Annual Report 2004-2005

The Hon. John Watkins, MP

Deputy Premier
Minister for Transport
Minister for State Development
Level 30, Governor Macquarie Tower
1 Farrer Place
Sydney NSW 2000

The Hon. David Campbell, MP

Minister for Regional Development
Minister for the Illawarra
Minister for Small Business
Level 36, Governor Macquarie Tower
1 Farrer Place
Sydney NSW 2000

Dear Ministers

In accordance with the Annual Reports (Departments) Act 1985, I am pleased to submit, for your
information and presentation to Parliament, the Annual Report of the Department of State and
Regional Development for the financial year ended 30 June 2005.

Yours sincerely

Loftus Harris
Director General
28 October 2005
1 Charter and Legislation 2
About the Department 2
Corporate framework 3
2 Director General’s Report 5
3 Objectives and Results 8
Highlights of the year 8
The year ahead 14
4 Organisation and Functions 15
Departmental functional structure 15
Senior management 16
5 Industry Division 17
6 Investment Division 25
7 Small Business Development Division 28
8 Regional Development Division 36
9 Policy and Resources Division 42
10 Business Strategy Unit 46
Communications Unit 47
Executive Support 48
Retail Tenancy Unit 48
11 Audited Financial Statements 49
12 Appendices 90
Access 126
Index 127
1
Charter and Legislation
About the Department
Charter
The Department of State and
Regional Development (DSRD) was
established in 1995.
The Department is responsible to the
Minister for State Development, and
the Minister for Regional
Development and the Minister for
Small Business.
The Department’s role is to support
the NSW Government by providing
expert advice and quality services
to advance the economic
development of both metropolitan
and regional NSW.
The Department adopts a whole-of-
government perspective in
approaching undertakings and
actively encourages and supports the
interests of the business sector and
the community in its work.
The Department works with business
to strengthen NSW’s competitiveness
internationally, to increase
investment and to build business
capability across the State.
The Department’s clients span
domestic and international
companies of all sizes, industry peak
bodies, professional associations,
business advisers, and government
departments and authorities. Our
services are delivered through a head
office in Sydney, Parramatta, a
network of 18 regional offices
across NSW, and offices in London
and Tokyo.
Legislation Administered
The principal Acts administered by
the Department of State and
Regional Development are:
– Albury-Wodonga Development
Repeal Act 2000 No 18
– Regional Development Act 2004
No 58
– The Innovation Council Act 1996
No 77*
– Retail Leases Act 1994 No 46
– Small Business Development
Corporation Act 1984 No 119
– State Development and
Industries Assistance Act 1966
No 10
– Very Fast Train (Route
Investigation) Act 1989 No 44.
*Note: The Innovation Council Act
will be transferred to the Minister for
Science and Medical Research,
during 2005-2006.
Corporate Framework
Our Mission
Advance the economic development
of New South Wales and bring new
business to the State by:
– providing leadership within
government on business,
economic and regional
development issues
– adopting a whole-of-government
perspective with respect to the
use of the State’s resources to
facilitate investment
– supporting the interests of
business and the community
– pursuing an appropriate
balance between economic
development and the variety of
social and environmental needs
of the community.
Our Vision
To be recognised as the most
effective and efficient business
development agency in Australia.
Our Values
The Department gives effect to its
mission and goals through the
actions of its staff upholding
corporate values of:
– integrity through honesty,
consistency and fairness
– equity and social justice
– respect for the diversity of our
multicultural base
– achievement through diligence,
industry, consultation and
creative thought
– accountability, efficiency
and effective professional
service provision.
Strategic Imperative and
Key Results
The Department’s activities
are encompassed within four
strategic imperatives:
– promote investment
– boost exports
– encourage innovation
– improve the State’s business
climate.
Key results include:
– increased investment
– creation of new jobs
– expanded exports
– innovative businesses
– dynamic Small Medium
Enterprise (SME) and regional
business sectors
– satisfied clients.
Corporate Governance and
Performance Improvement
The Department is committed to
effective corporate governance and
performance improvement. It has a
governance framework that provides Finance. It oversights the
clear direction and transparency in
decision-making and supports the
organisation’s capacity to achieve
key results. In undertaking its
activities, the Department works
within the New South Wales
Government’s framework of
reporting and accountability.
The Department is fully committed to improved performance measures and
the principles of social justice, which measurement systems and oversights
includes equal employment
opportunity, ethical practice and
ethnic affairs priorities. The
Department strives to integrate social
justice principles into its
management and recruitment
practices, its policy advice and its
day-to-day dealings with clients.
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ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Governance Framework
The Department’s governance
framework comprises a number of
significant committees which have a
role in the Department’s planning,
monitoring and review activities and
ensure they are aligned with the
Government’s key priorities.
These are:
Executive Management
Committee
The Executive Management
Committee comprises the Director
General, Executive Directors, Director
Communications, Director, Corporate
Operations and Registrar, Retail
Tenancy Unit. It meets weekly and
provides leadership and strategic
direction to the Department. The
Committee ensures consistency in
the Department’s operations and
the reporting of its achievements.
Audit and Review Committee
This Committee comprises the
Executive Directors, Director,
Communications, Registrar, Retail
Tenancy Unit, Director, Business
Governance and Senior Manager,
Department’s internal audit program,
monitors the effectiveness of the
Department’s risk management
program and the implementation
of reviews of programs and
operational processes.
The Committee also has responsibility
for the development of new and
their implementation.
Other committees involved in the
planning and governance of the
Department’s activities are the:
– Joint Consultative Committee
– Workplace Occupational Health
and Safety Committee
– CCSU Clients Consultative
Committee.
Performance Improvement
With fewer than 300 staff, of which
only eight per cent work in
administration, the Department has
significantly lower staffing and
expenditure levels than competitor
agencies. Although it is what might
be described as a ‘lean’ organisation,
it has achieved a high level of
performance by adopting the
following drivers or management
principles for improved performance:
– customer focus and extensive
consultation with clients
– operating excellence
– financial effectiveness
– continuous improvement in
systems, work practices and
resource usage.
Program Review
The Department’s activities and
operations are regularly and
rigorously reviewed through a
variety of internal and external
processes including:
– financial audit (external)
– performance audit
(external/internal)
– internal audit and review
committee
– managerial evaluation (internal)
– the Council on the Cost and
Quality of Government, the
Public Accounts Committee and
the Treasury
– Ministerial oversight by two
Ministers
– Parliamentary oversight through
a variety of committees such as
the Parliamentary Budget
Estimates Committee.
Managerial evaluation, Ministerial
oversight and audit and review are
continuous. The Department has also
been an active participant in the
assessments of Government service
efforts and accomplishments
conducted by the Council on the
Cost and Quality of Government.
2
Director General’s Report
The year has been one of satisfactory
results for the Department in terms
of achievements in investment,
business growth and delivery of
our services to New South Wales
companies. Despite a backdrop of
continuing drought which has
affected many regional enterprises,
New South Wales companies
have displayed innovation and
determination in their
business activities.
Globally, we have seen a
continuation of the trend for
investment in the services sector in
particular to emphasise global
operations as well as more
traditional regional activities.
State wide, one of the worst
droughts in the history of New South
Wales has continued to affect rural
communities and businesses
servicing these communities. The
effects of the drought have been
uneven and while some areas
continue to suffer, others are now
showing better signs of economic
growth. In recognition of this, the
Government has continued to
provide support through a range of
programs to assist those businesses
affected and to encourage regional
economic recovery and growth.
5
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
The Department has played an
important role in a number of New
South Wales Government initiatives
to attract new business to the State.
It put considerable effort into
attracting participants and
facilitating the Forbes Global CEO
Conference held in
August–September 2005. Nearly four
hundred of the world’s top Chief
Executives visited Sydney, many for
the first time. The hosting of the
Conference will offer significant
opportunities to showcase
possibilities for new investment.
The Department’s emphasis on
international business development
has continued to support a program
of trade missions and trade shows in
emerging markets around the world.
Emphasis has been given not only to
geographically important market
sectors, such as China and India,
but also to specialist product trade
shows, such as CeBIT and Medica
in Europe.
The Department participated with
the Commonwealth and other State
Governments as well as the private
sector in supporting Australia Week
in Los Angeles. By combining a range
of Australian resources, this
promotion has enabled a profiling of
business opportunities for Australia
with sufficient critical mass to
register in the crowded US market.
Similarly, a strong contingent of
New South Wales participants took
part in Australia’s promotion at the
world’s largest biotechnology fair,
Bio2005 in Philadelphia.
The Department also coordinated
participation by New South Wales at
the Australian Pavilion at the 2005
World Expo in Aichi, Japan during
the year.
The legacy of the Olympic Games
and the expertise developed during
the Rugby World Cup has seen
continuing opportunities for New
South Wales based companies to
market their skills to the world. The
Department has helped to develop
opportunities involving the 2008
Olympic Games in Beijing as well as
the Asian Games 2006 in Doha and
2010 in Guangzhou. We are also
working with companies developing
opportunities for the 2012 London
Olympics and for the FIFA World Cup
in South Africa in 2010.
Growing business opportunities in
China were also emphasised at the
New South Wales/Guangdong Joint
Economic Meeting held in
Guangzhou. More than fifty New
South Wales delegates visited
Guangzhou with Minister Campbell
for business discussions. This is the
largest such delegation to visit China
under the terms of the New South
Wales/Guangdong Agreement.
Small business continues to be the
backbone of employment in the
State with over 440,000 businesses
in New South Wales. Business
support programs are delivered
through the Department’s eighteen
regional offices throughout the State
and through the enhanced Business
Advisory Service established during
the year.
Small Business Month has become a
fixture for the New South Wales
business community. Hundreds of
organisations throughout the
State now participate with the
Department in delivering business
events designed to support small
business growth through the month
of September. In this past year
these events involved over
45,000 participants.
Home based business also continues
to grow in importance with
changing patterns in the workplace.
The first Home Based Business Week
was held this year. Between 1999
and 2004 the number of home
based business in New South Wales
increased by nearly 44 per cent.
The creative industries continued to
increase their importance in the New
South Wales economy as
international companies become
aware of the depth of talent and skill
available and the cost effectiveness
of doing work in New South Wales.
In film, international movies such as
Superman were shot in New South
Wales and, increasingly, post
production is adding even more
value. Overall, production
expenditure was worth $254 million,
representing forty seven per cent of
total expenditure in Australia.
Advanced industry clusters are also
reflected in the Department’s efforts
over many years. In February this
year, Optus announced it will
amalgamate its Sydney-based
operations at North Ryde by mid
2007. The transfer of some 6,500
staff will include more than five
hundred new staff and follows a
close cooperative effort over two
years with the Department’s
Investment Division. The Department
also worked with Jetstar and Boeing
and other aerospace-related
companies to continue the growth
of the aerospace cluster at
Williamtown in the Hunter Valley. It
is anticipated that the industry will
employ more than 1,000 skilled
workers by the end of the decade to
undertake advanced aviation work
from markets around the world.

The Government’s BioFirst
BioBusiness program again assisted
New South Wales companies with
commercialisation of new products
and services and expansion into
international markets with
participation in the Bio2005
convention in the US being
a highlight.
An important focus continues to be
the delivery of programs and services
which enhance the competitiveness
and growth of regional companies
and communities. Projects include
the establishment of a
technologically advanced greenhouse
to grow hydroponic tomatoes at
Guyra by the Costa Group of
Companies. The project represents
an investment of $14.4 million and
almost fifty jobs in its first stage,
with the potential to make Guyra a
leader in horticultural development
throughout the region.
In addition, Minister Campbell
hosted the Department’s first ever
Regional Food Tour which took
sixteen buyers and food industry
professionals to meet and do
business with producers in the
Murray, Riverina and Central West
regions. As a result, produce
from these regions is now sold in
Sydney stores and featured on
Sydney menus as well as in new
markets overseas.
The Department also worked closely
with our colleagues in Federal
agencies, such as the Department of
Foreign Affairs and Trade, Austrade
and Invest Australia. The Australia-US
Free Trade Agreement was an area of
particular engagement for the Policy
and Resources Division as was direct
Departmental support to trade and
investment delegations throughout
the year.
The Department has continued to
emphasise the advantages which are
gained by working closely with our
allies in other government agencies
and with business groups. Our close
working relationships with Regional
Economic Development Boards in
New South Wales, Business Advisory
Service, and advanced technology
organisations have allowed us to
deliver support to the broadest range
of businesses. The close relationship
with the Small Business Development
Corporation and the New South
Wales Asia Business Advisory Council
has been of particular importance.
A valuable collaboration during the
year was the Department’s
involvement with the private sector
organisers of Country Week 2004.
This promotion involving
organisations from throughout the
State provided an opportunity for
Sydney based businesses and
individuals to gain a better view of
opportunities that exist in regional
New South Wales.
7
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Another important highlight was the
Department’s continuing Aboriginal
Business Development Programs.
Nearly 300 direct business services
and workshops were delivered with
strong links forged between large
New South Wales companies and
aboriginal enterprises.
During the course of the year, the
Honourable Michael Egan, MLC,
retired from Parliament and as
Minister for State Development. Mr
Egan was Minister for State
Development from the establishment
of the current Department in 1995.
I know that all members of the
Department join me in thanking him
for his leadership and his support of
the Department throughout that
time. We wish him well in his
retirement. Mr Egan was succeeded
in March by the Honourable Andrew
Refshauge, MP.
During the year, a number of long-
serving staff also retired and I would
like to recognise their contributions
as well the continuing contributions
of their colleagues.
It is especially important to recognise
that without the dedication and
professionalism of all of our staff the
Department would not enjoy the
success which it does. I extend my
thanks to all of those who have
helped the Department to achieve all
that is has in the past year.
3
Objectives and Results
Highlights of the Year
Promote Investment
Program areas
Investment Attraction and Development
Regional Headquarters (RHQs)
and Regional Operations and
Technical Support Centres (ROCs)
Business Services
Financial Services and
Information Communications and
Technology (ICT)
Promote Regional NSW
Key results and achievements
Overall, the Department facilitated 126 investment projects across NSW
with investment of over $1.5 billion.
Facilitated the creation/retention of 6,024 jobs.
Secured two RHQs representing an investment of $10 million and the
creation of 27 jobs.
Secured an investment of $7.4 million and the creation of 600 jobs by
one of the largest privately owned call centre operators in the world.
Secured six ICT projects with investment of $12 million and the
creation of 62 jobs.
Secured Manufacturing projects with investment of $42 million and the
creation of over 340 jobs.
National ICT Australia Centre of Excellence reported around $24 million
in research investment, in NSW.
Facilitated 110 projects worth $773 million of investment in regional
NSW. Helped create/retain 3,096 jobs.
Assisted 266 regional business clients and conducted 116 business
seminars, attended by 4,083 people.
Assisted 74 communities under Community Economic Development
Programs. Projects helped create 81 jobs and leveraged $5.1 million in
project funds.
Promote Investment 9

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Program areas Key results and achievements

Held 77 community development workshops, attended

by 2,751 people.
Conducted the Building Regional Towns Tour to Scone, Merriwa and
Forbes to showcase property development opportunities. Preliminary
results indicate $600,000 in sales.
Took 13 film industry representatives to the Central West to showcase
potential filming locations. Helped secure a NSW production spend of
$564,622 and regional spend of almost $22,000.
Held the first NSW Regional Food Tour, taking 16 food buyers to the
Hume/Murray, Riverina and Central West to match business
opportunities with regional food producers, this helped create 144
potential business opportunities with sales expected to reach $275,000
six months after the tour.
Sponsored the inaugural Country Week Expo to showcase to
Sydneysiders the opportunities and benefits of relocating to country
NSW. The Expo attracted 7,500 visitors.
Overseas Business Missions Overall, the Department led or participated in 17 investment and
promotional visits in support of NSW business, including:
– 13 companies exhibited at Medica2004 in Düsseldorf in November
2004, reporting $9 million expected business outcomes.
– 12 NSW companies exhibited at Bio2005 held in Philadelphia, June
2005, reporting $8 million in potential business outcomes.
– 13 NSW based ICT companies presented at ANZA Tech conference
in Palo Alto, California in October 2004, identifying opportunities
for distribution, market expansion and attracting capital investment
within USA.
Conferences and Events Co-sponsored CeBIT Australia in May 2005. The event is the Asia-Pacific
element of the world’s largest ICT trade show network. The event
attracted 602 exhibitors including 100 from overseas and 23,000
visitors. Companies on the Department’s stand reported $2.6 million in
prospective sales out of their exhibition at the trade show.
Co-sponsored Australia Week in Los Angeles in January 2005 attracting
over 5,000 attendees to 14 events aimed at showing Australia as an
investment and tourism destination.
Continued to work closely with the Sydney Convention and Visitors
Bureau to attract international conferences and events to NSW.
Provided support for 21 conference bids during the year. During the
year, Sydney won 35 bids to hold international and national events in
Sydney up to 2011.
Worked with Tourism NSW, the Sydney Harbour Foreshore Authority,
the Sydney Olympic Park Authority and the Sydney Convention and
Visitors Bureau to deliver seven business events at the 2005 World Expo
in Aichi, Japan which resulted in export sales for the participating NSW
companies and an increased awareness of Australia as a destination for
tourism and sporting events.
Major Projects Facilitated investment in major projects of $857 million in NSW with
the creation/retention of 1,432 jobs.
Major projects included the $350 million Optus campus at North Ryde,
a new $130 million plant by BlueScope Steel in Western Sydney and a
$100 million distribution centre to be built by Coles Myer also in
Western Sydney.
Boost Exports
Program areas Key results and achievements

Continue to capitalise on
Olympic related business opportunities
Trade Services
Promote an Export Culture
Domestic Promotion and
Market Development
The Beijing 2008 Olympics and other international Games program
advised more than 300 NSW companies of business opportunities and
helped to secure business in excess of $100 million
Supported 16 NSW companies and led a successful national contingent
to the Stadia China 2005 exhibition and conference in Beijing. A
further mission involving 6 companies visited South Africa for
discussions on the Soccer World Cup 2010.
Worked with Austrade to support NSW companies involved in
contracts for the Athens 2004 Olympic Games covering venue design,
security, training, games management and the conduct of ceremonies.
191 companies participated in 17 group trade missions and market
visits and 35 individual market visits (not all accompanied by
Departmental officers).
Companies reported sales of $3.9 million during the missions and visits
with a further $82.1 million projected in the following 12 months.
Provided 18 seminars and workshops which assisted 552
exporters of services.
The NSW Exporters Network grew to 612 members, a 54% increase
on last year.
The London office assisted 61 companies seeking export opportunities
in the European Union. Of these, 26 were first time potential exporters
to the Union.
The Tokyo office assisted 24 companies seeking export opportunities
in Japan. Of these, 15 were first time potential exporters to the
Japanese market.
Funded the Hunter Export Centre in Newcastle and sponsored the
Hunter Export Awards.
The 765 clients under management by specialist Regional Export
Advisers across NSW achieved sales of $2.9 million. The Advisers met
contract targets and signed on 66 new exporters under the TradeStart
Program, and 12 companies which achieved an export sale were exited
from the Program.
The Department was the principal sponsor of the 2004 Premier’s NSW
Exporter of the Year Awards. Eighty eight companies entered the
Awards with 46 from regional NSW.
Conceived and organised a package of 25 seminars and workshops
that were delivered around the state during Small Business
September 2004.
Supported 22 inbound delegations/visits, and prepared business
briefings on 50 countries to support the NSW Premier and Government
Ministers in meetings with overseas visitors and dignitaries.

Encourage Innovation
Program areas Key results and achievements

Australian Technology Showcase (ATS)
Approved 45 new technologies for admission to the ATS program.
30 events were organised, attracting more than 2,600 attendees.
Launched new website, recording a total of 422,000 user sessions
for the year.
24 ATS companies reported projected sales of $13 million, as a direct
result of their participation in two new rounds of the Technology
Demonstration Program.
Since its inception in 1998, the ATS program has now supported 428
NSW technologies, of which 14 per cent are based in regional NSW.
Encourage Innovation (cont’d)
Program areas
Technology and Innovation Promotion
Innovation advisory and support services
Technology diffusion in construction,
manufacturing and infrastructure sectors
Major National Research Facilities and
Australian Research Council Centres
of Excellence
National Information and Communications
Technology Centre of Excellence (NICTA)
Smart Internet Technology Cooperative
Research Centre (SITCRC)
BioFirst
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ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Key results and achievements
Four Innovation Clusters held 20 events involving 576 participants, to
provide continuous learning forums to growing firms.
Six issues of the Technology & Innovations newsletter reached an
average of over 1,000 targeted readers per issue.
Four Innovation Advisory Centres provided 1,314 services to inventors
and small business innovators.
Two promotional seminars were held attracting 88 attendees.
The Online Innovation Advisory Service attracted 38,918 user sessions,
including 698 users of the proprietary self-assessment software and
eight virtual exhibitor applicants.
Assistance was given to the Welding Technology Institute of Australia
to conduct 46 technology workshops, seminars and forums, attracting
985 participants from transport, construction, mining, pipeline,
defence, water and pressure equipment industries.
Funding was provided to thirteen research and development
organisations in NSW to increase the capacity and capability of the
state’s research and development facilities and enhance industry’s
access to advanced technologies.
Four Research and Development Organisation Roundtable meetings
were facilitated to bring together the research and development in
order to foster potential synergies and enhance industry linkages. This
has led directly to a new partnership between two Centres of
Excellence and Patrick Corporation.
NICTA filed four patents, bringing the total to twelve, seven of which
are for research carried out in NSW; established industry linkages with
Microsoft, IBM and Nortel Networks; and had 61 active research
projects (including 29 in NSW).
The SITCRC specialises in high-value, internet-based technologies,
solutions and services, that can be commercialised internationally. The
Department continued to work with the SITCRC to finalise a proposal
to engage NSW-based SMEs that are developers or users of the
Internet, to achieve outcomes from the Centre’s research activities.
$20 million in sales/investment outcomes for Proof of Concept program
clients in 2004.
$14.6 million investment attracted by BioFirst Biotechnology Precinct
companies in 2004.
Over 800 people attended 14 events throughout NSW as part of the
inaugural NSW First for Biotechnology Week, 4–8 April 2005.
Bio2005 mission to Philadelphia in June 2005 – $8 million expected
business outcomes.
Published updated NSW Biotechnology Industry Directory on CD and
internet. (www.business.nsw.gov.au/biotechnology)
Published four issues of the BioBusiness in NSW e-newsletter, which
highlights NSW biotechnology research and company successes to over
2,700 contacts globally during the year.
Offered assistance of $1,037,000 to 46 NSW biotechnology companies
under the New Export Opportunities (Export Development Services)
Program, and $959,000 to 49 companies under the Non Research
Establishment Costs Program, to assist with intellectual property
protection, regulatory approval, legal costs, business process
development and market development.
Improve the Business Climate
Program areas
Policy Advice
Economic Analysis
Industry Seminars, Workshops
and Promotions
Import Replacement
Supporting Small and Medium
Sized Enterprises
Aboriginal Business Development
Home-Based Business
Women in Business
Key results and achievements
Continued to develop and provide advice for the Director General and
the Department’s two Ministers in the areas of trade, infrastructure,
regional development, planning and transport.
Preparation of 78 detailed evaluations, the majority assessing the
financial viability and economic impact of proposed projects.
Australian Technology Showcase coordinated thirty events attracting
more than 2,600 attendees.
Western Sydney IT Cluster coordinated ten monthly forums and fifteen
business skills development workshops for its members and guests
attracting over 1,050 senior representatives and business leaders.
The Parramatta Business Centre hosted 233 business seminars
and briefings, involving 5,948 participants, covering topics
including business growth, marketing, sales and promotion,
recruiting and exporting.
The Industry Capability Network (ICN) achieved $167 million in import
replacement work for NSW firms during the year, an increase of $41
million from last year.
This resulted in the creation of 2,846 direct and indirect jobs in
NSW with many regional companies benefiting directly from the
ICN’s activities.
The Business Advisory Services delivered a total of 175,000 services
(including 93,000 in regional New South Wales), offered workshops in
areas including marketing, business planning and financial
management, and helped create approximately 4,000 new jobs.
77 companies completed individual export development projects under
the New Export Opportunities (Export Development) Program and
received financial support of $526,000.
The Business Networks Program continued to support the progression
of groups of businesses from alliances to fully functioning
commercial entities.
208 business services were delivered to Aboriginal enterprises,
including the Aboriginal Business Link Program, which helped 19
Aboriginal businesses participate in trade shows.
21 partnerships were formed through the Budyari Ngalaya Program
promoting links between large firms and Aboriginal enterprises
and communities.
13 workshops, tailored for the needs of Aboriginal Business people,
and six Industry Networking Sessions for the tourism and information
technology industries, were held.
Delivered Home-Based Business Action Programs on business planning
and marketing to 413 participants. 92 per cent of participants reported
an increase in their business skills.
Home-based Business Week in May 2005 featured 24 seminars and
workshops attended by nearly 900 business people.
150 people attended Home-Bases Business Seminars on e-marketing
and intellectual property.
Updated the Homebiz Kit: Grow your business at home, a
comprehensive information resource for home-based business
operators, available online or as a CD-ROM.
Five Women in Business Mentor Programs completed, attracting 97
business operator mentorees. Almost half of the participants in
completed programs reported an increase in business turnover by the
end of the program.
Improve the Business Climate (cont’d)
Program areas
Communications
Staff Development
Program areas
Training and Development
Equal Employment Opportunity
Information Management
Corporate Governance
13
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Key results and achievements
Five regional based programs comprising group mentoring workshops
and networking were attended by 177 business participants.
843 businesswomen attended 21 Women in Business Growth Strategy
Workshops, with 8 being held in Sydney and 10 in regional NSW.
Developed and implemented corporate marketing and media strategies
promoting NSW as a leading business location.
Prepared 68 publications such as the quarterly Business First and
Regional First newsletters and the Department’s monthly Business
Update electronic newsletter including three interactive CD-ROMs.
900 media releases prepared State-wide media exposure for the
Department’s activities and successes.
Key results and achievements
Developed and implemented a broader training calendar including
programs on: policy writing, writing skills, management skills, effective
presentation skills, legal awareness and diagnostic skills for
departmental staff.
Developed and implemented a six module Management Development
Program for senior managers.
Strengthened the Department’s Graduate Program through a
proactive recruitment campaign, formalised induction program
and mentoring program.
Promoted the Department as an EEO employer, through advertising
and promotional material.
Supported Aboriginal cultural respect and communication training.
The Department’s Women’s Development/Networking Group for
female staff members delivered several workshops over the year.
Nearly 90 per cent of the Department’s correspondence with its clients
was conducted electronically.
Sessions on all Department websites exceeded 1.3 million. Continued
to maintain a wide variety of critical information through the
Department’s intranet to enhance staff productivity.
Developed and managed the Department’s governance framework in
alignment with the Department’s corporate vision and purpose.
Provided support to the Department’s Audit and Review Committee.
Publication of the following policies and guidelines:
– The Privacy Management Plan and Privacy and Spam What do I have
to do? – Guidelines for Staff;
– Guidelines for Engaging and Using Consultants and Contractors;
– The Protected Disclosures Policy and Procedures.
The Year Ahead
During the 2005-2006 year, the
Department will continue to undertake
its core functions of promoting
investment, boosting exports,
encouraging innovation and
improving the State’s business
climate and competitiveness.
These functions will contribute
significantly to the State’s ability to
create new employment opportunities
by attracting and developing new
business and supporting the expansion
of existing firms within New South
Wales (NSW).
In particular, during 2005-2006, the
Department will:
Promote Investment
– attract and facilitate investment
across NSW to maximise creation
of new jobs and retention of
existing jobs
– maintain Sydney’s pre-eminence as
the major finance and ICT Centre
in Australia
– secure projects embodying new
technologies and new labour
force skills to continue to build on
and strengthen the international
competitiveness of the
State’s economy
– develop the concept of distribution
hubs as a catalyst for regional
economic development
– develop opportunities in global
shared services
– build regional business and
investment through capacity
building and market initiatives in
the film, logistics and food and
wine sectors.
Encourage Innovation
– position NSW as a biotechnology
industry leader by supporting the
commercialisation of new
biotechnology products and
services, attracting new
biotechnology businesses to
grow and expand into international
markets in consultation with
industry allies
– continue overall support to NSW
companies in the Australian
Technology Showcase through
continued implementation of a
range of existing and new
promotional initiatives, including
additional marketing support and
special functions.
Boost Exports
– target services exports in sectors
with specific trade opportunities
in major markets to promote
NSW capability
– continue to work with regional
firms to identify and pursue new
domestic markets as an important
ingredient in building export activity.
Improve the Business Climate
– create an environment in which
business and investment can
flourish through a number of new
initiatives and changes designed to
improve business growth in NSW
– continue to implement a targeted
program of activities to leverage
business benefits for NSW industry
from major events, including the
Rugby World Cup in 2003 and on
the success of our Olympics
Business Program in 2000
– work with NSW agencies, Forbes
Magazine and Invest Australia to
deliver the 2005 Forbes Global CEO
Conference. This event will bring to
Sydney over 400 CEOs of major
international corporations. A
program will be developed in
Australia and overseas markets
to leverage the benefits of this
event for NSW
– introduce reforms to the Retail
Leases Act to increase certainty in
the relationship between retailers
and landlords, reduce red tape and
introduce clearer requirements for
the leasing of retail premises. These
reforms will ensure that a landlord
and a small retailer can deal with
each other on the basis of clear
understanding of the other party’s
position, and can resolve any
disagreements that may arise
quickly and without undue expense.
Staff Development
– maintain the replacement schedule
for technological equipment to
improve workplace efficiency
– further develop staff training
programs, continue to support the
spokeswomen program, maintain
the rewards and recognition scheme
and encourage staff interaction
throughout all levels and divisions
of the organisation to ensure
a happy and efficient
work environment.
4
15

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Organisation and Functions

Department Functional Structure

Minister for Regional
Minister for Development and
State Development Minister for Small Business

Director General

Business Strategy Unit Executive Support Unit

Retail Tenancy Unit Communications Unit

Industry Division Investment Division Policy and Regional Small Business

Resources Division Development Division Development Division
Innovation and Investment Attraction
Technology Policy Regional Operations Small Business
Investment
Economic Evaluation (Office Network) Business Services
Biotechnology Development
and Statistics Regional Programs Trade Services
Industry Development Major Projects
Corporate Services Major Regional Events Overseas Offices
Sports Infrastructure and Business Migration
Corporate Governance and Strategies
Services, Business Ministerial Services
Monitoring
Tourism and
Special Events Ministerial Services
Senior Management
Director General Regional Development Division NSW Government Trade and
Loftus Harris BA Michael Cullen B Com (Ec) Investment Office London
Executive Director Brad Fitzmaurice MA (Hons)
Policy and Resources Division NSW Trade and Investment
Perce Butterworth PSM, M Sc Ag, M Business Strategy Unit Commissioner
Ed, B Ec, Dip Agr Econs, Dip Ed Janine Ricketts BA (Hons), Grad Dip
Executive Director Lib Sci NSW Government Trade and
Investment Office Tokyo
Executive Director
Industry Division (since 16 August 2004) Naomi Nakamura
Michael O’Sullivan B Ec Business Representative
Executive Director Corporate Operations and
Executive Support Unit Retail Tenancy Unit
Investment Division Gary Offner MBA, Dip Law (BAB) Ken Carlsund MBA, Dip Law (SAB)
Warwick Glenn B Sc (Eng) Director Registrar
Executive Director
Communications Unit
Small Business Development Leanne Joyce
Division Director
Janine Ricketts BA (Hons), Grad Dip
Lib Sci
Executive Director
Julie Scott B Bus
(acting Director since 16 August
2004)
5
Industry Division
The Division works closely with
businesses, industry associations,
research organisations and other
government agencies, such as the
Ministry of Science and Medical
Research, to initiate business
development programs and
undertake policy research and
analysis in order to facilitate industry
growth in key industry sectors. These
industry sectors include: information
and communications technology,
advanced manufacturing,
agribusiness, biotechnology, defence,
fashion and textiles, forestry, culture,
business tourism, recreation and
tourism. As well, the Division has
responsibility for supporting cross-
sectoral activities, such as innovation,
research and development,
commercialisation, sea and
air freight.
Highlights for 2004-2005 from the
Division’s programs and engagement
with key industry sectors include:
– forty five new technologies were
approved for admission to the
Australian Technology Showcase
program, bringing the total to
428 NSW technologies and
reporting over $532 million in
business outcomes since its
inception in 1998
– the Division hosted four Research
and Development Organisation
Roundtables, bringing together
all the research and development
facilities supported by the
Department, to foster potential
synergies and enhance industry
linkages. This has led directly to
a new partnership between
two Centres of Excellence and
Patrick Corporation
– Western Sydney Information
Technology Cluster firms
reported over $95 million in
sales success, of which $2.6
million was generated from the
participation of 6 Cluster firms
at the CeBIT Australia 2005
trade show
17
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– Bio Business program supported
62 proof of concept grants,
producing more than
$20 million in sales and
investments outcomes
– the NSW branch of the Industry
Capability Network, with the
Division’s support, achieved
$167.4 million in import
replacement work for local firms
in 2004-2005, an increase of
$41 million from last year,
creating 2,846 jobs for NSW
– the Sydney-Beijing Olympic
Secretariat (SBOS) helped secure
more than $100 million in
business for NSW with more
than 200 NSW companies
having been supported through
this program.
Innovation and
Technology Unit
The Innovation and Technology Unit
of Industry Development Division
provides high level advice on industry
innovation and manages key
programs and initiatives designed to
enhance the State’s innovation and
commercialisation capability.
The Unit maintains close working
relationships with major research
and development organisations,
and works collaboratively with
industry peak bodies, to assist
new companies to commercialise
their products for global and
local markets.
Australian Technology Showcase
The Australian Technology Showcase
(ATS) promotes innovative
Australian technologies to the
international market.
As at 30 June 2005, there were 45
new NSW member technologies
added to the ATS program, bringing
the total number of NSW
technologies to 428, spread across
393 NSW based companies. ATS
networking export support, and
promotional and marketing activities,
have already contributed to more
than $532 million in new sales,
exports, and equity capital injection NSW
for NSW member technologies.
Highlights during 2004-2005,
included:
– the completion of a new
national ATS website launched
by the NSW Minister for Small
Business on 6 April 2005, that
provides improved promotional
benefits for ATS members and
enhanced contact with investors giants Hotmail and WIPRO.
– two new rounds of the
innovative Technology
Demonstration Program assisted
24 ATS companies to trial their
technologies with NSW,
Commonwealth or local
government agencies or major
companies. This program
provides a credible reference site
for these technology companies During the year, the ATS team
in order to help them grow theirpromoted the innovative capability of
export and domestic sales.
These 24 companies reported
projected sales of $13 million,
as a direct result of their
participation in the Technology – 422,000 website user sessions
Demonstration Program
– the launch of the State Contracts
Control Board Information and
Communications Technology
(ICT) two year Pilot program for
ATS ICT companies provides the
member companies with greater
access to government purchasing
opportunities.
Promotional Events
The Innovation and Technology unit
organised over 50 separate forums
and events during 2004-2005
including 30 events providing ATS
members with unique networking
and educational opportunities that
attracted over 2,600 participants.
ATS members were invited to – the provision of ATS export
forums that included detailed
webcast presentations on the
Australia-United States Free Trade
Agreement and US Government
business opportunities, educational
forums on topics such as managing
growth and accessing capital, and
presentations by the founders of
global Information and
Communication Technology (ICT)
ATS Week highlight events, held
from 6-10 September 2004, included investment in four of the state’s six
the ATS Patrons’ Award, a
Commercialisation Workshop by
Spruson and Ferguson, an ATS
Nanotechnology Debate and the
PricewaterhouseCoopers – Making
Global Companies Seminar.
Footage of the technologies
developed by ATS member
companies was on display in the
Australian Pavilion at the 2005 World
Expo from 25 March to an average
of 15,000 visitors per day, and
continues to 25 September.
Profiling the ATS Members
NSW technologies through:
– nine editions of ‘ATSnapshot’
e-newsletters distributed to over
3,300 people
recorded on the ATS
promotional website
– editorial copy placed in special
event publications, magazines
national television programs
ranging from the National
Innovation Festival and
Australian Anthill magazines to
the ABC New Inventors program
– NSW member technologies
promoted through links with
national websites such as the
Australian Innovation Xchange
and AusIndustry.
ATS member international
promotion and export support
during 2004-2005 included:
support grants to 57 NSW
ATS members
– support for participation at the
ANZATECH October 2004
conference in Palo Alto California
by nine ATS ICT technologies.
Major National Research
Facilities
Over the five year funding period,
2001-2006, the NSW Government
has committed $7.15 million
Major National Research Facilities, to
increase the capacity and capability
of the state’s research and
development facilities and enhance
industry’s access to advanced
technologies. The four facilities are:

– Nanostructural Analysis
Network Organisation
– Australian Synchrotron
Research Program
– Australian Proteome
Analysis Facility
– The Bandwidth Foundry.
During 2004-2005, the Australian
Proteome Analysis Facility
collaborated with FLUOROtechnics –
a NSW small to medium sized
enterprise (SME) and as a result, GE
Healthcare was granted the rights
to sell the FLUOROtechnics’
products internationally.
The Division continued to work
closely with the facilities to identify
opportunities where stronger links
with industry, particularly SMEs,
could be developed. This approach
is aiming to create benefits for both
the research and development
organisations and NSW industry.
The Division hosted four Research
and Development Organisation
Roundtables during 2004-2005,
bringing together all the research
facilities supported by the
Department, along with the major
research facilities such as CSIRO and
the Australian Nuclear Science and
Technology Organisation (ANSTO), to
foster the convergence of research
disciplines and enable the Centres to
learn from and collaborate with
others in linking with the industry.
Australian Research Council
Centres of Excellence
The NSW Government, through the
Department, has committed to invest
up to $5 million, over the four years,
2003-2004 to 2006-2007, in nine
Australian Research Council Centres
of Excellence located in NSW. The
Centres include:
– Centre of Excellence for
Quantum Computer Technology
– Centre of Excellence for
Advanced Silicon Photovoltaics
and Photonics
– Centre for Ultrahigh-bandwidth
Devices for Optical Systems
– Centre of Excellence for
Autonomous Systems
– Centre of Excellence in
Biotechnology and Development
– Centre of Excellence for
Integrative Legume Research
– Centre of Excellence for
Mathematics and Statistics of
Complex Systems
– Centre for Nanostructured
Electromaterials
– Centre for Complex Dynamic
Systems and Control.
During the past year, the Centre
of Excellence for Advanced Silicon
Photovoltaics and Photonics entered
into a number of collaborative
research projects with Suntech Power
Corporation. The Centre of Excellence
for Autonomous Systems
commercialised its technology for
the mining industry through the
establishment of a company called,
AcuMine. The Centre of Excellence
for Autonomous Systems also linked
Patrick Corporation with the Centre
of Excellence for Mathematics and
Statistics of Complex Systems in a
program to optimise Patrick
Corporation’s facilities at Port Botany.
The Division continued to work
closely with all of the Centres to
expand their industry linkages.
National ICT Centre of
Excellence
The establishment of the National
ICT Centre of Excellence (NICTA) in
Sydney builds on NSW’s position as
a leading ICT hub in the Asia Pacific
region. NICTA’s key focus is to
establish relationships for
commercialisation with Australian
SMEs and larger ICT companies
through collaborative research,
incubator development, staff
exchanges and information sharing.
19
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
The NSW Government, through the
Department, is contributing $20
million over five years (2002-2007)
and is working closely with NICTA to
increase its linkages with NSW SMEs
in the ICT industry and to attract
additional investment to the state,
65% of NICTA’s research projects
are located in NSW.
The main highlights of NICTA’s
progress in 2004-2005 included:
– NICTA filed four patents,
bringing the total to twelve,
seven of which are for research
carried out in NSW
– NICTA established industry
linkages with Microsoft, IBM
and Nortel Networks.
There is now 140 staff in NSW based
at the Australian Technology Park
and the University of NSW. NICTA
has also been successful in attracting
world class researchers to NSW from
countries including Germany, South
Africa, USA, Israel and Canada. The
number of PhD students supported
by NICTA has reached 132, including
82 in NSW.
Western Sydney IT Cluster
The Cluster, which has more than
225 members, works to grow
Western Sydney’s strong and
innovative ICT industry. The Cluster
has strong links with key industry
associations, key local, State and
Commonwealth Government
agencies, research institutions,
institutions providing tertiary
education, organisations providing
professional and specialist services,
local trade organisations, major
ICT user groups and key
international clusters.
The Cluster members accessed the
following services and business
development initiatives:
– all cluster members utilised
Gartner’s IT Research flagship
advisory service
– more than 80 cluster members
received daily customised
updates on ICT tenders released
in Australia and New Zealand.
Approximately $2 million
business was written as a direct
result of this service
– a new Cluster website was
developed facilitating online
collaboration and members
capability mapping via the
online directory
– six bi-monthly newsletters,
including three e-newsletters
were sent to 2,700 readers per
edition providing them with an
ability to share ideas and
business opportunities
– ten monthly forums and fifteen
skill development workshops
provided knowledge, skills,
industry intelligence, as well as
networking and other business
opportunities for the cluster
members. More than 1,050
senior representatives attended
these business functions
– cluster members accessed the
business and industry marketing
databases, business analysis
reports, industry profiles and
business assistance information
available through DSRD’s
Western Sydney Business Centre
– the Business Opportunities
program provided access to new
sources of business within
government, healthcare,
education and other sectors,
creating business opportunities
for cluster members
– under the Commercialisation
Program, 45 cluster companies
received advice on topics such as
Intellectual Property, Taxation,
Finance and Legal. Seminars
have been led by key providers
Ernst and Young and Spruson
and Ferguson – five cluster firms
took out preliminary patents,
with a projected market value
of over $200 million over the
next five years.
The work of the Cluster has
contributed towards:
– $95 million of sales
opportunities for Western Sydney
ICT companies, as a direct result
of the Cluster’s linkages
– 16 Cluster members participated
in CeBIT Australia 2005, with
six on the Department’s stand,
reporting an estimated
$2.6 million in new direct
sales prospects
– 75 Cluster members were
referred to various AusIndustry
products and services enabling
them to access $250,000 in
R&D grants
– 28 firms accessed the trade
mission programs offered by
the Department and Austrade.
Smart Internet Technology
Cooperative Research Centre
In 2004-2005, the Department
provided the Smart Internet
Technology Cooperative Research
Centre (SITCRC) with $210,000 cash
and $115,000 of in-kind support.
The Department continued to work
with the SITCRC to finalise a proposal
to engage NSW-based SMEs that are
developers or users of the Internet,
to achieve outcomes from the
Centre’s research activities. The
proposal includes the establishment
of NSW-based SME consortia, in
the areas of education, healthcare
and financial services. The
consortium model eliminates the
cost prohibitive barrier for SMEs
to partner with the CRC.
CeBIT Australia 2005
The Department was a major
sponsor of CeBIT Australia 2005,
held at Darling Harbour from
24–26 May 2005. CeBIT Australia
is the Asia-Pacific element of the
international network associated
with CeBIT, the world’s largest and
most successful information and
communications technology (ICT)
trade shows.
CeBIT Australia 2005, officially
opened by the NSW Premier,
featured 603 exhibitors including
100 exhibitors from 18 countries.
With an 11 per cent increase over
the previous year’s attendance,
almost 23,000 people visited the
trade show.
The Department showcased the
innovative technologies of 16 ICT
companies including six from the
Australian Technology Showcase, six
from the Western Sydney IT Cluster,
one from the New Exporter program
and three from regional NSW. The
16 exhibitors each made, on
average, 18 significant sales leads,
with predicted sales of $5.6 million
likely to be generated over the next
12 months as a direct result of their
participation in CeBIT Australia 2005.
Biotechnology
The Department continued to
implement the business elements
of the five-year $68 million
biotechnology strategy, BioFirst.
The programs assist small to medium
sized biotechnology businesses
commercialise new products and
services, develop international
markets, and attract additional
investment. A highlight from the
year was the inaugural NSW First
for Biotechnology Week (4–8 April
2005), which consisted of a series
of 14 events organised by various
public and private sector
organisations involved in the
biotechnology industry. Over 800
people attended these events which
were held throughout the State,
including the inaugural BioFirst
Commercialisation Awards ceremony
at Government House and events in
the Hunter Region and at Narrabri.

International Promotion
During 2004-2005, the Division
supported missions to:
– Medica 2004, the world’s largest
medical device and supplies
trade show held annually in
November in Düsseldorf
Germany. The 13 NSW
companies exhibiting at Medica
reported close to $9 million
in expected business outcomes
from participating in this
event, through distribution,
sales, investment and joint
venture agreements
– Bio2005 in Philadelphia in June
2005. The NSW delegation
consisted of 80 senior
representatives from the State’s
biotechnology companies,
universities and research
institutes. Twelve NSW based
organisations exhibited in the
Australian pavilion, with
companies reporting potential
business outcomes of $8 million.
Proteome Systems also signed a
letter of intent with the Geneva-
based Foundation for Innovative
New Diagnostics (FIND), to
develop diagnostics tests for
infectious diseases for
developing countries.
Domestic Promotion and
Industry Development
During the year, the State’s
biotechnology capability was further
promoted by:
– publishing four issues of the
BioBusiness in NSW e-newsletter,
which highlights NSW
biotechnology research and
company successes to over
2,700 contacts globally
– distributing 24 editions of the
biotechnology events and news
e-newsletters to 850 members
of the NSW biotechnology
community, to keep them
abreast of events, training and
development opportunities,
government programs and
relevant news
– distributing 2,500 copies of the
NSW biotechnology industry
directory at trade shows
– the production of a new website
which profiles over 250 NSW-
based biotechnology companies
and related research and service
organisations
(www.biotechnology.nsw.gov.au)
– organising and supporting
briefings for the NSW industry
on biotechnology and medical
device opportunities in Europe
(September 2004), Israel
(September 2004), the United
Kingdom (July 2004, May and
June 2005) and the USA
(March 2005)
– hosting prominent international
visitors, including Professor Sir
Martin Evans, Director of the
Cardiff School of Biosciences,
who is widely regarded as the
father of modern stem cell
research and Dr Eli Opper, the
Chief Scientist of Israel.
Commercialisation
During 2004-2005, the Division:
– entered into a 12 month
Participation Membership with
the Australian Institute for
Commercialisation (AIC) to
provide a suite of initiatives that
support the NSW innovation
agenda. These include the
following key aspects:
• Tailored installation and
training workshops for DSRD
business development
managers and Innovation
Advisory Centre (IAC) staff on
the AIC’s Commercialisation
Management System. This
provides an “on-demand”
commercialisation knowledge
engine as an aid to business
advisory service to SMEs
21
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
• The delivery of four
Commercialisation
“Bootcamps” to meet
the innovation and
commercialisation needs of
a number of key stakeholder
groups, including small to
medium sized ICT business,
DSRD staff, and research and
commercialisation staff from
NSW funded research centres
and the Smart Internet
Technology Cooperative
Research Centre
• The trial implementation of
an online portal for matching
Australian businesses with
Australian expatriates
offshore, known as
ExpatriateConnect
(www.ExpatriateConnect.com)
– provided $1,085,156 in financial
support through the Proof of
Concept program to 32 early
stage research companies to
help commercialise their
research. Proof of Concept
program participants reported
sales/investment outcomes of
$20 million in 2004
– supported the incubation of
biotechnology start-up
companies through the BioFirst
Biotechnology Precinct at the
Australian Technology Park.
The Precinct tenant companies
attracted $14.6 million in
investment during 2004, an
average of $1.2 million per
company. Both of the winners
of the inaugural BioFirst
Commercialisation Award,
Medsaic Pty Ltd and CathRx,
are based in this Precinct.
Industry Development Forestry This co-operation facilitates better
In partnership with the business access to international
Agribusiness – Food Commonwealth, the Department freight and transport logistics by
and Beverages NSW businesses and exporters.
supports the operation of seven
There continued to be strong Private Forestry Development The Division assisted the SFC in
international interest in NSW as a Committees in regional NSW. undertaking a ‘NSW Landside
reliable source of supply for premium These Committees undertake a Infrastructure Capability –
quality, innovative food and beverage range of activities to encourage an International Containers’ study, as a
products. The Department assisted in expansion of the resource base follow-up to an earlier study on
providing tailored itineraries, available for timber processing ‘Mapping the NSW Import and Export
briefings and product evaluations for activities in their areas. Container Chains’ that investigated
a number of international food container management practices and
Their efforts contributed to nearly
buyers who visited NSW during provided qualitative and quantitive
20,000 hectares of new plantation
2004-2005, including: information to assist industry and
developments, worth some $60
– Oil & Vinegar, a significant million, being authorised for government to define international
specialty food retail chain in establishment by the NSW container movements in NSW and
The Netherlands Government across the State during determine key factors that contribute
– Villa Market, a high-end the year, a three-fold increase on to the movement of containers.
supermarket chain in Thailand 2003-2004 plantings. The latest study enhances industry
– Makro Cash and Carry, a major and government understanding of
Import Replacement current and future capacity
retail chain in Thailand, Malaysia
The Division, together with the constraints of the NSW landside
and Indonesia
Industry Capability Network ICN container system and provides a
– buyers from the Asia/Pacific and (NSW), works with local companies foundation for improving the
Middle Eastern regions who to promote their capabilities to efficiency of the supply chain.
visited Sydney while in Australia buyers of imported goods and
for the Fine Food 2004 trade The Division assisted AFEC in
materials, especially associated with completing a study on land based
exhibition in Melbourne major projects. In NSW, ICN achieved movements at Sydney Airport (KSA)
– international wine buyers who $167.4 million in import replacement which handles between 55 and 60
attended the major showcasing work for local firms in 2004-2005, per cent of Australia’s international
event, Wine Australia 2004. an increase of $41 million from and domestic air freight. The
The Division continued to support last year. research showed that some resource
the National Centre of Excellence in Over the last year the ICN national and operating constraints are
Functional Foods based at the Smart network helped Australian currently affecting the performance
Food Centre at the University of companies to replace a total of of the air-land interface at KSA and
Wollongong. The Department $645 million worth of imports, with there is an urgent need to develop
funded a Coordinator to link the NSW receiving the largest benefit of strategic responses to these issues.
Centre with NSW companies any state. During the year, NSW The Division was also involved in
interested in product development, companies received orders across another AFEC project to research the
market opportunities, and Australia valued at $196 million, viability of bi-modal exports and
collaborative R&D in this field, which, without ICN’s support, would imports. AFEC continued to
and hosted the Centre’s Annual have gone to overseas suppliers. participate in research on airfreight
Conference in April 2005. Additionally, ICN activity over the last movements through regional NSW
The Division organised and 12 months has created 3,332 jobs airports, both interstate and overseas.
supported a variety of seminars and for NSW and 10,982 nationally.
workshops across the State on a Textiles, Clothing and Footwear
range of industry issues, attended Air Freight Export Council The Division continued to support
(AFEC) and Sea Freight
by an estimated 500 food Council (SFC) Mercedes Australian Fashion Week
industry participants. (MAFW) as a platform for NSW
The Division co-funds and works with fashion designers to cost-effectively
The Department released nine issues the Air Freight Export Council (AFEC)
of its food e-newsletter, Food Bytes, pursue new export opportunities.
and the Sea Freight Council (SFC) to MAFW 2005 was held in Sydney in
during 2004-2005. An estimated bring together the many services and
1,000 food companies and industry early May and showcased collections
products providers in the logistics of some 100 designers to more than
stakeholders subscribe to Food Bytes. industry and to improve supply chain
2,000 delegates, including nearly
management practices in NSW.
 23

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
200 international buyers. In the lead- Sports Infrastructure and contacts in Guangzhou, for the
up to the event, the Department Services, Business Tourism 2010 Asian Games, and in Delhi, for
held a business workshop for around the 2010 Commonwealth Games.
80 NSW designers and other and Major Events A mission to South Africa to discuss
MAFW participants to help them Sports Infrastructure opportunities for the Soccer World
maximise the return from their Cup 2010 has created business
investment in MAFW. The Division worked closely with leads for security, planning and
Austrade to support NSW companies sports services.
involved in contracts for the Athens
Culture, Recreation Following early successes in the
2004 Olympic Games. Several NSW
and Tourism companies, including Bligh Voller preparations for the Beijing 2008
Olympic Games, NSW companies
Blue Mountains Cultural Centre Nield and Sinclair Knight Merz, gained further significant business,
– Katoomba were involved in venue design and
construction. Other companies, including PTW Architects’ design
The Division is working with a role for the Beijing Olympic Village;
including MI Associates, TAFE Global,
number of other NSW Government engineering consulting firm
Starena International, Great Big
agencies and the Blue Mountains Northcroft Australia providing
Events and David Grant Special
City Council to build the Blue advice to the Beijing State Asset
Events, successfully delivered services
Mountains Cultural Centre. The Management Company; Cox
in planning, security, training,
mixed-use development will comprise Architects continuing with their
games management and producing
a cultural centre, retail area and a design for the Qingdao Olympic
the ceremonies.
two level car park. Sailing base; and a URS-led team
The Division’s Beijing 2008 being awarded first prize in an
The NSW Government has allocated
Olympics and other Games business international design competition for
$7.3 million to this project, and is
development programs have yielded the landscape and external works for
currently negotiating with the
impressive results. The Division, the Qingdao Sailing base. Sydney
Stevens Group and the Blue
through the Sydney-Beijing Olympic architects Timothy Court and
Mountains City Council to finalise
Secretariat (SBOS), has engaged with Company were awarded the contract
the Option Deed.
the Beijing Organizing Committee for for the design of the 2008 Olympic
It is expected that construction will the XXIX Olympiad (BOCOG), the Equestrian Centre in Hong Kong.
commence in 2006. Beijing Municipal Government and
China’s National Government to NSW companies have had some
Film Industry notable successes in Doha (2006
provide advice based on the
The Division jointly administers the experience gained from the success Asian Games), including the
Film and TV Industry Attraction Fund, of the Sydney 2000 Olympic Games appointment of David Atkins
with the New South Wales Film and and of other recent Games. The aim Enterprises to prepare the Opening
TV Office. The Division also oversees of this program is to introduce and and Closing ceremonies. A number
the agreement between News endorse leading-edge NSW of specialists were also involved in
Limited/Fox Studios Australia Pty Ltd companies with expertise in the bid preparations by London and
and the Ministerial Corporation delivering planning, design, Paris for the 2012 Olympic Games.
for Industry. engineering, management and Overall, the estimated value of
The National Survey of Feature Film implementation of sports/events business secured by NSW companies
and TV Drama Production, prepared infrastructure, technologies and in Beijing and Doha exceeds $100
by the Australian Film Commission, specialist managerial skills. million and more than 300 NSW
showed that NSW maintained its The Division and SBOS are also companies have been advised of
dominance of the industry with tracking opportunities across a opportunities and supported
47 per cent of total film production broader range of forthcoming through this program.
expenditure in Australia, despite a international Games and events,
nationwide drop in film production with particular focus on master-
expenditure by 10 per cent. The planning, architectural design,
reason for the decline in the Games planning, transport and
production expenditures in NSW traffic planning, environment
was due to a drop in the number of planning and technologies, security,
foreign productions choosing NSW communications and IT, public health
as a filming destination. The level and food safety, and training.
of expenditure for Australian Companies are also being
productions filmed in NSW was progressively introduced to
the same as last year. appropriate officials, and business
Business Tourism and
Major Events
The Division works with the Sydney
Convention and Visitors Bureau
(SCVB) to attract selected
international conferences and events
to NSW. Over 100 conferences
estimated to attract around 185,000
delegates and inject approximately
$779 million into the NSW economy
will to be held in Sydney between
2004 and 2012.
Major conferences secured this year
include, the Society of Environmental
Toxicology and Chemistry World
Congress 2008 and The National
Rural Health Conference 2007.
In 2004-2005 DSRD supported
twenty one bids for conferences
(five financially). Should they be won
for Sydney, these conferences will
generate up to $60 million in direct
spending and create up to 240 jobs.
Any financial support will be used
to develop business elements within
the Conference program to assist
NSW industry to showcase
products and expertise to an
international audience.
Case Study
MobileIT Solutions boosts Electrolux communications
– Wireless customer service software also updates accounts and stock control systems
Western Sydney IT Cluster firm,
MobileIT Solutions, has won a
contract with Electrolux Home
Products, Australasia’s largest
household appliances company,
to improve communication to its
field service engineers. Electrolux
manufactures and markets such
famous brand names as
Westinghouse, Simpson,
Electrolux and Kelvinator.
MobileIT Solutions, a Castle Hill firm,
designed special software to allow
Electrolux service engineers to receive
service jobs wirelessly in the field via
a Nokia 9210i (combined
PDA/mobile phone). The MobileIT
software enables the engineer to
Australia Week, Los Angeles
2005
Australia Week was held in
Los Angeles from 15–23 January
2005 and was co-ordinated by the
Australian Consulate-General in Los
Angeles. The Department was one of
the 24 sponsors for the event.
The key theme for the week was
“Australia – A great place to do
business, service products, invest
and visit”. Fourteen events were
held over the period attracting
over 5,000 attendees, key ones
including the NSW dinner to
promote the 2005 Forbes Global
CEO Conference, the BHP Billiton
Trade and Investment Seminar, the
Food and Beverage Trade Day, and
the Film and Style Festival.
2005 World Expo – Aichi, Japan
The NSW Government was a sponsor
of the Australian Pavilion at the 2005
World Expo held in Aichi, Japan,
from 25 March-25 September 2005.
More than 2.5 million visitors are
expected to attend the Australian
pavilion at the Expo. The
Department, in co-operation with
Tourism NSW, the Sydney Olympic
Park Authority, the Sydney
read and complete service requests
on site and then print a customer
invoice via an infrared printer. It
simultaneously updates the Electrolux
service management application
which, in turn, updates Electrolux’s
accounts and stock control systems .
Robert Astorri, Business Development
Manager at Electrolux said the
company wanted to use handheld
technology and wireless
communications to improve
information flow and eliminate
entering the same data several times.
The system will increase productivity,
improve delivery of customer service
and cut operating costs.
Convention and Visitors Bureau,
TAFE NSW and the Sydney Harbour
Foreshore Authority held seven
business events in the Australian
Pavilion during Sydney Week from
31 May– 4 June 2005.
The events covered areas like
profiling NSW technologies such as
BodyOnline, a healthcare company;
encouraging tourism, promoting
NSW’s capabilities in Wine and Food
and promoting Sydney as a
destination for sporting, business
and fashion events. The NSW
Minister for Tourism and Minister
for Sport and Recreation, Minister
for Women and Minister assisting
the Minister for State Development,
hosted these events.
All events were highly successful
with over 400 attendees (90 per
cent Japanese), a large number of
business leads and media coverage.
The NSW companies participating
in the program have reported
outcomes including: new wine
orders from Japanese wholesalers
and new relationships with Japanese
companies which are likely to lead
to further product sales.
“After assessing options,
Electrolux chose Mobile IT Solutions
as the supplier”, Mr Astorri said.
Electrolux is now planning to
implement the same solution in
other countries, given the benefits
the solution is delivering to its
operations in Australia.
Mobile IT has been a Western Sydney
IT Cluster member since 2001.
It exhibited at the 2004 and 2005
CeBIT exhibitions and participated
in the Cluster’s Wireless Special
Interest Group.
6
Investment Division
The Investment Division promotes
New South Wales (NSW) as an
attractive investment location,
offering access to Australian, Asia
Pacific and global markets as well as
a skilled multilingual workforce.
NSW is Australia’s largest and most
diversified State economy, making it
attractive to both Australian and
overseas companies. During the year,
half of the investment projects
secured by the Investment Division
were sourced from overseas.
The Division helped secure 20 major
and strategic projects to NSW, four
of which were established in regional
areas of the State. Overall, these
projects represent an investment of
over $1 billion and will create or
retain over 3,300 jobs. The Division
assisted businesses with information
for feasibility studies, site location,
regulatory approval processes and
facilitation of staff training. The
support provided by the Division has
ensured that the projects proceeded
in NSW, in many cases against
competition from other countries.
25
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Investment Promotion Regional Headquarters and
Activities Operations Centres
In September 2004, a mission to NSW has over 65 per cent of
Hong Kong and China was the Australian based Regional
undertaken to attend the Fourth Headquarters (RHQs) and Regional
Forbes Global CEO Conference. The Operations Centres (ROCs) for
aim of the mission was to ensure foreign multinational companies
NSW was in a position to maximise in the Asia Pacific region. During
the business promotion opportunities the year, two RHQs were attracted
represented by the Fifth Forbes by the Division in the ICT industry
Global CEO Conference to be held in involving $10 million investment and
Sydney in August/September 2005. 27 jobs. These reinforced the State’s
In February 2005, the Division’s position as a major centre for ICT
Manager Business Migration, in the Asia Pacific.
presented at a series of Business
Migration Open Days in China
organised by the Australian
Consulate in Hong Kong. The cities
visited included Guangzhou,
Shanghai and Beijing. The Open Days
were attended by over 640 Chinese
business migration agents and
prospective business migrants.
Contact was made with 32 business
migration agencies with which NSW
had had no previous contact and
with 21 prospective business
migrants. The visit is expected to
boost business migration
applications from China.
Information and
Communications Technology
(ICT)
The Investment Division built on
work carried out in 2003-2004 in
the digital media industry to further
promote opportunities emerging
from the convergence of the film,
interactive media, games,
entertainment and information
technology industries. This year,
NSW industry took out fourteen of
twenty categories at the Australian
Interactive Media Industry
Association (AIMIA) Awards. The
Division produced a new CD ROM
and supporting material to promote
NSW as a location for Digital Media.
This material was launched at the
Electronic Entertainment Expo (E3)
in Los Angeles.
The Division is continuing to work
to secure a number of investment
projects in the games sector.
The Division attracted six ICT projects
representing investment of $12
million and 62 new jobs. Sophos
established an Asia Pacific regional
anti virus support centre at its new
North Sydney facility and announced
that North Sydney would become
the company’s Asia Pacific technical
services hub, extending its existing
Australian and New Zealand services
to the wider region.
The Canadian broadband
manufacturer Vcom committed
to establishing an Asia Pacific
regional sales office in Sydney which
will involve an investment of $6
million and will employ 15 people.
Australian mobile communications
service provider, vRoam Global will
invest $1.2 million and create 10
jobs in a project that will broaden
its customer base and become
a supplier of travel communications
services for corporate and
leisure travellers.
Manufacturing
The Division attracted five
manufacturing projects across a
range of sectors involving a total
investment of $42 million and 343
new and retained jobs. Two of these
projects were in regional areas with a
combined investment of $29 million
and 138 new and retained jobs.
Turbomeca Australia will assemble
and maintain helicopter engines for
the Australian Army’s new MRH90
helicopters at Bankstown airport.
This will create up to 75 new
positions including apprenticeships
in the highly skilled area of
aircraft engineering.
The Finishing Post has established a
print finishing operation in Sydney,
creating up to 100 new jobs. Some
of these jobs will be offered to
people with disabilities and to the
long term unemployed.
Jetstar will expand its maintenance
facility at Newcastle to enable it to
maintain the company’s new Airbus
A320 aircraft.
Business Services
The Division established a team to
pursue shared services opportunities
primarily in the financial services,
telecommunications and information
technology sectors. The Division
defined and presented NSW’s
unique value propositions to
international companies operating
in these sectors. As a result a
number of promising international
leads were identified which have a
high probability of success in 2005-
2006 and would create high
value/high skill jobs.
The Division helped secure an
expansion in Sydney of Customcall,
one of the largest privately owned
call centre operators in the region.
The project involved an investment
of $7.4 million and will employ
600 people.
Major Projects
The Major Projects Unit acts as a
single point of contact and facilitator
between project proponents, utilities
and regulatory and approval
authorities. The Unit helped secure
six major projects during the year
that will involve investment of
$857 million and will employ 1,432
people. Optus will develop a $350
million purpose-built campus in
North Ryde to accommodate 6,500
existing staff and with capacity for
up to 500 additional staff over the
next three years.
BlueScope Steel will build a new
$130 million steel coating factory at
Erskine Park in Western Sydney. The
plant will employ 75 people and will
further strengthen Western Sydney’s
manufacturing base.
Coles Myer will build a new
NSW National Distribution Centre
at Eastern Creek in Western Sydney.
This will involve an investment
of $100 million and employ
200 people.
Chief Executive Officer (CEO)
Forum on Economic
Development
During the year, a CEOs Forum on
Economic Development was
established to bring together CEOs
of NSW Government agencies in a
whole of government approach to
handling major investment projects
and issues affecting economic
development. The Forum is chaired
by the Premier’s Department and is
convened and serviced by the
Department of State and Regional
Development. Four meetings were
held during the year with proponents
of major projects and relevant
agencies, with all parties benefiting
from the early identification of
possible obstacles to development
of the projects.

London Office
The Department’s office in London
identifies investment opportunities in
the UK and Europe. This year it
targeted over 130 companies
regarding possible investment in
Australia that would allow the
companies to service the domestic,
Asia Pacific and global markets.
Many of these companies were in
the financial services sector and were
targeted to build on the strengths of
Sydney as a regional financial centre.
The Office also co-ordinated and
represented NSW at the London
Business and Skilled Migration Expo.
As the State’s point of contact for
prospective business migrants, the
London Office referred over 100
enquiries to the Division’s Business
Migration Unit.
Case Study
Jetstar Airways
Jetstar Airways, a member of the
Qantas Group, selected Newcastle
Airport to establish the maintenance
facility for their new Airbus A320
aircraft, bringing a $29 million
dollar investment in engineering
infrastructure to the Hunter. This
decision will secure 82 existing jobs
and create an additional 50 highly
skilled positions in aircraft
maintenance engineering, including
a number of apprenticeships.
Business Migration
The Division’s Business Migration
Unit administers a program of State
sponsorship for business migrants
looking to establish businesses in
NSW. During 2004-2005 members of
the Unit visited Hong Kong and
China to promote business migration
to NSW. The Unit also introduced an
electronic newsletter to migration
agents. The year saw increased
interest from migration agents and
prospective migrants. State
sponsorship was granted to 232
applicants for Commonwealth visas.
On average, each business
migrant invests $170,000 and
creates four jobs.
Skilled Migration to Regional
Areas
The Division co-ordinates NSW
involvement in regional skilled
migration programs. Decisions to
support visa applications are made
by regional development boards and
associated entities in the various
regions of NSW to specifically target
skill shortages in their regions. NSW
supported 321 visa applications
under regional migration programs
during 2004-2005.
The decision was made after an
extensive tendering process involving
other maintenance facilities within
Australia, New Zealand, Singapore
and Hong Kong.
27
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Interstate Agreement on
Investment Attraction
In 2001, the NSW and Victorian
Governments established an
Interstate Agreement on Investment
Attraction. In 2003, all remaining
States and Territories, with the
exception of Queensland, joined
the Agreement.
The Agreement limits the potential
of companies to leverage financial
assistance from State and Territory
governments through the relevant
business agencies consulting with
each other when such potential is
thought to exist. With the
Agreement in place for a number
of years, only three occasions arose
during the year where consultation
was warranted.
The expansion of Jetstar forms part
of the Department’s strategy to assist
the development of the aerospace
cluster around Newcastle Airport.
Regional Development and
Investment Divisions worked closely
with Newcastle Airport and Jetstar
to bring these jobs to the Hunter.
Jetstar also received support from
the BHP Trust.
7
Small Business Development Division
The Division supports small
businesses in the state to increase
employment by strengthening their
ability to export and increase sales
income, and grow their profitability.
Assistance is provided to help small
firms to innovate in their business
practices and undertake product
development to satisfy customer
needs in their domestic and overseas
markets. Support is available for
small firms in all industry sectors
across the state and at all stages
of their business development.
Firms facing particular business
opportunities in a changing
environment are assisted in a timely
fashion. During 2004-2005, the
Division maintained its past
emphasis on managerial innovation,
focussing its efforts on small
firm business practice.
In the 2004-2005 year, the
Department contributed to small
business development and growth
of the NSW economy by:
– working with 2,500 small Specific Achievements of the
firms that collectively reported Division
a growth of 23 per cent in Australia’s first Home-based Business
export sales and ten per cent Week was held in May 2005 in
in employment partnership with local councils.
– assisting 191 firms to commence The week featured 24 seminars
international operations or grow attended by nearly 900 home-based
their export sales through 52 business people.
trade missions, market visits and A new program, the Business
independent market visits These Growth program, was developed
companies reported export sales and delivered to the Department’s
of $3.9 million during the Aboriginal business clients. The
missions and visits and projected program provides support to
export sales of $82.1 million over Indigenous clients to address
the following twelve months identified business growth
– delivering over 175,000 services impediments. The program was
to small business people by the delivered to 12 Aboriginal enterprises
Business Advisory Service leading during the year. Five Aboriginal
to almost 4,000 jobs being artists were also supported to exhibit
created across the state their work in Dubai as part of the
Department’s trade mission to the
– developing skills of over 10,000
United Arab Emirates in March 2005.
small business people who
attended more than 200 events, The Department entered into new
workshops and seminars on four-year contracts for the delivery of
contemporary business practices. its business advisory service by 18
“super” centres across the State.

The Small Business Development
Corporation identified a need for
small firm owners to prepare for
management transition. A workshop
on “Maximising the Value of Your
Business” was developed that
addressed preparatory work for
business succession.
The Department launched
Stepping Up, a four-year
$2.6 million mentoring program,
for small business.
A delegation of 30 companies led by
the NSW Minister for Small Business
attended the 20th Joint Economic
Meeting between Guangdong and
NSW in Guangzhou during
December 2004. The Department
also assisted the NSW Legislative
Council to host a delegation of
members of the Californian Senate
in December 2004.
Small Business
Women in Business Program
The Women in Business program,
which celebrated its 10th Anniversary
in 2005, offers a series of Growth
Strategy Workshops, Regional
Programs and Mentor Programs to
the 168,000 women business
operators comprising about 29 per
cent of all business operators in
New South Wales. These programs
aim to give practical strategies to
foster business skills and confidence,
build networks and effectively
manage business growth.
During 2004-2005, four Women in
Business Mentor Programs in Sydney
and one in Newcastle were
completed. Ninety seven women
business owners participated in these
five programs, with 57 per cent
advising that their business turnover
increased and 22 per cent reporting
an increase in staff as a direct result
of the program. During the year a
new program module on “selling
and negotiation” was developed and
added to program materials.
One hundred and seventy seven
women business owners graduated
from five regional programs in the
reporting period. These programs
were conducted in the Southern
Highlands, Northern Rivers, New
England-North West, Shoalhaven
and Mid-North Coast regions.
Twenty one Growth Strategy
Workshops covering a variety of
topics such as IT Solutions for your
Business, Myths of Market Research,
Charge the Right Price and Business
Branding were held in metropolitan
Sydney and across the State in
locations as varied as Wagga Wagga,
Bowral, Dubbo and Tweed Heads.
Eight hundred and forty three
women attended these workshops.
In addition, four workshops were
also held as part of Small Business
September 2004, including a popular
“Women in Export” seminar. These
additional workshops attracted 310
business women.
Home-based Business Services
The Home-based Business Program
has been designed to enhance the
growth of home-based businesses in
NSW by providing tailored
development programs, seminars,
networking opportunities and
information resources. In June 2004,
there were 282,400 home-based
businesses in NSW, representing
almost 64 per cent of all NSW
small businesses.
Australia’s first-ever Home-based
Business Week was held in May 2005
and attracted nearly 900 people.
Twenty-four seminars were held
across NSW, at locations including
Sydney, Wagga Wagga, Lismore,
Bathurst, Newcastle, Gosford, Broken
Hill, Parramatta and Shellharbour.
Feedback from participants indicated
that they gained useful information
from the seminars on topics such as
internet security, choosing the right
technology and web marketing.
In the reporting period, the Home-
based Business Program directly
assisted 689 businesses through
programs and seminars.
29
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Four hundred and thirteen operators
participated in a total of 21 Home-
based Business Action Programs on
business planning, marketing and
better systems in the Southern
Highlands, Penrith, Sutherland,
Lismore, Albury, Central Coast,
Blacktown, Sydney, Lower Hunter,
North Sydney, Batemans Bay and
Armidale areas. Each program
consisted of five workshops and
equipped operators with the
essential tools to strategically plan
their business operations.
Almost 150 home-based business
operators attended three Home-
based Business Seminars which
were held in Sydney, Parramatta
and Newcastle.
During 2004-2005, the Department
updated its electronic business
information resource for home-based
business operators, the “Homebiz
Kit: Grow your business at home”.
It is available online through the
Small Business website
(www.smallbiz.nsw.gov.au/hbb) or
as a CD-ROM, free of charge. Five
thousand CD-ROM copies of the
updated Kit were produced and
distributed throughout the home-
based business sector in NSW.
Business Advisory Services
The Business Advisory Services
provide a one-stop shop for anyone
in NSW who is thinking of starting
a business, or is already in business
for themselves and wants to grow
their business. People can access
information resources, one-on-one
business guidance meetings with
a business adviser, and referrals
including to a range of Departmental
programs and services and
participate in low-cost business
training workshops covering a
variety of topics such as business
planning, marketing and
cashflow management.
The 18 Business Advisory Services
delivered over 175,000 services
(including 93,000 in regional New
South Wales), offered workshops in
areas including marketing, business
planning and financial management,
and reported assisting in the creation
of approximately 4,000 new jobs
during the year. In addition they
provided over 400 training sessions.
Two examples that illustrate how
the Business Advisory Services
worked with new or growing
businesses were:
The Temple of Fitness is a new gym
in Broken Hill which started in
February 2005 with the assistance of
the Far Western Business Advisory
Service. Kate Attard from the Service
helped Ken Lavanda, Luke McCarron
and Cain Radford develop their
business plan which addressed four
key factors: location, feasibility,
market and finance. She also helped
them prepare their financials which
they used to obtain finance from the
bank, as well as assisting them with
ideas to generate business. The gym
has already been so successful that it
is undergoing expansion.
The South-West Sydney Business
Advisory Service based in
Campbelltown has helped Debbie
Corlet set up as a ‘virtual secretary’
in a business called Deb-e-Secretarial.
Ceri Emmet and Gillian Walker from
the Service provided Debbie with
initial information about running a
business along with advice on how
to identify her target market and
contact potential clients. It also
helped her get started on her
business plan, and she has attended
workshops presented at the Service.
According to Debbie, “The business
world can be quite daunting. It’s
good to know that there is support
for small business start-ups.”
During 2004–2005, the Business
Advisory Services underwent a
restructure to streamline their
delivery of services and their
administration. Most have offices in
several locations and also offer
outreach services to more remote
parts of their service areas. They
feature more effective adoption of
new technologies including the
Internet, and they can be contacted
on a dedicated state-wide phone
number, 1300 650 058.
Aboriginal Business
Development
The Department’s experienced team
of Aboriginal Business Development
Managers worked closely with
indigenously-owned business
enterprise clients to identify areas of
business growth to build sustainable
businesses. The Department’s
Indigenous Advisory Service team
provided individual support to over
208 Aboriginal business people.
The Department continued to assist
Indigenous firms to identify their
strengths, business opportunities and
implementation of business
practices. During the year, 27
Indigenous enterprises engaged in a
variety of business activities and were
assisted with a business review
consultancy. Twelve Aboriginal
businesses received financial
assistance to retain expert consulting
advice to help implement business
practices to improve their business
results under the Department’s new
Aboriginal Business Growth Program.
The Department’s Aboriginal
business team assisted four
Aboriginal businesses to access the
Department’s mainstream programs.
These projects are expected to
facilitate total investment of over
three million dollars and resulting
in 36 full time jobs.
Under the Budyari Ngalaya: First
Peoples Partnership Program, 21
business partnership projects
between Aboriginal enterprises and
the private sector were formed.
These projects involved sub-
contracting to Aboriginal building
companies, employment of
Aboriginal people, supply of goods
and services by Aboriginal firms and
mentoring of Aboriginal businesses.
Partnerships were formed in diverse
industry sectors such as construction
and building, tourism, mining,
hospitality and catering, and
telecommunications.
The Department provided financial
assistance to 19 Aboriginal
businesses to participate in trade
shows, including the Australian
Tourism Exchange, Sydney on Sale,
Corroboree 2004, Gift and
Homewares Australia, the Post Bridal
Expo, Good Food and Wine, and the
Ag-Quip Field Day.
To help Aboriginal firms to become
part of industry information flows
and gain market intelligence, the
Department held six industry
networking sessions. These sessions,
for the oyster farming, tourism and
the arts industry participants, were
attended by representatives from
129 Aboriginal enterprises.
Four Aboriginal Business Mentor
Programs were delivered with
a total of 48 Aboriginal
business participants.
The directory of Aboriginal business
and employment programs, Directory
of Business Services for Aboriginal
People, was updated during the year.
The Directory provides information
on a range of New South Wales and
Commonwealth Government
programs and services available to
assist Aboriginal people currently
involved in business or who are
considering starting a business.
Aboriginal Business Development
Managers delivered 13 business
workshops to nearly 300 Aboriginal
business people across the state
including Lismore, Bourke,
Brewarrina, Bega, Newcastle,
Blacktown, Bateman’s Bay, Nowra
and Dubbo. Business topics covered
business planning and marketing,
preparing for trade shows and
financial management.

Western Sydney Business Centre
The Parramatta Business Centre
provides companies in the Greater
Western Sydney region with access
to the full range of Departmental
business development programs.
The Business Centre fully participates
in Departmental events including
Small Business September and
Home-Based Business Week.
The Parramatta Business Centre
supported more than 250 businesses
with access to a range of business
databases. The industry research and
analysis they were able to undertake
helped them to make informed
decisions on business challenges
including developing domestic and
international markets.
The Parramatta Business Centre
includes multi-media meeting and
conference facilities. In the reporting
period, the Department held 233
business seminars, involving 5,948
participants. Seminars focused on
topics such as innovation, lean
manufacturing, marketing, sales and
promotion, e-business, human
resource management, and export
strategy development.
During the year, the Department
worked with a number of existing
and potential exporters. This work
included the development of a series
of practical and hands-on cross-
cultural workshops to assist exporters
to Vietnam, China and Japan. In
addition, seminars on export market
preparation, export market entry
strategies, and specific country
briefings were held to support
participants on the Department’s
international market visit and trade
missions program.
The Greater Western Sydney
Economic Development Board is co-
located with the Parramatta Business
Centre and partners the Department
in initiating, developing and
implementing projects which assist in
jobs growth and investment in the
region. The Department worked in
partnership with the Board on a
number of projects including:
31
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– assisting business owners from Small Business Development
non-English speaking Corporation
backgrounds in the Auburn The Small Business Development
business community to explore Corporation is a policy advisory body
business growth opportunities. to the Minister for Small Business
The program supported business and is constituted under the Small
operators from the Vietnamese, Business Development Corporation
Chinese, Turkish, Arabic and Act 1984. The Corporation was
Korean communities reconstituted in July 2004 for a
– the Western Sydney three year term.
Industry Awards Its membership is drawn from small
– development of local and business and includes the
regional economic profiles Department’s Director General. The
– stimulating jobs growth amongst members of the Corporation are
young people for the Liverpool appointed by the Governor on the
construction industry by linking recommendation of the Minister.
schools with employment The Corporation is chaired by Lynn
agencies and construction firms. Scott, Managing Director and Master
Franchisor of 12 outlets of the
Small Business September 2004 Creative By Design Group. The
The Division managed Small Business Corporation’s membership and
September 2004 which was primary objectives are detailed at
promoted under the theme “Building Appendix 4 – Controlled Entities
Your Future” and featured 316 of this report.
events hosted by 125 partners. Policy development work in 2004-
It aimed to raise the awareness in 2005 included the provision of
the broader New South Wales comment on WorkCover’s “Review of
community of small business Premiums and Implementation of
achievements and contributions, and Grouping” discussion paper and the
to involve small business owners in Occupational Health and Safety
activities to promote networking, Legislation Amendment (Workplace
develop skills, build links to support Fatalities) Bill. The Corporation also
organisations and to gain market considered the skills development
intelligence to help grow their needs of small business, and
business. Business topics covered in business issues impacting on regional
the events addressed issues such as and indigenous based businesses,
technology, financial management, including the information needs of
sales and marketing, and exporting. operators of small firms.
The sponsors of Small Business The 2004-2005 work program of the
September 2004 were Australia Post Corporation included development of
Small Business Awards NSW/ACT, a Communications Strategy and
TAFEPlus, Google and Quicken. Small development of a self-assessment
Business September 2004 partners quiz “Winning Government Tenders”.
were drawn from amongst State and The Corporation also identified the
Commonwealth agencies, local need for skills development in the
government, industry associations, area of building value into a business
chambers of commerce and and to prepare for succession
community organisations. More than planning. The Corporation developed
19,000 small business people a workshop program for small and
attended a workshop or seminar medium businesses “Maximise the
and over 25,000 people attended Value of Your Business” which is
a business expo. being rolled out to the small
business community by the
Government’s Business
Advisory Service.
Small Business Website Business Clusters BioBusiness Program
The small business website The Department launched a new As part of the BioFirst strategy, the
www.smallbiz.nsw.gov.au helps Business Clusters program during the Division delivered the High Growth
people to start, manage and grow year. The program facilitates Bio Business and Non Research
their business. adoption of new ideas and ways of Establishment Costs programs. The
The website was redesigned this conducting business by clusters of High Growth Bio Business program
year to make it more user friendly networked small firms by creating assists established companies while
with intuitive navigation and momentum, productively tackling the Non Research Establishment
improved search capabilities. obstacles and barriers, and opening Costs program helps start-up
Information on the website has up new and successful commercial businesses. Both programs focus on
been categorised into the following opportunities. Benefits expected to closing the gap between basic
areas for easy access: flow from the program include research and development and
employment growth and jobs commercialisation by providing
– Starting in Business
retention, increased investment assistance for obtaining regulatory
– Managing a Business and enhanced domestic and approvals related to the
– Technology in Business export performance. commercialisation of products or
– Exporting The Department worked with several services, market development and
business clusters and networks research and business process
– Government Programs improvement. The Non Research
during the reporting period across a
– Resources that include business range of sectors particularly in the Establishment Costs program also
tools, useful web links, areas of Tourism, Manufacturing, provides additional assistance for
publications and success stories. Food and Wine. intellectual property protection and
More than 511,000 visits were legal costs in agreements or advice
recorded during the reporting period Stepping Up: Helping Small for commercialisation.
and over 3,500 people are registered Business Grow
During the reporting period, 46
to receive the Small Business Update During 2004-2005, the Department companies received $1,037,000 total
newsletter by email. launched the Stepping Up program, offers of assistance from the High
its new four year, $2.6 million Growth Bio Business program and
Business Services mentoring program. The Stepping 49 companies received $959,000
Up program provides owners of total offers of assistance from
New Export Opportunities businesses established for at least the Non Research Establishment
Program (Export Development) two years who are committed to Costs program.
The New Export Opportunities growing their business, with access
A representative sample of clients
Program helps rapidly growing small to a business mentor.
assisted during the year were
businesses to undertake export The Stepping Up program has two surveyed and reported increases in
preparation and develops export key core components, a minimum employment of 22 per cent, turnover
market entry strategies. It provides of ten hours of small group of 20 per cent and export sales of
export ready small business operators workshops on practical and strategic
58 per cent.
assistance to enter overseas markets business issues, and ten hours of
to build profits, jobs and exports. mentoring support from an Innovation Services
During the reporting period, the experienced business person available Individuals and small businesses with
Department’s experienced team of to guide the business through the inventions and innovations were
Business Development Managers challenges of expansion. given the opportunity to test their
worked with 77 companies looking Over 160 participants benefited from ideas and access guidance from
to enter new, or strengthen existing, the Stepping Up Program in the skilled innovation advisors through
export performance. Working closely reporting period. the Department’s Innovation
with individual clients to identify Advisory Centres. Four centres
areas of opportunity and located at Newcastle, Sydney,
improvement, these companies Wollongong and Penrith helped
received assistance of $525,935. inventors and small business
innovators across the State to
develop and commercialise their
ideas. During the year 1,314 free or
subsidised services were provided,
including 28 low cost technical and
market assessments.

Two promotional seminars were
held by the Illawarra and Sydney
Innovation Advisory Centres,
attracting 88 participants.
The contracts for hosting the
Innovation Advisory Centres were
renewed for the Sydney, Hunter and
Illawarra Centres, and a new Western Commonwealth funding attracted
Sydney Centre in Penrith was
established in 2004-2005.
Innovators also used the
Government-supported on-line
innovation advisory service
www.ausinvent.com for information
on advisory services, self-assessment attendees from the transport,
software, a virtual exhibition,
relevant links and news and events.
This online service attracted 38,918
user sessions during the year.
Innovation Clusters
In 2004-2005, Innovation Clusters
placed greater emphasis on
dissemination of experiences and
success stories among progressive
NSW firms, in order to focus on the
implementation of modern
technology and management
practices in targeted industry sectors.
Four Innovation Clusters based in
Western Sydney, Central Coast and
Newcastle, provided continuous
learning forums for 576 business
participants, through 20 seminars
and site visits, on a wide range of
topics chosen by the members.
Three of these groups were specific
to the Information and
Communications Technology,
Building and Construction, and
Aquaculture sectors.
Six issues of the Technology and
Innovation newsletter were
published, reaching over 1,000
readers per issue. This newsletter is
for Innovation Cluster members to be
kept abreast of the activities of these
groups, of their forthcoming
meetings, and of opportunities to
avail themselves of upcoming events
and programs.
Technology Diffusion
Support has been given by the
Department to the Welding
Technology Institute of Australia for
its three year technology diffusion
program in NSW from September
2003, to supplement the
by the Institute. In 2004-2005, the
program has resulted in 494
telephone and 234 onsite technical
services to NSW industry, as well as
46 technology demonstration
awareness events involving 985
construction, mining, pipeline,
defence, water and pressure
equipment sectors.
Sustainable Business
Assistance for businesses to adopt
environmentally sustainable practices
continued, with the Profits from
Cleaner Production Self-Help Tool for
Small Business and case studies
available from the Department’s
Small Business website.
Trade Services
The New Export Opportunities
program offers a number of activities
and services to help small to medium
enterprises access new overseas
markets and expand their exports.
Trade Missions and
Market Visits
The Division organised or supported
trade missions and market visits to
help firms investigate and enter new
overseas markets or grow existing
markets. Participants are able to
develop firsthand knowledge of
customer needs and to make contact
with potential agents, distributors
and end-users.
One hundred and ninety one
companies took part in 17 group
trade missions and market visits and
35 individual market visits organised
by the Department.
33
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Markets visited during the reporting
period included China, Fiji, Hong
Kong, India, Japan, Malaysia,
New Caledonia, New Zealand,
Singapore, Taiwan, and the
United Arab Emirates.
The participating companies reported
sales of $3.9 million during the
missions and visits, and have
projected that their participation
will lead directly to a further
$82.1 million in new export sales
in the coming twelve months.
Regional Export Advisers
Network
Specialist export advisers are located
in Bathurst, Coffs Harbour, Nowra,
Tamworth, Parramatta, Gosford and
Wagga Wagga to give practical,
hands-on advice to companies
which are new to exporting or are
expanding their export activities
into new markets.
During the reporting period, the
advisers maintained an active
portfolio of 765 companies under
management. These companies
achieved new export sales of
$2.9 million in 2004-2005.
The export advisers located outside
Sydney also deliver Austrade’s
TradeStart Program in their regions,
with 66 companies enrolled into the
program by the Export Advisers in
the reporting period.
In addition, the Department funded
the Hunter Export Centre in
Newcastle to deliver export advice
and assistance to new and existing
exporters in the region.
Service Exports Unit
This specialist unit helps promote the
export of services and expertise by
organisations in the private sector
and by NSW Government agencies.
During the reporting period, the
Service Exports Unit conducted seven
export seminars and workshops
attended by 151 firms from the
education, sporting, environmental
and design services sectors.
In addition, the Unit conducted
11 seminars and briefings attended
by 401 firms to assist them pursue
procurement opportunities with
international development agencies
including AusAid, the Asian
Development Bank, the World Bank
and the United Nations.
NSW Exporters Network
The NSW Exporters Network is a
web-based club, located at
www.export.nsw.gov.au, which
assists exporters throughout NSW
to share information and leads, and
to communicate with each other
and the Department.
The network also holds regular
meetings at which members are able
to discuss trade topics, share
experiences and market knowledge,
and learn from the advice of
specialists on subjects such as market
entry strategies, export finance, legal
issues, insurance and transport.
During 2004-2005, membership of
the Exporters Network increased by
54 per cent to 612 members.
International Services
The Division delivers a range of
services and initiatives to
Government and business to
maximise business outcomes from
high level visits to and from NSW.
It is also responsible for managing
the NSW Government’s international
relationships, including Sister-State
Relationships and Memoranda of
Understanding with foreign
governments and agencies.
NSW has Sister-State Relationships
with Guangdong Province (China),
Tokyo (Japan), Seoul (Korea), Jakarta
(Indonesia), and California (USA).
Memoranda of Understanding have
been signed with North Rhine-
Westphalia (Germany), Colorado
(USA), Wales (UK), Lebanon and
Kelantan (Malaysia).
Significant activities during 2004-
2005 included:
– Guangdong – the 20th Joint
Economic Meeting (JEM)
between Guangdong and NSW
took place in Guangzhou during
December 2004. A delegation of
30 companies led by the NSW
Minister for Small Business
attended the JEM. The
companies represented offered
a range of products and services,
including architectural services,
education and training, building
technology, tourism, and
waste management
– California – Under the auspices
of Sister State Relationship with
California, the NSW Legislative
Council hosted a delegation of
members of the Californian
Senate in December 2004. The
Division assisted with program
arrangements for the Delegation
in Sydney and Newcastle.
Incoming Missions
During the reporting period the
Division hosted 22 inbound visitors
and delegations from a number of
countries including China, UAE,
India, Italy, USA, South Africa
and Thailand.
Business Briefings
One of the major functions of the
International Services section is the
preparation of business briefings
for ministerial meetings with high
level international visitors. In 2004-
2005, 100 briefings involving 50
countries were prepared.
Trade and Investment –
China/Hong Kong
The Trade and Investment Adviser,
China/Hong Kong, delivered six
workshops and seminars attended by
297 firms interested in exporting to
these markets. In addition, a seminar
on “Managing Business Risks in
China” was held with presentations
by experts from China’s International
Economic and Trade Arbitration
Commission with over 60 NSW
businesspeople attending.
Four meetings of the Department’s
China Working Group were
convened during the reporting
period to co-ordinate and support a
range of intra-departmental, China-
related programs and activities.
New South Wales-Asia Business
Advisory Council
The New South Wales-Asia Business
Advisory Council plays a vital role in
the Government’s Multicultural
Business Development Strategy.
The Division provides secretariat
support to the Council, which
comprises 11 members and is
chaired by the Parliamentary
Secretary assisting the Premier on
Trade and Investment and assisting
the Minister for State Development.
The Council met four times during
the year and hosted three business
networking functions, including the
2005 NSW-Asia Business Lunch at
Government House.

International Offices
Tokyo
With the expiry of the Australian
Business Centre’s lease in Tokyo, the
Department’s Tokyo Representative
relocated to new premises in
October 2004.
The Representative assisted 24
companies interested in exporting
their goods and services to Japan.
Of these, 15 were new to the
Japanese market.
The Representative also co-ordinated
a visit to Japan by a group of
automotive transmission companies
in December 2004 and managed
the participation by eight NSW
companies in “Foodex”, the 30th
International Food and Beverage
Exhibition in Tokyo in March 2005.
Case Study
Norco
Norco is a 109 year old dairy co-
operative located on the far north
coast of NSW with 237 farmer
shareholders. The organisation is
one of the largest employers in the
region, with over 250 full-time and
part-time staff.
Norco’s main interests lie with its ice
cream business unit. This unit has
developed into one the largest
manufacturers of ice cream in
Australia and, with the strategic and
practical assistance of the
Department of State and Regional
Development, the company is
extending its ice cream business into
key export markets.
“Our prospects for continued growth
were being threatened by product
saturation in the domestic market
and so we embarked on an exports
strategy, targeting Northern Asia. If
successful, this would allow peak
production year-round by taking
advantage of the opposing peak
season in each hemisphere,” says
The Tokyo Representative played a
key support role for seven major
events during “Sydney Week” at
the Aichi World Expo 2005.
London
The NSW Government Trade and
Investment Office in London assisted
61 NSW companies looking to
export to the European Union
market. Of these, 26 were new
exporters to this market.
The Office worked closely with
Austrade in assisting several
companies to participate in a variety
of trade exhibitions, including the
Speciality and Fine Food Fair in
London in September 2004, the
Harvey Nichols ‘Taste Australia’
promotion in September 2004, and
the Spring Gift Fair held in
Birmingham in 2005.
Brian Tarlinton, manager contract
manufacturing and business
development, in Norco’s ice
cream business unit.
“The DSRD trade missions program
has been a vital tool in the process
of first investigating the potential of
a target market and then developing
the local relationships needed to
establish business operations”
he said.
In just two years, Norco has
participated in six trade missions
with the Department, visiting Taiwan,
Japan (where it has established a
contract manufacturing partnership),
South Korea, Hong Kong and
southern China (following which,
it established a contract to
manufacture premium ice cream
for a Hong Kong company), Dubai
(which resulted in it appointing a
consolidated distributor for its
branded ice cream products) and
northern China.
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ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
In collaboration with the Australian
High Commission, the London
Office also promoted 13 NSW
companies from the food and
beverage sector at a specially
convened event in Australia House
in May 2005.
Norco is on track to build its export
business, with the organisation
currently supplying its products into
Malaysia, Papua New Guinea,
Germany, Hong Kong, Southern
China, and Japan. It is in discussions
with companies in northern China,
the Philippines and Taiwan, with
strong prospects for business
throughout the Middle East.
“The trade missions program has
been critical to our export strategy,
particularly in Asia where ‘cold
calling’ is useless and you need the
introductions of a respected
organization such as DSRD,” says
Brian Tarlinton. As a result of this
program, the organization expects
export sales to grow to at least 20
per cent of total turnover within
the next five years.
8
Regional Development Division
The Regional Development Division
delivers programs and services
designed to recruit new business
investment, help businesses grow,
assist communities to build capacity
to attract investment and jobs and to
raise the profile of regional New
South Wales as a business location.
A number of regional communities
have experienced difficult times due
to drought and major industry
restructuring. At the same time,
other areas are showing significant
economic growth, which is driven by
new or expanding businesses.
Program and strategic responses are
delivered to rejuvenate or build on
growth prospects which translate
into investment and sustainable jobs
for regional communities.
To assist business development in
regional New South Wales, the focus
is on harnessing business
opportunities and/or developing
solutions to overcome impediments
to an individual business project
proceeding. The Department’s
programs and services provide a
“tool box” from which business level
solutions can be developed.
For community and regional
development, priority is given to
building the capacity of regional
local government and business
organisations to deal with existing
and prospective business.
Investment and Industry
Restructuring Initiatives
Through business investment
programs, the Department looks
to secure new investment from
businesses contemplating
establishment or expansion in
regional New South Wales. The
Regional Business Development
Scheme, Hunter Advantage Fund
and Illawarra Advantage Fund are
regional programs designed to
secure new investment.
In addition, the Department works
with regional communities that have
been adversely impacted by major
business closures due to structural
adjustment. Continued industry
restructuring in vulnerable sectors
such as meat processing, textiles,
clothing and footwear and
automotive components has a
disproportionate negative impact on
regional towns. These restructuring
pressures have been exacerbated by
severe and prolonged drought in
much of regional New South Wales.
Industry restructuring initiatives
through the Regional Economic
Transition Scheme and the Business
Drought Program aim to attract new
investment and sustainable jobs in
regions impacted by structural
adjustment and/or drought.
This year, the Department’s business
investment programs and services
facilitated 110 investment projects in
regional NSW. These projects
represented capital investment of
$773 million and are expected to
create or retain 3,096 jobs over the
life of the projects.

Regional Business Development
Scheme
The Regional Business Development
Scheme encourages regional growth
by attracting firms from domestic
and offshore locations to start-up,
expand in or relocate to regional
New South Wales. Assistance
through the Regional Business
Development Scheme is provided
by a range of facilitation services.
Examples of projects assisted in
2004-2005 include:
– relocation and establishment of
a leading edge greenhouse for
the production of hydroponic
tomatoes in Guyra. The project
was undertaken by the Costa
Group of Companies and
represents an investment of
$14.4 million and almost 50 jobs
in its first stage and has the
potential to make Guyra a leader
in horticultural development
throughout the region. (See Case
Study at the end of this section.)Examples of projects assisted under
– Interlloy Pty Ltd establishment of the Fund in 2004-2005 include:
a facility for the manufacture of
specialist steel products based
at the Albury Airport estate
with an investment of $2 million
and 16 jobs.
Hunter Advantage Fund
The Hunter Advantage Fund is
designed to attract new investment
and jobs to the Lower Hunter region
including the Newcastle, Lake
Macquarie, Port Stephens, Maitland
and Cessnock local government areas
and encourages diversification of
these local economies.
The Fund covers both new projects
and expansion of existing businesses.
Each project is considered on its
merits and assistance is linked to
achievements of employment and
capital investment milestones.
Examples of projects supported
under the Fund in 2004-2005
include:
– relocation and expansion of an
electrical supply and
infrastructure business by
Powerserve at Thornton with
investment of $4.03 million
and creation of 36 jobs
– opening by Invitrogen Aust Pty
Ltd of its $3.4 million world
class biotechnology production
laboratory, creating three new
jobs. The laboratory produces
bovine serum for use in medical
research and sources its
materials from NSW
regional abattoirs.
Illawarra Advantage Fund
The Illawarra Advantage Fund helps
offset potential cost barriers for
eligible businesses considering
establishing or expanding into
the Illawarra region.
– expansion of Rynarp’s frozen
and dry goods facility at Nowra
which represents an investment
of $910,000 and an estimated
13 new jobs over five years
– support for the expansion of the
Illawarra Regional Airport at
Albion Park, representing an
investment of $2.1 million and
the creation of up to ten jobs
– assistance to Sea-slip
Manufacturing Pty Ltd for the
establishment of a marine
manufacturing facility at
Keirville in the Illawarra with
an investment of $2.6 million
and 22 jobs.
37
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Regional Economic Transition
Scheme
This Scheme addresses the adverse
impacts of structural adjustment in
regional communities by assisting
to develop more diverse regional
economies and attract new
investment and sustainable jobs.
There are 22 locations covered by
the Scheme and examples of projects
undertaken in 2004-2005 include:
– relocation from Sydney to
Goulburn of the Police
Department Employees’ Credit
Union Head Office and IT
functions. Investment of $1.7
million and up to 18 new jobs
– construction of Central West
Livestock Exchange near Forbes
to replace the existing saleyard
facility. Investment of $7.6
million with the creation of
eight new jobs and retention
of four jobs.
Industry Restructuring
Business Initiatives
Meat Industry Restructuring
Program
The program concluded its five year
term in 2004-2005. This initiative
was designed to assist the meat
processing industry cope with
structural change. Abattoirs are
major employers in many regional
towns and the aim was to develop a
more sustainable meat processing
sector and ease the impact of
rationalisation on local economies.
The key components of the program
were strategic business reviews,
value-adding investment, and
improving Occupational Health and
Safety performance. During the year,
the program emphasised progression
from strategic business reviews to
more value-adding projects in
addition to innovative Occupational
Health and Safety projects to help
reduce workplace injuries, including:
– value-added projects with a
total investment value of
$28.2 million were assisted,
resulting in the generation of
an estimated 600 equivalent
full-time jobs. Two projects
developed systems for producing
retail-ready packaging for
major supermarkets
– Occupational Health and Safety
(OH&S) performance
improvement projects amounted
to $3.3 million in investment
by abattoirs, including a robotic
saw system that reduces risk of
injury to workers
– The National Meat Industry
Training Council (MINTRAC) was
commissioned to deliver training
in the fields of meat inspection,
professional development and
OH&S. Three hundred and ninety
eight meat industry employees
subsequently participated in
this training to overcome a
shortage of workers, particularly
in skilled areas.
Business Drought Assistance
Program
The Business Drought Assistance
Program has two components.
It includes payroll tax relief for
regional firms to retain skilled
workers for the duration of the
drought, and assistance to small-
medium enterprises impacted by
drought to access independent credit
management expertise or to help
diversify their operations.
Activity included:
– under the Small Business
Drought Assistance Program,
124 offers of assistance were
made to businesses in the three
financial years to 2004-2005
– since its inception, the Business
Drought Assistance Program has
made 64 offers of payroll tax
assistance and the program has
helped retain over 1,200 jobs.
Business Growth
An important focus for activities
in regional New South Wales, is
the delivery of programs and
services which enhance the
competitiveness and growth of
existing enterprises. The regional
office network delivers the full suite
of small business programs
administered by the Department.
In addition, the Department delivers
specific programs to assist the
growth of regional enterprises.
These include the New Market
Expansion Program, Travelling Experts
Program and a range of business
seminars and workshops.
In 2004-2005, 266 regional
businesses were assisted by the
Department and 116 business
workshops were conducted and
attended by 4,083 people.
New Market Expansion Program
This program helps companies
pursue new markets beyond their
normal horizons by providing
assistance for targeted marketing of
new opportunities. During the year,
127 companies were assisted to
enter new markets and the program
helped generate an estimated 15 per
cent increase in average sales
turnover for firms, compared to a
year ago. Examples of projects in
2004-2005 include:
– a targeted marketing campaign
for Dalbroi Family Wines Pty Ltd,
located in the Riverina to establish
its brand in new overseas markets
of the USA, United Kingdom,
European Union, China, and
other parts of Asia
– a new market entry strategy for
value added macadamia products
of St Helena-based Brookfarm Pty
Ltd. The strategy exposed the
Company’s product range to
targeted distributors as well as
the gourmet food retail and
service sectors. The assistance has
helped the company to generate
sales leads and has provided
important market information
and feedback
– a Showcase of the gourmet food
products from Bellata Gold, a
family owned company from
Bellata in North West NSW. The
Company reported up to 40 per
cent extra export sales and is
expected to sell up to $500,000
worth of extra products in the
next two years as a direct result
of this event.
The program assisted regional firms
to showcase their capabilities at
three key trade shows. This included
34 regional firms being showcased
at the Wine Australia event in Sydney
in October 2004, 12 regional firms
at the Fine Food Fair in Melbourne in
September 2004 and six regional
firms at the Avalon Air Show in
March 2005.
“Travelling Experts” Seminars
These seminars provide regional
businesses with access to expert
speakers on current business issues.
This year, 16 travelling expert
seminars were conducted with
attendance of almost 950 people
across regional New South Wales.
Examples of topics included regional
sustainability, marketing and
technology, management skills
development, and business
development skills for young people.
Business Seminars
During the year, 116 workshops with
a total of 4,083 participants were
conducted on topics to assist
regional businesses to grow and
become more competitive.
Regional and Community
Economic Development
The Department offers a range
of programs designed to help
communities build economic capacity
to harness business opportunities
and to be better placed to respond
to business needs. Programs
delivered at both the regional
and local level also provide an
important base for the Department
to engage with key partners such
as local government, business
associations and regional
development organisations to
leverage business opportunities.

The Main Street/Small Towns and
Towns and Villages Futures
Programs, are the main tools for
assisting community economic
development. During the year,
74 regional communities were
assisted and the programs helped
communities to create 81 jobs and
to leverage $5.1 million in project
funds. In addition, 77 community
economic development workshops
were conducted with 2,751 people
attending from across regional
New South Wales.
Main Street/Small Towns
Program
The Main Street/Small Towns
Program helps communities with a
population over 1,500 to take a
strategic and proactive approach
to their economic development.
During the year, 47 projects were
offered assistance in 42 different
regional communities towards
activities, including:
– the inaugural Inverell-On-Display
expo designed to showcase
Inverell’s industry, agriculture,
retail and commercial products.
Inverell Shire Council was offered
funding toward project
management, promotion and
marketing of the event. The
initiative targeted businesses,
visitors and industry people
interested in moving to the area
– a web based network
development tool for Gloucester
Shire Council to link businesses
and provide them with a
communication portal and
marketing avenue. This initiative
will create opportunities for joint
purchasing, marketing, project
capability and product sale
cooperation. The project will
assist the growth of local
clusters of tourism operators,
agricultural producers, food
preparation businesses,
engineering firms and landscape
and garden suppliers
39
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– assistance towards a business The Conference attracted over 150
development coordinator for the community, business and local
Northern Illawarra area to assist government representatives. The
the business community in conference featured leading experts
seizing economic opportunities and practitioners in regional
from the re-opening of Lawrence community economic development.
Hargrave Drive. Local regional fora were also held
in the Riverina/Murray,
Towns and Villages Futures
Program Southeast/Illawarra, Northern and
Hunter/Central Coast regions. In
The aim of this program is to assist
total, 300 community representatives
economic growth and job creation
attended these fora.
in regional communities with a
population of 2,500 or less. Help is Developing Regional Resources
available for the development of new Program
products or services, locating new This program provides support
markets for existing products and for local or regional organisations,
services, and tourism development including development agencies
activities. During the year, 32 projects
and alliances of firms, to
were offered assistance towards investigate economic opportunities
activities including: and pursue innovative approaches
– marketing and promotion of the to economic development.
2005 Barmedman Tractor Pull The program aims to develop best
– the conducting of Batlow practice, innovative methods,
2005 Apple Blossom Festival and techniques and approaches in the
other events aimed at increasing field of local and regional
the profile of the town, local development which strengthen
products (fresh fruit and plant regional economies through value-
adding resources and diversifying
nurseries) and natural attractions
(pristine mountain environment). from the existing economic base.
Funding was to Tumut Shire Examples of projects assisted in
Council for employment of 2004-2005 include:
an events coordinator for – support to employ a project
Batlow and toward event coordinator and develop a
marketing materials business plan for the
– the development of a business establishment of a Visual Arts
and marketing plan to Network in the Northern Rivers.
commercialise Coramba Sports There are 348 members in the
Ground and funding to promote Visual Arts Network
the January 2005 Rugby – assistance to the Native
League’s 7s Tournament at Fish Growers Co-operative to
this sports ground. undertake a feasibility study
Community Economic and business plan for
Development Conference redevelopment of fish processing
facilities in the Gloucester area
The Department hosts a regular State
of the Hunter region.
Community Economic Development
Conference to share knowledge and
to explore the latest developments in
promoting sustainable economic
growth in regional communities.
In 2004, the Community Economic
Development Conference was held in
Gosford from 17–19 October 2004.
Regional Development Boards
and Regional Development
Board Innovation Program
The Department supports a network
of 13 Regional Development Boards
across the State. These Boards
provide a strategic framework for
economic growth and play a critical
role in local collaborative efforts to
attract business investment that will
deliver sustainable long-term
employment and regional prosperity.
Through the Regional Development
Board Innovation Program, Regional
Development Boards are assisted to
pursue economic development
opportunities relevant to their
respective regions.
During the year, 33 board
projects were assisted. Examples
of projects include:
– the Central West Regional
Development Board managed
a project to facilitate the
development of an
engineering and trade
related industry network
– the Murray Regional
Development Board received
assistance for a broadband
demand aggregation project
which focussed on finding
ways of getting state of the
art technology to smaller centres
in the region
– the Far Western Regional
Development Board is piloting an
initiative to engage young
people and their business
community in creating regionally
designed and sustainable
business and employment
opportunities for young people.
Regional Development
Advisory Council
The NSW Regional Development
Advisory Council was established
to provide advice to the Minister
for Regional Development on
regional development issues in
New South Wales.
The Council brings together the
Chairs of the State’s thirteen
Regional Development Boards.
The advisory role of the Council
covers matters that relate to:
– promoting economic and
employment growth in regional
New South Wales
– assisting regional communities to
capitalise on their regional
strengths, to broaden and
reposition the industry base of
regions and develop new
products and new markets
– developing regional or local
solutions for regional or local
business development problems
– identifying opportunities to fill
gaps left by the market system.
Promoting Regional
New South Wales
The Department runs a series of
initiatives to promote regional
New South Wales as a viable
destination for business activities.
Some key initiatives during
2004-2005 included:
– conducted the Central West Film
Tour in November 2004 which
took 13 film industry
representatives to the Central
West to showcase potential
filming locations for film and
television. This has helped secure
a NSW production spend of
$564,622, regional spend of
almost $22,000 and four
temporary regional jobs
– conducted the Building Regional
Towns Tour to Scone, Forbes and
Merriwa to showcase potential
residential and commercial
property development
opportunities to property
developers. This has resulted
in $600,000 in sales to date
– held the inaugural NSW Regional
Food Tour in May 2005, which
took 16 food buyers and
industry experts to the
Hume/Murray, Riverina and
Central West regions to
showcase regional food
capabilities and to match
potential business opportunities
with regional producers. The
Food Tour provided 144
potential business opportunities
with sales expected to reach
$275,000 six months after
the tour
– sponsorship of the inaugural
Country Week Expo in October
2004 to showcase to
Sydneysiders the opportunities
and benefits of relocation to
regional areas. The Expo
attracted 7,500 visitors
– developed marketing collateral
for the Regional Distribution
Centres Attraction Strategy to
help regional centres promote
their natural advantages as
warehousing and distribution
hubs. The collateral for the
Goulburn Logistics and
Distribution Centre Attraction
Strategy was released in
February 2005.
Regional Development Board Websites 41

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Regional Development Board Website

1 Capital Region Development Council www.capitalregion.org.au

(joint initiative of the NSW and ACT Governments)
2 Business Central Coast www.businesscc.com.au
3 Central Western Regional Development Board www.centralwest.com
4 Far Western Regional Development Board www.farwesterndevelopment.com.au
5 Hunter Economic Development Corporation www.hunterregion.com
6 Illawarra Regional Development Board www.illawarrainvest.com
7 Mid North Coast Regional Development Board www.betterbusiness.nsw.gov.au
8 Murray Regional Development Board www.mrdb.nsw.gov.au
9 New England-North West Regional Development Board www.nio.com.au
10 Northern Rivers Regional Development Board www.investnorthernrivers.com.au
11 Orana Regional Development Board www.ordb.com.au
12 Riverina Regional Development Board www.rrdb.com.au
13 Greater Western Sydney Economic Development Board www.gws.org.au

Case Study
Costa’s Pty Ltd t/a Costa Group of Companies – Guyra, NSW Northern Tablelands
The Costa Group of Companies are
investing a total of $26 million
($14.4 million – stage one) in Guyra
to grow truss tomatoes in an all-
glass building which will be the
largest and most technologically
advanced glasshouse in Australia.
The ten hectare greenhouse will
grow truss tomatoes to be marketed
throughout Australia by the Top of
the Range Tomatoes network under
the ‘Blush’ brand.
Guyra, with a population of 2,200,
will benefit greatly from the
investment. The first stage of the
project will provide employment for
about 50 staff and the next stage
will bring total employment up to
120 staff. The project also brings
considerable advantages in
secondary employment throughout
the town and the potential for
support industries.
The Costa Group, Australia’s largest Truss tomatoes (Tomatoes on the
fresh produce company based in Vine) have established themselves in
Victoria, chose Guyra for its cool the European and US markets in the
climate and high amount of daylight relatively very short period of seven
to reduce production times, to ten years. The initial response to
glasshouse management problems truss tomatoes in Australia indicates
and risk of crop disease. that the same level of up-take will
Another major factor was the occur here as has happen in Europe
support and encouragement of and the US.
Guyra Council and the community in The Department is providing support
bringing the project to fruition. ‘Top for the project through its Regional
of the Range’ tomatoes have the Business Development Scheme.
potential to make Guyra a leader
in horticultural development.
The project is moving ahead rapidly
with the first five hectares planted
with 155,000 tomato plants in June
2005. More than 2.5 million kilos of
tomatoes will be shipped from the
tomato farm within the first year of
operation. Presently the tomatoes
will be sold to the major
supermarket chains within Australia.
9
Policy and Resources Division
The Department’s Policy and
Resources Division develops strategic
policy directions and advice for
promoting economic development
in metropolitan and regional
New South Wales.
The Division’s responsibilities include:
– supporting the NSW
Government by providing policy
advice on strategic approaches
and initiatives to promote the
development of NSW industries,
regions and small business
– providing information to
industry and government on
the State’s economy and its
competitive strength as an
investment location
– informing the NSW Government
about the impact of major
investment projects on the
economy, and supports other
divisions of the Department
with economic advice and
investment analysis
– benchmarking the performance
of the NSW economy, and
advises on developments in its
business climate
– providing corporate services
to the Department.
The Division’s corporate service
responsibilities include financial
management, human resources and
organisational development,
information technology, legal
counsel, business governance
and property administration.
Policy Unit
Policy Advice
The Division’s Policy Unit is
responsible for the provision of
high level policy advice to the
Department’s two Ministers on
economic development, trade,
infrastructure, skills shortages,
technology and regional
development issues that impact on
New South Wales. Its key role is to
develop strategic policy directions to
provide a cost-effective and business
friendly environment for doing
business and investing in the State.
The Unit ensures that economic and
regional development issues are
incorporated into government
decision making at the local, State,
and Federal Government level. The
Policy Unit works closely with other
NSW Government agencies, Federal,
State and Territory Governments, as
well as Local Government and a
range of business and industry
groups to ensure NSW business
interests are promoted.
During 2004-2005, the Policy Unit
contributed to policy development
on a number of significant issues,
being particularly active in the areas
of trade, regional aviation and
regional development and planning.
During the year, the Unit:
– worked closely with the
Commonwealth and State and
Territory Governments on trade
initiatives to enhance market
access for NSW exporters in
overseas markets. This included
contribution to Australia’s
position on Free Trade
Agreement negotiations with the
United States, Singapore,
Thailand, Malaysia, Asean and
the United Arab Emirates

– completed a number of
submissions to State and
Commonwealth reviews
including the Review of the
Export Market Development
Grant (EMDG) Scheme
– coordinated Department’s
hosting of the State and Territory
Industry CEO Meeting in Sydney
and several industry briefings on
Free Trade Agreements
– participated in a range of high
level interdepartmental and
intergovernmental working
groups including the NSW
Government Interagency
Working Group on Mobile
Telecommunications,
Infrastructure, the
Manufacturing Consultative
Councils, the National
Investment Research Group and
the Best Industrial Relations
for NSW Interdepartmental
Steering Committee
– the Working Group on the
Review of the Retail Leases Act
1994 consulted on a wide range
of matters connected with the
legislative review of the Act.
This resulted in a considerable
number of recommendations
being made on changes to
the Act
– the Division also shepherded
through the two amendments
made to the Act as a result of
the National Competition Policy
Review that had been conducted
prior to the legislative review.
43
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
As part of its core activities, the Economic Statistics
Policy Unit continued to provide: The Economic Statistics Section is
– accurate and timely policy advice responsible for providing advice and
for the Department’s two statistics on investment, employment
Ministers on economic and and trade to the Department’s two
regional development issues Ministers, the Department, and other
– secretariat support for Ministerial NSW Government agencies.
attendance at Commonwealth The Section also provides a range of
and State meetings of Industry information to the public, primarily
Ministers and Trade Ministers through publications and the
Department’s websites. This
– timely management of
Freedom of Information information attests to the
requests, Cabinet Minute advantages of Sydney and
responses and legislative issues. New South Wales as a business
and investment location, compared
Economic Evaluation and with other locations in Australia
and overseas.
Statistics Unit
The New South Wales
Economic Evaluation Competitiveness Report 2005,
an important promotional report,
The Economic Evaluation Section
detailing the State’s competitive
provides financial and economic
analysis of business and development advantages was completed
during the reporting period. An
projects. These assessments assist
decision making processes within the updated version of the Report is
also published on the
Department of State and Regional
Development and within other State Department’s website.
government departments.
Finance and Administrative
During the reporting period, 78 Overview
detailed evaluations were prepared. The Finance Unit is responsible
The majority of these assessed the for the management of the
financial viability and economic Department’s financial and
impact of proposed projects. budgetary processes, including:
They provide an assessment of a
– financial and budgetary
project’s potential to generate
management
employment and growth in the
State, and where relevant, within – co-ordination and review of
specific regions of NSW. financial statements and
reporting requirements
Projects covered included
– strategic financial advice
manufacturing, agriculture, finance
and business services, infrastructure, – co-ordination of the internal
mining, films, major conferences audit function across the
and special events. Department
The Section also prepares – management of the Service
background briefings on issues Partnership agreement with
affecting business and infrastructure the Department’s contracted
in NSW, such as electricity financial services provider.
generation, and taxation.
The Unit also has responsibility for
the Department’s property and
administrative requirements,
including:
– strategic accommodation advice
– property management
– lease co-ordination and
negotiation
– project assistance
– liaison with the Department’s
contracted service provider.
During the year, the Property Branch
relocated the Central Coast Regional
office from the Gosford CBD to the
redeveloped Mount Penang precincts
at Kariong. This relocation also
realised an annual rental saving
of $46,000.
New leases were negotiated at three
existing offices and three lease
options were exercised.
The Tokyo office was relocated from
expensive office space to a serviced
office environment realising an
annual saving of approximately
$200,000.
A long term lease over the
Governments previous
accommodation (King William Street,
London) was surrendered.
In accordance with Premier’s
Memorandum 2004-4 Greenhouse
Performance of Government Office
Buildings and Rental Properties,
the Property Branch achieved the
first milestone by achieving a 3.5
star Australian Building
Greenhouse rating at the
Grosvenor Place premises.
Business Governance Unit
The Business Governance Unit
develops and manages the
Department’s governance framework
in alignment with the Department’s
corporate vision and purpose.
The Unit provides support to
the Department’s Audit and
Review Committee.
Major achievements during the
reporting year included the review
and publication of the following
policies and guidelines:
– The Privacy Management Plan
and Privacy and Spam What do I
have to do – Guidelines for Staff
– Guidelines for Engaging and
Using Consultants and
Contractors
– The Protected Disclosures Policy
and Procedures
– Use of Communication Devices A
Do’s and Don’ts Guide
– The Protocol for Acceptable
use of the Internet and
Electronic Mail
– The Communication Devices
Policy and Guidelines for
the Department
– The Risk Management Plan
and Policy.
Privacy and Personal
Information
During the year, the Department
completed its bi-annual privacy
compliance review. The review
included an audit of processes
used by the Department to collect,
store, use and dispose of personal
information. The Department’s
Privacy Resource Officers undertook
training to enable them to
implement future privacy
management initiatives at
local levels.
The Department completed the
revision of its privacy management
plan which is made available to all
staff internally via the Department’s
intranet site and publicly through
its main web site
www.business.nsw.gov.au.
In the coming year, the Department
will continue to provide ongoing
training for staff at two levels:
– introductory sessions for
new staff
– refresher sessions for existing
staff including the additional
requirements under the Health
Records Privacy Information
Act 2002.
The Department continued to ensure
the protection of privacy of
individuals and was not required
to undertake any internal reviews
of the conduct of any officers
concerning privacy matters, during
the reporting year.
Human Resources
The Human Resources Unit is
responsible for developing human
resources policies for NSW
Department of State and Regional
Development staff, as well as
providing support and guidance to
managers and staff on all human
resource issues.
Human resource issues cover
conditions of employment, training,
equity, occupational health and
safety, workers compensation and
rehabilitation, grievance resolution,
organisational change and
performance management, job
evaluation and establishment.
The unit provides personnel and
payroll services to all staff through
the Department’s outsourced
provider, the Central Corporate
Services Unit (CCSU).
More specific details of human
resource activities and achievements
for the year are listed separately in
the appendices.
Major achievements:
– developed and implemented a
six module Management
Development Program for senior
managers. Modules include
Ethics, Values and Accountability,
People Management, Effective
Workplace Management
and Strategic Planning.
Participants have rated the
program very highly
– successfully developed and
implemented a Voluntary
Redundancy program across
the Department
– supported the development of a
‘Young Professionals’ group in
the Department

– managed ‘Health Week’ in
conjunction with the PSA and
OH&S Committee. Activities
included seminars on Workplace
Bullying, Caring for your Eyes,
Men’s Health and Exercise and
You. Activities were replicated in
regional offices, including the
inaugural DSRD Fun Run
– sponsored a flu vaccination
program for all staff
– strengthened the Department’s
Graduate Program through a
proactive recruitment campaign,
formalised induction program
and a mentoring program
– ran Ergonomics training for
all staff, including a focus on
safe driving principles for
regional staff
– developed and implemented a
strengthened training calendar
including programs on: policy
writing, writing skills,
management skills, effective
presentation skills, legal
awareness and diagnostic skills
for departmental staff.
Information Management
During the year, nearly 90 per cent
of the Department’s correspondence
with its clients was conducted
electronically. Sessions on all
Department websites exceeded
1.3 million, and a wide variety of
critical information through the
Department’s intranet to enhance
staff productivity was maintained.
The functions of the Information
Management and Technology Unit
include records management,
information research services and
IT (Web and Data) services.
During 2004-2005, the Unit:
– continued to manage
thousands of document,
record and file movements
– continued to support the
Department’s information
management systems and
technology infrastructure,
hardware and software
– introduced a common Content
Management Server and Web
Host for the Department’s
nineteen websites and migrated
the Department’s largest website
(Small business:
www.smallbiz.nsw.gov.au) and
newest website (Australian
technology Showcase:
www.ats.business.gov.au) to the
new Server and Host
45
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– enhanced the Department’s
Intranet and systems
management software (including
leave management, activity
logging and software
distribution applications)
– further integrated and enhanced
the Department’s Core Client
Relationship database structure
(containing Investment, Small
Business, and Regional
Development Divisions’ client
data) and built upgraded and
supported Inventory, HR and
other related databases
– updated the Information
Management and Technology
(IM&T) Strategic Plan,
Department’s Database Strategic
Plan and Records Management
documentation, to help ensure
Departmental best practice in
information management
– continued to provide extensive
staff training to improve staff
skills and security.
10
Business Strategy Unit, Communications Unit,
Executive Support, Retail Tenancy Unit
Business Strategy Unit
The Business Strategy Unit is a small
unit which was established during
2004-2005 to work on projects
that enhance the efficiency and
effectiveness of the Department’s
programs and service, and to
respond to challenges to the
organisation that create impact
across its divisions.
Core activities of the Business
Strategy Unit are:
– oversighting the Department’s
performance management
system, which includes
developing and implementing
consistent measurement tools
and sourcing market and
client feedback
– managing a system of regular
review of key programs to
ensure contemporary and
effective assistance approaches
are employed
– consolidating the Results and
Services Plan to meet Treasury
requirements and working
across the Department to
enhance the process of data
collection to achieve consistent
use of indicators
– providing advice to the Director
General and the senior
management team on emerging
industry opportunities for NSW
– managing the program of
the Department’s Audit and
Review Committee.
Highlights during
2004-2005 included:
– completed client surveys of over
500 business clients of the
Department, and a statistical
study and survey of international
financial institutions in Sydney
– finalised the Department’s
investment assistance procedures
handbooks
– co-ordinated the Department’s
Results and Services Plan
with Treasury
– finalised a package of 57 reforms
to the Retail Leases Act 1994.
Developed in consultation with
the retail leasing industry, the
proposed reforms will make it
easier for retailers and landlords
to do business in New South
Wales by cutting red tape and
introducing clearer requirements
for retail leasing
– developed for publication an
industry profile of the financial
services sector
– undertook four program reviews
(Australian Technology
Showcase, Film and Television
Attraction Fund, Towns and
Villages Futures Program,
Agribusiness Alternatives).
During 2005-2006, as well as
continuing to promote excellence in
program design and business
processes, the Unit will work across
the Department to create industry
sector publications that profile the
State’s competitive strengths.

Communications Unit
The Department’s Communications
Unit is responsible for developing
and implementing corporate
marketing and media strategies
and materials to promote Sydney
and New South Wales (NSW) as
leading business destinations in
the Asia Pacific.
The Unit pursued a busy program
in 2004-2005 to support the
investment and business aims of
the Department, including the
provision of strategic advice and
assistance to all divisions on media,
marketing, advertising, events and
sponsorship issues.
The Unit provided media support for
the securing of a number of major
investment projects and industry
events as well as support for the
Department’s small business
development programs and regional
development initiatives.
A series of investment brochures was
produced targeting high-profile
industries including financial services,
international contact centres,
information and communications
technology, and manufacturing. The
Unit also assisted in the production
of the NSW Competitiveness Report
2005, a high-end promotional
publication that underlines the
business strengths of Sydney and
NSW, comparing them with business
locations in the Asia Pacific, North
America and Europe.
The Unit actively participated in
planning for The Forbes Global CEO
Conference, to be held in Sydney,
August 2005. A series of full page
advertisements in Forbes magazines
in the US, Europe and Asia ran
throughout the year to promote
Sydney and NSW as an investment
destination and encourage
participation in the conference. In
addition, two promotional events in
the US were held with Steve Forbes
to promote the conference to key
business audiences.
The Communications Unit prepared
nearly 900 media releases providing
State-wide media exposure for the
Department’s activities and
successes. Marketing collateral
included 68 publications and three
interactive CD-ROMs.
Media and marketing support
provided by the Unit for a range of
Departmental projects and activities
during the year included:
– publication of the Department’s
monthly Business Update
electronic newsletter and
Business First and Regional First
magazines
– the Department’s first ever
Home-Based Business Week
held in May 2005
– the Premier’s NSW Exporter of
the Year Awards, of which the
Department is a lead sponsor
– media and marketing planning
for the Aichi World Expo in
Japan, from May 27 to June 3
– Small Business September, a
month-long celebration of the
diversity and contribution of
small firms across the State,
was the media highlight for
September 2004 and included
more than 360 events attracting
significant media coverage.
Trade and Investment Centre
and Country Embassy
The Trade and Investment Centre
and Country Embassy, on Level 44 of
Grosvenor Place, Sydney, continued
to rank among the city’s most
popular business networking venues.
During 2004-2005, almost 35,000
people visited the facilities including
5,000 international business people.
A total of 2,000 business events
were held that promoted Sydney and
NSW’s strengths as an investment
and business location.
47
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Significant international visitors to
the centre included the Australia-
India Chamber of Commerce;
Shanghai Economic Management
Group; UAE Ministry of Economy
and Planning; Federation of Indian
Chambers of Commerce and
Industry; Alabama Development
Office; South Africa Electrotechnical
Export Council; Italian Chamber
of Commerce and Industry;
California State Senate; Italian
Chamber of Commerce and Industry;
Vietnam Chamber of Commerce;
European Australian Business
Council; Australian British Chamber
of Commerce; Swedish Trade
Commission.
The Country Embassy provides an
important Sydney CBD base for NSW
regional clients to promote their
products, services and capabilities.
Regional event highlights included
the launch of Countrystore.org.au,
an online sales platform for country
businesses; the launch of Country
Week; the launch of a NSW
Department of Agriculture Workshop
for NSW farmers; and events by the
NSW Wine Association, Orange Food
and Wine Regional Tourism Group,
and Country Mayors’ Association.
Business Briefings Program
More than 2,000 visitors from
international delegations attended
the popular Business Briefings
Program on business opportunities
in NSW.
Business briefings highlights included
Energy Solutions from Ireland, who
were investigating the possible
establishment of operations in NSW;
a Korean coal delegation led by the
Korean Ministry of Commerce,
Industry and Energy investigating
investment in NSW coal mining
operations; and senior executives
from Rao GazProm, Russia’ s largest
company, inquiring about potential
gas investment opportunities.
Executive Support
The Department’s Executive Support
Unit provides high level support to
the Director General and senior
management, manages ministerial
and departmental communications
and correspondence, and liaises with
Ministers’ Offices.
A total of 2,890 correspondence and
Ministerial registrations were
managed by the Unit during the
reporting year. This has remained
consistent with previous years.
In the reporting period, the Unit:
– maintained close liaison with
Communications Unit on
marketing, public relations
issues, media promotions and
services to Ministers’ Offices
– maintained regular updates of
achievements, job creation, and
investment data
– continued its involvement in
corporate planning matters
and the filling of essential
staff vacancies
– monitored and supported
parliamentary proceedings
– managed business
website inquiries
– contributed to the Department’s
preparations for the Forbes
Global CEO Conference to be
held in August 2005.
Opportunities were once again
provided for staff in other Divisions
of the Department to be seconded to
the Unit to gain experience within
the corporate environment.
Retail Tenancy Unit
The Retail Tenancy Unit services
metropolitan and regional New
South Wales by providing timely and
cost effective dispute resolution to
parties in dispute that allows them
to avoid expensive litigation.
The Retail Leases Act requires parties
in dispute to attempt mediation prior
to the matter being listed in either
the Administrative Decisions Tribunal
or the court system. This results in
the parties quickly and cost
effectively resolving their dispute so
they can get back to the business of
being in business.
The advice service endeavours to
assist people avoid disputes with
information regarding industry
practice, negotiation skills, option
generation, advice relating to the Act
and dispute resolution procedures.
By assisting people to explore non
legal remedies the Unit is able to
help them avoid having to spend
time and money on a problem.
During the reporting period, the Unit
undertook 304 formal mediations
and 461 informal mediations. The
Unit also responded to 7,148
enquiries. The Unit continues to deal
with a wide range of participants in
the retail leasing industry. Rents,
misrepresentations and the condition
of properties continue to make up
the largest number of applications.
 ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
49

Audited Financial Statements

11
Department of State and Regional Development
Independent Audit Report

an
sc
to
Department of State and Regional Development
Statement by the Chief Executive Officer

51

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Department of State and Regional Development
Financial Statements

Statement of Financial Performance

for the year ended 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

Expenses
Operating expenses
Employee related expenses 2(a) 28,681 26,635 26,236
Other operating expenses 2(b) 16,495 16,348 18,985
Maintenance expenses 2(c) 252 219 226
Depreciation and amortisation expenses 2(d) 1,600 1,120 1,167
Grants and subsidies 2(e) 19,139 24,373 17,676
Other expenses 2(f) 24,576 30,937 25,306
Total Expenses 90,743 99,632 89,596
Less:

Retained revenue
Sale of goods and services 3(a) 149 538 68
Investment income 3(b) 877 600 686
Grants and contributions 3(c) 586 300 818
Other revenue 3(d) 591 214 753
Total Retained Revenue 2,203 1,652 2,325
Gain/(loss) on disposal of non-current assets 4 (4) – (17)
Net Cost of Services 21 88,544 97,980 87,288

Government Contributions
Recurrent appropriations (net of transfer payments) 5 83,859 93,806 81,403
Capital appropriations (net of transfer payments) 5 110 110 110
Acceptance by the Crown Entity of employee benefits
and other liabilities 6 3,281 2,842 3,049
Total Government Contributions 87,250 96,758 84,562
SURPLUS/(DEFICIT) FOR THE YEAR FROM ORDINARY ACTIVITIES (1,294) (1,222) (2,726)
SURPLUS/(DEFICIT) FOR THE YEAR (1,294) (1,222) (2,726)

TOTAL REVENUES, EXPENSES AND VALUATION ADJUSTMENTS

RECOGNISED DIRECTLY IN EQUITY – – (101)
TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING
FROM TRANSACTIONS WITH OWNERS AS OWNERS 16 (1,294) (1,222) (2,827)

(The accompanying notes form part of these statements)

Department of State and Regional Development
Financial Statements

53

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Statement of Financial Position
as at 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

ASSETS
Current Assets
Cash 9 19,816 31,156 31,368
Receivables 10 3,773 3,717 3,717
Other current assets 12 1,280 1,579 1,579
Total Current Assets 24,869 36,452 36,664

Non-Current Assets
Receivables 10 – – 130
Plant and Equipment 11 2,484 2,851 3,861
Total Non-Current Assets 2,484 2,851 3,991
Total Assets 27,353 39,303 40,655

Current Liabilities
Payables 13 2,580 9,630 9,630
Provisions 14 2,536 2,604 2,604
Other current liabilities 15 141 5,072 5,072
Total Current Liabilities 5,257 17,306 17,306

Non-Current Liabilities
Provisions 14 563 392 392
Other non current liabilities 15 – – 130
Total Non-Current Liabilities 563 392 522
Total Liabilities 5,820 17,698 17,828
Net Assets 21,533 21,605 22,827

EQUITY
Accumulated funds 16 21,533 21,605 22,827
Total Equity 21,533 21,605 22,827

(The accompanying notes form part of these statements)

Department of State and Regional Development
Financial Statements

Statement of Cash Flows

for the year ended 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments
Employee related (26,496) (25,113) (24,461)
Grants and subsidies (19,069) (29,993) (17,687)
Other (55,533) (46,984) (45,103)
Total Payments (101,098) (102,090) (87,251)

Receipts
Sale of goods and services 458 538 169
Interest received 787 600 710
Other 8,146 5,614 7,457
Total Receipts 9,391 6,752 8,336

Cash Flows from Government

Recurrent appropriation 5 83,859 93,806 86,334
Capital appropriation 5 110 110 110
Cash reimbursements from the Crown Entity 1,344 1,007 1,230
Cash transfers to the Consolidated Fund (4,931) – –
Net Cash Flows from Government 80,382 94,923 87,674
NET CASH FLOWS FROM/(USED IN) OPERATING ACTIVITIES 21 (11,325) (415) 8,759

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of Plant and Equipment 1 – 1
Advance repayments received 130 130 119
Purchases of Plant and Equipment (228) (110) (225)
Other – 313 –
NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES (97) 333 (105)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowings and advances (130) (130) (119)
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES (130) (130) (119)

NET INCREASE (DECREASE) IN CASH (11,552) (212) 8,535

Opening cash and cash equivalents 31,368 31,368 22,934
Cash transferred in (out) as a result of a functional transfer 17 – – (101)
CLOSING CASH AND CASH EQUIVALENTS 9 19,816 31,156 31,368

(The accompanying notes form part of these statements)

Department of State and Regional Development
Financial Statements

55

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Summary of Compliance with Financial Directives
for the year ended 30 June 2005

2005 2004
Expenditure/ Expenditure/ Expenditure/ Expenditure/
Net Claim on Net Claim on Net Claim on Net Claim on
Recurrent Consolidated Capital Consolidated Recurrent Consolidated Capital Consolidated
Appropriation Fund Appropriation Fund Appropriation Fund Appropriation Fund
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

ORIGINAL BUDGET
APPROPRIATION/
EXPENDITURE
Appropriation Act 106,489 89,386 110 110 100,623 90,992 110 110
s24 PF&AA – transfers
of functions between
departments – – – – 1,795 1,795 – –
106,489 89,386 110 110 102,418 92,787 110 110
OTHER APPROPRIATIONS/
EXPENDITURE
Transfers to/from another
agency (s27 of the
Appropriation Act) 457 457 – – (1,021) – – –
457 457 – – (1,021) – – –
Total Appropriations/
Expenditure/Net Claim on
Consolidated Fund
(includes transfer payments) 106,946 89,843 110 110 101,397 92,787 110 110
Amount drawn down
against Appropriation 89,843 110 97,718 110
Liability to Consolidated Fund – – 4,931 –

Notes to the Summary of Compliance with Financial Directives

(a) The Summary of Compliance is based on the assumption that Consolidated Fund monies are spent first (except
where otherwise identified or prescribed).
(b) The Liability to Consolidated Fund represents the difference between the ‘’Amount drawn against
Appropriation’’ and the ‘’Total Expenditure/Net Claim on the Consolidated Fund”.
(c) Comments on material variances between the “total” recurrent and capital appropriations and the actual
expenditure/net claim on Consolidated Fund for the year.
Original Budget Appropriation/Expenditure:
The net claim on Consolidated Fund is less than budget appropriations due to less than forecast expenditure in
program activities including Regional Headquarters Tax Concessions, Illawarra Advantage Fund, Regional
Development Assistance and greater than budgeted Retained Revenue.
Department of State and Regional Development
Financial Statements
Notes Accompanying and Forming Part of the Financial Statements
for the Financial year ended 30 June 2004
1. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(a) Reporting entity
The Department of State and Regional Development
(The Department) is a separate reporting entity. There
are no other entities under its control.
As the Department is a single program entity, the
financial results disclosed in the Statement of Financial
Performance and Statement of Financial Position are
those of the Department’s program. Accordingly, a
separate supplementary program statement has not
been prepared.
The Department is consolidated as part of the NSW Total
State Sector.
Effective July 2004, the responsibility and administration
of the NSW Innovation Council was transferred to the
Ministry for Science and Medical Research.
(b) Basis of Accounting
The agency’s financial statements are a general purpose
financial report which has been prepared on an accruals
basis and in accordance with:
– applicable Australian Accounting Standards;
– other authoritative pronouncements of the
Australian Accounting Standards Board (AASB);
– Urgent Issues Group (UIG) Consensus Views;
– the requirements of the Public Finance and Audit
Act 1983 and Regulations; and
– the Financial Reporting Directions published in the
Financial Reporting Code for Budget Dependent
General Government Sector Agencies or issued by
the Treasurer under section 9(2)(n) of the Act.
Where there are inconsistencies between the above
requirements, the legislative provisions have prevailed.
In the absence of a specific Accounting Standard,
other authoritative pronouncements of the AASB or
UIG Consensus View, the hierarchy of other
pronouncements as outlined in AAS 6 ‘’Accounting
Policies’’ is considered.
he financial statements are prepared in accordance with
the historical cost convention. All amounts are rounded
to the nearest one thousand dollars and are expressed in
Australian currency.
(c) Administered Activities
The Department does not administer any activities on
behalf of the Crown Entity.
(d) Revenue Recognition
Revenue is recognised when the agency has control of
the good or right to receive, it is probable that the
economic benefits will flow to the agency and the
amount of revenue can be measured reliably. Additional
comments regarding the accounting policies for the
recognition of revenue are discussed below.
(i) Parliamentary Appropriations and Contributions
from Other Bodies
Parliamentary appropriations and contributions from
other bodies (including grants and donations) are
generally recognised as revenues when the agency
obtains control over the assets comprising the
appropriations/contributions. Control over
appropriations and contributions is normally
obtained upon the receipt of cash.
An exception to the above is when appropriations
are unspent at year end. In this case, the authority
to spend the money lapses and generally the
unspent amount must be repaid to the Consolidated
Fund in the following financial year. As a result,
unspent appropriations are accounted for as
liabilities rather than revenue.
(ii) Sale of Goods and Services
Revenue from the sale of goods and services
comprises revenue from the provision of products
or services ie. user charges. User charges are
recognised as revenue when the agency obtains
control of the assets that result from them.
(iii) Investment income
Interest revenue is recognised as it accrues.
(e) Employee Benefits
(i) Salaries and Wages, Annual Leave, Sick Leave
and On-Costs
Liabilities for salaries and wages (including non-
monetary benefits), annual leave and vesting sick
leave are recognised and measured in respect of
employees’ services up to the reporting date at
nominal amounts based on the amounts expected
to be paid when the liabilities are settled.
Unused non-vesting sick leave does not give rise to
a liability as it is not considered probable that sick
leave taken in the future will be greater than the
benefits accrued in the future.
The outstanding amounts of payroll tax, workers’
compensation insurance premiums and fringe
benefits tax, which are consequential to
employment, are recognised as liabilities and
expenses where the employee benefits to which
they relate have been recognised.
Department of State and Regional Development
Financial Statements
(ii) Long Service Leave and Superannuation
The Department’s liabilities for long service leave
and superannuation are assumed by the Crown
Entity. The Department accounts for the liability
as having been extinguished resulting in the
amount assumed being shown as part of the non-
monetary revenue item described as “Acceptance
by the Crown Entity of employee benefits and
other liabilities”.
Long service leave is measured on a present value
basis. The liabilities that are expected to be settled
more than twelve months after the reporting date is
measured as the present value of the estimated
future cash outflows to be made by employers in
respect of services provided by employees up to the
reporting date. The present value method is based
on the remuneration rates on what the entity
expects to pay at each reporting date for all
employees with five or more years of service.
This means that where it is expected that employees
will receive a pay rise after reportintg date, the
increased pay rate is used in determining the
employee benefit liabilities.
The simple factors derived by the Government
Actuary to increase the long service leave
liability and related on-costs to approximate present
value calculations have been used in determining
the liabilities.
The superannuation expense for the financial year
is determined by using the formulae specified in the
Treasurer’s Directions. The expense for certain
superannuation schemes (ie Basic Benefit and First
State Super) is calculated as a percentage of the
employees’ salary. For other superannuation
schemes (ie State Superannuation Scheme and State
Authorities Superannuation Scheme), the expense is
calculated as a multiple of the employees’
superannuation contributions.
(f) Insurance
The Department’s insurance activities are conducted
through the NSW Treasury Managed Fund Scheme of
self insurance for Government agencies. The expense
(premium) is determined by the Fund Manager based
on past experience.
57
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
(g) Accounting for the Goods and Services
Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of GST, except where:
– the amount of GST incurred by the Department as
a purchaser that is not recoverable from the
Australian Taxation Office is recognised as part of
the cost of acquisition of an asset or as part of
an item of expense.
– receivables and payables are stated with the amount
of GST included.
(h) Acquisitions of Assets
The cost method of accounting is used for the initial
recording of all acquisitions of assets controlled by
the agency. Cost is determined as the fair value of the
assets given as consideration plus the costs incidental
to the acquisition.
Assets acquired at no cost, or for nominal consideration,
are initially recognised as assets and revenues at their
fair value at the date of acquisition. Fair value means the
amount for which an asset could be exchanged between
a knowledgeable, willing buyer and a knowledgeable,
willing seller in an arm’s length transaction.
(i) Plant and Equipment
Plant and equipment costing $5000 and above
individually are capitalised.
(j) Revaluation of Physical Non-Current Assets
As the Department does not own Land, Building or
Infrastructure assets, it considers it not cost-efficient
to carry out a revaluation of physical non-current
assets every five years, unless it becomes aware of
any material difference in the carrying amount of
any class of assets.
The Department’s assets are short lived and it is
considered by management that the written down
value of its non-current assets would approximate
their fair value.
As the Department is a not-for-profit entity whose
service potential is not related to the ability to
generate net cash flows, the recoverable amount
test has not been applied.
Department of State and Regional Development
Financial Statements
(k) Depreciation of Non-Current Physical Assets
Depreciation is provided for on a straight line basis for
all depreciable assets so as to write off the depreciable
amount of each asset as it is consumed over its useful
life to the entity.
Depreciation Rates % Rate
Furniture and fittings 10
Office equipment 14.25
Computer equipment and software 25
Leasehold improvements are depreciated over the term
of the lease.
(l) Maintenance and Repairs
The costs of maintenance and repairs are charged as
expenses as incurred, except where they relate to the
replacement of a component of an asset, in which case
the costs are capitalised and depreciated.
(m) Leased Assets
A distinction is made between finance leases which
effectively transfer from the lessor to the lessee
substantially all the risks and benefits incidental to
ownership of the leased assets, and operating leases
under which the lessor effectively retains all such risks
and benefits.
Operating lease payments are charged to the
Statement of Financial Performance in the periods
in which they are incurred.
(n) Receivables
Receivables are recognised and carried at cost, based on
the original invoice amount less a provision for any
uncollectable debts. An estimate for doubtful debts is
made when collection of the full amount is no longer
probable. Bad debts are written off as incurred.
(o) Payables
These amounts represent liabilities for goods and
services provided to the agency.
(p) Budgeted Amounts
The budgeted amounts are drawn from the budgets as
formulated at the beginning of the financial year and
with any adjustments for the effects of additional
appropriations, s 21A, s 24 and/or s 26 of the Public
Finance and Audit Act 1983.
The budgeted amounts in the Statement of Financial
Performance and the Statement of Cash Flows are
generally based on the amounts disclosed in the NSW
Budget Papers (as adjusted above). However, in the
Statement of Financial Position, the amounts vary from
the Budget Papers, as the opening balances of the
budgeted amounts are based on carried forward actual
amounts ie. per the audited financial statements (rather
than carried forward estimates).
Department of State and Regional Development
Financial Statements

59

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000

2. EXPENSES
(a) Employee related expenses
Salaries and wages (including recreation leave) 23,738 21,719
Superannuation 2,011 1,967
Long service leave 1,149 964
Workers compensation insurance 139 105
Payroll tax and fringe benefit tax 1,523 1,363
Payroll tax employer’s superannuation contribution 121 118
28,681 26,236
The Department charges the full cost of long service leave and the current service cost of
superannuation to operations. However, as the Department’s liability for long service leave and
superannuation is assumed by the Crown Entity, the Department accounts for the liability as
having been extinguished. This results in non-monetry revenue described as “Acceptance by
the Crown Entity of employee entitlements and other liabilities” (Refer Note: 1 (e) (ii)).

(b) Other operating expenses

Auditor’s remuneration – audit of the financial report 80 77
Miscellaneous Fees 2,948 2,923
Building Occupancy Charges 6,692 7,307
Staff Development 258 282
Publication and advertising costs 1,119 3,037
Telecommunication expenses 694 703
Insurance 119 86
Industry Networking 689 587
Payments to contractors 775 621
Printing and stationery 419 418
Travel expenses 650 670
Motor vehicles expenses 582 576
Consultancies 147 216
Other expenses 1,323 1,482
16,495 18,985

(c) Maintenance expenses

Maintenance 252 226
252 226

(d) Depreciation and amortisation expenses

Plant and Equipment 1,600 1,167
1,600 1,167
Department of State and Regional Development
Financial Statements

2005 2004
$’000 $’000

(e) Grants and subsidies

Industry Capability Network (NSW) 1,195 1,195
Hunter Valley Research Foundation 150 150
Illawarra Regional Information Service 150 150
Hunter Advantage Fund 1,340 1,481
Innovation Council of NSW – 18
Regional Development Boards 1,699 1,813
Regional HQ Tax Concessions 171 206
Newcastle Centre for Excellence 2,000 2,500
Katoomba/Echo Point Development 10 1,568
Illawarra Advantage Fund 740 904
Australian Research Centres of Excellence 1,406 1,086
Mount Panorama Precinct Upgrade 5,000 5,000
Smart Internet Technology CRC 278 105
ICT Centre For Excellence 5,000 1,500
19,139 17,676

(f) Other expenses

NSW High Growth Business Program 826 1,224
Small Business Development 5,652 6,852
Biotechnology Initiatives 4,612 5,194
Regional Development Assistance 13,486 12,036
24,576 25,306

3. REVENUES
(a) Sale of goods and services
Retail Tenancies Disputes fees 101 30
Other 48 38
149 68

(b) Investment income

Interest 877 686
877 686

(c) Grants and contributions

NSW Budget Sector Entities 125 21
Commonwealth 419 797
Other State Governments 40 –
Local Government 2 –
586 818

(d) Other revenue

Sponsorship 278 85
Other 313 668
591 753
Department of State and Regional Development
Financial Statements

61

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000

4. GAIN/(LOSS) ON DISPOSAL OF NON-CURRENT ASSETS

Proceeds from disposal
Proceeds from disposal 1 1
Written down value of assets disposed (5) (18)
Gain/(loss) on disposal of non-current assets (4) (17)

5. APPROPRIATIONS
Recurrent appropriations
Total recurrent drawdowns from Treasury (per Summary of Compliance) 89,843 97,718
Less: Liability to Consolidated Fund (per Summary of Compliance) – 4,931
89,843 92,787
Comprising:
Recurrent appropriations (per Statement of Financial Performance) 83,859 81,403
Transfer payments (see note 7) 5,984 11,384
89,843 92,787

Capital appropriations
Total capital drawdowns from Treasury (per Summary of Compliance) 110 110
110 110
Comprising:
Capital appropriations (per Statement of Financial Performance) 110 110
Total 110 110

6. ACCEPTANCE BY THE CROWN ENTITY OF EMPLOYEE BENEFITS

AND OTHER LIABILITIES
The following liabilities and/or expenses have been assumed by the Crown Entity.
Superannuation 2,011 1,968
Payroll tax on superannuation 121 118
Long service leave 1,149 963
3,281 3,049

7. TRANSFER PAYMENTS
Small Business Development Corporation of NSW 78 34
Ministerial Corporation for Industry 5,906 11,350
5,984 11,384

Transfer payments to the Ministerial Corporation for Industry comprise amounts administered
by the Corporation relating to Assistance to Industry.
The Corporation controls the identification of recipients, the amount and timing of payments
and the conditions under which payments are made to the recipients. The Corporation draws funds
from the Department only to the extent necessary to meet current cash requirements for expenditure.

8. PROGRAMS/ACTIVITIES OF THE DEPARTMENT

Program 1 – Development of the New South Wales Economy
Objective: To advance the economic development of New South Wales by securing sustainable
economic and business growth in metropolitan and regional areas.
Department of State and Regional Development
Financial Statements

2005 2004
$’000 $’000

9. CURRENT ASESTS – CASH

Cash at bank and on hand 19,816 31,368
19,816 31,368
For the purposes of the Statement of Cash Flows, cash includes
cash on hand and cash at bank.
Cash assets recognised in the Statement of Financial Position are reconciled to cash
at the end of the financial year as shown in the Statement of Cash Flows as follows:
Cash (per Statement of Financial Position) 19,816 31,368
Closing cash and cash equivalents (per Statement of Cash Flows) 19,816 31,368

10. CURRENT/NON-CURRENT ASSETS – RECEIVABLES

Current Receivables
Sale of goods and services 1,583 1,426
Recoverable Advances 130 130
Accrued Interest 401 311
GST receivable from Australian Taxation Office 1,659 1,850
3,773 3,717
Non-current Receivables
Recoverable Advances – 130
– 130

11. NON-CURRENT ASSETS – PLANT AND EQUIPMENT

Plant and Equipment
At Fair Value 9,965 10,179
Less: Accumulated Depreciation 7,481 6,318
Net book value 2,484 3,861

Reconciliations
Plant and Equipment –
2005
Carrying amount at start of year 3,861
Additions 228
Disposals (5)
Depreciation expense (1,600)
Carrying amount at end of year 2,484

12. CURRENT ASESTS – OTHER ASSETS

Other current assets
Prepayments 1,280 1,579
1,280 1,579
Department of State and Regional Development
Financial Statements

63

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000

13. CURRENT LIABILITIES – PAYABLES

Accrued salaries, wages and on-costs 295 150
Creditors 2,285 9,480
2,580 9,630

14. CURRENT/NON-CURRENT LIABILITIES – PROVISIONS

Current Provisions
Recreation Leave 2,485 2,441
Payroll tax 51 163
2,536 2,604
Non-current Provisions
Payroll tax 407 253
Workers’ Compensation Insurance 156 139
563 392

Aggregate employee benefits and related on-costs

Provisions – current 2,536 2,604
Provisions – non-current 563 392
Accrued salaries, wages and on-costs (note 13) 295 150
3,394 3,146

15. CURRENT/NON-CURRENT LIABILITIES – OTHER

Other current liabilities
Liability owing to consolidated fund – 4,931
Repayable Advances 141 141
141 5,072

Other non-current liabilities

Repayable Advances – 130
– 130

Accumulated Funds Total Equity

2005 2004 2005 2004
$’000 $’000 $’000 $’000

16. CHANGES IN EQUITY

Balance at the beginning of the year 22,827 25,654 22,827 25,654
Changes in equity – Other than those resulting from
transactions with owners as owners
Surplus/(deficit) for the year (1,294) (2,726) (1,294) (2,726)
Changes in equity – Transactions with owners as owners
Increase/decrease in net assets from equity transfers – (101) – (101)
Balance at the end of the financial year 21,533 22,827 21,533 22,827
Department of State and Regional Development
Financial Statements

2005 2004
$’000 $’000

17. INCREASE/DECREASE IN NET ASSETS FROM EQUITY TRANSFERS

Assets transferred to Premier’s Department
Plant and equipment – 261
Receivables – 57
Net Proceeds from disposal – 318

Liabilities transferred to Premier’s Department

Payables – (217)
Decrease in net assets from administrative restructuring – 101
The Office of Western Sydney was renamed the Office of the Minister for Western Sydney
and integrated within the Premiers Department in December 2003.

18. COMMITMENTS FOR EXPENDITURE

(a) Capital Commitments
Aggregate capital expenditure for the acquisition of
plant and equipment contracted for at balance date and not provided for:
Not later than one year – 12
Total (including GST) – 12

(b) Other Expenditure Commitments

Aggregate other expenditure for the acquisition of goods and services
contracted for at balance date and not provided for:
Not later than one year 3,691 68
Later than one year and not later than five years 6,568 –
Total (including GST) 10,259 68
The total other expenditure commitments above include input tax credits of
$933,000 (30 June 2004 $6,240) that are expected to be recovered from the ATO.

(c) Operating Lease Commitments

Future non-cancellable operating lease rentals not provided for and payable
Not later than one year 6,625 6,951
Later than one year and not later than five years 1,858 6,163
Total (including GST) 8,483 13,114
The total operating lease commitments above include input tax credits of
$771,230 (30 June 2004 $1,343,000) that are expected to be recovered from the ATO.
Department of State and Regional Development
Financial Statements

65

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000

18. COMMITMENTS FOR EXPENDITURE (cont’d)

(d) Grants and Subsidies Commitments
Regional Headquarters Tax Concessions 44 594
Small Business Development 286 1,203
Regional Development Assistance 12,276 19,657
Hunter Advantage Fund 2,390 3,257
NSW High Growth Business 378 321
Regional Economic Transition Scheme 1,515 3,303
Country Lifestyles Program 693 649
Australian Technology Showcase 461 623
Illawarra Advantage Fund 2,933 1,100
Biotechnology Initiatives 4,127 4,860
Australian Research Centres of Excellence 2,742 2,739
ICT Centre for Excellence 11,000 16,500
Smart Internet Technology CRC 1,320 –
Business Drought Assistance 1,312 –
Total (Including GST) 41,477 54,806

Payment Schedule – –
Not later than 1 year 29,632 29,035
Later than one year and not later than five years 11,845 25,771
Total (including GST) 41,477 54,806
The total grants and subsidies commitments above include input tax credits of
$3,771,000 (30 June 2004 $4,950,000) that are expected to be recovered from the ATO.

19. CONTINGENT LIABILITIES AND CONTINGENT
ASSETS
The Department is not aware of any contingent liabilities
associated with its operations.
20. BUDGET REVIEW
Net cost of services
The actual Net Cost of Services was less than budget
by $9,436,000. Movement in major expense
categories include:
(a) Actual Employee Related Payments were greater
than budget by $2,046,000. This is primarily due to
a 4% salary increase effective 1 July 2004 and
termination payments associated with a voluntary
redundancy program in the last quarter of the
financial year.
(b) Actual Grants and Subsidies being less than budget
by $5,234,000. The decrease was primarily due to
cash flow variations in the timing of approved
projects under management in items including
Katoomba Echo Point, Regional Headquarters Tax
Concessions and Illawarra Advantage Fund.
(c) Actual Other Expenses were less than budget by
$6,361,000. This is primarily due to less than
budgeted expenditure in program activities including
Regional Development Assistance and Biotechnology
Strategies, as a result of cash flow variations in
approved program projects and activities.
Assets and liabilities
There was minimal variation between actual and
budgeted Net Assets at year end. Actual Total Assets
were $11,950,000 less than budget primarily due to the
use of cash to meet liabilities associated with the
Department’s operational and program activities. Actual
Total Liabilities were $11,878,000 less than budget due
to less than budgeted current liatilities in the payables
and other current liabilities categories.
Cash flows
Actual net cash flows used in operating activities
exceeded budget by $10,910,000. This was due to less
than budgeted net cash flows from Government and
greater than budgeted receipts. The less than budgeted
cash flows from Government were primarily due to less
than forecast appropriation required in program
activities including Regional Headquarters Tax
Concessions, Illawarra Advantage Fund and Regional
Development Assistance.
Department of State and Regional Development
Financial Statements

2005 2004
$’000 $’000

21. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET COST OF SERVICES
Reconciliation of cash flows from operating activities to the net cost of services
as reported in the Statement of Financial Performance
Net cash from (used on) operating activities (11,325) 8,759
Cash flows from Government/Appropriations (80,382) (87,674)
Acceptance by the Crown Entity of employee benefits and other liabilities (1,937) (1,819)
Depreciation and amortisation (1,600) (1,167)
Decrease/(increase) in provisions (103) 44
Increase/(decrease) in prepayments and other assets (373) 158
Decrease/(increase) in payables 7,050 (5,803)
Net gain/(loss) on sale of plant and equipment (4) (17)
Decrease/(increase) in other liabilities 130 231
Net cost of services (88,544) (87,288)

22. FINANCIAL INSTRUMENTS Trade Creditors and Accruals

The liabilities are recognised for amounts due to be paid
Cash
in the future for goods or services received, whether or
Cash comprises cash on hand and bank balances within
not invoiced. Amounts owing to suppliers (which are
the Treasury Banking System. Interest is earned on daily
unsecured) are settled in accordance with the policy set
bank balances at the monthly average NSW Treasury
out in Treasurer’s Direction 219.01. If trade terms are
Corporation (TCorp) 11am unofficial cash rate adjusted
not specified, payment is made no later than the end of
for a management fee to Treasury. The average rate over
the month following the month in which an invoice or a
the year was 4.33% (4.06% in 2004) and at year end
statement is received. Treasurer’s Direction 219.01
the rate was 4.5% (4.25% at 30 June 2004).
allows the Minister to award interest for late payment.
Receivables No interest was applied during the year.
All trade debtors are recognised as amounts receivable
at balance date. Collectability of trade debtors is 23. IMPACT OF ADOPTING AUSTRALIAN
reviewed on an ongoing basis. Debts which are known EQUIVALENTS TO IFRS
to be uncollectable are written off. A provision for The Department will apply the Australian equivalents to
doubtful debts is raised when some doubt as to International Financial Reporting Standards (AEIFRS)
collection exists. The credit risk is the carrying amount from 1 July 2005.
(net of any provision for doubtful debts). No interest
is earned on trade debtors. The carrying amount The Department is managing the transition to the new
approximates net fair value. Sales are made on standards by allocating internal resources and engaging
30 day terms. Central Corporate Services Unit (CCSU) to analyse the
pending standards and Urgent Issues Group Abstracts to
Recoverable Advances identify key areas regarding policies, procedures, systems
All recoverable advances are recognised as amounts and financial impacts affected by the transition. To date,
receivable at balance date. Collectability of recoverable all the phases identified and reported in the Financial
advances is reviewed on an ongoing basis. The credit Statements for the year ended 30 June 2004 have been
risk is the carrying amount which approximates the completed. In particular, a draft Balance Sheet as at
net fair value. 1 July 2004 was prepared under AEIFRS (in parallel with
existing AGAAP financial information and financial
Bank Overdraft
statement) and submitted to the NSW Treasury.
The Department does not have any bank
overdraft facility.
Repayable Advances
All repayable advances are recognised as amounts
payable at balance date. Amounts payable are settled in
accordance with the term as specified in deeds of
agreement and other contractual correspondence
associated with the advance.
Department of State and Regional Development
Financial Statements
The Department has determined the key areas where
changes in accounting policies are likely to impact the
financial report. Some of these impacts arise because
AEIFRS requirements are different from existing AASB
requirements (AGAAP). Other impacts are likely to arise
from options in AEIFRS. To ensure consistency at the
whole of government level, NSW Treasury has advised
agencies of options it is likely to mandate for the
NSW Public Sector. The impacts disclosed below
reflect Treausury’s likely mandates (referred to
as”indicative mandates”).
Shown below are management’s best estimates as at
the date of preparing the 30 June, 2005 financial report
of the estimated financial impacts of AEIFRS on the
Reconciliation of equity under existing standards (AGAAP) to equity under AEIFRS
(a) Reconciliation of key aggregates
Total Equity under AGAAP
Total equity under AEIFRS
Surplus/(deficit) under AGAAP
Surplus/(deficit) under AEIFRS
Based on the above, if AEIFRS were applied in 2004-05
this would not change the Net Cost of Services.
Notes to tables above
1 The adoption of AASB 138 will also result in
certain reclassifications from plant and equipnment
to intangible assets (e.g. computer software
and easements).
2 AASB 119 requires present value measurement for
all long-term employee benefits. Current AGAAP
provides that wages, salaries, annual leave and sick
leave are measured at nominal value in all
circumstances. The Department has long-term
annual leave benefits and accordingly will measure
these benefits at present value, rather than nominal
value, thereby decreasing the employee benefits
liability and changing the quantum of the annual
leave expense.
(b) Financial Instruments
In accordance with NSW Treasury’s indicative mandates,
the Department will apply the exemption provided in
AASB 1 First-time Adoption of Australian Equivalents to
International Financial Reporting Standards not to apply
the requirements of AASB 132 Financial Instruments:
Presentation and Disclosures and AASB 139 Financial
Instruments: Recognition and Measurement for the
financial year ended 30 June, 2005. These Standards
will apply from 1 July 2005. None of the information
provided above includes any impacts for financial
instruments. However, when these Standards are
67
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Department’s equity and surplus/deficit. The Department
does not anticipate any material impacts on its cash
flows. The actual effects of the transition may differ
from the estimated figures below because of pending
changes to the AEIFRS, including the UIG interpretations
and / or emerging accepted practice in their
interpretation and application. The Department’s
accounting policies may also be affected by a proposed
standard to harmonise accounting standards with
Government Finance Statistics (GFS). However, the
impact is uncertain because it depends on when this
standard is finalised and whether it can be adopted
in 2005-06.
30 JUNE 2005 1 JULY 2004
$’000 $’000
21,533 22,827
21,533 22,827
(1,294)
(1,294)
applied, they are likely to impact on accumulated funds
(on first adoption) and the amount and volatility of
surplus/deficit. Further, the impact of these Standards
will in part depend on whether the fair value option
can or will be mandated consistent with Government
Finance Statistics.
(c) Grant recognition for not-for profit entities
The Department will apply the requirements in AASB
1004 Contributions regarding contributions of assets
(including grants) and forgiveness of liabilities. There are
no differences in the recognition requirements between
the new AASB 1004 and the current AASB 1004.
However, the new AASB 1004 may be amended by
proposals in Exposure Draft (ED) 125 Financial Reporting
by Local Governments. If the ED 125 approach is
applied, revenue and/or expense recognition will not
occur until either the Department supplies the related
goods and services (where grants are in-substance
agreements for the provision of goods and services) or
until conditions are satisfied. ED 125 may therefore
delay revenue recognition compared with AASB 1004,
where grants are recognised when controlled. However,
at this stage, the timing and dollar impact of these
amendments is uncertain.
24. AFTER BALANCE DATE EVENTS
There are no events subsequent to balance date which
affect the financial report.
(END OF AUDITED FINANCIAL STATEMENTS)
Ministerial Corporation for Industry
Independent Audit Report
Ministerial Corporation for Industry
Statement by Ministerial Corporation for Industry

69

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Ministerial Corporation for Industry
Financial Statements

Statement of Financial Performance

for the year ended 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

Expenses
Other operating expenses 2(a) 7,880 12,633 13,092
Total Expenses 7,880 12,633 13,092
Less:
Retained revenue
Grants and contributions 3(a) 228 – 2,233
Total Retained Revenue 228 – 2,233

Gain/(loss) on disposal of non-current assets 4 – – 107

Net Cost of Services 16 7,652 12,633 10,752

Government Contributions:
Recurrent appropriation 5 5,906 12,633 11,351
Total Government Contributions 5,906 12,633 11,351

SURPLUS/(DEFICIT) FOR THE YEAR FROM ORDINARY ACTIVITIES (1,746) – 599

TOTAL REVENUES, EXPENSES AND VALUATION
ADJUSTMENTS RECOGNISED DIRECTLY IN EQUITY – – –
TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING
FROM TRANSACTIONS WITH OWNERS AS OWNERS 12 (1,746) – 599

(The accompanying notes form part of these statements)

Ministerial Corporation for Industry
Financial Statements

71

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Statement of Financial Position
as at 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

ASSETS
Current Assets
Cash 7 – – –
Receivables 8 23 120 120
Total Current Assets 23 120 120

Non-Current Assets
Other financial assets 9 500 501 501
– Land 10 3,198 3,198 3,198
Total Non-Current Assets 3,698 3,699 3,699
Total Assets 3,721 3,819 3,819

LIABILITIES
Current Liabilities
Payables 11 2,795 1,147 1,147
Total Current Liabilities 2,795 1,147 1,147
Total Liabilities 2,795 1,147 1,147
Net Assets 926 2,672 2,672

EQUITY
Accumulated funds 12 926 2,672 2,672
Total Equity 926 2,672 2,672

(The accompanying notes form part of these statements)

Ministerial Corporation for Industry
Financial Statements

Statement of Cash Flows

for the year ended 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments
Other (6,231) (12,633) (12,338)
Total Payments (6,231) (12,633) (12,338)

Receipts
Other 325 – 2,113
Total Receipts 325 – 2,113

Cash Flows from Government

Recurrent appropriation 5 5,906 12,633 11,351
Net Cash Flows from Government 5,906 12,633 11,351
NET CASH FLOWS FROM OPERATING ACTIVITIES 16 – – 1,126

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of Land – – 375
Advances made – – (1)
Purchases of Land – – (1,500)

NET CASH FLOWS FROM INVESTING ACTIVITIES – – (1,126)

NET INCREASE (DECREASE) IN CASH – – –

Opening cash and cash equivalents – – –
CLOSING CASH AND CASH EQUIVALENTS 7 – – –

(The accompanying notes form part of these statements)

Ministerial Corporation for Industry
Financial Statements

73

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Summary of Compliance with Financial Directives
for the year ended 30 June 2005

2005 2004
Expenditure/ Expenditure/ Expenditure/ Expenditure/
Net Claim on Net Claim on Net Claim on Net Claim on
Recurrent Consolidated Capital Consolidated Recurrent Consolidated Capital Consolidated
Appropriation Fund Appropriation Fund Appropriation Fund Appropriation Fund
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

ORIGINAL BUDGET
APPROPRIATION/EXPENDITURE
Appropriation Act 12,633 5,906 – – 11,351 11,351 – –
12,633 5,906 – – 11,351 11,351 – –
Total Appropriations/
Expenditure/Net Claim
on Consolidated Fund
(includes transfer payments) 12,633 5,906 – – 11,351 11,351 – –
Amount drawn down
against Appropriation 5,906 – 11,351 –
Liability to Consolidated Fund – – – –

(a) The Summary of Compliance is based on the assumption that Consolidated Fund monies are spent first
(except where otherwise identified or prescribed). The appropriation is made to the Department of State and
Regional Development and disclosed in its financial report as a transfer payment.
(b) The Corporation operates from within the one program of the Department of State and Regional Development.
(c) The net claim on Consolidated Fund is less than budget appropriation due to less than forecast
expenditure on Assistance to Industry projects, as a result of varations in the timing of payments of
approved project commitments.
Ministerial Corporation for Industry
Financial Statements
Notes Accompanying and Forming Part of the Financial Statements
for the year ended 30 June 2005
1 SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
(a) Reporting entity
The Ministerial Corporation for Industry (hereafter
referred to as the “Corporation”) is constituted under
the State Development and Industries Assistance Act,
1966. The Corporation’s functions are:
To promote, encourage and stimulate:
(a) the establishment, expansion or development of
industries; and
(b) the carrying out, by business undertakings and
prescribed institutions, of projects that are likely to
assist the establishment, expansion or development
of industries.
The Corporation is a separate reporting entity. There
are no other entities under its control.
As the Corporation is a single program entity the
financial operations disclosed in the Statement of
Financial Performance and Statement of Financial
Position are identical to the Corporation’s program.
Accordingly a separate supplementary program
statement has not been prepared.
The reporting entity is consolidated as part of the
NSW Total State Sector Accounts.
(b) Basis of Accounting
The Corporation’s financial statements are a general
purpose financial report which has been prepared on
an accruals basis and in accordance with:
applicable Australian Accounting Standards;
– other authoritative pronouncements of the
Australian Accounting Standards Board (AASB);
– Urgent Issues Group (UIG) Consensus Views;
– the requirements of the Public Finance and Audit
Act 1983 and Regulations; and
– the Financial Reporting Directions published in the
Financial Reporting Code for Budget Dependent
General Government Sector Agencies or issued by
the Treasurer under section 9(2)(n) of the Act.
Where there are inconsistencies between the above
requirements, the legislative provisions have prevailed.
In the absence of a specific Accounting Standard,
other authoritative pronouncements of the AASB or
UIG Consensus View, the hierarchy of other
pronouncements as outlined in AAS 6 ‘’Accounting
Policies’’ is considered.
Except for land held for re-sale and investment in the
Smart Internet Technology CRC, which is recorded at
valuation, the financial statements are prepared in
accordance with the historical cost convention. All
amounts are rounded to the nearest one thousand
dollars and are expressed in Australian currency.
The accounting policies adopted are consistent with
those of the previous year.
(c) Revenue Recognition
Revenue is recognised when the Corporation has control
of the good or right to receive, it is probable that the
economic benefits will flow to the Corporation and the
amount of revenue can be measured reliably. Additional
comments regarding the accounting policies for the
recognition of revenue are discussed below.
Contributions from Other Bodies
The Parliamentary appropriation is made to the
Department of State and Regional Development and
disclosed in its financial report as a transfer payment.
Transfer payments to the Corporation comprise amounts
administered by the Corporation relating to Assistance
to Industry. The Corporation controls the identification
of recipients, the amount and timing of payments and
the conditions under which payments are made to the
recipients. The Corporation draws funds from the
Department only to the extent necessary to meet
current cash requirements for expenditure.
(d) Insurance
The Corporation’s insurance activities are included in
the Department of State and Regional Development’s
insurance coverage conducted through the NSW
Treasury Managed Fund Scheme of self insurance
for Government agencies.
Consequently no insurance expense is charged to
the Corporation.
(e) Acquisitions of Assets
The cost method of accounting is used for the initial
recording of all acquisitions of assets controlled by the
Corporation. Cost is determined as the fair value of the
assets given as consideration plus the costs incidental to
the acquisition.
Assets acquired at no cost, or for nominal consideration,
are initially recognised as assets and revenues at their
fair value at the date of acquisition
Fair value means the amount for which an asset
could be exchanged between a knowledgeable, willing
buyer and a knowledgeable, willing seller in an arm’s
length transaction.
Ministerial Corporation for Industry
Financial Statements

75

(f) Revaluation of Physical Non-Current Assets
The Corporation’s physical non current assets are
represented by land held for resale for commercial or
industrial development. Land is valued at market based
value. Physical non current assets are revalued every
5 years. The last such revaluation was completed on
30 June 2001 and was based on an independent
assessment, by the State Valuation Office. The recoverable
amount test has not been applied as the Corporation is a
not-for-profit entity whose service potential is not related
to the ability to generate net cash inflows. Revaluation
increments are credited directly to the asset revaluation
reserve, except that, to the extent that an increment
reverses a revaluation decrement in respect of that class
of asset previously recognised as an expense in the
surplus/deficit, the increment is recognised immediately as
revenue in the surplus/deficit. Revaluation decrements are
recognised immediately as expenses in the surplus/deficit,
except that, to the extent that a credit balance exists in
the asset revaluation reserve in respect of the same class
of assets, they are debited directly to the asset revaluation
reserve. Revaluation increments and decrements are offset
against one another within a class of non-current assets,
but not otherwise.
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
(g) Depreciation of Non-Current Physical Assets
Depreciation is not provided as the Corporation’s non-
current physical assets are non depreciable.
(h) Administrative Support
All administrative support for the Corporation’s activities
is provided by the Department of State and Regional
Development. The administrative support costs, which
have not been valued, are not reflected in the
Corporation’s Statement of Financial Performance.
(i) Grants, Subsidies and Industry Assistance
Payments for grants, subsidies and industry assistance
are expensed at the time the Corporation becomes liable
to make the payment. The approval of the grant,
subsidy or assistance may cover a number of years, and
it is not considered that a liability arises until conditions
specified in the approval have been met and a claim for
payment has been received. Grants, subsidies and
assistance which have been approved but have not been
paid or accrued have been included in commitments
(Refer Note 13).

2005 2004
$’000 $’000

2. EXPENSES
(a) Other operating expenses
Auditor’s remuneration for audit of the financial report 16 15
Consultancies 22 –
Contractors 53 –
Other expenses 5 39
Assistance to Industry 7,784 13,038
7,880 13,092

3. REVENUES
(a) Grants and contributions
Department of State and Regional Development 228 2,233
228 2,233

4. GAIN/(LOSS) ON DISPOSAL OF NON-CURRENT ASSETS

Proceeds from disposal – 375
Written down value of assets disposed – (268)
Net Gain/(loss) on disposal of property – 107

5. APPROPRIATIONS
Recurrent appropriations
Total recurrent drawdowns from Treasury (per Summary of Compliance) 5,906 11,351
5,906 11,351
Comprising:
Recurrent appropriations (per Statement of Financial Performance) 5,906 11,351
5,906 11,351
Ministerial Corporation for Industry
Financial Statements

6. PROGRAMS/ACTIVITIES OF THE AGENCY

The Corporation’s functions are appropriated through the single program of
the Department of State and Regional Development.
Program 1 – Development of the New South Wales Economy
Objective: To advance the economic development of New South Wales by
securing sustainable economic and business growth in metropolitan and regional areas.

7. CURRENT ASSETS – CASH

For the purposes of the Statement of Cash Flows, the Corporation considers cash to include
Cash at Bank and cash equivalents. Total cash at 30 June, 2005 as shown in the Statement of
Cash Flows is nil, which is the same as the related item in the Statement of Financial Position.

2005 2004
$’000 $’000

8. CURRENT ASSETS – RECEIVABLES

Amounts due on sale of land 23 120
23 120

9. NON-CURRENT ASSETS
Loans to industry 3,548 3,550
Provision for Doubtful Debts (3,048) (3,049)
Investment – equity in Smart Internet Techology CRC 961 733
Dimunition of value of CRC Shares (961) (733)
500 501

10. NON-CURRENT ASSETS – PROPERTY

(a) Land
At Valuation 3,198 3,198

Reconciliations
LAND
$’000
2005
Carrying amount at start of year 3,198
Carrying amount at end of year 3,198

Land held for resale was valued by the State Valuation Office in June 2001. Where appropriate,
parcels of land held for resale reflect the value attributable to the Corporation as per a joint venture
development agreement with Albury Wodonga Development Corporation.
10(b) JOINT VENTURE OPERATIONS
The Corporation is party to a joint venture development agreement with the Albury Wodonga
Development Corporation to develop, market and sell industrial property at Albury. The Corporation
contributed the industrial land with the Albury Wodogna Development Corporation responsible for
development of the site. The Corporation’s interest in the joint venture arrangement is calculated
at 58.8%. The carrying value of the land amounts to $148,000 and has been included in the
value of Non Current Assets – Property disclosed in this Note.
Ministerial Corporation for Industry
Financial Statements

77

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000

11. CURRENT LIABILITIES – PAYABLES

Others – 1
Assistance to Industry 2,795 1,146
2,795 1,147

ACCUMULATED FUNDS
2005 2004
$’000 $’000

12. CHANGES IN EQUITY

Balance at the beginning of the year 2,672 2,073
Changes in equity – other than transactions with owners as owners
Surplus/(deficit) for the year (1,746) 599
Balance at the end of the financial year 926 2,672

2005 2004
$’000 $’000

13. COMMITMENTS
(a) Other Expenditure Commitments
Industry Assistance Fund Commitments approved but not paid:
Not later than one year 8,406 12,626
Later than one year and not later than five years 9,870 15,310
Later than five years 55 –
Total (including GST) 18,331 27,936

The above comitments are not recognised in the
financial statements as liabilities.
The total commitments above include input tax credits
of $1,667,000 (30 June 2004 $2,525,000) that are
expected to be recovered from the ATO.
14. CONTINGENT LIABILITIES AND
CONTINGENT ASSETS
The Corporation is not aware of any contingent liabilities
and/or contingent assets associated with its operations.
15. BUDGET REVIEW
Net cost of services
The actual net cost of services was less than budget by
$4,981,000. This is primarily due to less than budgeted
expenditure on Industry Assistance projects due to
variations in the timing of approved project
commitments.
Assets and liabilities
Net assets were less than budget by an amount of
$1,746,000. This is primarily due to current liabilities
payables being greater than budget.
Cash flows
Net cash flows from operating activities
were as per budget.
Ministerial Corporation for Industry
Financial Statements
16. RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES
TO NET COST OF SERVICES
Reconciliation of cash flows from operating activities to the net cost of services as reported in the Statement of
Financial Performance.
Net cash used on operating activities
Cash flows from Government/Appropriations
Increase/(decrease) in receivables
Decrease/(Increase) in creditors
Net (loss)/gain on sale of land
Net cost of services
17. FINANCIAL INSTRUMENTS
Loans to Industry
All loans are recognised as amounts receivable at
balance date. Collectability is reviewed on an ongoing
basis. The majority of loans are considered to be not
collectable. As a result a large provision for doubtful
debts has been raised. The credit risk is the carrying
amount (net of any provision for doubtful debts).
Security is generally in the form of mortgage over
the company’s assets or directors’ guarantees.
Bank Overdraft
The Corporation does not have any bank overdraft
facility.
Trade Creditors and Accruals
Liabilities are recognised for amounts due to be paid
in respect of Industry Assistance Grants, where the
performance criteria has been met, and the claim
has been made prior to the end of the year.
18. IMPACT OF ADOPTING AUSTRALIAN
EQUIVALENTS TO IFRS
The Corporation will apply the Australian equivalents to
International Financial Reporting Standards (AEIFRS)
from 1 July 2005.
The Corporation is managing the transition to the new
standards by allocating internal resources and engaging
Central Corporate Services Unit (CCSU) to analyse the
pending standards and Urgent Issues Group Abstracts to
identify key areas regarding policies, procedures, systems
and financial impacts affected by the transition. To date,
all the phases identified and reported in the Financial
Statements for the year ended 30 June 2004 have been
completed. In particular, a draft Balance Sheet as at
2005 2004
$’000 $’000
– 1,126
(5,906) (11,351)
(97) 120
(1,649) (754)
– 107
(7,652) (10,752)
1 July 2004 was prepared under AEIFRS (in parallel with
existing AGAAP financial information and financial
statement) and submitted to the NSW Treasury.
The Corporation has determined the key areas where
changes in accounting policies are likely to impact the
financial report. Some of these impacts arise because
AEIFRS requirements are different from existing AASB
requirements (AGAAP). Other impacts are likely to
arise from options in AEIFRS. To ensure consistency at
the whole of government level, NSW Treasury has
advised agencies of options it is likely to mandate for
the NSW Public Sector. The impacts disclosed below
reflect Treasury’s likely mandates (referred to as
‘’indicative mandates’’).
Shown below are management’s best estimates as at
the date of preparing the 30 June, 2005 financial report
of the estimated financial impacts of AEIFRS on the
Group’s equity and surplus/deficit. The Corporation does
not anticipate any material impacts on its cash flows.
The actual effects of the transition may differ from the
estimated figures below because of pending changes to
the AEIFRS, including the UIG interpretations and/or
emerging accepted practice in their interpretation and
application. The Corporation’s accounting policies may
also be affected by a proposed standard to harmonise
accounting standards with Government Finance
Statistics (GFS). However, the impact is uncertain
because it depends on when this standard is finalised
and whether it can be adopted in 2005-06.
Ministerial Corporation for Industry
Financial Statements

79

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
1 JULY
2005 2004
$’000 $’000

18 IMPACT OF ADOPTING AUSTRALIAN EQUIVALENTS TO IFRS

Total Equity under AGAAP 926 2,672
Total equity under AEIFRS 926 2,672

30 JUNE
2005
$’000

Surplus/(deficit) under AGAAP (1,746)

Surplus/(deficit) under AEIFRS (1,746)

1 AASB 5 Non-current Assets Held for Sale and Discontinued Operations requires
non-current assets classified as ‘held for sale’ to be reclassified as current and
recognised at the lower of the carrying amount and the fair value less costs to sell.

19. AFTER BALANCE DATE EVENTS

There are no events subsequent to balance date which
affect the financial report.

(END OF AUDITED FINANCIAL STATEMENTS)

Small Business Development Corporation of New South Wales
Independent Audit Report
 ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
81
Small Business Development Corporation of New South Wales
Statement by Members
Small Business Development Corporation of New South Wales
Financial Statements

Statement of Financial Performance

for the year ended 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

Expenses
Other operating expenses 2(a) 78 50 34
Total Expenses 78 50 34
Net Cost of Services 11 78 50 34
Government Contributions:
Recurrent appropriation 3 78 50 34

Total Government Contributions 78 50 34

SURPLUS/(DEFICIT) FOR THE YEAR FROM ORDINARY ACTIVITIES – – –

TOTAL REVENUES, EXPENSES AND VALUATION

ADJUSTMENTS RECOGNISED DIRECTLY IN EQUITY – – –

TOTAL CHANGES IN EQUITY OTHER THAN THOSE

RESULTING FROM TRANSACTIONS WITH OWNERS AS OWNERS 7 – – –

(The accompanying notes form part of these statements)

Small Business Development Corporation of New South Wales
Financial Statements

83

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Statement of Financial Position
as at 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

ASSETS
Current Assets
Cash 5 – – –
Total Current Assets – – –
Total Assets – – –

LIABILITIES
Current Liabilities
Payables 6 5 5 5
Total Current Liabilities 5 5 5
Total Liabilities 5 5 5
Net Assets (5) (5) (5)

EQUITY
Accumulated Funds 7 (5) (5) (5)
Total Equity (5) (5) (5)

(The accompanying notes form part of these statements)

Small Business Development Corporation of New South Wales
Financial Statements

Statement of Cash Flows

for the year ended 30 June 2005

Notes Actual Budget Actual

2005 2005 2004
$’000 $’000 $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Payments
Other operating expenses (78) (50) (34)
Total Payments (78) (50) (34)

Cash Flows from Government

Recurrent appropriation 3 78 50 34
Net Cash Flows from Government 78 50 34
NET CASH FLOWS FROM OPERATING ACTIVITIES 11 – – –
NET INCREASE (DECREASE) IN CASH – – –
CLOSING CASH AND CASH EQUIVALENTS 5 – – –

(The accompanying notes form part of these statements)

Small Business Development Corporation of New South Wales
Financial Statements

85

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Summary of Compliance with Financial Directives
for the year ended 30 June 2005

2005 2004
Expenditure/ Expenditure/ Expenditure/ Expenditure/
Net Claim on Net Claim on Net Claim on Net Claim on
Recurrent Consolidated Capital Consolidated Recurrent Consolidated Capital Consolidated
Appropriation Fund Appropriation Fund Appropriation Fund Appropriation Fund
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

ORIGINAL BUDGET
APPROPRIATION/EXPENDITURE
Appropriation Act 78 78 – – 34 34 – –
78 78 – – 34 34 – –
Total Appropriations/
Expenditure/Net Claim on
Consolidated Fund
(includes transfer payments) 78 78 – – 34 34 – –
Amount drawn down
against Appropriation 78 – 34 –
Liability to Consolidated Fund – – – –

(a) The Summary of Compliance is based on the assumption that Consolidated Fund monies are spent first
(except where otherwise identified or prescribed).
(b) The Corporation operates from within the one program of the Department of State and Regional Development.
(c) The net claim on Consolidated Fund is as per the Recurrent Appropriation.
Small Business Development Corporation of New South Wales
Financial Statements
Notes Accompanying and Forming
Part of The Financial Statements
for the year ended 30 June 2005
1. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(a) Reporting entity
The Small Business Development Corporation of
New South Wales ( hereafter the “Corporation” )
is constituted under the Small Business Development
Corporation Act,1984.The objectives of the
Corporation are:
(a) develop policy objectives for Government
programs of assistance to the small business
sector of the economy;
(b) to evaluate such Government programs in the
light of these objectives;
(c) to make recommendations for improvement of
such Government programs; and
(d) to assist the Government generally in matters
relating to the development of the small business
sector of the economy.
The Corporation is a separate reporting entity.
As the Corporation is a single program entity, the
financial operations disclosed in the Statement of
Financial Performance and Statement of Financial
Position are identical to the Corporation’s program.
Accordingly, a separate supplementary program
statement has not been prepared. The reporting entity
is consolidated as part of the NSW Total State Sector.
(b) Basis of Accounting
The Corporation’s financial statements are a general
purpose financial report which has been prepared on
an accruals basis and in accordance with:
– applicable Australian Accounting Standards;
– other authoritative pronouncements of the
Australian Accounting Standards Board (AASB);
– Urgent Issues Group (UIG) Consensus Views;
– the requirements of the Public Finance and Audit
Act 1983 and Regulations; and
– the Financial Reporting Directions published in the
Financial Reporting Code for Budget Dependent
General Government Sector Agencies or issued by
the Treasurer under section 9(2)(n) of the Act.
Where there are inconsistencies between the above
requirements, the legislative provisions have prevailed.
In the absence of a specific Accounting Standard,
other authoritative pronouncements of the AASB or
UIG Consensus View, the hierarchy of other
pronouncements as outlined in AAS 6 ‘’Accounting
Policies’’ is considered.
The financial statements are prepared in accordance
with the historical cost convention.
All amounts are rounded to the nearest one thousand
dollars and are expressed in Australian currency.
The accounting policies adopted are consistent with
those of the previous year.
(c) Insurance
The Corporation’s insurance activities are included in
the Department of State and Regional Development’s
insurance coverage conducted through the NSW
Treasury Managed Fund Scheme of self insurance
for Government agencies.
Consequently no insurance expense is charged to the
Corporation.
(d) Administrative Support
Administrative support for the Corporation is provided
by the Department of State and Regional Development.
The administrative support costs,which have not been
valued, are not reflected in the Corporation’s Statement
of Financial Performance.
Small Business Development Corporation of New South Wales
Financial Statements

87

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
2005 2004
$’000 $’000

2. EXPENSES
(a) Other operating expenses
Auditor’s remuneration for audit of the financial reports 5 5
Administration Expenses 1 –
Contractors 40 –
Training and development 1 –
Publications and advertising – 6
Travel expenses 5 6
Printing 3 5
Other expenses 7 4
Meeting Fees and Expenses 16 8
78 34

3. APPROPRIATIONS
Recurrent appropriations
Total recurrent drawdowns from Treasury (per Summary of Compliance) 78 34
78 34
Comprising:
Recurrent appropriations (per Statement of Financial Performance) 78 34
78 34
The appropriation is made to the Department of State and Regional Development and is
disclosed in its financial statements as a transfer payment to the Corporation. The Corporation
draws funds from the Department only to the extent necessary to meet expenditure.

4. PROGRAMS/ACTIVITIES OF THE CORPORATION

The Corporation’s functions are appropriated through the single program of the
Department of State and Regional Development.
Program 1 – Development of the New South Wales economy
Objective: To advance the economic development of New South Wales by securing
sustainable economic and business growth in metropolitan and regional areas.

5. CURRENT ASSETS – CASH

The Corporation did not hold cash or cash equivalents as at 30th June 2005 (30th June 2004 Nil)

6. CURRENT LIABILITIES – PAYABLES

Creditors 5 5
5 5
Small Business Development Corporation of New South Wales
Financial Statements

ACCUMULATED FUNDS
2005 2004
$’000 $’000

7. CHANGES IN EQUITY
Balance at the beginning of the year (5) (5)
Changes in equity – other than transactions with owners as owners
Surplus/(deficit) for the year – –
Balance at the end of the financial year (5) (5)

8. COMMITMENTS FOR EXPENDITURE

Expenditure commitments as at 30 June 2005 for goods and services $ Nil (30 June 2004 $ Nil)

9. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Corporation is not aware of any contingent liabilities and/or contingent assets associated with its operations.

10. BUDGET REVIEW

Net cost of services
The actual Net Cost of Services was greater than budget by $28K. This was due to expenditure
for specialist contract services being greater than budget.
Assets and liabilities
Net assets were in line with budget.
Cash flows
Net cash flows from operating activities was zero.

2005 2004
$’000 $’000

11. RECONCILIATION OF NET CASH FLOWS FROM

OPERATING ACTIVITIES TO NET COST OF SERVICES
Reconciliation of cash flows from operating activities to the net cost of services
as reported in the Statement of Financial Performance.
Net cash used on operating activities – –
Cash flows from Government/Appropriations (78) (34)
Net cost of services (78) (34)
Small Business Development Corporation of New South Wales
Financial Statements
12. IMPACT OF ADOPTING AUSTRALIAN
EQUIVALENTS TO IFRS
The Corporation will apply the Australian equivalents to
International Financial Reporting Standards (AEIFRS)
from 1 July 2005.
The Corporation is managing the transition to the new
standards by allocating internal resources and engaging
Central Corporate Services Unit (CCSU) to analyse the
pending standards and Urgent Issues Group Abstracts to
identify key areas regarding policies, procedures, systems
and financial impacts affected by the transition. To date,
all the phases identified and reported in the Financial
Statements for the year ended 30 June 2004 have been
completed. In particular, a draft Balance Sheet as at
1 July 2004 was prepared under AEIFRS (in parallel with
existing AGAAP financial information and financial
statement) and submitted to the NSW Treasury .
The Corporation has determined the key areas where
changes in accounting policies are likely to impact the
financial report. Some of these impacts arise because
AEIFRS requirements are different from existing AASB
requirements (AGAAP). Other impacts are likely to arise
(a) Reconciliation of key aggregates
Reconciliation of equity under existing standards (AGAAP) to equity under AEIFRS
Total Equity under AGAAP
Adjustments to accumulated funds
Total equity under AEIFRS
Surplus/(deficit) under AGAAP
Surplus/(deficit) under AEIFRS
Based on the above, if AEIFRS were applied in 2004/05 this would not change the Net Cost of Services.
13 AFTER BALANCE DATE EVENTS
There are no events subsequent to balance date which affect the financial report.
(END OF AUDITED FINANCIAL STATEMENTS)
89
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
from options in AEIFRS. To ensure consistency at the
whole of government level, NSW Treasury has advised
agencies of options it is likely to mandate for the
NSW Public Sector. The impacts disclosed below
reflect Treasury’s likely mandates (referred to as
‘’indicative mandates’’).
Shown below are management’s best estimates as at
the date of preparing the 30 June 2005 financial report
of the estimated financial impacts of AEIFRS on the
Corporation’s equity and surplus/deficit. The Corporation
does not anticipate any material impacts on its cash
flows. The actual effects of the transition may differ
from the estimated figures below because of pending
changes to the AEIFRS, including the UIG interpretations
and/or emerging accepted practice in their interpretation
and application. The Corporation’s accounting policies
may also be affected by a proposed standard to
harmonise accounting standards with Government
Finance Statistics (GFS). However, the impact is uncertain
because it depends on when this standard is finalised
and whether it can be adopted in 2005-06.
1 JULY
2005 2004
$’000 $’000
(5) (5)
– –
(5) (5)
30 JUNE
2005
$’000
–
–
12
Appendices, Access, Index

1. Code of Conduct 91 22. Publications and promotional material 115

2. Consultancies 91 23. Research and development 117
3. Consumer response 91 24. Risk management and insurance 118
4. Controlled entities 91 25. Senior Executive Service 118
5. Credit card use certification 92 26. Significant committees membership 121
6. Disability Action Plan 92 27. Staff support services 123
7. Equal Employment Opportunity 93 28. Training and development 123
8. Ethnic Affairs Priorities Statement 29. Waste Reduction and Purchasing Policy 123
and Agreement 95 30. Women’s Action Plan 124
9. Freedom of Information 95 31. Workers’ Compensation
10. Government Energy Management Policy 100 and Occupational Health and Safety 125
11. Grants to non-government
community organisations 101
12. Guarantee of Service 108
13. Human Resources 108
14. Information and
Communication Technology 111
15. Internal audit 111
16. Land disposal 111
17. Major assets 111
18. Major works in progress 112
19. Overseas travel 112
20. Payment of accounts 113
21. Privacy and personal information 114
Appendices

91

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 1
Code of Conduct
The Department’s Code of Conduct has been developed to provide practical assistance to all staff in the Department
of State and Regional Development in performing its roles and in resolving situations which present ethical conflicts.
The Department’s Code of Conduct underpins the Department’s Management Development Program by setting the
standard of conduct and ethical behaviour that is expected by Managers and their staff. The Department reissued
the Code of Conduct during the reporting period.

Appendix 2
Engagement of Consultants

Consultants equal to or more than $30,000

Category and name Cost Purpose

Mack Management Consulting $44,500 Review of the NSW Australian Technology

Showcase program.
The Stafford Group $50,000 Review of the Agribusiness program and services.
Total over $30,000 $94,500

Consultants less than $30,000

During the year, 13 other consultancies costing less than $30,000 each were engaged in the following areas:

Category and name Cost

Legal NIL
Management Services $110,634
Organisational review $70,360
Total under $30,000 $180,994
Total consultancies $275,494

Appendix 3
Consumer Response
All requests made to the Department for information or
assistance are met directly and promptly or are referred
to the most appropriate officer as required. The
Department received no significant consumer
complaints during the reporting period. Consequently,
no changes to the Department’s services were
warranted on the basis of adverse consumer response.
The Department remains committed to providing
courteous, prompt and expert assistance to its clients
and the public in general.
Appendix 4
Controlled Entities
The Department administers, but does not control, two
entities as prescribed under Section 45A (1A) of the
Public Finance and Audit Act 1983.
Ministerial Corporation for Industry
The Ministerial Corporation for Industry was established
under the State Development and Industries Assistance
Act 1966 No 10.
The Corporation’s functions are to promote,
encourage and stimulate the:
– establishment, expansion or development
of industries
– carrying out, by business undertakings and
prescribed institutions, of projects that are likely to
assist the establishment, expansion or development
of industries.
Appendices

The Corporation acts as a vehicle for providing Further details of the Corporation’s activities for
financial assistance to investors on a case-by-case basis the year are described in the Small Business
following rigorous analysis of the projected impact on Development Division’s section within this report.
the NSW economy if a project were to proceed, The financial statements for the Corporation are
including in relation to new technologies and skills. included in this report.
The financial statements for the Corporation are Note: As foreshadowed in the Department’s 2003-2004
included in this Report. Annual Report, responsibility for the NSW Innovation
Council is to be transferred to the Minister for Science
Small Business Development Corporation and Medical Research in accordance with the
of NSW recommendation of the Legislative Council Standing
The Small Business Development Corporation was Committee on State Development.
established in 1984.
The Corporation’s primary objectives are to:
Appendix 5
– investigate such matters relating to the small
business sector of the economy as the Minister Credit Card Use Certification
may refer to the Corporation
In accordance with the Treasurer’s Direction 205.01, it is
– exercise such functions relating to the development certified that credit card usage by all the Department’s
of the small business sector of the economy as the officers during 2004-2005 was in accordance with the
Minister may confer appropriate Government policy, Premier’s Memoranda
– investigate any other matters relating to the small and Treasurer’s Direction.
business sector of the economy
– conduct enquiries into issues affecting Appendix 6
small business.
The Corporation’s membership for the 2004-2005 Disability Action Plan
year comprised: The Department’s second Disability Action Plan
– Ms Lynn Scott (Chair), Managing Director, 2003-2005 was developed to build on successes from
Creative By Design previous years. It identifies gaps in access and/or
– Mr Robert Cowan, Managing Director, barriers to DSRD offices and services for people with
Cowan Manufacturing Pty Limited disabilities. The Plan provides open communication
channels for feedback from all stakeholder groups and
– Mr Alan Eldridge, Managing Director,
provides for the implementation of appropriate
Eldridge and Co
strategies to ensure equal access to all DSRD services
– Mr Mark Fawcett, Managing Director, for people with disabilities.
Herd Bars and Bodies Pty Ltd
– Mr Loftus Harris, Director General, Department of
State and Regional Development
– Ms Lexie Hurford, Assistant General Manager,
Hurford group of companies
– Ms Beata Kade, Managing Director,
Art of Multimedia Pty Ltd
– Mr John Lightfoot, Managing Director,
Lightfoot and Associates Pty Ltd
– Ms Margaret Lomas, Director, Destiny Financial
Solutions Pty Ltd
– Ms Maree Lowe, Director, ASI Solutions
– Ms Karen Menzies, Managing Director,
Nineways Business Centre
– Mr Andrew Terry, Head of School of Business Law
and Taxation, University of NSW
Appendices

93

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Disability Action Plan 2003-2005

Action Strategies Outcomes/Achievements

Physical Access Disability awareness training for staff,
including the Department’s obligations to
provide access for people with disabilities
to all services, programs and projects.
Promoting Positive Profiling people with disabilities who are in
Community Attitudes business included in Departmental
publications.
Employment and Disability awareness training for staff,
Training of Staff including the Department’s obligations to
provide access for people with disabilities
to all services, programs and projects.
Training program for recruitment panel
members to ensure staff awareness of
merit based selection.
Include in all job advertisements the
statement that the Department is an equal
opportunity employer.
Promote information about resources
available to staff to assist in meeting needs
for reasonable workplace adjustment for
people with a disability.
Information about Development of Departmental policies,
Services procedures and publications to
incorporate the needs of staff with
a disability.
Complaints Procedures Develop and implement a program for
managing customer comments which
is accessible for people with disabilities.
Training programs to all new staff
to the Department were implemented.
Articles included in
Departmental publications.
Training programs to all new staff
to the Department were
implemented.
Recruitment activities and training
reflect merit based principles.
Statement included in advertisements.
Information about how to access
these resources included in orientation,
staff and management training
programs.
Policies, procedures and publications
monitored and revised as necessary.
Under development.

Appendix 7 – processes that support diversity and equity in the

Equal Employment Opportunity (EEO)
The Department is committed to implementing policies
and practices which meet legislative requirements in
terms of Equal Employment Opportunity (EEO).
Major Equal Employment Opportunity (EEO) outcomes
for the year:
– promoted the Department as an EEO employer,
through advertising and promotional material
– identified and addressed needs of staff with carer
responsibilities, including flexible work options and
access to appropriate facilities
– Aboriginal cultural respect and communication
training made available to all Departmental staff
composition of selection panels and the conduct of
interviews were enhanced
– The Department’s Women’s
Development/Networking Group for female staff
members delivered several workshops over the year.
The Group’s role is to promote networking among
female staff and suggest strategies and initiatives to
DSRD Executive that improve the workplace for
women and generally raise awareness among
managers about the issues that affect women in the
workplace. The Department’s Spokeswomen
undertook the role of Steering Committee to drive
this program forward in 2004-2005
– HR assisted divisions/staff through the Personal
Development Plans (PDP) to identify employee
training and career development needs.
Appendices

A. Trends in the Representation of EEO Groups

% of Total Staff
Benchmark Result
EEO Group or Target 2002 2003 2004 2005

Women 50% 45% 48% 49% 52%

Aboriginal people and Torres Strait Islanders 2% 1.2% 1% 1% 1.9%
People whose first language was not English 20% 14% 15% 16% 18%
People with a disability 12% 6% 6% 5% 5%
People with a disability requiring
work-related adjustment 7% 5.9% 1% 1.1% 0.5%

B. Trends in the Distribution of EEO Groups

% of Total Staff
Benchmark Result
EEO Group or Target 2002 2003 2004 2005

Women 100 83 83 86 87
Aboriginal people and Torres Strait Islanders 100 n/a n/a n/a n/a
People whose first language was not English 100 93 96 96 96
People with a disability 100 n/a n/a n/a n/a
People with a disability requiring
work-related adjustment 100 n/a n/a n/a n/a

Notes:
1. Staff numbers are as at 30 June 2005.
2. Excludes casual staff.
3. A Distribution Index of 100 indicates that the centre of the distribution of the EEO group across salary levels is
equivalent to that of other staff. Values less than 100 mean that the EEO group tends to be more concentrated
at lower salary levels than is the case for other staff. The more pronounced this tendency is, the lower the index
will be. In some cases the index may be more than 100, indicating that the EEO group is less concentrated at
lower salary levels. The Distribution Index is automatically calculated by the software provided by the Office of
the Director of Equal Opportunity in Public Employment (ODEOPE).
4. The Distribution Index is not calculated where EEO group or non-EEO group numbers are less than 20.
Appendices
Appendix 8
Ethnic Affairs Priorities Statement (EAPS)
and Agreement
As New South Wales’ (NSW) leading business
development agency, a major focus of the Department
has been to sponsor business migrants to NSW.
Following changes by the Commonwealth Government
to the Australian Business Migration Program in March
2003, 80% of business migrants to Australia require
sponsorship from a State or Territory Government.
Most business migrants enter NSW firstly on a
Provisional (Temporary Residence) visa for 2 to 4 years
and then apply for a visa as a Permanent Resident.
In 2004-2005, NSW received 364 applications for NSW
State sponsorship and issued 232 sponsorships in
support of visa applications to the Commonwealth.
Twenty applications for sponsorship were declined and
112 were pending as of 30 June 2005. The Department
of Immigration and Multicultural and Indigenous Affairs
(DIMIA) approved visas for 69 applicants sponsored by
NSW and declined 16 applicants. The business migrants
approved by DIMIA are expected to bring $12.2 million
in business fixed capital investment, create 290 new jobs
and generate $135 million in exports over five years.
In 2005-2006, NSW expects to issue 280 sponsorships
and receive 120 approvals from DIMIA which will
bring $20 million in business fixed capital investment,
create 500 jobs and deliver $240 million in exports
over five years.
Progress and Achievements
The Department has continued to support its
commitment to our culturally diverse staff and
community by:
– incorporating EAPS accountabilities in all
position descriptions
– stating EAPS accountabilities in SES
Performance Agreements
– including the capacity to collect client ethnicity data
in Recruitment and Staff Training Databases
– promoting Small Business Month activities through
ethnic community newspaper and radio stations
– publishing two promotional brochures (one in
Chinese) promoting Trade Missions, the other
dedicated to Aichi also promoting trade and
investment opportunities in New South Wales to
business people and officials, either in China or
visiting the State. The brochure also covers the role
of DSRD in the economic development of NSW
– maintaining a dedicated proxy
(china@business.nsw.gov.au) which facilitates
inquiries regarding exporting to China
95
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– increasing the ethnic community’s representation on
its Boards and Advisory Councils, by encouraging
representation from ethnic communities and
establishing ethnicity as a key criteria for
membership, for example, The Small Business
Development Corporation is a statutory advisory
body with 13 members, one of which is from
a non-English speaking background. The
NSW-Asia Business Advisory Council currently has
13 members, 11 of which are from a non-English
speaking background.
Appendix 9
Freedom of Information
The following information is set out in accordance with
the format prescribed in the Premier’s Department
Freedom of Information (FOI) Procedure Manual.
Statement of Affairs
Under the Freedom of Information Act 1989, each
agency is required to publish an annual Statement of
Affairs. The Statement describes the structure and
functions of the agency and lists the categories of
documents held by the agency. It also sets out how to
obtain documents that are eligible for public scrutiny
under legislation. The following information satisfies the
legislative requirements of the Act.
Structure and Functions
The Department was created in December 1995
following the amalgamation of the Department of
State Development and the Department of Business and
Regional Development. The Department’s structure,
functions and charter are detailed at the beginning
of this Report.
Effect of Functions on Members of the Public
The Department’s target market is the business
community on which it had a direct effect by assisting
major commercial projects through the approvals
process and providing key business information and
statistics. The Department assisted existing businesses
with projected expansion and new domestic projects.
Other areas where the Department directly assisted
the public were in the area of advice and access to
government purchasing, encouraging the development
of exports and the provision of support for selected
international trade exhibitions.
Much of the Department’s work had an indirect impact
on the general public. By encouraging investment,
exports, industry development activities and expediting
project approvals, sustainable jobs were created for the
people of NSW.
Appendices

Arrangements for Public Participation in Computer-based Information

Policy Formulation
The Department invites public participation in policy
formulation through private sector membership on
Advisory Committees and Development Boards
including: the Small Business Development Corporation,
Regional Development Boards and business forums. A
full list of committee members is included in this Report.
Categories of Documents Held
In accordance with the Freedom of Information Act
1989, the Department holds the following categories
of documents:
– correspondence with other governments, local
councils, community groups, the private sector
– briefing papers and advice to Ministers, departments
and authorities
– plans, sketches, diagrams and photographs relating
to projects and programs
– overseas travel arrangements
– consultants’ reports
– internal administration, including recruitment
and accommodation, staff and establishment,
financial and expenditure, management and audit,
records management
– itineraries and programs for visiting trade
delegations and other designated significant visitors.
Specific Documents and Publications
The Department maintains a number of policy
documents and produces a number of publications
relating to its functional role. A full list of documents
published is listed in this Report. You can obtain copies
free of charge by first contacting:
Communications Unit
NSW Department of State and Regional Development
Level 35, Governor Macquarie Tower
1 Farrer Place Sydney NSW 2000
Tel: (02) 9228 5693
Fax: (02) 9228 5177
Email: businessweb@business.nsw.gov.au
Hours: Monday–Friday 9.00am–5.00pm.
A number of databases and computerised information
packages are available for examination free of charge at
the NSW Trade and Investment Centre, Level 44,
Grosvenor Place, 225 George Street, Sydney
(Tel: 9338 6900). This computer-based information
includes a range of material including the Department’s
NSW Competitiveness Report which is updated regularly
and available from www.business.nsw.gov.au. Other
computerised information applications include the
Business Who’s Who, Government Who’s Who, Kompas
Asia Pacific, Marketing Pro, IBIS, Site Selector and
ANZSIC CODER.
Access Arrangements, Procedures and Points
of Contact
An application and $30 fee should accompany requests
for access to documents under the FOI Act. An
application is available from the FOI Coordinator. Upon
receipt of a request, the applicant will be advised of the
outcome of the application within 21 days, subject to
the provisions of the Act.
Requests for access to documents should be made to:
FOI Coordinator
NSW Department of State and Regional Development
Level 35, Governor Macquarie Tower
1 Farrer Place Sydney NSW 2000
Telephone: (02) 9228 3111
Facsimile: (02) 9228 5671
Email: businessweb@business.nsw.gov.au

Archives
Out of date or inactive files, as classified by the
Department’s disposal schedule (approved by the State
Records Authority) in accordance with the State Records
Act, 1998, are stored at the Government’s Record
Repository in Kingswood, Sydney.
Appendices

97

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Freedom of Information Statistics for 2004-2005

Section A
Numbers of new FOI requests

FOI Requests Personal Other Total

A1 New (including transferred in) – – 6

A2 Brought forward – – –
A3 Total to be processed – 6 6
A4 Completed – 6 6
A5 Transferred out – – –
A6 Withdrawn – – –
A7 Total processed – 6 6
A8 Unfinished – – –

Section B
What happened to completed requests?

Result of FOI Request Personal Other

B1 Granted in full – 1
B2 Granted in part – 5
B3 Refused – –
B4 Deferred – –
B5 Completed – 6

Section C
Ministerial Certificates

C1 Ministerial Certificates issued –

Section D

Formal Consultations Issued Total

D1 Number of requests requiring formal consultation(s) 3 3

Section E
Amendment of personal records

Result of Amendment Request Total

E1 Result of amendment – agreed –

E2 Result of amendment – refused –
E3 Total –

Section F
Notation of personal records
F3 Number of requests for notation –
Appendices

Section G
FOI requests granted in part or refused – Basis of disallowing access – Number of times each reason cited
in relation to completed requests granted in part or refused.

Basis of disallowing or restricting access Personal Other

G1 Section 19 (application incomplete, wrongly directed) – –

G2 Section 22 (deposit not paid) – –
G3 Section 25 (1) (a1) (diversion of resources) – –
G4 Section 25 (1) (a) (exempt) – 3
G5 Section 25 (1) (b), (c), (d) (otherwise available) – –
G6 Section 28 (1) (b) (documents not held) – 2
G7 Section 24 (2) – deemed refused, over 21 days – –
G8 Section 31 (4) (released to Medical Practitioner) – –
G9 Totals – 5

Section H
Costs and fees of requests processed – does not include costs and fees for unfinished requests.
(Results for these are included in Line A8).

Assessed costs FOI fees

received

H1 All completed requests – $870

Section I
Discounts allowed

Type of discount allowed Personal Other

I1 Public Interest
I2 Financial Hardship – Pensioner/Child – –
I3 Financial Hardship – Non-profit organisation – –
I4 Totals – –
I5 Significant correction of personal records – –
Note: Except for item I5, items I1, I2, I3 and I4 refer to requests processed as recorded in A7. For I5, however, show
the actual number of requests for correction of records processed during the period.

Section J
Days to process – calendar days

Elapsed Time Personal Other

J1 0–21 days – 3
J2 22–35 days – 2
J3 Over 35 days – 1
J4 Totals – 6
Appendices

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ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Section K
Processing time – (A4) by hours taken to process (completed)

Processing Hours Personal Other

K1 0 – 10 hrs – 3
K2 11 – 20 hrs – 2
K3 21 – 40 hrs – 1
K4 Over 40 hrs – –
K5 Totals – 42 hours

Section L
Reviews and appeals – number finalised during the period
L1 Number of internal reviews finalised –
L2 Number of Ombudsman reviews finalised –
L3 Number of Administrative Decisions Tribunal appeals finalised –

Details of Internal Review Results – in relation to internal reviews finalised during the period

Basis of Internal Review Personal Other

Grounds on which internal review requested Upheld* Varied* Upheld* Varied*

L4 Access refused – – – –
L5 Deferred – – – –
L6 Exempt matter – – – –
L7 Unreasonable charges – – – –
L8 Charge unreasonably incurred – – – –
L9 Amendment refused – – – –
L10 Totals – – – –

* Relates to whether or not the original agency decision was upheld or varied by the internal review.
Appendices
Appendix 10
Government Energy Management Policy
Corporate Commitment
The Department of State and Regional Development is
committed to reaching the Government’s energy
management goal of reducing greenhouse emissions
arising from its operational activities.
Planning
The Department has entered into Greenpower electricity
supply contracts which account for over six per cent of
total electricity used.
The Department continued to reduce future electricity
consumption through leasing smaller more energy
efficient sites and installing energy savings devices in
existing premises where appropriate. This will be in
accord with the Government’s policy on the Australian
Greenhouse Buildings Rating Scheme.
During the reporting period, the Department
achieved greater fuel efficiency in its fleet by
progressively replacing vehicles with more fuel efficient
cars and with smaller engine capacity. The Department’s
current fleet average of 10.2 already meets the targets
required for 2005-2006 under the Premiers Greener
Fleet Initiative. Further fleet improvements are planned
to meet future targets.
Implementation
The Departments Energy management goals are
contained in an Energy Management Plan for its four
Sydney and 18 Regional offices.
During 2004-2005, the Department used 8,595
gigajoules of energy, which generated 1,234 tonnes of
CO2. This represented an overall decrease in energy
consumption of 799 gigajoules per annum from the
1996-1997 base year, which represents an 8.51 per cent
reduction in energy consumption.
Performance Against Goals
During the year, a reduction in fuel and electricity
consumed meant that the Department has generated
11.29 per cent less greenhouses gases in comparison to
the 1996-1997 base year.
Despite a high demand on the department’s fleet
vehicles, total fuel consumption was reduced by
16.97 per cent on the 1996-1997 base year. Of the
141,588 litres of fuel used, 2,415 litres were the more
environmental friendly LPG.
Future Direction
The Department will continue to use Best Practice
Standards in the acquisition of replacement of fleet
vehicles and the purchase of new office equipment
wherever possible.
The Department will also continue to target
opportunities to increase the energy efficiency of
its leased premises.
Appendices

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ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 11
Grants to Non-Government Community Organisations
Organisation Project Amount Date

Regional Development Board Projects

Business Central Coast Pacific Flora Promotion and $20,000 1/07/2004
Expo – Japan
Far Western Regional YCREATE BUSINESS pilot $45,700 2/07/2004
Development Board –
Broken Hill
Greater Western Sydney Business Growth Strategy $69,950 5/07/2004
Economic Development Board Project – Stage 1
Orana Regional Development Board “Getting on With Business” seminars $72,974 7/07/2004
Greater Western Sydney Western Sydney $100,000 9/07/2004
Economic Development Board Industry Awards
Central West Regional Asia Export Forum $3,200 14/07/2004
Development Board
Murray Regional Telecommunications Demand $84,000 20/07/2004
Development Board Aggregation project
Business Central Coast Central Coast Business Portal Project $30,000 27/07/2004
Business Central Coast Investment prospectus for the $20,000 4/08/2004
Central Coast
Murray Regional Development Board International Technology Park $60,000 16/08/2004
project – Albury
Mid North Coast Regional Film Mid North Coast $57,500 10/09/2004
Development Board – project officer
New England-North West New England North West food $62,500 16/09/2004
Regional Development Board and wine industry project
– development officer
Capital Region Development Council ScreenAction Film Office $77,150 30/09/2004
– production liaison officer
Murray Regional Material for Sunraysia region $27,000 12/10/2004
Development Board profile project
Capital Region Capital Region Development $6,750 3/11/2004
Development Council Council strategic plan
Central West Regional Lachlan Alliance higher $16,500 24/11/2004
Development Board education analysis
Hunter Economic Promoting Regional Growth Project $82,500 16/12/2004
Development Corporation
Greater Western Sydney Blue Mountains World Heritage $8,000 15/01/2005
Economic Development Board Institute Project
Orana Regional Youth leadership project $16,700 18/01/2005
Development Board
Illawarra Regional I3net cluster – business $72,700 19/01/2005
Development Board development manager
New England-North West Interactive DVD to promote $9,000 7/02/2005
Regional Development Board education opportunities in region
Murray Regional Central Murray Horticultural Project $79,000 10/02/2005
Development Board
Hunter Economic Potential for utilising $30,000 14/02/2005
Development Corporation Hunter River Flats project
Riverina Regional Riverina Agricultural and $24,000 14/02/2005
Development Board Special Interest Tour project
Central West Regional Labour force expansion strategy $10,000 14/03/2005
Development Board
Mid North Coast Regional World Class in the Mid $8,000 15/03/2005
Development Board North Coast booklet
Illawarra Regional Illawarra Skills Audit $46,689 20/04/2005
Development Board
Central West Regional Asia Update Export 2004 $3,200 27/04/2005
Development Board
Appendices

Organisation Project Amount Date

Greater Western Sydney Regional Programs Manager $52,500 10/05/2005

Economic Development Board
Greater Western Sydney Building Liverpool Youth Jobs Project $10,000 10/05/2005
Economic Development Board
Central West Regional Business plan and promotion
Development Board of Central West $25,000 12/05/2005
Greater Western Sydney Hawkesbury Harvest $50,000 26/05/2005
Economic Development Board Stage III Project
Greater Western Sydney State of Manufacturing Forum $25,000 7/06/2005
Economic Development Board
Developing Regional Resources Program
Outback Arts Indigenous Cultural Officer $25,000 27/07/2004
Hunter Council – Assistance with the ongoing $45,000 02/08/2004
Hunter Region Organisation operation of Film Hunter
Armidale Dumaresq Council Prospectus for Business $20,000 02/08/2004
Clusters Action Plan project
North Coast Entertainment Develop the music industry $27,000 06/08/2004
Industry Association in the Northern Rivers
Macquarie Darling Work Yamagruua Enterprise centre $10,000 13/08/2004
Placement Incorporated in Brewarrina
Mid-Western Regional Council Economic development $25,000 13/08/2004
strategy for the Mid-Western
Regional Councils
Local Government Area
Kurrachee Aboriginal Establishing a silver perch farm $20,000 02/09/2004
Co-operative Society Ltd in Coraki
Native Fish Growers Preparation of a business plan $7,950 09/09/2004
Co-operative Ltd and feasibility assessment
Northern Rivers Visual Assistance to develop the $60,500 16/09/2004
Arts Network visual arts sector in the
Northern Rivers
Tumbarumba Shire Council Development of a prospectus $34,500 16/09/2004
for the Tumbarumba medical
centre and main street
design plan
Albury Wodonga Feasibility study and business $11,100 08/10/2004
Equestrian Centre plan for development
of indoor arena
Eden Whale & Marine Implementation of the $25,000 19/11/2004
Discovery Centre (EWMDC) community, education, and
research engagement phase
of the project
Lake Macquarie City Ageing Population Business $22,500 19/11/2004
Council-Main Street Programe Opportunities Project in
Lake Macquarie
Tumut Shire Council Feasibility study into former $15,000 19/11/2004
Mountain Maid site
Towac Marketing Co-operative Assistance to employ a $30,000 22/11/2004
Marketing Coordinator
Great Lakes Council Employment land strategy $30,000 06/12/2004
Cooma-Monaro Shire Council Assistance to employ an $100,000 08/12/2004
Economic Development Manager
Tweed Shire Council Lot 490 plan of $3,000 13/12/2004
management project
Exporters Network of Export Officer $41,000 21/12/2004
the Hunter Inc
Back O’ Bourke Tourism, Educational and $50,000 23/12/2004
Exhibition Centre Merchandising Exhibition
Centre project
Arts Upper Hunter Inc Promoting cultural enrichment $15,000 23/12/2004
in the Hunter Valley
Orange Region Orange brand development $30,000 11/01/2005
Vignerons Association for food and wine sector
Appendices

103

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Organisation Project Amount Date

Broombrush Industry Group Inc Development of strategic plan $14,000 04/02/2005

Lead on Australia Lead On Australia services $80,000 23/02/2005
to Griffith, Narrandera and
other Riverina communities
NSW Farmers Association/ Investigation and grading $7,500 23/02/2005
Oyster Farmers NSW of Sydney rock oysters
Mid-Western Regional Council 10-year tourism strategy $15,000 17/03/2005
for the whole local
government area
Deniliquin Municipal Council Feasibility study into the $9,000 01/04/2005
development of the Edward
River Boat Project
University of Sydney Horticulture and silviculture $15,000 22/04/2005
development potential for Wilcannia
Select Oyster Company Funding and upgrading $6,000 09/05/2005
business plan
Bega Valley Shire Council Project to develop land based $25,000 09/05/2005
support activities to compliment
cruise ship visits to Eden
Clarence Valley Council Pristine Valley/Clarence Valley $40,000 12/05/2005
Council economic development strategy
Gloucester Shire Council Development of an $20,000 16/05/2005
Employments Land Strategy
for the Gloucester area
Coffs Harbour City Council Coffs Coast Conference $60,000 13/05/2005
Attraction Strategy
Griffith City Council Research and development of $10,000 26/05/2005
global brand
Moree Plains Shire Council Retail business site analysis $7,545 26/05/2005
Forbes Shire Council Forbes demand driven $80,000 31/05/2005
farming project
Kiama Show Society Kiama Wine Show $15,000 14/06/2005
Deniliquin Municipal Council Deniliquin Air Service $5,000 24/06/2005
Film Hunter Assistance towards the cost of $100,000 24/06/2005
operating the Film Hunter Office
Merriwa Shire Council Merriwa’s Small Towns $69,305 28/06/2005
Growth Strategy
Country Lifestyle Program
Muswellbrook Shire Council Country Week – $3,719 06/07/2004
preparation of materials
Central West Regional Virtual Manufacturing $490 06/07/2004
Development Board workshop held in July 2004
in Orange
Greater Taree City Council Country Week – $5,000 07/07/2004
preparation of materials
Gwydir Shire Council Country Week – $5,000 07/07/2004
preparation of materials
Riverina Eastern Regional Professional Placement $5,000 12/07/2004
Organisation of Council Program – Engineer
Recruitment Project
Lower Hunter Business Retail workshops in the $1,300 13/07/2004
Enterprise Centre Upper Hunter
Nambucca Shire Council Develop marketing material $5,000 14/07/2004
to be used at trade shows and
events as part of investment
attraction strategy
Riverina Regional Riverina Skilled Migration $42,430 21/07/2004
Development Board Project Officer
Appendices

Organisation Project Amount Date

Uralla Shire Council Country Week Promotion – $5,000 26/07/2004

promotional materials that
will encourage the attraction
of skilled labour & potential
business relocation
Glen Innes Shire Council Country Week – preparation $5,000 26/07/2004
of materials
Beatin Round The Bush Inc Beatin Round the Bush Festival $5,000 02/08/2004
Country Week Organising Balance of Country Week $6,500 02/08/2004
Committee sponsorhip
Orange City Council Country Week – preparation $857 03/08/2004
of materials
Guyra Shire Council Country Week – promotional $2,500 04/08/2004
materials to support the
“Grow Guyra” retiree strategy
Tamworth Development Tamworth Region Business $5,000 04/08/2004
Corporation Ltd and Skill Relocation Project
Armidale Dumaresq Council Promotional materials and $4,750 05/08/2004
marketing imaging initatives
to encourage the attraction of
skilled labour and potential
business relocation
Gunnedah Shire Council Country Week – preparation $4,260 09/08/2004
of materials
Ratio Pty Ltd Condoblin pilot skills training $8,000 18/08/2004
Business Higher Education NSW Regional Engagement Forum $2,500 21/09/2004
Round Table
Country Week – Sponsorship Country Week 2005 $100,000 25/10/2004
Kingscliff (Country Centres Kingscliff plan of management $12,000 23/11/2004
Growth Strategies) and associated marketing materials
Workabout Australia Workabout Australia – $5,000 01/12/2004
Tradesmen’s Trek
The Stafford Group Plan for World Series $3,000 06/12/2004
Tri Nations Yachting events
Albury Wodonga Area Establishment of exporters database $2,850 06/12/2004
Consultative Committee
Charles Sturt University NSW Regional Engagement $2,000 19/01/2005
Forum – Riverina
University of Newcastle Union Forums discussing graduate $1,250 24/01/2005
opportunities in Hunter
Workabout Australia Establish the Tradesman Trek $5,000 12/11/2004
in Far West-Far North NSW
Managed Growth Agribusiness Growth $3,000 07/02/2005
workshop – Tamworth
Inverell Shire Council Skills development project $3,000 08/03/2005
Bland Shire Council Labour Force Expansion Project $10,000 14/03/2005
Albury Wodonga Business Survey of Albury $2,000 14/03/2005
Wodonga businesses
Central Coast Community Sustainable Business $2,500 17/03/2005
Environment Network Inc Conference 21 March 2005
Cowra Tourism Japanese brochure to $1,000 11/04/2005
promote tourism in Cowra
Managed Growth Agribusiness Growth $8,000 20/04/2005
workshop – Deniliquin
Mid North Coast Area Aboriginal Employment Strategy $1,500 01/06/2005
Health Service
Gwydir Shire Council Skills audit and survey $5,000 03/06/2005
Inverell Shire Council Skills Audit and Skills and $5,000 20/06/2005
Business Attraction prospectus
Muswellbrook Shire Council Jobs audit $2,280 30/06/2005
Appendices

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ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Organisation Project Amount Date

Main Street/Small Towns Program

Eurobodalla Adult Business Retention Expansion $12,000 01/07/2004
Education Inc surveys in Batemans Bay,
Moruya and Narooma
Coffs Harbour Arts Council Inc Business plan and marketing $10,000 01/08/2004
materials for the Cool Bananas
short film festival
Tenterfield Economic Tenterfield Marketing Plan $4,200 01/08/2004
Development Corporation
Carathool Shire Council Community planning $16,000 01/08/2004
workshops, Business
Retention Expansion program,
tourism workshop
Western Plains Regional Heart of NSW Festival in $15,000 01/09/2004
Development Lachlan and surrounding areas
Parkes Shire Council Update of tourism strategy $7,500 01/09/2004
Nelson Bay Town Township Marketing Plan in $2,750 01/09/2004
Management Inc the Nelson Bay CBD
Towns with Heart Inc Marketing Kurri Kurri Program $9,707 01/09/2004
Hunter River Agricultural Hunter Boutique Wine and $15,000 01/09/2004
& Horticultural Association Gourmet Food Festival
Bowral Chamber of Commerce Community planning activities $9,000 01/09/2004
Greater Taree City Council Community Economic $60,000 01/09/2004
Development Coordinator
Lavington North Albury Review of the Lavington $3,000 01/09/2004
North Albury Community
Strategic Plan
Gwydir Shire Council Community Economic $3,000 01/10/2004
Development mentoring support
Narrabri Shire Council “Nosh on the Namoi” – $25,000 01/10/2004
business plan, marketing and
event coordination
Narrandera Shire Council Sense of Place planning $50,000 01/10/2004
Blayney Shire Council Business Development Officer $60,000 01/11/2004
Cessnock Chamber of Commerce Strategic plan review, $9,000 01/11/2004
Business Retention and
Expansion Program Review,
business directory, food
industry cluster research,
branding, youth development,
research and prospectus
Erina Chamber of Commerce Erina CBD Revitalisation 2004 $9,000 01/11/2004
Scone Chamber of Commerce – STC Buy Local Campaign $5,000 01/11/2004
Jindabyne Chamber of Commerce Jindabyne Lakeside Festival $12,500 01/11/2004
Harden Shire Council Community revitalisation project $18,000 01/11/2004
Ballina Chamber of Community Development Officer $60,000 01/11/2004
Commerce & Industry
Tenterfield Economic Community Economic $3,000 01/11/2004
Development Corporation Development Mentorship
Gloucester Shire Council Web based network development $5,000 01/12/2004
Liverpool Plains Shire Council Community Economic $60,000 01/12/2004
Development Officer,
Planning Workshop, Business
Retention Expansion Program
Cabonne Shire Council Tourism industry workshop $1,500 01/01/2005
Illawarra ITEC Ltd Business coordinator for $25,000 01/01/2005
Northern Illawarra
Moruya Chamber of Commerce Moruya buy local campaign $10,000 01/01/2005
Inverell Shire Council ‘Inverell on Display’ business expo $15,000 01/02/2005
Appendices

Organisation Project Amount Date

Murray Shire Council Event plan for ‘Budburst’ Festival $3,500 01/02/2005
Urana Shire Council Plan to enhance the use of the $10,000 01/02/2005
aquatic centre to attract tourists
Deniliquin Shire Council Planning for “Deni Ute $8,000 01/02/2005
Muster” event
Greater Hume Shire Council “Holbrook Hoedown” event $10,000 01/02/2005
Cabonne Shire Council Strategic plan review workshop $1,000 01/03/2005
Forbes Promotion & Forbes business awards $4,00 01/03/2005
Development Inc
Albion Park Chamber of Employment of a coordinator $50,000 01/03/2005
Commerce
Moruya Chamber of Commerce Arts business forum – $2,000 01/04/2005
Moruya River of Art Festival
Wingecarribee Shire Council Business Retention Expansion $15,000 01/05/2005
program for LGA other
than Bowral
Narrabri Shire Council Economic Development Officer, $60,000 01/05/2005
community planning workshops,
Business Retention Expansion program
Gwydir Shire Council Community planning $24,000 01/05/2005
workshops and Business
Retention Expansion program
Narromine Shire Council Business Retention and $9,000 01/06/2005
Expansion program and
community planning workshops
Mayfield Mainstreet Mayfield on the map project $20,000 01/06/2005
Committee c/o Newcastle
City Council
Nowra Chamber of Commerce Shoalhaven Business Expo $8,000 01/06/2005
Sept 2005
Clarence Valley Council Business Retention Expansion program $8,000 01/06/2005

Brunswick Heads Chamber Simple Pleasures town $15,000 01/06/2005

of Commerce marketing campaign
Glen Innes Severn Council Business Retention Expansion program $3,000 01/06/2005
Towns & Villages Futures Program
New England Eco-Tourism Co-ordinator and business/ $3,000 05/08/2004
Society Inc marketing plan for Walcha
Wilderness walks
Tullamore Inc Tullamore Irish Festival $8,000 25/10/2004
March 2005
Cabonne Council Manildra’s Gem of a Weekend $10,000 25/10/2004
and 100th Show Sept 2005
Burcher Progress Association Community strategic plan $5,800 25/10/2004
and first project
Wollombi Valley Chamber Community strategic plan $6,000 25/10/2004
of Commerce and first project
Central Coast Plateau Inc Mangrove Mountain and $8,000 25/10/2004
Districts tourism/marketing
plan and marketing materials
Singleton Council Marketing and branding of $12,000 25/10/2004
Broke Fordwich Wine Region
Denman Chamber of Denman Upper Hunter Food $9,675 25/10/2004
Commerce and Wine Affair 2005
Gresford Community Group Inc Community strategic plan $6,500 25/10/2004
and website development
Nabiac Neighbourhood Feasibility study for community $6,000 25/10/2004
Centre Inc based multipurpose
commercial centre
Appendices

107

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Organisation Project Amount Date

Rotary Club of Paterson inc Promotional materials on $10,000 25/10/2004

heritage walk and park project
Great Lakes Council Stroud Valley tourism and $10,000 25/10/2004
business marketing plan
Jervis Bay Tourism Inc Huskisson and Jervis Bay $8,000 25/10/2004
tourism plan
Dalgety Chamber of Commerce Snowy Mountains Regional $12,000 25/10/2004
Food Fair and Snowy
Rivery Festival 2005
Harden Shire Council Brochure and website design $4,950 25/10/2004
to promote the St Clements
Retreat Centre as a
conference location
Bribbaree Water and Bribarree Community $5,000 25/10/2004
Progress Association Celebrations
Comboyne Community Project Coordinator and $8,475 25/10/2004
Association production of a brochure
and website development
Liverpool Plains Shire Council First project as part of $3,000 25/10/2004
community development plan
Mungindi Progress Association Events Co-ordinator, $13,000 25/10/2004
development of a website
and marketing materials
Wentworth Regional Wharf Precinct Community $5,000 25/10/2004
Development inc Planning Project
Tumut Shire Council Batlow Events Co-ordinator $11,000 25/10/2004
Walla Walla Community Economic and social $6,250 25/10/2004
Development Committee marketing plan
Corowa Shire Council “How Long” – A Vision for $6,000 25/10/2004
the Future plan
Orara Valley Axemen Rugby Business plan to extend use $10,000 12/12/2004
League Football Club inc of the sporting ground and
promote Rugby League’s 7’s
tournament
Gunnedah Shire Council Tourism plan and workshop $9,500 13/12/2004
to promote Tambar Springs
The Channon Trust Co-ordinator, first project and $6,000 13/12/2004
planning workshops
Gundagai Regional What’s on in Gundagai? $7,000 16/12/2004
Enhancement Project Brochure
Goodooga Community Project Co-ordinator $15,000 24/12/2004
Co-operative
Bland Shire Council Barmedman Tractor Pull $15,000 04/01/2005
March 2005
Delegate Progress Association Marketing plan and marketing $7,850 06/01/2005
materials to promote Delegate
Cobargo Tourist & Business Strengthening business $5,000 06/01/2005
Association Inc development and tourism
in the working village
of Cobargo
Appendices
Appendix 12
Guarantee of Service
The Department maintains its commitment to providing
a high quality service that meets the reasonable
expectations of its clients.
A Guarantee of Service brochure outlines
the Department’s:
– values and objectives
– service standard commitments
– services to its clients
– contact details
– ways that clients can provide feedback.
The Guarantee of Service may be accessed on
the Department’s website by staff and clients of
the Department.
Appendix 13
Human Resources
The Human Resources unit is responsible for developing
human resources policies for the NSW Department of
State and Regional Development staff, as well as
providing support and guidance to managers and staff
on all human resource issues.
Human resource issues include: conditions of
employment, training, equity, occupational health and
safety, workers compensation and rehabilitation,
grievance resolution, organisational change and
performance management, job evaluation and
establishment. The unit provides personnel and payroll
services to all staff through the Department’s outsourced
provider Central Corporate Services Unit (CCSU).
Major Achievements
– developed and implemented a six module
Management Development Program for senior
managers. Modules include Ethics, Values and
Accountability, People Management, Effective
Workplace Management and Strategic Planning.
Participants have rated the program very highly
– successfully developed and implemented a Voluntary
Redundancy program across the Department
– supported the development of a ‘Young
Professionals’ group in the Department
– managed ‘Health Week’ in conjunction with the PSA
and OH&S Committee. Activities included seminars
on Workplace Bullying, Caring for your Eyes, Men’s
Health and Exercise and You. Activities were
replicated in regional offices, including the inaugural
DSRD Fun Run
– sponsored a flu vaccination program for all staff
– strengthened the Department’s Graduate Program
through a proactive recruitment campaign,
formalised induction program and strengthened
mentoring program for the new graduates
– provided ergonomics training for all staff, including
a focus on safe driving principles for regional staff
– developed and implemented a strengthened training
calendar including programs on: policy writing,
writing skills, management skills, effective
presentation skills, legal awareness and diagnostic
skills for Departmental staff.
Industrial Relations Policies and Practices
The Department reissued the following policies and/or
guidelines during 2004-2005
– Worker’s Compensation Policy
– Occupational Health and Safety Policy
– Occupational Health and Safety Plan
– Safe Driving Policy
– Code of Conduct (see Appendix 1)
The Department and the Public Service Association
strengthened relations through the Joint Consultative
Committee (JCC). During the year the JCC continued
negotiations on the Department’s Flexible Working
Hours Agreement.
Appendices

109

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Establishment
Note: For EEO data see Appendix 7

2001 2002 2003 2004 2005

Establishment (i.e. number of positions – FTE) 275.3 281.2 313.7 296 297
Staff number of the Department (FTE) 250.7 268.3 299.1 276.5 274.2

Movement in Wages, Salaries or Allowances Exchange Programs

The Crown Employees (Public Sector – Salaries January
2002) Award provided for a four per cent increase in
salaries, with effect from 1 July 2004.
Staff Support Services
The Department continued its sponsorship of the
Employee Assistance Program (EAP) that provides a
24-hour, seven day a week, independent counselling
service available to staff and their family members.
The Program provides assistance through a network of
qualified counsellors to support staff through a variety
of problems that may be home or work-related.
The Department continued to recognise and support the
need for its staff to balance home and work
responsibilities by providing flexible work options.
Graduate Program
The Department continued to run its graduate program
with a third intake of graduates in January 2005. Four
graduates joined the 18 month program and undertook
a tailored developmental training and mentoring
program. Graduates participate in a rotation program
offering them the opportunity to work in up to four
different areas of the Department.
During 2004-2005, the Department continued to work
with New Zealand Trade and Enterprise (NZTE) and the
Welsh Development Agency (WDA) to enhance the
International staff exchange program.
– William Cowley, Business Development Manager,
Regional Development Division, visited New Zealand
and conducted research into the Meat Processing
industry in the context of regional development in
order to understand how NSW can increase its
competitiveness in this area
– Jonathan Carroll from New Zealand Trade and
Enterprise (NZTE) spent 6 weeks with the
Department, visiting regional locations and
reviewing the NZTE and www.export sites to
propose annotated links
– Betsan Caldwell from the Welsh Development
Agency (WDA) spent 6 weeks with the Regional
Development Division, documenting detailed
case studies of different models of community
economic development (CED) used by DSRD and
how the CED can be successfully integrated with
business development.
Feedback on the International Exchange Program
indicates the Program is highly beneficial to all
agencies, particularly the individual staff members
who have participated.

Career Mobility Program

The Department successfully continued the Career Mobility Program over 2004-2005.
Two members of staff have participated in placements during this time:

Name Division Went to

Eric Swan Policy and Resources Division Office of State Revenue

Alok Ralhan Small Business Development Division Audit Office

Study Assistance
The Department has continued to support staff
undertaking part time study through its study assistance
program. During the period 2004-2005, 14 staff were
provided with study assistance.
Appendices

Reward and Recognition Program

The Department’s Reward and Recognition Program continued to recognise outstanding service within the
Department. The Awards were presented to individuals and teams who have contributed to:
– Communication and Teamwork
– Planning and Risk Management
– Improving Organisational Performance
– Client Services

Award winners for 2004-2005 were:

Name Division Contribution

Anthony Williams Small Business Development Division Client Service

Rudi Tan Communications Unit Communication and Teamwork.
Improving Organisational performance.
Client Service.
Nigel McKinnon Regional Development Division Improving Organisational performance.
Client Service.
Margaret Turner Regional Development Division Client Service
Les Clements Industry Division Client Service
Michael Milligan Policy and Resources Client Service
Division
Small Business Small Business Communication and Teamwork
Support Team: Development Division
Bryan Pirie
Sue Hooworth
Joint Economic Small Business Development Division Client Service
Meeting 2004:
Susan Xu
Adrian Wood
Paul William-Smith
2003 Regional Regional Development Division Teamwork and improving
Development Division Organisational performance.
Taskforce:
Richard Burnett
Heather Irvine
Ed Frater
Barry Rothwell
Julie Yeoh
Suzette Gaff
Richard Beach
Appendices

111

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 14
Information and Communications Technology
The Department maintains and publishes information for clients and the public on the following websites:
www.business.nsw.gov.au (Main DSRD Site)
www.competitiveness.nsw.gov.au (NSW Competitiveness Data)
www.regionalcommunities.nsw.gov.au (Regional Site)
www.business.nsw.gov.au/biotech (Biotechnology & Pharmaceuticals)
www.smallbiz.nsw.gov.au (Small Business)
www.smallbusiness.nsw.gov.au (Small Business)
www.smallbusinessmonth.nsw.gov.au (Small Business)
www.smallbiz.nsw.gov.au/hbb (Small Business)
www.smallbiz.nsw.gov.au/makingit (Small Business)
www.aboriginalbiz.nsw.gov.au (Aboriginal Business)
www.export.nsw.gov.au (Export Business)
www.retailtenancy.nsw.gov.au (Retail Tenancy Site)
www.ats.business.gov.au (Australian Technology Showcase)
www.techshowcase.nsw.gov.au (Australian Technology Showcase)
www.food.nsw.gov.au (Food Site)
www.biotechnology.nsw.gov.au (Biotechnology Directory Site)

Department Reports provided included:

– Information Management and Technology
Strategic Plan
– Database Strategic Plan.

Appendix 15
Internal Audit Bureau
The Internal Audit Bureau is contracted to the
Department for the provision of internal audit services
and other special reviews. Audit activities undertaken
accord with an agreed audit plan.
Recommendations arising from reviews are considered
by management and implemented as appropriate.
Appendix 16
Land Disposal
The Department, through the Ministerial Corporation for
Industry, has responsibility for several parcels of
industrial land at Berkeley Vale and Albury. This stock of
land is maintained for industrial development purposes.
The Albury land is subject of a joint venture agreement
with the Albury Wodonga Development Corporation.
During 2004-2005, two of the Albury Wodonga Joint
Venture Operation sites were sold. The remaining two
sites are still available on the market.
The sale of the Department’s Berkeley Vale site is being
actively marketed.
Appendices

Appendix 17 Major asset additions during the 2004-2005 financial

year included upgrades to the Department’s computer
Major Assets network, the essential replacement of office equipment,
Major assets used by the Department include: digital telephone systems, and necessary improvements
to leased premises.
– Wide Area Network, incorporating desktop
computers, laptops and
other computer equipment including servers, Appendix 18
modems, routers and printers
Major Works in Progress
– improvements to leasehold premises
– photocopiers The Department is not currently managing any major
works in progress.
– office furniture and equipment including a large
range of audiovisual equipment.

Appendix 19
Overseas Travel
Department City and
Officer Country Visited Dates Purpose

Lynette Dorn Bangkok, Thailand 11–15 July 2004 NSW Trade Mission
Toni Hannon Tokyo 12–16 September NSW Government Office property matters
Loftus Harris Hong Kong, 18–24 September Forbes Global CEO 2004 Conference/Guandong
Warwick Glenn China Government Meetings
Brad Fitzmaurice Zurich, Switzerland 13–15 October Australian Interest Group Meeting
(based in London)
Brad Fitzmaurice Sydney 22 October– Business Briefings
(based in London) 6 November
Gerard Noon Palo Alto, 24–29 October ANZATECH 2004 Conference
California,USA
Michael O’Sullivan India 29 October– NSW Trade Mission
7 November
Christa Bracamonte Fiji and 1–10 November NSW Trade Mission
New Caledonia
Eric Cantwell Dubai, UAE 17–26 November NSW Market Visit – “Big 5” Exhibition
Brad Fitzmaurice Dusseldorf, Germany 24–27 November NSW delegation to MEDICA 2004
Steven Kerlander
Julie Scott China and 27 November – NSW Trade Mission
Paul William Smith Hong Kong 4 December Guandong Joint Economic Meeting,
Susan Xu Guangzhou
Loftus Harris Guangzhou, China 30 November- Joint Economic Meeting
3 December
Eric Winton China 13–22 January 2005 Support NSW companies at Stadia China 2005 in Beijing
and promote NSW expertise for the Beijing 2008 Olympics
Loftus Harris California, USA 16–20 January Australia Week in Los Angeles
Eric Cantwell 15–26 January
Tom McAlary China 19–26 February Promote business migration to New South Wales
Appendices

113

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Department City and
Officer Country Visited Dates Purpose

Michael O’Sullivan South Africa 6–11 February Sports Trade Mission promoting NSW skills for Soccer
World Cup 2010
Loftus Harris Dubai, UAE 4–11March NSW Trade Mission
Eric Cantwell Dubai, UAE 4–10 March
Will Cowley New Zealand 7 March–13 April International Staff Exchange
Roslyn Michelson New Zealand 4–7 April NSW Trade Mission
Sally Williams Singapore and 25–29 April NSW Trade Mission
Malaysia
Brad Fitzmaurice Frankfurt, Germany 28–29 April Australian Interest Group Meeting
(based in London)
Janine Ricketts Los Angeles, USA 17–20 May Electronic Entertainment Expo (E3)
Caroline Seagrove Aichi, Japan 26 May– 4 June Represent NSW at Sydney Week 2005 World Expo
Michelle Stewart
Loftus Harris USA/UK/France 15–28 June BIO2005, Philadelphia
Investment meetings in New York, Wales and London
Forbes CEO Europe Conference
Michael O’Sullivan USA 15–26 June Promote the NSW Biotechnology industry, and the
Shane Coombe 14–25 June Australian New Zealand Biotechnology Alliance
Steven Kerlander 16–25 June
Ellen Lintjens Wellington, 17–27 June Australian New Zealand School of Government
New Zealand
Jason Scattolin Wellington, 26 June–1 July Australian New Zealand School of Government
New Zealand

Appendix 20
Payment of Accounts
During the 2004-2005 financial year, the Department
maintained a policy of ensuring payment of accounts
by the due date and took advantage of discounts
where possible. The Department contracts the Central
Corporate Services Unit to process payments in
accordance with the Department’s accounts payment
policy. There were no instances during the 2004-2005
financial year where interest was paid for late payment
of accounts.
Appendices

Performance Indicators and Target Levels

Aged Analysis at the end of Each Quarter

Quarter Ended Current Less than 30 Between 30 Between 60 More than

(Due within due date) days overdue and 60 Days and 90 days 90 days
overdue overdue overdue
$ $ $ $ $

September 76,027 – – – –
December 2,154 – – – –
March 284,166 – – – –
June 183,848 – – – –

Accounts paid on time within each quarter

Quarter Ended Target % Actual % $ Total Amount

Paid

September 95% 92% 17,688,775 19,103,632

December 95% 92% 12,568,822 14,945,189
March 95% 91% 14,878,865 18,328,383
June 95% 93% 28,324,195 30,457,460

Action Taken to Improve Payment of Appendix 21

Accounts on Time
The percentage of accounts paid on time by quarter is
considered reasonable in comparison to target. There
were no significant events that affected payment
performance during the reporting period.
In conjunction with the Department’s account
processing service provider, the Department continues to
examine procedures to improve account payment
performance. To improve future performance greater
emphasis will be placed on enhancing electronic
processing of invoices, together with increased use of
purchase orders for recurring payments.
The 2005-2006 target for the percentage of accounts
paid on time is to be maintained at 90 per cent.
Privacy and Personal Information
During the year, the Department completed its bi-annual
privacy compliance review. The review included an audit
of processes used by the Department to collect, store,
use and dispose of personal information. The
Department’s Privacy Resource Officers undertook
training to enable them to implement future privacy
management initiatives at local levels. The Department
completed the revision of its privacy management plan,
which is made available to all staff internally via the
Department’s intranet site and publicly available on its
main website (www.business.nsw.gov.au).
In the coming year, the Department will continue to
provide ongoing training for staff at two levels:
– introductory sessions for new staff
– refresher sessions for existing staff including the
additional requirements under the Health Records
Privacy Information Act 2002.
The Department continued to ensure the protection of
privacy of individuals and was not required to undertake
any internal reviews of the conduct of any officers in the
Department concerning privacy matters during the
reporting year.
Appendices
Appendix 22
Publications and Promotional Material
Corporate
NSW – at a glance (Z-card)
NSW Competitiveness Report 2005
NSW Competitiveness Report 2005 CD Rom
NSW Trade and Investment (Chinese)
NSW Trade and Investment (Japanese)
Business First issue 30, 31, 32
Regional First issue 19, 20
Annual Report 2003-04
First impression last – NSW Trade and Investment Centre
Investment Division
Business Migration
Doing Business in NSW (English)
Doing Business in NSW (Chinese)
Sydney – a top player in Digital Media CD-Rom
Sydney and NSW: First for Information and Communications
Technology
Sydney – Digital Media Hotspot
Sydney – Major Project Unit
Sydney, NSW – First for International Contact Centres
Sydney, NSW – First for Shared Services
Sydney, NSW – First for Foreign Exchange
Sydney, NSW – First for Funds Management
Sydney, NSW – First for Manufacturing
Sydney, NSW – First for Food and Beverage Processing
Sydney, Australia – Financial Services
Industry Division
First for Aquaculture
First for Aquaculture – industry directory 2004
Australian Technology Showcase – where Australian innovation
meets the world
Australian Technology Showcase Snapshot e-newsletter
Australian Technology Showcase website
www.ats.business.gov.au
Beijing Olympics brief, newsletter
BioFirst website brochure
Biotechnology CD-ROM, online Directory
www.business.nsw.gov.au/biotechnology
Biotechnology e-newsletter, online
http://biotechnsw.e-newsletter.com.au
Biotechnology events email (monthly)
Biotechnology Investment brochure
Discover NSW Wine and Food Trails – pocket guide
NSW First for Planted Forests
Food Industry NSW – 2004-2005 Directory
FoodBytes – e-newsletter (nine issues in 2004-2005)
NSW Aquaculture Industry Directory 2004
NSW First for Aquaculture – case studies
NSW First for Aquaculture – investment brief
Sydney, NSW; Focussing on Optical Technologies
115
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Success Story: BTF Pty Ltd
Success Story: Cellabs Pty Ltd
Success Story: ObjectiVision
Success Story: Portland Orthopaedics
Success Story: Protech Research
Success Story: Ultraceuticals Pty Ltd
Success Story: Vast Audio
Success Story: Vertical Orthotics
NSW Biotechnology Industry Directory – CD Rom
Western Sydney IT Cluster “Members Update” email (weekly)
Western Sydney IT Cluster bi-monthly e-newsletter (5 issues)
Western Sydney IT Cluster – Working Together for Mutual
Benefit flyer on membership and benefits
Western Sydney IT Cluster – Online Members Capabilities
Directory
Western Sydney IT Cluster – 2005 Calendar of Forums,
Workshops and Special events
Western Sydney IT Cluster new website www.wsitc.com.au
Regional Development
Small Town – Big Growth
Your community – your future
Putting regional NSW on the menu
Merriwa Small Towns Growth Strategy
Filming in Regional New South Wales, Australia
Growing Success in Cooma
Funding Business Growth
Strong Regions, Strong Future
Right place at the right time – developing distribution hubs in
regional NSW
Regional Distribution Centre Attraction Strategy – Goulburn
Regional Food Tour 2005
Small Business Development Division
Aboriginal Business Newsletters (pdf)
Advertising and Promotion – Fact Sheet
Anti-discrimination – Fact Sheet
Better Solutions, Better Results (pdf)
Business Advisory Services flyer
Business Advisory Services large poster
Business Advisory Services small poster
Business Clusters: working together for growth
Business Planning – Fact Sheet
Business Security – Fact Sheet
Business Structure – Fact Sheet
Buying a Business – Fact Sheet
China Fact Sheet (pdf)
Cleaner Product Self Help Tool (pdf)
Cleaner Production PowerPoint Slides (http/powerpoint)
Cleaner Production Success Stories (webtext) –
Bartter Enterprises
Cleaner Production Success Stories (webtext) – Castle Chemicals
Cleaner Production Success Stories (webtext) –
First Creek Wines
Appendices
Cleaner Production Success Stories (webtext) –
Hammersley Chemicals
Cleaner Production Success Stories (webtext) –
Hunter Galvanizing Pty Ltd
Cleaner Production Success Stories (webtext) –
Maroba Incorporated
Cleaner Production Success Stories (webtext) – Pace Farm Eggs
Cleaner Production Success Stories (webtext) –
Alan Steggles Food Service
Client Service – Fact Sheet
Commercial Leases – Fact Sheet
Debt Recovery – Fact Sheet
Director of Aboriginal Business & Employment Programs (pdf)
Directory of business services for Aboriginal People (pdf only)
Electronic Commerce – Fact Sheet
Employment Conditions – Fact Sheet
Export Development: Helping Your Business to Export
Exporters Network registration (pdf)
Exporting Newsletters (pdf)
Getting Started – Fact Sheet
Getting the Most from Advisers – Fact Sheet
Helping people to start, manage and grow their business
Home based business action program
Home Biz Kit CD Rom
Home-based Business Action Programs (pdf)
Independent Market Visit Program
Innovation Clusters Program
Innovation Services Program
Innovation Success Stories (webtext) – Polo Hanger
Innovation Success Stories (webtext) – Safety Pole
Insurance – Fact Sheet
Insurance Finder Categories (pdf)
Intellectual Property – Fact Sheet
International Trade Missions and Market Visits Program,
July 2005–June 2006
International Trade Missions and Market Visits Program,
January to June 2005
International Trade Missions and Market Visits Program,
July to December 2004
Manufacturing in Western Sydney
Marketing – Fact Sheet
NSW Exporters Network
NSW Trade Mission to Shanghai and Guangdong,
29 November to 3 December 2004 (English and Chinese)
NSW-Asia Business Advisory Council
Pricing and Costing: managing for a profitable business
(CD-ROM)
Quick Guide to Small Business Services (pdf)
Raising Finance – Fact Sheet
Risk Management Guide
Securing Our Manufacturing Future (pdf)
Small Business Banking Issues and Statistics (pdf)
Small Business Big Impact (pdf)
Small Business Big Impact 2004
Small Business Fact Sheets in Arabic x 6
Small Business Fact Sheets in Khmer x 6
Small Business Fact Sheets in Korean x 6
Small Business Fact Sheets in Vietnamese x 6
Small Business Update (pdf)
Stepping Up – Helping your small business grow
Stepping Up Mentor Application and Brochure (pdf)
Stepping Up: Contractor Information Pack
Success Story: Aironic Pty Ltd
Success Story: BerrySweet Australia
Success Story: Intensive Reading Programs Pty Ltd
Success Story: IPS Worldwide
Success Story: Metz Pty Ltd
Success Story: Modular Mining Systems Pty Ltd
Success Story: Norco Co-operative Ltd
Success Story: Sud-Chemie Australia Pty Ltd
Success Story: Waterco Ltd
Success Story: Waterman AHW
Surviving in Business – Fact Sheet
Taxation – Fact Sheet
Technology and Innovation Newsletter (pdf)
Trade Services Case Studies x 10
Wib Growth Strategies Workshop Programs (pdf)
WiB Mentor/Mentoree application forms (pdf)
WiB Participant Notes (pdf)
Winning Exports Guide (pdf)
Women in Business – 2005 Growth Strategies Workshop
Women in Business – 2005 Growth Strategies Workshops
(February – June)
Women in Business – 2005 Growth Strategies Workshops
(July – December)
Women in Business – 2005 Mentor Program
Women in Business – 2005 Regional Program
Retail Tenancy Unit
RTU – Dispute Resolution Kit
Publications available on the Department’s
website
DSRD Strategic Plan 2004-2007
Annual Report 2004-2005
Guarantee of Service
Sydney and NSW – An Overview
NSW First for Aquaculture – investment brief
First for Aquaculture – industry directory
Appendices

117

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Aquaculture case studies: Guide to Business Planning
– Aquabait Marine Worm Farm – a marine worm farm, NSW Clusters for Business Newsletter
Aquabait Pty Ltd, supplies ‘tube worms’ to bait and tackle Pricing and Costing
shops
Quick Guide to Small Business Services
– Clearwater Mulloway – an inland saline aquaculture venture
that breeds and harvests the mulloway fish which is sold to Securing our Manufacturing Future
restaurants Service Exports Toolkit
– Manton’s Black Pearl Oysters – a leading Indigenous oyster Small Business – Big Impact
farm enterprise established by the Manton family Small Business Banking: Issues and Statistics
– Namoi Valley Aquafarming – one of the biggest native fish Smallbiz e-news
farms in NSW
Winning Exports – Planning Guide
– Silver Perch – members of the NSW Silver Perch Growers
Association grow silver perch for the domestic market The Impact of e-commerce on export business
– Tailor Made – an established aquaculture venture called The Retail Tenancy Unit Dispute Resolution Kit
Tailor Made Fish Farms focusing on the grow-out of NSW - First for Food and Beverage Processing
Barramundi using recirculating aquaculture technology
Sydney, NSW – First for International Contact Centres
– Tathra Oysters – an oyster farm supplying some of Sydney
Sydney, NSW – First for Shared Services
and Melbourne’s finest restaurants.
Sydney, NSW – First for Funds Management
First for Forestry
Sydney, NSW – First for Foreign Exchange
First for Planted Forests
Financial Services – Growth industry profile
Building on Success
Sydney and NSW: First for Information and Communications
Business Relocation Guide
Technology
Brief on Finance for Small Business
Business First (Back issues)
Regional First (Back issues)
Appendix 23
Sydney Australia – Your business location
Replacing Imports – The advantages of sourcing supplies locally Research and Development
Funding Business Growth – A guide designed to help regional
enterprises access venture capital Throughout the reporting year, the Department
Converting the Rugby World Cup 2003 into business continued to provide funding support to the Hunter
DSRD employment information package Valley Research Foundation and the Illawarra Regional
DSRD employment application form
Information Service. Each organisation received funding
DSRD code of conduct
for the provision of regional information services which
support the Department’s regional investment attraction
BioBusiness update
efforts. These services include data on the Hunter and
NSW BioBusiness Program
– BTF (case study) Illawarra economies respectively, business conditions, the
– Cellabs (case study) labour market and other information relevant to the
– Portland Orthopaedics (case study) regions, and are highly valued by the Department and
– Vast Audio (case study)
– Objectivision (case study) its clients in the business and investment communities.
– Protech (case study)
– Ultraceuticals (case study)
– Vertical Orthotics (case study)
NSW Biotechnology Brochure
Innovation Australia
Strong Regions, Strong Future – Regional Development in NSW
Towns and Villages Futures Program 2004 approved projects
Main Street/Small Towns Program application form
Main Street/Small Towns Program approved projects 2003/2004
Aboriginal Business Newsletter
Better Solutions, Better Results
Brief on Business Networks
Brief on E-Commerce
Brief on Finance for Small Business
Brief on Information Technology
Business In NSW
Cleaner Production Self-Help tool
Directory of Aboriginal Business and Employment Programs
Exporting Newsletter
Appendices

Appendix 24
Risk Management and Insurance
Risk Management
The Department regularly reviews and updates as appropriate its
risk management policy. This process continues the Department’s
efforts to assess and manage risk. These will enhance the
achievement of the Department’s objectives and service delivery
through more effective staff involvement in applying risk
management techniques and incorporating risk management into
their daily responsibilities.

Insurance Activities
The Department is insured through the Treasury Managed Fund,
a self insurance scheme administered by the GIO. The coverage
provided by the scheme is all inclusive, and policies are held for
Workers Compensation, Commercial Motor Vehicles, Property,
Miscellaneous and Public Liability.
A summary of claims paid by the Managed Fund during the
2004-2005 financial year follows:

Policy No. of Claims Amount Paid Reserve Balance Recovered to Date Net incurred
$ $ $ $

Workers Compensation 15 79,514 358,397 984 436,927

Motor vehicles 24 41,137 2,000 5,887 37,250
Property 3 13,828 3,231 – 17,059
Public Liability – – – – –
Miscellaneous – – – – –
Total 42 134,479 363,628 6,871 491,236

Appendix 25
Senior Executive Service (SES)
Each SES Officer develops an annual performance agreement which sets out their principal responsibilities and tasks
for the year. Each SES Officer undergoes an annual formal assessment with the Director General of their outcomes
against the performance agreement. The assessment also takes into account their personal contribution to achieving
overall corporate objectives.
Senior Executive Service Officers as at 30 June 2005.

Name Sex Position Title Level

Loftus HARRIS M Director General 7

Janine RICKETTS F Executive Director, Business Strategy Unit 3
Warwick GLENN M Executive Director, Investment Division 3
Michael O’SULLIVAN M Executive Director, Industry Division 3
Michael CULLEN M Executive Director, Regional Development Division 3
Perce BUTTERWORTH M Executive Director, Policy and Resources Division 3
Julie SCOTT F Executive Director, Small Business Development Division 3
Leanne JOYCE F Director, Communications Unit 2
Appendices

119

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Number of executive positions at each level 2003-2004 2004-2005

Level 1 1 1
Level 2 1 1
Level 3 5 5
Level 4 – –
Level 5 – –
Level 6 – –
Level 7 1 1
Female executive officers
Level 3 1 1
Level 2 0 1

Performance of SES officers Level Five and
above
Name: Loftus Harris
Position: Director General
SES LEVEL: 7
Remuneration: $346,190
Period of Review: 1 July 2004–30 June 2005
The Minister for State Development indicated that Mr
Harris met the performance criteria established for the
position of Director General of the Department of State
and Regional Development.
Specific achievements in 2004-2005 included:
– developing and implementing strategies to attract
global opportunities in the international financial
services sector to Sydney
– significant investment agreements with private
sector firms in aerospace, defence, manufacturing
and financial services which have resulted in
economic benefit for the State
– continuation of effective overseas business
missions to promote the State economy and put
New South Wales exporters in direct contact with
overseas clients
– attracting and facilitating the Forbes CEO Global
Conference to be held in August/September 2005
– oversighting and implementing the Regional Film
and Food Tour initiatives to promote business
opportunities for regional towns and locations
– assisting biotech companies commercialise new
products and services and to expand into
international markets through the BioFirst
BioBusiness program
– managing and conducting negotiations with major
film and digital media companies to support
production and post-production expansion in NSW
– assessing the opportunities from a range of Free
Trade Agreements for NSW
– leading contribution to the governance and
directions of NICTA
– ongoing promotion and support for small
businesses in NSW including Aboriginal businesses
– ensuring the provision of quality services and
support from the Department to the Minister for
State Development, Minister for Regional
Development and Minister for Small Business
– establishing and implementing processes to
ensure the Department operated within its
resource limitations
– establishing the Business Strategy Unit to lead and
proactively manage strategic, corporate and
business planning functions across the Department,
and, leading the Department’s ongoing corporate
review, performance measuring, reporting and staff
development processes.
Appendices
Appendices

121

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 26
Significant Committees Membership
Name Committee

Loftus Harris National ICT Australia (NICTA) – representative member; Commonwealth Standing Committee on
Regional Development; NSW Industry Capability Network – alternate Director to Minister for State
Development; NSW Infrastructure Council; NSW Information Industry Advisory Board; Small Business
Development Corporation; State Inter-Agency Greenhouse Network; NSW Wine Industry R&D Advisory
Council; CEOs’ Economic Development Forum; CEOs’ Network; Sydney Tourism Partners; State and
Territory CEOs’ Forum; Hunter Advantage Fund Assessment Committee; Illawarra Advantage Fund
Assessment Committee; Joint Consultative Committee
Perce Butterworth NSW Property Council Economic Development Committee; Illawarra Advantage Fund Assessment
Committee; Joint Consultative Committee; DSRD Audit and Review Committee; Department of
Commerce Central Corporate Services Unit Records and Information Management System
(RIMS) Steering Committee; Department of Commerce Central Corporate Services Unit
Client Senior Officer Group
Janine Ricketts State Contracts Control Board; DSRD Audit and Review Committee; NSW Business Licence Information
Service Steering Committee
Michael Cullen Illawarra Advantage Fund Assessment Committee; Hunter Advantage Fund Assessment Committee;
DSRD Audit and Review Committee; Chair of NSW Meat Industry Processing Restructuring Program
Steering Committee
Michael O’Sullivan Commonwealth, State and Territories Advisory Committee on Innovation; DSRD Audit and Review
Committee, The Bandwidth Foundry, Australian Synchrotron Research Program, Commonwealth,
State and Territories Advisory Committee on Innovation (CSTACI)
Warwick Glenn DSRD Audit and Review Committee
Leanne Joyce DSRD Audit and Review Committee; National Marketing Group
Julie Scott Small Business Ministerial Council Standing Committee; Aboriginal Economic Development Cluster
Working Group; DSRD Audit and Review Committee
Greg Beileiter WEST2000Plus Management Board
Gay Bryden Agribusiness Committee – Hunter
Paul Butler Greenhouse Benchmark’s Officer Group; NSW Greenhouse Network;
Energy Directions Inter-Agency Group
Eric Cantwell NSW Committee (Observer), Australia Arab Chamber of Commerce and Industry Inc
Ken Carlsund Minister’s Retail Leases Advisory Committee
Paul Chamberlain Statistical Coordination and Users Forum
Les Clements Project Control Group for Blue Mountains Cultural Centre in Katoomba, Contract Management
Committee for the Acquisition of Motor Vehicles
Paul Collits Standing Committee on Regional Development (SCORD) – National Research Network
Shane Coombe Committee for the Marketing of Australian Biotechnology (C-MAB); Australia – New Zealand Biotech
Alliance Working Group; AusBiotech NSW Branch Committee
Kevin Daly Committee Marketing ICT for Australia (CoMICTA)
Lynette Dorn Woman’s Development Committee
Sally Edwards Joint Consultative Committee; OH&S Workplace Committee
Robyn Faber OH&S Workplace Committee
Reg Fisk Employment Lands Planning Study Reference Group; Joint Consultative Committee
Suzette Gaff Hunter Community Renewal Scheme Directions Committee
Jeff Goodchild Cooks Cove Project Control Group
John Grady CCSU Internal Audit Committee (part year only); DSRD Audit and Review Committee
Jim Grant Riverina Murray Softwoods Working Group; Murray River Farm Forestry (Regional Plantation Committee);
Riverina Regional Telecommunications Advisory Board; Albury Environmental Technology Park
Steering Committee
Belinda Green Woman’s Development Committee
Leanne Grogan Illawarra Advantage Fund Assessment Committee
Jillian Hartley Woman’s Development Committee
Toni Hannon OH&S Workplace Committee
Vikki Hine NSW AusBiotech Branch Committee, NSW Medical Device Network Committee
Pat Hutton Joint Consultative Committee
Heather Irvine Board of Directors of Albury Wodonga Area Consultative Committee
Appendices

Craig Jenkins The Northern Rivers Indigenous Reference Group

Paul Judge NSW Food and Wine Tourism Advisory Committee; NSW Intensive Agriculture Consultative Committee;
NSW Pork Industry Taskforce; NSW Meat Processing Industry Restructuring Program Steering Committee;
National Food Industry Strategy States Alliance/National Food Alliance; NSW Aquaculture Taskforce; Joint
Consultative Committee
Steven Kerlander Committee for Marketing Australian Biotechnology (CMAB)
Sumeet Kumar Western Sydney Information and Communications Technology Industry Cluster, National ICT Australia
Centre of Excellence Liaison Committee (Chair), Commonwealth Government’s eResearch Committee,
Commonwealth Government’s Online Council, AIIA iAwards Judging Panel
Rhonda Laurie Southern Highlands Food and Wine Association; Southern Highlands Manufacturers Cluster
Naomi Losh OH&S Workplace Committee
Martin Mansfield NSW Shell LiveWIRE Committee; Government Business Education Network
Alvaro Marques OH&S Workplace Committee
Paul Matthews NSW Meat Processing Industry Restructuring Program Steering Committee
Trevor Matthews Tweed Heads CBD Project Facilitation Team (other members include Dept of Lands, DIPNR, Tweed
Economic Development Corporation; Tweed Shire Council)
Natalie May OH&S Workplace Committee; Woman’s Development Committee; Joint Consultative Committee
Caroline Maxwell OH&S Workplace Committee; Woman’s Development Committee
Tom McAlary Commonwealth/State Monitoring Group on Migration to Sydney and NSW; Commonwealth/States
Working Party on Skilled Migration; NSW Government Immigration Settlement Planning Committee
Barry McDonald Country Energy South East Regional Advisory Board
Bronwen McFarlane OH&S Workplace Committee
Richard McKie Department of Commerce Central Corporate Services Unit IT Steering Committee
Nigel McKinnon Manufacture Coffs Coast Committee; Nambucca Economic Development Committee; Nambucca Vehicle
Body Manufacturing Cluster Committee
Michelle Miran Shoalhaven Industry Business Association; Shoalhaven Area Consultative Committee; Shoalhaven City
Council Industry Development and Employment Committee
Bronte Price Smart Internet Technology Cooperative Research Centre; National Australian Technology Showcase
Committee; Commonwealth, State and Territories Advisory Committee on Innovation (CSTACI); National
Information and Communications Technology Centre of Excellence Liaison Committee; Centre of
Excellence for Autonomous Systems
Alok Ralhan NSW Business Licence Information Service Redevelopment Tender Evaluation Team; National Executive of
Small Business Agencies; Small Business Ministerial Council Standing Committee of Officials; Australian
Bankers Association Small Business Forum
Karen Robertson Woman’s Development Committee
Greg Ross National Australian Technology Showcase Committee
Barry Rothwell Director Small Business Centre - New England and North West
Sue Ryan Ballina Shire Economic Development Unit Management Board; Clarence Valley Economic Development
Management Committee; Richmond Valley Economic Development Committee
Tony Sansom Hunter Advantage Fund Assessment Committee
Caroline Seagrove Australian Centre for Event Management
Robert Sidford Secretariat for the Economic Development Executives Group, Broken Hill
Carol Shaw OH&S Workplace Committee
Peter Sneikers University of New England: School of Economics Board of Studies;
Southern New England Vignerons Association Inc
Wayne Sonter Joint Consultative Committee
Mangala Sirnvasan Woman’s Development Committee
Christine Stewart Joint Consultative Committee
Allen Treanor Senior Trade Officials Group (STOG); NSW Sustainable Development Network; Sydney Airport Master Plan
– NSW Government Steering Committee; Mobile Carriers Forum NSW government Interagency Working
Group; State Manufacturing Councils
Sue Wadley OH&S Workplace Committee
Kerrie-Ann Watson PSA Committee
Julie Yeoh Woman’s Development Committee

Significant Committees Abolished

Sydney Tourism Partners
Redfern/Waterloo Partnership Project
Appendices
Appendix 27
Staff Support Services
The Department continued its sponsorship of the
Employee Assistance Program (EAP) that provides a
24-hour, seven day a week, independent counselling
service available to staff and their family members. The
Program provides assistance through a network of
qualified counsellors to support staff through a variety
of problems that may be home or work-related.
The Department continued to recognise and support
the need for its staff to balance home and work
responsibilities by providing flexible work options.
Appendix 28
Training and Development
The Department continued to run an active training
program throughout 2004-2005. Activities were both
corporately and personally initiated to meet
Departmental and individual needs.
The Department commenced a Management
Development Program which has been designed to
develop the knowledge, skills and expertise of all
Departmental Managers by providing training based
on core management activities which is covered in
6 modules. Emotional Intelligence is a key theme
throughout the program and each module is supported
by professional one-on-one coaching designed to
support participants’ development and application
of learning.
Other development opportunities included:
– Leadership development activities for Senior
Managers, including coaching
– Continued to facilitate core training workshops
including; Writing Skills, Presentation Skills, Policy
Process and Inside Government
– Revised and strengthened the Department’s
Induction program for new staff
– Facilitated ergonomic training for all staff across
the Department
– Continued support of eleven staff
participating in the Premier’s Department Executive
Leadership Opportunities
– Executive Masters of Public Administration
• Ellen Lintjens
(Small Business Development Division)
• Arline Dumazel
(Small Business Development Division)
• Jason Scattolin (Policy and Resources Division)
123
ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
– Graduate Diploma in Public Administration
• Reg Fisk (Policy and Resources Division)
• Sally Edwards (Policy and Resources Division)
• Steven Kerlander (Industry Division)
• Linda Taylor (Executive Support Unit)
• Frances Beck (Policy and Resources Division)
• Louise McMeeking (Investment Division)
• Martin Mansfield
(Small Business Development Division)
– Executive Development Program
• Roxanne Smith (Regional Development Division)
For information on the Department’s Graduate Program,
Exchange Program, Reward and Recognition Program
and Career Mobility Programs, see Appendix 13.
Appendix 29
Waste Reduction and Purchasing Policy
Commitment to Reduce Waste sent to
Landfill
The Department is committed to meeting the
Government’s Waste reduction goals through the active
management of waste disposal schemes and the
mandatory use of recycled products
Consumables Purchased and Publications
Produced
During the 2004-2005 year, the Department purchased,
produced and distributed a total of 19,988 kg of paper.
General use paper such as A4 and A3 white represented
56 per cent of the total while publications represented
the balance. A very high 88 per cent of the general use
paper had a recycled content, while 51 per cent of
publications contained a recycled content. Our aim is to
increase the recycled content of publications during the
next financial year.
Waste Audit
A physical waste audit was completed during the
2004-2005 year. This involved the Department collecting
a sample of waste and identifying the components that
were recyclable and those that were general waste. The
result of this audit indicated the Department generated
and disposed an estimated 26.2 tonnes of waste
material. Of this, it is estimated the Department recycled
12.6 tonnes of general use paper (48 per cent of total
waste) and 3.4 tonnes of glass and plastics (12.9 per
cent of total waste).
Appendices
Reducing the Generation of Waste
The Department is continuing to monitor the waste it
generates and has a program in place to educate staff
on the benefits of recycling. Most of the Department’s
staff have been issued with a desktop paper recycling
bin to maximise recycling opportunities.
The Department encourages staff to:
– print and/or copy double-sided
– throw things in the correct recycle bins to
avoid contamination
– purchase stationery items that are essential,
not just desirable
– distribute memorandums and minutes of meetings
via email rather than hard copies
– notify staff of messages by email rather than
hand written notes
– access the white and yellow pages on the internet
rather than sourcing copies of directories
– sharing newspapers and magazines.
Resource Recovery
During 2004-2005, the Department purchased
221 printer toner cartridges. Of these, 70 per cent were
recycled meaning that the used cartridges were sold to
accredited recycling companies that refill the cartridges
and on-sell them.
The Department’s operations do not generate any
building or construction waste.
Use of Recycled Material
The Department’s purchasing policy requires
business units to purchase general use paper with
a recycled content and purchase recycled toner
cartridges wherever possible.
Appendix 30
Women’s Action plan
– the Department’s progress in employing women is
outlined in the EEO data included in Appendix 7
– the Department’s Spokeswomen delivered several
workshops over the year. The Spokeswomen’s role is
to promote networking among female staff and
suggest strategies and initiatives to DSRD Executive
that improve the workplace for women and
generally raise awareness among managers about
the issues that affect women in the workplace
– WISE, the Department’s Spokeswomen Program,
continued to grow in strength and become a focal
point for both women and men across the
Department. Information seminars, celebrations of
cultural diversity and forums featuring women
leaders where held throughout the year
– there has been an increase in the number of
women employed by the Department, particularly
at higher grades.
Forum Topics included:
– Health and Well Being
– Springboard program
– Networking in the real world – Felicia Mariani –
Dept Tourism
– Networking game – Roma Gastner – Caribu
Education International
– Financial planning and investment forums
– Managing stress in the workplace
– Planning for your future
– OH&S guidelines
– Strategic Women’s Development
– How to organise and chair a successful meeting.
Appendices

125

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Appendix 31 – review of OH&S Policy and Plan
– review of Workers Compensation Policy
Workers Compensation and and procedures
Occupational Health and Safety
– provided accredited training to staff responsible
The Department continued to focus on providing a safe for return to work
and healthy working environment for its staff. – comprehensive management of workers’
The Department’s main goal is to prevent accidents and compensation claims and return to work program
injuries through the systematic identification and control – regular contact with staff and managers in the
of hazards in the workplace and in work practice. Where Workers Compensation claims process
a work related injury, incident or illness has occurred,
– improved follow up of ergonomics assessments
the Department has ensured the correct injury/incident
management, reporting, investigation, and review – facilitation of a Health Week program, covering
procedures are followed and that employees are issues of bullying, harassment, nutrition, eye care
provided with appropriate training. and fitness activities and including fun runs, yoga
and walking activities.
Achievements for the year included:
– quarterly meetings of the Department’s
OH&S Committee
– OH&S and Workers Compensation training including
advice and procedures about the implications of
legislation provided for supervisors and managers
– training on office ergonomics, principles of safe
driving and manual lifting
– ongoing provision of individual workplace
assessments for staff as required
– free flu vaccinations for staff
– training and appointment of First Aid Officers
as required
Access
Office hours: 9.00 am–5.00 pm
Monday–Friday
Principal offices
NSW Government
Department of State and Regional
Development
Grosvenor Place
225 George Street, Sydney, NSW 2000
Tel: +61 2 9338 6600
PO Box N818 Grosvenor Place
Sydney NSW 1220
Corporate and Policy
Level 35 Governor Macquarie Tower
1 Farrer Place, Sydney, NSW 2000
Tel: +61 2 9228 3111
Fax: +61 2 9228 3626
Web: www.business.nsw.gov.au
E: businessweb@business.nsw.gov.au
NSW Trade and Investment Centre
& NSW Country Embassy
Level 44 Grosvenor Place
225 George Street, Sydney NSW 2000
PO Box N818 Grosvenor Place
Sydney NSW 1220
Tel: +61 2 9338 6900
Fax: +61 2 9338 6950
Retail Tenancy Unit
Level 8 St James Centre
111 Elizabeth Street,
Sydney NSW 2000
Tel: +61 2 9223 0466
Fax: +61 2 9223 0187
Free call: 1800 063 333
(New South Wales and some
interstate areas)
E: RTU@business.nsw.gov.au
Parramatta Business Centre
Level 2, 470 Church Street
North Parramatta NSW 2151
PO Box 242
Parramatta NSW 2124
Tel: +61 2 8843 1100
Fax: +61 2 9890 9552
International
London
New South Wales Government
Trade and Investment Office
The Australia Centre
Strand
London WC2B 4LG United Kingdom
Tel: +44 20 7887 5871
Fax: +44 20 7887 5246
Web: www.business.nsw.gov.au
E: invest@nswg.co.uk
Tokyo
New South Wales Government
Department of State and Regional
Development Tokyo
4th Floor, East Tower
Otemachi First Square
1-4-1 Otemachi, Chiyoda-ku
Tokyo
100-0004 Japan
Tel: +81 3 5219 1350
Fax: +81 3 5219 1201
Web: www.nswtokyo.com
E: nakamura@nswtokyo.com
Regional NSW
Albury
620 Macauley Street
PO Box 3415
Albury NSW 2640
Tel: +61 2 6041 4808
Fax: +61 2 6041 4818
Armidale
Suite 6, Level 1, 175 Rusden Street
PO Box 1138
Armidale NSW 2350
Tel: +61 2 6771 3284
Fax: +61 2 6771 3286
Bathurst
235 Russell Street, PO Box 160
Bathurst NSW 2795
Tel: +61 2 6332 6841
Fax: +61 2 6332 1129
Broken Hill
Ground Floor, 32 Sulphide Street
PO Box 786, Broken Hill NSW 2880
Tel: +61 8 8087 8033
Fax: +61 8 8088 5100
Coffs Harbour
Level 1, Coffs Harbour Arcade
36–38 Harbour Drive
PO Box 1028
Coffs Harbour NSW 2450
Tel: +61 2 6651 9945
Fax: +61 2 6658 0352
Dubbo
Level 1
47-59 Wingewarra Street
PO Box 1039, Dubbo NSW 2830
Tel: +61 2 6882 8744
Fax: +61 2 6882 9112
Goulburn
39 Goldsmith Street
PO Box 930, Goulburn NSW 2580
Tel: +61 2 4821 8000
Fax: +61 2 4821 8650
Grafton
Level 1, 50 Victoria Street
PO Box 1385, Grafton NSW 2460
Tel: +61 2 6642 6511
Fax: +61 2 6642 6021
Kariong
Building 16, The Avenue
Mt Penang Parklands
Pacific Highway
PO Box 7096
Kariong NSW 2250
Tel: +61 2 4340 8700
Fax: +61 2 4340 1005
Lismore
Level 3, Rous Water Building
218 Molesworth St, PO Box 146
Lismore NSW 2480
Tel: +61 2 6622 4011
Fax: +61 2 6621 4609
Newcastle
Level 3, 251 Wharf Road
Newcastle NSW 2300
Tel: +61 2 4908 7333
Fax: +61 2 4929 7096
Nowra
57 Worrigee Street, PO Box 112
Nowra NSW 2541
Tel: +61 2 4421 1000
Fax: +61 2 4423 7957
Orange
90 Kite Street, PO Box 1620
Orange, NSW 2800
Tel: +61 2 6360 8400
Fax: +61 2 6361 2400
Port Macquarie
Suite 1, 133-137 Gordon Street
PO Box 2537
Port Macquarie NSW 2444
Tel: +61 2 6583 5647
Fax: +61 2 6583 5285
Tamworth
Level 1, 11-15 Dowe Street
PO Box 1696
Tamworth NSW 2340
Tel: +61 2 6766 1360
Fax: +61 2 6766 1378
Tweed Heads
145 Wharf St, PO Box 851
Tweed Heads NSW 2485
Tel: +61 7 5599 3344
Fax: +61 7 5599 3354
Wagga Wagga
48 Fitzmaurice Street
PO Box 1156
Wagga Wagga NSW 2650
Tel: +61 2 6921 6422
Fax: +61 2 6921 0780
Wollongong
Suite 1, Terrace Level
Crown Tower
200 Crown Street (Mall)
PO Box 5106
Wollongong NSW 2520
Tel: +61 2 4225 9055
Fax: +61 2 4225 9056
Index

127

ANNUAL REPORT 2004-2005 NEW SOUTH WALES DEPARTMENT OF STATE AND REGIONAL DEVELOPMENT
Access 126 Innovation and Technology Unit 18
Aboriginal Business Development Program 30 Internal Audit 111
Appendices 91 Investment Attraction and Development 8
Audit and Review Committee 3 Investment Division 25
Audited Financial Statements 49 Investment Promotion Activities 25
Audit Opinion 50, 68, 80 Land Disposal 111
Australian Technology Showcase 10, 18 Legislation 2
Biobusiness Program 32 Letter of Submission IFC
Biotechnology 20 Manufacturing 26
Business Growth 38 Major Assets 112
Business Strategy Unit 46 Major Works in Progress 112
Charter 2 Movement in Wages 109
Code of Conduct 91 NSW Innovation Council 92
Committee Membership 121 Objectives and Results 8
Committees Established or Abolished 122 Overseas Travel 112
Communications Unit 47 Payment of Accounts 113
Community Economic Development Conference 39 Performance Improvement 4
Consultancies 91 Performance of Executive Officer 120
Consumer Response 91 Policy and Resources Division 42
Controlled Entities 91 Policy Unit 42
Corporate Framework 3 Program Review 4
Corporate Governance 3 Promoting Regional NSW 40
Credit Card Use Certification 92 Privacy and Personnel Information 114
Culture, Recreation and Tourism 22 Publications and Promotional Material 115
Department Functional Structure 15 Purchasing Policy 123
Director General’s Report 5 Regional Development Boards 41
Disability Action Plan 92 Regional Development Division 36
Economic Evaluation and Statistics Unit 43 Regional Headquarters and Operations Centres 25
Equal Employment Opportunity 93 Research and Development 117
Ethnic Affairs Priorities Statement 95 Retail Tenancy Unit 48
Executive Support 48 Risk Management and Insurance 118
Executive Management Committee 3 Senior Executive Services 118
Financial Statements: Senior Management 16
– Department of State and Regional Development 50 Small Business Advisory Services 29
– Ministerial Corporation for Industry 68 Small Business Development Corporation 31
– Small Business Development Corporation 80 Small Business Development Division 28
Freedom of Information 95 Small Business Month 31
Governance Framework 3 Sports Infrastructure and Services and Special Events 23
Government Energy Management Policy 100 Staff Support Services 123
Grants to Non-government Community Organisations 101 Stepping Up Program 32
Guarantee of Service 108 Technology Diffusion 33
Highlights of the Year 8 The Year Ahead 14
Human Resources 44, 108 Trade Services 33
Hunter Advantage Fund 37 Training and Development 123
Illawarra Advantage Fund 37 Waste Reduction 123
Industry Development 21 Women’s Action Plan 124
Industry Division 17 Women in Business Program 29
Information and Communications Technology 26, 111 Workers’ Compensation 125
Other Annual Report requirements
Total Cost: report preparation $21,890
Materiality Complies
Table of contents Complies
Logical sequence Complies
Appropriate layout Complies
Legibility Complies
Appropriate captions Complies
Size ISO A4 Complies
Extension of time granted None
Exemptions from provisions of Act None
Distribution to Parliament Complies
Availability to the public Complies
Price determinations None
Delays to programs None significant
Economic factors affecting
achievement of objectives None significant
Major problems and issues None significant
Matters that could impact
on the succeeding year None significant

ISSN 1327-8177
Published by the NSW Department
of State and Regional Development
Level 35, Governor Macquarie Tower
Sydney NSW 2000

© Contents are copyright Department of State and

Regional Development NSW Government 2005.