	Canberra/ Washington DC	Teleconference of the AUSFTA Standing Technical Working Group on Animal and Plant Health Measures
August 2007	Kuala Lumpur, Malaysia	Meeting of the Malaysia–Australia Agricultural Cooperation Working Group
August 2007	Gold Coast, Australia	Meeting of Australia–Indonesia Working Group on Agriculture, Food, Forestry Cooperation
August 2007	Sydney	Funded Pacific island country attendance at a meeting of the Pacific Plant Protection Organisation
September 2007	New Zealand	Funded Papua New Guinea, Vanuatu and Solomon Islands participants to attend a Codex Alimentarius workshop on food standards
September 2007	Country NSW	Visit to Australia by a group of 30 South African farmers to view agricultural production and management techniques
September 2007	Malaysia	Meat and Livestock Australia contracted to undertake a scoping study and develop a blueprint for the implementation of a Malaysian Animal Traceability System
November–December 2007	Indonesia	Training for conversion to commercialised status for four dairy technical production units in the Indonesian Department of Agriculture
February 2008	South Australia, Sydney and Canberra	Study tour for Vietnam Fisheries Directorate built on Vietnam’s capacity to produce and export high-value seafood products for overseas markets
February–May 2008	United Arab Emirates	Opportunity to directly influence animal welfare standards and their application in the United Arab Emirates and, more broadly, the Gulf Cooperation Council countries; visit by departmental officers and animal welfare consultant in February–March; follow-up visit by departmental officers to provide training in animal welfare in April–May 2008
March 2008	Canberra	Visit by Saudi Arabia delegation to Australia, including visit to Canberra to revise memorandum of understanding on the trade in live animals
March 2008	Sydney	Seminar on Structural Adjustment Policies in the Agricultural Sector (co-funded by APEC). Sharing experiences and building capacity in structural reform and domestic adjustment policies in the agricultural sector for APEC developing economies
April 2008	Brisbane	Funded participants from India and Sri Lanka to attend the Quarantine Regulators Seminar
April 2008	Hamelmalo, Eritrea	Enhancing skills and capabilities in applied farming systems at Hamelmalo College of Agriculture
April 2008	Chile	Australian Government delegation to assist Chile with policy and operational advice on water and drought management
April 2008	Washington DC	Annual face-to-face meeting of the AUSFTA Standing Technical Working Group
May 2008	Country Victoria	Inspection of dairy establishments in Australia by the Taiwan Bureau of Food Safety

Other work

Two unforeseen events during the year resulted in the department taking additional action to protect Australian interests: unprecedented global rises in the price of food, and a campaign by British lobby groups against food imports.

Food price rises

Recent significant increases in world food prices are creating challenges for food-importing countries and opportunities for Australian agricultural exporters.

Factors driving the change include growing demand for meat and dairy products in developing countries; high fertiliser and fuel costs; export restrictions on some commodities; and increasing biofuel production. These factors have led to concerns about food security in developing countries.

The Australian Government worked hard to try to reach a successful conclusion to the WTO Doha Round, as those negotiations are an important avenue to improve food security, and will continue to do so. However, the Doha Round is only part of the solution and must be supported by other policy responses.

The department is contributing to the development of a comprehensive whole-of-government action plan for long-term food security, which will draw on Australia’s expertise in agriculture, including semi-arid agriculture and adaptation.

We will continue our work to help Australia’s agricultural industries meet increased global demand and embrace emerging and currently available technologies to increase productivity and efficiency, for example, through such initiatives as the four-year, $35 million Regional Food Producers Innovation and Productivity Program.

Food miles and carbon footprints

The department is working with other agencies to counter the ‘food miles’ approach to personal food purchases in the United Kingdom, which could have detrimental effects on our export food trade.

‘Food miles’ is a British private sector initiative suggesting that food which travels a longer distance to market has a greater impact on climate than food sourced locally, due to greenhouse gas emissions from transport. Some lobby groups are urging consumers to buy locally produced foods on this basis. However, food miles is a flawed concept that fails to recognise that greenhouse gas emissions result from the whole supply chain, not merely from the transport of goods.

To overcome this shortcoming, some countries are now using the concept of ‘carbon footprinting’. The carbon footprint of a product or service is the sum of its carbon emissions over its lifecycle, which, depending on the methodology applied, includes production, delivery, use and disposal. Environmental certification or labelling schemes not based on robust carbon footprint methodologies run a high risk of distorting trade and producing perverse environmental outcomes.

Outlook for 2008–09

The department’s priorities for trade and market access work in 2008–09 will be consistent with the government’s broader trade policies, which will be further articulated in the government’s response to the Review of Export Policies and Programs announced by the Minister for Trade in February 2008. The review is scheduled to report by the end of August 2008.

The completion of the WTO Doha Round negotiations remains the highest trade policy priority of the government. The negotiations will have a significant impact on the future trade of portfolio industries’ products. We will continue to provide expert input to the negotiating team, which is led by the Department of Foreign Affairs and Trade.

The department will also participate in the defence and prosecution of WTO dispute actions relating to portfolio interests. The WTO challenge by New Zealand against Australia’s import arrangements for apples will be significant. Australia is also a third party to a number of disputes of interest to the portfolio.

A number of significant FTA negotiations are underway or in the feasibility study phase. In 2008–09, the department will continue to contribute expert input into negotiations with China, Japan, ASEAN (in association with New Zealand), Malaysia, and the Gulf Cooperation Council countries. Feasibility studies with Indonesia, the Republic of Korea and India will also require our input. All these countries are important trading partners for agriculture, fisheries, forestry and food products, and our work could lead to substantially improved market access.

Table 11
Output 4 performance, 2007–08
Output 4 objective To make Australia’s agricultural, food, fisheries, and forestry industries more sustainable, competitive, and profitable by maintaining and improving market access opportunities for portfolio industries, removing distortions to international trade, facilitating technical assistance and agricultural cooperation in support of portfolio interests, mitigating external risks to our plant and animal health status, and assisting in the development of international standards for trade in portfolio products.
Output component: High-quality policy and technical advice on trade policy and market access; Effective participation in trade policy and market access negotiations
Performance measures The number of market access opportunities created and maintained for portfolio industries. The technical assistance and agricultural cooperation activities developed and implemented to support core portfolio interests. The effective management of the external risks and challenges to Australia’s food and agriculture systems. The degree to which trade policy and market access negotiations are responsive to national priorities. Performance The department provided high-quality policy and technical advice to: successfully negotiate new or improved market access for a range of products, including live animals, meat, grains and horticulture products work with a range of governments to ensure market maintenance across all sectors successfully implement a range of technical cooperation and exchange projects (as detailed in Table 10) contribute to progress in negotiations in the World Trade Organization and a number of free trade agreements. Administered items Three administered items contributed to Output 4. See Table 12 for performance reporting on individual items.

Quarantine barriers and other ‘behind the border’ measures remain a significant constraint on Australian exporters’ access to overseas markets. We will continue to take the lead role in efforts to remove unjustified barriers and to seek the adoption of more trade-friendly measures. Challenges remain in horticulture, meat, grains, live animals, fish products and dairy products.

New and emerging issues that will demand our attention in 2008–09 include international concerns and policy responses to rising food prices; the use of standards, measures and concepts (such as carbon footprints) that impede market access; and the impact of policies encouraging the development of biofuels.

Table 12
Output 4 administered items, 2007–08
Agriculture Advancing Australia— International Agricultural Cooperation	2007–08: $0.74 million
Performance measure The development of markets and bilateral trade and investment opportunities for our portfolio industries through international activities which will enhance existing and new relationships at government-to-government level as measured by the number of successful support activities delivered. Performance In 2007–08, the department continued to provide capacity building and technical cooperation, particularly in the Asia–Pacific region, through projects funded under the four-year, $6.4 million International Agricultural Cooperation program. The program aims to strengthen bilateral agricultural relationships with trading partners and assist in addressing market access issues. A total of 14 projects were funded in 2007–08 (2006–07: 16 projects). They included: capacity building in the Eritrean College of Agriculture through Australian Volunteers International placements, building on work in 2006–07 scientific equipment for the Eritrean National Agricultural Research Institute Eritrean fisheries capability assessment (cancelled after start-up due to a change in the Eritrean Government’s priorities) technical expert attendance at a meeting in Taiwan promoting the efficacy of cold treatment disinfestation of Australian stonefruit and cherries payment of audit costs associated with the development of a memorandum of understanding waiving post-arrival food safety inspection of Australian dairy products exported to Taiwan missions to and from China under the Australia–China Agricultural Cooperation Agreement (jointly funded and administered by the department and the Ministry of Agriculture of the People’s Republic of China) – missions to Australia: trade potential (production, consumption and trade issues), September 2007; wheat science and production, April 2008; quality and safety testing of agricultural produce, May 2008; eucalyptus plantation management, June 2008 – missions to China: persimmons, October 2007; Queensland horticulture exports, March 2008; developing a market for table grapes, May 2008; eucalyptus plantation management, May 2008; aquaculture production, June 2008 joint cooperation in goat breeding in Indonesia, building on work in 2006–07 support for biological collections for agricultural trade in Indonesia.
International Agricultural Cooperation—Live Animal Trade Program	2007–08: $1.75 million
Performance measure Deliver better animal welfare outcomes, enhance live animal exporting countries’ technical capabilities, and advance bilateral agricultural relationships as measured by the number of successful activities delivered. Performance During 2007–08, the department continued to promote improved animal welfare and trade in live animals through projects funded under the final year of the four-year, $4 million International Agricultural Cooperation—Live Animal Trade Program, in line with the recommendations of the Keniry inquiry. Projects funded during the year included: upgrades of infrastructure in ports, transport vehicles, loading facilities, feedlots and abattoirs in the Middle East, South-east Asia and Russia provision of restraining boxes in Indonesian, Malaysian and Libyan abattoirs improvement of Libyan abattoir infrastructure for sheep education and training in livestock handling in the Middle East development of animal welfare education and training materials, including videos, books and signage in English, Arabic, Urdu and Tagalog (Filipino) evaluation of forage species for livestock in Eritrean conditions development of ear tag scanners to monitor cattle at Sokhna feedlot in readiness for reopening the cattle trade to Egypt at Ain Sokhna workshop in Thailand to develop an Asian region animal welfare strategy incorporating World Organisation for Animal Health (OIE) guidelines on animal welfare. In May 2008, the government announced a four-year, $4.2 million extension to the Live Animal Trade Program. The program will continue to invest in technical cooperation activities to improve animal welfare in countries importing Australian live animals.
United Nations Food and Agriculture Organization Contribution (FAO)	2007–08: $8.01 million
Performance measure Further achievement of Australia’s national and international agricultural, fisheries, forestry and food interests and the FAO’s overall objectives, through our annual contribution. Performance The department paid Australia’s contribution to the FAO for the 2007 calendar year, with total expenditure of $8.01 million. Australia’s 2007–08 payment was less than the 2006–07 payment ($8.5 million) due to the appreciation of the Australian dollar against the United States dollar. As a major agricultural commodity producing and exporting country, Australia gains substantial benefits from membership of the FAO. Membership gives us an opportunity to advance our international objectives, including trade liberalisation, in the only international body dealing with the full range of sustainable development, production and utilisation issues in relation to agriculture, fisheries and forestry. Through our Rome-based counsellor, the department engaged in the development of the FAO’s work program and budget for 2008–09, to ensure that adequate resources are directed to priority activities for Australia, including the Codex Alimentarius Commission and the International Plant Protection Convention, which assist global harmonisation of food and plant standards, respectively, and support international trade. Australia also supported activities of broader interest regionally, including FAO monitoring and development of control methods for important pests and diseases, such as avian influenza and foot-and-mouth disease, and the collection of statistics and data on agriculture, fisheries and forestry. Australia actively supported the comprehensive independent external evaluation of the FAO, which was accepted by member countries at the FAO Ministerial Conference in November 2007. Australia will continue its support for FAO reform in 2008 through its engagement in the development of a new strategic framework and plan of action to implement the recommendations of the report. In 2008, high food prices and their impact on food security, particularly among the least developed countries, have emerged as a global issue. As part of a wider response driven by the United Nations, Australia participated in the FAO High Level Conference on Food Security: the Challenges of Climate Change and Bioenergy (June 2008, Rome). The conference considered the factors contributing to the rapid rise in food prices and endorsed elements of a comprehensive framework of action to address the crisis, including immediate humanitarian assistance and longer term responses to increase investment in agricultural development and research. In consultation with the Department of Foreign Affairs and Trade, we actively engaged in negotiations on the conference declaration to ensure that it reflected Australia’s interests. In particular, the declaration noted the benefits of an early conclusion to the World Trade Organization Doha Round of trade negotiations.

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Product Integrity, Animal (including Aquatic Animal) and Plant Health

Through Output 5, the department works with government, industry and community groups to manage terrestrial and aquatic animal health and welfare, plant health and protection, residues, food safety and agricultural and veterinary (agvet) chemicals. Output 5 is delivered mainly through our Product Integrity, Animal and Plant Health Division, which includes the Office of the Chief Veterinary Officer (OCVO) and the Office of the Chief Plant Protection Officer (OCPPO).

Priorities

• Strengthen Australia’s national animal and plant health and animal welfare policy by consulting government and non-government stakeholders, implementing the Australian Animal Welfare Strategy and the National Livestock Identification System, managing national animal and plant health programs, and continuing reforms of agricultural and veterinary chemicals legislation and the national chemicals risk management framework.
• Ensure the effective and efficient national management of pest, disease and contaminant emergencies that impact on Australian agriculture, aquaculture and forestry.
• Advance Australia’s interests in international forums dealing with animal health and welfare, plant health and food standards, build regional neighbours’ capacity to manage pests and diseases, and contribute to bilateral discussions on significant technical market access problems.

Highlights

• Regained equine influenza disease-free status on 30 June 2008 after a successful eradication campaign.
• Continued close liaison with human health authorities on zoonotic diseases.
• Worked with industry and regional neighbours to enhance preparedness and response capacity for avian influenza.
• Supported development of Australian plant health capacity under the Securing the Future program.
• Made progress on implementation of the National Fruit Fly Strategy by the Australian and state and territory governments.
• Began implementation of the Quarantine Research and Preparedness Program to protect Australian horticulture.
• Delivered cost-shared eradication programs for citrus canker, red imported fire ant, electric ant and six weeds.
• Contributed to the review of regulatory arrangements for security-sensitive ammonium nitrate.
• Conducted a nationwide traceability exercise of the National Livestock Identification System for sheep and goats.
• Drafted the Australian Standard for Animal Feed.
• Worked with governments, industry and animal welfare groups to continue implementation of the Australian Animal Welfare Strategy.

National animal and plant health and animal welfare policy

The department continued to play a central role in developing national animal and plant health and animal welfare policy. This work involved extensive consultation with state and territory governments and non-government stakeholders to implement the Australian Animal Welfare Strategy and the National Livestock Identification System. We also managed a number of national animal and plant health programs, and continued work to reform agricultural and veterinary chemicals legislation and the national chemicals risk management framework.

Strengthening Australia’s disease management and animal welfare frameworks

In working to strengthen the nation’s disease management, the department completed a review of the Australian Veterinary Emergency Plan (AUSVETPLAN), and will use the results in discussions with other stakeholders to ensure that AUSVETPLAN captures policy and scientific advances. We worked with Animal Health Australia to update a number of AUSVETPLAN disease strategies, including those for equine influenza, Australian bat lyssaviruses and bluetongue, and the plan’s summary documents.

The department funded and participated in four veterinary practitioner training courses on emergency animal diseases (EADs) and response procedures, and continued to publish EAD bulletins to strengthen Australia’s early warning systems.

We also initiated a review of emergency response arrangements for all primary industry sectors. The aim of this work, which will continue in 2008–09, is to reduce duplication and identify opportunities to develop arrangements that are applicable across all sectors.

The Australian Government Agricultural Emergency Plan was completed and endorsed by participating agencies.

Our agreement with the Department of Health and Ageing to share information during emergencies that could affect animal and human health was completed and signed by both departments.

The department continued to oversee the implementation of Australia’s National Strategic Plan for Aquatic Animal Health, and drove specific initiatives (such as a national strategy for aquatic animal health education and training).

We continued to participate in the Aquatic Animal Health Committee, which is the primary industry–government interface for policy, communications and awareness on aquatic animal health. The committee endorsed five aquatic Australian and New Zealand Standard Diagnostic Procedures; five more are in the final stages of preparation for endorsement before publication.

The department also supported the National Aquatic Animal Health Technical Working Group, which provides scientific and technical advice to the Aquatic Animal Health Committee.

The revised text of the Intergovernmental Agreement on a National System for the Prevention and Management of Marine Pest Incursions (Marine IGA) was agreed by the Natural Resource Management Ministerial Council.

Drafting of legislation covering marine pests in ships’ ballast water commenced. The legislation will give effect to the International Convention for the Control and Management of Ships’ Ballast Water and Sediments 2004 and provide a basis for consistent national management.

In other aquatic animal health work, the department:

• coordinated the development of aquatic animal health proposals for the Australian Biosecurity Intelligence Network, an initiative of the National Collaborative Research Infrastructure Strategy
• supported the Fisheries Research and Development Corporation’s Aquatic Animal Health Subprogram, which provides national leadership on aquatic animal health R&D
• continued with revisions of the AQUAVETPLAN manuals, which define procedures and protocols for managing disease outbreaks, including a new manual on abalone viral ganglioneuritis and updates of four other manuals to keep them in line with current animal welfare, vaccination, management and diagnostics developments
• provided the secretariat and the chair for the Aquatic Consultative Committee on Emergency Animal Disease and its Technical Working Group on putative infectious hypodermal and haematopoietic necrosis virus in Australian prawns.

The Office of the Chief Plant Protection Officer (OCPPO) continued to lead and coordinate national plant health policy and advice to the Primary Industries Standing Committee and the Primary Industries Ministerial Council through the Plant Health Committee and its subordinate bodies. The Chief Plant Protection Officer chairs the Plant Health Committee, the National Vine Health Steering Committee and a number of national consultative committees that develop Australia’s plant health capacity and capability.

The Domestic Quarantine and Market Access Working Group finalised the revised Queensland Fruit Fly Code of Practice, which is an important element of the proposed National Fruit Fly Strategy. It also produced national agreement for consistent legislation to cover the use of irradiation as a phytosanitary measure. To generate greater awareness of the working group’s role in the regulation of interstate trade to prevent the spread of pests and diseases within Australia, the OCPPO has been working with the group to develop web pages that will be hosted on our website.

The development of Australia’s National Plant Health Strategy is progressing under the stewardship of Plant Health Australia, with input from the OCPPO. A national plant health status report, which is being coordinated by Plant Health Australia, is nearing completion, strongly supported by the OCPPO and other biosecurity areas of the department.

The Subcommittee on Plant Health Diagnostic Standards is developing a national diagnostic strategy as an element of the National Plant Health Strategy. The strategy will direct the development and implementation of a national diagnostic network and national proficiency testing system.

The subcommittee worked with the National Association of Testing Authorities to develop a national accreditation scheme for plant health diagnostic laboratories. The association finalised the standard framework for the accreditation scheme in July 2008.

A group within the Subcommittee on Plant Health Diagnostic Standards worked on the process for verification of diagnostic protocols for endorsement as nationally recognised and utilised diagnostic standards. Eight diagnostic protocols were ready for endorsement by the end of July 2008. The subcommittee maintained a very close partnership with New Zealand to share information and diagnostic tools and protocols between the two countries. New Zealand authorities have provided workable models for consideration in the development of Australian laboratory and diagnostic networks and proficiency testing systems.

The National Surveillance Reference Group, co-chaired by the OCPPO and Plant Health Australia, enabled the ongoing capture of government-sponsored survey information into the National Plant Surveillance Reporting Tool, which provides information on Australia’s plant health status to support export market access. With assistance from Plant Health Australia, the tool has been extended to capture industry-based surveillance. The reporting tool currently contains 206 surveillance activities. The reference group supervised the delivery of a national hazard site surveillance program in urban areas around Australia’s major ports of entry, complementing trapping programs that the OCPPO administers for exotic fruit flies and the Asian gypsy moth. The surveillance detected no new exotic pests of significance during the year.

The OCPPO is completing a project on behalf of the Plant Health Committee to investigate the current use of methyl bromide as a fumigant. Methyl bromide is regulated internationally as an ozone-depleting substance. Alternative compounds for quarantine, preshipment and critical exemption uses here and overseas are being captured in a database that will help producers, exporters and regulators choose alternatives.

The OCPPO has participated in collaborative projects to develop national guidelines for pest and weed incursions, including in urban environments (for example, the development of WeedPlan and the compilation of an associated toolbox of decision-support tools for detecting, assessing and responding to new weed threats).

Consulting governments and non-government stakeholders

The department continued its involvement in SAFEMEAT, a collaborative red meat industry and government committee. SAFEMEAT’s main role is to oversee and promote sound management systems to deliver safe and hygienic red meat to the marketplace. This committee met four times in 2007–08 to work on a variety of matters, including the management of residue detections.

We established a working group of government agencies, Animal Health Australia and Plant Health Australia to review the effectiveness of response arrangements in equine influenza emergency and identify areas for future refinement or development.

We consulted state authorities and industry on responses to emergency animal diseases, and on the management of current aquatic animal health issues, such as abalone viral ganglioneuritis.

We worked closely with plant industries, researchers and state and territory agriculture departments to have systems approaches accepted as a treatment by importing countries, states and territories. OCPPO is also working with state and territory agencies on the development of community networks with enhanced biosecurity awareness and reporting frameworks.

The department continued to work with the states, the Northern Territory and industry to implement the National System for the Prevention and Management of Marine Pest Incursions. The main forum for consultation was the National Introduced Marine Pests Coordination Group, which met three times during the year. Key areas of discussion were biofouling best practice guidelines and Australian Government requirements, ballast water legislation, and operational procedures, monitoring, emergency response and ongoing control actions.

Implementing the Australian Animal Welfare Strategy

In 2007–08, we allocated $1.31 million to support 27 projects across all animal sectors to advance the implementation of the Australian Animal Welfare Strategy (AAWS). This work included:

• the third National Australian Animal Welfare Workshop in December 2007
• finalisation of the AAWS Communication Plan and continued development of a dedicated animal welfare website
• a stocktake of Australia’s animal welfare education and training courses
• work to fulfil a Primary Industries Ministerial Council intent for a nationally consistent approach to the implementation and enforcement of Australian animal welfare standards
• advice on institutional arrangements to improve Australia’s animal welfare research capacity
• the development of a model to rank the relative humaneness of pest animal control methods
• research into humane feral camel fertility control
• plans for an AAWS International Animal Welfare Science Conference in August–September 2008.

Implementing the National Livestock Identification System

The National Livestock Identification System (NLIS) is a nationally integrated system to allow livestock to be traced to manage animal disease emergencies and food safety. The Australian Government has provided $20 million over four years for the system. The funding, which is administered by the department, has improved the NLIS (Cattle) and allowed the implementation of NLIS (Sheep and Goats) and commencement of work on NLIS (Pigs) and NLIS (Alpacas).

‘Sheepcatcher I’, a nationwide traceability exercise, assessed NLIS (Sheep and Goats) in July and August 2007 to identify areas for improvement, including in extension work to help producers understand the system. A similar exercise is planned for NLIS (Pigs) in 2008–09.

See Table 14 (Output 5 administered items) for details of achievement against the program’s performance measure during 2007–08.

Managing national animal and plant health programs

The department administers 19 programs contributing to the achievement of Output 5. Achievements against performance measures for these programs are detailed in Table 14 (Output 5 administered items). All administered programs achieved their key performance measures in 2007–08.

Reforming chemicals legislation and national risk management framework

The department participated in policy reform processes, including by providing input to a Productivity Commission study of chemicals and plastics regulation and intergovernmental activities to reduce the regulatory burden on industry.

This work will improve the regulation of agricultural and veterinary chemicals under the National Registration Scheme for Agricultural and Veterinary Chemicals.

In December 2007, a joint Primary Industries Standing Committee and Environment Protection and Heritage Standing Committee project began to develop a scientific, risk-based methodology to set a national standard for contaminants in fertiliser. The aim is to manage the risk to the food chain posed by contaminants in industrial wastes used in fertilisers.

We worked to develop a draft of the Australian Standard for Animal Feed, which will be a benchmark for managing food safety risks from animal feeds sourced from domestic and overseas suppliers. The standard covers all aspects of animal feed, including ingredients, labelling, sanitation, pest control, manufacture and good animal feeding practice. State and territory authorities have been consulted, and consultation with relevant industry bodies will begin in early 2008–09.

The department also continued to play a key role in the development of a framework for the management of chemicals of security concern under the umbrella of the COAG Review of Hazardous Materials. We have also been involved in a working group reviewing current regulations and controls on security-sensitive ammonium nitrate.

Management of pest, disease and contaminant emergencies

The department aims to ensure the effective and efficient national management of pest, disease and contaminant emergencies that affect portfolio industries. Our planned focus for 2007–08 was on avian influenza (AI), bovine spongiform encephalopathy (BSE), foot-and-mouth disease (FMD), citrus canker, red imported fire ants, eucalyptus rust and plague locusts.

We also refined Australia’s Emergency Plant Pest Response Deed by applying the lessons learned from the 2006 sugarcane smut outbreak. The department also coordinated the national response to the 2007 equine influenza outbreak.

Ensuring effective national management of emergencies

The development of a national emergency animal disease response system over many years ensured that the equine influenza response was effective and comprehensive. The Australian Chief Veterinary Officer chaired the Consultative Committee on Emergency Animal Diseases (CCEAD), which provided technical advice to the National Management Group chaired by the department’s secretary and responsible for overseeing the emergency response.

Our contribution included:

• contributing to CCEAD working groups on contingency planning, vaccination, movement conditions and proof of freedom
• supporting the importation, emergency registration and use of a genetically modified equine influenza vaccine, including liaising with the Australian Pesticides and Veterinary Medicines Authority and the Department of Health and Ageing
• informing national and international stakeholders through daily national situation reports
• national coordinating of human resources to affected jurisdictions
• providing technical experts to assist the states
• assisting industry business continuity by developing relevant policies and distributing financial assistance
• coordinating national awareness material and media information.

We also participated in the National Management Group for equine influenza and Emergency Animal Disease Response Agreement panels to consider cost-sharing and categorisation questions that arose during the outbreak.

After Australia’s declaration of freedom from the disease on 30 June 2008, we initiated a review of our emergency response arrangements to ensure that lessons identified during the response are reflected in our Emergency Preparedness Strategy and Critical Incident Response Plan and other national emergency response arrangements.

Critical disease incidents other than equine influenza included a number of small anthrax outbreaks and an increased incidence of bovine ephemeral fever after weather favourable to the culicoides midge vector.

An incursion of Asian honey bees in the port of Cairns was detected in May 2007. Seven hives were found and destroyed in the response.

Other emergency response work was triggered by the detection of residues of the antibacterial drug tilmicosin in cattle kidney at levels above Australian and international standards, even when the product was used according to label directions. The department worked with industry and the company involved, resolving the incident and maintaining market access.

Testing in Australia detected residues of lead in pig livers. The Australian Quarantine and Inspection Service (AQIS) and Product Safety and Integrity Branch worked with the relevant state authorities to develop a list of piggeries that were affected. Liver and kidney of pigs from those piggeries were discarded. The contaminated source was removed from the feed chain.

The government–industry Transmissible Spongiform Encephalopathy Freedom Assurance Program continued to implement and strengthen Australia’s risk reduction measures for BSE and scrapie. Animal Health Australia commissioned a review of the program, leading to stakeholders being asked to commit to it for a further five years. Ruminant feeding restrictions were also reviewed, and enhancements are to be implemented in 2008–09. The department made detailed technical submissions to authorities in the United States and Japan to enable risk assessments of Australia’s BSE risk reduction measures. We expect those assessments to be completed in 2008–09.

We continued a high-level consultative forum with the Department of Health and Ageing to provide advice on coordinated policy responses to emerging zoonotic diseases (diseases that affect both humans and animals). Discussions covered avian and pandemic influenza, continued funding support for the Australian Biosecurity Cooperative Research Centre for Emerging Infectious Diseases, the National Collaborative Research Infrastructure Strategy, wildlife disease surveillance, and Chikungunya, Nipah and Rift Valley fever viruses. The Office of the Chief Veterinary Officer also participated in the Communicable Diseases Network Australia.

The department oversaw the national technical response to several aquatic animal disease events. These included the first Australian report of white tail disease (in giant freshwater prawns in Queensland). The disease agent was found in experimental animals in a confined facility.

We also investigated a report that Australian farmed prawns harbour an exotic strain of infectious hypodermal and haematopoietic necrosis virus. The investigation confirmed the presence of an exotic strain, and further work continued into 2008–09 to determine its distribution and pathogenicity. The virus does not affect humans.

The Consultative Committee on Marine Pest Emergencies supported the management of an incursion of Asian green mussel in Cairns in the six months to June 2008. The mussel, an invasive pest that can be transported on ships’ hulls, can cause heavy fouling of infrastructure and vessels and compete with commercially harvested species, particularly native mussels and oysters. A quarantine zone was established to limit vessel movements in and out of Cairns, and 132 vessels have been inspected on slipways since December 2007, with only one Asian green mussel recorded. Vessel inspections and other monitoring detected no further mussels, and the quarantine zone was removed on 30 May 2008. Queensland authorities continue to monitor for mussels to confirm that none are present.

We continued liaison with industries and governments on the ongoing problem of abalone viral ganglioneuritis in wild abalone, and provided the chair of a new Aquatic Animal Health Committee industry–government working group using the abalone industry as a model to improve the management of emergency aquatic animal disease incidents.

Aquatic animal health publications during the year included protocols for dealing with fish kills and an AQUAVETPLAN manual on decontamination.

Emergency plant pest and disease responses were triggered by detections of:

• potato spindle tuber viroid in a small area near Carnarvon, Western Australia, in June 2007 (currently under eradication)
• mango malformation disorder near Darwin in November 2007
• Cryptosporiopsis citri near Darwin in November 2007 (under eradication)
• mango leaf gall midge in northern Cape York in April 2008 (movement restrictions are in place)
• coconut rust mite in Darwin in May 2008 (established)
• orchid thrips in Belmont, New South Wales, in June 2008 (established).

An identification of eucalyptus stem canker in March 2008 was found to be caused by a native species of fungus.

Cost-shared programs continued during the year to eradicate citrus canker and red imported fire ant and five weeds from Queensland, branched broomrape (a parasitic weed) from South Australia and European house borer from Western Australia.

The program to eradicate citrus canker is close to completion, with no detection of citrus canker in the Emerald area of Queensland since June 2004. Replanting of commercial citrus in the area began from 1 July 2007, and eradication is expected to be declared in January 2009.

Measures to eradicate the red imported fire ant continued as planned. The numbers of fire ant nests detected within the quarantine area in the south-eastern suburbs of Brisbane remained very low and within acceptable limits. The eradication program has benefited from high public awareness within the local community.

The national program to eradicate grapevine leaf rust from the Northern Territory concluded successfully, and eradication was declared in September 2007.

A national contingency plan for eucalyptus rust has been completed. The plan is supported by a pest risk analysis by Biosecurity Australia and incorporates an agreed process for rapid diagnosis. A national workshop involving primary industries and government and industry environmental representatives in May 2008 highlighted the need for a common effort to plan responses to an incursion by this pest.

The workshop also provided a useful case study for development of the Australian Biosecurity System for Primary Production and the Environment (AusBIOSEC). A draft intergovernmental agreement for enhancing AusBIOSEC was endorsed in principle in April 2008. Once in force, the agreement would establish pre-agreed national cost-sharing and decision-making arrangements for emergency responses to nationally significant incursions of environmental and other pests.

Refining Emergency Plant Pest Response Deed

The OCPPO participated in a group convened by Plant Health Australia to develop policy on ‘normal commitments’, as defined in the Emergency Plant Pest Response Deed, and principles of containment in the national interest. Both issues needed the agreement of deed signatories before any further large-scale incursions. The policies have been completed and endorsed by deedparties. Lessons learned from the 2007 response to the outbreak of equine influenza will also be reviewed against the provisions and practices of the plant deed and its operational PLANTPLAN during mid-2008.

Improving national avian influenza preventive and risk mitigation strategies

The main objective of the department’s avian influenza (AI) program is to protect Australia’s favourable animal health status for notifiable influenza, including highly pathogenic avian influenza (HPAI), and strengthen Australia’s domestic preparedness and response capacities. Under the component of the program managed by the Product Integrity, Animal and Plant Health Division, the focus is on pre-border and post-border risk mitigation by strengthening national systems and building Australia’s preparedness and response capacity for AI through:

• enhanced surveillance of domestic poultry and wild birds
• enhanced field and laboratory diagnostic capacity
• disease modelling and risk factor research
• development of vaccination strategies and contingency supply arrangements
• targeted public communications and awareness raising.

A domestic surveillance taskforce was established after the department’s first government–industry avian influenza forum in June 2007. We also support an industry-led biosecurity consultative group set up after the forum; the group has produced a draft National biosecuritymanual covering all poultry production sectors.

A stakeholder workshop of poultry scientists and veterinarians in April 2008 gathered expert opinion on the likelihood of HPAI spread between Australian poultry farms. The meeting has aided the development of a simulation model designed to investigate the consequences of different scenarios and the effectiveness of vaccination and culling to control and eradicate outbreaks. This work will allow policymakers to target preparedness and surveillance activities to regions or subpopulations at greater risk of infection.

The second year of the enhanced national surveillance program for AI in Australian wild birds was completed in June 2008. We now have a better understanding of the AI viruses circulating in wild birds, which provide a critical early warning system.

The department did further disease modelling and risk factor research during the year. We developed a qualitative risk assessment of the potential for spread of HPAI between poultry production sectors, regions and structures, and a model that simulates the potential spread of HPAI between commercial poultry farms.

A spatial risk analysis to determine the most likely Australian entry points for AI indicated that the threat from introduction via migratory shorebirds returning from Asia was low, but the threat from waterfowl returning from New Guinea was low to medium.

We also completed a review of biosecurity practices in the fancy poultry exhibition sector, which provides a potential pathway for the dissemination of disease. A network analysis showed an extensive pattern of interactions involving breeders and agricultural shows throughout eastern New South Wales. The standard of biosecurity practices adopted by fancy poultry breeders varied greatly, with some adopting no biosecurity measures. We will develop and distribute sector-specific biosecurity information to increase industry awareness of the importance of biosecurity.

AAHL has transferred two major frontline diagnostic tools for detecting AI viruses and antibodies (real-time polymerase chain reaction and competitive enzyme-linked immunosorbent assay) to all state and territory government laboratories for use in routine AI surveillance. A project to enable the Australian National Quality Assurance Program to conduct a national proficiency testing program for the two tests has been completed. This will ensure that quality-assured diagnostic capability is in place in all jurisdictions at all times.

In capacity-building work with regional countries, the department cooperated with AusAID and the Food and Agriculture Organization of the United Nations to design a series of workshops. The workshops will build regional neighbours’ ability to communicate effectively with agricultural communities to prevent, prepare for and respond to emergency animal diseases, including AI.

Participating in relevant international forums

The department contributed to many international forums during 2007–08. Highlights included the following:

• An officer chaired World Organisation for Animal Health (OIE) Aquatic Animal Health Standards Commission meetings in October 2007 and March 2008. The meetings finalised text on trade standards for the OIE Aquatic Animal Health Code.
• An officer attended the 4th ASEAN Workshop on Control and Eradication of HPAI in Bali, Indonesia, in February 2008. The meeting further developed the strategic framework and supporting activities for HPAI control in member countries.
• With funding assistance from AusAID, the department began an Asia–Pacific Economic Cooperation (APEC) project to develop an AI ‘toolkit’. The web-based toolkit will provide guidance, examples and information on practical strategies for disease preparedness and control to APEC economies and countries in the region. It is scheduled to be launched in October 2008.
• The OCPPO coordinated the activities of the Asia and Pacific Plant Protection Commission, including input to draft regional standards.
• Australia is the current Vice Chair of the Pacific Plant Protection Organisation. The organisation’s executive committee met in Australia in August 2007 to progress the work program of the organisation. Participants undertook quarantine operations training while they were here.
• We continued to represent Australia’s interests in the development of international food standards through active participation in the Codex Alimentarius Commission and its subsidiary committees and taskforces.
• We represented Australia’s interests at the International Maritime Organization in the implementation of the International Ballast Water Convention and in action to address biofouling. This involved participation in meetings of the Marine Environment Protection Committee, which adopted two guidelines that support the convention and agreed that biofouling should be a new, high-priority work item.

International animal and plant health, animal welfare and food standards

The department advanced Australia’s interests in international animal health and welfare, plant health and food standards forums, and continued to build regional neighbours’ capacity to manage pests and diseases. This work improved Australia’s early warning systems and preparedness. We were also able to contribute to bilateral discussions dealing with significant technical market access problems.

Advancing Australia’s interests in standards forums and building regional capacity

The department continued its work to advance the national interest in international pest, disease and food standards forums, and to contribute to regional neighbours’ capacity to manage plant and animal pests and diseases.

An Australian delegation led by the Australian Chief Veterinary Officer participated in the World Organisation for Animal Health (OIE) General Session (Paris, May 2008). We also continued our contribution to the OIE working group on wildlife diseases, including at a meeting in Paris in January 2008.

Australia participated in the Animal Health Quadrilateral Group at meetings in Canada, the United States and France, and in out-of-session work.

Animal health capacity-building activities in neighbouring countries included:

• participation in an OIE–AusAID workshop on veterinary legislation and governance in South-east Asia
• providing expert advice on surveillance and control of foot-and-mouth disease to the Malaysia–Thailand–Myanmar Epidemiological Network
• taking part in the OIE Performance of Veterinary Services evaluation of Brunei Darussalam.

We convened a Bangkok workshop of countries helping to develop a regional animal welfare strategy for Asia and Oceania that outlines goals to meet international animal welfare guidelines in sea transport, land transport, humane slaughter and killing for disease control. The strategy was endorsed by the 172 countries of the OIE in May 2008 and is now a model approach for other regions. This effort built on the department’s earlier work with the Gulf Cooperation Council to develop an animal welfare plan in the Middle East (reported in the 2006–07 annual report). In March 2008, we helped the United Arab Emirates develop animal welfare regulations and penalties—a priority task identified in the Gulf Cooperation Council plan.

In work on aquatic animal health and welfare, departmental officers:

• chaired the OIE Aquatic Animal Health Standards Commission’s October 2007 and March 2008 meetings, which finalised text on trade standards for the OIE Aquatic Animal Health Code (adopted by the OIE in May 2008)
• chaired the Network of Aquaculture Centres in Asia–Pacific (NACA) regional advisory group on aquatic animal health
• provided input into the first OIE–NACA regional workshop on aquatic animal health (Bangkok, March 2008)
• helped to establish the Regional Core for Aquatic Animal Health to be operated jointly by the OIE, its World Animal Health Information System, and NACA
• collaborated with NACA to develop a regional version of the Aquatic Animal Disease Identification Field Guide
• worked with the International Maritime Organization in multilateral negotiations on ballast water and biofouling to protect Australian interests in the setting of international standards.

In the area of plant health, the department continued to work with the International Plant Protection Convention (IPPC). The Chief Plant Protection Officer is Australia’s national contact point for the IPPC, and an Australian secretariat and a departmental steering group guide interaction with the convention and national and international stakeholders, ensuring that Australia meets its obligations to exchange information and implement the convention.

As Australia’s national IPPC contact point, we responded to 75 queries and notices during the year and issued notices of noncompliance on behalf of AQIS. We also contributed to the development of international diagnostic protocols through input to the IPPC.

The Australian secretariat engaged stakeholders in standards setting by working through the Plant Health Committee and by convening a workshop in Melbourne in July 2007. Input from industry, regulators and policymakers ensures a close match between international standards and Australian production and market access requirements.

In April 2008, the IPPC’s Commission on Phytosanitary Measures approved guidelines on the establishment of areas of low fruit fly prevalence, which had immediate application to market access for a number of Australian horticulture crops. An Australian delegation led by the Australian Chief Plant Protection Officer participated in the commission meeting in Rome in April 2008. Dr Bill Roberts was elected to the commission’s bureau in April 2008 as the representative of the South-west Pacific region, strengthening regional influence in IPPC governance. A departmental officer also participated in the South-west Pacific regional workshop on draft IPPC standards.

Biosecurity Australia and departmental officers took part in annual plant health quadrilateral meetings with their counterparts from New Zealand, Canada and the United States. The meetings discussed IPPC standards, recent incursions of exotic pests and responses to them, collaborative activities during the year, and other areas of common interest.

During the year, we contributed to regional plant protection activities, including the development of regional standards for phytosanitary measures, two of which were adopted by the Asia and Pacific Plant Protection Commission meeting in China in August 2007. International Agricultural Program support allowed the Office of the Chief Plant Protection Officer to host a meeting of the Executive Committee of the Pacific Plant Protection Organisation in Sydney in July 2007, bringing in seven Pacific island country representatives. A major outcome of the meeting was the development of a business plan for the organisation.

We continued to build regional plant and animal health capacity, mainly through AusAID’s Sanitary and Phytosanitary Capacity Building Program (SPSCBP). In plant health, the focus has been on establishing and maintaining specimen-based pest records, including training to develop pest surveys and to identify and curate pest specimens. These records help Australia to determine offshore pest risks and facilitate trade with our neighbours. In animal health, the focus has been on developing epidemiological skills and networks.

SPSCBP activities in 2007–08 included:

• production of translations of a booklet introducing the international Agreement on the Application of Sanitary and Phytosanitary Measures (the SPS Agreement), and the links between the agreement and trade
• presentation of recommendations on data standards and the management of primary plant health information to the ASEAN Plant Health Cooperation Network and the ASEAN Sectoral Working Group on Crops (Malaysia, July 2007)
• gaining ASEAN approval in July 2007 for a pilot regional crop pest and disease diagnostic network
• completion by ABARE of an economic assessment of approaches to managing livestock disease risk in the ASEAN region
• establishment of an epidemiological network (‘Epinet’) to support the foot-and-mouth disease campaign in the Myanmar–Thailand–Malaysia shared zone
• regional training workshops on awareness of SPS issues for researchers and representatives of livestock exporting associations (Philippines, November 2007); plant feeding mites (Malaysia, May 2008); the development of plant pathogen collections (Thailand, January 2007); the development of pest insect collections (Sabah, September 2006); pest and weed risk analysis and market access (Brunei, March 2007); and integrated approaches to the management of livestock diseases (Vietnam, November 2007; Philippines, March 2008).

Several bilateral capacity-building programs delivered with funding from AusAID complemented the larger SPSCBP. These included:

• a training course in risk mitigation for plant quarantine (Thailand, May 2008)
• a workshop on the digitisation of specimen-based records (Thailand, September 2008)
• a workshop on pest collection management (Philippines, September 2007)
• exchange visits between Australian and Filipino entomologists to develop a key to identify pest scarab beetles of the Philippines (October 2007 and April 2008)
• a training course on the use of Lucid software to develop keys to Philippines plant pathogens (Brisbane, October 2007).

AusAID’s March 2008 review of the SPSCBP recommended high-priority activities for the remainder of the program’s life. AusAID invited the department to provide strategic input to the development of future capacity-building programs.

During the year, the department continued to influence international standards by coordinating Australian input to the Codex Alimentarius Commission. This work included:

• hosting and chairing the Codex Committee on Food Import and Export Inspection and Certification Systems (Surfers Paradise, Queensland, November 2007)
• participating in Codex activities in such areas as residues, additives and contaminants; inspection and certification; antimicrobial resistance; labelling; hygiene; and quality standards for food in international trade
• developing whole-of-government positions on all technical and policy issues discussed in Codex
• maintaining communication with stakeholders through the annual Codex Australia Industry Stakeholder Forum (Sydney, August 2007), the Codex website (www.codexaustralia.gov.au) and three editions of the Setting the Standard e-newsletter (October 2007, February 2008 and June 2008).

In other international work the department took part in international chemicals regulation through three multilateral chemical treaties:

• Stockholm Convention on Persistent Organic Pollutants, including on lindane and endosulfan, which are pesticides of interest to the Australian agricultural sector under consideration for nomination
• Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, including participation in the convention’s Conference of the Parties and Chemical Review Committee
• Montreal Protocol on Substances that Deplete the Ozone Layer, including on technical and policy aspects of the ongoing use of methyl bromide for quarantine and non-quarantine fumigation.

Enhancing Australia’s early warning systems and preparedness

The department worked to strengthen Australia’s early warning systems and preparedness against incursions of exotic pests and diseases, particularly those posing particular threats to our agricultural and food processing industries.

In work on avian influenza, the National Avian Influenza Vaccination Expert Group developed a decision support tool to enable rapid decision-making on the use of vaccine in an AI emergency. The group reviewed advances in vaccine technology for relevance to Australian conditions, developed policy documents for the use of AI vaccine outside disease control areas, and used epidemiological modelling to considered how vaccination might influence the spread of AI in Australia.

We helped to deliver the May 2008 South-east Asian Bioterrorism Workshop (Multi-sectoral Policy Responses to International Bioterrorism) in Kuala Lumpur, Malaysia. Australia, Japan, Malaysia and the United States arranged and delivered the workshop for invited South-east Asian countries. The workshop examined bioterrorism threats to human health and agriculture.

A review of the Securing the Future program supported its continuation, and the program has been extended for one year (2008–09). For a full report on program activities and achievement of performance measures, see Table 14, Output 5 administered items.

In work on preparedness for foot-and-mouth disease (FMD) and other livestock diseases, we continued quadrilateral (four-country) collaboration on emergency management and animal health surveillance. Our participation in a joint exercise comparing FMD models led to two joint publications. We also took part in an international study to test Australia’s capacity for modelling the windborne spread of the disease agent, and began work with Animal Health Australia, industry, and state and territory governments to consider future arrangements for our FMD vaccine contingency supply and to establish arrangements to ensure supply of anthrax vaccine.

Feral pigs have long been recognised as potentially important during emergency animal disease (EAD) outbreaks, including outbreaks of FMD, and the department has helped to develop contingency plans for their management. In 2007–08, the OCVO completed a study which indicated that feral pig populations will expand in remote areas of northern Australia in the future. In November 2008, the OCVO will assist in an EAD exercise that simulates an outbreak of classical swine fever in feral populations.

In other work to improve Australia’s early warning capability, the department:

• coordinated the National Sentinel Hive Program at 20 Australian ports
• investigated wild-bird die-offs and provided monthly AI surveillance reports to industry and governments.

Contributing to bilateral discussions on technical market access problems

In March 2008, an outbreak of tick fever (bovine babesiosis) was detected in cattle in New Caledonia. The Australian Chief Veterinary Officer coordinated Australian assistance to the New Caledonian authorities. The disease has been contained, and the response is on track to achieve eradication.

The department’s officers provided science-based advice to the OIE throughout the year on OIE standards, consistent with Australia’s position in market access negotiations.

We also reported on regional capacity-building for Australia–Indonesia–PNG–Timor Leste quadripartite arrangements (March 2008) and the Thailand–Australia SPS Working Group (August 2007), and briefed representatives in negotiations for an ASEAN–Australia free trade agreement.

Advising trading partners and international organisations on Australia’s plant and animal health status

The department provided timely and accurate advice on Australia’s pest and disease status to trading partners and international plant and animal health organisations.

On 25 August 2007, Australia notified the OIE of the outbreak of equine influenza. This met our obligations as an OIE member to notify the organisation within 24 hours. The OIE made the notification available to trading partners through its distribution list, and provided updates as the eradication effort went ahead. At the OIE General Session in May 2008, we made a statement about the success of the eradication program.

Australia also notified the OIE of the finding of a new strain of bluetongue virus in the Northern Territory as a result of routine surveillance. The virus caused no disease.

We continued regular reporting on Australia’s status for aquatic animal diseases listed by the OIE and the Network of Aquaculture Centres in Asia–Pacific. We reported on the occurrence of Edwardsiella ictaluri (a non–OIE-listed disease which can cause enteric septicaemia of catfish) in a contained research facility, and we notified the OIE of the first occurrence of an OIE-listed freshwater prawn disease in Australia.

We continued to use the IPPC portal to convey advice on changes in Australian plant pest status.

Outlook for 2008–09

In 2008–09, we will continue our work to protect Australia from exotic disease incursions and their consequences. The Quarantine and Biosecurity Review, expected to be completed in the second quarter of 2008–09, may influence future priorities for animal and plant health.

Our avian influenza (AI) program will focus on preparedness and response capabilities at three levels:

• pre-border activities to deal with the problem at source and give early warning of threats, including helping regional neighbours use effective prevention, response, management and control strategies
• border activities, including AQIS screening for poultry and poultry products at points of entry
• post-border activities, including additional surveillance for AI in poultry and wild birds, work with industry to improve biosecurity, greater diagnostic capacity, research into risk factors, and development of national vaccination protocols and access arrangements.

We will also collaborate with the Department of Health and Ageing and other national agencies on human influenza pandemic preparedness.

In work on other animal diseases, we expect to:

• analyse and review the response to the equine influenza outbreak to improve the nation’s EAD preparedness
• renegotiate Australia’s emergency foot-and-mouth disease vaccine bank contract arrangements to ensure the supply of vaccine in an emergency
• develop a national honey bee disease surveillance program and cost-sharing arrangements
• develop national-scale disease models to study incursion scenarios for EADs
• participate in further evaluations of Australia’s bovine spongiform encephalopathy risk reduction measures by overseas authorities.

In the area of plant health, we will support health capacity-building at the national and regional levels, including work on diagnostic tools and protocols. These activities will be aligned to strategic priorities in the National Fruit Fly Strategy and the National Plant Health Strategy.

Important areas for collaboration with industry will include:

• a review of the SAFEMEAT incident response manual, including an examination of its compatibility with the National Food Incident Response Plan
• ‘Pigcatcher’, a benchmarking exercise planned for March–April 2009 to measure the pig industry’s capacity to trace stock
• development of legislative measures for the inspection, testing and treatment of imported animal feeds for residues or contaminants to protect food safety.

In the area of animal welfare, we expect to:

• convene Australia’s first AAWS International Animal Welfare Conference in August–September 2008
• conduct an external review of AAWS processes and achievements from 2005–06 to 2008–09
• improve the development, review and consultation processes for the Australian Standards for the Export of Livestock
• continue the development of national standards and guidelines for exhibited animals
• develop principles and codes of practice for ornamental fish, wild-caught aquatic animals, aquaculture and recreational fishing
• sponsor the finalisation of Australian standards and guidelines for land transport of livestock
• coordinate the consistent implementation of the Model Code of Practice for the Welfare of Animals (Pigs)
• work with New Zealand on a joint OIE Collaborating Centre on Animal Welfare and Bioethics
• continue work to achieve consistent animal welfare outcomes through the application of national animal welfare standards in all states and territories.

Table 13
Output 5 performance, 2007–08
Output 5 objective To minimise the impact of pests, diseases and contaminants on Australian agriculture, fisheries and forestry, and to contribute to the health and welfare of production animals, and the health and protection of plants.
Output component: A stronger framework and capacity for managing and responding to pest, disease and contaminant emergency incidents and continued maintenance of Australia’s highly favourable pest and disease free status
Performance measures Practical support from state and territory governments and non-government stakeholders for the implementation of animal health, plant health, animal welfare and production input risk management. The early intervention and response to emergency incidents. The continued progress in eradication campaigns. Positive feedback on a national simulation exercises through formal evaluation processes. Performance We strengthened incident management and response by: nationally coordinating a successful emergency response to contain and eradicate a large outbreak of equine influenza improving national diagnostic capacity for avian influenza and a range of emergency plant pests improving our preparedness and applying the lessons learned from national simulations and real incidents progressing the National Animal Health Laboratory Strategy providing support to laboratory simulation Exercise Lester (a component of Exercise Hippolytus) promoting international collaboration through the Quadrilateral Emergency Management Group on disease modelling, carcase disposal, foresighting, compartmentalisation and the further development of an international animal health reserve collaborating with the Quadrilateral Plant Health Collaboration Group to share innovations and knowledge in diagnostics, surveillance and pest risks funding and participating in emergency animal disease (EAD) awareness workshops for private veterinary practitioners contributing to the AAHL Strategic Policy Group contributing policy and technical advice to new and revised AUSVETPLAN manuals and the update of PLANTPLAN adding 50 people to the now 350-strong pool of accredited public relations officers trained for roles in major pest and disease emergencies working with Plant Health Australia to deliver training and awareness activities for all Australian governments and industry signatories to the Emergency Plant Pest Response Deed implementing the Emergency Plant Pest Response Deed to ensure that the Australian Government’s obligations are fully met capturing lessons from each emergency response for analysis and inclusion in PLANTPLAN, AUSVETPLAN and other plans working with Plant Health Australia to develop nationally agreed guidelines on the concept of containment in the national interest, ‘normal commitments’, and improved processes for pest categorisation gaining national agreement, in principle, on national emergency response arrangements for environmental and social amenity pests and diseases through the AusBIOSEC project.
Output component: International animal health, plant health and food standards that decrease the threat of pests and diseases from countries impacting on Australian agricultural, fisheries and forestry industries and contribute to the resolution of technical market access problems and strengthening of Australia’s own domestic food standards setting arrangements
Performance Performance measures The provision of timely and accurate advice to trading partners and international forums. The degree to which Australia’s representations are accepted in bilateral or multilateral negotiations. The extent to which the outcome of bilateral and multilateral negotiations match Australia’s objectives. Progress in developing the ability of neighbouring countries to manage their agricultural, fishery and forestry pests, diseases and contaminants. Performance During the year, the department influenced international standards through: participating in the World Organisation for Animal Health (formerly the Office International des Epizooties, or OIE), including by commenting on technical standards, attending the annual general session, membership of three ad hoc and working groups, and presidency of the Aquatic Animal Health Standards Commission, the OIE Regional Commission for Asia, the Far East and Oceania, and the OIE Subcommission for Foot and Mouth Disease in South East Asia participating in the Animal Health Quadrilateral Group at meetings in Canada, the United States and France, and in out-of-session work participating in the Plant Health Quadrilateral Group at its meeting in Canada and in out-of-session work, including collaborative projects participating in the Food Safety Quadrilateral Group in Canada developing whole-of-government positions on all technical and policy issues discussed in Codex, and thus contributing to international standards that are based on sound science and promote fair practices in the food trade chairing the Codex Committee on Food Import and Export Inspection and Certification Systems participating in the International Plant Protection Convention (IPPC), including coordinating national comments on draft standards, participating in the Commission on Phytosanitary Measures and working with members of the Pacific Plant Protection Organization and the Asia–Pacific Plant Protection Commission on regional plant protection matters providing feedback on the IPPC evaluation report and a review of international standard-setting processes, and providing invited comments to improve the development of international diagnostic protocols participating in the work of the International Maritime Organization relating to standards for international ballast water and sediments and the development of guidelines for the management of biofouling. Administered items Nineteen administered items contributed to Output 5. See Table 14 for performance reporting on individual items

Table 14
Output 5 administered items, 2007–08
Agriculture and Veterinary Chemicals Minor Use Program	2007–08: $0.13 million
Performance measure Improved access for the community to minor use agricultural and veterinary chemicals through reduced regulatory impediments. Performance The Minor Use Liaison Office (MULO), a joint initiative between the department and the Australian Pesticides and Veterinary Medicines Authority, was established on 1 August 2006. The office works with stakeholders to address the minor use issue. Permits have been issued for the herbs and spices, olive, industrial hemp, cutflower and vegetable industries. In 2007–08, the MULO: developed a national minor use strategy after consultation with stakeholders attended the annual priority-setting workshop for counterpart United States and Canadian agencies participated in a collaborative trial program funded by the United States Foreign Agricultural Service participated in the Global Minor Use Summit (Rome, December 2007), which led to the establishment of a Global Minor Use Portal and a new Minor Use Working Party Group within Codex, with Australia as a co-chair.
Agricultural and Veterinary Chemicals (Administration) Act 1992	2007–08: $1.45 million
Performance measure Compliance with legislation in the collection and disbursement of monies, which fund the objectives of Australian Pesticides and Veterinary Medicines Authority (APVMA). Performance APVMA has a major role in establishing maximum residue limits and other limits for agricultural and veterinary chemicals in food. In 2007–08, APVMA funds were collected and dispersed in accordance with the Agricultural and Veterinary Chemicals (Administration) Act 1992. Funding was significantly reduced compared with previous years, as the funding mechanism has been changed so that APVMA is now funded directly, in accordance with the Financial Management and Accountability Act 1997. As result of this change, funding through the Agricultural and Veterinary Chemicals (Administration) Act 1992 will be discontinued.
Funding Act 1996	2007–08: $6.08 million
Performance measure Compliance with legislation in the collection and disbursement of monies, which fund the objectives of Animal Health Australia. Performance Commonwealth legislation imposes levies on a range of rural commodities and products to fund work by Animal Health Australia, which receives levies from cattle, sheep, lamb and goat exports; sales of cattle; milk production; poultry production; and processing of pigs at slaughter. The department disbursed $6.08 million during the year in accordance with the Australian Animal Health Council (Live-stock Industries) Funding Act 1996, within 7% of budget.
Australian Animal Welfare Strategy	2007–08: $1.31 million
Performance measures Increased community awareness and acceptance of the importance of sound animal welfare standards and practices. Enhanced scientific knowledge for the development of animal welfare codes and practices. New national reporting and monitoring systems for animal welfare. Performance During 2007–08, the department continued to build community awareness and commitment to the Australian Animal Welfare Strategy (AAWS) through presentations, news articles, our website, special events and participation in conferences. The AAWS National Communication Strategy Implementation Plan has been developed. An independent animal welfare website is a key instrument of the strategy. With the advice of the AAWS Advisory Committee and the assistance of AAWS working group members and other stakeholders, we supported 27 projects financially to progress implementation of the AAWS. Highlights included: convening the 3rd AAWS national workshop in December 2007 to review sectoral and cross-sectoral progress in implementing the AAWS National Implementation Plan completing a stocktake of Australia’s animal welfare education and training courses supporting the development of a model to rank the relative humaneness of pest animal control methods supporting research into humane feral camel fertility control providing advice on how to use existing institutional arrangements to improve Australia’s animal welfare research capacity and to gain recognition of animal welfare as a rural research and development priority managing arrangements for the AAWS international animal welfare science conference in August–September 2008 completing a project that met the Primary Industries Ministerial Council’s requirement to ‘develop proposals for a nationally consistent approach to the implementation and enforcement of Australian animal welfare standards’ including consistent implementation of the revised Model Code of Practice for the Welfare of Pigs and the new Australian Welfare Standards and Guidelines for Land Transport.
Citrus Canker Eradication Program	2007–08: $0.64 million
Performance measure Delivery of agreed activities as specified in the national eradication strategy to achieve eradication of this virulent bacterial disease, to mitigate its potential impact on Australia’s citrus industry. Performance The program to eliminate citrus canker from the Emerald region of Queensland remains on track. Progress in the program is measured through reviews by the national consultative committee, including the National Management Group, and by external review. Replanting of commercial citrus began in the quarantine zone on 1 July 2007. Inspection has continued every 90 days to ensure freedom from regrowth and freedom from disease. The program was underspent by 11.23%, and the saving has been carried over to 2008–09, as agreed by the Consultative Committee on Emergency Plant Pests. If no citrus canker is detected, eradication will be declared in early 2009.
Commonwealth contribution to the operating costs of Animal Health Australia (AHA)	2007–08: $1.23 million
Performance measure Delivery of agreed annual program and activities outlined in the AHA strategic plan. Performance The department is an active member of AHA, particularly in relation to governance and strategic planning. We analyse and consider AHA’s business plans, including the annual operational plan. A departmental officer was the Australian Government representative at the AHA annual general meeting on 8 November 2007 and a special general meeting on 29 May 2008. The Emergency Animal Disease Response Agreement (EADRA) is an important element in the department’s relationship with AHA. All parties continue to support the agreement strongly, seeing it as a cornerstone of the national animal health system. During 2007–08, many of AHA’s core programs were suspended as resources were diverted to manage the response to the 2007 equine influenza outbreak.
Eradication of the Red Imported Fire Ant	2007–08: $7.00 million
Performance measure Delivery of agreed baiting and surveillance activities as specified in the national eradication strategy to achieve eradication of this invasive pest, to reduce their potential impact on Australia’s agricultural sector. Performance Progress for this item is measured through review by the national consultative committee and by external review. The results are reported to the Natural Resources Management Ministerial Council. The eradication program remains on track and is being delivered in line with the emergency response plan agreed by the council. Isolated outlier colonies have been found and treated. Community awareness of the program, which is vital to success, remains high. Around a hundred ant colonies were found in south-east Queensland and destroyed. A rewards program in May and June 2008 found 30 additional nests adjacent to known infested sites, which indicates that the program is continuing towards successful eradication. No colonies were found around the unrelated outbreak site at Gladstone.
Exotic Disease Preparedness Program	2007–08: $0.29 million
Performance measure Delivery of regular reports from state governments and from the Wildlife Disease Network as per approved contracts. Performance The Wildlife Exotic Disease Preparedness Program improves emergency animal disease (EAD) preparedness by developing strategies to monitor, prevent, control or eradicate EADs in wildlife and feral animals. In 2007–08, five projects with a total value of $0.14 million were completed, and one project funded at $0.16 million continued into 2008–09. The program emphasises improving wildlife surveillance through the Australian Wildlife Health Network. The network’s website (www.wildlifehealth.org.au/AWHN) and database report current, useful and appropriate wildlife health information. The department receives progressive and final reports on program projects, which in 2007–08 included further research into the movement of birds across Torres Strait, improving the characterisation of avian influenza virus subtypes in the laboratory, and epidemiological investigations in Australian fur seals.
FedLink Supplementation for APVMA	2007–08: $0.10 million
Performance measure Payment to APVMA to allow implementation of FedLink access. Performance This project is being implemented by APVMA to strengthen the security of its electronic communications with other government agencies. successfully accessed the Fedlink service in 2006. The 2007–08 payment of $0.10 million (2006–07: $0.09 million) funds ongoing access to the Fedlink service.
International Organisations Contributions	2007–08: $0.26 million
Performance measure Payment of Australian Government membership to the World Organisation for Animal Health to allow Australian Government representation in this important forum. Performance The department has paid Australia’s annual membership contribution to the World Organisation for Animal Health.
National Cattle Disease Eradication Trust Account Act 1991	2007–08: $10.48 million
Performance measure Compliance with legislation in the collection and disbursement of monies, for the purposes of the National Cattle Disease Eradication Special Account. Performance The funds in the National Cattle Disease Eradication Special Account have been raised through industry levies and charges and through investments of account funds. The account paid for activities related to surveillance for and eradication of bovine tuberculosis. With the end of the Tuberculosis Freedom Assurance Program in December 2006, the cattle and buffalo industries asked that remaining funds in the National Cattle Disease Eradication Trust Account ($10.48 million) be transferred into the more broadly based Cattle Disease Contingency Fund, which is managed by trustees on behalf of the Australian cattle industry. Parliament amended the National Cattle Disease Eradication Account Act in 2006 to enable this to happen. A deed of transfer was agreed by the parties and signed in June 2007 to ensure transparent accountability arrangements for the use of the funds. Transfer of funds occurred on 19 June 2007. During 2007–08, the funds were managed in accordance with the agreed deed of transfer.
National Livestock Identification System	2007–08: $4.67 million
Performance measure Establishment of a nationally integrated system for livestock traceability as a management tool to deal with animal disease emergencies and food safety issues associated with meat. Performance The Australian Government has committed $20 million to the National Livestock Identification System (NLIS) over four years. This funding has supported activities that strengthened the traceability capability for cattle, sheep, goats, pigs and alpacas in Australia. Activities in 2007–08 included a national benchmarking traceability exercise for the sheep industry (Sheepcatcher 1). Recommendations from the exercise are being implemented and will improve sheep traceability in the event of a disease or food safety emergency. The contracts with Australian Pork Limited, Australian Alpaca Association Ltd and Meat and Livestock Australia and the funding agreements with states are ongoing. All funds will be expended by the end of 2008–09, except NLIS (Alpacas), which will be expended by the end of the 2009–10 financial year.
National Residue Survey Administration Act 1992	2007–08: $9.14 million
Performance measure Compliance with legislation in the collection and disbursement of monies, which fund the objectives of the National Residue Survey. Performance The National Residue Survey (NRS) supports market access for participating industries by providing residue-testing services and scientific and policy advice on residues and contaminants. The NRS also supports industries’ quality assurance projects and supports industry and government in resolving residue-related trade incidents. The department is responsible for the administration, collection and disbursement of levies imposed by legislation on a range of commodities and products to pay for NRS activity. The collection and disbursement of these funds in 2007–08 was in compliance with the relevant legislation.
Other Exotic Disease Preparedness Program—Bill 1	2007–08: $0.56 million
Performance measure Delivery of agreed activities that enhance Australia’s preparedness for exotic animal diseases, including the ongoing involvement of non-government veterinarians in national emergency animal disease preparedness and surveillance activities through the Australian Veterinary Reserve. Performance Australian Veterinary Reserve members contributed to the response to the 2007 outbreak of equine influenza in Queensland and New South Wales. A number of planned Rapid Response Team (RRT) activities were suspended because of the outbreak. Activities planned for 2007–08 were deferred to 2008–09, including additional workshops, recruiting of new members and a local disease control centre exercise. An RRT workshop was held in Adelaide in May 2008 to review the effectiveness of the RRT during the response. The RRT Advisory Group met twice during 2007–08, and a number of planning meetings and pre-exercise activities were conducted for exercise Wild Boar.
Other Exotic Disease Preparedness Program—Bill 2	2007–08: $0.07 million
Performance measure Awareness of exotic animal disease in the veterinary community through delivery of practitioner courses developed by the states and through preparation of news bulletins in the Australian Veterinary Journal. Performance During the year, accurate and useful EAD Bulletins were published quarterly in the Australian Veterinary Journal and a quarterly Exotic Animal Disease Newsletter was published, generating greater awareness of exotic animal disease issues among veterinarians and other animal health workers. The program also supported: state-run practitioner workshops on diagnostic procedures for exotic animal diseases, resulting in greater national field veterinary capacity (workshops were held in Queensland, Victoria, South Australia and Western Australia) the attendance of a field veterinarian at a rabies workshop in the United States a training course in field pathology techniques for wildlife.
Payment to CSIRO—Contribution to the operating costs of the Australian Animal Health Laboratory	2007–08: $7.15 million
Performance measure Delivery of agreed annual program and activities that enhance diagnostic capability for emerging animal diseases in accordance with the memorandum of understanding. Performance The department funded the Australian Animal Health Laboratory’s core operating costs of $7.15 million in 2007–08. Activities to enhance diagnostic capability included: maintaining and operating a microbiologically secure facility maintaining and operating a diagnostic service for EADs (including exotic and new and emerging diseases) providing technical advice and support to a range of government bodies (including the department and the states and territories) providing education and training in support of pre-border, border and post-border quarantine.
Securing the Future: Protecting our Industries from Biological, Chemical and Physical Risks	2007–08: $2.87 million
Performance measure Completion of agreed activities to enhance Australia’s animal and plant health infrastructure and capacity to respond to emergencies including: through critical infrastructure protection activities improved biosecurity awareness improved national preparedness for emergency pests and diseases implementation of obligations under the international conventions for chemicals enhancement of the national capacity to respond to emergency animal diseases enhanced emergency pest response capacity and ability to define plant health status enhancement of diagnostic capacity and national plant health surveillance capacity mitigation of the impact of invasive species through improved early detection and rapid response to plant health invasive species. Performance During 2007–08, we satisfactorily completed work on many agreed activities under the Securing the Future budget initiative, including: Biosecurity awareness providing scholarships to support four masters students in the Veterinary Public Health Management Program at Sydney University providing information to peri-urban and culturally and linguistically diverse communities to increase their level of biosecurity awareness National preparedness and response capacity for emergency diseases and pests contributing to the effective governance of Plant Health Australia, and meeting the Australian Government’s 2007–08 subscription of $750 000 working to update AUSVETPLAN and AQUAVETPLAN manuals and to produce other additional reference material Diagnostic capacity building and testing diagnostic capacity for terrestrial and aquatic animal diseases increasing the content and quality of information in the Australian Plant Pest Database and ease of access to the database producing 11 diagnostic protocols and diagnostic tools for emergency plant pests, and updating the online Pest and Diseases Image Library (www.padil.gov.au) with diagnostic images of emergency plant pests awarding eight training scholarships for diagnosticians from national and state agencies to develop skills in important plant diseases and pests commissioning validation and verification of 12 diagnostic protocols for endorsement as national diagnostic standards Plant and animal health surveillance capacity providing support for the Australian Wildlife Health Network managing wild bird surveillance for avian influenza enhancing the national plant surveillance reporting tool continuing a hazard site surveillance protocol in the major urban area of each of seven jurisdictions, to identify high-risk sites for the introduction and spread of new plant pests.
EADRA—Equine influenza	2007–08: $77.07 million
Performance measure To contain and eradicate an outbreak of equine influenza. Performance Equine influenza was contained to certain areas of New South Wales and Queensland. Australia was declared provisionally free of the disease on 14 March 2008 and free of the disease on 30 June 2008.
Quarantine Research and Preparedness Plan	2007–08: $0.48 million
Performance measures Develop and implement a National Fruit Fly Strategy Planning to increase capacity for on-farm biosecurity has progressed Performance Funding agreements have been implemented with external consultants to: establish an implementation committee for implementing the strategy consolidate a single document of diagnostic protocols, tools and processes used in Australia to identify and diagnose fruit fly species conduct analysis of gaps and needs in research, diagnosis and tool development to address fruit fly risks, as identified in the strategy establish a national remote microscopy network for fruit fly diagnostics document and consolidate contingency plans for specific fruit flies of economic importance develop a method of analysis for application of systems approaches to fruit fly control in collaboration with the Australian Centre of Excellence for Risk Analysis develop and implement an on-farm biosecurity model that engages farmers, growers, rural communities and production regions in planning and delivering better biosecurity outcomes.

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Quarantine and Export Services

The department delivers Output 6 through the Australian Quarantine and Inspection Service (AQIS).

Priorities

• Support Australian quarantine integrity through appropriate border control and post-entry quarantine arrangements.
• Continue to implement and administer quarantine controls at Australia’s borders to minimise risk, and respond to potential quarantine threats.
• Maintain the integrity of Australia’s export certification system by providing export inspection, auditing and verification services to ensure compliance with importing country requirements.
• Raise awareness of quarantine and export requirements and promote compliance with them.
• Take a partnership approach with stakeholders to deliver a high level of service and to support the international regulatory framework that governs trade between nations.
• Maintain export market access for Australian agricultural and food products by providing certification services.

Highlights

• AQIS officers deployed to assist Callinan inquiry into equine influenza outbreak.
• Continuing access to overseas markets enabled after audits by United States, European Union, Russia, Taiwan and Indonesia.
• Five additional export meat establishments gained access to Chinese market.
• Supervised Halal Program facilitated market access for meat products to Muslim countries.
• Gained United States recognition of Australian systems for managing contamination in ground beef.
• Australian Fumigation Accreditation Scheme won Ozone Layer Protection Award for reducing methyl bromide use.
• Phase 1 of ICON ePermits project delivered, allowing online lodgment of applications for import permits.
• National Coordination Centre for Entry Management established in Adelaide.Significant detection and control of exotic pests and diseases by Northern Australia Quarantine program.
• Indigenous communities engaged for pest and disease surveillance across coastal northern Australia.
• Avian influenza surveillance and reporting program implemented in Papua New Guinea.

Quarantine integrity

Following the outbreak of equine influenza in August 2007, AQIS officers assisted the commission of inquiry (the Callinan inquiry) established to investigate the outbreak. After the Australian Government accepted the recommendations of the inquiry, AQIS reviewed and amended its procedures for biosecurity at quarantine stations and for the quarantine clearance of horses (see box, ‘Quarantine and biosecurity strengthened after equine influenza outbreak’, p. 144).

During 2007–08, AQIS continued to support Australian quarantine integrity by providing border control arrangements for incoming passengers, cargo, mail, aircraft and ships, and through post-entry plant and animal quarantine arrangements.

AQIS quarantine programs maintained strong links and partnerships with the Australian importing industry, with other Australian and state government stakeholders, and with the Australian community in order to support positive quarantine outcomes.

To further increase capacity to support effective quarantine decisions, AQIS quarantine programs implemented a structured approach to developing instructional material, training, review and improvement of business processes, and verification. Information technology systems are being developed to support the approach.

During 2007–08, AQIS conducted quarantine clearance of:

• over 12 million arriving passengers at international airports
• the external surfaces of over 1.8 million sea cargo containers
• over 2.4 million high-volume, low-value air cargo items
• the external surfaces of more than 360,000 air cargo containers
• over 13,500 incoming sea vessels
• more than 130 million incoming mail items.

AQIS made over 480,000 seizures at international airports and more than 100, 000 seizures at international mail centres.

Special quarantine clearances during 2007–08 included those required for major military exercises (Talisman Sabre 2007, Southern Frontier, Exercise Kakadu and Pitch Black) and the APEC Summit:

• Talisman Sabre—deployed 24 staff in 5 countries to clear 13,000 crew on 12 vessels
• Southern Frontier—cleared 500 crew on 24 jets and cargo planes
• Exercise Kakadu—cleared 1,500 crew in a six-week period, involving 10 ships from 10 countries
• APEC Summit—airport clearances of 4,000 participants in the summit included 21 world leaders, 350 business leaders and 42 trade and foreign ministers from 20 different economies.

The Operational Science Program continued its work with CSIRO to implement a remote diagnostic service in regional offices and remote AQIS sites. The system allows rapid preliminary identification of insect pests intercepted at those sites, improving efficiency and reducing delays and unnecessary fumigation treatments.

A National Coordination Centre for Entry Management was established in Adelaide to process outstanding quarantine entries and finalise treatment directions to be implemented by treatment services. The National Coordination Centre has focused on improving national consistency of entry management activities such as the national finalisation of treatment releases for fumigators on compliance agreements and the initial, subsequent and final processing of all imported pigmeat entries.

AQIS implemented an AusAID-funded avian influenza surveillance and reporting program in Papua New Guinea to increase that country’s capacity to detect and report highly pathogenic avian influenza or other exotic diseases. Over 200 villagers from Western and Sandaun provinces were trained.

Export services and access

We maintain the integrity of Australia’s export certification system by providing export inspection, auditing and verification services. This ensures compliance with importing country requirements by the meat, horticulture, grain, fish, dairy, live animal exports and organic industries.

Maintaining export certification system integrity

The AQIS Exports Division expanded its activities in 2007–08 to conduct verification of all export programs. This included the assessment of organisations providing audit and inspection services on behalf of AQIS and their compliance with agreements and memorandums of understanding.

Verification work in 2008–09 will include a strong focus on certification systems, including declarations and documentation.

The Fish Exports Program and Dairy Exports Program developed new export certificates for a range of markets, thereby ensuring ongoing market access.

The Organic and Bio-dynamic Program strengthened systems for the verification and reporting of approved certifying bodies, and the organic produce certification documentation issued by them.

The Grain and Plant Products Export Program strengthened auditing of phytosanitary certificates and the management of audits of approved arrangements as part of our response to the Australian National Audit Office’s 2006–07 audit of AQIS export certification. The program was also subject to an audit by the AQIS Exports Division Verification Unit. During 2007–08, the program finalised amendments to the Export Control (Plants and Plant Products) Orders to incorporate the requirements for mung beans.

The Horticulture Export Program ensured consistent and efficient application of AQIS systems and legislative requirements by auditing and verifying inspections, sampling, documentation, EXDOC and charging systems.

We conducted audits of regional certification systems throughout the year, and accompanied Taiwanese auditors who visited Tasmania to audit apple export systems, and Japanese auditors who verified fruit fly area freedom before approving exports from the Sunraysia region.

Five additional export meat establishments gained access to the Chinese market after a review by Chinese auditors in November–December 2006. An E. coli O157:H7 testing protocol was implemented to meet the United States Food Safety Inspection Service’s requirements for export meat industry access to the United States.

We also developed capacity for electronic issue of export certificates for eggs and egg products.

Providing export inspection, auditing and verification services

The AQIS Exports Division Verification Unit conducted audits of export programs to assess the adequacy of their systems to manage compliance with audit and inspection schedules and procedures. The audits identified potential areas for system improvement, which the programs are now considering.

AQIS continued its Multi-commodity Project, which was initiated in 2006 to provide a framework for a single process covering multicommodity food export establishments. We expect the new framework to eliminate or reduce duplication of AQIS auditing, streamline the documentation of approved arrangements, increase consistency between commodities, and potentially reduce fees and charges to industry.

We developed residue monitoring plans with the National Residue Survey and industry to meet European Commission requirements for exports of meat, dairy, aquaculture and honey products. The plans will also support access to other important markets.

The Fish Exports Program developed guidelines on compliance with European Commission requirements for fish establishments, and audited fishing vessels and establishments against the guidelines to maintain market access. During the year, 33 129 certificates were issued for fish and fish products, 707 certificates for eggs and egg products, and 7500 certificates for other miscellaneous food products.

The Dairy Exports Program also developed guidelines on compliance with European Commission requirements for dairy establishments and conducted information sessions for industry. A total of 25 668 certificates were issued for around $2.53 billion worth of dairy products.

The Organic and Bio-dynamic Program verified the compliance of AQIS-approved certification organisations through auditing their management systems and inspection processes.
The Grain and Plant Products Export Program managed the Australian Wood Packaging Certification Scheme for exports to meet Australia’s obligations under the international standard for wood packaging. During 2007–08, 29 additional facilities were certified under the scheme, bringing the total to 201.

The Horticulture Export Program issued 19 279 phytosanitary certificates for the export of fresh fruit and vegetables, nursery stock, fresh and dried flowers and dried fruit.

Awareness of quarantine and export requirements

AQIS raised awareness of quarantine and export requirements and increased compliance by communicating directly with Australian individuals and businesses, and overseas residents travelling to or trading with Australia.

Raising awareness

Phase III of the Quarantine Matters! communication campaign continued to increase awareness of Australian quarantine requirements. The campaign uses mainstream television and press advertising, inflight videos, airport signage, media liaison and special events, such as travel shows and multicultural festivals.

Market tracking research conducted in December 2007 showed that campaign awareness levels remain high. Two-thirds of Australians over the age of 18 years have seen the Quarantine Matters! campaign, and high levels of ‘intention to declare’ have been maintained. Research also showed that around 75% of this group feel quite well or very well informed about the items that need to be declared when entering Australia.

AQIS also implemented public awareness strategies to promote passenger awareness of quarantined freshwater pests, including Didymo diatoms. The strategies, including changes to the incoming passenger card and upgrades to signage at airports, aim to increase declarations of risk items.

Our work to strengthen communication with organisations that provide audit services to the Exports Division included verification auditing (for example, of halal certification bodies, state regulatory authorities and AUSMEAT) and continuing consultations with our industry consultative committees.

By way of example, work with horticulture industry stakeholders included working groups and meetings with exporters, growers and packhouses to supply information on how to meet importing country requirements:

• mango pre-season meetings in Brisbane in July 2007 on export certification requirements for Malaysia, Japan, and new markets in Korea and China
• citrus pre-season meetings in the Riverland (South Australia), Sunraysia (Victoria), the Riverina (New South Wales) and Gayndah (Queensland) from January to March 2008 to discuss rejections of consignments at inspection and overseas, and export requirements for China, Japan, Thailand, Korea, Taiwan and the United States.

AQIS continued to increase public awareness of the importance of quarantine through publications, the AQIS website and targeted public awareness communication campaigns.

Six editions of the AQIS Bulletin, highlighting operational and legislative news relevant to AQIS clients and stakeholders, were published. The bulletin was sent out to more than 4700 subscribers during the year (2006–07: 3200 subscribers), and more than 2000 people read the online version.

The AQIS website (www.aqis.gov.au) had an average of 3117 visitors per day (2006–07: 3312 visits), or more than 1.14 million visits for the year. The most popular pages contained information about importing dogs and cats, other importing information, information about what cannot be brought into Australia, and jobs with AQIS.

In 2007–08, AQIS distributed more than 900 000 travel brochures in 17 languages and 1.2 million mail information brochures in 16 languages. AQIS also distributed more than 280 000 travel destination guides (published in conjunction with Lonely Planet and containing quarantine and other important Australian Government advice) for 11 different overseas destinations.

AQIS continued to provide support for the popular commercial television series Border Security to raise the profile of quarantine. The show once again was among Australia’s highest rating, with up to two million viewers per episode.

The Quarantine Top Watch! public awareness campaign, which supports the work of AQIS’s Northern Australia Quarantine Strategy, continued to increase quarantine awareness among residents and visitors to northern Australia, from Broome in the west to Cairns and the Torres Strait in the east. During the year, the campaign produced and distributed more than 17 000 calendars to mainland and Torres Strait residents. Other quarantine-awareness material produced included Horn Island Airport advertising banners, special quarantine laws cards and posters, other banners, Visiting the Torres Strait brochures, aircraft seat inserts, and supporting merchandise, including caps, pannikins and footballs.

Regional public awareness staff attended a number of community events, which also supported the Northern Australia Quarantine Strategy. The events included the Croc Festival on Thursday Island, the National Weeds Conference in Cairns, the North West Expo in Broome, the Top End Science Fair and the Darwin Show.

The annual Quarantine Awards once again acknowledged individuals, community groups and organisations who contributed to Australian quarantine and biosecurity management. The awards are judged by the Quarantine and Exports Advisory Council in conjunction with AQIS. The prestigious National Quarantine Award is usually given to one of eight regional award winners from the states and territories.

In 2007 there were two joint winners of the National Quarantine Award:

• eBay Australia, for its investment and cooperation with AQIS to establish online warning messages to potential customers about the importation of goods of quarantine concern
• the Torres Strait Islanders Media Association, for its role in educating residents about quarantine requirements (the community radio station’s weekly quarantine broadcast is its longest running regular segment, and reinforces quarantine messages in a culturally relevant way).

The Centenary of Quarantine began officially in March 2008. So far, a number of national and regional events have marked the centenary, including an exhibition at the National Museum of Australia in December. The exhibition is now also touring the states. We also worked with the Royal Australian Mint, which released a special $1 coin in May 2008 to celebrate the centenary. The coin design features a luggage bag shaped as Australia and a beagle detector dog on duty.

Promoting compliance

In late 2006, AQIS Compliance and Investigations Unit began working with eBay to prevent high-risk quarantine material, purchased through eBay, being imported contrary to Australia’s quarantine requirements.

In 2007–08, eBay developed and installed a variety of warning screens that present AQIS messages to potential buyers in Australia who attempt to bid on or purchase items outside Australia listed on the eBay website (see above).

We are continuing to work with eBay on commodity-targeting during specific cultural, religious or festive events, and on making a global AQIS quarantine message for all eBay host countries.

Quarantine programs also work closely with importing industries to provide advice on quarantine requirements. Updates to specific arrangements for particular commodities are provided through alert notices issued in the Import Conditions (ICON) Database.

AQIS issues Import Clearance Notices to Industry to advise of changes to procedures, the introduction of new fees or charges, and updates to particular treatments or commodity arrangements.

AQIS issues industry advice notices (IANs) to provide information on importing country requirements and changes in operational procedures. In 2007–08, we distributed a range of IANs for exporters of grain and plant, horticultural, fish, dairy and meat products. AQIS also issued ‘Meat News Updates’, e-bulletins and market access notices to inform industry of progress in market access issues.

The Horticulture Export Program developed and maintained work plans for specific commodities and countries, and maintained the PHYTO and EXDOC databases. PHYTO is AQIS’s plant and product export conditions database containing information about the conditions to export plants and plant products, including fruit, vegetables, seeds, grains, cut flowers and timber from Australia. It is a simple and convenient reference tool detailing the requirement for import permits, phytosanitary certificates, additional declarations and/or treatments, and also any other relevant export information and documentation. EXDOC is the AQIS Electronic Export Documentation System; its purpose is to electronically process and produce government-to-government documentation required for the export of prescribed goods.

AQIS continued to engage with industry groups to develop and promote strategies to encourage compliant behaviour. Examples include the development of the Express Path process at airports, and the use of co-regulatory accreditation schemes for commercial importers.

Table 15 shows AQIS consultative and advisory groups and their meetings in 2007–08.

Table 15
AQIS consultative and advisory committees and groups, 2007–08
Committee/group and meetings during year	Significant achievements
AQIS – Aviation Industry Consultative Committee March 2008	Endorsed the campaign to raise awareness of Didymo diatoms among travellers, which allows lower risk frequent travellers to exit airports more quickly, while maintaining quarantine inspection requirements. AQIS continued to participate in the Passenger Facilitation Taskforce, which explores strategies to reduce the impact of new airports and increasing passenger numbers on Australia’s border agencies. AQIS worked closely with industry and Customs to implement the Express Path system, which maintains quarantine inspection requirements while allowing compliant frequent travellers to exit the airport more quickly.
AQIS–Biologicals Consultative Group September 2007, April 2008	Established the Veterinary Vaccine Subcommittee. Reviewed specific issues affecting biologicals industry groups. Provided industry with program updates.
AQIS – Grain Industry Consultative Committee August, November 2007; May 2008	Agreed to reform the committee as a whole-of-department consultative committee for the grain and plant products export and import industries.
AQIS – Halal Industry Consultative Committee July 2007, February 2008	Introduced verification of halal certification bodies.
AQIS–Industry Cargo Consultative Committee August, December 2007; April 2008	Considered high-level strategic issues, including the Quarantine Operational Framework, Import Clearance Effectiveness project results, risk profiling and risk management, entry management processes, the review of quarantine, a review of import clearance quarantine service fees related to cost recovery, and developments and achievements within the Australian Fumigation Accreditation Scheme (AFAS). Progressed entry management projects and systems to simplify and streamline the quarantine entry of goods into Australia.
Dairy Export Industry Consultative Committee October 2007, April 2008	Focused on service delivery models, importing country audits and legislative reviews.
Export Meat Industry Advisory Committee July, November 2007; March 2008	Agreed on policy for market access requirements, such as industry support/agreement on proposed AQIS submission to United States authorities after the US implementation of stringent microbiological testing requirements for imported meat products.
Horticulture Exports Consultative Committee November 2007, February 2008	Defined the terms of reference for the committee. Established two new subcommittees for finance and operations.
Imported Food Consultative Committee November 2007, April 2008	Established essential criteria for entering into a compliance agreement for food importers.
Livestock Export Industry Consultative Committee August, December 2007; March 2008	Continued stakeholder consultation on a range of live animal export issues.
National Tripartite Consultative Committee (Australia Post, Customs and AQIS) August, December 2007; April 2008	Developed a business continuity plan for quarantine and border agency activities at the Melbourne gateway facility. The plan will be modified for all other international mail processing facilities. Discussed and addressed technology enhancements at gateway facilities. Introduced an operations workshop forum, involving current national tripartite members and operational staff from each agency, to gain agreement on arrangements for ensuring the effective and efficient screening, inspection, treatment and clearance of all inbound mail presented each day. Discussed border agency resource planning and modifications to current business policies for intervention of inbound international mail.
Organic Industry Export Consultative Committee November 2007, May 2008	Clarified responsibilities for issuing export certification on behalf of AQIS. Clarified interpretation of the National Standard of Organic and Bio-dynamic Produce. Considered the impact of the development of the Australian Standard for Organic Produce.
Post Entry Plant Industry Consultative Committee October 2007, April 2008	Discussed a range of post-entry quarantine issues, including strategies to increase the level of engagement of the nursery and garden industry in the committee. Appointed an industry co-chair to the committee to enhance industry engagement.
Seafood Exports Consultative Committee November 2007, May 2008	Following a merit selection process, a new committee was selected to represent the seafood industry for the next three years. Agreed to strategy for management of follow-up from European Commission audit in 2007. Supported Fish Exports Program management of approved arrangements. Agreed on structure of national residue surveys to comply with European Commission requirements.

Service delivery

AQIS developed and maintained a partnership approach with stakeholders to deliver a high level of service and support important elements in the international regulatory framework for trade.

Partnering with stakeholders

In carrying out its quarantine functions, AQIS works closely with other border agencies, industry stakeholders and the public to identify and intercept quarantine risk material.

In 2007–08, importing industry briefings on a range of cargo management initiatives and activities were presented to over 450 industry members across Australia. AQIS also worked closely with industry to improve suppliers’ operational practices to conform to AQIS packing and cleanliness requirements.

AQIS works closely with other Australian Government agencies on quarantine functions, including:

• the Department of Health and Ageing, which is responsible for human health aspects of quarantine, and Australia’s Chief Medical Officer, who holds the statutory position of Director of Human Quarantine
• The Australian Customs Service (Customs), which provides a range of services to assist AQIS, including
  –civil maritime surveillance and response resources through Coastwatch
  –access to the Integrated Cargo System to identify goods of interest to AQIS
  –referral to AQIS of material prohibited under the Quarantine Act 1908 detected during Customs inspections of incoming ships, aircraft, passengers, cargo and international mail
  –provision of export data relating to permits issued by AQIS
  –sharing of relevant intelligence data with AQIS.

AQIS chairs the Food Exports Regulators Steering Committee, which includes all state regulatory authorities and pursues a common goal of strengthening export certification systems for food. During the year, the steering committee worked with the export dairy sector to improve the current inspection and auditing framework and thereby address matters raised by overseas reviewers.

AQIS continued to work with the Australian export meat industry through the Strategic Initiatives Evaluation Group, which advises on and evaluates strategic initiatives to maximise the industry’s potential. Current projects will identify objective and measurable key performance indicators for export-registered meat establishments, identify opportunities to improve ante- and post-mortem inspection procedures, and provide options for alternative inspection models.

The Imported Foods Program drafted amendments to the Imported Food Control Regulations and Imported Food Control Order to implement alternative inspection arrangements with importers, as recommended by the National Competition Policy and the Banks Review on Reducing Regulatory Burdens on Business.

The Grain and Plant Products Export Program worked in partnership with industry to resolve issues relating to sampling and mandatory fumigation requirements.

AQIS continued to work with the Australian Meat Industry Council to investigate objective and measurable performance indicators for export-registered meat establishments and the export meat system, to examine ante-mortem and post-mortem inspection procedures and to consider alternative inspection models. The aim is to improve verification and certification efficiency. We expect preliminary findings to be available by the end of 2008.

Our professional development program for on-plant veterinary staff, area technical managers and meat inspection staff continued. This targeted program makes service delivery more nationally consistent.
AQIS successfully trialled a meat inspector traineeship program, with the aim of recruiting and training more meat inspectors to meet operational requirements and further develop a professional workforce. The Export Meat Program continued its strategy of raising awareness of the importance of veterinary involvement in public health and the profile of the department as a potential employer of public health veterinary officers through its liaison with university veterinary schools.

The rollout of broadband connectivity to AQIS meat program field staff is nearing completion. Most sites have been upgraded, contributing to significant gains in productivity. The rollout will be completed as the enabling technologies become available to new and remote sites. We also made further gains in productivity by deploying wireless computer connectivity (mobile on-the-job office) for field managers nationally.

AQIS participated in the development of the Australian Standard for Organic Produce to ensure that export expectations are addressed while minimising the duplication of standards for domestic and export systems.

Supporting the international regulatory framework

AQIS contributed significantly to Australia’s and the department’s participation in the Codex Alimentarius Commission and its committees, ensuring that international standards assist trade in Australia’s food, fisheries and agricultural products.

AQIS chaired the Codex Committee on Food Import and Export Inspection and Certification Systems, and Australia led a working group developing guidelines for national food inspection systems.

The guidelines will give countries a framework to establish national inspection systems based on recognised principles, and benefit both exporting and importing countries and international trade. The committee is also progressing work on a standard template for export certificates and guidelines on the conduct of foreign audits. The work on audit guidelines, which is being led by Australia, should address the concerns of a number of exporting nations about arbitrary and poorly designed and communicated audits of our systems by importing country authorities.

AQIS officers also led Australia’s delegations to the Codex committees on milk and milk products and on fish and fish products, and contributed to Australia’s position to the Codex committees on residues of pesticides, veterinary drugs and contaminants, methods of analysis and sampling, and organic produce and food in general.

In other work to support the international regulatory framework, the AQIS Grain and Plant Products Export Program:

• met officials from Chile and India to provide information on AQIS’s role and systems for plant export certification
• provided comment to Trade and Market Access Division (formerly International Division) on Indonesia’s proposed food safety regulations
• provided comment to the Office of the Chief Plant Protection Officer on the review of International Standards for Phytosanitary Measures relating to sampling of consignments, methyl bromide standards and the international movement of wood and forest tree species.

Funding was received from APEC to host an Australian Fumigation Accreditation Scheme (AFAS) quarantine regulators meeting in March 2008. AFAS assists overseas fumigators to use methyl bromide fumigation more efficiently to meet Australia’s requirements for offshore fumigation of certain imports. The meeting focused on the adoption of multilateral arrangements and the extension of AFAS to other quarantine treatments (for example, heat treatment).

AFAS was presented with a United States Environmental Protection Agency Ozone Layer Protection Award in May 2008 in Washington DC. The award recognised our achievements in reducing the use of methyl bromide (see case study on page 158).

During 2007–08, AQIS also undertook substantial work to develop protocols relating to possible pre-inspection arrangements for apples from New Zealand, and imports of prawns and prawn products, following the completion of risk assessments for those commodities by Biosecurity Australia.

Quarantine controls

AQIS continued to administer quarantine controls at Australia’s borders to minimise the risk of exotic pest and disease incursions, and worked with industry and the community to respond to potential quarantine threats.

Immediately after the outbreak of equine influenza in August 2007, officers from the AQIS Compliance and Investigation Branch were deployed to investigate how the virus might have escaped from a place or premises under quarantine control.

The Callinan inquiry began soon afterwards. Following agreement between the department’s secretary and Commissioner Callinan, a number of Compliance and Investigation staff were seconded to the inquiry. They interviewed witnesses, obtained documents, analysed telephone records, and made fresh investigations as directed by counsel assisting the inquiry.

The Callinan inquiry reported to the Australian Government in April 2008, and the government issued its response to the inquiry in June 2008 (see ‘Special report: Equine Influenza Inquiry’, p. 7).

AQIS is also assisting the Quarantine and Biosecurity Review, chaired by Roger Beale AO, which is expected to report to government by the end of September 2008 (see box, ‘Quarantine and Biosecurity Review’, p. 155).

In 2007–08, AQIS activities to strengthen Australia’s pre-border pest and disease risk management arrangements included:

• continuing implementation of AFAS
• enhanced pre-inspection arrangements for imported machinery and returning military equipment
• enhanced desk and site audits of plant-based stockfeed manufacturing, plants and associated import pathways
• use of the International Standards on Phytosanitary Measures (ISPM 15) for wood dunnage and packaging
• improved certification requirements for imported fertiliser shipments.

Several significant detections of exotic pests and diseases were made by the Northern Australia Quarantine Strategy program in 2007–08, including:

• an exotic pig parasite (Setaria thomasi) transmitted by mosquitoes on Gabba Island in Torres Strait
• mango gall midge in Torres Strait and Cape York Peninsula
• citrus leaf spot (Cryptosporiopsis citri Virginia) at Broome.

The detections were promptly reported to the responsible national and state authorities for appropriate action.

Phase I of the Import Conditions (ICON) ePermits project was delivered in August 2007, allowing the public to lodge electronic applications for import permits. Since implementation, around 30% of permits are now being applied for online (excluding live animal permits that still require paper forms).

The AQIS Detector Dog Program continued to source trainee passive dogs (beagles) mainly from the New Zealand Ministry of Agriculture. Trainee active dogs (labradors) were sourced mainly from the Australian Customs breeding program. We trialled a range of dog deployment initiatives to better meet client detection and facilitation needs.

After an open tender process for the supply, installation and maintenance of X-ray systems, AQIS managed the transition to some 40 new X-ray machines in quarantine operations at international airports and mail centres.

Market access

AQIS contributed significantly to negotiating Australia’s agreement with China on certification and testing of dairy products, including infant formula. As a result of this agreement, Chinese import authorities rationalised their import procedures for AQIS-certified dairy products.

Our input led to the moderation of Thai microbiological standards for infant formula and honey; the standards are either now in line with Codex standards or the Australia New Zealand Food Standards Code, simplifying the measures that Australia’s exporters must comply with.

We defended Australia’s export dairy systems following a review by the European Commission Food and Veterinary Office, which led to the acceptance of our systems.

We finalised negotiations of new export certificates for fish products to Croatia and Ukraine, for exports of egg products to Hong Kong and Vietnam, and for dairy products to Brazil.

Australia managed to maintain market access for prawns to Europe, despite natural levels of cadmium in Australian prawns sometimes exceeding the European regulatory level. The European Commission is considering a submission from AQIS seeking to rescind or raise the regulatory limit for cadmium in prawns.

We have marketed the Australian Government’s Supervised Halal Program into a number of countries, facilitating access for Australian meat products to a range of Muslim markets.

Following a large recall of ground beef in the United States due to contamination with the pathogen E. coli O157:H7, the Food Safety and Inspection Service increased the regulatory burden for imports of beef. AQIS worked with industry to formulate a response. The United States determined that Australian procedures were equivalent to its own, providing the best outcome for Australia (see case study on page 159).

AQIS successfully negotiated the trial of the Meat Safety Enhancement Program (an alternative meat inspection model) at a Queensland establishment, allowing meat to be exported to the United States. The new model has the potential to save industry money through more efficient inspections.

Joint action by the department, the meat export industry and the Department of Foreign Affairs and Trade resisted a move by several countries to implement fees for their inspection of Australian abattoirs and processing plants.

The Philippines lifted the ban on the importation of Australian meat and bone meal as a result of AQIS action. Requests for commercial contracts have followed.

We continued to direct significant resources to ensure that certification of export product is accurate and complete, especially for the European Union, where a change to the regulations in 2007 resulted in AQIS putting into production some 800 animal by-product certificates, which included 15 import and 15 transit certificates in 21 languages.

Our work to maintain access for Australian agricultural and food products to international markets included the provision of comment by the Grain and Plant Products Export Program to Biosecurity Australia to support market access negotiations for plant and plant products to markets in South America, Thailand, Korea, Sri Lanka and India.

The Horticulture Export Program dealt with operational aspects of the export of Australian citrus to Japan, leading to improved conditions for export. Significant savings to industry may result from changes to arrangements for Japanese inspectors to supervise cold treatments in Australia.

Outlook for 2008–09

An independent review into biosecurity and quarantine, headed by Roger Beale AO, will report at the end of September 2008 and is expected to lead to a period of change for AQIS. The report of the Equine Influenza Inquiry by the Hon. Ian Callinan AC will feed into the review. The outcomes will be critical in shaping Australia’s quarantine and biosecurity delivery into the future, ensuring that the department is well placed to face future quarantine challenges.

Following the Callinan inquiry, a new Animal Quarantine Branch has been established in the Quarantine Operations Division to take primary responsibility and accountability for the importation of horses into Australia.

Other work in 2008–09 will include the following.

• A review of the Export Control (Organic Produce Certification) Orders will be conducted to ensure that it effectively reflects export control systems.
• The Organic Program is assessing options for accreditation of approved certifying organisations to minimise duplication of accreditation processes while ensuring that importing country requirements are met.
• Exports Division Verification Unit will assess adequacy and implementation of the instructional material (standard operating procedures and work instructions) issued within the Exports Division.
• The Grain and Plant Products Export Program’s priority for 2008–09 will be the development of instructional material for staff and verification of its use.
• The Horticulture Export Program is expecting a difficult year for the horticulture sector, with the affects of drought and a strong Australian dollar resulting in a reduction of horticultural exports in 2008–09.
• The Live Animal Exports Program will continue to consolidate and develop instructional material for staff and associated training and verification systems.
• The Dairy Exports Program will focus on corrective actions from the European Union review in 2008, and the further development of instructional material for staff.
• The Animal Products Market Access Branch will finalise the Honey Orders.
• Quarantine programs will:
  – continue development of national standard operating procedures and work instructions, together with associated national training programs and verification arrangements
  – continue review of information technology system requirements to meet our current and future business needs
  – identify activities that deliver benefits to AQIS and industry through improvements to AQIS operations.
• The AQIS Airports Program will continue to work as an active member of the Inter-Departmental Passenger Facilitation Taskforce to progress initiatives that will improve passenger clearance processes without compromising border integrity.
• In partnership with Customs, Asia Pacific Airports Corporation Ltd, L3 Communications and BCS Group, AQIS has progressed a project at Melbourne International Airport testing the potential for screening passengers’ baggage before it is collected from carousels. In the face of continuous growth in passenger numbers, this initiative has the potential to improve passenger clearance while maintaining quarantine integrity. The trial is due for completion by September 2008.
• AQIS will continue to work closely with Australia Post to cater for increased mail volume, clear mail backlogs and improve the operational processing of potential quarantine risk mail items.

Table 16
Output 6 performance, 2007–08
Output 6 objective To reduce the risk to Australia’s animal, plant and human health status and maintain market access through the delivery of quarantine and export services.
Output component: Delivery of effective Australian Quarantine and Inspection Service (AQIS) quarantine services
Performance measures Level of quarantine intervention and quarantine risk effectiveness at the border. Level of awareness of AQIS quarantine services. Performance Quarantine intervention levels at the border Government policy sets quarantine intervention levels at 100% for all international vessels arriving by air or sea, all international mail and air courier consignments, and the inspection of the external surfaces of air and sea cargo containers. For passengers arriving at airports, the intervention target is lower (81%) to allow for efficient passenger processing during peak arrival times. However, all airline passengers are subject to risk profiling by quarantine inspectors to ensure that quarantine intervention is directed at those who pose a greater quarantine risk. For international mail, the intervention rate (the proportion of mail X-rayed or inspected by detector dogs) was maintained at the 100% target level throughout 2007–08. For quarantine clearances of the external surfaces of sea cargo containers, the intervention rate (the proportion of arriving sea cargo containers that are externally inspected) was maintained at the target of 100% throughout 2007–08. The baggage of all disembarking cruise ship passengers is either inspected, X-rayed or subjected to detector dogs. The hand luggage of all day-tripping passengers is inspected. For vessels in seaports, the intervention rate (the proportion of vessels inspected at their first port of arrival) was maintained at the target of 100% throughout 2007–08. Intervention for high-volume, low-value air courier consignments was 95–99%, slightly below the 100% target. The rate of intervention for the external inspection of air cargo containers was 94–96%, also slightly below the 100% target. At airports, quarantine intervention (measured as the proportion of international passengers and crew whose baggage is inspected or X-rayed) remained above the 81% target for the first half of the year, but dropped to 79% in the third quarter and 78% in the fourth quarter. Quarantine risk effectiveness at the border In AQIS quarantine border operations, quarantine risk effectiveness is measured using a framework developed by the Australian National Audit Office. Quarantine risk effectiveness is measured by the number of quarantine items seized at the border as a proportion of total quarantine items approaching. At airports, seaports, and international mail centres, effectiveness uses a two-tiered classification system, separating seizures into ‘higher risk’ and ‘risk’ groupings. Those items with the most serious quarantine consequences are in the ‘higher risk’ group, which has correspondingly higher effectiveness targets. Other material, of lower (but still significant) quarantine concern, is in the ‘risk’ group. Although quarantine intervention rates at international airports were slightly below the target of 81% in the latter part of 2007–08, the effectiveness of quarantine intervention for international passengers and crew was maintained above target levels. Effectiveness of inspection of passengers and crew at airports ranged from 89% to 93% for higher risk quarantine material, above the target of 87%. Effectiveness in detecting other quarantine risk items ranged from 78% to 83%, well above the target of 50%. For international mail, effectiveness in detecting higher risk items in incoming mail ranged between 77% and 94%; effectiveness for other risk material was between 69% and 84%. At seaports, effectiveness in detecting higher quarantine risk material carried by disembarking passengers ranged from 67% to 100%, against a target of 87%. Effectiveness in detecting other quarantine risk material in inspections of disembarking passengers was between 63% and 100%, well above the target of 50%. Effectiveness in detecting higher quarantine risk material carried by day-tripping passengers was maintained at 100% throughout 2007–08, well above the target of 87%. Effectiveness in detecting other quarantine risk material in inspections of day-tripping passengers was also maintained at 100% throughout 2007–08, well above the target of 50%. For clearance of high-volume, low-value air cargo, effectiveness remained well above the 96% target, ranging from 99% to 100%. For clearance of the external surfaces of air cargo containers, effectiveness ranged from 84% to 98% against the target of 96%. For the external surfaces of sea cargo containers, effectiveness ranged from 95% to 96%, very close to the target of 96%. For vessels, effectiveness was between 85% and 100%, against a target of 96%, and passed the target of 96% in the last quarter, with effectiveness of 97%. Level of awareness of AQIS quarantine services AQIS activities during the year maintained Australians’ high level of awareness about AQIS quarantine services. See ‘Awareness of quarantine and export requirements’ for details of AQIS’s work in this area.
Output component: Delivery of effective AQIS export services
Performance measures The number of consignments in export markets where facilitation of release of cargoes is attributed to AQIS involvement. The rate of rejections of export consignments. The level of awareness of AQIS export services. Performance We delivered effective AQIS export services during 2007–08 by: working closely with industry advisory committees to ensure wide understanding of export requirements publishing guidelines for the development and implementation of approved arrangements required under export meat legislation promoting the professional development of field staff in the export meat program assisting in reviews of the export meat system by the United States, China, Indonesia and the European Union. Live animal exports In 2007–08, 9007 consignments of live animals and reproductive material were exported. No consignments were reported to be rejected, although importing countries do not routinely notify AQIS of rejections, and there is no requirement for industry to report this information. Grain exports In 2007–08, the Grain and Plant Products Export Program received eight non-compliance notifications from importing country national plant protection organisations. No grain export consignment required AQIS intervention for release. Horticulture exports In 2007–08, less than 0.5% of total horticultural export consignments were notified as rejected on arrival by the importing country because pests or soil contamination was identified and could not be treated (2006–07: less than 1%). Twenty nine consignments were released after AQIS intervention. In most cases, consignments held by importing country quarantine authorities are treated by the importing authority and released. Other exports The number of rejections of meat export consignments cannot be reliably determined because importing countries do not routinely notify AQIS of rejections, and there is no requirement for industry to report this information. The United States has reported rejection data in the past, but incompatibility of information technology systems resulted in no rejections being reported for some years. More recent rejection data from the United States are inadequate, and the many negotiations undertaken are not tracked. The Australian National Audit Office has recommended the removal of this performance measure. The total number of interventions required for prescribed goods (meat, dairy products, eggs and fish) was lower in 2007–08 than in previous years. The reduction was largely due to continued improvements in the export certification system, which now more closely reflects importing country requirements. The table below shows figures on AQIS intervention for detained consignments of meat, game meat, poultry, animal by-products, dairy products, eggs and fish and organic produce. Following the restructure of the Export Facilitation Program in July 2006, AQIS Animal Products Market Access Branch has continued to share the responsibility for assisting in the release of consignments of non-prescribed goods. An additional 31 interventions were carried out for detained non-prescribed goods and approximately 300 emails requesting export procedural information were responded to.
Export consignments of prescribed goods requiring AQIS intervention for release 1st quarter 2nd quarter 3rd quarter 4th quarter Total 2007–08 112 160 75 72 419 2006–07 180 147 143 119 589 2005–06 270 191 124 152 737 2004–05 172 208 160 232 772
Level of awareness of AQIS export services Australian exporting industries’ awareness of AQIS export services remained high during the year. See ‘Awareness of quarantine and export requirements’ for details of AQIS’s work in this area. Administered items No administered items contributed to Output 6.

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Scientific Advice

The department delivers Output 7 through the Bureau of Rural Sciences (BRS). Scientific advice from BRS is one of the foundations of evidence-based policy development and decision making by other divisions and by portfolio stakeholders. The work of BRS also contributes to the National Research Priorities and other Australian Government objectives.

Priorities

• Deliver science-based advice that is relevant, integrated with other advice and communicated effectively to support evidence-based policy development.
• Provide biophysical and socioeconomic information that can be analysed through electronic interactive tools to support decision making.
• Assist government and portfolio industries to better manage risks from changing conditions, including climate, by collating, analysing and providing value-added information to decision makers.
• Prepare fisheries status reports and advice to ensure that Australia’s fisheries are managed sustainably, and value-added information and advice for use in representing Australia’s regional fisheries interests in international forums.
• Provide information and advice to support national water policy initiatives.
• Deliver integrated social and biophysical assessments of regions or rural industries to inform policy analysis and decision making.
• Support portfolio policy initiatives on sustainable natural resource use, including land management, forestry, and agricultural production.

Highlights

• Informed government policy on water availability, drought, climate change, fisheries, biotechnology, biosecurity, forests, animal welfare, invasive species and other subjects.
• Published 32 reports, including major reports on Australia’s forests and on Commonwealth managed fisheries.
• Represented the Australian Government at international meetings on biotechnology, land salinity, forestry and fisheries.
• Continued electromagnetic underground salinity mapping of 1.8 million hectares in the River Murray Corridor.
• Completed a study on climate risk and industry adaptation, and reviewed 96 Drought Exceptional Circumstances declared areas.
• Administered 29 projects under the National Feral Animal Control Program.
• Developed the NRM Spatial Information System and Signposts for Agriculture to aid program evaluation, and worked on the Australian Water Data Infrastructure System for the Executive Steering Committee for Australian Water Resources Information.
• Launched the National Agricultural Monitoring System with an irrigated industries extension in July 2007.
• Released Country matters: social atlas of rural and regional Australia 2008 and updated the Multi-criteria Analysis Shell for Spatial Decision Support (MCAS‑S).

Relevant advice

BRS researched and prepared science-based advice to inform evidence-based policy development across the portfolio. Our advice integrated information from our specific activities with information from other sources, and was delivered through reports, briefings, representations on government committees and presentations at conferences and workshops.

Biotechnology and biosecurity

As part of the Australian Government’s National Biotechnology Strategy, BRS released Genetically modified oilseed crops and the Australian oilseed industry, which reviews current and future applications of gene technology for oilseed crops. The report was cited in reviews of GM crop moratoriums in Victoria and New South Wales.

Other biotechnology reports in progress at year’s end included GM crops—tools for insect pest and weed control, a report reviewing sampling and testing for GM events, and Australian agriculture in a changing climate—can biotechnology help?

BRS compiled case studies for and facilitated a workshop to test the cost-sharing assessment criteria for pest incursion management under AusBIOSEC (the Australian Biosecurity System for Primary Production and the Environment). The workshop encouraged acceptance of the cost-sharing agreement by state governments and prompted feedback to make the agreement clearer and more effective. BRS also improved its climate-matching and risk assessment models to guide import risk analyses and cost-sharing for incursion management.

Natural resource management

BRS research and reports published during 2007–08 will underpin the implementation of the Caring for our Country package.

The bureau produced two reports for the Social and Economic National Coordination Committee, which supported the National Land and Water Resources Audit (NLWRA):

• Integrating landholder survey data draws together all the data from seven national landholder social data surveys
• Future direction in natural resource management research in the rangelands identifies approaches to better land management across Australia’s rangelands.

The bureau has a lead role in the Australian Collaborative Land Use Mapping Program, which achieved national coverage of catchment-scale land use mapping during the year. This is the culmination of more than six years of collaborative work with national and state agency partners. A series of pilot projects on state-based land management practices pilot projects was also completed. These outputs are underpinning national strategic investment through Caring for our Country and commitments to sustainable farming practices and improved agricultural productivity. For example, land use mapping is used in modelling sediment and nutrient transport from catchments affecting the Great Barrier Reef and the Gippsland Lakes, in analysing the location and nature of irrigation-dependent agriculture, and to provide background for ministerial rural visits.

The bureau also coordinated the delivery of national information on vegetation and land cover for natural resource management (NRM) and agricultural productivity development. Uses for the information include monitoring and reporting natural resource condition and trends, targeting investment, acquiring performance information, planning, assessing risks and modelling landscape processes. Major outputs included the development of national guidelines for vegetation survey and classification (to be published by CSIRO Publishing).

In conjunction with the NLWRA, the bureau produced the State of national resources booklet for land salinity, which outlines information on salinity that could be used for future national assessments.

The bureau also presented three papers (including a plenary presentation) at the 2nd International Salinity Forum in Adelaide in April 2008, detailing the implications for future investment in salinity control and irrigation infrastructure.

BRS made a presentation at the 5th International Airborne Electromagnetics Conference in Helsinki, showcasing work funded by the Australian Government that uses this technology in NRM.

Water resources and irrigation

The bureau produced four Science for decision makers publications on groundwater subjects during the year, covering water banking, understanding groundwater, non‑renewable groundwater resources, and groundwater recharge.

BRS contributed at two workshops organised by the Department of the Environment, Water, Heritage and the Arts (DEWHA) to develop an assessment framework for the $70 million HOTSPOT irrigation investment program. The framework will be a critical part of assessments for investment under the $5.8 billion Water for the Future program. The bureau is a member of the assessment panel for tenders under the program.

BRS provided technical advice to DEWHA on various water issues, including the Great Artesian Basin Sustainability Initiative, in which there is great interest in the restoration of groundwater pressure after widespread bore‑capping. The bureau has also begun a project to determine the rainfall–recharge relationships for the New South Wales Great Artesian Basin intake beds to help maximise the benefits of the initiative. The project will be completed in 2008–09.

The Australian Water Availability project, a collaborative project between BRS, the Bureau of Meteorology and CSIRO, will soon release the results of its research into the Australian water balance. BRS has also begun analysing the data to assess and map the reliability of the climate factors affecting agricultural productivity.

Climate change

BRS reviewed 96 drought Exceptional Circumstances (EC) declared areas, 14 interim assistance applications and 30 EC reports using the National Agricultural Monitoring System (NAMS). NAMS was independently reviewed by the Industries Development Committee of the Primary Industries Ministerial Council, which concluded that the system is fulfilling its planned objectives.

Monthly National climate and agricultural updates were released throughout the year, reporting on rainfall and temperature; water storages and allocations; crop and livestock production; and the climate outlook. The reports were distributed within the department and are made publicly available through the NAMS website. In addition, a weekly report on climate conditions and commodity price movements is being widely distributed within the department, to the minister’s office and to other Australian Government departments.

Two detailed reports on climate change issues were delivered to departmental policy areas: Climate change and agriculture: frameworks, vulnerabilities and options for sectors and regions and Background briefing on soil carbon: its potential role in carbon trading for agriculture and forestry.

BRS contributed to the Communicating Climate Change to Agricultural Industries project, a part of the National Agriculture and Climate Change Action Plan. The project produced fact sheets and presentations to promote industry and regional recognition of climate change, including options for adaptation and risk management. Targeted groups included state agriculture departments and agribusiness professionals in western Victoria, the mid‑rainfall zone of South Australia, and the north‑west wheat belt of Western Australia.

Fisheries

BRS is helping to develop the National Climate Change and Fisheries Action Plan, in consultation with government and industry stakeholders. The aim of the plan is to provide a national framework for climate change policy on fishing and aquaculture to contribute to the development of sustainable, competitive and profitable Australian fishing and aquaculture sectors. The plan is expected to be completed in late 2008, after which an implementation strategy will be developed.

Forests

BRS published several reports on forest issues. The five‑yearly Australia’s state of the forests report 2008, with accompanying fact sheets and website, was launched by the Minister for Agriculture, Fisheries and Forestry on 21 May 2008 in Gippsland, Victoria. The changing face of Australia’s forests was released at ABARE’s Outlook 2008 conference. Reports published by the National Plantation Inventory in 2007–08 included the five‑yearly forecast of log supply, the 2008 update on areas planted by region, state and territory, and an updated Science for decision makers brief on plantations and water use.

The reports are designed to help stakeholders and policy clients shape Australian forest policy. Plantation inventory data, information and analysis were frequently requested by departmental and external groups for use in research and analyses on such topics as water use in catchments, managed investment schemes and the potential for carbon sequestration.

Social issues

The bureau released Country matters: social atlas of rural and regional Australia in April 2008. This centrepiece BRS product analyses the social and demographic factors and trends shaping change in rural and regional Australia. The atlas, which is updated every five years, incorporates Australian Bureau of Statistics census data. It is both an online inquiry tool and a hard copy product comprising a full report, a summary booklet and four thematic booklets on industry and employment; education and training; social fabric of communities and the social impacts of drought. At the minister’s request, this information package was provided to the 2020 Summit in April 2008.

Climate risk and industry adaptation, a report about people in rural communities, was released in May 2008. The report provided findings from four case studies that explored the links between people’s climate risk management strategies and their perceptions of climate variability and climate change. The study covered irrigated and dryland communities in the Murray–Darling Basin, and was the first phase of a larger, more comprehensive study of farmers across Australia conducted in July 2008.

The Sugar Industry Reform Program 2004 package concluded during the year. BRS began an evaluation of the program in May 2008 and expects to complete it in the 2008–09 financial year (see ‘Reviews and evaluations’ in this report).

Representation in international forums

BRS represented the Australian Government at the 11th Asia–Pacific Economic Cooperation (APEC) Research, Development and Extension of Agricultural Biotechnology Workshop and the 7th meeting of the APEC High Level Policy Dialogue on Agricultural Biotechnology, in February 2008 in Lima, Peru. The Australian delegate presented research (developed by Biotechnology Australia) on public perception of agricultural biotechnology at the workshop and chaired the final day of the dialogue.

The bureau led and/or participated in Australian scientific delegations to meetings of:

• the Commission for the Conservation of Southern Bluefin Tuna (Canberra, October 2007)
• the Western and Central Pacific Fisheries Commission (Guam, December 2007)
• the Indian Ocean Tuna Commission (Oman, June 2008)
• the South Pacific Regional Fisheries Management Organisation (Ecuador, March 2008)
• SBSTTA 12 (Subsidiary Body on Scientific; Technical and Technological Advice of the Convention on Biological Diversity) (Paris, July 2007)
• SBSTTA 13 (Rome, February 2008)
• three Food and Agriculture Organization (FAO) workshops (Thailand, October 2007; Vietnam, April 2008; Thailand, May 2008)
• Montreal Process forest indicators and technical advisory committee workshops (China, July 2007; Finland, May 2008)
• Long‑term Ecological Research Network meeting (China, August 2007).

Online information and interactive systems

A wide range of biophysical and socioeconomic information is held by the department and other agencies. BRS collates, integrates and transforms these data so that they can be analysed using electronic interactive tools to support decision making.

In collaboration with the Department of the Environment, Water, Heritage and the Arts and ABARE, BRS developed the NRM Spatial Information System to help inform Australian Government investment in and evaluation of NRM programs.

Additional online tools for policy and program support were developed, including the online version of the Country matters social atlas, the Murray–Darling Basin Community Stream Sampling website, the Australian Water Data Infrastructure System, the National Indigenous Forest Strategy website and a prototype of the Australian Fisheries Information System. A web‑based version of the BRS CLIMATE software used to model potential distributions of pests and weeds was begun in 2007–08 and will be completed in 2008–09.

The National Agricultural Monitoring System (NAMS) is helping to streamline the work of the department in delivering drought assistance each month. NAMS recorded around 140 000 website visits in 2007–08 (approximately 1300 visits per month) and generated around 200 EC reports on request. In 2007–08, NAMS underwent a phase of consolidation and maintenance, during which BRS improved its performance and user-friendliness. The NAMS project team ran training and information sessions with all jurisdictions, and with stakeholder and industry representatives.

A review of NAMS by the Primary Industries Ministerial Council’s Industry Development Committee concluded that NAMS had fulfilled its primary objective of streamlining the EC application and assessment process, and that the system is essential to current drought policy. At its April 2008 meeting, the ministerial council decided that funding for NAMS would be extended to cover the 2008–09 financial year and that the role NAMS might play in drought policy reform and climate change adaptation would be investigated.

BRS has also established major online tools and information services that provide specific spatial information to support decisions by Australia’s land managers. These include the Plantation Information Network; Integrated Vegetation Online; Land use mapping for Australia; and the Multi-criteria Analysis Shell for Spatial Decision Support (MCAS‑S), which prioritises NRM investment, risk assessment and ecosystems services analysis. A revised and updated version of the MCAS‑S tool was released in April 2008. The tool has been in strong demand, particularly from regional bodies.

A major design upgrade to the BRS spatial data infrastructure was completed. The upgrade will enable BRS to store, manage and access data more efficiently.

Risk management

The bureau assists government and industries in managing the effects of changing conditions, including climate, through a more systematic approach to risk management. We do this by collating, preparing and analysing datasets to inform and advise decision makers within the portfolio.

Climate risk and industry adaptation, a qualitative study released in May 2008, provided new insights into how stakeholders perceive drought and climate change, which risk management strategies are used in agricultural industries, and the role government could play to help rural industries and communities cope with drought and climate change.

For Meat and Livestock Australia, the bureau continued delivering the analytical content for the Rainfall to Pasture Growth Outlook Tool. The tool is used for climate risk management by livestock producers across southern Australia, and delivers a site‑specific climate risk profile as well as weekly updates linking current rainfall, pasture growth and soil moisture conditions to a seasonal forecast.

BRS completed a wide range of biosecurity projects for the department’s other divisions during the year, including:

• risk assessments of cucumber fly and giant African snail
• reports on sampling strategies for viruses of prawns
• reviews of the Northern Australia Quarantine Strategy weed target list and the livestock buffer zone fence (Cape York Peninsula)
• gap analysis of current weed research to provide direction for future Australian Government research funding
• ad hoc advice on the potential distribution of new pest animals, weeds and diseases, including an improved climate-matching and risk assessment model
• risk-based cost-sharing methods for responses to marine, freshwater and terrestrial pest and weed incursions.
• The bureau also produced a refined risk assessment model to guide the import and keeping of exotic vertebrates for DEWHA.

Commonwealth managed fisheries

The bureau’s advice provided the essential foundation for sustainable fisheries management. We also helped to ensure that Australia’s regional fisheries interests are well represented in international forums dealing with the management of migratory fish stocks.

BRS produced the annual Fishery status reports of Commonwealth managed fisheries and participated in Australian Fisheries Management Authority resource assessment groups, providing scientific advice to underpin fishery management. The bureau also provided detailed scientific advice to policymakers and regulators on Torres Strait fisheries; recreational fishing; bycatch and protected species; climate change and industry co‑management; and illegal, unreported and unregulated fishing in northern Australia.

To help minimise unwanted species bycatch in commercial fisheries, BRS modelled crocodile, shark and seabird bycatch rates. The bureau also analysed experimental data on circle hooks (used to mitigate seabird bycatch) to determine their effectiveness as fishing tools, improved the analysis methods used to standardise fisheries catch‑and-effort data, and undertook a stock assessment for western gemfish.

Through collaborations with ABARE and CSIRO, the bureau delivered scientific advice on a range of policy issues, including:

• the Commonwealth Fisheries Harvest Strategy
• ecological risk assessment
• implementing the Securing our Fishing Future structural adjustment package
• nominations for listings of threatened species
• marine bioregional planning
• the National Plan of Action for Sharks
• a threat abatement plan for seabird bycatch.

Agricultural water management

The bureau’s datasets, analysis and advice support national policy initiatives in the areas of surface and groundwater resources and freshwater ecology. BRS has contributed to hydrology modelling, mapping, data management and social analysis.

During the year, the bureau, with the states and territories, began work on the Australian Water Data Infrastructure System—a national water data model that integrates a diverse range of databases into a single national water database that can be accessed via the internet. The system will be used by the Bureau of Meteorology to meet its legislative obligations during the development of a water account for Australia. The connections will be live and current, and the project is expected to be completed in 2008–09.

BRS undertook a social science study (Recycled water—opportunities and constraints), focusing on three successful agricultural recycled water schemes in Victoria, Tasmania and New South Wales. The study identified various linked factors critical to the success of the schemes. This information will aid the design of future schemes.

The National assessment of community dependence on water and social resilience (Water 2010) was completed during the year as part of the Water 2010 project, aimed at assisting water policy reform. The assessment provides tools for understanding and measuring community dependence on water for agriculture and social resilience to changes in water access at different spatial scales and at national and regional levels.

The bureau provided groundwater assessments for the Murray–Darling Basin Sustainable Yields project to help determine water availability for basin catchments and improve planning under the CSIRO‑led Water for our Future program. BRS also began assessments of coastal irrigation areas that may be at risk from salination because of rising sea levels and climate change.

To assist future investment decisions, BRS began lower Macquarie River and River Murray Corridor airborne electromagnetic mapping surveys of underground salt deposits. The surveys cover some 1.8 million hectares and are the largest of their kind ever undertaken. Early results suggest that, even for highly studied areas of Australia, knowledge of groundwater systems and their interaction with salinity is limited. The surveys also redefined the known distribution of high‑quality groundwater within the River Murray Trench between Boundary Bend and Mildura in Victoria.

BRS helped Murray–Darling Basin communities continue stream sampling in times of low rainfall by modifying the bureau’s website, which allows community analysis of available information. BRS made innovative tools and maps available through the website to help land managers prepare strategies for maintaining high‑value irrigated agricultural and environmental assets.

As part of contingency planning in the Murray–Darling Basin, the bureau explored the potential for using brackish water in the River Murray Corridor as an alternative water source for irrigators and rural communities.

The investigators examined variations in grain yields when irrigation water of different salinity levels was used. The project estimated levels of salt in irrigation water that would not significantly reduce yield, and also identified potential crops and areas where brackish water can be used.

BRS continued analysis of changes in chloride levels of rainfall across the Murray–Darling Basin to determine whether climate change is affecting rainfall salinity, and hence soils, across the basin.

Targeted assessments

The bureau draws on its datasets, research capabilities and analytical skills to provide integrated social and biophysical assessments of regions and industries to meet demand from industry groups, governments and other stakeholders.

In 2007–08, targeted assessments included:

• web‑based industry profiles of the economic, social and environmental contributions of six major agricultural industries, as part of the Signposts for Australian Agriculture project managed by the NLWRA
• collation of research undertaken by the department on climate, drought and water
• work on climate risk and industry adaptation; recycled water; community capacity to manage change; and water dependence
• assessment of the operational feasibility of stereo-video and monitoring options for the southern bluefin tuna fishery farm sector
• work on key fisheries wildlife bycatch issues, including an integrated approach to implement national bycatch strategies and ensure effective bycatch mitigation
• social science reports on aspects of climate change, water for agriculture, NRM, biosecurity, and the circumstances of people and communities in rural and regional Australia.

BRS also made a significant contribution to the department’s response to the equine influenza outbreak in 2007, including secondment of staff to Queensland and New South Wales government agencies to support mapping and epidemiology work, establishment of data flows from the New South Wales and Queensland governments to the Office of the Chief Veterinary Officer, and provision of daily maps for situation reports.

Table 17
BRS reports published in 2007–08
Title	Published
Reporting fire in Australia’s forests and vegetation	July 2007
Fishery status reports 2006	July 2007
Fact sheet: What burns when? Distribution of non-forest bushfires across Australia	July 2007
Invasive marine species range mapping	July 2007
GM oilseed crops and the Australian oilseed industry	August 2007
Approaches for measuring and accounting for ecosystem services provided by vegetation in Australia	August 2007
Inventory of water data standards, protocols and infrastructure	August 2007
Water data stakeholder analysis	August 2007
Review of the Australian Water Resources Assessment 2000	August 2007
Australia’s plantation log supply 2005–2049	August 2007
Crown Damage Index (CDI) 3 worksheets for data	August 2007
A strategic approach to the management of ornamental fish in Australia	August 2007
Pest and disease assessment in eucalypt plantations	August 2007
Managing bird damage to fruit and other horticultural crops	September 2007
Meet the 2007 winners of Science and Innovation Awards for Young People	September 2007
Science for decision makers: Plantations and water use	September 2007
Climate data for the Australian Water Availability Project	October 2007
Improving fox management strategies in Australia	October 2007
Revegetation monitoring and reporting in Australia	October 2007
Biosecurity and small landholders in peri-urban Australia	October 2007
Science for decision makers: Water Banking	October 2007
Science for decision makers: Managing non-renewable groundwater resources	October 2007
Science for decision makers: Groundwater recharge	October 2007
Science for decision makers: Understanding groundwater	October 2007
Vegetation management: toward sustainability for vegetation management—Mitchell grasslands	October 2007
Revegetation monitoring and reporting in Australia	October 2007
Science for decision makers: Managing interactions between humans and seals	February 2008
The changing face of Australia’s forests	March 2008
Country matters: social atlas of regional and rural Australia 2008 (full report, summary booklet and four thematic booklets)	April 2008
Australia’s state of the forests 2008 (full report and executive summary)	May 2008
Climate risk and industry adaptation report	May 2008
Australia’s plantation update 2008	June 2008
Note: BRS also provided other reports to clients. Those reports are not included in this list, but may have been published at the clients’ discretion.

Sustainable natural resource use

BRS advice supports and informs portfolio policy initiatives on sustainable natural resource use, including land management, forestry, and agricultural production.

In 2007–08, BRS completed a review of approaches, technologies and jurisdictional arrangements for improving Australia’s capacity to monitor wind and water soil erosion. Review recommendations will guide the establishment of an integrated national soil condition monitoring system.

The bureau also completed a dataset establishing a 2004 baseline for the extent of native vegetation across Australia, in partnership with the NLWRA and state agency partners.

BRS supported 29 research and extension subprojects under the National Feral Animal Control Program to provide land managers with tools and information to manage pest animals more effectively. One of the higher profile products from the program was the world’s first manufactured wild pig bait, ‘PIGOUT’, which will aid management of wild pigs in Australia and overseas. The bureau also launched two major reviews (Managing bird damage to fruit and other horticultural crops and Improving fox management strategies in Australia) and distributed them widely to pest animal managers, NRM groups and individual landholders.

The bureau’s forest and plantation inventory data and analyses were used in research and analysis of such matters as water use in catchments; managed investment schemes and the potential for carbon sequestration; the development of Australia’s emissions trading scheme; and the role of forests in meeting community needs and industry development. This information also allowed Australia to meet its international reporting obligations.

Science and Innovation Awards

To encourage young people in rural industries, 17 young people received state and industry sponsored awards at the Science and Innovation Awards for Young People in Agriculture, Fisheries and Forestry 2007. A review of the awards with the sponsors resulted in a new format, launched in April 2008, an increase in the amount for each industry award (from $10 000 to $20 000), and an additional minister’s award of $30,000 to one of the industry winners. The awards were also renamed the ‘Australian Agricultural Industries Young Innovators and ScientistsAwards’.

Outlook for 2008–09

In 2008–09, we will pursue new initiatives to meet the department’s core challenges of climate change, increasing productivity and innovation, improving biosecurity and quarantine systems, and maintaining and expanding trade and market access.

BRS has restructured its resources to reflect these priorities. BRS programs are now titled Climate Impact Sciences; Water Sciences; Biosecurity and Statistical Sciences; Social Sciences; Fisheries and Marine Sciences; Land and Forestry Sciences; and Business Strategy and Operations. This reorganisation is underpinned by a strategic plan with guiding principles for the bureau’s work in the coming years, with a primary focus on sustainable productivity in our portfolio industries.

Responding to reviews and developments in Australian biosecurity and quarantine systems, BRS is making a substantial contribution to furthering the science underpinning biosecurity and risk analysis by administering the Australian Centre of Excellence for Risk Analysis.

A new emphasis for BRS will be on advising government on the rural sector’s adaptation to climate change, and particularly the impact of climate change on agricultural cropping, land‑use viability and regional productivity.

Our advice will include a focus on biosecurity impacts, such as the changing distribution, resilience and potential of pests and diseases, and on the social impacts of a changing climate on rural communities and industries.

Table 18
Output 7 performance, 2007–08
Output 7 objective To promote more sustainable, competitive and profitable Australian agricultural, food, fisheries and forestry industries by delivering effective, timely, policy-relevant scientific advice, assessments and tools for decision-making.
Output component: Scientific advice is relevant to the portfolio’s policy agenda
Performance measures A high level of demand by stakeholders, including through new technologies. Evidence of scientific advice used in policy decisions and related public information. High-quality scientific advice is provided for clients on time as measured by client feedback. Performance Demand by stakeholders BRS undertook 107 projects commissioned by clients within the portfolio or by other government agencies. In 2007–08, 57% of BRS work was funded externally through revenue from the sale of goods and services (2006–07: 61%). The bureau monitors activity on all BRS websites. Statistics for 2007–08 showed 297 958 visits, 3.73 million page views and 40 819 downloads of reports. In addition, more than 4045 printed copies of reports were distributed to people who requested them (2006–07: 16 000 copies). In 2007–08, visits to key BRS internet tools included: 26 334 to the National Agricultural Monitoring System website (2006–07: 25 756) 31 870 to the Australian Natural Resources Data Library (2006–07: 26 915) 22 345 to the Australian Collaborative Land Use Mapping Program. Other tools developed and maintained for stakeholders during 2007–08 included Rainfall to Pasture Growth Outlook, NRM Spatial Information System, Country Matters: social atlas, Murray–Darling Basin Community Stream Sampling, and the Australian Water Data Infrastructure system. Demand for social science advice grew. Social research included work on climate, drought and water (a collation of the department’s research); climate risk and industry adaptation; recycled water; assessing a community’s capacity to manage change; and assessing water dependence. We delivered social science reports on aspects of climate change, water for agriculture, natural resource management, biosecurity, and the circumstances of people and communities in rural and regional Australia. BRS released the 2008 update of Country matters: social atlas, the five-yearly national State of the forests 2008 report, and a number of additions to the Science for decision makers publication series. The bureau presented 19 weekly seminars to the end of 2007, covering scientific research in current portfolio priority areas and demonstrating how science can add value to policy development. The seminars attracted an average of 110 people (up from 83 in the previous year). The department monitors the print and broadcast media for mentions of BRS reports and activities that indicate they have generated public and stakeholder interest. Mentions in national and major metropolitan papers and radio broadcasts totalled 155 in 2007–08. The main topics were: Country matters: social atlas of rural and regional Australia Climate risk and industry adaptation report Advice used in policy decisions and public information State of the forests 2008 the Science and Innovation Awards for Young People in Agriculture, Fisheries and Forestry. Drought and climate change Reviewed 96 Exceptional Circumstances (EC) declared areas; completed 14 interim assistance applications and 30 EC reports using NAMS; delivered weekly and monthly climate reports to the minister, Centrelink, the Department of the Environment, Water, Heritage and the Arts, and the Department of the Prime Minister and Cabinet; published climate risk and industry adaptation study on stakeholder perceptions of climate change; assessed coastal irrigation areas at risk from rising sea levels. Water Provided groundwater assessments in the CSIRO-led Murray–Darling Basin Sustainable Yields project; reported on rainfall chloride levels across the basin and their impact on soil; assessed potential to use brackish water in contingency planning in the basin. Fisheries Led or participated in international meetings of the Commission for the Conservation of Southern Bluefin Tuna; Western and Central Pacific Fisheries Commission; Indian Ocean Tuna Commission and South Pacific Regional Fisheries Management Organisation; advised on the Commonwealth Fisheries Harvest Strategy policy, ecological risk assessment, the fisheries structural adjustment package. and national plans of action and threat abatement plans for seabirds and sharks. Biotechnology Led the Australian delegation to the Asia–Pacific Economic Cooperation (APEC) research, development and extension agricultural biotechnology meeting and high-level dialogue on agricultural biotechnology (February 2008, Lima, Peru). Forestry Represented the government at international meetings and workshops of the Food and Agriculture Organization and the Montreal Process; provided scientific advice for reviews of regional forest agreements, illegal logging, plantations, timber certification and other forestry issues. Biosecurity and quarantine Completed biosecurity projects on cucumber fly; screw-worm fly; terrestrial and marine pest incursions; and exotic vertebrates. Feedback from clients BRS conducts independent client feedback surveys to obtain objective, quantitative information on its ability to meet client needs for scientific advice. The bureau also has a planning and performance review calendar that includes twice-yearly strategic planning meetings and reviews, and invites clients and stakeholders to participate in steering groups for major projects. In June 2008, BRS surveyed 110 clients and stakeholders (2006–07: 135 clients and stakeholders) about the quality of the bureau’s advice. The sample was selected from a pool of contacts and included ministers’ office staff. In the survey, more than 90% of respondents were satisfied or very satisfied with the quality of BRS scientific advice (2006–07: 91%). To support the effective delivery of scientific advice, the BRS Executive Committee reviewed each scientific program twice in the year to check progress on or completion of projects. Along with the program reviews, the bureau also conducted regular client meetings to review progress with service agreements and BRS project plans. In all cases during 2007–08, progress was satisfactory. National Research Priorities BRS reports to the Chief Scientist in October each year on the contribution of its work to the government’s National Research Priorities. This annual report of the department contains only an outline of significant work by BRS to achieve the priorities. Administered item One administered item contributed to Output 7. See Table 19 for performance reporting on that item.

Table 19
Output 7 administered item, 2007–08
Centre of Excellence for Biosecurity Risk Analysis and Research	2007–08: $1.68 million
Performance measure The centre meets its objectives of researching and developing risk analysis tools, guidelines and processes, to build on and strengthen the integrity of Australia’s risk assessment capabilities. Performance The Australian Centre of Excellence for Risk Analysis (ACERA) continues to meet its objectives. An evaluation in 2008 found that the centre is performing well and that funding from the department should continue. The evaluation recommended that the steering committee, the department’s divisions and the centre should interact more closely to ensure that work relevant to the department’s priorities is carried out. That issue has been addressed. In 2007–08, three ACERA outputs were endorsed. Those products directly enhance the department’s expertise in risk analysis. Seven new projects were added to the work plan for 2007–08, and eight new projects for 2008–09.

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Economic Research

The department delivers Output 8 through the Australian Bureau of Agricultural and Resource Economics (ABARE), which provides high‑quality economic and policy advice on portfolio industries, international trade, natural resource management (NRM) and climate change.

Priorities

• Conduct research on international trade rules and technical issues, and liaise with researchers in other countries to inform and assist Australian trade negotiators.
• Conduct farm surveys to monitor the production and financial performance of Australian broadacre and dairy farm businesses, and use the data in research on structural adjustment and drought recovery and in briefings on Exceptional Circumstances (EC) assistance.
• Research the interactions between regional climatic conditions and the availability of water resources to develop an understanding of the potential impacts of climate change on national and global agricultural production.
• Develop economic frameworks that support cost-effective biosecurity and timely analysis of potential economic impacts of exotic pests and diseases.
• Conduct and report on research to assist in the development of efficient and effective NRM policies.
• Assess the outlook for commodities and provide detailed market information to support business and policy decisions.

Highlights

• Provided research that was used widely, including by the Primary Industry Ministerial Forum, the Garnaut Climate Change Review and the National Climate Change Research Strategy for Primary Industries.
• Provided farm survey data and economic analysis for assessments of 43 EC regions.
• Surveyed irrigation farms in the Murray–Darling Basin to provide farm‑level economic data.
• Attracted 850 delegates to Outlook 2008 national conference in Canberra.
• Attracted an average of 110 delegates to regional Outlook conferences in each state and the Northern Territory.
• Delivered cost analysis of managing equine influenza outbreak.
• Completed analysis of global trade liberalisation and its impacts on China.
• Published country studies on Korea, Indonesia and India.
• Published inaugural Fishery economic status report, reviewing the economic health of Commonwealth fisheries.
• Used surveys of sugar, vegetable and wine grape industries to respond to industry issues.

Agricultural analysis—international trade

ABARE conducted research into international trade, particularly global trade rules and technical issues. ABARE also communicated and collaborated with researchers in countries that share Australia’s agricultural trade interests (including the Cairns Group and G20 countries) to help Australian negotiators achieve the best possible outcomes from trade negotiations.

ABARE provided an analysis of United States domestic support for crops under World Trade Organization (WTO) rules to the department and the Department of Foreign Affairs and Trade. The bureau also provided briefings and various reports on current issues before the WTO, papers for Organisation for Economic Co‑operation and Development (OECD) meetings, and briefings and papers on country-specific issues, including the United States Farm Bill and European Union (EU) support for European farmers.

ABARE undertook an in‑depth analysis and briefing on the Chinese wool industry, in pursuit of the department’s priorities for the Australia–China Free Trade Agreement, and completed a Global Trade and Environment Model analysis of global trade liberalisation and its impacts on China.

Country studies on Korea and Indonesia (both published in September 2007) and on India (December 2007) analysed developments in agricultural production, consumption and trade for each country and canvassed current market access arrangements and their implications for Australia’s agricultural exports. Agricultural trade: the changing environment for trade policy and agricultural prices, a broad overview of current trade issues, was presented at ABARE’s Outlook 2008 conference.

Strengthening our international links in trade research, ABARE staff:

• participated in an OECD experts meeting on methodology for determining producer support estimates
• liaised with officials from the Korea Rural Economics Institute as part of our research into Korean agriculture (published in September 2007)
• discussed capacity building for trade modelling with researchers from the Chinese Institute of Agricultural Economics.

Agricultural analysis—farm performance

ABARE’s farm surveys monitored the production and financial performance of Australian farm businesses, particularly in the broadacre cropping and dairy industries. These fundamental data underpin our work on tracking and understanding productivity growth in the agricultural sector. Our farm surveys provide vital information for research and advice on structural adjustment in agriculture, recovery from drought and EC applications and reviews.

ABARE conducted the annual Australian Agricultural and Grazing Industries Survey and Australian Dairy Industry Survey between July 2007 and December 2007. The survey data were used for in‑depth analyses of productivity growth reported in Australian commodities reports, research reports, regional conference papers and industry reports. Industry reports produced during the year included grains, lamb, beef, sugar, wine grapes and vegetables, and the results were reported widely in industry newsletters and the media.

ABARE also conducted surveys of:

• Australian sugarcane growers, on behalf of the Sugar Industry Oversight Group, covering financial performance in 2006–07
• the Australian vegetable-growing industry (2005–06), on behalf of the Australian Vegetable Industry Development Group
• the financial performance of wine grape producers in the Barossa and Murray Valley regions (2006–07), funded by the Grape and Wine Research and Development Corporation
• the honey bee industry (2006–07), funded by the Rural Industries Research and Development Corporation
• the Murray–Darling Basin irrigation industry, primarily funded by the Department of the Environment, Water, Heritage and the Arts.

ABARE also participated in the United Nations Food and Agriculture Organization (FAO) experts meeting on statistics for farmer incomes (Bangkok, November 2007). The meeting focused on monitoring farm financial performance through surveys, and covered current surveys and their uses, new approaches to collecting and using farm data, and the integration of physical and financial data to identify and understand the drivers of productivity.

Overall, the demand for ABARE farm data continues to be strong, particularly for information relating to productivity growth, drought areas and EC applications, and for regions under strong structural adjustment pressure. In 2007–08, ABARE provided information for 43 EC regions.

Climate change and adaptation

ABARE research on regional climate and water resources provided analysis of the potential impact of climate change on medium- to long‑term agricultural production at the national and global levels.

During 2007–08, ABARE contributed to the whole‑of-government development of climate change policy, particularly through contributions to modelling by the Department of the Treasury. Two ABARE senior modellers were seconded to the Climate Change Modelling Unit of the Treasury to assist with work on setting a medium-term emissions target and on the Carbon Pollution Reduction Scheme.

In collaboration with CSIRO, ABARE also developed a Global Integrated Assessment Model (GIAM) to the proof‑of-concept stage. GIAM links ABARE’s Global Trade and Environment Model (GTEM) with CSIRO’s general circulation model (MK3L) to simulate medium- to long‑term climate change, and the associated impacts, resulting from human induced greenhouse gas emissions. The model has been used to assess the impacts of climate change at the global level.

ABARE provided the Garnaut Climate Change Review Team with economic modelling of the potential long‑term global impacts of climate change (in ‘business as usual’ and global mitigation scenarios) and the potential impacts of catastrophic events. These results contributed to the Garnaut Review’s July 2008 draft paper.

ABARE’s fifth Boathouse Group workshop (‘Climate Change and Emissions Trading: Challenges and Opportunities’) brought together climate change policymakers and economic and technical experts from Australia and overseas. The Boathouse Group aims to improve modelling and analytical capacity and strengthen policymaking through a better understanding of modelling, particularly in relation to emissions trading schemes.

Through Stanford University’s Energy Modeling Forum, ABARE maintained its active participation in the international consortium formed to develop new climate change scenarios for the Fifth Intergovernmental Panel on Climate Change Assessment Report.

ABARE’s work on climate change modelling drew heavily on its in‑house climate general equilibrium models (GTEM and AusRegion), GIAM and land use change model.
At the national level, ABARE:

• presented climate change research findings and analysis to the Primary Industry Ministerial Forum and the National Climate Change Research Strategy for Primary Industries
• held a pre‑conference workshop on ‘Climate Change: Issues and Challenges for the Economy and Society’ at the Australian Agricultural and Resource Economics Society conference, providing a useful forum for professional and academic economists and government policymakers to discuss critical climate change issues
• continued to develop the AusRegion modelling framework to assess the potential impacts of climate change and adaptation responses on Australian agriculture
• published a number of documents, which were widely discussed and quoted in public and professional forums, analysing the likely impacts of climate variability on industries and regions, as well as the potential for the agricultural sector to adapt to climate change.

Biosecurity

In 2007–08, ABARE completed an economic analysis for the working group established to assess the benefits and costs of alternative management strategies for equine influenza in Australia. Two alternatives were assessed: eradication of the disease, and management of the disease through annual vaccination. The analysis established indicative dates by which eradication would need to be achieved for the eradication strategy to be more cost‑effective than the alternative.

The working group provided this information to decision makers managing the disease outbreak.

Natural resource management

ABARE’s datasets, analytical skills, research and reports assisted the Australian Government and other stakeholders to develop efficient and effective NRM policies.

ABARE provided a review of alternative methodologies for prioritising NRM funds to the department and the Department of the Environment, Water, Heritage and the Arts. Information to assist NRM investment decision-making was provided, including maps showing various economic parameters (such as on‑farm income, land value, rate of return, farm debt, off‑farm income, physical capital and NRM expenditure) for selected industries.

ABARE continued to assess the economic efficiency of fisheries and to monitor their economic performance. In work to assist the fishing industry and regulators during 2007–08, ABARE:

• reported to the Fisheries Resources Research Fund on productivity and profitability trends for the Eastern Tuna and Billfish Fishery and the gillnet, hook and trap sector of the Southern and Eastern Scalefish and Shark Fishery
• developed a methodology to provide interim estimations of economic performance indicators before the annual release of the Fisheries survey report
• published the inaugural Fisheries economic status report, which provided basic information on Commonwealth fisheries and reviewed their economic health
• released the findings of a study highlighting options to improve the economic benefits from fishing for Torres Strait Islanders
• published the annual Australian fisheries statistics report
• published a paper on the outlook for fisheries products and trade for the Outlook 2008 conference
• reported to the department on the Aquaculture Industry Action Agenda
• participated in fishing industry forums, including various fisheries resource assessment groups, working groups and committees.

For Australia’s forestry industries, ABARE:

• released Australian forest and wood products statistics (December 2007 and May 2008), which included updated data series and analysis of trends in Australian forestry and the results of the inaugural ABARE sawmill survey (for the department and Forest and Wood Products Australia)
• reported to the department on the economic potential for timber plantations in the Tiwi Islands
• briefed the Department of the Treasury on the potential impacts of an emissions trading scheme on afforestation and land‑use change
• completed the FAO Pulp and Paper Industry Survey, the FAO Forest Products Survey and the Gross Value of Log Production Survey in the final quarter of 2007.

In work to support national water policy, ABARE:

• published a paper examining the economic implications of water scarcity for irrigators in the Murray–Darling Basin, including an assessment of the effects of a hypothetical 20% reduction in water availability and options for mitigating those effects
• prepared regional economic profiles for the Murray–Darling Basin and briefed the department on the regional economic impacts of possible large reductions in irrigated agricultural production and on the economic costs of providing a water reserve in the southern Basin for 2008–09
• presented a paper at the 2008 conference of the Australian Agricultural and Resource Economics Society on the use of scarcity pricing to allocate urban water in dry periods and to aid investment decision‑making.

Commodities outlook

ABARE has a critical role in monitoring and assessing the outlook for the commodities supplied by Australia’s rural and resources sectors. This fundamental information supports business and policy decisions across government and the private sector.

In 2007–08, ABARE continued this work through regular assessments in the quarterly publication Australian commodities and crop forecasts in the Australian crop report. A special crop update was also published in October 2007, after a significant deterioration in seasonal conditions. These forecasts were used extensively by industry decision-makers, were reported widely in the media, and were also presented at a number of industry conferences and meetings throughout the year.

In March 2008, ABARE once again hosted Outlook, Australia’s premier commodity outlook conference, in Canberra. Outlook 2008 was opened by Prime Minister Kevin Rudd and addressed by the Minister for Agriculture, Fisheries and Forestry, Tony Burke. The conference attracted 856 delegates, 18% more than Outlook 2007.

ABARE regional Outlook conferences were held in each state and the Northern Territory, with an average of 110 delegates attending each conference.

Table 20
ABARE reports, 2007–08
Title	Published
Australian beef
08.1: Financial performance of beef farms—2005–06 to 2007–08	June 2008
Australian commodities
Climate change—issues and challenges for Australian agriculture and forestry (article)
Indonesian agriculture—implications of import regulations for Australian agricultural exports (article)
Korean agriculture—implications of structural change for Australian agriculture (article)	September 2007
Australian commodities
Climate change: impacts on Australian agriculture (article)
Farm management deposits: use and interaction with exceptional circumstances assistance (article)
India’s economic prospects and implications for Australia’s commodity exports (article)
Minerals and energy: major development projects—October 2007 listing (article)	December 2007
Australian commodities
Farm financial performance—Australian farm income and drought recovery
2005–06, 2006–07 and 2007–08 (article)
Global integrated assessment model—a new analytical tool for assessing climate change risks and policies (article)
Murray–Darling Basin—economic implications of water scarcity (article)
Productivity growth—Australian broadacre and dairy industries (article)	March 2008
Australian commodities
Minerals and energy: major development projects—April 2008 listing (article)	June-2008
Australian crop and livestock report: drought update	October-2007
Australian crop report	September, December 2007; February, June 2008
Australian dairy
07.1: Feed availability—results from a survey of dairy farmers	August 2007
Australian energy statistics—energy update 2007	July 2007
Australian energy: national and state projections to 2029–30	December 2007
Australian farm survey results—2005–06 to 2007–08	April 2008
Australian fisheries surveys report 2007: results for selected fisheries 2004–05 and 2005–06	October 2007
Australian fisheries statistics—2007	June 2008
Australian forests and wood products statistics—March/June quarters 2007	October 2007
Australian forests and wood products statistics—September/December quarters 2007	May 2008
Australian grains
07.2: Outlook for 2007–08 and industry productivity	December 2007
08.1: Financial performance of grain producers, 2005–06 to 2007–08	June 2008
Australian lamb
08.1: Financial performance of slaughter lamb farms, 2005–06 to 2007–08	June 2008
Australian mineral statistics
September-2007	June quarter 2007
December-2007	September quarter 2007
March-2008	December quarter 2007
June-2008	March quarter 2008
Australian sugar cane growers: financial performance 2005–06	October 2007
Australian vegetable growing industry: an economic survey 2005–06	October 2007
Australian wine grape production: projections to 2009–10	May 2008
Barriers to ASEAN meat exports: economic impacts of disease outbreaks and policy responses	November 2007
Challenges for agricultural markets: coexistence, segmentation of grain markets, costs and opportunities	November 2007
Economic impacts of GM crops in Australia	May 2008
Energy in Australia 2008	February 2008
Energy security, clean technology development and climate change: addressing the future challenges	September 2007
Fisheries economic status report	October 2007
GM crops in emerging economies—impacts on Australian agriculture	March 2008
Indigenous people in aquaculture	August 2007
Live animal exports: a profile of the Australian industry	February 2008
Mineral exploration in APEC economies: a framework for investment	December 2007
Minerals and energy: major development projects
October 2007 listing	November 2007
April 2008 listing	May 2008
Natural gas in India—prospects for LNG imports	December 2007
Research and development in titanium—implications for a titanium metal industry in Australia	March 2008
Technology: toward a low emissions future	September 2007
The European Union’s Common Agricultural Policy: a stocktake of reforms	August 2007
Torres Strait Islanders: improving their economic benefits from fishing	November 2007
Wine grape growing farms in the Riverland, South Australia: financial performance of farms 2005–06	September 2007
Conference papers
Agriculture and resource industry performance in the Geraldton region	August 2007
Agriculture in Indonesia: a review of consumption, production, imports and import regulations	August 2007
Commodity outlook and financial performance for central western Victoria	May 2008
Commodity outlook and financial performance for Gippsland farms	April 2008
Commodity outlook and financial performance of agriculture in central northern Victoria	May 2008
Commodity outlook and financial performance of agriculture in northern Queensland	April 2008
Commodity outlook and financial performance of farms in south-west Victoria	April, May 2008
Commodity outlook and financial performance of farms in the Murraylands region of South Australia	September 2007
Financial performance of farms in northern Tasmania	July 2007
Financial performance of farms in the Gippsland region	July 2007
Performance of agriculture and resource industries in northern Australia	October 2007
Urban water management: optimal price and investment policy under uncertainty	February 2008

Other important work

ABARE’s Resources and Energy work program focuses on providing minerals and energy data, economic analyses, forecasting and briefing services to the Department of Resources, Energy and Tourism under a purchaser–provider agreement.

As part of the agreement, ABARE developed a comprehensive set of long‑term energy projections for Australia, providing government, industry and the public with valuable information on which to base decisions affecting Australia’s energy sector.

To underpin the projections, ABARE undertook the Fuel and Electricity Survey, which provided the primary data source for historical energy statistics—an essential resource for a range of stakeholders. The survey also provided one of the main bases for Australia’s international reporting to agencies such as the International Energy Agency and APEC.

In 2007–08, ABARE continued to maintain detailed time‑series databases of industry-specific and international trade information. Drawing on this extensive information, ABARE published a range of statistical reports of major interest to Australia’s minerals and energy industries. One example is Major minerals and energy projects, which provides up‑to-date information on major new mine and processing proposals and developments in Australia, together with analysis of exploration and capital expenditure trends. This listing provides the basis for assessing the adequacy of Australia’s supply capacity and the potential contribution of the minerals and energy sector to Australian economic growth.

In the area of internationally focused minerals and energy research, ABARE published a major study, Mineral exploration in APEC economies: a framework for investment, in December 2007. The APEC Energy Working Group commissioned ABARE to assess the institutional and regulatory frameworks for mineral exploration in the Asia–Pacific region, and to contribute to mineral policy making by recommending actions to facilitate ongoing investment in the sector.

Outlook for 2008–09

In 2008–09, ABARE will improve the methodology used for the regular farm surveys to support more in‑depth analysis of productivity growth in the agriculture sector. The farm surveys program will also be expanded to allow for more detailed analysis of farm performance at a finer regional level.

ABARE will continue to develop Australia’s first integrated assessment model—the Global Integrated Assessment Model—to better understand the potential domestic and international costs and benefits of climate change and climate-change response policies. ABARE will also continue to work with the Department of Climate Change and the Treasury in developing the proposed emissions trading scheme and analyses of climate change mitigation and adaptation strategies.

In 2008–09, the water research program will focus on estimating the economic impacts of reduced water availability on irrigated industries and regions, using estimates provided by CSIRO. This research will assist in identifying a number of potential strategies to mitigate those impacts.

In the fisheries program, ABARE will:

• assess the economic impact of climate change on the fishery sector and possible policy responses
• assess the effects of the recent structural adjustment package on the profitability of Commonwealth fisheries
• construct suitable productivity indexes for the evaluation and improvement of fisheries management.

In 2008–09, ABARE will analyse developments in the agricultural sector of a country or region of importance to Australia, such as India, Russia or the Ukraine.

ABARE will continue to deliver a program of economic research and analytical and data services on energy and mineral commodities to the Department of Resources, Energy and Tourism under purchaser–provider arrangements.

Table 21
Output 8 performance, 2007–08
Output 8 objective To contribute to the long-term competitiveness of Australia’s agricultural, fishing, forestry, energy and minerals industries by providing rigorous and independent economic research, analysis and forecasts.
Output component: High-quality economic research and advice
Performance measure A high level of satisfaction with the quality of Australian Bureau of Agricultural and Resource Economics (ABARE) research as evidenced in the annual client satisfaction survey results. Performance In a web-based client survey, results indicated: 80% were satisfied to very satisfied with ABARE’s ability to provide unbiased and independent information (2006–07: 81%) 93% (2006–07: 73%) were satisfied to very satisfied with the quality of ABARE’s research 85% (2006–07: 55%) were satisfied to very satisfied with ABARE’s contribution to policy or decision making. Overall, 93% (2006–07: 61%) of clients surveyed have a high degree of satisfaction with the service provided by ABARE.
Output component: Timely and relevant economic research
Performance measures Forecasts released to pre-arranged schedules. Policy research completed in time to feed into decision-making processes. Performance Australian commodities was released quarterly to the prearranged schedule (the schedule for regular forecast publications is published annually on the ABARE website). All other reports were released on schedule, with the exception of Australian food statistics. All policy research was completed in time to contribute to policy decisions. All contracted research was completed within negotiated timeframes.
Output component: Effective communication and dissemination of economic advice to stakeholders
Performance measures The number of normalised reports produced. The number of national, regional and international conferences hosted by ABARE. The number of website visitors. The number of print, radio and television mentions. The number of publications requested by stakeholders. Performance In 2007–08, ABARE produced 79 normalised reports, an 8% decrease from 2006–07 (86). Numbers of normalised reports are determined by dividing the total number of pages produced in all ABARE publications, papers and datasets by the average length of reports (50 pages). During the year, ABARE hosted: one international conference (2006–07: one) one national conference (2006–07: one) seven regional conferences. (2006–07: seven). A survey of delegates attending the Outlook 2008 conference found that 90% (Outlook 2007 88%; Outlook 2006 88%) were satisfied to very satisfied with the conference overall. The survey also found that 96% (2007 88%; 2006 95%) of delegates were satisfied to very satisfied with the organisation of the conference. In 2008 the conference returned to the newly renovated National Convention Centre, which allowed greater freedom in session programming and generally provided better facilities for the conference. This is reflected in the higher level of satisfaction with the organisational aspects of the conference compared to 2006–07. The website had 471 487 visitors during the year, a 92% increase on the 245 825 who visited in 2006–07. The average per month was 39 291 (2006–07: 20 486), with a peak in May of 52 509 (May 2006–07: 25 411). ABARE was mentioned 3680 times in the media (print, broadcast and external websites) during the year, up 6% from the 3408 mentions in 2006–07. With continuing drought conditions, there was strong media reporting of ABARE’s statistics and data on the agricultural sector, particularly in relation to crop production and forecasts, and farm sector trends. Continuing strong trends in the resources sector also prompted demand for energy and minerals data and statistics. Reports of particular interest included the four issues of Australian commodities, energy and minerals major project listings, Australian mineral statistics, various beef, lamb and grains industry reports, and reports on genetically modified crops. Stakeholders requested 126 439 publications, an increase 67% from 75 632 requests in 2006–07. These figures represent publications directly distributed by ABARE and do not take into account publications downloaded from the ABARE website (www.abare.gov.au). ABARE has now completed the transition from its online shop to making ABARE reports available as free downloads from its website. Clients and stakeholders are now able to access more than 2000 ABARE publications via the web. The increased accessibility of ABARE reports is reflected in the total number of downloads reported (4 292 535 for 2007–08). National Research Priorities ABARE reports to the Chief Scientist in October each year on the contribution of its work to the government’s National Research Priorities. This annual report of the department contains only an outline of significant work by ABARE to achieve the priorities. In 2007–08, ABARE addressed a number of high-priority issues aligned with the National Research Priorities. This work included: analysis of international and domestic climate change policies, including mitigation and adaptation responses research on economic issues relating to natural resources, including water resource management, natural vegetation management, Commonwealth fisheries and Australia’s aquaculture industries economic analysis of equine influenza for the working group established to investigate the benefits and costs of equine influenza vaccination in Australia. Administered items No administered items contributed to Output 8.

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Biosecurity Australia

Biosecurity Australia, a prescribed agency within the department under the Financial Management and Accountability Act 1997, provides science-based quarantine assessments and policy advice to the department, and particularly to the Director of Animal and Plant Quarantine and the Australian Quarantine and Inspection Service (AQIS).

As a prescribed agency, Biosecurity Australia has an outcome that aligns with, and complements, that of the department. Biosecurity Australia’s outcome is:

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.

Priorities

• Contribute to biosecurity policy decisions by providing scientific and technical advice.
• Open, improve and maintain Australia’s access to international animal- and plant-related markets by providing scientific and technical advice.
• Develop and review biosecurity policies and procedures, consistent with stated Australian Government policy.
• Be strategically involved in international standards-setting organisations, including the World Organisation for Animal Health and bodies established under the International Plant Protection
• Convention and the Codex Alimentarius Commission.

Highlights

• Quarantine Regulations commenced, defining a new, more transparent and timely IRA process.
• Significantly progressed 17 import risk analyses.
• Finalised 16 import risk analyses.
• Completed more than 1000 assessments referred by AQIS.
• Gained 12 new export markets.
• Improved access to 27 export markets.
• Maintained 58 export markets in response to new importing country restrictions.
• Progressed more than 200 technical export market access issues.

Overview

Biosecurity Australia’s activities fall into three principal fields:

• scientific and technical advice on agricultural imports
• scientific and technical advice on agricultural exports
• involvement with international standards setting authorities.

Changes to the import risk analysis (IRA) process were implemented on 5 September 2007 when regulations made under the Quarantine Act 1908 took effect. The changes increase the transparency of the IRA process, impose a regulated timeline on the conduct of an IRA, increase opportunities for consultation and allow for more extensive scientific scrutiny of IRAs. In March 2008, the Chief Executive of Biosecurity Australia announced the commencement of six IRAs under the new IRA process—stonefruit from the US, apples from China, apples from the US, paprika from the Republic of Korea, unshu mandarins from Japan and mangoes from India. In 2008–09, Biosecurity Australia intends to finalise the IRAs for chicken meat, prawns and prawn products, and bananas from the Philippines, all of which will be completed under the pre‑regulated process.

In response to issues raised in a major survey of stakeholders, Biosecurity Australia will continue to strengthen engagement with its stakeholders through the implementation of its communications strategy.

Contribute to biosecurity policy decisions

In 2007–08, Biosecurity Australia:

• commenced 6 new import risk analyses (IRAs) under the regulated IRA process
• significantly progressed 22 other risk analyses, including IRAs and policy reviews
• finalised 16 risk analyses.

Below are examples of Biosecurity Australia’s risk analysis work in progress or finalised during 2007–08. Further details are provided in Table 22.

Risk analyses in progress

• Chicken meat—draft final IRA report provided to the Eminent Scientists Group (ESG) in March 2008; ESG’s report sent to the Director of Quarantine in May 2008
• Prawns and prawn products—stronger interim measures recommended by Biosecurity Australia and implemented in October 2007; draft final IRA report to be provided the ESG for review in August 2008
• Didymosphenia geminata (didymo)—risk analysis for the invasive diatom, didymo, completed in June 2008
• Sudden oak death (review of risks posed by Phytophthora ramorum and P. kernoviae)—protocol for importation of rose plants from affected countries finalised; risk analysis for nursery stock of other host species in progress; diagnostic methods being developed
• Taro—import conditions for fresh taro for human consumption strengthened to aid enforcement of the prohibition on the small corm taro variety; risk analysis for taro being progressed.

Risk analyses finalised

• Elephant semen from Singapore, United States and European Union—policy determination by Director of Quarantine in February 2008
• Preserved duck eggs from Taiwan—policy determination by Director of Quarantine in October 2007
• Return of Australian horses from the 2008 Olympics—policy determination by Director of Quarantine in May 2008
• Maize imports for stock feed and sunflower imports for processing—assessments of low‑risk sources for potential imports for stock feed from Ukraine completed; verification visit of low‑risk sources for potential imports of maize from parts of South Africa completed.

In addition, Biosecurity provided advice to AQIS on matters referred by AQIS. More than 1000 risk analyses were completed, including:

• 530 plant and 450 animal risk analyses covering a wide variety of imports of potential animal and plant quarantine concern, including biological, animal and aquatic animal matters
• 337 weed risk assessments (159 species accepted; 98 species rejected due to their weedy attributes; 80 species required further evaluation).

Open, improve and maintain Australia’s market access

To improve and maintain Australian producers’ access to international markets, Biosecurity Australia worked on more than 200 technical market matters during 2007–08:

• In work on about 100 animal product exports, 6 markets were gained, 6 improved and 10 maintained.
• In work on 108 technical market access issues in involving plant products, 6 markets were gained, 13 markets improved and 48 markets maintained.

Examples of selected market access outcomes achieved with the assistance of scientific and technical advice from Biosecurity Australia are given below; further details are in Table 23.

Market access gained

• Feeder cattle and cattle genetics to Russia—three certificates (feeder cattle, bovine semen and bovine embryos) approved
• Breeding cattle to Ukraine—export protocol approved in March 2008
• Cattle to Israel—final health conditions for feeder, non‑castrated male calves agreed
• Cherries to United States—access gained in January 2008
• Carrots to Korea—regained access for Tasmanian carrots to Korea
• Seed for sowing to Argentina—market access gained for barley, soybean, paspalum and stipa.

Market access improved

• Bovine, ovine and caprine semen to South Africa—Australia’s freedom from Brucella abortus and B. melitensis accepted; further improvements are being discussed
• Breeder cattle to Thailand—a protocol has been finalised
• Ovine and caprine embryos to Peru—final health conditions for import agreed
• Seed for sowing to Argentina (ryegrass, sweet clover, panicum, pennisetum and phalaris—negotiated improved import conditions; additional species of currently traded crops now permitted entry.

Market access maintained

• Horses to China, Hong Kong, Japan, Malaysia, Singapore and United Arab Emirates—maintained export markets for permanent and temporary entry into the respective countries, in relation to a number of specific issues
• Honey bees to Japan—agreement achieved to accept queen bees from Western Australia, New South Wales and Queensland under amended conditions
• Livestock to Malaysia—new requirement for Q fever for Australian livestock suspended and subsequently amended
• Horticultural products to Thailand—maintained market access for 34 horticultural commodities by providing 27 technical market access submissions in response to revised plant quarantine regulations
• Plants and plant products to Korea—submitted technical comments on draft proposals to amend quarantine regulations for plant and plant products in support of market maintenance
• Seed for sowing to Argentina—market access maintained by acceptance of a technical market access submission for seeds of 11 crops (oats, canola, buffel grass, Rhodes grass, orchard grass, festuca, sunflower, medic, setaria, sorghum and clover).

Develop and review biosecurity policies and procedures

After consulting stakeholders, the Australian Government amended the Quarantine Regulations to allow for more consultation, increased transparency and improved timeliness of decisions. There is now more extensive scientific scrutiny of IRAs. However, Australia maintains a conservative approach to quarantine and a science-based risk analysis process. The amendments came into force on 5 September 2007.

The amendment details are as follows:

• The regulations provide for a standard or expanded IRA process, depending on the complexity of the science involved and the nature of the biosecurity risks. A standard IRA is to be completed within 24 months and an expanded IRA within 30 months.
• Timelines can be suspended in certain circumstances, such as when Biosecurity Australia is seeking scientific information considered essential to complete an IRA.
• The Import Market Access Advisory Group (a high‑level Department of Agriculture, Fisheries and Forestry group) has been established to recommend priorities for import proposals, thus assisting
• Biosecurity Australia to develop its work program. The group also monitors the progress of IRAs undertaken by Biosecurity Australia.
• The regulated IRA process incorporates a wider range of risk analyses, encompassing some analyses previously undertaken as ‘policy reviews’ (that is, reviews where relevant import policy already exists). This process provides greater opportunity for stakeholder input and public scrutiny.
• The role of the ESG has been strengthened to include assessing conflicting scientific views provided to the group, considering any new science, and reviewing the conclusions of draft final IRA reports to ensure that they are scientifically reasonable, based on the material presented.

Strategic involvement with international organisations

• Biosecurity Australia continued strategic involvement with international standards-setting organisations, including the World Organisation for Animal Health (OIE) and the bodies established under the International Plant Protection Convention (IPPC), including by:
• providing specific technical advice on OIE international animal health standards and guidelines, in particular for bovine spongiform encephalopathy, foot‑and-mouth disease, avian influenza and equine influenza
• participating in OIE expert group assessment of countries’ veterinary services and in technical working groups with the animal health quadrilateral group (Australia, Canada, New Zealand and the United States)
• contributing to the development and approval of many IPPC International Standards on Phytosanitary Measures (ISPMs) and strategies and the future work program of the organisation
  participating in IPPC technical panels for fruit flies and phytosanitary treatments, as well as in the IPPC bodies developing the IPPC business plan and future work program.

Table 22
Biosecurity Australia—contribution to biosecurity policy decisions
Risk analyses in progress, 30 June 2008
Apples from China	Issues paper for the import risk analysis released on 8 July for a 60-day consultation period
Apples from the United States	Issues paper for the import risk analysis released on 8 July for a 60-day consultation period
Asian gypsy moth	Progress made on assessing the risk posed by the moth entering Australia on vessels from Japan
Bananas from the Philippines	Substantial progress made in preparing draft final IRA report for the Eminent Scientists Group to ensure that stakeholder comments have been properly considered
Capsicums from Korea	Draft IRA report issued on 30 May 2008 for a 60-day consultation period
Chicken meat	Draft final IRA report sent to the Eminent Scientists Group in March 2008; Group’s report sent to the Director of Quarantine in May 2008
Didymosphenia geminata (didymo)	Risk analysis for the invasive diatom, didymo, completed in June 2008
Fresh and semi-dried dates from Egypt	Progressed
Fresh baby ginger from Fiji	Preliminary work undertaken
Guava rust	Risk analysis progressed
Mangoes from additional areas of the Philippines	Significant progress made
Mangoes from India	Provisional final IRA report issued on 29 May 2008 for a 30-day appeal period
Prawns and prawn products	Stronger interim measures recommended by Biosecurity Australia and implemented in October 2007; draft final IRA report will be provided to the Eminent Scientists Group for review
Stonefruit from the United States	Draft import risk analysis report for stonefruit from California, Idaho, Oregon and Washington issued on 29 April 2008 for a 60-day consultation period
Sudden oak death (review of risks posed by Phytophthora ramorum and P. kernoviae)	Protocol for importation of rose plants from affected countries finalised; pest risk analysis for nursery stock of other host species in progress; diagnostic methods being developed
Taro	Import conditions for fresh taro for human consumption strengthened to aid enforcement of the prohibition on the small corm taro variety; risk analysis for taro progressed
Various IRAs and policy reviews	Progressed, including IRAs of ruminant semen from South Africa and of non-human primates, and policy reviews for hatching eggs, ornamental finfish (gourami iridovirus), dairy products, rabies and babesia
Risk analyses finalised, 2007–08
Apples from New Zealand	Provided input to Australia’s first written submission, which was presented in Geneva in July 2008
Chilled pineapple pulp from Thailand	Risk analysis completed
Chilled pomelo pulp from Thailand	Risk analysis completed
Elephant semen from Singapore, United States and European Union	Policy determination by Director of Quarantine in February 2008
Horses	Equine influenza interim measures recommended in September 2007 after outbreak in Australia; additional requirements recommended in December 2007
Horses from Macau	Policy determination by Director of Quarantine in July 2007 permitting importation and the return of Australian horses after competing in events in Macau
Maize imports for stock feed	Assessments of low-risk sources for potential imports of maize, sorghum, sunflower and wheat for stockfeed from Ukraine completed; verification visit of low-risk sources for potential imports of maize from parts of South Africa completed
Penguins from New Zealand	Policy determination by Director of Quarantine in February 2008
Preserved duck eggs from Taiwan	Policy determination by Director of Quarantine in October 2007
Return of Australian horses from the 2008 Olympics	Policy determination by Director of Quarantine in May 2008
Zoo rodents	Policy determination by Director of Quarantine in June 2008

Outlook for 2008–09

Central for Biosecurity Australia in 2008–09 will be:

• managing and monitoring the conduct of IRAs under the regulated IRA process
• continuing to strengthen engagement with stakeholders
• completing major IRAs.

Important issues for the agency in 2008–09 will include:

• implementation of the Australian Government’s response to the Callinan inquiry into equine influenza and the Quarantine and Biosecurity Review
• implementation of the regulated IRA process
• completion of three longstanding import risk analyses (Philippine bananas, chicken meat and prawns)
• continuing engagement with stakeholders through Biosecurity Australia’s communication strategy
• continued engagement with the Australian Centre of Excellence for Risk Analysis
• a continued focus on protecting Australia from diseases emerging here or overseas, particularly zoonotic diseases (those that affect humans and animals)
• an increased focus on the development of specific ISPMs through international forums to ensure that Australia’s interests are represented.

Biosecurity Australia’s work will assist agricultural exporters to meet the challenge of an increasingly difficult marketing environment, arising as a result of countries exercising their rights under the World Trade Organization’s Sanitary and Phytosanitary (SPS) Agreement. In this context, additional import conditions are sometimes applied without reasonable notice to Australian suppliers, placing greater demand on Biosecurity Australia to provide technical support and representations to maintain market access.

Table 23
Biosecurity Australia—markets opened, improved and maintained for Australia’s exports, 2007–08
Market access gained
Abalone to Malaysia	Health certificate for the export of abalone for aquaculture purposes approved
Bovine semen to Colombia	After lengthy negotiations, Biosecurity Australia’s proposed health conditions accepted
Breeding cattle to Ukraine	Export protocol approved in March 2008
Carrots to Korea	Regained access for Tasmanian carrots to Korea in November 2007
Cattle to Israel	Final health conditions for feeder, non-castrated male calves agreed
Cherries to United States	Access gained in January 2008
Feeder and cattle genetics to Russia	Three certificates (feeder cattle, bovine semen and bovine embryos) approved
Seed for sowing to Argentina	Market access gained for barley, soybean, paspalum, stipa in January 2008
Sheep and goats to Pakistan	Health requirements for breeding sheep and goats finalised
Market access improved
Bovine, ovine and caprine semen to South Africa	Australia’s freedom from Brucella abortus and B. melitensis; further improvements are being discussed
Breeder cattle to Thailand	A protocol has been finalised
Breeding cattle to New Caledonia	Dispensation received for a consignment to be exported from Sydney; health conditions agreed for the export of cattle from a port of export that is not in the bluetongue zone
Cherries to United States	In-principle acceptance of new cold treatment at 3?C for Queensland fruit fly
Citrus to Japan	Formal acceptance of new 2? and 3?C cold treatment for citrus varieties
Citrus to Taiwan	In-principle acceptance of new 2?C cold treatment for fruit fly
Fruit fly area freedom recognition by Taiwan	Formal recognition accepted for the Riverland and Sunraysia
Grain to India	Trade continued under new revised quarantine conditions
Mangoes to Japan	Achieved reduced inspection rate for mangoes
Mangoes to Malaysia	Irradiation accepted as a quarantine treatment
Oats to India	Improved market access conditions
Ovine and caprine embryos to Peru	Final health conditions agreed
Seed for sowing to Argentina	Agreed improved import conditions for ryegrass, sweet clover, panicum, pennisetum and phalaris: additional species of currently traded crops now permitted entry into Argentina
Sheep to Israel	Commercially viable health requirements for fattening sheep agreed
Stonefruit to Canada	Improved access conditions gained in September 2007
Tasmanian apples to Japan	Expanded access to cover all varieties; trial shipment planned in 2008
Market access maintained
Grain for consumption to Thailand	Agreed access under amended quarantine regulations
Honey bees to Canada	Resumption of imports of honey bees from Western Australia under revised conditions for small hive beetle
Honey bees to Japan	Acceptance of queen bees from Western Australia, New South Wales and Queensland under amended conditions
Horses to China	Acceptance of a revised health certificate for horses from Australia
Horses to Hong Kong	Agreed amendments to requirements for permanent importation of horses
Horses to Japan	Agreed model health certificate for the permanent importation of horses
Horses to Malaysia	Import ban lifted on Australian horses
Horses to Singapore	Agreed arrangements for the temporary importation of horses from Australia
Horses to the United Arab Emirates	Agreed model health certificate for horses
Horticultural products to Thailand	Maintained market access for 34 horticultural commodities under revised plant quarantine regulations
Livestock to Malaysia	Malaysia suspended and subsequently amended its new requirement for Q fever that allowed continued access for Australian livestock
Olympic horses to Hong Kong	Approved conditions for Australian horses competing in Olympic and Paralympic events in 2008
Plants and plant products to Korea	Agreed access under amended quarantine regulations
Seed for sowing to Argentina	Agreed market access for seeds of 11 crops (oats, canola, buffel grass, Rhodes grass, orchard grass, festuca, sunflower, medic, setaria, sorghum and clover)
Other notable achievements
Apples to China	Access for apples from all areas of Australia: prepared submission and proposed amendments to the protocol
Citrus to China	Prepared submission and proposed improvements to current protocol
Citrus to United States	Agreed in principle to 2?C and 3?C cold treatment for fruit fly in citrus exports
Fruit fly International Standards on Phytosanitary Measures (ISPMs)	Contributed to development of draft ISPM for fruit flies (Tephritidae)
Lychees to New Zealand	Submitted comments on draft Import Health Standard for Australian lychees
Lychees to United States	Finalised import conditions, which are awaiting formal rule-making consideration
Macadamia nuts to Argentina	Provided a technical market access submission for consideration
Seed potatoes from South Australia to Thailand	Seeking market access
Sorghum seed to Peru	Provided comments on the pest risk analysis and proposed import conditions
Stonefruit (cold disinfestation) to New Zealand	Submitted detailed cold disinfestation data for fruit flies on stone fruit and cherries
Summerfruit and cherries to Taiwan	Progressing acceptance of cold treatment at 2?C and 3?C for fruit flies
Table grapes to China	Provided additional technical information for China to program its risk analysis
Tasmanian cherries to Japan	Significantly progressed the development of a non-fumigation protocol for export to Japan
Vegetable exports to Taiwan	Submission provided for recognition of pest-free areas for specific nematode pests to maintain exports of root vegetables after proposed changes to import requirements

Table 24

Biosecurity Australia performance, 2007–08

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.

Output: Provide science based quarantine assessments and policy advice

Performance measures Quality Import risk analyses satisfactorily progressed. Stakeholder views as reflected through surveys and other feedback. Quantity Number of risk analyses and AQIS referrals completed. Number of technical market access issues progressed. Performance Import risk analyses satisfactorily progressed In 2007–08, Biosecurity Australia: satisfactorily progressed 17 risk analyses (2006–07: 59) finalised 18 risk analyses (2006–07: 18). Stakeholder views as reflected through surveys and other feedback Biosecurity Australia is implementing action flowing from its July 2006 survey of stakeholders (detailed in last year’s annual report). The survey results are being used to improve communications with stakeholders and to improve the Stakeholder Register, a database used to inform and engage interested parties on quarantine policy issues. Number of risk analyses and AQIS referrals completed In 2007–08, Biosecurity Australia completed more than 1000 risk assessments referred by AQIS (2006–07: 1100). Number of technical market access issues progressed During the year, Biosecurity Australia: worked on more than 200 technical market access issues (2006–07: 150) gained 12 new export markets (2006–07: 16) improved access to 27 export markets (2006–07: 17) maintained 58 export markets against new importing country restrictions (2006–07: 18).

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