Department of Sustainability, Environment, Water, Population and Communities Annual Report 2011-12
Department of Sustainability, Environment, Water, Population and Communities, 2012
ISSN 1441-9335
Executive summary
Secretary's review
Over the past year the department has continued to deliver a significant number of reforms and advance the Australian Government's sustainability agenda.
The Australian Government's announcement of a national representative system of marine national parks in June 2012 marked the culmination of many years work by the department. This included undertaking the necessary detailed technical and scientific work and managing extensive consultation with commercial and recreational fishers and local communities. The department also supported the next stages of development of the Murray-Darling Basin Plan, providing water security for the future for the environment and the industries and communities relying on it. Under the Clean Energy Future Plan to place a price on carbon, the department also delivered the first round of the Biodiversity Fund and prepared for the introduction of an equivalent carbon price on synthetic greenhouse gases from 1 July 2012.
Other achievements in 2011-12 included the implementation of product stewardship legislation, delivering on a key commitment by the government under the National Waste Policy; commemoration of 100 years of exploration and science in Antarctica; and engagement in the UN Conference on Sustainable Development (Rio+20) Conference in Brazil, where the Indigenous Peoples and Local Communities Land and Sea Managers Network was announced.
The national heritage listing of the West Kimberley in August 2011, the largest national heritage listing, was a landmark listing and continues the important work by the department in ensuring the protection of our Indigenous, natural and cultural heritage. The department continued to tap into Indigenous knowledge through the Working on Country program and on the expansion of Indigenous Protected Areas. This is an important contribution to protecting our land and creating jobs and supporting healthy communities.
Through the Caring for our Country program, the National Wildlife Corridors Plan and the new Biodiversity Fund, the department assisted land managers to protect connected habitat for threatened species and build resilience in the landscape. The creation of wildlife corridors ensures a connected, ecosystem-scale approach to land management on both private land and on our growing estate of national reserves.
The department commenced a key new program of work to improve scientific research and increase community confidence in decision-making processes regarding coal mining and coal seam gas developments, with the establishment of the Office of Water Science. This office is working to build the scientific evidence base and understanding of the impacts on water resources of coal seam gas extraction and large coal mines.
The department progressed important work on sustainability to help improve the wellbeing of current and future generations. This included the development of a Sustainability Framework to provide a practical and enduring frame of reference for all departmental staff whereby our work and our approach is viewed through a ‘lens of sustainability’. In addition, the development of a headline set of sustainability indicators at a regional and national scale will help track progress as communities plan and respond to emerging challenges.
The diverse range of achievements in 2011-12 came during a time when the department was continuing to build its capabilities in a number of areas. In response to a Capability Review conducted by the Australian Public Service Commission, the department is progressing projects to improve our delivery, leadership and strategic capability and to improve the department's internal communications and connections. These projects build on earlier activities that have significantly improved the department's capabilities in several areas including governance, procurement, grants management, finance, budgeting and forecasting, project management and risk management.
I continue to be extremely impressed with the response of all staff to the challenges of our work and I would like to acknowledge their professionalism and efforts throughout the year.
Biodiversity and ecosystems
Australia's capacity to understand, manage and conserve our unique biodiversity was given a boost by the establishment of five multi-institutional, multi-disciplinary research hubs under the National Environmental Research Program.
The first round of the Biodiversity Fund under the Clean Energy Future Plan was successfully rolled out with a total of 313 projects with a value of $271 million (GST exclusive) over six years. These projects will revegetate, rehabilitate and restore around 18 million hectares of the Australian landscape.
The final report on the review of the first phase of Caring for our Country was released on 18 April 2012, finding the initiative to be on track to meet its goals and in supporting the community to protect and conserve the environment and increase the adoption of sustainable land management practices.
The department finalised development of a national network of Commonwealth marine reserves and completed the draft management plan for the South-east Commonwealth Marine Reserve Network. As part of the marine bioregional planning program, new Commonwealth marine reserves networks in the South-west, North-west, North, Temperate East and Coral Sea marine regions were identified. These Commonwealth marine reserves will play an important role in the long-term conservation of marine ecosystems and the biodiversity of our oceans.
Bush Blitz, a program to undertake taxonomic surveys, successfully completed five expeditions across National Reserve System properties totalling 604 607 hectares in Victoria, Tasmania, Western Australia and the Northern Territory. The program also funded a total of 11 capacity-building grants and tactical taxonomy contracts to participating Bush Blitz scientists.
The department continued to assess large, complex and economically significant projects under the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act). This year 75 proposals were approved under the EPBC Act including the Chevron Wheatstone project to construct a liquefied natural gas (LNG) and domestic gas plant in the Pilbara, Western Australia. Some 70 conditions were imposed to ensure the protection of listed threatened and migratory species and of the Commonwealth marine area.
Waste
The Product Stewardship Act 2011 (the Act) came into effect on 8 August 2011, delivering on a key commitment by the Australian Government under the National Waste Policy. Televisions and computers were the first products to be regulated under the Act, with the Product Stewardship (Televisions and Computers) Regulations 2011 coming into effect on 8 November 2011. The Regulations provide for a National Television and Computer Recycling Scheme, funded and run by industry. This will progressively increase the national recycling rate for televisions, computers, printers and computer products to 80 per cent in 2021-22.
Carbon pricing
The department prepared for the introduction of an equivalent carbon price on synthetic greenhouse gases from 1 July 2012, part of the Australian Government's Clean Energy Future Plan. This will create a financial incentive to reduce emissions of synthetic greenhouse gases, which have high global-warming potentials.
Sustainable communities
The department progressed the development of a set of headline sustainability indicators for Australia, following consultation with a broad range of stakeholders and experts.
Thirty-one applications were received under the Suburban Jobs program, demonstrating strong interest from state and local governments and highlighting the pressures faced by growth areas across the country. This program aims to support local and state governments to plan and provide for increased employment opportunities outside the CBDs of major cities.
Antarctica
A total of 97 science projects were conducted within the Australian Antarctic program. One of these projects successfully pioneered new techniques for counting penguins from space, further advancing Australia's conservation outcomes.
The department continued to progress Australia's interests in the Antarctic region through forums such as Antarctic Treaty Consultative meeting, and with the Department of Foreign Affairs and Trade successfully hosted the 35th meeting in June 2012.
Water
In April 2012 a milestone of 1000 gigalitres of Commonwealth environmental water delivered to wetlands and rivers in the Murray-Darling Basin was reached. Besides improving river and wetland ecosystem health, the water has been used to protect and conserve Murray cod, river red gums, and waterbirds.
More than $1 billion in funding was invested in irrigation infrastructure to deliver water reform. This investment will improve the efficiency of irrigation networks to fix and replace old, leaky systems, modernise on-farm infrastructure, and rationalise and upgrade delivery systems.
Portfolio structure
The Sustainability, Environment, Water, Population and Communities portfolio is led by the Minister for Sustainability, Environment, Water, Population and Communities, the Hon. Tony Burke MP. Minister Burke is assisted by the Parliamentary Secretary for Sustainability and Urban Water, Senator the Hon. Don Farrell.
As at 30 June 2012 the portfolio comprised the Department of Sustainability, Environment, Water, Population and Communities, and six independent authorities (listed in the Organisation overview chart).
Department overview
Our mission
To advance a sustainable Australia: our environment, water, heritage and communities.
Role and functions
The department supports the minister in his policy and statutory functions and develops and implements national policy, programs and legislation to protect and conserve Australia's environment, water, heritage and communities.
The department's primary roles are best conceptualised through the five outcomes we aim to achieve and an overarching corporate outcome.
Outcome and program structure
The department's outcomes and programs structure as set out in the 2011-2012 Portfolio Budget Statements and the 2011-2012 Portfolio Additional Estimates Statements is as follows:
| Outcomes | Programs |
|---|---|
| Outcome 1: Biodiversity and Ecosystems The conservation and protection of Australia's terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas. |
Program 1.1: Sustainable Management of Natural Resources and the Environment Program 1.2: Environmental Information and Research Program 1.3: Carbon Pollution Reduction-Land Sector Initiatives |
| *Outcome 2: Sustainable Population and Communities Improved sustainability of Australia's population, communities and environment through coordination and development of sustainable population and communities policies; and the reduction and regulation of waste, pollutants and hazardous substances. |
Program 2.1: Management of Hazardous Waste, Substances and Pollutants Program 2.3: Sustainable Communities |
| Outcome 3: Antarctica Advancement of Australia's strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region. |
Program 3.1: Antarctic Science, Policy and Presence |
| Outcome 4: Sustainable Water Adaptation to climate change, wise water use, secure water supplies, and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water resources. |
Program 4.1: Water Reform |
| Outcome 5: Environmental Protection and Heritage Conservation Increased protection, awareness and appreciation of Australia's environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, Indigenous and historic places of National and World Heritage significance. |
Program 5.1: Conservation of Australia's Heritage Program 5.2: Environmental Regulation |
*As a result of the Administrative Arrangements Order made on 14 December 2011, the Housing component of this Outcome (Program 2.2) was transferred to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury.
Senior executive team
Dr Paul Grimes was appointed secretary of the department in June 2011. Dr Grimes was assisted in the management of the department by an executive team of three deputy secretaries and 18 division heads. The names, responsibilities and tenures of the division heads are shown in the organisation chart.
Dr. Paul Grimes joined the department in September 2010 as Acting Secretary from the Department of the Prime Minister and Cabinet, where he had been Associate Secretary (Domestic Policy). Before this, Dr Grimes was General Manager of the Budget Group in the Department of Finance and Deregulation. Dr Grimes has also served as the Chief Executive of the ACT Department of Treasury and, earlier, as Deputy Under Treasurer in the South Australian Department of Treasury and Finance.
Malcolm Thompson is the deputy secretary responsible for the Land and Coasts, Sustainability Policy and Analysis, Environment Quality and Parks Australia Divisions and the Land Sector Taskforce and International Biodiversity and Sustainability Taskforce. Mr Thompson has over 25 years experience as a policy adviser to the Australian Government. He studied economics at the University of Queensland before beginning his career in the Department of the Prime Minister and Cabinet. He has also worked in the Treasury, the Assistant Treasurer’s office and the Department of Transport and Regional Services. From 2003 to 2007 Mr Thompson concentrated on water policy, helping to develop the National Water Initiative and to establish the National Water Commission. Mr Thompson joined the department in 2007 as head of the Policy Coordination Division. He was appointed deputy secretary in September 2009.
Kimberley Dripps joined the department as deputy secretary in January 2011. Ms Dripps is responsible for the Environment Assessment and Compliance, Heritage and Wildlife, Marine and Supervising Scientist Divisions and the Regulatory Reform Taskforce. She also manages the strategic relationship with the Great Barrier Reef Marine Park Authority. Ms Dripps was previously the Executive Director Biodiversity and Ecosystem Services in Victoria's Department of Sustainability and Executive Director Planning and Land Acquisition in the Department of Infrastructure and Transport. Between 1999 and 2007 Ms Dripps had various roles within Victorian Government departments. Ms Dripps has a Bachelor of Veterinary Science (Hons) and an MBA.
David Parker joined the department as deputy secretary in February 2011. Mr Parker is responsible for the Commonwealth Environment Water Holder, Water Efficiency and Water Reform Divisions, the Office of Water Science and the Australian Antarctic Division. Mr Parker has qualifications in economics and law and is the former deputy secretary of the Treasury where he led the Revenue Group and was Chair of the Treasury Audit Committee. With a career spanning over 25 years with the Treasury, Mr Parker has worked on financial sector liberalisation, tax reform, macroeconomic forecasting and policy, competition policy, energy policy and international economic issues. From 1997-2002 Mr Parker worked at the OECD in Paris.
Organisation overview of the portfolio at 30 June 2012
| Sustainability, Environment, Water, Population and Communities portfolio | |||||
| The Hon. Tony Burke MP Minister for Sustainability, Environment, Water, Population and Communities | Senator the Hon. Don Farrell Parliamentary Secretary for Sustainability and Urban Water | ||||
| Department of Sustainability, Environment, Water, Population and Communities Dr Paul Grimes – Secretary | Portfolio Statutory Authorities/Positions | ||||
| Malcolm Thompson Deputy Secretary | Kimberley Dripps Deputy Secretary | David Parker Deputy Secretary | |||
| Parks Australia Division Peter Cochrane Director of National Parks |
Marine Division Stephen Oxley First Assistant Secretary |
Australian Antarctic Division Tony Fleming Director |
Corporate Strategies Division Dianne Carlos Chief Operating Officer |
Bureau of Meteorology Rob Vertessy Director of Meteorology |
|
| Land and Coasts Division Sean Sullivan First Assistant Secretary |
Environment Assessment and Compliance Division Dean Knudson First Assistant Secretary |
Water Efficiency Division Mary Harwood First Assistant Secretary |
Policy and Communications Division James Shevlin First Assistant Secretary |
Director of National Parks Peter Cochrane Director |
|
| Environment Quality Division Diana Wright First Assistant Secretary |
Heritage and Wildlife Division Alison Stone First Assistant Secretary |
Water Reform Division Tony Slatyer First Assistant Secretary |
Great Barrier Reef Marine Park Authority Russell Reichelt Chairperson |
||
| Land Sector Taskforce Mark Flanigan First Assistant Secretary |
Supervising Scientist Division Alan Hughes Supervising Scientist |
Office of Water Science Alex Rankin First Assistant Secretary |
Murray-Darling Basin Authority Rhondda Dickson Chief Executive Officer |
||
| Sustainability Policy and Analysis Division Mary Wiley-Smith First Assistant Secretary (Acting) |
Regulatory Reform Taskforce Peter Burnett First Assistant Secretary |
Commonwealth Environmental Water Holder David Parker |
National Water Commission James Cameron Chief Executive Officer |
||
| Rio+20 Taskforce / Whale Conservation Division Donna Petrachenko First Assistant Secretary |
Sydney Harbour Federation Trust Geoff Bailey Executive Director |
||||
Summary of financial performance
During the 2011-12 financial year the department reported a departmental operating loss of $4.1 million after excluding depreciation/amortisation and unfunded finance and make-good costs. This result is within budget, as approval for an operating loss was received on 18 June 2012 from the Minister for Finance and Deregulation.
The department's financial performance included the new Office of Water Science division after the government announced on 21 November 2011 that it was introducing a new science-based framework to protect the long term health and value of Australia's water resources by ensuring that the management of coal seam gas and large coal mining development is rigorous, transparent and based on the best available science.
In addition, the department's financial performance for the year reflected the result of a restructuring following the transfer of the Housing Affordability function back to the Department of Families, Housing, Community Services and Indigenous Affairs, and the transfer of the Housing Supply Policy function back to the Department of the Treasury on 14 December 2011.
Expenditure on activities administered by the department on behalf of the Australian Government totalled $888 million during 2011-12. This expenditure was primarily related to grants, suppliers, and a non-cash charge for the write down and impairment of water assets. A comprehensive listing of the grant expenditure by program is provided in the department's 2011-12 financial statements at Note 18C.
The department managed administered assets on behalf of the Australian Government of $3 billion which is largely comprised of water entitlement assets of $1.9 billion, investments in two other portfolio entities of $571 million and the share of other property, plant and equipment in the River Murray Operations joint venture of $491 million.
The Australian National Audit Office audited the department's 2011-12 financial statements and issued an unmodified audit opinion for these statements on 30 August 2012.
