Chapter Three - Annual Reports of Statutory Authorities
3.1
A list of statutory authorities' annual reports
referred to the Committee is contained in Appendix 1.
3.2
The Committee notes that many annual reports that would
normally be examined in this report were tabled after 31 October 2004. These will be examined in the
Committee's Report on Annual Reports No. 2 2005. Of the reports received, the
Committee undertook closer inspection of the following three.
Australian Wine and Brandy Corporation
3.3
The Australian Wine and Brandy Corporation (AWBC) is a
statutory marketing authority established under the Australian Wine and Brandy Corporation Act 1980. The bulk of AWBC's
funding is derived from the levies and export charges paid by Australian wine
and brandy producers. AWBC is principally responsible for ensuring continued
growth in the demand for Australian wine through:
(i) Facilitating market development for Australian wine
exports;
(ii) Providing wine makers with information and analysis to
assist decision making; and
(iii) Maintaining
Australia's
reputation through the administration of export licences and permits, and label
integrity.[15]
3.4
AWBC reported that a motion to increase the wine export
charge was given overwhelming support by the wine industry. This measure was
taken to remove the negative effects of bracket creep and to ensure the
Corporation remains adequately resourced.[16]
3.5
The 2003-04 annual report contained comprehensive
information on Australia's
export performances to the wine industry's major overseas markets. Overall, trading
conditions were described as "difficult" during 2003-04.[17] Although a record volume of wine was
exported, downward pricing pressures meant that the average price per litre for
Australian exporters decreased for the third year in a row.
3.6
For 2003, AWBC reported that most areas enjoyed
favourable winegrowing conditions. Total wine production in Australia
for 2004 was expected to be a record 1.86 million tonnes, up 23 per cent from
the previous record set in 2002. The increased production of white wines was
expected to alleviate shortages of some white varieties, however the increased
production of reds was expected to compound existing supply pressures.[18]
3.7
AWBC also reported an operating surplus of $692,459 for
the financial year.[19]
3.8
The Committee considers AWBC's 2003-04 annual report meets
the reporting requirements and commends it for its timeliness and clarity.
Stevedoring Industry Finance Committee
3.9
The Stevedoring Industry Finance Committee (SIFC) was
established to resolve asbestos-related illness claims inherited from the
Australian Stevedoring Industry Authority (ASIA). These claims relate to waterside
workers' respiratory illnesses allegedly caused by exposure to asbestos dust
when handling asbestos cargo prior to 1977.[20]
3.10
High Court test cases clarifying ASIA's
liability have led to SIFC adopting a policy of negotiation to settle
legitimate asbestos-related claims against it. As at 30 June 2004, the Committee had received 336
claims for damages since 1989, of which 284 had been finalised.[21] The report noted that while the
2004-05 Budget will not provide funds to SIFC, it has sufficient funds to meet
future liabilities for the next twelve months.[22]
SIFC also reported that it had recovered approximately 26 per cent of its
payments to claimants from stevedores and manufacturers and consignees of
asbestos cargo.[23]
3.11
The SIFC also stated that due to the potential latency
period of 60 years for asbestos diseases, claims will continue for some time
into the future.[24]
3.12
As a Commonwealth authority established under the Stevedoring Industry Finance Committee Act
1977, the SIFC is required to report to the Parliament in accordance with
the Finance Minister's Orders made under s48 of the CAC Act. Although the
report was this year provided in a timely manner (unlike the 2002-03 report),
the Committee notes that for the second year running the letter of transmittal
has been left undated.
3.13
The committee notes that this annual report has met it
reporting requirements.
Albury-Wodonga Development Corporation
3.14
The Albury-Wodonga Development Corporation (the
Corporation) is a Commonwealth statutory authority established under the Albury-Wodonga Development Act 1973. As
an entity soon to be wound up, a brief explanation of the Corporation's
historical basis and functions may be of use.
Background
3.15
The Corporation was originally established as part of
an agreement between the Commonwealth, New South Wales
and Victorian state governments, operating in conjunction with the two state
corporations established under Victorian and NSW legislation. With the
objective of developing Albury-Wodonga into a major inland city of around
300,000 people by 2000, the Corporation was responsible for the planning and
development of large tracts of land purchased mainly with Commonwealth monies.
The state Corporations held land title and were responsible for its
acquisition, management and disposal. The activities of these statutory bodies
were overseen by the Albury-Wodonga Ministerial Council, which had authority
under the act to order the Corporation to comply with its directions.
3.16
Behind the scheme was a broader government policy of population
decentralisation via promoting the growth of large regional centres. This
objective was to be facilitated by taking control of the planning and
development of these centres, as well as by shifting a proportion of
Commonwealth public service employment to these targeted centres. In addition
to the Albury-Wodonga scheme, a major regional centre at Orange-Bathurst was
also proposed.
3.17
In 1989, the three governments agreed to abandon the
original aims of the scheme. Responsibility for planning was returned to local
councils, while the Corporation was required to provide a return to the
Commonwealth on its original investment. Consequently, the Corporation principally
became a property developer, selling land in order to provide a return to the
Commonwealth.
3.18
In 1995 the Commonwealth decided to wind up the
Corporation and sell all of its assets within five years. However, in 1997 the Albury-Wodonga
Ministerial Council decided to allow market forces to dictate the pace and
amount of return on the sale of the Corporation's assets, wishing to maximise
returns and concerned that local markets could be distorted. A later date of 30 June 2007 was set for the wind-up
of the Corporation.
3.19
The winding up of the operations of the Corporation began
in earnest with the Albury-Wodonga
Development Winding-up Agreement between the Commonwealth and NSW and
Victorian state governments. This confirmed 30 June 2007 as the date on which the Corporation will be
dissolved and contained an agreement to repeal the relevant state acts and dissolve
the state corporations on 1 March 2004.
Consequently, the state corporations' responsibilities were transferred to the
Corporation. As a return of equity the Corporation paid $3.7 million to the
Victorian government on its withdrawal; NSW held no equity in the scheme.
3.20
In accordance with the winding-up agreement, the
Corporation is now solely responsible for selling the remainder of the assets
at market value. [25]
2003-04 Annual Report
3.21
The Corporation reported that 2003-04 saw a rapid
acceleration in englobo land sales, from 16 ha in 2002-03 to 171 ha for the
reported year. However, while industrial land had sold well, affordability
issues that were affecting sales in most areas had left residential blocks
selling below expected levels. The Corporation did point out though that while
residential sales had slowed from the previous two years they were equal to the
long-term average.[26]
3.22
The return to
the Commonwealth for 2003-04 was $18.5 million, in addition to the $3.7 million
return of equity to the Victorian Government. Total returns paid to the
Commonwealth are now $137.237 million.[27]
3.23
The other significant issue noted in the report was the
release of a scoping study into the future of the Corporation. In submissions
to the study, the Corporation supported the Corporation's replacement with a
new government business enterprise to manage and develop the remaining land
bank. The Government had not produced a response to the study at the end of
2003-04.[28]
3.24
The Committee welcomes
the timely reporting of the Corporation's activities and its compliance with
the FMO guidelines under which it reports.
Senator the Hon.
Bill Heffernan
Chair