Department of Sustainability, Environment, Water, Population and Communities

Executive Summary

Secretary’s Review

Over the year 1 July 2012 to 30 June 2013 the department supported the delivery of several major government policy initiatives to promote the conservation and sustainable use of Australia’s natural resources. The department continued to deliver a diverse ongoing work program spanning environmental regulation, program delivery and scientific research. Internally, a major focus was placed on improving the efficiency and effectiveness of the department, including reducing staffing levels to meet government budget targets.

A major achievement in water reform was the passage into law of the Murray–Darling Basin Plan on 22 November 2012. After several years of intense stakeholder consultation, the plan seeks to balance the needs of communities and farmers with the need to sustain the ecological functioning of the Murray–Darling system. It sets sustainable limits for the use of water to ensure healthy rivers, strong communities and sustainable food and fibre production for current and future generations. In 2012–13 a record amount of 1272 gigalitres of Commonwealth environmental water was delivered across the Basin, helping to benefit its rivers, wetlands and floodplains.

In July 2012 four marine bioregional plans were finalised under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), aimed at helping improve how our oceans are managed. This was followed by the proclamation of the Commonwealth marine reserves network in November 2012.

As part of the broader national environmental regulation reform agenda, the department further progressed a ‘big-picture’ approach to environment and heritage protection through strategic assessments under the EPBC Act. This approach provides greater certainty for future investment by determining where development can occur, the type of development that will be allowed and the conditions under which it may proceed. Once strategic assessments are in place, individual developments can proceed without further need for assessment under the EPBC Act. For example, the strategic assessment of proposed urban development in Gungahlin, ACT undertaken in 2012, provided for the streamlined approval of six new suburbs with up to 13 000 homes.

The department continued to support substantial government investments in Australia’s unique biodiversity through the Caring for our Country and the Biodiversity Fund programs. These programs aim to achieve healthy, well-managed and resilient ecosystems in a changing climate. In December 2012 a Prospectus of Investment was released by the Minister for Sustainability, Environment, Water, Population and Communities. This first national biodiversity investment prospectus identified investment priorities across the Caring for our Country and Biodiversity Fund programs.

In regions and cities the department worked with state government agencies, local government and industry to implement the National Waste Policy, including making major inroads into the management of e-waste through the National Television and Computer Recycling Scheme.

Several of the department’s programs are delivered in partnership with Indigenous communities. A major highlight in May 2013 was the hosting of a conference in Darwin to establish the World Indigenous Network for land and sea managers. This fulfilled an Australian commitment from the Rio+20 United Nations Conference on Sustainable Development held in Brazil in June 2012.

In May 2013 the first Sustainable Australia Report was released. This report included a wide ranging set of environmental and economic indicators to track the nation’s progress over time. Development of the report was overseen by the National Sustainability Council, which was established in late 2012 and is supported by

the department.

The department was active on the international stage in pursuing matters of importance to Australia. Among other priorities, the department coordinated the Australian Government’s negotiations for the Minamata Convention on Mercury, a critical step in managing this potent neurotoxin. The department also continued to lead the Southern Ocean Research Partnership and to promote non-lethal whale research in the Southern Ocean. In a world first, Australia joined forces with scientists from Chile, New Zealand, the United Kingdom and the United States to use acoustic technology to successfully find, track and study the Antarctic blue whale, the largest creature on Earth.

Outcome 1: Biodiversity and ecosystems

Through the National Environmental Research Program (NERP) $20 million was invested in 2012–13 for environmental research. The research hubs established under the program worked collaboratively with the department to deliver world-class research to inform decision making and environmental policy. Examples include the rediscovery of a missing critically endangered frog species, input to the EPBC Act offsets calculator and approaches for monitoring (particularly biological data) with the oil and gas industry.

The department supported significant investments in natural resource management programs including through the Caring for our Country program. This included the declaration of eight new Indigenous Protected Areas during 2012–13, increasing the National Reserve System by almost 10 million hectares.

Under the Working on Country program, more than 690 Indigenous rangers were engaged during 2012–13 to undertake significant environmental management and heritage conservation activities.

The department delivered the first stream of the Regional Natural Resource Management (NRM) Planning for Climate Change Fund which will support the inclusion of climate change adaptation and mitigation strategies into regional NRM plans.

Through the Great Barrier Reef Rescue program $53.68 million was provided to assist land managers in Queensland adopt improved land management practices to reduce nutrients, pesticides and sediments entering the reef lagoon.

Australia participated in the 64th annual meeting of the International Whaling Commission in Panama in July 2012. The meeting was successful in advancing Australia’s conservation and governance reform objectives.

Bush Blitz, a joint program between the department and BHP Billiton, completed its survey schedule across selected National Reserve System properties. Since 2009, 650 new species have been discovered and recorded under this program.

Outcome 2: Sustainable population and communities

The landmark National Television and Computer Recycling Scheme completed a successful first year with more than 480 free television and computer collection services delivered around Australia. To date, five arrangements have been approved to administer the scheme with all liable parties meeting their obligations to join these arrangements. This is the first co-regulatory product stewardship scheme established under the Product Stewardship Act 2011.

The department delivered the Suburban Jobs Program, which involves the practical demonstration of place-centred policies to promote community sustainability. Following a competitive grant round, funding was awarded in 2012–13 to three successful Suburban Jobs program projects which were announced to support local employment opportunities. Funding will be provided to these projects over three years (from 2012–13 to 2014–15).

Outcome 3: Antarctica

The Australian Antarctic science program undertook 61 science projects involving researchers from 36 Australian institutions together with 71 international institutions from 23 countries. Overall, 80 students (53 PhD candidates) were associated with this work.

Australia also continued to promote its position within the Antarctic Treaty system by active participation in its various elements. At the 36th Antarctic Treaty Consultative Meeting (ATCM) in Brussels in May 2013, Australia secured agreement to a multi-year strategic work plan for the ATCM, an Antarctic Clean-Up Manual, several revised protected area management plans and site-specific guidelines, and two new guidelines for sites frequently visited by tourists.

Outcome 4: Sustainable Water

In addition to the Murray–Darling Basin Plan, the Intergovernmental Agreement between the Commonwealth and Basin states on Implementing Water Reform in the Murray–Darling Basin came into effect on 5 June 2013.

The Strengthening Basin Communities program invested in more than 57 projects across the Murray–Darling Basin enabling local government authorities and urban water providers to support projects that improve water security by reducing demand on potable water supplies.

A new Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development was established, advancing the delivery of independent scientific advice to facilitate robust regulation of the potential impacts of development on water resources. The department worked closely with the statutory committee providing secretariat support and technical advice to assist the committee to meet its responsibilities.

Through the National Water Security Plan for Cities and Towns $56 million was invested to upgrade older water systems, install new infrastructure and support practical projects that save water or reduce water losses. This delivered a combined capacity capable of yielding 25 gigalitres per year of potable water savings.

The department supported the investment of $566.6 million under the national Sustainable Rural Water Use and Infrastructure Program in projects promoting better rural water use, management and efficiency, including water knowledge and market reform.

The department worked with the South Australian government to designate Piccaninnie Ponds Karst Wetlands as Australia’s 65th Ramsar site.

Outcome 5: Environmental Protection and Heritage Conservation

The department continued to assess large, complex and economically significant projects from all industry sectors under the EPBC Act in 2012–13.

There were six threatened ecological community listings in 2012–13 including the first ever marine ecological community, the Giant Kelp Marine Forests of South-East Australia. There are now 1756 species, 62 ecological communities and 20 key threatening processes listed under the EPBC Act.

The Your Community Heritage program provided $8.8 million (GST exclusive) to 232 projects to protect, conserve and enhance the values of significant historic heritage. The program supports communities to celebrate their local heritage and share the local stories and traditions that tell our national story. The Indigenous Heritage Program provided $4.9 million (GST exclusive) to 53 projects across Australia to support the identification, conservation and promotion of Indigenous heritage.

The 16th meeting of the Conference of the Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora was held in Bangkok, Thailand, in March 2013. Nine Australian species proposals were adopted including stronger protection for the freshwater sawfish. Five shark and two manta ray species were listed on Appendix II of the Convention.

The department participated in Operation CETUS, a national cetacean compliance operation aimed at protecting migrating whales from disturbance and to enforce whale approach limits. The operation involved 123 separate compliance and enforcement activities.

Outcome 6: Commonwealth environmental water

In 2012–13 a total of 1272 gigalitres (79 per cent of the total volume available) of Commonwealth water was delivered to the environment in the Murray–Darling Basin. This improved water quality, connected rivers to floodplains, and helped maintain food chains and fish movement. Wetlands were filled benefitting native fish, birds and other native animals. The recovery of the environment following the drought was supported, building resilience in preparation for the next drought.

Corporate outcome: Organisational effectiveness

Work continued in 2012–13 to strengthen the department’s corporate systems and business practices. The department has maintained a strong focus on building its capability in the areas of leadership, cross-divisional relationships, risk management and accountabilities, change management and broadening its approach to policy development.

In June 2013 the department’s revised Strategic Plan 2013–2017 was released. The strategic plan sets out the key priorities for the department and how its staff will work, and incorporates the department’s approach to embedding the three pillars of sustainability—economic, social and environmental—in its business.

The department has explored ways to improve organisational and administrative capability. In the online business environment, the department worked with the Department of Education Employment and Workplace Relations to implement a standard parliamentary workflow solution across government to deliver better management of parliamentary documents.

Redevelopment continues on the department’s website, the preeminent tool to communicate and engage with stakeholders. The rollout of a full electronic document record management system has commenced and will become fully operational in 2013–14.

The many achievements over the past year are the product of considerable work by a very committed team of professionals. The department is well served in its mission by committed and dedicated officers at all levels and across all divisions.

Dr Gordon de Brouwer

Secretary

The Hon Greg Hunt MP

Minister for the Environment
Parliament House
CANBERRA ACT 2600
Dear Minister
In accordance with relevant statutory requirements, I present you with the annual report for the Department of Sustainability, Environment, Water, Population and Communities and the Commonwealth Environmental Water Office for the financial year ended 30 June 2013. This also incorporates the annual report of the Natural Heritage Trust of Australia Act 1997.
Please note the annual report retains the department’s previous title to reflect the name during the reporting period. This is a factual account of the department’s activities during the period 1 July 2012 to 30 June 2013 under the previous Government and Secretary.
The report has been prepared in accordance with the Requirements for Annual Reports for Departments, Executive Agencies and FMA Act Bodies, as approved by the Joint Committee of Public Accounts and Audit under subsections 63(2) and 70(2) of the Public Service Act 1999. Subsection 63(1) of the Public Service Act 1999 requires you to lay a copy of this annual report before each House of the Parliament on or before 31 October 2013.

I certify that this agency complies with the Commonwealth Fraud Control Guidelines.

Yours sincerely

[signed]
Gordon de Brouwer

10 October 2013

GPO Box 787 Canberra ACT 2601 • Telephone [phone] • Facsimile 02 6274 1666 • www.environment.gov.au

Department overview

Our mission

To advance a sustainable Australia: our environment, water, heritage and communities.

Outcome and program structure

OUTCOMES	PROGRAMS
Outcome 1: Biodiversity and Ecosystems The conservation and protection of Australia’s terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.	Program 1.1: Sustainable Management of Natural Resources and the Environment. Program 1.2: Environmental Information and Research. Program 1.3: Carbon Pollution Reduction – Land Sector Initiatives.
Outcome 2: Sustainable Population and Communities Improved sustainability of Australia’s population, communities and environment through coordination and development of sustainable population and communities policies, and the reduction and regulation of waste, pollutants and hazardous substances.	Program 2.1: Management of Hazardous Wastes, Substances and Pollutants. Program 2.2: Sustainable Communities.
Outcome 3: Antarctica Advancement of Australia’s strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region.	Program 3.1: Antarctica: Science, Policy and Presence.
Outcome 4: Sustainable Water Adaptation to climate change, wise water use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water resources.	Program 4.1: Water Reform.
Outcome 5: Environmental Protection and Heritage Conservation Increased protection, awareness and appreciation of Australia’s environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, indigenous and historic places of national and World Heritage significance.	Program 5.1: Conservation of Australia’s Heritage and Environment. Program 5.2: Environmental Regulation.
Outcome 6: Commonwealth Environmental Water Protection and restoration of environmental assets through the management and use of Commonwealth environmental water.	Program 6.1: Commonwealth Environmental Water.
Corporate Outcome: Organisational Effectiveness	Improve the effectiveness and efficiency of our department.

Portfolio overview

Sustainability, Environment, Water, Population and Communities portfolio
The Hon. Tony Burke MP Minister for Sustainability, Environment, Water, Population and Communities			The Hon. Amanda Rishworth MP Parliamentary Secretary for Sustainability and Urban Water
Department of Sustainability, Environment, Water, Population and Communities Paul Grimes—Secretary
Malcolm Thompson Deputy Secretary	Kimberley Dripps Deputy Secretary	David Parker Deputy Secretary		Corporate Outcome: Organisational effectiveness	Portfolio Statutory Authorities/Positions
Environmental Quality Division First Assistant Secretary: Diana Wright	Environment Assessment and Compliance Division First Assistant Secretary: Dean Knudson	Australian Antarctic Division First Assistant Secretary: Tony Fleming		Corporate Strategies Division First Assistant Secretary: Dianne Carlos	Bureau of Meteorology Director: Rob Vertessy
Sustainability, Policy and Analysis Division First Assistant Secretary: Mark Flanigan	Supervising Scientist Division First Assistant Secretary: Alan Hughes	Commonwealth Environmental Water Office First Assistant Secretary: David Papps		Policy and Communications Division First Assistant Secretary: Stephen Oxley	Great Barrier Reef Marine Park Authority Chief Executive Officer: Russell Reichelt
Biodiversity Conservation Division First Assistant Secretary: Sean Sullivan	Wildlife, Heritage and Marine Division First Assistant Secretary: Alex Rankin	Water Efficiency Division First Assistant Secretary: Mary Harwood			Sydney Harbour Federation Trust Executive Director: Geoff Bailey
Parks Australia Division Director of National Parks: Peter Cochrane		Water Reform Division First Assistant Secretary: Tony Slatyer			Murray–Darling Basin Authority Chief Executive: Rhondda Dickson
International Executive: Donna Petrachenko		Office of Water Science First Assistant Secretary: Suzy Nethercott-Watson			National Water Commission Chief Executive Officer: James Cameron

Note: On 18 September 2013, a new Ministry and Government were sworn in by the Governor-General.

Financial summary

During the 2012–13 financial year, the department reported a departmental comprehensive loss of $14.56 million. This was primarily due to non-cash provisions for restoration obligations (make good) for the Australian Antarctic regions. The result is within the Minister for Finance and Deregulation’s approved operating loss.

Expenditure on activities administered by the department on behalf of the Government totalled $968.2 million during 2012–13. This expenditure related to grants, suppliers, and the write down and impairment of water assets (non cash). A comprehensive list of the grant expenditure by program is provided in the department’s 2012–13 financial statements at Note 18C.

The department managed administered assets on behalf of the Government of $2.99 billion. This is largely comprised of water entitlement assets of $1.87 billion, investments in two other portfolio entities of $561.5 million and a share of land and buildings, other property, plant and equipment in the River Murray Operations joint venture of $506.86 million.

The Australian National Audit Office has issued an unmodified audit opinion for the department’s 2012–13 financial statements.