Victorian Budget 2014|15

The Hon. Gordon Rich-Phillips MLC Assistant Treasurer

Friday 23 May, 2014

Public Accounts and Estimates Committee 2014-15 Budget Estimates Hearing

• Workplace Accident Compensation and Rehabilitation; • Occupational Health and Safety; • Transport Accident Compensation and Rehabilitation; • Government’s motor vehicle fleet; • Victorian Government Purchasing Board; • Acquisition, reuse or disposal of Victorian Government land

and property; • WoVG accommodation planning and policies; • Superannuation policy for the State; • Regulation of Victoria’s registered housing agencies; and • WoVG DataVic Access Policy and Intellectual Property Policy

Core responsibilities – Assistant Treasurer

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Department of Treasury and Finance outputs: • Budget and Financial Policy Advice • Economic and Financial Policy • GBE Performance Monitoring and Financial Risk Management • Resource Management Services to Government • Land and Infrastructure Investment Management

Statutory Authorities: • Victorian WorkCover Authority (VWA) • Transport Accident Commission (TAC) • Emergency Services Superannuation Scheme (ESSS)

Core responsibilities – Assistant Treasurer

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60.0%

70.0%

80.0%

90.0%

100.0%

110.0%

120.0%

130.0%

140.0%

(1,500.0)

(1,000.0)

(500.0)

-

500.0

1,000.0

1,500.0

Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13

PFIO ($m) NRAT ($m) Actuarial Release Funding Ratio (RHS)

Victorian WorkCover Authority

Financial Performance

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Victorian WorkCover Authority

5

OHS Performance

Victorian WorkCover Authority

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OHS Performance - reported claims

30,489 30,327

28,856 29,107

28,689 28,854

29,628 29,261

28,003

2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Victorian WorkCover Authority VWA Premium Rates Over the Last Decade

2.22%

2.00%

1.80%

1.62%

1.46% 1.387% 1.387% 1.338% 1.338% 1.298% 1.298%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

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Victorian WorkCover Authority

2.75%

2.36%

1.82%

1.668%

1.55% 1.45%

1.298%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

SA 13/14 Tas 13/14 ComCare 13/14 WA 13/14 NSW 13/14 QLD 13/14 VIC 13/14

Comparison of average Australian Premium Rates

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Transport Accident Commission Financial Performance

70%

80%

90%

100%

110%

120%

-1,200

-1,000

-800

-600

-400

-200

0

200

400

600

800

1,000

1,200

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

TAC PERFORMANCE

PFIO $M NRAT $M Actuarial Release $M Funding Ratio % (RHS)

$M

9 9

The Victorian Road Toll

Transport Accident Commission

10 10

Enhanced Crash Investigation Study

Transport Accident Commission

11 11

Emergency Services and State Super Financial Performance as at 30 June 2013

Year to 30 June 2012 Year to 30 June 2013

Total Net Assets $16 774 million

$19 087 million

Members’ accrued benefits $33 002 million

$33 987 million

Funding Ratio ES DB 100 per cent 108 per cent

Funding Ratio SSF 36.2 per cent 39.4 per cent

Investment Returns ES DB 3.0 per cent 14.5 per cent

Investment Returns SSF 1.9 per cent 15.8 per cent

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VicFleet • Realised benefits • Cost of fleet • Fleet safety

Procurement • WoVG contracts • The Victorian Government Purchasing Board

Government Services

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2013-14 2014-15

Q1 – Staffing Services OA* – (July 2013) Probity OA – (Sep 2013) Q2 – Fleet Disposal OA – (Nov 2013) Print OA – (Nov 2013) Stationery OA – (Aug 2013) Electricity <160kWh – Extension Q3 – Post - New Contract – (Jan 2014) Financial Advisory Services OA – (Feb

2014) Fuel OA - (Feb 2014) Gas OA - (Feb 2014) Tax OA - (Feb 2014) Document Exchange BC^ – (Mar 2014) Q4 – Real Estate Facilities Management - New

Contract – (Apr 2014) Elec >160 kWh OA – (to be completed

Jun 2014)

Q1 – Financial Advisory Services (Jul) Fuel (Jul) Print Management Services (Jul) Cash & Banking (Sep) Security Services (Sep) Q2 – Novated Leasing (Oct) Postal Services (Dec) Q3 – Natural Gas (Jan) Motor Vehicles Supply (Jan) Q4 – Probity services (Apr)

Strategic Sourcing Contract Reviews (BP3 Measure: Evaluation and decision on existing or potential whole of Victorian government contracts within agreed timelines

OA*: Opportunity Assessment, is preliminary analysis of options used to inform a future procurement strategy. BC^: Business Case, comprises a detailed analysis of options, including a risk assessment and cost / benefit justification, from which a strategy / plan is recommended.

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Accommodation • Portfolio size • Workplace density • Vacancy rates • Cost

Government Services cont.…

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• Superannuation • Land & Property • Better Financial Management Policy • Housing Registrar

Other/Departmental

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• DataVic Access Policy • Intellectual property (IP) policy • National Disability Insurance Scheme

Other/Departmental

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