Leading national
transport reform
Annual Report 2014 –15
Letter
to ministers
Corporate Plan
2015-19
Level 15/628 Bourke Street
Melbourne, VIC 3000
P: (03) 9236 5000
enquiries@ntc....
3www.ntc.gov.au
Contents
Chairman’s report
Chief Executive’s report
About the NTC
Why transport reform?
Where we fit in
Hi...
4 NTC Annual Report 2014 – 15
Chairman’s
report
In my first full financial year as Chairman of the National Transport
Com...
5www.ntc.gov.au
Chief Executive’s
report
Ultimately, our goal is to lead national surface transport reform
by developing p...
6 NTC Annual Report 2014 – 15
The NTC is an inter-governmental agency charged with improving the
productivity, safety, re...
7www.ntc.gov.au
Our guiding principles
Only lead activities where we can make a difference
nationally – focus resources on...
8 NTC Annual Report 2014 – 15
Why transport
reform?
Transport laws National challenges
projected increase
in freight task...
9www.ntc.gov.au
The NTC was established in 2004 to develop and coordinate regulatory reform for
Australia’s road, rail and...
Better freight productivity will be essential to ensure we can
meet the increasing demand for transport from a growing,
ag...
www.ntc.gov.au 11
Supporting in-vehicle
technology use
The NTC has launched a framework
to support the use of telematics i...
12 NTC Annual Report 2014 – 15
Consultation
and planning
Increased consultation
Stakeholder consultation is an essential ...
Working with Austroads
Michelle Hendy
NTC Chief Planning Officer
The NTC built a closer working relationship with an impor...
14 NTC Annual Report 2014 – 15
Global exchange
Below: NTC Chief Executive Paul Retter (right) at the Australian Logistics...
15www.ntc.gov.au
Leading national
transport reform
a reform that
improves transport
productivity
a reform that
improves tr...
16 NTC Annual Report 2014 – 15
Improving transport
productivity
Unlocking productivity gains for popular truck-trailer co...
Why transport productivity?
As Australia’s population increases,
so do our transport needs.
Between 2010 and 2030, truck t...
18 NTC Annual Report 2014 – 15
Heavy vehicle loading made easier
Changes to the Heavy Vehicle National Law that
were deve...
19
Heavy vehicle charging
The NTC undertook a routine consultation process during
the year to help inform the Australian G...
20 NTC Annual Report 2014 – 15
Improving
system safety
National program to improve heavy vehicle safety
A major program t...
Why transport system safety?
Every year, thousands of people are
killed or injured using Australia’s road
and rail systems...
Medical standards review
During the year, the NTC began a review of the medical criteria
that apply to Australia’s vehicle...
Chain of responsibility
A vital project to improve heavy vehicle road safety came
much closer to fruition during the year ...
24 NTC Annual Report 2014 – 15
Improving
environmental
outcomes
Decade of data released
During the year, the NTC publishe...
Transport and the environment
Transport contributes about
15 per cent of Australia’s total
greenhouse gas emissions, mainl...
Improving
regulatory
efficiency
A new approach to maintenance
As well as developing national transport reform, the NTC is
...
Why regulatory efficiency?
Regulation is needed to help provide
a safe and equitable transport system.
However, the nature...
28 NTC Annual Report 2014 – 15
Maintenance work 2014 – 15
The NTC’s regulatory maintenance program has two
main purposes ...
29Improving regulatory efficiency
Rail Safety National Law
Changes to the Rail Safety National Law were made during the
ye...
30 NTC Annual Report 2014 – 15
Transport and
Infrastructure Council
and committee
National
Transport
Commission
Transport...
Council and committee
The Transport and Infrastructure
Council brings together
Commonwealth, state, territory
and New Zeal...
Transport and Infrastructure
Council members
32 NTC Annual Report 2014 – 15
As at 30 June 2015
The Hon. Warren Truss, MP
...
33www.ntc.gov.au
The Hon. Dean Nalder, MLA
Minister for Transport
The Hon. Simon
Bridges, MP
Minister of Transport;
Energy...
34 NTC Annual Report 2014 – 15
Human resources
management
Corporate services
Commission secretariat
Finance
Governance
Hu...
35www.ntc.gov.au
The NTC develops and sustains a culture of performance, which helps
our staff work effectively with avail...
36 NTC Annual Report 2014 – 15
The NTC places great emphasis on providing a safe and healthy
work environment for our sta...
New risk management approach delivers benefits
Joanne Olsen
NTC Chief Corporate Officer
Sound risk management is an import...
Carolyn Walsh
Deputy Chair
Carolyn commenced as Deputy Chair
and Commissioner of the NTC on
1 January 2014.
Carolyn is als...
Nola Bransgrove, OAM
Commissioner
Nola commenced as a Commissioner
of the NTC on 1 January 2014.
Nola is joint owner of Br...
Role of the NTC Board of Commissioners
The board operates under the National Transport
Commission Act 2003 (Cwlth) and the...
41www.ntc.gov.au
Risk and Audit Committee
The committee’s primary focus is to independently assess
our risk management pol...
42 NTC Annual Report 2014 – 15
Business planning
Each year, the NTC is required to develop a four-year
strategic plan, co...
Financial statements
2014 – 15
43Financial statements
44 NTC Annual Report 2014 – 15
Table of contents
Statement by the Commissioners, Chief Executive and Manager Finance
Audi...
45Financial statements
In our opinion, the attached financial statements for the year ended 30 June 2015 comply with subse...
Auditor’s report
46 NTC Annual Report 2014 – 15
47Financial statements
48 NTC Annual Report 2014 – 15
Statement of comprehensive income
For the period ended 30 June 2015
2015 2014
Notes $ $
Ex...
49Financial statements
Statement of financial position
As at 30 June 2015
2015 2014
Notes $ $
Assets
Financial assets
Cash...
50 NTC Annual Report 2014 – 15
Statement of changes in equity
For the period ended 30 June 2015
Asset revaluation
Retaine...
51Financial statements
Cash flow statement
For the period ended 30 June 2015
2015 2014
Notes $ $
Operating activities
Cash...
52 NTC Annual Report 2014 – 15
Schedule of commitments
As at 30 June 2015
2015 2014
$ $
By type
Commitments receivable
Ne...
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National Transport Commission annual report

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  • 1. Leading national transport reform Annual Report 2014 –15
  • 2. Letter to ministers Corporate Plan 2015-19 Level 15/628 Bourke Street Melbourne, VIC 3000 P: (03) 9236 5000 enquiries@ntc.gov.au www.ntc.gov.au ISBN: XXX-X-XXXXXX-XX-X Strategic plan 2015-16 to 2017-18 Level 15/628 Bourke Street Melbourne, VIC 3000 P: (03) 9236 5000 enquiries@ntc.gov.au www.ntc.gov.au ISBN: 978-1-921604-75-1 Strategic Plan Our Strategic Plan sets out our directions, goals and priorities from 2015 – 19. Corporate Plan Our Corporate Plan details the objectives and strategies we will pursue to achieve the priorities in our Strategic Plan from 2015 – 19. www.ntc.gov.au 3 Corporate plan 2015-16 to 2017-18 Strategic Plan 2015-19 Work Program Our Work Program sets out the projects and programs we will undertake from 2015 – 19. Work program 2015-16 to 2017-18 Level 15/628 Bourke Street Melbourne, VIC 3000 P: (03) 9236 5000 enquiries@ntc.gov.au www.ntc.gov.au ISBN: 978-1-921604-74-4 Work Program 2015-19 Level 15/628 Bourke Street Melbourne, VIC 3000 P: (03) 9236 5000 enquiries@ntc.gov.au www.ntc.gov.au ISBN: XXX-X-XXXXXX-XX-X 15 September 2015 The Hon. Warren Truss, MP The Hon. Jamie Briggs, MP The Hon. Andrew Constance, MP The Hon. Duncan Gay, MLC The Hon. Jacinta Allan, MP The Hon. Luke Donnellan, MP The Hon. Jackie Trad, MP The Hon. Mark Bailey, MP The Hon. Dean Nalder, MLA The Hon. John Day, MLA The Hon. Stephen Mullighan, MHA The Hon. Rene Hidding, MP The Hon. Peter Chandler, MLA Mr Shane Rattenbury, MLA The Hon. Simon Bridges, MP Mayor Troy Pickard Dear ministers, In accordance with the National Transport Commission Act 2003 (Cwlth), I am pleased to submit the National Transport Commission (NTC) Annual Report for the year ended 30 June 2015. This document reports on the NTC’s activities in pursuing national reforms for the Australian land transport sector during the 2014 – 15 financial year, in partnership with government, industry and the Australian community. I would like to thank you for leading the development of national transport reform. I look forward to continuing to work with you to ensure the best transport outcomes for Australia. David Anderson, PSM Chairman
  • 3. 3www.ntc.gov.au Contents Chairman’s report Chief Executive’s report About the NTC Why transport reform? Where we fit in Highlights Consultation and planning Leading national transport reform Improving transport productivity Improving system safety Improving environmental outcomes Improving regulatory efficiency Transport and Infrastructure Council and committee Transport and Infrastructure Council members Human resources management NTC organisational structure Our people Corporate governance Financial statements Appendix A: Report under the Freedom of Information Act 1982 Appendix B: Report under the National Disability Strategy Appendix C: Report under the Environment Protection and Biodiversity Conservation Act 1999 Appendix D: Report under the Commonwealth Electoral Act 1918 Appendix E: Transport and Infrastructure Council submissions Appendix F: Reports released during 2014 – 15 Appendix G: Annual adjustment of heavy vehicle charges Glossary Compliance index Index 4 5 6 – 7 8 9 10 –11 12 – 14 15 – 29 16 – 19 20 – 23 24 – 25 26 – 29 30 – 31 32 – 33 34 – 37 34 35 – 37  38 – 42 43 – 75 76 76 77 78 78 79 80 – 84 85 – 87 88 89 – 91
  • 4. 4 NTC Annual Report 2014 – 15 Chairman’s report In my first full financial year as Chairman of the National Transport Commission (NTC), I am pleased to report on a productive year for the organisation, which included a greater commissioner emphasis on organisational improvements and stakeholder engagement. The Board of Commissioners is accountable to achieve a clear set of objectives as outlined in the Statement of Expectations provided by Deputy Prime Minister and Minister for Infrastructure and Regional Development, the Honourable Warren Truss, MP, for the period of 1 January 2014 to 31 December 2016. Stakeholder engagement is a key part of our work and staff at all levels spend much time with our stakeholders to help identify and deliver the best transport reforms possible. It is integral to the success of our projects, which ultimately aim to provide the best transport systems for Australia’s growing economy. Commissioners’ relationships and expertise are increasingly being used to ensure stakeholder involvement at a strategic level. A stakeholder survey, commissioned during the year, identified opportunities for commissioners to do more of this, and also provided a valuable progress check on our most important relationships. This research showed we are respected by our key stakeholders in the main, however there is room for improvement and we are by no means taking these pleasing results as a ticket to complacency. On this note, I am pleased to report that we strengthened ties with three key national partners during the year – the National Heavy Vehicle Regulator, Austroads and the Office of the National Rail Safety Regulator. We also held a Rail Industry Advisory Group workshop, which brought rail stakeholders together to identify issues and challenges for Australia’s rail industry. This helped inform our strategic planning and was a significant step towards working more effectively with the rail industry. The Board of Commissioners also helped implement several organisational improvements during the year, in particular a new risk-based approach to decision making. This approach now underpins all management decisions and ensures risks are analysed and mitigated in a consistent way, allowing the NTC to move forward with even greater confidence. We are now ready to implement the recommendations of the scheduled six-yearly review of our operations, as required under the National Transport Commission Act 2003 (Cwlth), and I look forward to receiving the review panel’s report and the resulting government decisions. Finally, I would like to thank my fellow commissioners, including Norm McIlfatrick whose appointment ended in August 2014, and NTC staff for their hard work and dedication during the year. Particular thanks go to Chief Executive and Commissioner Paul Retter for his tireless leadership in all respects. I look forward to continuing to work closely with these colleagues and with our stakeholders to lead national transport reform into the future. David Anderson, PSM Chairman
  • 5. 5www.ntc.gov.au Chief Executive’s report Ultimately, our goal is to lead national surface transport reform by developing practical, evidence-based reform proposals in close consultation with our stakeholders. Quality national reform proposals take time to develop. A year is not a long time in the life cycle of policy reform, so it was very fulfilling to see some of our projects come to fruition this year and to watch others reach significant milestones. In particular, I was pleased to see our work in helping truck operators maximise loads on tri-axle vehicle combinations take effect this year via changes to the Heavy Vehicle National Law. We released the telematics framework during the year. The framework sets the regulatory landscape for telematics adoption by the heavy vehicle industry into the future. Other major reforms in our work program reached significant milestones during the year, including: • completion of our 7-axle truck and dog trailer project, which will allow operators to carry payloads up to 20 per cent larger once implemented • in-principle support from transport ministers for our proposed reforms to chain of responsibility laws, following years of consultation and work • reform options developed to improve heavy vehicle roadworthiness by proposing a more consistent national approach to inspections and the clearance of defects, as well as improvements to compliance requirements and roadworthiness-related data collection • stakeholder consultation and workshops to begin reviewing the Load Restraint Guide, which is expected to bring many safety benefits • holding an Alertness Summit to begin a major piece of work around driver fatigue and the impact it has on heavy vehicle safety and productivity. Looking ahead, we are focusing on three main areas of work: continuing what we have started; increasing our focus on productivity; and embracing new technology as a key component of national reform. Increasing the reform focus on productivity and technology is imperative when considered in the context of Australia’s unique transport challenges. While we look internationally for ideas on reform options, our work must be carefully tailored to our own country. Our own expertise, plus the knowledge and experience of our many stakeholders, allows us to do this effectively and I would like to take this opportunity to thank them for the significant time and effort they contributed to transport reform this year – we simply would not be able to do our work without you. I would also like to sincerely thank my fellow commissioners and our staff, whose commitment, diligence and expertise underpins our organisation. I look forward to continuing to deliver our work program in 2015 – 16 and beyond. Paul Retter, AM Chief Executive and Commissioner The NTC’s performance in 2014 – 15 demonstrates our ongoing commitment to improve the safety, environmental impact, productivity and regulatory efficiency of Australia’s transport networks.
  • 6. 6 NTC Annual Report 2014 – 15 The NTC is an inter-governmental agency charged with improving the productivity, safety, regulatory efficiency and environmental performance of Australia’s road, rail and intermodal transport systems. About the NTC State and territory governments contribute 65 per cent of our funding while the Commonwealth Government provides 35 per cent. We have about 40 staff in our Melbourne office and are led by six commissioners. Our vision Australia’s prosperity and community liveability is enhanced by the movement of people and goods. Our mission To champion and facilitate changes to improve productivity, safety and environmental outcomes. Strategic objectives We work to improve: • transport productivity • transport system safety • environmental outcomes • regulatory efficiency. Our role We develop national reforms for road, rail and intermodal transport systems. We also play an important role in implementation planning to ensure reform outcomes are realised on the ground, and in maintaining and updating relevant laws and regulations. Our work is based on facts and evidence, which helps us identify reforms that benefit Australia as a whole. It includes four main types of projects: 1. Policy – projects aimed at solving a unique problem and which usually require a change of law. 2. Research – projects that investigate an issue and which may be an initial step towards reform. 3. Recurring – maintaining or monitoring reforms. 4. Assistance – assisting other agencies that request our expertise for projects or reforms. Issues analysis Issues paper (if required) Public consultation Draft regulatory impact statement Discussion paper Options analysis Business case Or Our process for policy projects
  • 7. 7www.ntc.gov.au Our guiding principles Only lead activities where we can make a difference nationally – focus resources on projects that will deliver real national impact. Apply an integrated approach – reflect the complexity and diversity of transport systems, including factors affecting regional and remote areas. Collaborate with reform partners – understand before acting, involve before deciding, discuss before implementing and share before announcing. We follow structured processes for our projects to ensure appropriate research, development and consultation occurs before proposing reforms. Many of our projects are policy focused and follow the steps outlined below. Variations of this are used when progressing research, maintenance or monitoring projects. Targeted consultation (jurisdictions, regulators, industry, community) Transport and Infrastructure Senior Officials’ Commitee (TISOC) paper Transport and Infrastructure Council paper Implementation Final regulatory impact statement Policy paper Public consultation Or
  • 8. 8 NTC Annual Report 2014 – 15 Why transport reform? Transport laws National challenges projected increase in freight task between 2010 and 2030.2 projected increase in freight task between 2010 and 2030.2 80% people to live in Australia by 2030.4 30MILLION 1162road deaths in 2014.1 road deaths in 2014.1 economic cost from congestion each year.3 $15BILLION Make laws nationally consistent, risk-based and outcomes focused.Make laws nationally consistent, risk-based and outcomes focused. Continue to reduce road deaths and serious injuries via the National Road Safety Strategy and action plans.Continue to reduce road deaths and serious injuries via the National Road Safety Strategy and action plans. Develop a national surface transport productivity framework to identify key areas for improving productivity.Develop a national surface transport productivity framework to identify key areas for improving productivity. MANY STATE AND TERRITORY TRANSPORT LAWS 1 https://bitre.gov.au/publications/ongoing/road_deaths_australia_monthly_bulletins.aspx 2 The Economic Significance of the Australian Logistics Industry, ALC, 2014, p.3 3 Trends, Infrastructure and Transport to 2030, Dept Infrastructure and Regional Development,2014,p.10 4 Freightline 1, Dept Infrastructure and Regional Development, 2014, p.9 + =The need to
  • 9. 9www.ntc.gov.au The NTC was established in 2004 to develop and coordinate regulatory reform for Australia’s road, rail and intermodal transport systems. It was established under the National Transport Commission Act 2003 (Cwlth) and replaced the former National Road Transport Commission. Where we fit in We work closely with many organisations throughout the country, including the National Heavy Vehicle Regulator (NHVR) and the Office of the National Rail Safety Regulator (ONRSR), both formally established in 2012. During their initial establishment, we provided support to the regulators where it made sense – in areas of our expertise. While we continue to do this where necessary or requested, our focus is shifting from addressing operational issues back to national strategic policy and new reforms. For example, over the coming years the NHVR and ONRSR will propose minor legislative amendments to the national laws that they enforce, to assist business process within current policy settings. We will continue to lead the development of larger scale reforms and amendments to these laws. In addition to the regulators, we also work closely with Austroads and the Rail Industry Safety and Standards Board. These organisations’ roles and responsibilities, as well as our own, are summarised on the right. National Transport Commission • Drive national transport reform • Develop policy, regulatory and operational reform for Australia’s road, rail and intermodal transport systems • Maintain and update model laws and the Heavy Vehicle National Law and Rail Safety National Law • Evaluate implementation of reforms National Heavy Vehicle Regulator • Administer Heavy Vehicle National Law (HVNL) • Monitor, investigate and enforce compliance with HVNL • Provide the NTC with advice on ways to improve heavy vehicle legislation and regulations Office of the National Rail Safety Regulator • Administer Rail Safety National Law (RSNL) • Monitor, investigate and enforce compliance with RSNL • Provide the NTC with advice on ways to improve rail safety legislation and regulations Rail Industry Safety and Standards Board • Develop and manage nationally applied rail industry standards, rules, codes of practice and guidelines • Promote a unified approach to rail industry practices Austroads • Improve the practices and capability of Australasian road transport and traffic agencies • Promote operational consistency • Provide expert technical input to national policy development
  • 10. Better freight productivity will be essential to ensure we can meet the increasing demand for transport from a growing, ageing and more urbanised population. Highlights 10 NTC Annual Report 2014 – 15 2014 – 15 Improving heavy vehicle productivity Truck operators will soon be able to tap into the productivity benefits of the Performance Based Standards (PBS) scheme much faster following an NTC project completed during the year. The project explored how to make the PBS productivity benefits accessible to the popular 7-axle truck and dog trailer combination, without having to go through the PBS approvals process. This combination can carry loads of up to 20 per cent more under the PBS scheme but Australia’s transport industry told us the administrative time and cost involved in applying for PBS approval was preventing many operators from participating. The project established a better way to access these productivity benefits safely. For more information on the project, turn to page 16. Major roadworthiness program on track Unsafe heavy vehicles on our roads contribute to many safety and productivity issues, including crashes, fatalities, serious injuries, breakdowns and congestion. Recognising the heavy social and economic costs of these problems, the NTC and National Heavy Vehicle Regulator are working together on a major program to improve heavy vehicle roadworthiness. The management of roadworthiness varies between states and territories and the program is working towards a more national approach for heavy vehicles, based on the best available practice. Three of the four program phases were completed during the 2014  – 15 year. For more information about the program, turn to page 20. Vital safety reform much closer Reforming Australia’s chain of responsibility laws is a complex but vital job. Chain of responsibility laws are included within the Heavy Vehicle National Law and specify the safety responsibilities for each person in the transport industry supply chain. The NTC’s project took a major step towards completion during the year with Australia’s transport ministers providing in-principle support for our significant reforms, which include establishing a more outcomes-based approach for all parties in the supply chain. For more information about the project, turn to page 23. 20% larger payloads for approved 7-axle combinations in future. 1heavy vehicle roadworthiness system nationwide proposed. 3year reform close to law change.
  • 11. www.ntc.gov.au 11 Supporting in-vehicle technology use The NTC has launched a framework to support the use of telematics in heavy vehicles. Telematics includes technology in vehicles that is used as part of a system that captures and sends information electronically. Telematics is an evolving technology which, if used appropriately, has the ability to make Australia’s roads safer and more productive. The framework establishes principles to govern the regulatory use of telematics technology into the future, helping provide certainty to governments and industry to realise the technology’s benefits. For more information about the framework, turn to page 23. Improved processes for better performance The NTC has introduced two new processes to streamline and improve project and risk management. A new project management framework and supporting processes provides greater consistency and transparency to help stakeholders have a better understanding of proposed reforms, among other benefits. In addition, a new risk-based approach now underpins all management decisions to keep the organisation focused on achieving our strategic objectives with greater certainty. For more information about the project management framework, turn to page 19 and for more on the risk-based approach, turn to page 37. Load Restraint Guide update underway The NTC embarked on an important project to review the Load Restraint Guide during the year, following widespread support to update it to reflect the latest load restraint technologies and provide more specific guidance on best practice. The guide provides the road transport industry and enforcement authorities with guidance material for the safe carriage of loads on and in road vehicles. Industry and government feedback on the project so far has shown the need to update the guide to assist with consistent enforcement practices between states and territories, thereby contributing to a safer transport system. We began the project by holding stakeholder workshops during the year. For more information about the project, turn to page 29. 10clear principles established for telematics use. NEWinternal processes in place. 10year old guide under review.
  • 12. 12 NTC Annual Report 2014 – 15 Consultation and planning Increased consultation Stakeholder consultation is an essential aspect of what we do at the NTC. To be effective, we must work closely with stakeholder organisations – transport agencies, industry and representative associations, national regulators, governments and others – to understand their issues and aspirations, and to work together to find the best solutions for Australia. Over the past 12 months, we have increased our focus on stakeholder engagement and fine-tuned our approach. Formal meetings, such as industry workshops, government agency meetings and bi-annual industry advisory group (IAG) meetings continue to be important and the May 2015 IAG meeting was our largest so far. The group focused on our work program, and current and future stakeholder projects. Some of the organisations in attendance were: the Australian Trucking Association, the Australian Logistics Council, the Australian Rail Track Corporation, Linfox, Toll Group, the Australian Road Transport Suppliers Association, ARRB Group, the National Road Transport Association, the Chartered Institute of Logistics and Transport, Roads Australia, the Australian Livestock and Rural Transporters Association, the National Road Freighters Association, ITS Australia and the Australasian Railway Association. We also increased our focus on personal consultation with stakeholders at several levels throughout the year. This included our commissioners. In particular, Chairman David Anderson, Deputy Chair Carolyn Walsh and Commissioner Nola Bransgrove engaged key stakeholders at senior levels, helping build support for projects and identify issues early on. We also continued the NTC Insight Series. This program brings high-profile members of our stakeholder organisations into the NTC to present to staff about their work, share their knowledge and discuss any issues they face. This has been very well received by both our staff and our stakeholders. Speakers this year included chief executives or senior managers from Asixa, National Transport Insurance, the Australian Logistics Council, the Australian Trucking Association and Victoria Police. The year included an important step towards working more closely with the rail industry via a special Rail Industry Advisory Group meeting held in November 2014. The group raised several issues, including maintenance of the rail safety law and how to increase rail sector productivity. It provided a useful forum to prioritise issues and challenges, which also helped inform our strategic planning.
  • 13. Working with Austroads Michelle Hendy NTC Chief Planning Officer The NTC built a closer working relationship with an important national transport partner this year – Austroads. NTC Chief Planning Officer Michelle Hendy said working closely with other national transport bodies was essential to the NTC’s success as a champion of national transport reform. ‘When we identified the opportunity to strengthen ties with Austroads, we jumped at the chance,’ Michelle said. ‘Austroads is the association of road transport and traffic agencies in Australasia. In its capacity as a research organisation, it is well-placed to provide technical input to inform our national transport sector reforms. In turn, we can facilitate information sharing between Austroads and other organisations to help transition Austroads’ research into action.’ Michelle said the closer working relationship involved placing NTC project directors on Austroads’ various taskforces and programs, and sharing strategic planning and work program material between the two organisations. This also allowed the organisations to avoid potential duplication of activities. ‘We recently identified an opportunity to facilitate an outcome, following a request by the Australian Trucking Association (ATA) to investigate increasing axle mass limits when using a wide single tyre,’ she said. ‘Following consultation with state transport departments we concluded that such a change would require pavement tyre testing. We also identified that Austroads was running a research project involving relevant testing, so we were able to connect the dots for the ATA to continue following this up with Austroads.’ 13 Strategic planning The NTC’s co-design approach to strategic planning went through its second cycle in 2014 – 15. The approach involves stakeholder input to identify challenges and opportunities, develop and prioritise proposals to address them, and develop the best of those proposals into business cases and ultimately, projects. This approach was implemented following the review of the NTC in 2012 by the then Standing Council on Transport and Infrastructure. This year we also turned our attention to a challenge we identified during the first cycle of the co-design approach – the need for better coordination and collaboration with other national transport government organisations, such as Austroads, as explained on the right. We also established a Strategic Planning Liaison Group to strengthen communication and engagement with government transport departments and road agencies in each state and territory. This brings a greater jurisdictional focus to our planning and promotes more of a national focus. The group involves government officers who are responsible for briefing chief executives of the departments and road agencies on national reform issues. www.ntc.gov.au
  • 14. 14 NTC Annual Report 2014 – 15 Global exchange Below: NTC Chief Executive Paul Retter (right) at the Australian Logistics Council (ALC) Forum in March 2015, along with National Heavy Vehicle Regulator CEO Sal Petroccitto (middle) and ALC CEO Michael Kilgariff (left). We took several opportunities to learn from other organisations’ experiences around the globe during the year and to share our own. This included a workshop on intelligent transport systems, held at our office in April 2015 and involving speakers from Europe and the United States. We also continued a webinar series with the United States Federal Highway Administration agency aimed at sharing information with industry stakeholders, and established working relationships with New Zealand and European transport agencies in recognition of the need to share knowledge and experience among developed countries facing similar transport challenges. In late May 2015 our Chief Executive attended the 2015 International Transport Forum summit held in Leipzig, Germany. The summit’s theme was Transport, Trade and Tourism (mobility for a connected world) and it included sessions on the likely growth in all transport modes over the next decade and the need to invest in modernising and upgrading our transport networks to facilitate greater mobility. The increased use of technology, such as intelligent transport systems, was seen as offering enormous potential for more efficient mobility flows.
  • 15. 15www.ntc.gov.au Leading national transport reform a reform that improves transport productivity a reform that improves transport system safety a reform that improves environmental outcomes a reform that improves regulatory efficiency Symbols used throughout pages 16 – 29 The NTC’s reforms often deliver against more than one of our strategic objectives. The symbols below are used throughout the following section to show how our projects are linked to our objectives. The NTC is committed to leading national transport reform by improving the productivity, safety, environmental performance and regulatory efficiency of Australia’s transport systems.As part of this, we regularly report on the progress and outcomes of our work.
  • 16. 16 NTC Annual Report 2014 – 15 Improving transport productivity Unlocking productivity gains for popular truck-trailer combination During the year, the NTC completed a project with the potential to increase productivity for more than 95 per cent of a popular vehicle combination on Australia’s roads – the 7-axle truck and dog trailer. The project looked at ways to allow truck operators to access the higher load limits allowed for this vehicle combination under the Performance Based Standards (PBS) scheme without having to go through the PBS application process. We established the PBS scheme in 2007 to improve the safety and productivity of the road transport industry through innovative truck and bus design. Industry feedback in recent years has revealed a desire to simplify the PBS approval process where possible, saving time and administrative costs and therefore making it accessible to more operators. In consultation with industry and government stakeholders, we chose to explore this for the 6 and 7-axle truck and dog trailer combinations because they have accounted for more than 40 per cent of applications to the PBS scheme so far and because, if feasible, a streamlined approach would allow operators to carry payloads of up to 20 per cent more. To achieve this, we developed specification envelopes involving prescriptive-style mass and dimension limits for 7-axle truck and dog trailer combinations, limiting them to safe configurations as previously defined by the PBS scheme while allowing them to carry payloads up to 20 per cent larger than non-PBS compliant vehicles. The project found it was not possible to do this for the 6-axle combination because a feasible specification envelope could not be developed that both met with the PBS standards and covered a range of vehicles using this combination. The 18-month project involved developing the specification envelopes, releasing a discussion paper for industry and government feedback, holding workshops in states and territories, and obtaining agreement on the envelope approach. Next steps The specification envelopes will be implemented by the National Heavy Vehicle Regulator (NHVR). We have recommended an implementation method involving issuing national notices, similar to the current Class 3 Truck and Trailer notice, to enable use of the envelopes in the first instance, and then considering including them in the Heavy Vehicle National Law after that. To date, less than 5 per cent of 7-axle truck and dog trailer designs have gone through the PBS scheme and are accessing the productivity benefits of carrying larger payloads. Once implemented, this project unlocks these possible productivity benefits for all other designs of this popular truck-and-trailer combination. The project will also reduce the regulatory and administrative burden for the NHVR, state and territory road agencies, trailer body builders and transport operators. Following this project, in May 2015 Australia's transport ministers approved an addition to our work program for 2016–17, which will see us assess the effectiveness of the PBS marketplace and identify barriers to vehicle design and innovation.
  • 17. Why transport productivity? As Australia’s population increases, so do our transport needs. Between 2010 and 2030, truck traffic is predicted to increase by 50 per cent and rail freight by more than 60 per cent (BITRE). Without nationwide transport productivity improvements, Australia’s current congestion costs of $15 billion each year (BITRE) will increase rapidly. On the flipside, better productivity will help manage this and should also improve safety – because fewer trips should mean fewer crashes – and deliver environmental outcomes by improving fuel efficiency and reducing pollution. Furthermore, improvements in rail sector efficiency will address growing consumer and industry demand for improved connectivity to places and markets. 17Improving transport productivity
  • 18. 18 NTC Annual Report 2014 – 15 Heavy vehicle loading made easier Changes to the Heavy Vehicle National Law that were developed to make loading certain heavy vehicle combinations easier came into effect on 29 September 2014. The NTC developed the 1-Tonne Tri-Axle Mass Transfer Allowance (1TMTA) following industry feedback about the previous mass loading laws, established in 1993. The old rules meant that for many types of truck and trailer combinations to be able to carry the maximum legal load, the load needed to be perfectly distributed across all axle groups of the vehicle. This was time-consuming and difficult to achieve, preventing many operators from maximising their loads. The new system allows up to one tonne to be moved between certain axle groups in a particular heavy vehicle combination, so long as the overall gross mass is within its legal limit. The 1TMTA applies to all roads in the Australian Capital Territory, New South Wales, South Australia, Tasmania and Victoria, excluding roads restricted by load-limiting road signs, and to declared routes or areas in Queensland. More information is available on the National Heavy Vehicle Regulator’s website – www.nhvr.gov.au. Reforming dangerous goods transport Dangerous goods are transported throughout Australia every day, regulated by the Australian Code for the Transport of Dangerous Goods by Road and Rail and laws in each state and territory, which bring the code into effect. These instruments help prevent accidents or damage to people, property or the environment from the unsafe transport of dangerous goods. The code is modelled on the United Nations Recommendations on the Transport of Dangerous Goods – Model Regulations and covers a large range of substances and products from highly flammable toxic or corrosive substances to household items such as cosmetics and cleaning products. During the 2014 – 15 year, the NTC began reviewing the rules around transporting limited quantities of dangerous goods, including: • cosmetics and personal care products • household cleaning products • home, garden and pest products • paint, coatings and related products. Stakeholders identified the need for review, reporting that the current code was placing an unnecessary regulatory burden on businesses, thereby restricting transport system productivity. So far the project has involved: a workshop; further targeted consultation with stakeholders who include transporters, retailers, industry bodies, regulators and emergency services organisations; and a regulatory impact statement (RIS) released for public comment in June 2015. The RIS looked at ways to reform the transport of limited quantity dangerous goods via amendments to the code. It assessed three reform options that aim to reduce current compliance costs and allow flow-on productivity benefits while maintaining high levels of safety. The reform options included: 1. addressing problems with aspects of the code by creating a new exemption for transporting some or all types of limited quantity dangerous goods 2. amending the code to adopt the standards used in Europe for transporting limited quantities of dangerous goods 3. as above but to adopt the standards in the United Nations model regulations. Next steps At the time of writing, the RIS was open for public comment. Following that, we plan to conduct further consultation with key stakeholders before developing final recommendations for the Transport and Infrastructure Council to consider in November 2015. Regulation maintenance We are responsible for maintaining the code and model laws that apply to dangerous goods transport, including updating them to ensure they meet best practice and evolving community needs. During the 2014 – 15 year, we submitted an amendment package to the Transport and Infrastructure Council, which included updating the regulations to: • align with international best practice in the 18th amendment package to the United Nations model regulations (excluding standards relating to transporting limited quantities of dangerous goods) • provide consistency with air and sea requirements • incorporate minor changes to improve clarity and useability. The council approved the amendment package in May 2015.
  • 19. 19 Heavy vehicle charging The NTC undertook a routine consultation process during the year to help inform the Australian Government in setting the annual road user charge on heavy vehicle fuel use for 2015 – 16. The Road User Charge (RUC) applies to diesel used by heavy vehicles on public roads and is reviewed annually. Revenue generated from it contributes to road infrastructure spending by the Commonwealth, state and territory governments. As requested by the Deputy Prime Minister, the Honourable Warren Truss, MP, we released a draft recommendation for public comment in February 2015, calculated using a formula within the Model Heavy Vehicle Charges Act. Following a 60-day consultation period, we then formally recommended that the RUC remain unchanged at the existing rate of 26.14 cents per litre of diesel as of 1 July 2015. The Deputy Prime Minister announced his decision to do this on 25 June 2015. Turning the tables to reform our own processes Geoff Allan NTC Chief Operating Officer Improving transport productivity While the NTC’s work focuses on national transport system reform, Chief Operating Officer Geoff Allan explains how we began reforming our own project management processes during the year as well. ‘We saw the need to implement a more structured project management framework and processes, tailored to our organisational needs and designed to maximise efficient project delivery,’ Geoff said. ‘Our new framework will provide greater consistency and transparency for projects. This has so many benefits, including helping stakeholders gain a better understanding of proposed reforms and engagement with our projects, and keeping us on track to deliver projects in line with their original purpose and scope. ‘Ultimately, this will improve our engagement and communication throughout the life of each project with state and territory governments as well as industry and community stakeholders who could be affected by any proposed reforms.’ Geoff said the framework had been drawn from several sources, including the Productivity Commission’s process and best-practice guidelines from the Australian National Audit Office. It also recognised our obligations under relevant legislation. ‘It has been tailored to best meet our unique requirements. It has also been customised for the different types of work we do so we have slightly different processes for our research, policy, maintenance and monitoring projects,’ Geoff said. ‘We do a significant amount of work assisting other agencies either with implementing reforms or by providing our specialised knowledge in particular areas. In the past, this work was not always documented or formalised. Our new processes aim to fully account for it and allow us to deliver the best value to our stakeholders.’ The new project management framework and processes were introduced during the year and will be fully implemented in 2015 – 16.
  • 20. 20 NTC Annual Report 2014 – 15 Improving system safety National program to improve heavy vehicle safety A major program to improve heavy vehicle roadworthiness reached some key milestones during the year. The National Heavy Vehicle Roadworthiness Program is the first major project that the NTC and the National Heavy Vehicle Regulator have worked on together from inception. It aims to reduce the risks and safety concerns associated with unroadworthy heavy vehicles. Unsafe heavy vehicles on the road contribute to many safety and productivity issues, including crashes, fatalities, serious injuries, breakdowns and congestion. The management of roadworthiness varies between states and territories, and there are broad differences in approaches and standards. The program is working towards a more national approach and aims to: • provide consistent standards and operational procedures • standardise vehicle inspections nationally • encourage accreditation systems with robust governance • improve compliance with vehicle standards. During the 2014 – 15 year, three of the four program phases were completed, consisting of: 1. a review of current roadworthiness systems, practices and compliance throughout Australia 2. an assessment of how current practice supports transport objectives of road safety, productivity and efficiency 3. development of a regulatory impact statement (RIS) providing reform options available for public comment. The RIS assessed four reform options, each including potential changes to inspection processes and procedures, education and training, scheduled inspections, accreditation schemes and chain of responsibility laws. The options also provided potential mechanisms to identify and target the highest-risk vehicles on the road. To date there has been extensive consultation throughout the program with government, industry and community stakeholders, including: trucking companies, owners, operators and drivers; peak industry bodies; heavy vehicle safety experts; remote area communities; local, state, territory and Commonwealth governments; and emergency services. Next steps The fourth phase of the program involved providing final recommendations about the structure and implementation of a national roadworthiness program to Australia’s transport ministers. Ministers will consider the recommendations in November 2015.
  • 21. Why transport system safety? Every year, thousands of people are killed or injured using Australia’s road and rail systems. BITRE reports that 1162 people lost their lives on Australian roads in 2014 and the Australian Transport Safety Bureau reports that 350 people died on rail networks between 2002 and 2012. As well as the terrible social costs to the community, the annual cost of the road toll to the Australian economy is estimated to be $27 billion (Department of Infrastructure and Regional Development). Australia’s growing population coupled with increasing demand for freight and transport heightens the need to make Australia’s transport networks safer. Without safety improvements, road and rail users remain at risk of injury or death. 21Improving system safety
  • 22. Medical standards review During the year, the NTC began a review of the medical criteria that apply to Australia’s vehicle drivers and rail safety workers. The criteria are set out in the Assessing Fitness to Drive (AFTD) and National Standard for Health Assessment of Rail Safety Workers publications. The AFTD provides medical criteria for doctors to use when assessing the health of drivers for licensing, while the rail safety standard provides medical criteria for determining the fitness for duty of rail safety workers throughout Australia. Both publications were last reviewed in 2012 and are due for routine review to ensure they are accurate and reflect current medical practices. The reviews take into account: • advances in medical knowledge and practice • changes to relevant operating environments and policies • stakeholder feedback on the current publications • findings from any relevant recent inquiries • any other new issues affecting medical standards. During the year, we released issues papers on the reviews and sought stakeholder feedback on the need for any changes to the criteria and the potential impacts of these. We also appointed Project Health – a specialist health consultancy – to provide medical expertise for the reviews. Next steps This work involves complex medical issues that require specialist expertise. Recognising this, we have consulted broadly on the AFTD review, involving medical and health professionals, licensing authorities, regulators, industry representatives and road users. We plan to do the same for the rail safety standard. We will continue to work through specific medical issues with stakeholders and experts and will also invite public consultation on draft changes to the two publications before preparing final publications for the Transport and Infrastructure Council to consider in 2016. Electronic work diaries The NTC continued work during the year to ensure the Australian transport industry can realise the many benefits of using electronic work diaries (EWDs). An EWD is an electronic system that can record work and rest times for heavy vehicle drivers as an alternative to a written work diary. EWDs can make compliance with fatigue management obligations easier, offering significant safety benefits and cost savings by reducing the amount of time operators and enforcement agencies spend on administration. Last year we developed a legal framework to support the voluntary use of EWDs to ensure it was appropriately regulated, including with privacy protections for people and data. This year we developed the legislation to cement that framework in law. This was approved by Australia’s transport ministers in November 2014 and was passing through parliamentary approval processes at the time of writing. The National Heavy Vehicle Regulator will lead the work needed to implement the voluntary use of EWDs. In June 2015, the NTC co-hosted the Alertness Summit 2015 as part of a project to better understand driver fatigue. The summit was held in Canberra in collaboration with the Cooperative Research Centre for Alertness, Safety and Productivity. It brought together scientists and alertness monitoring technology providers with heavy vehicle operators, industry associations, road agencies, police and the National Heavy Vehicle Regulator. Participants were briefed on the latest technology developments and took part in valuable discussions about how the evidence base and data collection could be improved and used to support potential reforms of fatigue laws in the future. The summit was a unique opportunity to share different perspectives on the challenges of fatigue policy and data collection. We plan to use these views when developing a discussion paper about a national fatigue data framework in late 2015. Alertness Summit Above: NTC Chief Operating Officer Geoff Allan at the Alertness Summit in June 2015. 22 NTC Annual Report 2014 – 15
  • 23. Chain of responsibility A vital project to improve heavy vehicle road safety came much closer to fruition during the year with the completion of a major piece of work. The project involves changes to the chain of responsibility laws, which are included within the Heavy Vehicle National Law. Chain of responsibility laws specify the safety responsibilities for each person in the transport and logistics industry supply chain and are fundamentally concerned with improving the safety of drivers and the community. Chain of responsibility reform is a complex undertaking partly because of the large number of parties in the supply chain, such as corporations, employers, company directors, exporters and importers, drivers, contractors, schedulers, people who load or unload goods and people who receive goods. The NTC began leading the project in mid-2014 after an independent taskforce recommended to Australia’s transport ministers that further work was needed on the reform. We then developed reform options, released a discussion paper and consulted with stakeholders before providing reform recommendations to Australia’s transport ministers to consider in May 2015. Ministers gave in-principle support to the proposed reforms – a major step forward in the process. The proposed reforms include a more outcomes-based approach, placing a primary duty on operators, prime contractors and employers to ensure the safety of their operations. They also establish detailed duties for specific roles within the supply chain where appropriate, and restructure and consolidate existing requirements towards a performance-based approach rather than a prescriptive one. By moving away from prescriptive obligations, the reforms would allow operators to work out the best way to manage chain of responsibility obligations for their businesses, safely and cost-effectively. The reforms are also an opportunity to better align chain of responsibility laws with Australian workplace health and safety laws to reduce duplication and inconsistencies for the heavy vehicle industry. Next steps Australia’s transport ministers provided in-principle support for the proposed reforms in May 2015. We subsequently released a discussion paper detailing the proposed reforms for public comment, and plan to provide final recommendations to transport ministers in November 2015. Innovative framework for telematics The use of telematics in heavy vehicles is now supported by clear guidelines after the NTC released a national framework in November 2014. We developed the Compliance and Enforcement Framework for Heavy Vehicle Telematics to provide policy certainty and consistency on using telematics for compliance and enforcement purposes. We did this following industry feedback that the lack of clear and consistent policies on how telematics data could be used had slowed the uptake of telematics technology. Telematics is the term used to describe in-vehicle devices that capture and send information electronically. Telematics can be used to monitor speed, location, time, load, mass, engine performance and more, and can also include electronic work diaries (EWDs) to record work and rest hours for drivers. Telematics is an evolving technology which, if used appropriately, has the ability to make Australia’s roads safer and the transport industry more productive. The framework establishes 10 clear principles to govern the regulatory use of telematics technology, balancing the opportunities to realise safety and productivity benefits with the need to regulate data access and protect individual privacy. It also explains the data dictionary, developed by Transport Certification Australia, to ensure regulatory applications of telematics are consistent with international standards and compatible with other systems. The framework distinguishes between telematics applications used for enforcement, such as EWDs; compliance, such as satellite navigation technology; and purely commercial applications, with higher standards of performance and security required for enforcement- focused telematics. It enables telematics systems to separate commercial and regulatory data so that authorised officers undertaking enforcement activities can only access relevant information. For example: a telematics device might be developed that integrates EWD and payroll features. Under fatigue laws, a heavy vehicle driver must present EWD information to an authorised roadside enforcement officer so the system could be designed in such a way that the officer could access only the EWD, and not the payroll records. Our approach is innovative in that it provides a framework for telematics in general, rather than making rules and regulations specific to one technology or application. Next steps With the framework now in place, we look forward to supporting transport and road agencies throughout Australia in using it to implement new telematics applications into the future. 23Improving system safety
  • 24. 24 NTC Annual Report 2014 – 15 Improving environmental outcomes Decade of data released During the year, the NTC published annual data on vehicle carbon dioxide emissions intensity. This included an inaugural 10-year trend analysis providing key insights for manufacturing and other industries. The Carbon Dioxide Emissions Intensity for New Australian Light Vehicles 2014 report was released in April 2015, using data from the Federal Chamber of Automotive Industries. The report looked at emissions intensity for new passenger and light commercial vehicles sold in Australia in 2014 and showed a 22 per cent drop in the average carbon emissions intensity for new cars sold in Australia between 2005 and 2014. It also showed the following occurred during the decade: • the average emissions intensity of Australian-made vehicles fell by between 18 and 28 per cent • the greatest reductions in average emissions intensities were in the sports and SUV segments, which fell by 32 and 29 per cent respectively, and petrol powered vehicles, which fell by 26 per cent • the number of low-emission car models on the market has increased from three to 59. The report breaks data down by vehicle make, model, segment, fuel and buyer type, providing current and valuable information to many industries and organisations to use in their business and in environmental planning. This information also helps car buyers choose vehicles that are cheaper to run and are better for our environment. * from new passenger and light commercial vehicles in Australia. Australia’s average carbon emissions intensity in 2013 was higher than the European Union’s by 43% Compared with 2013, average carbon emissions intensity* decreased by 2.3% The average carbon emissions intensity* dropped between 2005 and 2014 by 22%
  • 25. Transport and the environment Transport contributes about 15 per cent of Australia’s total greenhouse gas emissions, mainly in the form of carbon dioxide (Department of the Environment). Historically, Australia has been reliant on roads to transport people and goods and our growing population is placing greater demand on our road networks to do this. By 2020, greenhouse gas emissions from road transport are predicted to be more than two-thirds higher than their 1990 levels (BITRE). This has the potential to affect climate change, making improving environmental outcomes a priority for business, government and Australia’s communities. 25Improving environmental outcomes
  • 26. Improving regulatory efficiency A new approach to maintenance As well as developing national transport reform, the NTC is responsible for monitoring and maintaining a range of national and model laws and associated regulations and instruments relating to road, rail and intermodal transport. This is important to ensure laws and regulations are current and reflect evolving community needs. Updating laws and regulations also allows us to remove unnecessary legal barriers to productivity and means we can improve clarity so that laws can be more easily understood and applied. This year we began revising our maintenance program and procedures, focusing on formalising processes and introducing tools to improve stakeholder consultation. The aim of the improved program is to create consistent and transparent maintenance cycles to ensure work is targeted and timely. It also allows sufficient opportunity for input from state and territory governments and national transport regulators. To that end, we have established a structured maintenance program for each of the laws and instruments we maintain, including: • Heavy Vehicle National Law, Rail Safety National Law and model laws for vehicle standards – annual review • Australian Road Rules and transport of dangerous goods laws – for review every two years • Australian Defence Force Road Transport Exemption Framework – for review every three years or as needed • Assessing Fitness to Drive and the National Standard for Health Assessment of Rail Safety Workers publications – for review every three years. While the new program is structured, there is room for us to progress maintenance items outside these timings if required. The right tools We are introducing several tools to support the new maintenance program, including developing a template for stakeholders to use when describing new issues and potential solutions. The template helps clearly define issues, identify and compare potential policy responses, and prepare appropriate supporting materials. We also facilitate regulatory maintenance advisory groups as a key forum for early stakeholder consultation on maintenance issues. The groups involve senior officers from state and territory governments and national transport regulators, and some also include industry and community stakeholder representatives. Heavy vehicle penalties tools As part of our role in maintaining and updating the Heavy Vehicle National Law (HVNL), the NTC has developed two tools to help ensure that penalties and demerit points for new or amended offences are consistent with the law’s intention. The tools are: 1. a penalties matrix to help set maximum penalties 2. a demerit point assessment process to analyse the suitability of demerit point penalties. As well as ensuring that new and amended penalties and demerit point settings reflect the HVNL’s intent, the tools will also help keep them consistent with existing penalties in the HVNL and in other state and territory laws. Both tools will be used as guides in consultation with governments, agencies and other stakeholders when setting or amending penalties and demerit points in future. 26 NTC Annual Report 2014 – 15
  • 27. Why regulatory efficiency? Regulation is needed to help provide a safe and equitable transport system. However, the nature of any regulation means it imposes a burden on the businesses and people who use that system. By focusing on regulatory efficiency we can minimise that burden, allowing transport system users to operate as productively as possible while keeping safety paramount. 27Improving regulatory efficiency
  • 28. 28 NTC Annual Report 2014 – 15 Maintenance work 2014 – 15 The NTC’s regulatory maintenance program has two main purposes regarding the national laws, model laws, regulations and other instruments that we are responsible for. The first is to ensure the regulatory framework remains contemporary, nationally consistent, efficient, effective and aligned with agreed policy. This was achieved for the projects detailed below during 2014 – 15. The second is to amend laws and regulations to align with the policy decisions of ministers. The table below indicates what this involved in 2014 – 15. Project Specific purpose NTC recommendations approved by ministers during 2014 – 15 Heavy Vehicle National Law Amendment Package No. 4 Included amendments to: • redefine ‘modification’, so that potentially unsafe modifications must be inspected and cleared • reduce the burden on operators and drivers when dealing with minor vehicle defects • implement policy relating to electronic work diaries • improve regulatory efficiency. Schedule of infringement penalties and demerit points for heavy vehicles Specified new and revised penalties under the Heavy Vehicle National Law. Heavy Vehicle (Vehicle Standards) National Regulation project Updated and aligned in-service heavy vehicle standards across Australia. Australian Vehicle Standards Rules Ministers agreed to revise the rules to structurally improve the alignment of in-service vehicle standards across Australia, as well as reduce the complexity of state and territory implementation. Rail Safety National Law Amendment Package No. 1 Delivered a range of amendments to support more efficient regulation. Model Subordinate Law on the Transport of Dangerous Goods by Road or Rail and Australian Code for the Transport of Dangerous Goods by Road and Rail Harmonised Australian road and rail transport of dangerous goods law with the 18th amendment package to the United Nations model regulations, and delivered local priority improvements to the code. Australian Defence Force Road Transport Exemption Framework Updated routes and added new vehicle types.
  • 29. 29Improving regulatory efficiency Rail Safety National Law Changes to the Rail Safety National Law were made during the year to reduce regulatory burden and provide greater clarity. The NTC developed the amendments following feedback from the Office of the National Rail Safety Regulator (ONRSR) and other stakeholders on how to improve administration of the law. Intelligent Access Program review completed An NTC review of the heavy vehicle Intelligent Access Program (IAP) has recommended making more information about the program available in several ways. The IAP uses satellite navigation and communications technology to track a vehicle’s location. This facilitates truck access to certain areas of the road network that would not have been possible otherwise and ensures trucks only use roads that provide adequate safety. The IAP was launched by Austroads in 2009 and its regulatory framework has since been incorporated within the Heavy Vehicle National Law. The use and disclosure of information gathered by the program is governed by privacy legislation. The review involved submissions from government and industry stakeholders and recommended several changes to the IAP, including: • greater reporting of usage statistics • making a version of the program specification publicly available • reviewing the recertification process to provide more certainty to service providers regarding timelines • providing clarity to operators about the information they are able to obtain from service providers. In November 2014, the Transport and Infrastructure Council endorsed the recommendations for implementation by Transport Certification Australia. Next steps We will report on the implementation progress of the IAP review recommendations in our annual National Reform Implementation Monitoring Report. Load Restraint Guide update underway The NTC began an important review of a critical road safety guide during the year. The Load Restraint Guide provides the road transport industry and enforcement authorities with legal obligations and guidance material for the safe carriage of loads on and in road vehicles. The guide is due for a significant update to reflect current user needs and technologies. We are undertaking this review as part of assisting the National Heavy Vehicle Regulator (NHVR) in its early years of establishment. Future reviews will be managed by the NHVR. We began the review during the year by holding government and industry workshops, which showed widespread support for it and helped identify four main areas of focus: 1. load restraint technology – the guide needs to reflect current technologies which have evolved since it was developed 2. presentation – updating the guide’s language and presentation to make it easier to use and more accessible 3. updating the guide in light of the Heavy Vehicle National Law 4. bringing the guide up-to-date with current heavy vehicle sizes, power and braking capacities, load restraint technologies and the freight task. The review is expected to bring a range of benefits that will contribute to a safer transport system and will help deliver more consistent enforcement and clarity for operators throughout Australia. Next steps Following the workshops, we developed a detailed project plan to use in further consultation with the transport industry, enforcement officers, load restraint experts, the National Heavy Vehicle Regulator and other stakeholders. The review will involve significant work and stakeholder consultation over the coming 18 months before we provide recommendations to Australia’s transport ministers in November 2016. We aim to release the updated guide in 2017. The amendments involved removing barriers to the ONRSR in performing its functions; increasing the ONRSR’s discretion to waive industry fees; and requiring managers of private sidings to give the ONRSR information about railway operations and risk management processes. The Transport and Infrastructure Council approved our reform recommendations, which were then included in legislation passed by the South Australian Parliament on 12 May 2015.
  • 30. 30 NTC Annual Report 2014 – 15 Transport and Infrastructure Council and committee National Transport Commission Transportand Infrastructure Senior Officials’ Committee Transport and Infrastructure Council Endorse work program and activities Consult on national reform recommendations Submit national reform recommendations Advice on reform recommendations
  • 31. Council and committee The Transport and Infrastructure Council brings together Commonwealth, state, territory and New Zealand ministers who have responsibility for transport and infrastructure issues. It also includes the Australian Local Government Association. The council is advised and assisted by the Transport and Infrastructure Senior Officials' Committee, also known as TISOC. The NTC develops and submits reform recommendations to the council for approval, and also works with the committee to ensure projects are aligned with council priorities and to keep members informed on progress. www.ntc.gov.au 31
  • 32. Transport and Infrastructure Council members 32 NTC Annual Report 2014 – 15 As at 30 June 2015 The Hon. Warren Truss, MP Deputy Prime Minister; Minister for Infrastructure and Regional Development The Hon. Stephen Mullighan, MHA Minister for Transport and Infrastructure The Hon. Andrew Constance, MP Minister for Transport and Infrastructure The Hon. Rene Hidding, MP Minister for Infrastructure; Police and Emergency Management The Hon. Jackie Trad, MP Deputy Premier; Minister for Transport; Infrastructure, Local Government and Planning; Trade The Hon. Jamie Briggs, MP Assistant Minister for Infrastructure and Regional Development The Hon. Duncan Gay, MLC Minister for Roads, Maritime and Freight The Hon. Mark Bailey, MP Minister for Main Roads, Road Safety and Ports; Energy and Water Supply Mr Shane Rattenbury, MLA Minister for Justice; Territory and Municipal Services; Sport and Recreation; Minister assisting the Chief Minister on Transport Reform Commonwealth ACT South Australia Tasmania New South Wales Queensland
  • 33. 33www.ntc.gov.au The Hon. Dean Nalder, MLA Minister for Transport The Hon. Simon Bridges, MP Minister of Transport; Energy and Resources The Hon. Jacinta Allan, MP Minister for Public Transport; Employment The Hon. John Day, MLA Minister for Planning; Culture and the Arts Mayor Troy Pickard President, Australian Local Government Association The Hon. Luke Donnellan, MP Minister for Roads and Road Safety; Ports The Hon. Peter Chandler, MLA Minister for Police, Fire and Emergency Services; Education; Transport; Infrastructure; Veterans Support Western Australia Northern Territory New ZealandVictoria Australian Local Government Association
  • 34. 34 NTC Annual Report 2014 – 15 Human resources management Corporate services Commission secretariat Finance Governance Human resources Information technology and knowledge management Public affairs and communication Strategy, monitoring and review Strategic planning Business case development for new reforms Reform monitoring Reviews of existing reforms Work programs Project coordination Heavy vehicle pricing Reform maintenance Productivity, safety and environment Heavy vehicle compliance and technology Chair David Anderson, PSM Deputy Chair Carolyn Walsh Commissioner Nola Bransgrove, OAM Commissioner Neil Scales OBE Commissioner Mike Mrdak Chief Executive and Commissioner Paul Retter, AM Chief Corporate Officer Joanne Olsen Chief Operating Officer Geoff Allan Chief Planning Officer Michelle Hendy NTC organisational structure As at 30 June 2015
  • 35. 35www.ntc.gov.au The NTC develops and sustains a culture of performance, which helps our staff work effectively with available resources, expertise and systems. This ensures that we deliver outcomes in accordance with our approved work program and our strategic and corporate plans, and have the flexibility to respond and adapt to the needs of our stakeholders and ministers. Our people Building a culture of performance Over the 2014 – 15 reporting period we have continued to focus on a number of important areas designed to build and consolidate a culture of performance. Effective stakeholder engagement underpins the successful execution of our work program from the initial stages of reform development right through to the delivery, implementation and maintenance of agreed reforms. In 2014 – 15, we developed and implemented new stakeholder engagement and communication strategies to support the delivery of our work program, and our corporate and strategic plans. This included our first annual stakeholder survey, which provided valuable feedback including on our co-design approach to strategic planning. To further strengthen our engagement with stakeholders, we launched our redeveloped website in August 2014. Further website work followed to improve the website’s structure and functionality in response to stakeholder feedback, including the usability of the site’s submissions process. During the year, we continued to implement a rigorous recruitment and selection process for new staff using specialist search and recruitment agencies and psychometric assessments. Involving our executive in all appointment decisions also helped ensure the best skill and cultural fit for our organisation. At the same time we remained committed to identifying internal opportunities where possible to use and develop our in-house capabilities and provide career development opportunities for our staff. We addressed requirements for unique specialist skills by engaging industry and subject matter experts on either fixed-term contracts or through the use of specialist consultants. Meanwhile, our people continued to benefit from the opportunity to learn and collaborate with colleagues from state jurisdictions and regulators such as Transport for NSW and the National Heavy Vehicle Regulator as we worked with these organisations on a number of projects. We also continued to focus on leadership development in order to build a culture of performance. We held two leadership team days during the year, focused on forward planning, risk management, governance and the development of a unified leadership culture. The composition of our leadership team remained constant during the year, providing an ongoing platform for consistent and effective management of our people, teams and work program. Our first three-year enterprise agreement expired on 31 March 2014. Negotiations were underway at the time of writing, including with staff and union representatives, to develop a new agreement in accordance with the requirements of the Australian Government Public Sector Workplace Bargaining Policy. The year marked the first complete cycle of our new performance and development framework, which was launched in August 2014. The new framework has three assessable components that provide an overall performance rating for each staff member: individual commitments, values and behaviours, and core responsibilities. The new framework saw us refresh our corporate values and behaviours. These are now also known as our TRAITS, representing the following values and behaviours that make up the acronym: • Teamwork – working together • Respect – value every perspective • Accountability – own your actions • Integrity – do what is right • Trust – deliver on commitments • Safety – speak up to ensure a safe environment for everyone.
  • 36. 36 NTC Annual Report 2014 – 15 The NTC places great emphasis on providing a safe and healthy work environment for our staff in accordance with government legislation, policy and recognised best practice. Our Work Health and Safety (WHS) policy and management system formally outline our ongoing commitment to workplace safety and our adherence to legal obligations. In 2014 – 15, work was completed on the policy and management system in order to meet the requirements specified in the Work Health and Safety Act 2011 (Cwlth) and comply with Australian Standard AS4801. This included internal investigations for the prevention of incidents, and was accompanied by awareness training for commissioners and the NTC’s leadership team regarding their duties and obligations as officers under the relevant legislation. WHS initiatives undertakenin the 2014 – 15financial year included: • annual WHS plan approved by our Chief Executive • WHS quarterly certification reports developed to the satisfaction of the Risk and Audit Committee and Board of Commissioners • due diligence officer duties for commissioners reviewed • Working Alone or in Isolation Policy developed • working from home arrangements changed to include WHS requirements • emergency response procedures reviewed and implemented • WHS management system reviewed in accordance with legislated requirements and to the satisfaction of our Chief Executive • risk assessments completed for identified WHS hazard areas • ongoing emergency trial evacuation exercises • staff health and safety representatives, fire wardens and first aid officers appointed and trained • quarterly workplace safety assessments and adjustments • periodic workstation ergonomic assessments • workplace safety inductions for all new staff and contractor appointments • online compliance training in equal opportunity, anti-harassment and anti-bullying legislation, WHS, Code of Conduct and social media for managers and staff. Staff were consulted on a number of WHS initiatives during the year, including education on WHS duties and responsibilities for all staff when working alone or in isolation, and reinforcing WHS hazard identification and reporting processes. As a result, we saw any potential WHS issues promptly reported. Health and wellbeing initiatives continued to centre on a comprehensive Employee Assistance Program and our annual flu vaccination campaign. The effect of these ongoing workplace safety initiatives and associated program has been a consistently safe work environment for staff and visitors to our office. There were no notifiable incidents during the year. There were no investigations undertaken by an inspector appointed under Part 9 of the Work Health and Safety Act, and we did not receive any notices under Part 10 of the Act. Work health and safety Code of Conduct The NTC Code of Conduct applies to all staff members. The code is reviewed and aligned with best-practice standards periodically and it, along with our corporate values and behaviours, sets the standard for professional conduct expected of every staff member. The code emphasises honesty, confidentiality, professionalism, diligence and the need to uphold our integrity and reputation. We provide all new employees with a copy of the code and our values and behaviours during our induction process and also require all staff to complete annual online compliance training related to the code and its principles. Below: NTC staff in 2015.
  • 37. New risk management approach delivers benefits Joanne Olsen NTC Chief Corporate Officer Sound risk management is an important part of organisational governance and the NTC has refreshed its risk management approach to align with best-practice and realise the many benefits this can bring. NTC Chief Corporate Officer Joanne Olsen said the approach involved a new risk management framework to ensure risks were managed consistently and effectively throughout the organisation. ‘At a time of increasing pressure on the public sector to display better governance, a sound risk management methodology is critical to maintaining and enhancing our performance,’ Joanne said. ‘Effective and transparent risk management can lead to better decision making and planning, and better identification of opportunities as well as threats. ‘It is also about developing a risk culture – a sound awareness of risk among all our staff – so that everyone has the confidence to ask questions and challenge assumptions. This is vital in allowing us to pursue sustainable policies and business practices.’ The framework was based on the latest Australian/New Zealand ISO risk management standard and provided a rigorous and systematic way to identity, assess and respond to risks that could affect the NTC’s ability to achieve its organisational objectives. The framework comprised four areas of risk – financial, operational, project and reputational – and stipulated regular reviews, including quarterly reviews of identified risks and annual reviews of the framework itself. Jo said the NTC’s commissioners, particularly those on the Risk and Audit Committee, had tapped into their extensive risk management experience from Australia’s transport industry and the public sector when developing the framework. ‘Our commissioners, and increasingly all of our people, understand that effective risk management is good business practice, creates value and is integral to sound corporate governance,’ Jo said. Developing organisational capability Our commitment to organisational capability development continued in 2014 – 15, with the implementation of an annual learning and development strategy accompanied by increased funding for training and development initiatives. The NTC has adopted the widely held principle that learning takes place through a combination of formal and informal situations, and that opportunities for learning and development can occur every day and not solely at formal training events. Our focus in 2014 – 15 was centred on improving our individual and organisational capability in project management, professional writing, stakeholder engagement and personal efficiency. A new project management framework and methodology were introduced, accompanied by in-house training and individual coaching led by the leadership team and the newly established project management office. The new methodology has streamlined work program reporting; enabled a more rapid response to resource shortfalls or work program changes; and enabled more effective issues and risk management. The new methodology also included developing new stakeholder engagement and communication plan tools and templates, and associated staff training. Formal training for all staff during the year included: • the Plain English Foundation’s Getting to the Point writing workshop to improve writing skills • CMA's Influencing for Outcomes workshop to improve stakeholder engagement capability • PEPworldwide's Personal Efficiency Program to improve day-to-day personal efficiency and effectiveness. In addition, staff participated in a range of industry visits, meetings, workshops and conferences with stakeholders; partook in secondments, formal mentoring and coaching programs; and presented at international and Australian conferences. In 2015 – 16, our learning and development strategy will focus on formal training in policy development and the preparation of regulatory impact statements as well as continuing to build our organisational capability in leadership, project management, stakeholder engagement and change management. www.ntc.gov.au 37
  • 38. Carolyn Walsh Deputy Chair Carolyn commenced as Deputy Chair and Commissioner of the NTC on 1 January 2014. Carolyn is also a Commissioner of the Australian Transport Safety Bureau and is a member of several Audit and Risk Committees for government agencies in New South Wales. She also provides consultancy services in safety and risk management. Her past roles with the NSW Government have included Chief Executive of the Independent Transport Safety and Reliability Regulator and Executive Director, Office of the Coordinator General of Rail. She has also held several positions within the Commonwealth Department of Industry, Science and Resources. David Anderson, PSM Chair David commenced as Chair and Commissioner of the NTC on 1 January 2014. David is an independent consultant on transport and infrastructure issues and has worked on projects for private companies, Australian transport jurisdictions and the Prime Minister and senior ministers of East Timor. His roles include or have included: Chairman, Centre for Pavement Engineering Education; Chief Executive Officer of VicRoads; independent Chair of the National Heavy Vehicle Regulator’s Performance Based Standards Review Panel; consultant on East Timor’s Infrastructure Plan 2009–2020; and expert panellist on rail safety and heavy vehicle policy. David was awarded a Public Service Medal in 2000 for outstanding public service to road development, particularly road safety programs. Paul Retter, AM Chief Executive and Commissioner Paul commenced as Chief Executive and Commissioner of the NTC on 8 July 2013. Paul has extensive knowledge of transport and logistics, having held the position of Executive Director of the Office of Transport Security at the Department of Infrastructure and Transport from 2006 to 2013. Prior to this, Paul was a senior member of the Australian Defence Force. His 34-year army career included appointments as Director General of Preparedness and Plans, and Deputy Force Commander of the United Nations’ Peacekeeping Force in East Timor. Paul was appointed a Member of the Order of Australia in 2006 and was awarded the Australian Security Medal (Australian Security Industry Award) for Conspicuous Service in 2012. 38 NTC Annual Report 2014 – 15 Corporate governance NTC Commissioners
  • 39. Nola Bransgrove, OAM Commissioner Nola commenced as a Commissioner of the NTC on 1 January 2014. Nola is joint owner of Branstrans Pty Ltd – a Victorian-based transport company – and chair of two industry bodies: Transport & Distribution Training and Women in Supply Chain. Her previous roles have included: Municipal Councillor of Traralgon Shire, Commissioner of the Latrobe Regional Commission, Trustee Director of Transport Industry Superannuation Fund, and Councillor of the Victorian Freight and Logistics Council. Nola had an instrumental role in the development of the industry accreditation program TruckSafe. She was awarded a Medal of the Order of Australia in 2012 for services to the transport and logistics industry, women and the community. Mike Mrdak Commissioner Mike commenced as a Commissioner of the NTC on 1 January 2014. Mike is also Secretary of the Commonwealth Department of Infrastructure and Regional Development. His past roles have included senior positions across this portfolio and within the Department of the Prime Minister and Cabinet. He is also the Australian Government’s representative on the Board of the Foundation for Rural and Regional Renewal. Neil Scales, OBE Commissioner Neil commenced as a Commissioner of the NTC on 10 September 2014. Neil is Director-General of Queensland’s Department of Transport and Main Roads. His career has also included roles as Chief Executive for TransLink in Queensland, and several senior positions in England’s transport industry, including as Chief Executive of Merseytravel. Neil was awarded an Officer of the Order of the British Empire in 2005 for services to public transport. He was also awarded an honorary fellowship from Liverpool John Moores University in 2011 for services to the region. 39www.ntc.gov.au
  • 40. Role of the NTC Board of Commissioners The board operates under the National Transport Commission Act 2003 (Cwlth) and the Public Governance, Performance and Accountability Act 2013 (Cwlth). The board, in conjunction with the Transport and Industry Council, is responsible for the strategic direction and performance of the NTC. It comprises six commissioners, including our Chief Executive, and meets regularly throughout the year. The board considers a Statement of Expectations in its operations. The statement was issued by the Chair of the council – Deputy Prime Minister and Minister for Infrastructure and Regional Development, the Honourable Warren Truss, MP – to outline the council’s expectations of our operations and performance from 1 January 2014 until 31 December 2016. The Statement of Expectations is available from our website and is reflected in our strategic plan. An essential part of the board’s responsibility is establishing a sound, risk-based system of controls to provide reasonable assurance that our objectives will be met within an acceptable degree of risk. The board also plays a tactical role in maintaining a watching brief over external and internal environments, and Chief Executive performance. While it does not have a day-to-day management role, the board has authority to determine all matters related to our policies, practices, management and operations. The board is required to take all action necessary to achieve our objectives. Commissioners The current Board of Commissioners was appointed on 1 January 2014 by the Honourable Warren Truss, MP, for a three-year term. NTC Chief Executive and Commissioner Paul Retter, AM, was appointed on 8 July 2013 under a five-year contract. Commission meetings The following table sets out the number of commission meetings and Risk and Audit Committee meetings held during 2014 – 15, and the number of meetings each commissioner attended. During the reporting period, five commission meetings and four Risk and Audit Committee meetings were held. Commissioners Commission meetings Risk and Audit Committee meetings   No. eligible to attend No. attended No. eligible to attend No. attended David Anderson – Chairman 5 5 0 4 (by invitation) Carolyn Walsh – Deputy Chair 5 5 4 4 Nola Bransgrove 5 5 4 4 Mike Mrdak 5 3 0 0 Neil Scales1 4 2 2 1 Paul Retter – Chief Executive and Commissioner 5 5 0 4 (by invitation) 1 Neil Scales OBE was appointed as an NTC Commissioner in September 2014 to replace Norm McIlfatrick. Mr Scales subsequently became a member of the Risk and Audit Committee in February 2015. 40 NTC Annual Report 2014 – 15
  • 41. 41www.ntc.gov.au Risk and Audit Committee The committee’s primary focus is to independently assess our risk management policies and procedures, internal control systems and governance, and to provide relevant reports and advice to the board on a regular basis. It works to ensure: • all major organisational risks have been identified and are subject to periodic risk assessment by staff, with appropriate mitigation measures put in place where necessary • all government policies and legislated requirements in relation to WHS and financial management are being met • all mandated external reports to government are accurate before being submitted to the board • financial accounts are independently audited in accordance with government legislated requirements. Committee members during 2014 – 15 were: • Carolyn Walsh (Chair) • Nola Bransgrove OAM • Neil Scales OBE1 . Other commissioners may attend meetings either by invitation or as observers. Risk management The NTC’s risk management framework provides instructions to the Board of Commissioners, management and staff for the implementation of consistent risk management practices. The framework provides a structured, consistent and ongoing process to identify, assess, respond and report on risks that may prevent us from achieving our organisational objectives. The framework comprises four risk categories – financial, operational, project and reputational – which are reflected in a risk register. The Risk and Audit Committee reviews the register quarterly before reporting to the board. The committee also presents a full reassessment of risks, controls, mitigations and strategies annually to the board. In addition, the board is regularly advised of significant risk mitigation activities, including the status of our business continuity plan, and is provided with assurances that risk management plans are in place for each significant enterprise risk and that satisfactory mitigation is being undertaken for all other enterprise risks. Compliance The NTC has a comprehensive compliance management plan, which includes fraud management. The plan is updated and reviewed regularly by our management team and the Risk and Audit Committee. Staff undertake training in both fraud awareness and our Code of Conduct. The Fraud Management Plan’s main objectives are to: • ensure employees are aware of and responsible for establishing controls and procedures for the prevention and detection of fraud, corruption and misconduct • ensure employees and management are accountable for reporting suspicions of fraud, corruption and misconduct within the workplace • build an organisational culture that supports employees to report conduct they suspect may be fraudulent, corrupt or improper • ensure appropriate action is taken if fraudulent conduct is detected • provide a clear statement to employees that fraudulent or corrupt conduct is not acceptable and will not be tolerated. There were no instances of fraud recorded during 2014 – 15. The Risk and Audit Committee is a sub-committee of the Board of Commissioners. The committee has delegated responsibility for monitoring and reporting on risk, control and compliance frameworks. 1 Neil Scales OBE was appointed as an NTC Commissioner in September 2014 to replace Norm McIlfatrick. Mr Scales subsequently became a member of the Risk and Audit Committee in February 2015.
  • 42. 42 NTC Annual Report 2014 – 15 Business planning Each year, the NTC is required to develop a four-year strategic plan, corporate plan and work program for approval by the Transport and Infrastructure Council. This is in accordance with the National Transport Commission Act 2003 (Cwlth), the Public Governance, Performance and Accountability Act 2013 (Cwlth), and the Inter-Governmental Agreement for Regulatory and Operational Reform in Road, Rail and Intermodal Transport. The strategic plan, corporate plan and work program are prepared under the guidance of our commissioners, with valuable input from government and industry stakeholders. Indemnities and insurance For the reporting period ending June 2015, no indemnity claims were made against the NTC or any of our officers. We ensure adequate insurance cover is obtained each year to cover all areas of the organisation, including professional indemnity, directors and officers, general business, travel, and workers compensation. External scrutiny During the 2014 – 15 financial year, there were no reports by the Auditor-General (other than the report on financial statements), parliamentary committees or the Commonwealth Ombudsman that referred to the NTC. No judicial decisions were made in 2014 – 15 that had, or may have, an impact on our operation, the National Transport Commission Act 2003 (Cwlth) or the inter-governmental agreement. On 7 November 2014, the Transport and Infrastructure Council announced it had agreed to terms of reference for the scheduled six-yearly review of the NTC under s.51 of the National Transport Commission Act. A copy of the terms of reference is available on the Department of Infrastructure and Regional Development website. The review was underway at the time of writing this annual report. There have been no other key activities or changes that affected our operations or structure during the 2014 – 15 financial year.
  • 43. Financial statements 2014 – 15 43Financial statements
  • 44. 44 NTC Annual Report 2014 – 15 Table of contents Statement by the Commissioners, Chief Executive and Manager Finance Auditor’s report Statement of comprehensive income Statement of financial position Statement of changes in equity Cash flow statement Schedule of commitments Note 1: Summary of significant accounting policies Note 2: Events after the reporting period Note 3: Expenses Note 4: Own source income Note 5: Fair value measurements Note 6: Financial assets Note 7: Non-financial assets Note 8: Payables Note 9: Provisions Note 10: Cash flow reconciliation Note 11: Related party disclosures Note 12: Senior executive remuneration Note 13: Financial instruments Note 14: Financial assets reconciliation Note 15: Reporting of outcomes Note 16: Budgetary reports and explanations of major variances 45 46 – 47 48 49 50 51 52 53 – 58 58 59 60 60 – 61 62 63 – 64 65 65 66 66 67 68 – 71 71 71 72 – 75
  • 45. 45Financial statements In our opinion, the attached financial statements for the year ended 30 June 2015 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act. In our opinion, at the date of this statement, there are reasonable grounds to believe that the National Transport Commission will be able to pay its debts as and when they fall due. This statement is made in accordance with a resolution of the commissioners. Statement by the commissioners, Chief Executive and Manager Finance David Anderson, PSM Chairman Date: 21 August 2015 Paul Retter, AM Chief Executive and Commissioner Date: 21 August 2015 Duminda Senanayake Manager Finance Date: 21 August 2015
  • 46. Auditor’s report 46 NTC Annual Report 2014 – 15
  • 47. 47Financial statements
  • 48. 48 NTC Annual Report 2014 – 15 Statement of comprehensive income For the period ended 30 June 2015 2015 2014 Notes $ $ Expenses Employee benefits 3A 5,574,979 5,699,050 Suppliers 3B 3,141,621 3,004,003 Depreciation and amortisation 3C 207,351 185,892 Total expenses 8,923,951 8,888,945 Less: Own-source income Own-source revenue Sale of goods and rendering of services – external parties 98 17,669 Interest on deposits 42,051 40,051 Total own-source revenue 42,149 57,720 Net cost of services 8,881,802 8,831,225 Revenue from government 4A 9,259,000 9,095,000 Surplus/(deficit) attributable to the Australian Government 377,198 263,775 Other comprehensive income Total comprehensive income attributable to the Australian Government 377,198 263,775 The above statement should be read in conjunction with the accompanying notes.
  • 49. 49Financial statements Statement of financial position As at 30 June 2015 2015 2014 Notes $ $ Assets Financial assets Cash and cash equivalents 1.10 2,286,228 1,737,286 Trade and other receivables 6A 74,317 74,901 Total financial assets 2,360,545 1,812,187 Non-financial assets Buildings 7A,C 127,047 184,650 Plant and equipment 7B,C 512,355 512,279 Prepayments 7D 80,216 110,187 Total non-financial assets 719,618 807,116 Total assets 3,080,163 2,619,303 Liabilities Payables Suppliers 8A 304,057 311,849 Other payables 8B 7,094 3,409 Total payables 311,151 315,258 Provisions Employee provisions 9A 788,726 700,957 Total provisions 788,726 700,957 Total liabilities 1,099,877 1,016,215 Net assets 1,980,286 1,603,088 Equity Reserves 119,607 119,607 Retained surplus 1,860,679 1,483,481 Total equity 1,980,286 1,603,088 The above statement should be read in conjunction with the accompanying notes.
  • 50. 50 NTC Annual Report 2014 – 15 Statement of changes in equity For the period ended 30 June 2015 Asset revaluation Retained earnings Reserve Total equity 2015 2014 2015 2014 2015 2014 $ $ $ $ $ $ Opening balance Balance carried forward from previous period             1,483,481 1,219,706 119,607 119,607 1,603,088 1,339,313 Surplus/(deficit) for the period 377,198 263,775 - - 377,198 263,775 Closing balance as at 30 June 1,860,679 1,483,481 119,607 119,607 1,980,286 1,603,088 The above statement should be read in conjunction with the accompanying notes.
  • 51. 51Financial statements Cash flow statement For the period ended 30 June 2015 2015 2014 Notes $ $ Operating activities Cash received Receipts from government Sale of goods and rendering of services 9,259,094 9,123,248 Interest 42,051 40,051 Net gst received 241,447 343,612 Other 98 17,669 Total cash received 9,542,690 9,524,580 Cash used Employees 5,322,083 5,666,749 Suppliers 3,521,841 3,841,780 Total cash used 8,843,924 9,508,529 Net cash (used by) operating activities 10 698,766 16,051 Investing activities Cash used Purchase of plant and equipment 149,824 412,789 Total cash used 149,824 412,789 Net cash (used by) investing activities (149,824) (412,789) Net increase / (decrease) in cash held 548,942 (396,738) Cash and cash equivalents at the beginning of the reporting period 1,737,286 2,134,024 Cash and cash equivalents at the end of the reporting period 2,286,228 1,737,286 The above statement should be read in conjunction with the accompanying notes.
  • 52. 52 NTC Annual Report 2014 – 15 Schedule of commitments As at 30 June 2015 2015 2014 $ $ By type Commitments receivable Net gst recoverable on commitments (158,687) (214,621) Total commitments receivable (158,687) (214,621) Commitments payable Other commitments Operating leasesi 1,497,846 2,122,577 Other 247,709 238,248 Total other commitments 1,745,555 2,360,825 Net commitments by type 1,586,869 2,146,204 By maturity Commitments receivable   Other commitments receivable   Within 1 year (91,395)   (84,663) Between 1 and 5 years (67,292)   (129,958) Total other commitments receivable (158,687)   (214,621) Commitments payable Operating lease commitments Within 1 year 757,631 693,041 Between 1 and 5 years 740,215 1,429,536 Total operating lease commitments 1,497,846 2,122,577 Other commitments One year or less 247,709 238,248 Total other commitments 247,709 238,248 Net commitments by maturity 1,586,869 2,146,204 NB: Commitments are gst inclusive where relevant. i Operating leases included are effectively non-cancellable and comprise: leases for office accommodation. Lease payments are subject to annual increase in accordance with agreed upwards movements of 4.5% per annum. The existing lease is fixed term for five years with no option to extend attached. The current lease is due to expire in May 2017. The above schedule should be read in conjunction with the accompanying notes.

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