Simpler. Safer. Smarter. - NTCDA394442-FCA6-D0E8-6B78... · National Transport Commission Annual...

National Transport Commission

Annual Report 2010–11Simpler. Safer. Smarter.

Level 15/628 Bourke StreetMELBOURNE VIC 3000Tel: 03 9236 5000 Fax: 03 9642 [email protected]

ISBN 978-1-921604-20-1

Printed in Australia on an environmentally responsible paper sourced from sustainably managed forests.

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Our 2011 report coverFeatured on the cover of this year’s annual report is NTC Manager Legal and Commission Secretariat, Keith Ryan (pictured right, with Lou Theo from Wettenhalls). Keith has been a key member of the NTC team developing the proposed legislation that the new National Heavy Vehicle Regulator will administer. This photo was taken during the Heavy Vehicle National Laws consultation.

Read more about the consultation and regulator project on pages 14 and 16 of this report.

Legend used throughout this reportNTC’s reforms often deliver against more than one of our strategic objectives. To assist readers in understanding how our projects link to our objectives, we have placed icons at the bottom of each article in the ‘Meeting our objectives’ section of this report. The icons are as follows:

a reform which improves transport productivity

a reform which improves safety in the transport sector

a reform which improves the environmental outcomes of the transport sector

7 October 2011

The Hon. Anthony Albanese MPThe Hon. Catherine King MPThe Hon. Gladys Berejiklian MPThe Hon. Duncan Gay MLCThe Hon. Terry Mulder MPThe Hon. Dr Denis Napthine MPThe Hon. Annastacia Palaszczuk MPThe Hon. Craig Wallace MPThe Hon. Troy Buswell MLAThe Hon. Rob Johnson MLAThe Hon. Patrick Conlon MPThe Hon. Tom Kenyon MP The Hon. David O’Byrne MPThe Hon. Gerald McCarthy MLASimon Corbell MLAThe Hon. Steven Joyce MP

Dear Ministers,

In accordance with the National Transport Commission Act 2003, I am pleased

to submit the National Transport Commission’s (NTC) Annual Report for the year

ended 30 June 2011.

This document reports on the NTC’s activities in pursuing national transport

reform during the financial year, in partnership with government, industry and the

wider community.

During the past year, the NTC has successfully advanced key elements of the

Council of Australian Governments’ (COAG) national reform agenda. This includes

working towards national legislation for the heavy vehicle and rail industries,

contributing to the development of Australia’s first ever national ports strategy

and leading the pricing work stream of the COAG Road Reform Plan which is

investigating a more efficient and sustainable road pricing system.

The NTC has also maintained a continued focus on implementing the

recommendations from the 2009 Australian Transport Council review of the NTC.

I would like to thank you for leading the development of national transport reform

and I look forward to continuing to work with you to ensure the best transport

outcomes for Australia.

Greg Martin PSM Chairman

* Liveability – ‘the degree to which a location supports quality for life, health and wellbeing for the people who live, work or visit there’. A sustainable population strategy for Australia. Commonwealth Government 2011.

Who we areThe National Transport Commission (NTC) is an inter-governmental agency charged with improving the productivity, safety and environmental performance of Australia’s road, rail and intermodal transport system.

State and territory governments contribute 65 per cent of the NTC’s funding, and the Commonwealth Government provides 35 per cent. The NTC has 42 staff and is led by six Commissioners.

The NTC has one office which is located in Melbourne.

What we doAs an independent statutory body, the NTC develops and submits reform recommendations for approval to the Australian Transport Council (ATC), which comprises federal, state and territory transport ministers. The NTC also plays an important role in implementation planning to ensure reform outcomes are realised on the ground, as well as coordinating, monitoring, evaluating and maintaining the implementation of approved reforms.

Our visionAustralia’s prosperity and community liveability* is enhanced by the movement of people and goods.

Our missionTo champion and facilitate changes that improve productivity, safety and environmental outcomes.

Our roleTo develop national regulatory and operational reform and implementation strategies for road, rail and intermodal transport.

Our strategic objectivesThe impacts of our reforms are objectively assessed against the following policy objectives:• improve transport productivity• improve environmental outcomes• support a safe transport system• improve regulatory efficiency.

NTC Annual Report 2010–11 1

Contents

Chairman’s report 3

CEO’s report 5

Highlights 2010–11 6

Measuring our performance 8

Meeting our objectives 15Improving transport productivity 15

Providing a safe transport system 23

Protecting the environment 30

Government participation in NTC reforms 33

Australian Transport Council and substructure 38

Human resources management 40

Corporate governance 45

Financial statements 49

Appendices 76Appendix A: Report under the Freedom of Information Act 1982 76

Appendix B: Report under the Commonwealth Electoral Act 1918 76

Appendix C: ATC submissions 76

Appendix D: Report under the Environment Protection and Biodiversity Conservation Act 1999 77

Appendix E: Annual adjustment of heavy vehicle charges 78

Appendix F: Reports released during 2010–11 79

Appendix G: Report on Commonwealth Disability Strategy 79

Glossary 82

Index 84

Compliance index 87



2 NTC Annual Report 2010–11


Chairman’s report

A well functioning transport system is fundamental to a thriving and productive nation. In 2008, the year I joined the Commission, the NTC submitted a National Transport Policy Framework to the ATC. The framework outlined a bold vision of what Australia’s transport system should look like in the future, recognising that while our system had many merits, change was needed. Freight bottlenecks, urban congestion, a lack of alignment in laws, planning and investment across different tiers of government, carbon emissions and safety were all identified as key issues to be addressed. Importantly, the framework proposed solutions to address these complex challenges, many of which are on our work program today.

The National Transport Policy Framework was designed to keep Australia moving by creating a transport system that was simpler, safer and smarter. Reflecting on the framework and our achievements over the past year, it is exciting to see just how far we have come. The establishment of national regulators for road and rail (key framework recommendations) is well underway. These reforms will significantly reduce red tape, improve productivity, increase safety and introduce consistency in heavy vehicle and rail safety laws across the country. They are truly historic reforms that take Australia a step closer to realising the goal of becoming a seamless national economy.

Development of a National Ports Strategy is another framework recommendation that will change the transport industry for the better. While the NTC and Infrastructure Australia are still finalising the details of the strategy in consultation with stakeholders, the benefits of the strategy are clear. Effective implementation of the strategy will enable Australia to move away from the old ‘silo approach’ to ports planning. Instead, we will move towards nationally collaborative long-term planning, which will drive our supply chains to be more productive, safe and sustainable. Under the proposed strategy all parties involved in ports will be encouraged to cooperate, share knowledge and holistically plan ports and their road and rail links.

It is also pleasing to see the advancements made throughout the year towards creating a more market-based system of pricing for heavy vehicles. With the Australian economy facing a potential trebling in freight demand by 2050, it will be increasingly important to ensure road infrastructure investment keeps pace with demand and is targeted where it is needed the most.

As a nation, we have made strong progress in creating a simpler, safer and smarter transport system, but there is more to be done. Our strategic plan for the year ahead makes it clear that the NTC will be looking to collaborate with governments, industry and the community to put the reform ‘building blocks’ in place for a productive, low emissions and safe transport system across all modes and users. Infrastructure pricing, intelligent transport systems, rail freight, ports and supply chain reform are among the key themes identified in the forward work program. Importantly, our work program will be underpinned for the first time by a program logic model that will help us to monitor, evaluate and improve the effectiveness of reform outcomes. This will help us to continuously improve as an organisation and ensure our reforms make a difference on the ground.

I would like to commend Nick Dimopoulos and his team for their outstanding achievements over the past year. I would also like to thank my fellow Commissioners and our stakeholders for being an integral part of our transport reform journey. The NTC looks forward to continuing to work in partnership with our shareholders and stakeholders to champion and facilitate changes that will create a simpler, safer and smarter transport system for all Australians in the year ahead.


Creating a simpler, safer and smarter transport system


Chief Executive’s report

The last twelve months have been an exciting and productive time at the NTC. We have focused on mobilising our resources to consistently deliver on one of our most ambitious work programs to date. This includes successfully navigating tight timeframes, diverse stakeholder interests, complex policy issues and new governance structures while still making significant progress on key reforms.

The release of the proposed Heavy Vehicle National Law for public consultation during the year is an achievement we are immensely proud of. It is the culmination of considerable work on consolidating 12 model laws and resolving over 360 variations in law across the country in partnership with our stakeholders. More importantly, it is a significant step in the journey towards implementing a single, National Heavy Vehicle Regulator for Australia. Implementation of the regulator will mean a safer and more productive heavy vehicle industry. It will put an end to the costly and confusing variations in heavy vehicle laws across the country, making it easier for industry to operate across state and territory borders.

There has also been significant progress on the proposed Rail Safety National Law, with the NTC set to release the proposed law for public consultation on schedule in the next financial year. Like the National Heavy Vehicle Regulator project, the National Rail Safety Regulator project has the capacity to revolutionise Australia’s transport industry. The proposed law will remove the inconsistency in legislation that currently exists and facilitate the sharing of best practice in safety across the country - benefits well worth striving for.

We have continued to be a key contributor to the COAG Road Reform Plan (CRRP), using our pricing expertise and links to international pricing experts to help the CRRP Project Office explore the feasibility of a fairer and more productive system of road pricing. We have also advanced, in partnership with Infrastructure Australia, the development of a National Ports Strategy—a first for ports-

planning in Australia—as well as finalising a national strategy on the use of technology in the road freight industry.

Throughout all of our reforms, we have maintained a focus on implementing the findings of the 2009 NTC Review. As required by the review, we have developed a performance reporting framework to assist us to better track reform outcomes and begun implementation planning on key reforms (such as the Performance Based Standards Scheme). We are strengthening our credentials as a “centre of excellence” for transport reform through links with national and international thought leaders, strategic secondments and through the best practice approach we take to our reforms. We have also begun laying the foundation for future reforms, by beginning the Smart transport for a growing nation project. This project will identify the next wave of regulatory and operational reforms required to enhance the performance of Australia’s transport system.

I would like to thank NTC staff for their dedication and commitment throughout a busy and productive year. I would also like to acknowledge governments, unions, industry and the project offices for the regulator and CRRP projects for working so constructively with us. Without the involvement and support of our shareholders and stakeholders, we could not have achieved what is outlined in this year’s annual report.

We look forward to continuing to work in partnership with industry and officials to support the newly formed Standing Council on Transport and Infrastructure—which replaces ATC—to create a safer, more productive and more environmentally-friendly transport system.

Nick Dimopoulos Chief Executive

Delivering on priority projects and laying the foundation for the future


The NTC is playing an important role in the Council of Australian Governments Road Reform Plan (CRRP) to ensure that national heavy vehicle road prices promote the efficient, safe and sustainable use of infrastructure, vehicles and transport modes.

The NTC is leading the project’s pricing workstream and is responsible for exploring how road prices for heavy vehicles could be developed under alternative pricing models, and the economic benefits that could be expected from changes in road user behaviour.

Key milestones the NTC achieved during the year included:

• release of the Heavy vehicle pricing options: development and assessment framework discussion paper for public consultation in August 2010

• release of the Modelling the marginal cost of road wear research paper in partnership with Austroads in May 2011

• release of the National Road Freight Study in June 2011, which measures how changes to heavy vehicle charging methods could impact the decisions made by transport operators and logistics managers in carrying out Australia’s freight task.

All of the above work was critical to informing the development of the CRRP feasibility study.

Unlocking greater productivity from the road network

Highlights 2010-11

A historic milestone was achieved in February 2011 when the NTC, in partnership with the National Heavy Vehicle Regulator Project Office, released the proposed Heavy Vehicle National Law and accompanying regulatory impact statement (RIS) for public comment.

The proposed law and RIS are the culmination of significant work to consolidate existing model legislation into the Heavy Vehicle National Law.

The proposed law paves the way for a fairer system of law that will make it easier for the heavy vehicle industry to work across state and territory borders. It will also result in substantial savings with the RIS cost benefit analysis estimating implementation of the new laws will deliver around $12.4 billion worth of savings over 20 years.

Following the release of the proposed laws and RIS, the NTC conducted 18 information forums throughout Australia to explain the proposed changes and seek feedback. Over 750 stakeholders attended the forums, providing very constructive feedback on the proposed law.

The NTC will now review all the feedback received and develop a final RIS and Heavy Vehicle National Law to be submitted to transport ministers for approval by the end of 2011.

Australia currently has seven rail safety regulators across eight states and territories, all with their own rail safety laws.

In December 2009, the Council of Australian Governments (COAG) agreed to establish a National Rail Safety Regulator to modernise Australia’s rail safety regulatory system, as part of a suite of reforms to enhance the productivity, safety and sustainability of our transport industry.

The NTC is playing a pivotal role in this project by developing the national legislation that the regulator will administer. The NTC has been consulting with industry, governments and unions to develop a RIS and the national legislation that the regulator will administer. The proposed law will remove the inconsistency in legislation that currently exists and facilitate the sharing of best practice in safety across the country.

During the year, the NTC made significant progress towards reaching agreement with stakeholders on the proposed law. The NTC is on track to release the Draft Rail Safety Regulator Law Regulatory Impact Statement and Draft Rail Safety Regulator Law for public consultation on 18 July 2011.

Productivity and safety boosted under proposed Heavy Vehicle National Law

National Rail Safety Regulator on track


Australia needs a national collaborative approach for the future development and planning of its port and freight infrastructure.

With the country’s ports and related landside logistic supply chains facing major challenges—such as a strong projected growth in trade, urban encroachment and congestion—long-term planning is essential to protect freight corridors, boost productivity and attract greater private sector investment.

NTC and Infrastructure Australia (IA) have been working closely with stakeholders throughout the year to develop a National Ports Strategy. The proposed strategy is now in its final stages of development and will be submitted to COAG for approval later in 2011.

The strategy is a vital part of the comprehensive national freight strategy being developed by NTC and IA, which aims to provide an overarching national freight plan for Australia.

The widespread uptake of technology in the road freight industry could improve road safety, reduce transport costs and cut emissions.

To facilitate wider uptake of smart technologies and give industry the confidence it needs to invest in these devices, the NTC developed and finalised a National in-vehicle telematics strategy: The road freight sector 2010-2030. The strategy was prepared in consultation with stakeholders and is designed to provide a clear and consistent policy for technology use.

The NTC also finalised a policy paper titled Electronic systems for heavy vehicle driver fatigue and speed compliance. The policy paper provides a way forward for industry and regulators to allow the voluntary use of electronic work diaries to monitor heavy vehicle work and rest hours. It also addresses the use of technology to monitor speed compliance.

Leading the debate on best practice reform

National Ports Strategy to protect freight corridors

Smart technology strategy finalised

Throughout the year, the NTC was invited to present at a number of high profile events. Key highlights include:

Asia-Pacific Economic Cooperation (APEC) Japan 2010: NTC Chairman Greg Martin presented on ‘Heavy vehicle road pricing reform in Australia – unlocking productivity and investment’. Mr Martin also presented at a range of other events during the year including AusRail 2010 and the 8th International Conference on Managing Fatigue in transportation, resources and health.

National Transport Development Policy Committee, India: NTC Deputy Chairman Ian Johnston presented on transport reform in Australia.

CEDA State of the Nation 2011–Rethinking Australia: Chief Executive Nick Dimopoulos presented on Australia’s transport challenges and the work underway to address these challenges. Mr Dimopoulos also presented at a range of other industry events throughout the year including the Australian Logistics Council Forum 2011.

Federal Motor Carrier Administration’s Motor Carrier Safety Advisory Committee (United States of America): Chief Strategy Officer Paul Sullivan presented on Australia’s experience of heavy vehicle fatigue reform. Mr Sullivan also met with other key US transport research institutes and government departments to share knowledge on best practice transport reform.

Australasian Transport Research Forum: NTC Commissioner Frank Muller and Senior Manager Neil Wong hosted a panel discussion to stimulate debate among transport researchers, policymakers and practitioners on the best way to turn research into policy.

United Nations Conference on Trade and Development (UNCTAD) Multi Year Expert Meeting: Chief Policy Officer Meena Naidu presented on Australia’s transport experience; in particular, the nation’s future transport challenges and the reforms that will be used to address these challenges.


Measuring our performance


Moving towards outcomes-based performance reporting

Responding to recommendations of the Review of the NTC 2009, the NTC developed an outcomes-based performance reporting framework for transport reform, linked to the NTC’s Inter-Governmental Agreement (IGA) goals. The ATC subsequently endorsed the Transport Reform Outcomes Framework in May 2011.

The NTC’s Strategic Plan 2011/12–2013/14 sets out intermediate objectives that match IGA goals: productivity, safety, environment and regulatory efficiency. It also recognises that there will need to be trade-offs between some objectives, and so an optimal balance is sought1. The intermediate objectives form a starting point for outcomes-based performance reporting.

The NTC acknowledges the difficulty in attributing the contribution of individual reforms to broad national transport goals2, particularly when responsibility for implementing a reform is shared with governments and stakeholders. Additional external factors, such as implementation issues, can also have a major impact on outcomes.

Nevertheless, the NTC is committed to implementing the Transport Reform Outcomes Framework and establishing new methods for measuring and reporting on its performance against the key transport reform objectives. As the NTC reforms are increasingly designed using an outcomes-based program logic model, we will be able to attribute outcomes (effects) to reforms (causes) with greater confidence.

These methods will be developed and progressively embedded into reforms.

How our performance impacts outcomes

Productivity outcomesIn contrast to a steady increase in real private transport costs, longer-term road and rail freight costs have fallen. (Figure 1).

Previous NTC reforms focusing on network utilisation (enhanced vehicle access), vehicle productivity (increasing freight loads), and vehicle utilisation (high productivity vehicles) have helped limit the growth of operating costs and enhanced comparative productivity. However, further productivity reform is essential to support continued economic growth and maintain downward pressure on the cost of goods and services.

The establishment of the National Heavy Vehicle Regulator and the introduction of Performance Based Standards (PBS) for High Productivity Vehicles (HPV) are major reforms that are expected to contribute to improving land freight productivity in the coming years.

Through PBS, the transport industry can bring forward innovative vehicle design ideas that may achieve higher productivity and better safety.

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Figure 1: Real transport costs (index 1997/98)

Source: BITRE and ABS

1 NTC Strategic Plan 2011/12–2013/14

2 Transport Reform Outcomes Framework working paper, December 2010


Safety outcomesAustralia has made good progress in road safety performance with the long-term trend in fatalities steadily declining (Figures 2 & 3). However, more needs to be done. The National Road Safety Strategy 2011–2020 set an ambitious target of reducing road deaths and serious injuries by at least 30 per cent by 2020. To achieve this will require more than just doing more of the same: rather a transformation in the approach to road safety is required. One way the NTC intends to contribute to this is by increasing partnerships with the private sector to explore opportunities to promote safety.

Recent NTC reforms have focused on safer drivers (Fatigue Management 2006), safer vehicles (PBS; Heavy Vehicles Braking Strategy) and safer speeds (Australian Road Rules; Heavy Vehicle Compliance and Enforcement). Heavy vehicle driver fatigue reforms have achieved some successes, with National Transport Insurance (a major insurer of heavy vehicles) reporting, in a study of crashes in 2009, that fatigue-related serious truck crashes had reduced by 50% since 20073.

‘ … whilst it was established in the 2007 [Major Accident Investigation Report] that fatigue was found to be the accident cause in 20.3% major crashes, this improved substantially to 10% [in 2009].’

Source: National Truck Accident Research Centre, National Transport Insurance

The NTC’s current reforms aimed at contributing to better safety include:

• the establishment of the National Heavy Vehicle Regulator and the National Rail Safety Regulator

• the updating of the national medical standards for road and rail transport to ensure the health and fitness of all drivers and rail safety workers

• developing a National Heavy Vehicle Compliance Strategy to improve road law compliance and safety. The NTC will work in collaboration with industry and the National Heavy Vehicle Regulator to encourage cultural and operational change

• building partnerships with businesses to explore opportunities to promote safety.


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Figure 2: National road fatalities

Source: BITRE and National Road Safety Strategy 2011–2020

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Figure 3: Land transport fatalities by mode

Source: BITRE

3 Owen P Driscoll, 2011 Major Accident Investigation Report, National Truck Accident Research Centre, National Transport Insurance, 2011


Environmental outcomesRising greenhouse gas emissions from transport presents a major challenge to meeting national greenhouse gas reduction targets. Improvements in engine efficiencies and the rise of smaller engines have contributed to a levelling out of emissions growth across the passenger fleet (Figure 4). However, more clearly needs to be done across all vehicle types.

The NTC’s Twice the Task report found that the land transport task will almost double between 2000 and 2020. Doing nothing will result in another 50,000 trucks on Australian roads and continue to place pressure on Australia’s ability to reduce emissions.

Previous NTC reforms have sought to encourage the early uptake of new environmental technologies (cleaner engines) and to remove any regulatory barriers to improving environmental performance of the heavy vehicle fleet (allowing higher axle weights).

A 2008 discussion paper focused on potential ways to reduce greenhouse gas emissions from freight transport. Additionally, the NTC has also published information papers on carbon emissions from light vehicles in 2009 and 20114. For example, the Australian Government is introducing carbon emission standards for light vehicles and the information papers can inform debate about specific targets.

Environmental outcomes are intrinsically linked with productivity and especially with national road and rail freight productivity reforms that reduce the number of vehicle trips and the amount of fuel burned. Many NTC reforms are focused on both productivity and environmental objectives, such as reforms for Higher Mass Limits, PBS and improved access for B-doubles, all of which have limited the impact of freight growth.

Regulatory efficiency outcomesThe NTC aims to improve regulatory efficiency by harmonising various state and territory transport laws, reducing the costs of compliance, minimising regulatory intervention and ensuring that regulation remains current and effective.

To ensure that NTC reforms will have a positive regulatory outcome, all reforms are tested against guidelines from the Office of Best Practice Regulation before they are submitted for ministerial endorsement.

Where possible, the NTC will attempt to quantify the costs and benefits of the regulatory component of a proposed reform. Potential impacts considered are compliance costs (for industry), enforcement administration costs (for government), safety, environment (noise and carbon emissions) and productivity. Impacts are expressed in net present value ($NPV) terms.

The NTC expects that the combined regulatory impacts of the Draft Heavy Vehicle National Law (HVNL) and the move to a national PBS assessment and access framework is approximately $12.4bn in benefits in NPV over 20 years5.

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Source: BITRE and Department of Climate Change and Energy Efficiency

4 Carbon Dioxide Emissions from New Australian Vehicles 2010: Information Paper, 2011, and Carbon Emissions from New Australian Vehicles: Information Paper, 2009

5 Performance Based Standards: Draft Regulatory Impact Statement, 2010 & Heavy Vehicle National Law: Draft Regulatory Impact Statement, 2011.


Stakeholder engagement

The NTC is committed to meaningful and transparent engagement with all its stakeholders in the development of national reforms.

Throughout the year, the NTC held approximately 90 formal stakeholder engagements across all states and territories (workshops, focus groups and surveys) which reached over 4,200 stakeholders (see map on right).

This is in addition to ongoing contact with stakeholders through stakeholder advisory and working groups, informal one-on-one meetings, submissions and attendance at stakeholder events.

A number of stakeholder advisory and working groups were operational over the past financial year and are outlined overleaf. The NTC appreciates the assistance of these groups and acknowledges the contributions from all members who served on the various bodies during the year.


Locations of stakeholder engagements

The following table summarises our regulatory efficiency performance over the past financial year.

OUR STRATEgIES OUTCOMES KPIs RESUlT

Evidence-based policy Regulatory policy is supported by rigorously established and objective evidence

Office of Best Practice Regulation (OBPR) approval

OBPR approved all regulatory impact statements issued during the year.

Risk-based regulation Avoid unnecessary regulation and consider non-regulatory (operational reform) responses

Cost–benefit analyses of relevant options

All regulatory impact statements included a cost–benefit analysis.

NTC also pursued a non-regulatory path to improve transport safety through the Corporate approach to transport safety project.

Performance-based regulation

Regulations keep pace with changes in technology to promote innovation, where practical

Technology innovation and take-up

NTC progressed a number of reforms during the year that use technology to promote innovation, such as work on in-vehicle telematics and the Performance Based Standards scheme.

Lifecycle methodology Identify and research issues, develop options, plan implementation and monitor outcomes

Monitor and report project KPIs

NTC continued to monitor and maintain its reforms throughout the year and commenced implementation planning for relevant reforms.

A new outcomes-based performance reporting framework was also developed and endorsed by the ATC. This will enhance the monitoring and reporting of reforms in the future.


Future outlook

The 2011/12–2013/14 National Transport Commission Strategic Plan outlines a refreshed vision, mission and role. The following vision, mission and role will guide the NTC as it undertakes its work in the year ahead:

Our visionAustralia’s prosperity and community liveability is enhanced by the movement of people and goods.6


Our roleBy developing national regulatory and operational reform and implementation strategies for road, rail and intermodal transport.

6 Liveability – ‘the degree to which a location supports quality of life, health and wellbeing for the people who live, work or visit there’. (A sustainable population strategy for Australia, Commonwealth Government, 2011)

Standing Committee on Transport and Transport Agency Chief ExecutivesThe Standing Committee on Transport (SCOT) and Transport Agency Chief Executives (TACE) advisory groups consist of heads of transport departments and road authorities from each state and territory as well as New Zealand. A representative from local government and the NTC Chief Executive are also members of these groups.

Industry Advisory GroupThe Industry Advisory Group (IAG) includes representatives of the Australian Automobile Association, Australian Trucking Association, Australasian Railway Association, National Farmers Federation, Transport Workers Union, Minerals Council of Australia, Ports Australia and the Australian Logistics Council as well as vehicle manufacturers, suppliers, transport operators, transport training industry and the bus industry suppliers’ representatives.

Performance Based Standards Review PanelThe Performance Based Standards Review Panel (PRP) provides a national forum for the evaluation of SMART heavy vehicle applications under the PBS scheme. It comprises senior representatives from transport agencies.

Fatigue Authorities PanelThe Fatigue Authorities Panel comprises representatives from the fatigue authorities of participating states and territories. Established by the ATC as an advisory group under the Heavy Vehicle Driver Fatigue reform, it is charged with ensuring national consistency in the awarding of Advanced Fatigue Management (AFM) accreditation in all participating states and territories.

COAG project offices and boardsThe NTC has established effective working relationships with the project offices and boards of the National Heavy Vehicle Regulator, National Rail Safety Regulator and COAG Road Reform Plan projects. The NTC also liaises with the advisory groups for these projects via the relevant project office in the course of its work.

Other groupsOther specific project groups include:

• project reference groups, such as the Assessing Fitness to Drive and National Standard of Health Assessment for Rail Safety Workers Project Reference Groups, which provide advice on revisions to the health standards for drivers and rail safety workers

• national maintenance groups including the Australian Road Rules Maintenance Group and Fatigue Reform Maintenance Group. These provide advice to the NTC on keeping these reforms up to date.


Case study:

Heavy Vehicle National Laws consultation

The NTC in partnership with the National Heavy Vehicle Regulator Project Office held a series of forums during March and April 2011 to explain proposed changes to heavy vehicle laws and seek feedback. Over 750 stakeholders attended the forums, which were held in 18 locations throughout Australia.

All stakeholders were given the opportunity to complete forum evaluation forms on the day, with approximately half electing to do so. The results of the evaluation were overwhelmingly positive, with key highlights including:

• 98 per cent found the forum presentations beneficial

• 98 per cent believed the presenters did a good job of explaining the proposed law and regulatory impact statement

• 94 per cent of those who asked questions were satisfied with the responses given

• 100 per cent thought the forums were professionally run.

Stakeholder feedback on consultation

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What stakeholders thought

NTC National Heavy Vehicle Regulator project Director george Konstandakos (pictured right with Nigel Kavanagh from Randsard ) during the Heavy Vehicle National Laws consultation.



Meeting our objectives

Improving transport productivity

The quick read

a historic milestone was achieved with the release of the proposed Heavy Vehicle National Law and accompanying RIs for public consultation.

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the National Ports strategy is in its final stages of development. the strategy will boost productivity, protect freight corridors and encourage investment.

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Improvements to the Performance-Based standards (PBs) scheme are progressing with the final RIs and implementation plan to be submitted to ministers by the end of 2011.

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development of a policy proposal to facilitate modular B-triples running on the type 1 road train network is underway. Greater use of B-triples will boost productivity, improve safety and cut emissions.

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Feasibility of an alternative system of pricing for heavy vehicles is being explored.

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NtC has completed the first step in developing a national policy paper on freight rail productivity.

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a new project is being undertaken to identify the future regulatory and operational reforms required to enhance the performance of australia’s transport system.


Productivity and safety boosted under proposed Heavy Vehicle National Law

The NTC is playing a critical role in the establishment of a National Heavy Vehicle Regulator. A key COAG priority, the regulator will administer a single body of national heavy vehicle law and regulate all vehicles over 4.5 gross tonnes. Fully operational by 2013, the regulator will streamline the requirements for operators, reduce business costs and improve the safety of the heavy vehicle industry.

A historic milestone was achieved in February 2011 when the NTC, in partnership with the National Heavy Vehicle Regulator Project Office, released the proposed Heavy Vehicle National Law and accompanying regulatory impact statement (RIS) for public comment.

The proposed law and RIS are the culmination of significant work to consolidate the following model legislation into the Heavy Vehicle National Law:

• Heavy Vehicle Registration Act

• Heavy Vehicle Registration Regulations

• Australian Vehicle Standards Rules Regulations

• Heavy Vehicle Charges Act

• Mass and Loading Regulations

• Oversize and Over mass Vehicle Regulations

• Higher Mass Limits Regulations

• Compliance and Enforcement Bill

• Intelligent Access Program Act

• Heavy Vehicle Driver Fatigue

• Heavy Vehicle Speeding Compliance Act

• Alternative Compliance legislation (Accreditation).

During the consolidation process, over 360 variations in law across the country were found. The NTC resolved these variations by working in close partnership with stakeholders through a high level reference group comprising representatives from state and territory governments, a drafting advisory group and an industry advisory group. A small number of policy issues were also referred to an independent expert panel for advice.

The release of the proposed law is a significant reform milestone for Australia, as it paves the way for a fairer system of law that will make it easier for the heavy vehicle industry to work across state and territory borders. It will also result in substantial savings with the RIS cost benefit analysis estimating implementation of the new laws will deliver around $12.4 billion worth of savings over 20 years.

Following the release of the proposed laws and RIS, the NTC conducted 18 information forums throughout Australia to explain the proposed changes and seek feedback.

Case study:

Truckie sees the sense in having a National Heavy Vehicle Regulator

Lindsay Transport truck driver and NatRoad member Brian Dark says a National Heavy Vehicle Regulator would get rid of the unnecessary red tape associated with inconsistent state and territory regulations, inconsistencies which are costing the Australian heavy vehicle industry money.

Brian has been delivering freight for almost 25 years and believes that the heavy vehicle industry wastes a lot of time dealing with up to eight state and territory road agencies. Drivers have to make sure they have got the right permits and gazettes to travel across Australia, and have to know all the different rules covering pilot vehicles and fatigue management. All the interstate differences add up to a major loss of productivity.

‘Having to understand multiple regulatory regimes increases the administrative red tape. As a result, operators use the ‘lowest common denominator’ approach when planning trips to ensure they are compliant in all of the states, territories and shires along an access route’, Brian explained.

‘This often means using less productive vehicles or combinations, due to the costs and other hassles experienced in gaining access permits.’

For drivers, regulatory differences increase the risk of inadvertent breaches. The fines resulting from such breaches reduce take-home pay, which creates an incentive to cut corners in an attempt to make up for

the loss. It might even result in drivers leaving the industry.

Brian believes that having a National Heavy Vehicle Regulator can go a long way to addressing these issues.

‘The prospect of having a National Heavy Vehicle Regulator for all manner of services is an appealing way to iron out these inconsistencies and provide operators with a single point of contact when operating across different jurisdictions’, Brian said.

‘However, to be effective the National Heavy Vehicle Regulator must be well resourced and have ‘real teeth’, and must be sufficiently independent to meaningfully deal with state, territory and Commonwealth governments.’




Over 750 stakeholders attended the forums, providing very constructive feedback on the proposed law7. In addition to the feedback received during the forums, 63 formal submissions were received from stakeholders including governments, operators, owner drivers and industry peak bodies.

The NTC will now review all the feedback received and develop a final RIS and Heavy Vehicle National Law to be submitted to transport ministers for approval by the end of 2011. The establishment of the National Heavy Vehicle Regulator is being overseen by a National Heavy Vehicle Regulator Project Board, chaired by Menno Henneveld, managing director of Main Roads Western Australia.

National Ports Strategy to protect freight corridors and keep freight moving

Australia needs a national collaborative approach for the future development and planning of its port and freight infrastructure. With the country’s ports and related landside logistic supply chains facing major challenges—such as a strong projected growth in trade, urban encroachment and congestion— long-term planning is essential to protect freight corridors, boost productivity and attract greater private sector investment.

In recognition of the importance of a collaborative approach to the planning and development of port infrastructure, former Prime Minister (The Hon. Kevin

Rudd) requested that Infrastructure Australia (IA) and the NTC develop a National Ports Strategy for consideration by COAG at its meeting in 2009.

NTC and IA have been working closely with stakeholders to develop such a strategy. That work has involved:

• conducting workshops and one-on-one consultations with key stakeholders

• releasing a draft strategy for public comment in May 2010.

Following COAG and ATC consideration of the proposed strategy in 2011, and a further round of consultation, it is now in its final stages of development.

The strategy is a vital part of the comprehensive national land freight strategy being developed by NTC and IA.

Case study:

Port Kembla backs National Ports Strategy

Port Kembla is located on the east coast of NSW and is one of NSW’s major ports. With 33.6m tonnes of freight going through the port each year, Port Kembla Chief Executive Officer Dom Figliomeni understands the need for improved ports planning and supply chain productivity.

‘The National Ports Strategy provides more certainty for ports and recognises the need to link into major arterial corridors’, said Mr Figliomeni.

‘We’re fully behind the strategy. It recognises that ports aren’t microcosms but need to be considered as a part of the total logistics chain, so you can see the flow of products from point to point and the efficiencies and inefficiencies in the system.’

‘The strategy cements the role that ports play in the Australian economy and the need to protect the port environs. Ports are economic drivers and it is important that they develop and operate in a sustainable manner.’

7 More information on the stakeholder consultation accompanying the release of the proposed laws and RIS is available in the Measuring our performance section on Page 12.


SMART scheme improvements on the way

The Performance-Based Standards scheme (PBS) is a key element of COAG’s national reform agenda for transport. The scheme offers the heavy vehicle industry the potential to achieve higher productivity and safety through innovative truck and bus design.

PBS vehicles are designed to perform their tasks as productively, safely and as sustainably as possible. Termed ‘SMART’ vehicles, these trucks and buses are tested against 16 stringent safety standards to ensure that they can stop, turn and travel safely.

A 2009 NTC review of the scheme, conducted in collaboration with the states and territories, identified a number of ways in which the scheme could be improved. In particular, the review identified that industry confidence in the scheme was being undermined by uncertainty about road access, lack of operational flexibility and high upfront costs.

In March 2010, the NTC released for public consultation a draft RIS outlining proposed improvements to the scheme. The NTC used stakeholder feedback from the consultation to refine the RIS and commence work on development of an implementation plan to accompany the RIS.

A final regulatory impact statement, with an implementation plan, is expected to be submitted to transport ministers for approval by the end of 2011.

SMART trucks can reduce motorists’ concerns about road freight

Community concern about freight vehicles, particularly the types of vehicles possible under the PBS scheme, was raised as an issue during the consultation phase of the PBS regulatory impact statement. As a result, the NTC commissioned independent research into community attitudes towards freight vehicles and PBS, titled Understanding public perceptions of road freight. The research included a survey of 1500 individuals from five states (including a mix of urban and regional participants).

Case study:

SMART trucks running between Toowoomba and Brisbane

The Sunshine State is reaping a range of safety, productivity and environmental benefits following the approval to run certain types of SMART trucks between Toowoomba and Brisbane.

In 2010, the Queensland Department of Transport and Main Roads approved, in principle, vehicles that gain 2B certification under the Performance Based Standards scheme and meet the infrastructure and local regulation requirements for this route to run on the 154 km freight route between Toowoomba and the Port of Brisbane.

Haulmark Trailers, an Australian truck and trailer manufacturer and developer which holds 2B certification for its modified A-double, welcomed the approval of the route as it has allowed some of its customers to achieve significant efficiency gains.

‘Our modified A-double can safely move two containers at a time along the route, instead of only one. We’ve effectively halved the number of trips an operator needs to take to carry the same amount of freight’, Haulmark’s National Sales and Marketing Manager, Mark Johnston said.

The Haulmark A-double can haul 120,000 tonne of freight per year in 2400 trips, resulting in a 50 per cent reduction in heavy vehicle movements. The Queensland Government

estimates that this will result in a 572 tonne reduction in carbon dioxide emissions each year.

‘We wanted to create a vehicle that we could, with hand on heart, say was the right vehicle for the job’, Mr Johnston said.

‘The PBS scheme has given us the flexibility to design a vehicle that is more productive, environmentally-friendly and at the same time, improves safety.’

Haulmark has sold 15 A-double combinations and has a number of others in the pipeline which are expected to be operational by the end of 2011.




The key findings were:

• In most cases, trucks are not a ‘top of mind’ concern for drivers. Drivers are more concerned about their personal safety while driving than about sharing the road with trucks.

• The majority of concerns about freight vehicles are related to negative perceptions of truck driver behaviour such as speeding and tailgating.

• The majority of respondents (74%) reacted positively to the PBS scheme, as well as its potential to improve safety and address climate change and congestion.

• There was a common misconception that PBS vehicles do more damage to the roads. (PBS vehicles do no more damage than other heavy vehicles. In fact, they often do less damage, because their innovative design allows them to move freight with fewer trips.)

The NTC briefed industry and governments on the findings which will be used to inform future communications about heavy vehicles and the PBS scheme.

Increasing the use of safer and more efficient vehicles

B-triples—vehicles comprising a prime mover and three semi-trailers—operate almost Australia-wide. They are known to be safer, more efficient and to do less damage to pavements and bridges than the equivalent A-double road train, a type of truck that is approved to run on the Type 1 road train network. However, unlike the A-double, there is no consistency in road network access and operating conditions across state and territory borders, which limits their use to primarily intrastate operations.

The NTC estimates that if B-triples were approved to operate nationally on the existing Type 1 road train network, by 2030 Australia would save 26 lives, 1.1 million tonnes of CO2 emissions and $1.1 billion of costs. To achieve these outcomes, the NTC has been working in collaboration with government and industry over the past year to develop a regulatory proposal to allow modular B-triples to operate on the Type 1 road train network. Stakeholder input has been critical to shaping the proposal, which is expected to be released for public consultation in August 2011.


COAG Road Reform Plan key to unlocking greater productivity from the road network

The NTC is playing an important role in the Council of Australian Governments Road Reform Plan (CRRP) to ensure that national heavy vehicle road prices promote the efficient, safe and sustainable use of infrastructure, vehicles and transport modes.

Currently, governments recover the costs of road spending through heavy vehicle charges. Heavy vehicle charges are a combination of a fuel-based charge and a fixed registration charge. The current heavy vehicle charging scheme is based on average road wear—it does not accurately reflect the truck’s weight and distance travelled on different road types.

In 2007, COAG asked the ATC to investigate the feasibility of an alternative system of pricing for heavy vehicles (such as the “mass, distance, location” pricing model) that creates a more direct link between road use and road funding. The ATC established the COAG Road Reform Plan (CRRP) Board which is chaired by VicRoads Chief Executive Gary Liddle and a project office to undertake the feasibility study.

Key expected benefits from the introduction of a more accurate road use charge include:

• unlocking greater productivity for road users

• reducing the costs of maintaining the national road network

• helping Australia to meet its growing freight task

• improving infrastructure investment

• maximising economic growth.

The NTC is making a significant contribution to the project by leading the pricing workstream. The NTC is responsible for exploring how road prices for heavy vehicles could be developed under alternative pricing models, and the economic benefits that could be expected from changes in road user behaviour.

Key milestones the NTC achieved during the year included:

• Release of the Heavy vehicle pricing options: development and assessment framework discussion paper for public consultation in August 2010. The discussion paper was the first step in the conversation between industry and government about the most appropriate way to assess the impacts of different pricing structures on the heavy vehicle industry. The discussion paper outlines estimates of road costs, options for heavy vehicle pricing, methodology for how prices will be developed and an economic assessment framework used to compare options.

• Release of the Modelling the marginal cost of road wear research paper in partnership with Austroads in May 2011. The research paper outlines an engineering–economic model to estimate the marginal cost of heavy vehicle road wear for different road types. Marginal cost is the increase in total cost associated with a small increment, or increase, in use, ie the cost created by one extra truck using the road.

The paper describes the model methodology as well as interim results derived from the model.

• Release of the National Road Freight Study in June 2011, which measures how changes to heavy vehicle charging methods could impact the decisions made by transport operators and logistics managers in carrying out Australia’s freight task. NTC commissioned leading research experts to complete the study which involved a survey of around 200 industry representatives.

All of the above work was critical to informing the development of the CRRP feasibility study. In June 2011, CRRP released the preliminary findings of the feasibility study for public consultation. The final feasibility study will be submitted to transport ministers by the end of 2011.

Investigating A-trailer charges

During May and June 2011, the NTC investigated concerns from some industry stakeholders about the current heavy vehicle charging structure in relation to A-trailer registration costs.

The NTC held discussions with peak industry bodies, operators and governments, including workshops in Queensland, South Australia, Western Australia and the ACT to develop a more detailed understanding of the concerns.

Some of the issues reported by operators include:

• pricing issues experienced by operators differ greatly depending on geographic location, industry sector and vehicle usage

• large annual registration charges are posing significant cash flow problems for some operators

• registration charges are more difficult to recoup in freight charges compared to fuel

• the A-Trailer charges make it difficult for B-doubles and B-triples to compete against road trains.

Based on these discussions, the NTC has established a Solutions Working Group which comprises representatives from the NTC, the trucking industry and road transport agencies. The role of the group is to identify possible solutions to inform the NTC’s recommendations on the issue to the ATC.




Improved freight rail investment policies to deliver national productivity

Improving the clarity of objectives for planning and investing in freight rail transport could deliver significant social, environmental and economic gains, according to an NTC discussion paper released in October 2010 for public consultation.

The Role of Government in Freight Rail Discussion Paper was released as the first step in developing a national policy paper on freight rail productivity. A number of workshops with government, industry and unions were held following the release of the document to explore the role of government in the areas of rail freight objectives, investment facilitation, and monitoring and evaluation.

Australia’s transport ministers asked the NTC to work in partnership with governments and industry to develop the policy paper following the NTC Rail Freight Productivity Review. The review found that government plays a significant role in influencing rail productivity.

As a response to the review, the ATC requested that the NTC prepare a policy paper that:

1. facilitates the development of a coordinated set of national and state-based objectives for rail

2. develops a consistent and transparent national framework for assessing existing road and rail pricing distortions (including funding for community service obligations) to facilitate rail investment

3. develops an improved evaluation and monitoring framework to assess whether rail investment under the above framework achieves the stated rail objectives.

Following the close of consultation, the NTC began work on the policy paper which will be released by the end of 2011.

Smart transport for a growing nation

Land passenger transport in urban and regional areas is facing many challenges such as population growth and ageing, congestion, accessibility, demand for oil and climate change. These issues threaten the sustainability and efficiency of the transport system.

In 2010, the ATC approved the NTC undertaking a project to identify the regulatory and operational reforms which will enhance the performance of Australia’s transport system in the face of these challenges. Over the past year, the NTC has worked in collaboration with government and industry stakeholders to identify transport issues which affect Australians on a daily basis, in particular public transport concerns and congestion on our roads.

The NTC also commissioned research, which involved a community survey of 1,000 Australians and eight focus groups. This enabled individuals to have their say on matters surrounding public transport and their vision for the future transport system. The project will inform the NTC’s strategic planning for the following year.


Future outlook

Outlined below are some of the key initiatives the NTC will undertake to continue to improve productivity in the transport system over the coming year:

National Heavy Vehicle RegulatorThe final RIS and proposed law will be submitted to transport ministers for approval by the end of 2011. The NTC will continue to work closely with the project board and other stakeholders to:

• facilitate implementation strategies for agreed policy reforms

• ensure the policy intent of the law is implemented through participation in operational reference groups

• transition operation of the Performance Based Standards Review Panel (PRP) and mapping to the regulator.

The NTC will also lead maintenance to address outstanding policy issues such as penalties, charges consistency and pilot guidelines.

COAG Road Reform PlanFollowing the close of consultation on the preliminary findings of the feasibility study, CRRP will present its findings to COAG recommending a way forward.

A-trailer chargesThe first meeting of the Solutions Working Group will be held in July and subsequent meetings will be held as needed. The NTC will report the recommendations of the A-Trailer Review to road transport ministers in November 2011.

Modular B-triplesDraft discussion paper to be released in August 2011 for public consultation.

National Ports StrategyOnce the National Ports Strategy is approved by COAG, the NTC and IA will work collaboratively with state and territory governments on implementation. Ports will be encouraged to develop master plans guided by best practice and peer reviewed by an expert panel. NTC will also explore opportunities to improve supply chain efficiency through port community systems.

Performance Based StandardsAs the NTC facilitates implementation planning of PBS reform, it will also revise the national pavement vertical loading standard and bridge loading standard and use national tools to aid the assessment of routes and bridges. A post implementation review of PBS will also be conducted.

Supply Chain Reform – Capacity ConstraintsOver the past year, the project scope and work plan has been developed for the Capacity Constraints component of the Supply Chain Reform project. The work is being done in conjunction with South Australia and aims to identify government actions to improve supply chain efficiency. Stakeholder consultations have been undertaken and a draft discussion paper outlining a proposed framework for government intervention will be released for public consultation in the last quarter of 2011.

Smart transport for a growing nationThe NTC will continue to work collaboratively with governments and industry on the Smart transport for a growing nation project. A discussion paper reporting on the findings of the community survey and focus groups will be released in September.

Further details about the NTC’s strategic priorities and projects are contained in the 2011/12– 2013/14 NTC Strategic Plan and Work Programme available on the NTC website (www.ntc.gov.au).



Providing a safe transport system

The quick read

strong progress has been made on the proposed Rail safety National Law and draft RIs, with the NtC on track to release both documents for public consultation on schedule. the proposed law will remove inconsistencies and share best practice in safety across the country.

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Best practice fatigue management techniques were explored in a series of NtC roundtables held across australia, featuring a world-leading fatigue expert.

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approval of a smart technology strategy will facilitate wider uptake of technology in the heavy vehicle industry and give operators the confidence they need to invest in these devices.

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a review of Australian Road Rules is set to improve current inconsistencies faced by road users.

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Reform maintenance was conducted on a range of reforms to ensure that agreed reform objectives are being delivered.

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the atC reached agreement in June on a uniform and more practical approach to counting time.


Case study:

Genesee & Wyoming Australia welcome move to National Rail Safety Law

Genesee & Wyoming Australia is an accredited rail service provider in six Australian states, owning nearly 5,000 kilometres of track in South Australia and the Northern Territory including the 2,200 kilometre Tarcoola-to-Darwin railway.

It has more than 350 employees, and has 70 locomotives with 950 active carriages providing haulage of bulk commodities such as grain, iron ore, gypsum and minerals.

Moving to a single National Rail Safety Regulator and single National Rail Safety Law is a welcome shift for Genesee & Wyoming Australia.

‘Up until now we’ve had to contend with six different rail safety regulators, each administering their own rail safety laws and each in their own different ways’, says Managing Director Mr Bert Easthope.

‘Even the National Model Legislation failed to deliver true consistency in this regard.

‘Bringing this under one regulator with a common set of laws applied consistently across Australia will be good for safety and good for business.

‘For us, we expect this will mean significant productivity benefits and cost savings, as we’ll no longer have to manage compliance with multiple rail safety regulatory systems.

‘Ultimately we see this reform as being about improving safety, as it shifts the focus from red tape to allowing us to concentrate on implementing best practice across all of our operations.’

National Rail Safety Regulator on track

Australia currently has seven rail safety regulators across eight states and territories, all with their own rail safety laws. In December 2009, the Council of Australian Governments (COAG) agreed to establish a National Rail Safety Regulator to modernise Australia’s rail safety regulatory system, as part of a suite of reforms to enhance the productivity, safety and sustainability of our transport industry.

The national regulator will:

• administer, audit and review the accreditation of rail transport operators under national legislation

• work with rail transport operators, rail safety workers and others involved in railway operations to improve rail safety in Australia

• research, collect and publish information relating to rail safety

• provide, or facilitate the provision of, advice, education and training in relation to rail safety

• monitor, inspect, investigate and enforce compliance with the national legislation.

The NTC is playing a pivotal role in this project. It has been consulting with industry, governments and unions in developing the national legislation that the regulator will administer, and an accompanying RIS.

The national legislation will be based on the Model Rail Safety Bill and national Model Rail Safety Regulations, both introduced in 2006 and implemented by states and territories. Some states and territories have deviated from the model law. Complying with inconsistent laws presents a challenge to rail transport operators, particularly those who conduct railway operations in more than one state. The proposed law will remove these inconsistencies and share best practice in safety across the country.

During the year, the NTC made significant progress towards reaching agreement with stakeholders on the proposed law. The NTC is on track to release the Draft Rail Safety Regulator Law Regulatory Impact Statement and Draft Rail Safety National Law for public consultation on 18 July 2011.

A project board and project office have been established to oversee the implementation of the regulator. The board comprises representatives from each state and territory and from the Commonwealth. It is chaired by Reece Waldock, Director-General, Department of Transport, Western Australia. An advisory committee made up of government, industry and union representatives has provided ongoing advice and feedback.

The regulator will be based in Adelaide, with branch offices in states that currently have a rail safety regulator office. The regulator will become operational in January 2013.



Photo courtesy of The Advertiser


Sharing best practice fatigue management

Fatigue continues to be one of the biggest causes of death and serious injury in the Australian transport industry. To stimulate debate about fatigue management and share best practice techniques, the NTC sponsored Professor Richard Hanowski, a leading international fatigue expert, to visit Australia as part of the 8th International Conference on Managing Fatigue in Transportation, Resources and Health held in Fremantle in March 2011.

Professor Hanowski is the Director of the Center for Truck & Bus Safety at the Virginia Tech Transportation Institute in the United States. He has been involved in transportation research since 1991 and has led many light vehicle and heavy vehicle safety studies for government and industry. Professor Hanowski presented a paper at the conference, and also participated in a series of NTC roundtables in Perth, Melbourne and Brisbane to share his research more broadly.

The roundtables featured a thought-provoking presentation, supported by video footage on the US experience of fatigue management. Professor Hanowski also presented an overview of:

• observational driving research related to fatigue and distracted driving

• the impact that naturalistic driving research has had on driver education, policy and driver–vehicle interface design

• ongoing and planned US-based naturalistic driving studies.

The roundtables were well attended, attracting senior executives from industry, government, unions and academia.

NTC Chairman Greg Martin also hosted a panel session during the Fremantle conference to highlight the importance of a national approach to managing fatigue in road and rail. The panel challenged audience members to consider the similarities and differences in managing fatigue across both modes and whether there is any knowledge that can be shared.

Panellists included:

• Professor Drew Dawson, Director, Centre for Sleep Research, University of South Australia

• Dr Tim Kuypers, Group General Manager Safety, Asciano

• Steve Shearer, Executive Director, SA Road Transport Association

• David Anderson, Chair of the Performance Based Standards Review Panel and member of two independent fatigue expert panels.

Ministers approve national smart technology strategy

The widespread uptake of technology in the road freight industry could improve road safety, reduce transport costs and cut emissions.

To facilitate wider uptake of smart technologies and give industry the confidence it needs to invest in these devices, in June 2010 the NTC released the Draft national in-vehicle telematics strategy: The road freight sector 2010-2030 for public consultation. The strategy was prepared in consultation with stakeholders and is designed to provide a clear and consistent policy for technology use. It also aligns with the ATC’s national transport policy objectives.

Following the release of the draft strategy, the NTC, throughout June and July 2010, sought additional feedback from industry and governments. Following the conclusion of the consultation period, the NTC refined the strategy and provided it to the ATC, where it was approved by unanimous vote in May 2011.

The NTC also finalised a policy paper titled Electronic systems for heavy vehicle driver fatigue and speed compliance, which was also approved unanimously by ministers at the same meeting. The paper complements Austroads’ technical report titled Performance-based specification for electronic work diary and heavy vehicle speed monitoring.

The ATC requested that a policy paper be developed due to the need for a recognised standard for the operation of an electronic work diary. The policy paper provides a basis for the conduct of an on-road pilot of electronic work diaries by the NSW Roads & Traffic Authority, which will identify the best way forward for industry and regulators to allow the voluntary use of electronic work diaries to monitor heavy vehicle work and rest hours. It also addresses the use of technology to monitor speed compliance.

The NTC is working with the New South Wales-led pilot of electronic work diaries. The planning stage involved recruiting and training participants, and evaluating processes and priorities. On road operations will commence in July 2011, with the pilot to be conducted over the following two years. It aims to understand essential and optional requirements with the technology.


Case study:

Linfox Logistics works safer and smarter with FoxTrax

Linfox Logistics is harnessing the power of technology to enable its staff to work safer and smarter.

As the largest privately owned supply chain solutions company in the Asia–Pacific region, Linfox Logistics is always looking for ways to maintain its competitive edge. Over the past few years, Linfox Logistics has begun to use smart technologies to help improve productivity and safety across its operations.

In 2010, Linfox Logistics introduced FoxTrax, a logistics fleet tracking and management system. It enables Linfox Logistics to monitor 1,500 of its trucks 24 hours a day, thereby ensuring that its fleet is efficient and employees are operating safely.

FoxTrax uses the global positioning system (GPS) to monitor vehicle movements. It records a range of operational data, such as the arrival and departure times of trucks as they travel between supermarket distribution centres and stores. The system also uses SMS alerts to inform drivers of important delivery changes or traffic hazards, as well as alerting distribution centres and stores of expected vehicle arrival times (thereby boosting the efficiency of vehicle loading and unloading).

Linfox Logistics Compliance Manager Asia Pacific, Shane Falkiner, said FoxTrax had not only delivered great productivity gains but a number of safety benefits.

‘We can now monitor the speed our trucks are travelling in real-time, as well as tracking how long our drivers are on the road, which assists with fatigue management,’ Mr Falkiner said.

‘FoxTrax has proved a vital operational tool. It has enabled the company to cut down on paperwork and reduce loading and unloading times. It also helps ensure that our operations comply with regulations and with our own policies.’

Linfox Logistics aims to install GPS systems in its 7,000 trailers over the next two years.




United Nations Decade of Action for Road Safety

The NTC marked the beginning of the United Nations Decade of Action for Road Safety in May 2011 by hosting a presentation from renowned road injury expert and Director of the Monash University Accident Research Centre (MUARC), Professor Mark Stevenson.

Professor Stevenson provided an overview of his ground-breaking work on heavy vehicle and road safety in Australia and the Asia–Pacific region to an audience of industry, emergency services and government representatives.

Dr Jeff Potter, NTC Project Director and road safety expert, also provided insights into the road safety work undertaken by the NTC, including how the NTC is working with the corporate sector to develop road safety initiatives.

The event was chaired by NTC Deputy Chairman and member of the National Road Safety Council, Professor Ian Johnston.

According to the UN, the world road toll continues to rise and, by 2020, could reach 1.9 million each year. Road traffic accidents have also become the leading killer of young people aged 15–29 years.

The Decade of Action for Road Safety commenced formally on 11 May 2011. It calls for a concerted effort across the world to address the looming road safety crisis through a framework for action which could ultimately save millions of lives.

Finalising improved driver medical standards

Assessing Fitness to Drive contains the nationally agreed medical standards that are used by doctors and driver-licensing authorities to assess the medical fitness of drivers of cars, heavy vehicles and motorbikes. The publication undergoes reviews periodically to ensure it reflects current medical knowledge and meets the practical needs of both private and commercial vehicle drivers.

In July 2009 the NTC sought feedback on the current standards and, in May 2010, released for public consultation the proposed revisions to the medical standards. Submissions were received from medical and other health professionals, consumer health organisations, government transport departments, driver-licensing authorities, unions, transport operators and peak industry bodies.

Following the close of submissions, the NTC worked closely with specialist medical associations, societies and other stakeholders to ensure that the revised standards are consistent with current medical knowledge and best practice. Key revisions include:

• new flowcharts and checklists to make the standards clearer and easier for medical professionals to follow

• improved focus on how the symptoms of a person’s condition may affect their driving, rather than on just diagnosing the condition.

If approved, the changes will make the process of assessing fitness-to-drive much clearer and simpler for the medical profession, driver-licensing authorities and drivers themselves.

The guidelines are jointly published by the NTC and Austroads. They will be submitted to ministers for approval by the end of 2011.

UN Decade of Road Safety Stakeholder Event (from left) NTC Deputy Chairman Ian Johnston, NTC Chief Executive Nick Dimopoulos, NTC Project Director Jeff Potter and Professor Mark Stevenson, Director, MUARC.


Maintaining our reforms

Under its inter-governmental agreement, the NTC is required to monitor, review and evaluate its reforms.

Regular reform maintenance ensures that agreed reform objectives are being delivered, including recently implemented national reforms.

During the year, work was completed on an Implementation and Regulatory Outcomes Review of the Australian Code for the Transport of Dangerous Goods by Road & Rail – 7th Edition Reform Package, as requested by COAG.

The NTC sought submissions from industry last October. A review paper was then written and finalised in June. It is expected to be submitted to ministers later this year.

Maintenance of the following reforms was undertaken during the 2010–11 financial year:

• Australian Road Rules: work continued on the 10th amendment package

• Australian Vehicle Standards Rules: work continued on the 7th amendment package

• Australian Defence Force Exemption Framework: significant progress has been made on the second edition of the framework, which will be submitted to the Transport and Infrastructure Senior Officials Committee (TISOC) and Standing Council on Transport and Infrastructure for approval later this year. The framework exempts certain defence vehicles and personnel from particular road transport laws.

• Assessing Fitness to Drive: the second edition is in the final approval stages.

• National Standard for Health Assessment of Rail Safety Workers: the second edition will be released for public consultation on 1 August 2011.

• Maintenance work on fatigue, compliance and enforcement, and the intelligent access program reforms, was undertaken as part of the development of the National Heavy Vehicle Regulator.

Review of Australian Road Rules and Australian Vehicle Standards Rules

Australian Road Rules and Australian Vehicle Standards Rules were created and approved by Australia’s transport ministers in 1999 to overcome inconsistencies in state and territory laws. These inconsistencies caused confusion and impacted safety and efficiency. Over the past 12 years, the NTC has maintained the rules and standards, putting forward recommended amendments to the ATC each year.

The NTC is currently conducting a review of Australian Road Rules and Australian Vehicle Standards Rules to ensure their continued effectiveness. The following research projects were commissioned over the past year:

• an Australia-wide survey of road users

• an environmental scan of issues influencing both sets of rules

• a review of the approach to national consistency in traffic law taken by federated nations such as the United States, Canada, the European Union and the United Kingdom

• an assessment of Australia’s conformity with the safe-system approach to road safety.

These research projects will form the basis of a discussion paper to be released by the NTC later this year.

National Road Safety Strategy

In December 2010, the ATC released a draft National Road Safety Strategy 2011-2020 for public consultation. The strategy aims to reduce the number of deaths and serious injuries on Australian roads by at least 30 per cent over the next 10 years.

The NTC made a submission on the strategy, welcoming its release and commending the work of Australia’s transport and roads agencies in developing it. The NTC strongly supports the strategy’s focus on a ‘safe systems’ approach to road safety and believes that the strategy provides an opportunity for Australia to significantly reduce the road toll and trauma.

The ATC released the final strategy on 20 May 2011.

Ministers approve changes to national heavy vehicle fatigue laws

The ATC reached agreement in June on a uniform and more practical approach to counting time, based on the way time is counted in New South Wales and Queensland. The changes will come into effect once relevant state and territory governments pass the revised legislation.

The ATC also approved the NTC undertaking, as a priority, important work on further improving the legislation. The NTC has already begun working with governments and other stakeholders on these improvements.




Future outlook

Some of the key initiatives the NTC will undertake to continue to create a safer transport system over the coming year:

Corporate Approach to Transport Safety The NTC will release a discussion paper titled A Corporate Approach to Transport Safety in July 2011. The discussion paper explores how the existing corporate commitment to workplace safety can contribute to achieving Australia’s National Road Safety Strategy targets. It is designed to stimulate debate on the best way forward for businesses and industry to identify, share and innovate best-practice approaches to road safety.

Rail medical standardsThe National Standard for Health Assessment of Rail Safety Workers provides practical guidance for rail operators to meet their obligations for monitoring the health and fitness of rail safety workers. The standard is reviewed periodically to ensure it reflects current medical knowledge.

The NTC sought feedback on the current standard in July 2009 and received additional feedback on the standards as part of the NTC’s reform monitoring activities. The NTC has been working closely with medical and other health professionals, unions, operators and peak industry bodies to review and update the standard. Proposed revisions will be released for public comment in August 2011.

National Rail Safety RegulatorThe proposed National Rail Safety Law and accompanying draft RIS is scheduled to be submitted to the ministerial council for voting in November 2011. Additional proposed law and accompanying RIS, addressing fatigue management and hours of work, is scheduled to be submitted to the ministers.

Electronic work diaries pilotThe NTC will continue working with the New South Wales Roads & Traffic Authority on the electronic work diaries pilot, which is expected to run until 2013.

The results of the pilot will be used to finalise the necessary policy and operational provisions needed to approve electronic work diaries as an alternative means of record-keeping for all road transport operators.

On-board mass-technology policy framework The NTC will release a final position paper in August 2011. The paper provides a policy framework for the use of on-board mass-monitoring technology in the heavy vehicle transport sector. On-board mass technology measures the weight of a vehicle with equipment fixed to the vehicle and can help manage the risk of heavy vehicle overloading.

Australian Road Rules and Australian Vehicle Standards RulesIn October 2011, the NTC will release a discussion paper seeking public consultation on the effectiveness of these current rules. Submissions on the discussion paper will inform the NTC’s development of an evaluation report for the Standing Council on Transport and Infrastructure.

Compliance and Enforcement StrategyThe NTC will develop a Compliance and Enforcement Strategy based on a long-term vision of compliance in the road transport industry. It will identify the steps necessary over the next 20 years to achieve this vision. The strategy will be submitted to transport ministers for approval by April 2012.

Further details about the NTC’s strategic priorities and projects are contained in the 2011/12–2013/14 NTC Strategic Plan and Work Programme available on the NTC website (www.ntc.gov.au).


The quick read

an NtC report found carbon emissions from cars and light commercial vehicles could have been cut by over a third in 2010 had consumers made greener purchasing decisions. the report benchmarks carbon dioxide emissions from these vehicles and will inform the Commonwealth Government’s work on developing mandatory carbon dioxide standards.

.........................................................

the NtC outlined strong support for a national urban policy in a submission to the Commonwealth Government’s Our Cities – building a productive, sustainable and liveable future discussion paper.


Protecting the environment


Contributing to the debate on national urban policy

The NTC outlined its strong support for a national urban policy in a submission to the Commonwealth Government’s Our Cities – building a productive, sustainable and liveable future discussion paper in March.

The NTC submission highlighted key issues within urban policy related to regulatory and operational reform, including:

• ensuring pricing signals appropriately influence the supply and demand of using our transport infrastructure

• the integration of land-use planning and transport policies

• establishing government structures that support integrated transport systems

• removing barriers in the wider take-up of emerging technologies (eg in-vehicle technologies and electric cars).

The NTC mentioned its ‘Smart transport for a growing nation’ project within its submission which aims to inform the future national transport reform agenda for moving people and goods. The project will complement the work being undertaken by the Commonwealth Government.

Greener vehicle choices vital to tackle climate change

Carbon emissions from cars and light commercial vehicles could have been cut by over a third in 2010 if Australians had made greener purchasing decisions.

The findings are outlined in Carbon Dioxide Emissions from New Australian Light Vehicles 2010 - an information paper the NTC published in June 2011. The paper provides detailed up-to-date information about carbon dioxide emissions from new passenger and light vehicles sold in Australia during 2010.

The NTC has provided the paper to the Commonwealth Government to inform the work that is currently underway to develop mandatory carbon dioxide standards for new passenger and light commercial vehicles that are to be introduced by 2015.

Other key findings from the paper include:

• The national average carbon emissions from new passenger and light commercial vehicles in 2010 was 212.6 g/km. This is a 2.7 per cent reduction from 2009.

• In Australia during 2010, new private vehicles had the lowest average emissions (202 g/km), followed by new business vehicles (222 g/km) and then new government vehicles (225 g/km).

• In 2010, fifteen manufacturers sold 94 per cent of new vehicles in Australia. Of these manufacturers, Volkswagen had the lowest average emissions (175 g/km) and Ford the highest average emissions (237 g/km).

• In 2010, the average emissions from Australian-made vehicles were 247 g/km. This is a 4.7 per cent reduction from 2009.

The NTC would like to acknowledge the Federal Chamber of Automotive Industries (FCAI) for providing the data to assist in developing the information paper.

Future outlook

Outlined below are some of the key initiatives the NTC will undertake to continue to protect the environment in the coming year:

Benchmarking emissions of new passenger and light commercial vehicles In collaboration with the FCAI, the NTC will continue to benchmark the carbon dioxide emissions from new passenger and light commercial vehicles sold in Australia. This benchmarking will provide valuable information to industry as Australia introduces carbon dioxide standards for these new vehicles in 2015.

Further details about the NTC’s strategic priorities and projects are contained in the 2011/12 – 2013/14 NTC Strategic Plan and Work Programme available on the NTC website (www.ntc.gov.au).



Protecting the environment

Case study:

Toyota invests in low emissions vehicles for a greener future

The Australian Government’s announcement of mandatory carbon dioxide standards for new passenger and light commercial vehicles by 2015 has heightened public interest in the environmental performance of locally manufactured vehicles.

Toyota Australia, a key player in the local manufacturing sector, has taken a strong interest in the development of low emission vehicle technology. This is particularly evident in the introduction of the Prius model into the Australian market and, more recently, the locally built Hybrid Camry. Toyota recently announced plans to introduce at least one hybrid variant for each of its models by the 2020s.

The NTC’s information paper Carbon dioxide emissions from new Australian light vehicles 2010 provides data on

new passenger and light commercial vehicles. It provides a benchmarking tool to help manufactures assess their vehicles’ emissions performance against competitors.

Toyota Australia’s Manager of Government Affairs and Trade Policy, Ronald Grasso, said the NTC’s information paper was vital in the manufacturer’s preparation for discussions with the Federal Government on the proposed mandatory carbon dioxide standards for new passenger and light commercial vehicles.

‘The analysis was useful in identifying potential opportunities for further improving on the industry’s already impressive record of reducing the carbon footprint of new passenger and light commercial vehicles’, he said.

Image: Toyota Australia

A production of the Camry sedan at Toyota Australia’s Altona manufacturing plant in Melbourne.


Government participation in NTC reformsGovernments around Australia continued to participate in national road, rail and intermodal transport reforms throughout 2010-11. Government agencies have supplied the following summary of their participation in NTC reforms.


The Commonwealth:• contributed to the NTC’s:

- deliberations on refinements to the heavy vehicle charging scheme

- efficient rail investment framework

- harmonisation of the heavy vehicle fatigue policy

- telematics strategy and related policy development

• facilitated, in cooperation with the NTC and with representatives of states and territories, key elements of COAG’s transport reform agenda, such as heavy vehicle pricing reforms, national heavy vehicle and rail safety regulators, and national transport regulation

• implemented the:

- 2009 NTC review by amending legislation

- 2011 annual adjustment to heavy vehicle charges through amended regulation.

New South Wales:• contributed to:

- the review of the national medical standards for drivers (as set out in the NTC’s publication Assessing Fitness to Drive)

- the reform of heavy vehicle charging and heavy vehicle infrastructure funding under the CRRP

- projects to establish a National Rail Safety Regulator and a National Heavy Vehicle Regulator including, chairing the National Rail Safety Regulation Reform Advisory Committee

- the Rail Freight Productivity Review

• implemented:

- expanded Higher Mass Limits access arrangements and extended the Higher Mass Limits approved state road network

- a new accreditation scheme to assist livestock carriers comply with vehicle mass limits and animal welfare loading densities

- an Intelligent Access Program (IAP) for mobile cranes

• commenced an operational pilot of electronic work diaries, leading this project with participation from all other jurisdictions and the NTC.

Northern Territory:• contributed to:

- the national model legislation maintenance processes including:

» Australian Road Rules (9th and 10th packages)

» Australian Vehicle Standards Rules

» drafted legislation to implement the Australian Road Rules amendment packages (5th, 6th, 7th and 8th)

- the national groups created to establish the single national heavy vehicle and rail safety regulators

- the development of the national body of law for the National Heavy Vehicle Regulator and National Rail Safety Regulator

- the workforce planning and skills working group set up under the National Transport Policy Framework

• participated in the:

- CRRP- Fatigue Authorities Panel- Performance Based Standards

review panel

• implemented the heavy vehicle charges annual adjustment

• finalised the NT regulations to support the NT Rail Safety Act and has now implemented the NTC Model Rail Safety Bill (2006) and Regulations.

Government participation in NTC reforms


Queensland:• progressed (as host jurisdiction) the

establishment of a national project office for the National Heavy Vehicle Regulator

• collaborated with key stakeholders to resolve outstanding policy variations to assist in the development of the National Heavy Vehicle Regulator

• developed a whole-of-government submission to the Heavy Vehicle National Law and RIS

• finalised national heavy vehicle compliance and enforcement reforms by implementing the new heavy vehicle penalties and sanctions

• committed to implementing the National Rail Safety Reform by:

- preparing to establish the National Rail Safety Regulator

- working towards establishing a national Rail Safety Investigator

- contributing to the development of the draft Rail Safety National Law and Regulations

• implemented the 2011–12 heavy vehicle annual adjustment to Queensland heavy vehicle registration charges

• contributed to the:

- draft National Ports Strategy (released in mid-2010) and supported the release of the National Ports Strategy in January 2011

- electronic work diary pilot to assess the feasibility of an electronic medium replacing a paper-based record keeping system

- CRRP feasibility study into alternative heavy vehicle pricing and provision of roads funding

- introduction of the new Heavy Vehicle National Law

- model legislation enhancement to deliver nationally consistent counting-time laws

• participated in the A-Trailer Solutions Working Group to develop a range of short- and long-term solutions to the A-trailer charging structure.

South Australia:• implemented:

- the Defence Force Road Transport Exemption Framework- the 8th package of the Australian Road Rules - a new concession for holders of a disabled-parking permit

(as contained in the 9th maintenance package)- gazettal of PBS level 1, 2, 3 and 4 route networks within SA- the 2010–11 annual adjustment to heavy vehicle charges- an in-service diesel emission standard- improved policies regarding the transport of baled hay

wider than 2.5 metres- improvements in level crossing safety through the passage

of the Rail Safety (Safety Coordination) Amendment Act 2011

• contributed to:- the review of Assessing Fitness to Drive guidelines including

planning implementation in the event they are approved by the ATC

- the electronic work diary policy for heavy vehicles and to the pilot project

- the monitoring of the performance of the NTC Strategic Plan, Budget and Work Programme

- the 10-year review of the Australian Road Rules and Vehicle Standards Rules

- the refinement of the PBS Pavement Vertical Loading Standard and Bridge Loading Standards

- the On-board mass technology project for heavy vehicles- the Safe Rates review- the operational policy associated with National Heavy

Vehicle Driver Fatigue legislation- the CRRP Phase 2, including preparation of stage 2

(December 10) and stage 3 (June 11) milestone reports to ATC and COAG on development of CRRP

- the establishment of single national regulators for heavy vehicles and rail safety, in particular to the development of draft bills and operational arrangements.

• participated in the:- CRRP Project Board- Performance Based Standards (PBS) scheme- PBS Review Panel- Fatigue Authorities Panel

• chaired the:- Rail Safety Regulatory Reform Project Board - Heavy Vehicle High Level Reference Group.


Tasmania:• enacted the Model Rail Safety Bill in the Rail Safety

Act 2009 and worked with accredited railways to achieve compliance with the new legislation

• passed legislation to implement the Heavy Vehicle Driver Fatigue Management reform, the Heavy Vehicle Speed Compliance reform and the IAP. The legislation is on hold pending implementation of the National Heavy Vehicle Regulator

• implemented the 2011 adjustment to heavy vehicle charges

• amended the Australian Road Rules to bring them into line with national changes (such as changes to seatbelt and child-restraint laws and to laws relating to disabled-person parking)

• participated in the development of:

- national systems for regulating rail safety and heavy vehicles

- the National Ports Strategy- the National Land Freight Strategy- mass–distance–location pricing (including

through the CRRP Project Board)- the NTC’s Strategic Plan and Annual Work

Programme

• participated in a PBS implementation workshop and as a member of the PBS Review Panel

• participated in the Rail Freight Productivity Review and the Assessing Fitness to Drive guidelines review

• continued working towards the implementation of the IAP

• continued participating in the national process to maintain the Australian Road Rules

• responded to various discussion papers, reports, RIS, proposals, reviews and evaluations.

The Australian Capital Territory:• participated in the:

- development of new national model laws for written-off vehicles and new damage criteria for determining the statutory write-off vehicles

- development of the 9th and 10th packages of amendments to the Australian Road Rules

- development of the inter-governmental agreements on rail safety regulation

- PBS Review Panel

• implemented:

- the heavy vehicle charges annual adjustment for 2011

- part of the 8th package of amendments to the Australian Road Rules on 17 September 2010

• provided input into the RIS, costing templates and inter-governmental agreement for the National Heavy Vehicle Regulator

• assisted in the implementation of amended national vehicle standards.

Government participation in NTC reforms


Victoria:• issued the first High Productivity Freight Vehicle permits

(B-doubles up to 30 metres long and 77.5 tonnes in mass) in the west of Melbourne and the south-east of Victoria as part of Victoria’s trial of higher-productivity freight vehicle combinations

• participated in the:

- Drafting Advisory Panel for the Heavy Vehicle National Law, the High Level Reference Group and the Project Board for the National Heavy Vehicle Regulator

- Steering Committee and the Project Management Committee of the electronic work diary pilot

- Fatigue Authorities Panel- PBS Review Panel

• approved in excess of 200 vehicle combinations under PBS scheme

• contributed to the review of:

- the Defence Force Road Transport Exemption Framework

- Assessing Fitness to Drive

• implemented the 2010 adjustment to heavy vehicle charges

• approved amendments to the counting-time provisions in the National Heavy Vehicle Fatigue Laws

• worked closely with the NTC and the Commonwealth to implement the COAG directive to establish national rail and maritime safety regulators

• worked collaboratively with the NTC and Infrastructure Australia in the development of the National Ports Strategy and National Land Freight Strategy

Western Australia:• implemented the:

- 2011 adjustment for heavy vehicle charges- national Model Rail Safety Legislation

• participated in:

- proposals for a Rail Safety Regulator and Investigator

- the proposal for a National Heavy Vehicle Regulator- CRRP- panels and advisory groups, such as the Intelligence

Access Program Legislation Maintenance Group and the PBS Review Panel

- on-going work to improve the safety of rail level crossings

• contributed to:

- a RIS for the PBS scheme- a strategy for in-vehicle telematics and electronic

work diaries- the development of the National Ports Strategy- the development of national laws and inter-

governmental agreements for heavy vehicle and rail safety regulation

- the development of the NTC Strategic Plan- the maintenance of the Australian Road Rules.


Australian Transport Council and substructure

Australian Transport Council

National Transport

Commission

Industry Advisory Group

Standing Committee on

Transport

SCOT subgroups


Australian Transport Council Members as of 30 June 2011

Commonwealth

The Hon. Anthony Albanese MPMinister for Infrastructure, Transport, Regional Development and Local Government

Western Australia

The Hon. Troy Buswell MLCMinister for Transport, Minister for Housing

Tasmania

The Hon. David O’Byrne MPMinister for Infrastructure, Minister for Economic Development, Minister for Workplace Relations

Victoria

The Hon. Terry Mulder MPMinister for Roads, Minister for Public Transport

Commonwealth

The Hon. Catherine King MPParliamentary Secretary for Infrastructure and Transport

Western Australia

The Hon. Rob Johnson MlAMinister for Police, Emergency Services & Road Safety

Northern Territory

The Hon. Gerald McCarthy MLAMinister for Transport

Victoria

The Hon. Dr Denis Napthine MPMinister for Ports, Minister for Major Projects Minister for Regional Cities, Minister for Racing

New South Wales

The Hon. Gladys Berejiklian MPMinister for Transport

South Australia

The Hon. Patrick Conlon MPMinister for Transport, Minister for Infrastructure

Australian Capital Territory

Mr Simon Corbell MlAAttorney-General Legislative Assembly

New Zealand

The Hon. Steven Joyce MPMinister for Transport

Queensland

The Hon. Annastacia Palaszczuk MPMinister for Transport, Minister for Multicultural Affairs

New South Wales

The Hon. Duncan Gay MLCMinister for Roads and Ports

South Australia

The Hon. Tom Kenyon MP Minister for Road Safety, Minister for Recreation Sport and Racing, Minister for Veterans’ Affairs, Minister Assisting the Premier with South Australia’s Strategic Plan, Minister Assisting the Minister for Employment, Training and Further Education

Queensland

The Hon. Craig Wallace MPMinister for Main Roads


Human resources management‘ The skill, expertise and dedication of our people is key to achieving our objectives.’

NTC Chief Executive Nick Dimopoulos.

NTC Executives (left to right): Chief Officer Policy Meena Naidu, Chief Executive Nick Dimopoulos, Chief Officer Operations Praveen Reddy and Chief Officer Strategy Paul Sullivan


eXeCutIVe

CoRPoRate suPPoRt (aCRoss oRGaNIsatIoN)

Finance

Legal

Communications and Public Affairs

Administration

Human Resources

Information Technology

PRoJeCt teams8

COAG Road Reform Heavy Vehicle PricingmeeNa NaIdu Acting Project Director

National Heavy Vehicle RegulatorGeoRGe KoNstaNdaKos Project Director

Heavy Vehicle Access ArrangementsIaN HuNteR Project Director

National Rail Safety RegulatorGReG deImos Project Director

Australian Road Rules Reform ReviewNeIL WoNG Project Director

Smart Transport Strategic Research NeIL WoNG Project Director

Australian Vehicle Standards Rule Reform ReviewNeIL WoNG Project Director

Corporate Transport Safety Strategy JeFF PotteR Project Director

Compliance StrategyJeFF PotteR Project Director

Supply Chain StrategyIaN HuNteR Project Director

Maintenance BeN PIPeR Project Director

Nick DimopoulosChief executive

Meena NaiduChief officer Policy

Praveen ReddyChief officer operations

Paul SullivanChief officer strategy

8 Project teams comprise staff at all levels (senior managers, managers, senior policy analysts, policy analysts) and members are from a mix of disciplines (Including policy, legislative drafting, technical, research and implementation).

NTC organisational structure


The NTC has a project-based structure, which gives the organisation the flexibility it needs to dedicate staff where they are needed most. Project teams comprise staff at all levels and from a variety of disciplines (including policy, legal, economics and engineering). The NTC also uses secondments from, and to, the organisation to continually enhance its knowledge of best practice reform.

Developing our staff

The NTC completed a draft of its HR strategy during 2010–11. The strategy resulted in many initiatives being implemented to support the professional development of staff. These included delivering customised training programs, improving staff understanding of stakeholders through the stakeholder-speaker series, supporting staff undertaking external development programs and assisting staff in attending relevant conferences. The customised training courses were conducted in-house and covered such topics as performance management and project management.

The HR strategy will be finalised in 2011–12. It will deliver new professional development programs, such as corporate storytelling and the establishment of a staff consultative forum.

The NTC completed its first enterprise agreement during 2010–11. Among other things, this agreement emphasises the need to support the professional development of staff to achieve the organisation’s goals.

NTC’s code of conduct

The NTC’s code of conduct, model of cooperation and policies and procedures set the standard of professional conduct expected of every NTC staff member.

The code of conduct emphasises honesty, confidentiality, professionalism, diligence and the need to uphold the NTC’s integrity and reputation.

All new employees are provided with a copy of the code of conduct and model of cooperation as part of the induction process. Any significant changes to the code of conduct, model of cooperation or policies and procedures are communicated to all employees before they come into effect.

staFF PRoFILe:

Vinh Trinh Trainee Policy Analyst

Vinh joined the NTC in November 2010 for an internship to complement his logistics and supply chain management studies at RMIT University.

Vinh has been part of the National Rail Safety Regulator project, undertaking invaluable research for the team. Vinh has also observed key stakeholder meetings and participated in other learning opportunities.

Joining the NTC has broadened Vinh’s exposure to professional working environments. He has enjoyed learning about the organisation’s various projects and being part of a team striving to improve transport.

‘One of the main things I have learned at the NTC is the importance of stakeholder management. It really is essential for the success of projects to ensure all those involved are kept informed throughout the process’, he said.

A desire to be part of the competitive edge of business first sparked Vinh’s interest in logistics, a vital area he believes is often overlooked.

‘As the business environment becomes more competitive, companies have to continually look for ways to do things more efficiently. My aim is to work with businesses to improve their logistics and drive greater productivity’, said Vinh.

Human resources management

‘ My aim is to work with businesses to improve their logistics and drive greater productivity’


staFF PRoFILe:

Sarah Jones Policy Manager

Sarah joined the NTC from the Western Australian Department of Transport, where she was the Manager of Policy and Strategy in the Licensing Business Unit.

With a background in strategic analysis—particularly qualitative and quantitative research—and a love of writing, Sarah has been an invaluable team member on both the National Heavy Vehicle Regulator and Compliance and Enforcement projects.

‘Working at the NTC has enabled me to broaden my focus on policy to a national angle, having originally come from a state perspective. We [National Heavy Vehicle Regulator project members] have a very functional team with separate skills which really complement one another’, said Sarah.

Having the opportunity to talk to people in the industry face-to-face has also proved critical to Sarah’s work.

‘By having discussions with those who will be impacted by our work, we’re able to better understand how our projects will make a difference on the ground.’

Sarah says she thrives on the intellectual challenges and multiple complexities the transport industry presents. ‘People outside the industry would be quite surprised to discover the complexities and internal contradictions surrounding transport. It’s not simply a matter of issuing registration of a vehicle and licensing a driver.’

A keen writer, Sarah published her first novel—Red dress walking—in October 2008, with another to be released next year. She also writes for several journals and magazines, all experience which she believes adds depth to her work at the NTC.

‘The ability to develop a compelling argument on the basis of the available evidence is essential in my role.’

Occupational health and safety

The NTC places great emphasis on a providing a safe and healthy work environment for its staff.

The NTC’s Occupational Health and Safety (OH&S) policy and Health & Safety Management Arrangements (HSMA) outline the NTC’s ongoing commitment to workplace safety, its adherence to legal obligations and its dedication to a cooperative OH&S program in which management and staff work together to achieve its prevention objectives.

Staff, contractors and visitors to the NTC must comply with the standards and procedures set out in the HSMA manual.

Safety initiatives undertaken in the 2010–11 financial year include:

• appointment of staff health and safety representatives

• quarterly workplace safety assessments and adjustments

• periodic workstation ergonomic assessments

• safety inductions carried out for all new staff appointments.

The effect of the NTC’s ongoing workplace safety initiatives and program has been a consistently safe work environment for staff and visitors to the commission. No safety incidents occurred during the 2010–11 financial year.

The NTC’s OH&S policy and HSMA will be reviewed and updated in accordance with the Model Work Health & Safety Bill which comes into effect on 1 January 2012.

‘ People outside the industry would be quite surprised to discover the complexities and internal contradictions surrounding transport …’


staFF PRoFILe:

Jerome Carslake Strategy and Research Manager

Since joining the NTC in June 2009, Jerome has used strategic foresight to conduct environmental scans for NTC reforms. He has also assisted the NTC to identify organisations with which the NTC can mutually share knowledge.

In May 2011, Jerome was one of four professionals chosen from Australia to participate in the European Union’s Visitors Program. The program brings promising leaders from around the world to Europe to share knowledge and gain a first-hand appreciation of the EU’s goals, policies and people.

‘The trip was a fantastic networking and mentoring opportunity. I was able to meet and learn from a range of leading government, business and research organisations, such as the European Research Council and the International Transport Forum’, said Jerome. ‘The program gave me an insight into different approaches to tackling transport issues. I also found there was a lot of interest in the NTC’s reforms, such as the fatigue management system, Chain of Responsibility Legislation, Corporate Safety Partnership Review Project and PBS scheme.’

Jerome was particularly interested in Roadmap to a Single European Transport Area, a strategic initiative that aims to create a more sustainable transport system within the EU.

‘The vision links everything together and provides the people of Europe with a common understanding about why certain policies are in place, the need for infrastructure developments and why technological applications and innovative research is being conducted.

‘A key component of the vision is its consultative approach and the formation of linkages between various government departments, such as energy, transport and climate change. This ensures an integrated approach to tackling transport challenges.’

With a background in agriculture, it was the chance to create positive change in the transport industry that motivated Jerome to join the NTC. ‘I like to compare transport to the circulatory system. Without it, none of the body’s organs function. A well-functioning transport system makes cities sustainable, liveable and accessible. I feel immense satisfaction knowing I am part of a team that is committed to giving Australia the best possible transport system.’

Human Resources Management

‘ I like to compare transport to the circulatory system. Without it, none of the body’s organs function …’


Mr Nick Dimopoulos: Chief ExecutiveNick Dimopoulos’ professional career spans such industries as mining, agribusiness, logistics, finance, infrastructure and transport. He has extensive experience in areas covering strategy and development, treasury operations, risk management, financial and asset management, public policy, and mergers and acquisitions.

Prior to joining the NTC, Mr Dimopoulos held senior executive positions in publically listed companies and government-sector organisations. Mr Dimopoulos headed up the Committee for Economic Development of Australia (CEDA), oversaw the handing down of state budgets in the Victorian Treasury, was involved in acquisitions at BHP Billiton and worked on World Bank infrastructure projects in China.

Mr Dimopoulos is on a number of project boards relating to COAG transport reforms. His educational background includes studies in economics at the Australian National University and executive and postgraduate studies at the University of New South Wales and Harvard University.

Mr Greg Martin PSM: ChairmanGreg Martin is the Chair of the NTC having been appointed in 2008. Mr Martin is Deputy Chair of the Taxi Industry Board in Western Australia and a member of the Western Australian Freight and Logistics Council.

Until June this year, he was Professor of Planning and Transport Studies at Curtin University of Technology and Executive Director of the Planning and Transport Research Centre (PATREC), a unique ‘collaborative knowledge network’ of four Western Australian public universities.

Prior to joining PATREC in 2007, he was the Director General of the Western Australian Department for Planning and Infrastructure. His previous roles have included Commissioner of Main Roads and Executive Director Metropolitan in the Department of Transport in Western Australia.

His earlier career developed in the Commonwealth through engineering specialist, project management and corporate executive roles.

Mr Martin holds Bachelor degrees in Engineering with first class honours and Commerce from The University of Western Australia, a Master of Science from The University of California, Berkeley and a Graduate Diploma in Urban Systems from Swinburne College of Technology.

Mr Martin was awarded the Public Service Medal of the Order of Australia in the Australia Day 2008 Honours List for his outstanding service in the areas of planning and road infrastructure. Mr Martin was awarded the 2010 Transport Medal by the National Committee on Transport Engineering of Engineers Australia for his outstanding individual contribution to transport in Australia.

Ms Julie-Anne Schafer: CommissionerJulie-Anne Schafer was appointed a Commissioner of the NTC on 4 April 2008. Ms Schafer is an experienced company director in the transport, insurance, health and membership-services sectors. She is a Director of Queensland Rail Limited, Aviation Australia Pty Ltd, Territory Insurance Office, Calvary Ministries Limited and Nazareth Care. She is also Chair of Church Resources and CNA Limited. Ms Schafer has more than 30 years legal experience.

Previously, Ms Schafer was a Director and Chair of the Royal Automobile Club of Queensland, a Director of the Australian Automobile Association, a Director and Chair of RACQ Insurance and a director of several hospitals.

She also served on law faculty advisory committees at several Queensland universities. She was an adjunct Professor of Law at the University of Queensland and Deputy Chancellor of the Queensland University of Technology. She is a former winner of a Telstra Queensland Business Women’s Award.

Corporate governance


Professor Ian Johnston AM: Deputy ChairmanProfessor Ian Johnston was appointed a Commissioner of the NTC on 4 April 2008. He has worked in the transport field since 1966, and his experience spans all modes of transport. Professor Johnston has been a researcher, policy analyst, program administrator, senior executive and non-executive board member across a range of transport modes and settings within the Australian Government, the government of Victoria, a national research and development company and in academia.

Professor Johnston has special interests in how societies, governments and organisations think about and manage safety, and in the translation of research results into policy and practice. He retired as Director of the Monash University Accident Research Centre (MUARC) at the end of 2006 and is now a part-time professor at the centre. He is also a non-executive Director on the Board of DECA Ltd (Australia’s largest driver training organisation), a member of Australia’s National Road Safety Council, a member of the Core Advisory Group to the World Bank’s Global Road Safety Facility and an associate editor of the international scientific journal Accident Analysis and Prevention.

Mr Bill Noonan OAM: CommissionerBill Noonan was appointed a Commissioner of the NTC in 2008. He has been involved in the transport industry for over 45 years, beginning as a truck driver in 1964 and then being elected as an official of the Transport Workers Union (TWU) in 1974.

Mr Noonan served as Victorian Branch Secretary of the Victorian/Tasmanian branch of the TWU from 1994 to 2009 and also as Federal President for a term. He received an OAM for services to the road transport industry, particularly in respect to road safety and the trade union movement.

Mr Noonan is currently a director of TWU Super Fund and a member of the Victorian Road Freight Advisory Council. He has served on several transport-related industry and government boards throughout his career.

As a Director of the Institute for Breathing and Sleep, Mr Noonan has been instrumental in developing Healthbreak, a confidential workplace health-assessment program that has already screened 5000 truck and bus drivers. After serving as a Men’s Health Ambassador, Mr Noonan was appointed a member of the Department of Health and Ageing Reference Group by the Federal Government and was involved in preparing the Male Health Policy launched by the Prime Minister in 2010.

Mr Noonan is an Australia Day Ambassador, Chairman of the Victorian Police Blue Ribbon Foundation and member of the Western Melbourne Regional Development Committee.

Mr Frank Muller: CommissionerFrank Muller was appointed a Commissioner of the NTC in September 2008. Mr Muller is a Professorial Visiting Fellow at the Institute of Environmental Studies, University of New South Wales. He has a 37 year career in environmental, energy and land use policy in Australia and the United States in government, universities, private consulting and the community sector.

Mr Muller has a special interest in strategies to better align economic, environmental and social goals in government policy. He is an expert in climate change policy and carbon pricing.

Mr Muller previously headed climate change policy in the NSW Government and, during the 1990s, directed policy research at the University of Maryland’s Center for Global Change in Washington, advising the United Nations, the Clinton administration, US state governments and several developing countries.

Mr Muller has a Master of Public Administration from Harvard University and is a graduate of the Australian Institute of Company Directors. He is also a non-executive Director of the consumer organisation Choice.

Corporate governance


CommissionersThe Board of Commissioners (hereafter the board) operates under the National Transport Commission Act 2003 and the Commonwealth Authorities and Companies Act 1997. The board, in conjunction with the ATC, is responsible for the strategic direction and performance of the NTC. An essential part of this responsibility is the establishment of a sound, risk-based system of control that provides reasonable assurance that the organisation’s objectives will be met within an acceptable degree of risk. The board also has a tactical role in maintaining a watch over the external and internal environments, the CEO’s performance and the operations. The board has no day-to-day management role but is responsible for, and has authority to determine, all matters related to the policies, practices, management and operations of the NTC.

Audit and Risk CommitteeThe NTC Audit and Risk Committee, under the guidance of the board, is responsible for overseeing the corporate governance of the organisation. The committee considers good corporate governance to be a matter of high importance and aims for best practice throughout the workplace.

The committee’s primary objectives are to:

• ensure that the interests of the NTC and its associated shareholders (all governments providing funding to the NTC) are properly protected by way of accurate financial reporting and thorough internal controls

• oversee risk management and other issues to do with business continuity

• provide the board with an independent assessment of the NTC’s financial position and accounting affairs, with particular emphasis on assurance, quality, reliability and integrity of the financial information used by the Commission

• review the effectiveness of the NTC’s internal control policies and procedures for identifying, assessing and reporting risks.

At the beginning of each calendar year, a detailed schedule is established by the committee to ensure that all accountability and oversight responsibilities are met.

The committee meets as often as it considers necessary, but no less than once per calendar quarter. Outcomes from each meeting are summarised and reported to the board by the Chair of the Audit and Risk Committee.

The committee members during the 2010–11 financial year were:

• Professor Ian Johnston AM (Chair of the Committee)

• Ms Julie-Anne Schafer

• Mr Bill Noonan OAM

• Mr Frank Muller.

Other Commissioners may attend meetings either by invitation or as an observer.

Commission meetingsThe following table sets out the number of Commission meetings and Audit and Risk Committee meetings held during the financial year and the number of meetings attended by each Commissioner. During the financial year, six Commission meetings and four Audit and Risk Committee meetings were held.

COMMISSIONERS COMMISSION MEETINgS

AUDIT AND RISK COMMITTEE MEETINgS

No. eligible to attend

Attended No. eligible to attend

Attended

Greg Martin 6 6 0 0

Ian Johnston 6 6 4 4

Nick Dimopoulos 6 6 0 3 (attended

by invitation)

Julie-Anne Schafer 6 6 4 2

Bill Noonan 6 6 4 4

Frank Muller 6 6 4 4


Risk management and fraud controlThe NTC’s risk management plan and business continuity plan assist the NTC in mitigating a broad range of risks to the organisation, both internal and external.

The risk management plan reflects the NTC’s commitment to managing risk in accordance with best practice. The objectives of the plan are to:

• ensure that significant risks faced by the Commission are understood and managed

• ensure that staff are familiar with risk management practices and assume responsibility for managing the risk in their areas of control

• ensure that risk is taken into account when making every decision

• provide appropriate protection of employees, assets, information and business operations

• protect the Commission’s image and public reputation.

The business continuity plan focuses on operational issues that might arise should an emergency or other event disrupt the organisation. The objectives of the plan are to:

• ensure that appropriate service levels are re-established and maintained

• enable that the NTC can recover from a disruption as quickly as possible

• minimise the likelihood and impact of disruption

• ensure that staff are trained in risk management practices and assume responsibility for managing risk in their areas

• assist staff when disruptions occur.

Both the risk management plan and business continuity plan are readily available to all staff and are discussed with new staff during the organisation’s induction process.

The plans are reviewed regularly by the organisation at least once every calendar quarter, with changes reported to the Audit and Risk Committee and Board of Commissioners.

Fraud control is currently covered by the risk management plan. During 2011–12, the NTC will develop a separate fraud control plan, in accordance with the Commonwealth Fraud Control Guidelines. No instances of fraud were recorded in the workplace during the 2010–11 financial year.

Business planning In accordance with the National Transport Commission Act 2003 and Inter-governmental Agreement, the NTC, jointly with government and industry, must develop a strategic plan. This plan outlines, for the following three years, the NTC’s proposed rolling work program relating to regulatory and operational reform in rail, road and intermodal transport. The planned-for objectives and milestones are based on recommendations and advice from the ATC, COAG and associated working groups.

The strategic plan must be endorsed by the ATC before being implemented by the NTC.

Indemnities and insurance For the reporting period ending June 2011, no indemnity claims were made against the NTC or any of its officers. The organisation ensures adequate insurance cover is obtained each year to cover all areas of the organisation, including professional indemnity, directors and officers, general business, travel and workers compensation.

External scrutinyThere were no reports by the Auditor General (other than the report on financial statements) or the Commonwealth Ombudsman that referred to the NTC.

The Australian Senate Rural Affairs and Transport Legislation Committee examined and reported on the NTC’s annual report in March 2011. There were no other reports by parliamentary committees during the 2010–11 financial year.

No judicial decision was made in 2010–11 that had, or may have, an impact on the organisation’s operation, the National Transport Commission Act 2003 or the Inter-governmental Agreement.



Financial statements 2010–11


National transport Commission

Statement by the Commissioners, Chief Executive and Manager – Finance and Governance

In our opinion, the attached financial statements for the year ended 30 June 2011 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997, as amended.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the National Transport Commission will be able to pay its debts as and when they become due and payable.

This statement is made in accordance with a resolution of the Commissioners.

Greg Martin Nick Dimopoulos Binh Le Chairman Chief Executive Manager - Finance and Governance Date: 19/08/2011 Date: 19/08/2011 Date: 19/08/2011



Independent auditor’s report



Statement of comprehensive incomefor the period ended 30 June 2011

Notes

2011 $

2010 $

EXPENSES

Employee benefits 3A 5,876,903 4,761,323

Suppliers’ expenses 3B 5,869,131 2,792,933

Depreciation and amortisation 3C 208,465 154,588

Write-down and impairment of assets 3D - 18,680

Total expenses 11,954,499 7,727,524

lESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 4A 181,960 162,443

Interest 4B 201,574 152,567

Rental income 4C 10,246 121,290

Total own-source revenue 393,780 436,300

Net cost of services 11,560,719 7,291,224

Revenue from government 4D 8,616,139 8,483,000

Surplus/(deficit) (2,944,580) 1,191,776

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation reserves - 95,443

Total other comprehensive income - 95,443

Total comprehensive income (2,944,580) 1,287,219

The above statement should be read in conjunction with the accompanying notes.



Balance sheetas at 30 June 2011

Notes

2011 $

2010 $

ASSETS

Financial assets

Cash and cash equivalents 5A 2,750,615 5,450,179

Trade and other receivables 5B 146,252 212,582

Total financial assets 2,896,867 5,662,761

Non-financial assets

Buildings – leasehold improvements 6A 242,159 237,017

Plant and equipment 6B,C 280,143 279,985

Other 6D 19,547 38,667

Total non-financial assets 541,849 555,669

Total assets 3,438,716 6,218,430

lIABIlITIES

Payables

Suppliers 7A 534,754 390,856

Other payables 7B 99,568 107,065

Total payables 634,322 497,921

Provisions

Employee provisions 8A 662,707 634,242

Total provisions 662,707 634,242

Total liabilities 1,297,029 1,132,163

Net assets 2,141,687 5,086,267

EQUITY

Reserves 119,607 119,607

Retained earnings 2,022,080 4,966,660

Total equity 2,141,687 5,086,267




Statement of changes in equityfor the period ended 30 June 2011

Asset revaluation

Retained earnings Reserve Total equity

2011 2010 2011 2010 2011 2010

$ $ $ $ $ $

Opening balance

Balance carried forward from previous period

4,966,660 3,774,884 119,607 24,164 5,086,267 3,799,048

Surplus/(deficit) for the period (2,944,580) 1,191,776 - 95,443 (2,944,580) 1,287,219

Closing balance 2,022,080 4,966,660 119,607 119,607 2,141,687 5,086,267




Cash flow statementfor the period ended 30 June 2011

Notes

2011 $

2010 $

OPERATINg ACTIVITIES

Cash received

Goods and services 8,859,017 8,497,396

Interest 201,574 152,567

Net GST received 545,167 204,920

Other 70,880 213,285

Total cash received 9,676,638 9,068,168

Cash used

Employees 5,754,596 4,610,466

Suppliers 6,407,841 3,186,673

Total cash used 12,162,437 7,797,139

Net cash flows from operating activities 9 (2,485,799) 1,271,029

INVESTINg ACTIVITIES

Cash used

Purchase of property, plant and equipment 213,765 162,030

Total cash used 213,765 162,030

Net cash flows (used by) investing activities (213,765) (162,030)

Net increase in cash held (2,699,564) 1,108,999

Cash and cash equivalents at the beginning of the reporting period 5,450,179 4,341,180

Cash and cash equivalents at the end of the reporting period 5A 2,750,615 5,450,179




Schedule of commitmentsas at 30 June 2011

2011 $

2010 $

BY TYPE

Commitments receivable

Sublease rental income - 242,850

Net GST recoverable on commitments (123,338) (146,895)

Total commitments receivable (123,338) 95,955

Other commitments

Commitments payable

Operating leases1 628,616 1,179,592

Other 728,099 436,252

Total other commitments 1,356,715 1,615,844

Net commitments by type 1,233,377 1,711,799

BY MATURITY

Commitments receivable

Operating lease income

One year or less (123,338) 29,732

From one to five years - 66,223

Total operating lease income (123,338) 95,955

Commitments payable

Operating lease commitments

One year or less 628,616 603,576

From one to five years - 576,016

Total operating lease commitments 628,616 1,179,592

Other commitments

One year or less 728,099 436,252

Total other commitments 728,099 436,252

Net commitments by maturity 1,233,377 1,711,799

NB: Commitments are GST inclusive where relevant.

1 Operating leases included are effectively non-cancellable and comprise leases for office accommodation. Lease payments are subject to annual increase in accordance with upward movements in the Consumer Price Index. The initial periods of office accommodation leases are still current and each may be renewed for up to 3 years at the Commission’s option, following a once-off adjustment of rentals to current market levels. The current lease is due to expire May 2012.




Schedule of asset additionsfor the period ended 30 June 2011

The following non-financial non-current assets were added in 2010-11:

Buildings – leasehold

improvementsPlant &

equipment Total

Additions funded in the current year $ $ $

By purchase - other 104,237 109,528 213,765

Total additions 104,237 109,528 213,765

The following non-financial non-current assets were added in 2009-10:

Buildings – leasehold

improvementsPlant &

equipment Total

Additions funded in the current year $ $ $

By purchase - other 5,670 156,360 162,030

Total additions 5,670 156,360 162,030

The above schedule should be read in conjunction with the accompanying notes.



Notes to and forming part of the financial statementsfor the period ended 30 June 2011

Note 1: Summary of significant accounting policies1.1 Objectives of the Commission

The National Transport Commission (the Commission) is an independent body established under Commonwealth legislation and funded jointly by the Commonwealth, states and territories. Its principal objectives are to improve transport productivity, efficiency, safety and environmental performance and regulatory efficiency in a uniform or nationally consistent manner. The principal objectives are achieved through the effective implementation (by others) of transport reforms based on nationally consistent policy and regulation developed by the Commission. The Commission is required to work with states, territories and the Commonwealth to develop implementation plans, and monitor implementation, maintain and review agreed reforms. The Commission works in co-operation with transport agencies, industry and other stakeholders and reports to the Australian Transport Council (ATC), a council of transport and roads ministers from all jurisdictions.

The continued existence of the Commission in its present form and with its present programs is dependent on the Commission’s periodic review (in accordance with the NTC Act) and on continuing funding by the Commonwealth, states and territories.

1.2 Basis of preparation of the financial statements

The financial statements and notes are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are general purpose financial statements.

The financial statements and notes have been prepared in accordance with:

• Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2010; and

• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest dollar unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the Commission or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when, and only when, the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant accounting judgements and estimates

In the process of applying the accounting policies listed in this note, the Commission has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

• The fair value of leasehold improvements has been taken to be the market value of similar leasehold improvements as determined by an independent valuer.

1.4 New Australian Accounting Standards

Adoption of new Australian Accounting Standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

Future Australian Accounting Standard requirements

New standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the impact of adopting these pronouncements when effective will have no material financial impact on future reporting periods.




1.5 Revenue

Revenue from the sale of goods is recognised when:

• the risks and rewards of ownership have been transferred to the buyer

• the Commission retains no managerial involvement or effective control over the goods

• the revenue and transaction costs incurred can be reliably measured

• It is probable that the economic benefits associated with the transaction will flow to the Commission.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured

• the probable economic benefits with the transaction will flow to the Commission.

Service revenues are government contributions approved by the ATC and other government project funding. Revenues are recognised as revenue to the extent that they have been received or when it is highly probable that amounts are likely to be received.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

Revenue from government

Funding received or receivable from agencies (appropriated to the agency as a CAC Act body payment item for payment to the Commission) is recognised as revenue from government unless they are in the nature of an equity injection or a loan.

Parental Leave Payments Scheme

The Commission offsets amounts received under the Parental Leave Scheme (for payment to employees) by amounts paid to employees under that scheme, because these transactions are only incidental to the main revenue-generating activities of the Commission. Amounts received by the Commission not yet paid to employees would be presented as gross cash and a liability (payable). The entity received no money under the Paid Parental Leave Scheme.

1.6 Gains

Sale of assets

Gains from the disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the government as owners

Equity injections

Amounts that are designated as equity injections for a year are recognised directly in contributed equity in that year.

Restructuring of administrative arrangements

Net assets received from or relinquished to another government entity under a restructuring of administrative arrangements are adjusted to their book value directly against contributed equity.

Other distributions to owners

The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.

1.8 Employee benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119), employee benefits and termination benefits due within twelve months of end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.




Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Commission’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to employees’ years of service at the Commission. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

Contributions are made by the Commission to employee superannuation funds and are charged as expenses when incurred.

The liability for superannuation recognised at 30 June 2011 represents outstanding contributions for the final fortnight of the year.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis, which is representative of the pattern of benefits derived from the leased assets.

1.10 Borrowing costs

All borrowing costs are expensed as incurred.

1.11 Cash and cash equivalents

Cash and cash equivalents includes notes and coins held and any deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount.

1.12 Financial assets

The Commission classifies its financial assets in the following categories:

• loans and receivables;

• held-to-maturity investments;

• financial assets at fair value through profit or loss; and

• available-for-sale financial assets.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. The Commission only holds financial assets of loans and receivables.

Financial assets are recognised and derecognised upon trade date.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.




Income is recognised on an effective interest rate basis except for financial assets at fair value through profit or loss.

Loans and receivables

Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of financial assets

Financial assets are assessed for impairment at end of each reporting period.

• Financial assets held at amortised cost – if there is objective evidence that an impairment loss has been incurred for loans and receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the statement of comprehensive income.

• Available for sale financial assets held at cost – if there is objective evidence that an impairment loss has been incurred the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

• Financial assets held at cost – if there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

1.13 Financial liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Other financial liabilities

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.14 Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are recognised when settlement is greater than remote.

The Commission has no contingent liabilities, assets or any significant contingencies for the year ended 30 June 2011.

1.15 Acquisition of assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amount at which they were recognised in the transferer’s accounts immediately prior to restructuring.

1.16 Leasehold improvements, plant and equipment

Asset recognition threshold

Purchases of leasehold improvements, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).




The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located.

Revaluations

Fair values for each class of asset are determined as shown below:

Asset class Fair value measured at

Leasehold improvements Depreciated replacement cost

Plant and equipment Market selling price

Following initial recognition at cost, leasehold improvement, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in surplus/deficit. Revaluation decrements for a class of assets are recognised directly in surplus/deficit to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable leasehold improvements, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Commission using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2011 2010

Leasehold improvements Lease term Lease term

Plant and equipment 2 to 9 years 2 to 9 years

Impairment

All assets were assessed for impairment at 30 June 2010. Where indications of impairment exist, the asset receivable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Commission were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.17 Taxation

The Commission is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

• where the amount of GST incurred is not recoverable from the Australian Taxation Office

• for receivables and payables.




Note 2: Events after the reporting periodThere were no events subsequent to the reporting period that have or will materially affect the ongoing structure and financial activities of the Commission.

Note 3: Expenses

2011 $

2010 $

Note 3A: Employee Benefits

Wages and salaries 5,400,644 4,303,425

Superannuation:

Defined contribution plans 447,794 364,586

Leave and other entitlements 28,465 93,312

Total employee benefits 5,876,903 4,761,323

Note 3B: Suppliers

Goods and services

Consultants 3,894,252 1,220,481

Other 1,375,832 987,827

Total goods and services 5,270,084 2,208,308

Goods and services are made up of :

Provision of goods – external parties 1,375,832 987,827

Rendering of services – external parties 3,894,252 1,220,481

Total goods and services 5,270,084 2,208,308

Other supplier expenses

Operating lease rentals:

Minimum lease payments 593,422 579,257

Workers compensation premiums 5,625 5,368

Total other supplier expenses 599,047 584,625

Total supplier expenses 5,869,131 2,792,933

Note 3C: Depreciation

Depreciation:

Plant & equipment 109,370 68,921

Buildings

Lease-hold improvements 99,095 85,667

Total depreciation 208,465 154,588

Note 3D: Write-down and impairment of assets

Impairment/write-down of plant and equipment - 18,680

Total write-down and impairment of assets - 18,680




Note 4: Income

2011 $

2010 $

Revenue

Note 4A: Sale of goods and rendering of services

Provision of goods – external parties 55,988 84,832

Rendering of services – external parties 125,972 77,611

Total sale of goods and rendering of services 181,960 162,443

Note 4B: Interest

Deposits 201,574 152,567

Total interest 201,574 152,567

Note 4C: Rental income

Operating lease:

Sub-lease 10,246 121,290

Total rental income 10,246 121,290

Revenue from government

Note 4D: Revenue from government

Federal Government contribution approved by ATC-related entities 2,928,450 2,836,400

State and territory government contributions approved by ATC- external parties

5,437,714 5,267,600

Government revenue based on specific project funding - related entities 249,975 379,000

Total revenue from government 8,616,139 8,483,000

The entity received no money under the Paid Parental Leave Scheme.




Note 5: Financial assets

2011 $

2010 $

Note 5A: Cash and cash equivalents

Cash on hand or on deposit 500 500

Deposits 2,750,115 5,449,679

Total cash and cash equivalents 2,750,615 5,450,179

Note 5B: Trade and other receivables

Goods and services – external parties 71,191 148,530

GST receivable from the Australian Taxation Office 75,061 64,052

Total trade and other receivables 146,252 212,582

Receivables are expected to be recovered in:

No more than 12 months 146,252 212,582

More than 12 months - -

Total trade and other receivables 146,252 212,582

Receivables are aged as follows:

Not overdue 146,252 212,582

Overdue by:

0 to 30 days - -

31 to 60 days - -

61 to 90 days - -

More than 90 days - -

Total receivables 146,252 212,582




Note 6: Non-financial assets

2011 $

2010 $

Note 6A: Buildings – leasehold improvements

Leasehold improvements

– fair value 737,167 632,930

– accumulated depreciation (495,008) (395,913)

Total buildings- leasehold improvements 242,159 237,017

No indicators of impairment were found for leasehold improvements.

No land or buildings are expected to be sold or disposed of within the next 12 months.

Note 6B: Plant and equipment

Plant and equipment:

– fair value 626,638 517,110

– accumulated depreciation (346,495) (237,125)

Total plant and equipment 280,143 279,985

No indicators of impairment were found for plant and equipment.

No plant or equipment are expected to be sold or disposed of within the next 12 months.

Asset valuation was carried out in May 2010. The net increase in fair value was $76,762.

Note 6C: Analysis of leasehold improvements, plant and equipment

TABLE A – Reconciliation of the opening and closing balances of leasehold improvements, plant and equipment (2010-11)

Buildings - leasehold

improvements $

Plant & equipment

$Total

$

As at 1 July 2010

Gross book value 632,930 517,110 1,150,040

Accumulated depreciation and impairment (395,913) (237,125) (633,038)

Net book value 1 July 2010 237,017 279,985 517,002

Additions:*

by purchase 104,237 109,528 213,765

Depreciation (99,095) (109,370) (208,465)

Net book value 30 June 2011 242,159 280,143 522,302

Net book value as of 30 June 2011 represented by:

Gross book value 737,167 626,638 1,363,805


242,159 280,143 522,302

*Disaggregated addition’s information is disclosed in the schedule of asset additions.


TABLE B – Reconciliation of the opening and closing balances of leasehold improvements, plant and equipment (2009-10)

Buildings - leasehold

improvements $

Plant & equipment

$Total

$

As at 1 July 2009

Gross book value 597,774 313,474 911,248


Net book value 1 July 2009 287,528 145,270 432,798

Additions:*

by purchase 5,670 156,360 162,030

Depreciation (85,667) (68,921) (154,588)

Revaluations in other comprehensive income 29,486 47,276 76,762

Net book value 30 June 2010 237,017 279,985 517,002

Net book value as of 30 June 2010 represented by:

Gross book value 632,930 517,110 1,150,040


237,017 279,985 517,002

*Disaggregated addition’s information is disclosed in the schedule of asset additions.

Note 6D: Other non-financial assets 2011 $

2010 $

Prepayments 19,547 38,667

Total other non-financial assets 19,547 38,667

All other non-financial assets are expected to be received within 12 months.

No indicators of impairment were found for other non-financial assets.




Note 7: Payables

2011 $

2010 $

Note 7A: Suppliers

Trade creditors

Total supplier payables 534,754 390,856

534,754 390,856

Supplier payables expected to be settled within 12 months:

External parties

Total supplier payables 534,754 390,856

534,754 390,856

Settlement is usually made within 30 days.

Note 7B: Other payables

Superannuation

GST payable to ATO - 2,119

Other 2,563 14,679

Total other payables 97,005 90,267

99,568 107,065

Total other payables are expected to be settled in:

No more than 12 months

Total other payables 99,568 107,065

99,568 107,065

Note 8: Provisions2011

$2010

$

Note 8A: Employee provisions

Leave 662,707 634,242

Total employee provisions 662,707 634,242

Employee provisions are expected to be settled in:

No more than 12 months 402,509 437,522

More than 12 months 260,198 196,720

Total employee provisions 662,707 634,242






Note 9: Cash flow reconciliation

2011 $

2010 $

Reconciliation of cash and cash equivalents as per balance sheet to cash flow statement

Report cash and cash equivalents as per:

Cash flow statement 2,750,615 5,450,179

Balance sheet 2,750,615 5,450,179

Difference - -

Reconciliation of net cost of services to net cash from operating activities:

Net cost of services (11,560,718) (7,291,224)

Add revenue from government 8,616,139 8,483,000

Adjustment for non-cash items

Depreciation / amortisation 208,465 154,588

Net write-down of non-financial assets - 18,680

Change in assets / liabilities

(Increase) / decrease in net receivables 66,330 (152,826)

(Increase) / decrease in prepayments 19,120 10,547

Increase / (decrease) in employee provisions 28,465 93,312

Increase / (decrease) in supplier payables 143,899 (50,680)

Increase / (decrease) in prepayments received - -

Increase / (decrease) in other payables (7,499) 5,632

Net cash from (used by) operating activities (2,485,799) 1,271,029

Note 10: Commissioners remuneration

The number of Commissioners of the Commission included in these figures are shown below in the relevant remuneration bands:

2011 2010

$ Nil - $ 14,999 - 1

$ 15,000 - $ 29,999 4 3

$ 45,000 - $ 59,999 1 1

$ 60,000 - $ 74,999 - -

Total 5 5

Total remuneration received or due and receivable by Commissioners of the Commission $ 129,986




Note 11: Related party disclosuresThere were no related party transactions during the year.

Note 12: Senior executive remunerationNote 12A: Senior executive remuneration expense for the reporting period

2011 $

2010 $

Short-term employee benefits:

Salary 1,970,122 1,678,858

Annual leave accrued 154,332 171,513

Total short-term employee benefits 2,124,454 1,850,371

Post-employment benefits:

Superannuation 177,311 151,097

Total post-employment benefits 177,311 151,097

Other long-term benefits:

Long-service leave 228,879 254,538

Total other long-term benefits 228,879 254,538

Total 2,530,644 2,256,006

Notes:

1. Note 12A was prepared on an accrual basis (so the performance bonus expenses disclosed above differ from the cash ‘Bonus paid’ in Note 12B).

2. Note 12A excludes acting arrangements and part-year service where remuneration expensed was less than $150,000.

Note 12B: Average annual remuneration packages and bonus paid for substantive senior executives as at the end of the reporting period

As at 30 June 2011 As at 30 June 2010

No. of exec. Base salary Total remuneration

package

No. of exec. Base salary Total remuneration

package

less than $150,000* 3 $130,885 $142,664 6 $129,546 $141,205

$150,000 to $179,999 2 $137,986 $150,404 3 $154,657 $168,577

$180,000 to $209,999 4 $175,206 $190,975 - - -

$210,000 to $239,999 - - - 1 $211,670 $230,720

$240,000 to $269,999 - - - - - -

$270,000 to $299,999 1 $271,642 $296,090 1 $261,734 $285,290

10 11

*Excluding acting arrangements and part-time service.

Note: total remuneration on package represents base salary plus superannuation.




Note 12C: Other highly paid staff

During the reporting period, there were no employees whose salary plus performance bonus were $150,000 or more.

Note 13: Remuneration of auditors

2011 $

2010 $

Financial statement audit services provided to the Commission.

The fair value of the services provided was: 13,600 13,500

13,600 13,500

No other services were provided by the auditor of the financial statements.

Note 14: Average staffing levels

2011 2010

The average staffing levels for the Commission during the year were: 45 40

Note 15: Financial instruments

2011 $

2010 $

15A: Categories of financial instruments

Financial assets

Loans and receivables

Cash and cash equivalents 2,750,615 5,450,179

Receivables for goods and services 71,191 148,529

Carrying amount of financial assets 2,821,806 5,598,708

Financial liabilities

Suppliers payable 534,754 390,856

Carrying amount of financial liabilities 534,754 390,856

15B: Net income and expense from financial assets

loans and receivables

Interest revenue (Note 4B) 201,574 152,567

Net gain from loans and receivables 201,574 152,567

Net gain from financial assets 201,574 152,567




15C: Fair value of financial instruments

FINANCIAl ASSETS

Carrying amount

2011 $

Fair value 2011

$

Carrying amount

2010 $

Fair value 2010

$

Cash and cash equivalents 2,750,615 2,750,615 5,450,179 5,450,179

Receivables for goods and services 71,191 71,191 148,529 148,529

Total 2,821,806 2,821,806 5,598,708 5,598,708

FINANCIAl lIABIlITIES

Suppliers payable 534,754 534,754 390,856 390,856

Total 534,754 534,754 390,856 390,856

15D: Credit risk

Credit risk is the risk of financial loss as a result of failure by a client or counterpart to meet its contractual obligations. The finance department is responsible for the analysis and monitoring of its credit risk exposure. All credit exposures are monitored regularly against allowed limits. To mitigate credit risk, letters of credit and terms of trade are introduced where appropriate. The Commission’s total exposure to credit risks is limited to its trade receivables.

The average credit period for trade receivables is 30 days. The Commission holds no collateral to mitigate against credit risk.

Credit quality of financial instruments not past due or individually determined as impaired.

Not past due nor impaired

2011 $

Not past due nor impaired

2010 $

Past due or impaired

2011 $

Past due or impaired

2010 $

Receivables for goods and services 71,191 148,529 - -

Total 71,191 148,529 - -

15E: liquidity risk

Liquidity risk is the risk that the Commission is unable to meet its financial obligations as they fall due, which could arise due to mismatches in cash flows. Funding and liquidity management is performed by the finance department on a weekly basis and regular reports are provided to management and Commissioners. Payments take place once a week, which ensures all suppliers are paid within the established terms of trade. The average credit period for supplier payments is 30-60 days.

Maturities for non-derivative financial liabilities 2011

On demand 2011

$

within 1 year 2011

$

1 to 2 years 2011

$

2 to 5 years 2011

$

> 5 years 2011

$

Total 2011

$

Suppliers payable 534,754 - - - - 534,754

Total 534,754 - - - - 534,754

Maturities for non-derivative financial liabilities 2010

On demand 2010

$

within 1 year 2010

$

1 to 2 years 2010

$

2 to 5 years 2010

$

> 5 years 2010

$

Total 2010

$

Suppliers payable 390,856 - - - - 390,856

Total 390,856 - - - - 390,856 The Commission holds no derivative financial liabilities in the current or prior year.


15F: Market risk

The Commission is not exposed to currency risk or other price risk.

The method used to arrive at the possible change of 75 basis points was based on both statistical and non-statistical analysis. The statistical analysis has been based on the cash rate for the past five years issued by the Reserve Bank of Australia (RBA) as the underlying dataset. This information is then revised and adjusted for reasonableness under the current economic circumstances. 75 basis points is considered reasonable because it is reasonably possible that there will be greater volatility compared to that which has been experienced in recent years, however, not to the extent of the extraordinary volatility experienced in 2010-11.

Sensitivity analysis of the risk to which the Commission was exposed 2011

Change in risk

variable

Effect on

Profit and loss 2010

Equity 2010

Risk variable % $ $

Interest rate risk Interest rate 0.75 30,753

Interest rate risk Interest rate -0.75 (30,753)

Sensitivity analysis of the risk to which the Commission was exposed 2010

Change in risk

variable

Effect on

Profit and loss 2010

Equity 2010

Risk variable % $ $

Interest rate risk Interest rate 0.75 36,718

Interest rate risk Interest rate -0.75 (36,718)

Note 16: Compensation and debt reliefNo payments were made during the reporting period. (2010: No payments made)

Note 17: Reporting of outcomesThe National Transport Commission is an independent body established under Commonwealth legislation and funded jointly by the Commonwealth, states and territories. The Commission has one outcome which is to improve the efficiency, safety and administration of land transport in Australia, and to reduce its environmental impact. The principal objective is achieved through the effective implementation (by others) of transport reforms based on nationally consistent policy and regulation developed by the Commission.




Note 17A: Net cost of outcome delivery

Outcome 1

2011 $

2010 $

Expenses 11,954,499 7,727,524

Income from non-government sector

Activities subject to cost recovery - -

Other 393,780 436,300

Total 393,780 436,300

Other own-source income - -

Net cost of outcome delivery 11,560,719 7,291,224

There were no competitive neutrality payments made during the reporting period. (2010: No payments made)

Note 17B: Major classes of expenses, income, assets and liabilities by outcome

Outcome 1

2011 $

2010 $

Expenses:

Employee benefits 5,876,903 4,761,323

Supplier expenses 5,869,131 2,792,933

Depreciation and amortisation 208,465 154,588

Write-down and impairment of assets - 18,680

Total 11,954,499 7,727,524

Income:

Income from government 8,616,139 8,483,000

Sale of goods and rendering of services 181,960 162,443

Interest 201,574 152,567

Rental income 10,246 121,290

Total 9,009,919 8,919,300

Assets

Cash and cash equivalents 2,750,615 5,450,179

Trade and other receivables 146,252 212,582

Buildings – leasehold improvements 242,159 237,017

Plant and equipment 280,143 279,985

Other non-financial assets 19,547 38,667

Total 3,438,716 6,218,430

liabilities

Suppliers 534,754 390,856

Other payables 99,568 107,065

Employee provisions 662,707 634,242

Total 1,297,029 1,132,163




Appendix A: Report under the Freedom of Information Act 1982

Freedom of information requests during 2010–11The Commission received one request for access to documents under the Freedom of Information Act 1982 during the period 1 July 2010 to 30 June 2011. The Commission provided some of the information sought within 30 days after the request was made, and the request was subsequently withdrawn.

Freedom of information enquiriesAll enquiries concerning access to documents under the Freedom of Information Act 1982 should be directed to the:

FOI Contact OfficerNational Transport CommissionLevel 15/628 Bourke StreetMelbourne, Victoria 3000Phone: 03 9236 5000Fax: 03 9642 8922Email: [email protected]

Information required by the Freedom of information Act 1982The information that the Commission is required to publish under Part II of the Freedom of Information Act 1982 can be found on the Commission’s website (www.ntc.gov.au) under the heading “FOI information”.

Appendix B: Report under the Commonwealth Electoral Act 1918

The following table outlines payments made to market research agencies over $10,000 during 2010–11.

MARKET RESEARCH AgENCY

AMOUNT (INCLUDING GST)

PURPOSE

GA Research $187,228.80 Explore public perception of transport challenges to inform the Smart transport for a growing nation project.

AMR Interactive

$143,000.00 Explore public perceptions of the Australian Road Rules and the Australian Vehicle Standards Rules to inform the review of these rules.

Synovate Pty Ltd

$42,218.00 Explore community attitudes towards freight vehicles, including PBS vehicles to inform future communications about heavy vehicles and the PBS scheme.

The NTC did not make any payments to advertising agencies, polling organisations, direct mail organisations or media advertising organisations as defined in section 311A (1) and (2) of the Commonwealth Electoral Act 1918.

Appendix C: ATC submissions

NUMBER SUBMISSION DATE ISSUED

ATC 11/04 Heavy Vehicle Driver Fatigue Laws – Counting Time Enforcement

March 2011

Appendices


Appendix D: Report under the Environment Protection and Biodiversity Conservation Act 1999

The NTC is committed to developing reforms which uphold the principles of ecologically sustainable development, as detailed in section 516A of the Environment Protection and Biodiversity Conservation Act 1999.

The NTC’s mission is to develop reforms which deliver safe, efficient and sustainable transport for Australia. The impacts of all our reforms are objectively assessed against our policy objectives, one of which is to protect the environment.

Environmental performanceThe NTC is committed to reducing the impact of its office operations on the environment. Actions taken during the 2010–11 financial year include:

• recycling paper, plastic, bottles and toner cartridges

• recycling unwanted computer equipment such as monitors, hard drives, cabling, keyboards and other IT equipment

• installing equipment that has energy-saving features, such as laptops (which are more energy-efficient than desktop computers), photocopiers and printers

• ensuring double-sided printing is the default setting on all printers

• encouraging staff to use public transport by offering discounted yearly tickets

• switching off all office lights at the end of the working day

• encouraging staff to use teleconferencing where possible to avoid unnecessary road or air travel

• battery recycling program for staff and workplace use

• placing paper recycling boxes at each desk

• providing additional recycling bins around the office

• using only energy- and water-efficient appliances in the workplace

• installing blinds and tinting windows to reduce the demand on the air-conditioning system.

The NTC will continue to monitor its environmental impact and make changes as required.

2009–2010 2010–2011 STEPS TAKEN TO REDUCE EFFECT

ElECTRICITY

Total electricity used (kWh) 3,288 kWh 3,060 kWh Installation of energy efficient appliances and equipment across the office.

% green energy source 25% 25%

Total GGE emissions (tonnes) 90 tonnes 88 tonnes

TRAVEl

Air travel

Domestic flights (km) 466,000 km 808,088 km External effect: introduction of newer planes across airlines, planes that are more environmentally friendly.

International flights (km) 284,000 km 93,660 km


Road travel

Taxi (km) 9,553 km 14,643 km The intention is to minimise travel where possible by using Skype for meetings and teleconferences.


OTHER

Total copy paper used (reams) 850 reams (estimate) 900 reams (estimate)

Total water consumption (litres per person) 55,637 litres 66,444 litres

Total GGE emissions produced for 2010–11 (tonnes) 486 tonnes 442 tonnes


The annual adjustment of heavy vehicle charges commenced in 2002. Heavy vehicle registration charges are adjusted in line with increases in road expenditure and expected changes in road use. The automatic adjustment occurred in July each year and was once kept between a ceiling (the consumer price index, CPI) and a floor (zero per cent).

The annual adjustment procedure was reviewed by the NTC as part of the 2007 Determination. The review recommended that the annual adjustment should no longer be kept to between 0 and the CPI. This would enable future changes in road expenditure and road use to be more accurately represented in the resulting charge adjustments. In addition, it was recommended that the annual adjustment also apply to the fuel-based charge. These recommendations were unanimously approved by ATC in February 2008.

At its meeting on 30 April 2010, the ATC approved a technical adjustment to the annual adjustment formula for calculating heavy vehicle charges. This was to ensure that the over- or under-recovery of road costs is minimised. This technical adjustment was introduced in setting the 2010–11 charges and applies to both the registration and road-user charge. It better aligns the annual charge with changes in road use, including fleet mix.

Road expenditureThe road expenditure data in Table 1 is also used in calculating the annual adjustment.

Arterial road expenditureFigures shown for arterial roads in Table 1 are based on the most recent data provided by state and territory road authorities and are in accordance with the agreed expenditure reporting categories. Only expenditure in those categories relevant to the annual adjustment procedure is included. Note: the figures in the table Estimated Arterial Road Expenditure include corporate services and heavy vehicle enforcement expenditure consistent with the revised annual adjustment procedure.

Local road expenditureEstimates of local council spending on roads were obtained from unpublished government finance statistics provided by the Australian Bureau of Statistics (ABS). These figures are the most accurate and recent available.

Road construction and maintenance expenditureTo enable the NTC to meet its reporting obligations under Clause 5.1(j) of the Inter-Governmental Agreement for Regulatory and Operational Reform in Road, Rail and Intermodal Transport, the NTC obtains road construction and maintenance expenditure estimates from states and territories. This data is also used in calculating the annual adjustment to heavy vehicle charges. The figures presented in Table 2 are the road construction and maintenance expenditure estimates provided by each state and territory for the 2010–11 financial year. The table is accompanied by a number of qualifying notes to aid in interpreting the figures.

Appendices

Appendix E: Annual adjustment of heavy vehicle charges

Table 1 Arterial and local road expenditure ($ millions)

ESTIMATED ARTERIAl ROAD EXPENDITURE DATA ($ MIllIONS) – NOMINAl

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11

Rural arterial 2,591 3,018 2,941 3,173 4,049 4,752 5,000 4,904

Urban arterial 2,130 2,177 3,164 4,441 5,157 6,338 5,957 6,290

ESTIMATED lOCAl ROAD EXPENDITURE DATA ($ MIllIONS) – NOMINAl

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Rural local 1,695 1,742 1,688 1,687 1,890 2,078 2,267 2,266

Urban local 2,600 2,595 2,681 2,740 3,015 3,523 4,034 3,677


Table 2 2010-11 Road construction and maintenance expenditure ($ millions)

EXPENDITURE CATEgORY NSW VIC QlD SA WA TAS NT ACT TOTAL

A Servicing and operating 457 166 204 52 24 10 27 14 956

B Road pavement and shoulder construction

B1 Routine maintenance 89 78 602 45 76 19 16 2 927

B2 Periodic surface maintenance 143 106 122 10 37 14 14 3 448

C Bridge maintenance/rehabilitation 95 61 66 7 14 17 2 1 264

D Road rehabilitation 389 118 371 17 122 4 24 6 1,050

E Low-cost safety/traffic 236 167 390 22 44 10 6 3 877

F Asset extension/improvements

F1 Pavement improvements 272 209 618 11 115 121 57 92 1,495

F2 Bridge improvements 440 284 150 0 14 8 6 17 921

F3 Land acquisition, earthworks, other extensions/improvement expenditure

1,418 544 1,126 224 240 36 3 - 3,590

G Other miscellaneous activities

G1 Corporate services 125 18 254 13 144 2 4 9 568

G2 Enforcement of HV regulations 51 18 15 2 10 0 2 0 98

G3 Vehicle registration 99 131 56 18 71 - 9 3 387

G4 Driver licensing 87 59 34 7 38 - 3 1 229

G5 Loan servicing 89 - 66 - 2 - - - 156

Totals 3,990 1,959 4,074 427 951 242 172 152 11,967

H Other road-related payments

H1 Financial assistance to councils for work on council-managed arterials

224 - - - 38 - - - 262

H2 Payments to councils for contract work on state-managed roads

172 13 257 0 0 - 1 - 443

H3 Spending on local access roads in unincorporated areas

- - - - 2 - 11 - 14

H4 Direct spending on council-managed local access roads

115 38 - 1 108 1 2 - 266

H5 Any other direct state spending on local access roads

- - 18 - 6 - 60 - 84

Note to table: figures may not add up due to rounding.

QLD:To avoid double-counting of overall roads expenditure incurred by federal, state and local governments, the following grants and subsidy payments to local governments in 2010-11 are excluded from this analysis as this expenditure is captured as part of Australian Bureau of Statistics reporting.a) Black spot contributions for local government-controlled road upgrades ($4.6 million) - administered by the Department of Transport

and Main Roadsb) State-funded Transport Infrastructure Development Scheme (TIDS) subsidies to local governments and ATSI communities for local

road upgrades ($62.9 million) - administered by DTMRc) Commonwealth Financial Assistance Grants (FAGs) to local governments ($119.9 million) - administered by the Department of

Regional Australia, Regional Development and Local Governmentd) Direct Commonwealth funding to local governments under the Roads to Recovery initiative ($71.2 million) - administered by the

Department of Infrastructure and Transport.

WA:• Main Roads does not report its records in a form that enables direct reporting in the categories prescribed by the NTC. Translating

the expenditure into these categories is achieved with computer software that apportions in line with some simple rules. As a consequence, the data provided by category must be considered as estimates

• A significant proportion of Main Roads’ network maintenance and rehabilitation is carried out under the ten year Term Network Contracts (TNCs). NTC categories, B1: Routine maintenance of pavement and shoulders, B2: Periodic surface maintenance of sealed roads and D: Road rehabilitation, have therefore been estimated from total reported figures.


Model Heavy Vehicle Charges Act For the purposes of Schedule 1 of the Model Heavy Vehicle Charges Act 2007 (and all associated derived purposes), as amended, the NTC publishes the following table to enable the calculation of the annual adjustment factor for the 2012–2013 charges to be paid in respect of heavy road transport vehicles:

VEHIClE ClASS ESTIMATED TOTAl FUEl USE BY HEAVY VEHIClES (lITRES)

ESTIMATED VEHIClE REgISTRATION REVENUE (EXClUDINg TRAIlERS)

ESTIMATED TRAIlER REgISTRATION REVENUE

Rigid trucks: 2 axle: no trailer: GVM 4.5 to 7.0 tonne 161,726,471 $19,762,204

Rigid trucks: 2 axle: no trailer: GVM 7.0 to 12.0 tonne 458,784,314 $36,115,200

Rigid trucks: 2 axle: no trailer: GVM over 12.0 tonne 331,051,036 $37,591,608

Rigid trucks: 2 axle: with trailer GCM to 42.5 tonne 124,237,957 $11,622,266 $15,223,874

Rigid trucks: 3 axle: no trailer GVM 4.5-18 tonne 16,388,564 $1,496,312

Rigid trucks: 3 axle: no trailer GVM >18 tonne 546,269,714 $41,904,135

Rigid trucks: 3 axle: with trailer GCM to 42.5 tonne 59,802,820 $4,702,320 $9,359,856

Rigid trucks: 4 axle: no trailer GVM 4.5-25 tonne 3,697,426 $392,028

Rigid trucks: 4 axle: no trailer GVM >25 106,467,543 $6,065,955

Rigid trucks: 4 axle: with trailer GCM to 42.5 tonne 611,000 $82,438 $88,407

Truck trailers GCM >42.5 tonne 364,943,346 $64,901,538 $22,195,173

Articulated trucks: single trailer: 3 axle rig 9,926,271 $1,221,009 $695,343

Articulated trucks: single trailer: 4 axle rig 64,123,307 $3,878,823 $4,417,842

Articulated trucks: single 3 axle trailer: 5 axle rig 23,656,603 $1,091,091 $2,109,344

Articulated trucks: single 2 axle trailer: 5 axle rig 138,762,966 $26,039,886 $7,546,572

Articulated trucks: single trailer: 6 axle rig 1,752,521,179 $166,766,907 $82,034,519

Articulated trucks: B-double: <9 axle rig 146,705,514 $14,161,536 $15,182,064

Articulated trucks: B-double/triple: 9 axle rig & above 1,235,045,679 $91,444,392 $140,346,648

Articulated trucks: road train: 2 trailers 316,411,071 $33,276,504 $23,620,146

Articulated trucks: road train: 3 trailers 196,125,571 $11,475,192 $13,144,593

Articulated trucks: > 6 axle rig (not elsewhere classified) 108,142,393 $9,656,011 $4,318,727

Other trucks 52,089,373 $14,051,884

Buses: 2 axle: GVM 4.5 to 10.0 t 72,881,903 $6,096,948

Buses: 2 axle: GVM over 10.0 t 330,558,329 $8,331,158

Buses: 3 axle 65,111,821 $5,204,970

Buses: articulated 9,295,035 $186,010

Total 6,695,337,207 $617,518,325 $340,283,106

Note to table

The NTC has adopted a modified trending method to produce the above heavy vehicle fuel use and registration revenue estimates, due to the unavailability of Australian Bureau of Statistics Survey of Motor Vehicle Use (SMVU) data for the 2008 and 2009 years. The modified method incorporates both the previous method used as well as the most recently available SMVU data for 2010. This method provides results consistent with the data series.

Appendices


Appendix F: Reports released during 2010–2011

TITlE ISBN PREPARED BY

DATE

Improving the Basic Fatigue Management Option Discussion Paper N/A NTC August 2010

Heavy Vehicle Pricing Options: Development and Assessment Framework 978 1 921604 11 9 CRRP and NTC

August 2010

Electronic Systems for Heavy Vehicle Driver Fatigue and Speed Compliance - Draft Policy Paper 2010

N/A NTC October 2010

Performance-based Specification for Electronic Work Diary and Heavy Vehicle Speed Monitoring

N/A Austroads October 2010

The Role of Government in Freight Rail Investment Discussion Paper 978 1 921604 12 6 NTC October 2010

Understanding Public Perceptions of Road Freight N/A Synovate November 2010

2010 Annual Report 978 1 921604 09 6 NTC November 2010

Transport reform outcomes framework working paper N/A NTC December 2011

National Ports Strategy N/A Infrastructure Australia and NTC

January 2011

Heavy Vehicle National Law Draft Bill N/A NTC February 2011

Heavy Vehicle National Law - Draft Regulatory Impact Statement N/A NTC February 2011

Heavy Vehicle National Law Draft RIS - Appendix A N/A NTC February 2011

Heavy Vehicle National Law - Benefit Cost Analysis - Appendix B N/A Centre for International Economics

February 2011

Heavy Vehicle National Law Draft RIS Cover Note N/A NTC February 2011

Draft Heavy Vehicle (Fatigue Management) National Regulation N/A NTC February 2011

Draft Heavy Vehicle (Mass, Dimension and Loading) National Regulation N/A NTC February 2011

Draft Heavy Vehicle (Registration) National Regulation N/A NTC February 2011

Draft Heavy Vehicle (Vehicle Standards) National Regulation N/A NTC February 2011

2011 Heavy Vehicle Road User Charge Annual Adjustment Consultation Document

N/A NTC February 2011

Modelling the Marginal Cost of Road Wear, Research Paper 2011 978 1 921604 14 0 NTC May 2011

NTC Work Programme 2011/12 to 2013/14 N/A NTC June 2011

Strategic Plan 2011/12 to 2013/14 978 1 921604 15 7 NTC June 2011

Carbon Dioxide Emissions from Australian Light Vehicles 2010 978 1 921604 13 3 NTC June 2011

The National Road Freight Study N/A CRRP and NTC

June 2011

Appendix G: Report on Commonwealth Disability StrategyIn accordance with the Commonwealth Government guidelines outlined in the (Commonwealth) Disability Discrimination Act (1992), the NTC developed a Disability Action Plan during the 2010–11 financial year.

Under the Disability Action Plan the following actions were taken:

• accessibility of regulatory impact statements was enhanced. These are now made available as .txt files on the OBPR website

• venues used for meetings have full disabled access and facilities.

Further work on increasing staff awareness and provision of workplace adjustments will continue in the 2011/12 financial year. The NTC’s Disability Action Plan will be reviewed annually.

The NTC will begin implementing the Commonwealth Disability Strategy in the terms set out in the Guide to the Performance Reporting Framework in the 2011–12 financial year.


Glossary

Asia–Pacific Economic Cooperation (APEC)

Established in 1989 by 12 countries, APEC facilitates economic cooperation and expansion of trade and investment throughout the region.

Australian Transport Council (ATC) A forum for Commonwealth, state, territory and New Zealand ministers to consult and provide advice to governments on national transport and road policy issues.

A-trailer The trailer closest to the prime mover on a B-double combination.

Australian Road Rules (ARR) A national set of rules which apply to vehicle drivers, passengers, cyclists and pedestrians.

B-double A combination consisting of a prime mover towing 2 semi-trailers.

B-triple A combination consisting of a prime mover towing 3 semi-trailers.

Committee for Economic Development of Australia (CEDA)

Provides thought leadership and policy perspectives on the economic and social issues affecting Australia.

Council of Australian Governments (COAG)

The peak intergovernmental forum in Australia. It initiates, develops and monitors the implementation of policy reforms of national significance that require cooperative action by Australian governments.

Carbon Dioxide (CO2) emissions A naturally occurring chemical compound composed of two oxygen atoms bonded to a single carbon atom.

Consumer Price Index (CPI) A measure of change in the prices paid by households for goods and services to consume.

COAG Road Reform Plan (CRRP) In April 2007 the Council of Australian Governments set out a three-phase COAG Road Reform Plan (CRRP) to consider alternative models of heavy vehicle road pricing and funding.

Bureau of Infrastructure, Transport and Regional Economics (BITRE)

Provides economic analysis, research and statistics on infrastructure, transport and regional development issues to inform both Australian Government policy development and wider community understanding.

A reform which improves the environmental outcomes of the transport sector.

Electronic work diary A tool to monitor heavy vehicle work hours, rest hours and speed compliance.

Federal Chamber of Automotive Industries (FCAI)

A body which represents the automotive industry.

FoxTrax Logistics fleet tracking and management system.

greenhouse gas Emissions (ggE) Gases that trap heat in the atmosphere.

global Positioning System (gPS) A space-based global navigation satellite system that provides information on locations.

Health and Safety Representatives (HRS)

Employees who represent the health and safety interests of their peers in the organisation.

Health and Safety Management Arrangements (HSMA)

One of the main ways in which employers can demonstrate their commitment to meeting their duty of care under the Occupational Health and Safety (OHS) Act.

Infrastructure Australia (IA) A statutory body which advises governments, investors and infrastructure owners on a wide range of issues.

Industry Advisory Group (IAG) Part of the COAG Road Reform Plan, it provides the CRRP Project Board with high-level advice and input on behalf of industry.

Intelligent Access Program (IAP) A voluntary program which provides heavy vehicles with improved access to Australia’s road network in return for monitoring their compliance with specific access conditions using vehicle telematics equipment.

Key Performance Indicator (KPI) A measure of performance that reflects the success of an organisation in meeting its objectives.

Marginal cost The increase in total cost as a result of producing one extra unit.

Monash University Accident Research Centre (MUARC)

Australia’s largest injury prevention specialist. Its research, consultancy and training involves safety in transport, the workplace, the community and the home.

National Heavy Vehicle Regulator (NHVR)

A key COAG priority, the regulator will administer a single body of national heavy vehicle law and regulate all vehicles over 4.5 gross tonnes. Fully operational by 2013, the regulator will streamline the requirements for operators, reduce business costs and improve the safety of the heavy vehicle industry.

National Transport Commission (NTC)

An independent statutory body which develops and submits reform recommendations to the Australian Transport Council (ATC) for approval. The NTC also plays a role in coordinating and monitoring the implementation of approved reforms. A more comprehensive description of the NTC is provided in the inside cover of this annual report.

Occupational Health and Safety (OHS)

An employer’s duty of care to provide a safe system of work. Employees equally have a duty of care to follow directions given by the employer.


On-board mass technology On-board mass technology measures the weight of a vehicle with equipment fixed to the vehicle and can help manage the risk of heavy vehicle overloading.

A reform which improves transport productivity.

Planning and Transport Research Centre of Western Australia (PATREC)

A ‘collaborative knowledge network’ of three universities in WA which aims to build professional and academic capability and expand the number and quality of researchers in its specialist fields.

Performance Based standards (PBS) PBS is a key element of COAG’s national reform agenda for transport. The scheme offers the heavy vehicle industry the potential to achieve higher productivity and safety through innovative truck and bus design.

PBS vehicles are designed to perform their tasks as productively, safely and as sustainably as possible. Termed ‘SMART’ vehicles, these trucks and buses are tested against 16 stringent safety standards to ensure that they can stop, turn and travel safely.

Producer Price Index (PPI) A weighted index of prices measured at the wholesale or producer level.

Performance Based Standards (PBS) Review Panel (PRP)

A panel consisting of an independent chairperson, deputy chairperson and at least one representative from each jurisdiction. It is responsible for monitoring and implementing issues surrounding PBS.

Regulatory Impact Statement (RIS) A RIS is required for all regulatory proposals that are likely to have an impact on business or the not-for-profit sector. It aims to improve the government decision-making processes by ensuring that all relevant information is presented to the decision maker upon the creation of a policy.

A reform which improves safety in the transport sector.

Standing Committee on Transport (SCOT)

A formal committee structure that provides advice on a range of policy and technical matters. It supports the Australian Transport Council (ATC).

Standing Council on Transport and Infrastructure (SCOTI)

SCOTI will replace ATC on 1 July 2011. It is a ministerial council which will comprise Commonwealth, state, territory and New Zealand ministers responsible for developing and progressing a land transport and infrastructure reform agenda.

SMART vehicles See the entry for PBS vehicles.

Transport Agency Chief Executives (TACE)

An advisory group which consists of heads of transport departments and road authorities from each Australian state and territory as well as New Zealand.

Transport Certification Australia (TCA)

A public company which comprises the Australian government and road transport authorities. It provides accreditation services and advice in the vehicle, roadside information and communications area.

Telematics The electronic monitoring, management and regulation of vehicles, their devices and their loads.

Transport and Infrastructure Senior Officials’ Committee (TISOC)

Provides support and advice to ministers on strategic policy, reform priorities and implementation at a national level. Its membership comprises the chief executive officers of state and territory transport and/or infrastructure departments, the Australian Local Government Association and the NTC.

Transport Workers Union (TWU) A union body which represents Australian employees in the transport industry.


Index

abbreviations, 80accident reduction, 10

acronyms, 80

Advanced Fatigue Management, accreditation, 13

advisory groups, 12–13

AFM, 13

annual adjustment of heavy vehicle charges, 78–80

APEC, 7

arterial roads, expenditure on, 78

Assessing Fitness to Drive, 13, 27–8

asset additions, 58

assets, 53–4, 59–64, 66–8, 70–3, 75

ATC See Australian Transport Council

A–trailer charges, 20, 22

Audit and Risk Committee, 47–8

audit, external, 48, 51–2

auditor’s report, 51–2

Australasian Transport Research Forum, 7

Australian Capital Territory, 3

Australian Defence Force Exemption Framework, 28

Australian Road Rules, 10, 28–9

Australian Transport Council, 13, 20–1, 25, 28, 38–9, 78

members of, 39

structure of, 38

submissions to, 59, 76

Australian Vehicle Standards Rules, 16, 28–9, 76

Austroads, 6, 20, 25, 79

balance sheet, 54, 59, 62, 70

board, responsibility of, 47

B–triples, 15, 19, 20, 22

business continuity plan, 48

business planning, 48

carbon emissions, 3, 11, 30, 31 See also environmental performance, greenhouse gas emissions

Carbon emissions from new Australian vehicles, 11

Carslake, J, 44

case studies, 14, 16, 17, 18, 24, 26, 32

cash flow, 73

reconciliation of, 70

statement of, 56

CEDA, 7

CEO, 47

profile of, 45

report by, 5

Chairman

profile of, 45

report by, 3

chief executive officer See CEO

climate change, 11, 19, 21, 31, 46 See also greenhouse gas emissions

COAG, 6, 13, 16–18, 24, 28

COAG Road Reform Project, 5, 20, 22, 41

code of conduct, 42

Commission See NTC

commissioners, 47

meetings of, 47

remuneration, 70

statement of, 50

commitments, schedule of, 57

Commonwealth Ombudsman, 48

Commonwealth, 34

compliance and enforcement strategy, 29

compliance index, 83

comprehensive income, statement of, 53, 59, 62

consultative forum, for staff, 42

contingencies, 62

corporate governance, 45–7

Council of Australian Governments See COAG

counting time, 28, 76, 78

credit risk, 73

CRRP See COAG Road Reform Project

deaths from land transport, 10, 28

Decade of Action for Road Safety, 27

depreciation, 53, 63–4, 67, 68, 70

Dimopoulos, N, 5, 7, 27, 40–1, 45, 47, 50

disability action plan, 79

disaster recovery, 48

documents available under FOI, 76

drivers, medical standards for, 10, 27

driving research, 25

electronic work diaries, 7, 25, 29, 79

emissions See carbon emissions, greenhouse gas emissions, environmental performance

employee benefits, 53, 60, 61, 64, 71, 75

employees, number of, 72

end–of–year reporting, 50–75

enterprise agreement, 42

environmental performance, 11, 32, 59, 77

environmental scans, 28, 44

equity, 54–5, 60, 63, 74

changes in, 55

European Research Council, 44

European Union, transport initiatives, 28

European Union’s Visitors Program, 44

EWD See electronic work diaries

expenditure, 53, 64, 75 See also financial statements

on roads, 78

expenses See expenditure

external audit, 48, 51–2

Fatigue Authorities Panel, 13

fatigue laws, 28, 76

fatigue, 7, 10, 13, 16, 23, 25, 28, 29, 79 See also safety

Federal Chamber of Automotive Industries, 31

financial instruments, 60, 72–3

financial statements, 50–75

basis of preparation, 59

notes to, 59–75

FOI See freedom of information

forums, 6, 14, 16–17

FoxTrax, 26

fraud, instances of, 48

fraud control See risk management

freedom of information, 76

gains, 60

Genesee & Wyoming Australia, 24

glossary, 80–81

governance, corporate, 45–7

government involvement, 34–7

greenhouse gas emissions, 11, 77 See also car emissions, climate change, environmental performance


green initiatives See environmental performance

Hanowski, R, 25

Haulmark Trailers, 18

health standards See medical standards

heavy vehicle driver fatigue reform, 10, 13

Heavy Vehicle National Law, proposed, 6, 11, 14, 16, 17, 79

heavy vehicles

annual adjustment of charges, 78

charging of, 6, 20

human resources, 40–4

hybrid cars, 32

IAG See Industry Advisory Group

impairment, 53, 60, 62–4, 67–8, 75

income, 53, 57, 62, 65, 68, 72, 75

statement, 53

indemnity, 48

Industry Advisory Group, 13, 38

information, freedom of, 76

Infrastructure Australia, 7, 17, 79

instruments, financial, 60, 72–3

insurance, 10, 48

interest, 53, 56, 60–2, 65, 72, 74–5

International Transport Forum, 44

in–vehicle telematics, 7, 12, 25

Jones, S, 43

land passenger transport, challenges for, 21

leasehold improvements, 58, 59, 62–3, 67–8, 75

leases, 57, 61

liabilities, 54, 59, 60, 61, 62, 70, 72, 73, 75

Lindsay Transport, 16

Linfox Logistics, 26

liquidity risk, 73

local roads, expenditure on, 78

Johnston, 7, 27, 46, 47

market risk, 74

Martin, G, 3, 7, 25, 45, 47, 50

medical standards

for drivers, 10, 27

for railway workers, 29

meetings

of audit and risk committee, 47

of commissioners, 47

members, of ATC, 39

mission, 13

Model Rail Safety Bill, 24

Model Rail Safety Regulations, 24

Modelling the marginal cost of road wear, 6, 20

Monash University Accident Research Centre, 27, 46

MUARC, 27, 46

Muller, F, 7, 46, 47

national highlights

Australian Capital Territory, 36

Commonwealth, 34

New South Wales, 34

Northern Territory, 34

Queensland, 35

South Australia, 35

Tasmania, 36

Victoria, 37

Western Australia, 37

National Heavy Vehicle Regulator, 6, 9, 10, 13, 14, 16, 17, 22, 28, 41

National Ports Strategy, 7, 17, 22

National Rail Safety Regulator, 6, 10, 13, 24, 29, 41

National Road Freight Study, 6, 20

National Road Safety Strategy, 20, 28, 29

National Standard for Health Assessment of Rail Safety Workers, 28, 29

National Transport Commission See NTC

National Transport Development Policy Committee, India, 7

National Truck Accident Research Centre, 10

National Urban Policy, 31

naturalistic driving research, 25

New South Wales, 34

NHVR See National Heavy Vehicle Regulator

Noonan, B, 46, 47

Northern Territory, 34

notes to financial statements, 59–75

NTC

code of conduct, 42

enterprise agreement, 42

environmental performance, 11, 32, 59, 77

government participation, 34–7

HR strategy, 40–4

key performance indicators, 12

key staff, 41

milestones, 6, 20

mission, 13

objectives of, 15–21, 59

organisational chart, 41

performance, 9–14

productivity outcomes, 9

purpose of, 15–21, 59

reforms, 6–7, 9, 11, 12, 28, 34–7

regulatory efficiency outcomes, 11

reports, 79

review of, 9

safety outcomes, 10

staffing levels, 72

strategies, 13

structure, 41

vision, 13

year in review, 6–7

objectives, of NTC, 15–21, 59

observational driving research, 25

occupational health and safety, 43

Office of Best Practice Regulation, 11, 12

OH & S, 43

Ombudsman, Commonwealth, 48

on–board mass–monitoring technology, 29

organisational structure, 41

outcomes–based performance, 9, 12

parental leave payments scheme, 60

payables, 54, 69, 70, 75

PBS, 9, 10, 11, 13, 18, 19, 22, 76

PBS vehicles, 18, 19, 76

Performance Based Standards Review Panel, 13, 22

Performance Based Standards Scheme See PBS


performance, of NTC, 9–14

pilot, of electronic work diaries, 25, 29

plant and equipment, 54, 56, 62, 63, 64, 67, 68, 75

policy manager, 43

Port Kembla, 17

ports, 7, 17, 22, 79

pricing models, for heavy vehicles, 6, 20

productivity

improving, 6, 13, 16–21, 59

outcomes, 9

professional development, 42

profit and loss See financial statements

project groups, 12–13

provisions, 54 69, 70, 75

PRP See Performance Based Standards Review Panel

Queensland, 35

RABC, 78

rail freight, 9, 11, 21

Rail Freight Productivity Review, 21

rail medical standards, 10, 29

rail safety, 13, 23, 24

recycling activities, 77

reforms

maintenance of, 22, 28, 41

progress of, 24–8

regulatory efficiency, 9, 11, 12, 59

remuneration 63, 70, 71, 72

reports, 79

by CEO, 5

by Chairman, 3

revaluations, 63, 68

revenue, 53, 60, 63, 65, 70, 72 See also income

review of NTC, 9

revised adjusted base cost, 78

risk

credit, 73

liquidity, 73

management, 47, 48

management plan, 48

market, 74

road freight, 6–7, 9, 18,20, 25, 46, 79

roads, expenditure on, 78

Road Reform Plan, See COAG Road Reform Project

road train network, 19

road safety, See safety

role, 13

safety, 6, 7, 9, 10, 11, 12, 13, 16, 18, 19, 24, 25, 27, 28, 29, 43, 59

scans, environmental, 28, 44

Schafer, J–A, 45, 47

schedule of asset additions, 58

schedule of commitments, 57

SCOT, See Standing Committee on Transport

SCOTI See Standing Council on Transport and Infrastructure

Senate Rural Affairs and Transport Legislation Committee, 48

smart technology strategy, 7, 25

Smart transport for a growing nation, 21, 22, 31, 76

SMART vehicles, 18

Solutions Working Group, 20, 22

South Australia, 35

staff consultative forum, 42

staff

development, 42

levels, 72

stakeholders, engagement with, 12

Standing Committee on Transport, 13, 38

Standing Council on Transport and Infrastructure 28

statement

of cash flow, 56

of changes in equity, 55

of commissioners, 50

of comprehensive income, 53

states, contributions from, 34–37

strategic plan, 9, 13, 48, 79

submissions, 76

supply chain reform, 22

TACE, 13

Tasmania, 36

taxation, 63

telematics, in–vehicle, 7, 12, 25

territories, contributions from, 34, 36

time, counting of, 28, 76

Toyota, 32

Transport Agency Chief Executives, 13

Transport Reform Outcomes Framework, 9

Trinh, V, 42

UNCTAD, 7

Understanding public perceptions of road freight, 79

United Nations, 7, 27

urban policy See national urban policy

Victoria, 37

vision, 13

Western Australia, 37

work diaries, electronic See electronic work diaries

year in review, 6–7


Compliance index

The table below shows compliance with the Commonwealth Authorities and Companies (Report of Operations) Orders 2008 issued by the Minister for Finance and Deregulation on 30 June 2008.

REQUIREMENT PAgE

Letter of transmittal Inside cover

Table of contents 1

Index 84–6

Glossary 82–3

Enabling legislation and responsible minister Inside cover, 39, 59

Organisational structure 38, 41, 47

Location of major activities and facilities Inside cover and back cover

Review of operations and future prospects 9–32, 50–75

Statement on governance 42, 47-8

Directors 45-7

Commonwealth Fraud Control Guidelines: 2011 48

Financial statements 49-75

Certification by directors 50

Indemnities and insurance premiums for officers 48

Judicial decisions and reviews by outside bodies 48

Effects of ministerial directions There were no relevant ministerial directions to report

Environment Protection and Biodiversity Conservation Act 1999, section 516A 77

Freedom of Information Act 1982, subsection 8 (1) 76

Occupational Health and Safety (Commonwealth Employment) Act 1991, section 74 43

Commonwealth Electoral Act 1918, section 311A 76

Commonwealth Disability Strategy 81

Annual adjustment of heavy vehicle charges 78-80


Photo courtesy of City of Sydney

Our 2011 report coverFeatured on the cover of this year’s annual report is NTC Manager Legal and Commission Secretariat, Keith Ryan (pictured right, with Lou Theo from Wettenhalls). Keith has been a key member of the NTC team developing the proposed legislation that the new National Heavy Vehicle Regulator will administer. This photo was taken during the Heavy Vehicle National Laws consultation.

Read more about the consultation and regulator project on pages 14 and 16 of this report.

Legend used throughout this reportNTC’s reforms often deliver against more than one of our strategic objectives. To assist readers in understanding how our projects link to our objectives, we have placed icons at the bottom of each article in the ‘Meeting our objectives’ section of this report. The icons are as follows:

a reform which improves transport productivity

a reform which improves safety in the transport sector

a reform which improves the environmental outcomes of the transport sector

7 October 2011

The Hon. Anthony Albanese MPThe Hon. Catherine King MPThe Hon. Gladys Berejiklian MPThe Hon. Duncan Gay MLCThe Hon. Terry Mulder MPThe Hon. Dr Denis Napthine MPThe Hon. Annastacia Palaszczuk MPThe Hon. Craig Wallace MPThe Hon. Troy Buswell MLAThe Hon. Rob Johnson MLAThe Hon. Patrick Conlon MPThe Hon. Tom Kenyon MP The Hon. David O’Byrne MPThe Hon. Gerald McCarthy MLASimon Corbell MLAThe Hon. Steven Joyce MP

Dear Ministers,

In accordance with the National Transport Commission Act 2003, I am pleased

to submit the National Transport Commission’s (NTC) Annual Report for the year

ended 30 June 2011.

This document reports on the NTC’s activities in pursuing national transport

reform during the financial year, in partnership with government, industry and the

wider community.

During the past year, the NTC has successfully advanced key elements of the

Council of Australian Governments’ (COAG) national reform agenda. This includes

working towards national legislation for the heavy vehicle and rail industries,

contributing to the development of Australia’s first ever national ports strategy

and leading the pricing work stream of the COAG Road Reform Plan which is

investigating a more efficient and sustainable road pricing system.

The NTC has also maintained a continued focus on implementing the

recommendations from the 2009 Australian Transport Council review of the NTC.

I would like to thank you for leading the development of national transport reform

and I look forward to continuing to work with you to ensure the best transport

outcomes for Australia.


* Liveability – ‘the degree to which a location supports quality for life, health and wellbeing for the people who live, work or visit there’. A sustainable population strategy for Australia. Commonwealth Government 2011.

Who we areThe National Transport Commission (NTC) is an inter-governmental agency charged with improving the productivity, safety and environmental performance of Australia’s road, rail and intermodal transport system.

State and territory governments contribute 65 per cent of the NTC’s funding, and the Commonwealth Government provides 35 per cent. The NTC has 42 staff and is led by six Commissioners.

The NTC has one office which is located in Melbourne.

What we doAs an independent statutory body, the NTC develops and submits reform recommendations for approval to the Australian Transport Council (ATC), which comprises federal, state and territory transport ministers. The NTC also plays an important role in implementation planning to ensure reform outcomes are realised on the ground, as well as coordinating, monitoring, evaluating and maintaining the implementation of approved reforms.

Our visionAustralia’s prosperity and community liveability* is enhanced by the movement of people and goods.


Our roleTo develop national regulatory and operational reform and implementation strategies for road, rail and intermodal transport.

Our strategic objectivesThe impacts of our reforms are objectively assessed against the following policy objectives:• improve transport productivity• improve environmental outcomes• support a safe transport system• improve regulatory efficiency.



Level 15/628 Bourke StreetMELBOURNE VIC 3000Tel: 03 9236 5000 Fax: 03 9642 [email protected]

ISBN 978-1-921604-20-1

Printed in Australia on an environmentally responsible paper sourced from sustainably managed forests.

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