2002 Annual Report Goldfields Esperance Development Commission Contents Page Statement of Compliance 2

Chairman’s Report 3

Overview 7

Map of the Goldfields-Esperance Region 11

Major Achievements in 2001-2002 12

Planned Initiatives for 2002-2003 14

Report on Significant Activities – 2001-2002 16

Organisational Structure 55

Board of Management 56

Staff 60

Administrative Services 62

Report on Equity, Access and Customer Focus 64

Reports on Other Accountability Issues 67

Goldfields-Esperance – a Productive Region 69

Certification of Performance Indicators 74

Key Performance Indicators 75

Certification of Financial Statements 77

Statement of Financial Performance 78

Statement of Financial Position 79

Statement of Cash Flows 80

Notes to the Financial Statements 81

Auditor General’s Opinion – Performance Indicators 97

Auditor General’s Opinion – Financial Statements 98

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STATEMENT OF COMPLIANCE Hon Nick Griffiths LLB MLC Minister for Racing and Gaming; Government Enterprises; Goldfields-Esperance 10th Floor, 216 St George’s Terrace PERTH 6000 Dear Minister In accordance with Section 66 of the Financial Administration and Audit Act 1985, we submit for your information and presentation to Parliament the report of the Goldfields Esperance Development Commission for the year ended 30 June 2002. The Report has been prepared in accordance with the provisions of the Financial Administration and Audit Act 1985.

Kath Finlayson Chairman

Colin Purcell Chief Executive Officer 28 August 2002

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CHAIRMAN’S REPORT You may say ‘Another Annual Report. Another Chairman’s Report’! If you choose to read no further it will be your loss as the document includes comprehensive material on the region and the Goldfields Esperance Development Commission. In a year that has seen unimaginable terrorism in America, we count ourselves fortunate indeed to be living in a country where the possibility of such insanity seems remote. In a region that welcomes people from different backgrounds to call this corner of Australia home. A highlight for me this year was the leading role GEDC took in marketing and co-ordinating the 2002 Year of the Outback. The first six months were a lonely journey until GEDC finally convinced the new State Government to fund the appointment of a Year of the Outback State Co-ordinator, with Barry O’Sullivan first employed by GEDC and subsequently by the Department of Local Government and Regional Development. As a Year of the Outback Ambassador I’ve had the privilege of seeing Australia’s Outback spirit celebrated in so many ways during the year. Schools in far-flung corners of the State are linking up with ‘city kids’, often through videoconferencing, email, and occasionally the mail, so (hopefully) breaking down that country/city divide that still so plagues this country in many ways. Kalgoorlie-Boulder is the largest city in the Australian Outback; our region is one of the major generators of the nation’s wealth – and thus a very appropriate place to nurture the 2002 Year of the Outback. The Golden Mile Trotting Club staged a successful Year of the Outback rodeo in June this year, and it was fantastic to see so many people enjoying the action. Like the inaugural Rhythms in the Outback Festival also staged this year, the rodeo hopefully will become an annual event. GEDC played a supporting role in the planning of these two inaugural events, similar to the role taken with St Barbara’s Festival a few years ago. These fun events do a great deal to enhance the social development of our communities. Some of GEDC’s activities and successes attract media attention, such as the development of the Australia Unlimited Heritage Trails; other ‘facilitation efforts’ are very much behind the scenes, but just as important and rewarding. During the year ten groups of young people from schools across the region, and the two Curtin University campuses, had the opportunity to participate in Young Achievement Australia’s unique brand of entrepreneurial education. They devised and manufactured novel products, and through this process developed business skills and understanding on an essential basic level. Again GEDC has played an important role, organising sponsorship and funding for this program. The Regional Economic Modelling project that the Commission embarked on during the year will offer untold benefits. This priority project will put essential ‘economic science’ into regional planning. The model that’s being developed will enable us to estimate the employment outcome of major developments and to gauge whether existing infrastructure will be adequate. During the year I represented GEDC on the Steering Committee of the Goldfields-Esperance Water Supply Strategy; the members included the CEOs of various State

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Government agencies. The committee was interactive with five working groups that assessed key areas of the draft strategy. For many years I have been a strong advocate for a comprehensive water strategy for the region. I am also convinced that this must address the issue of a comprehensive, sustainable, cost-effective and viable State Water Strategy. The water situation in the Perth metropolitan area has highlighted the significance of strategic directions. The State Government will be hosting a series of public forums to encourage debate following the release of a draft document, ‘State Water Conservation Strategy’. At the time of writing, State Cabinet had not released the draft Goldfields-Esperance Water Strategy for public comment, or announced water forum dates for our region. The delay in the release of the document is creating uncertainty, and has the potential to undermine future economic development opportunities. The contents of the report, including options and costing data, are integral to the development of the Goldfields-Esperance region. The report must not become redundant before it sees the light of day. The saga continues with the lack of progress on the Outback Highway. Long time champion of the Outback Highway Patrick Hill retired from the GEDC Board in October 2001, but his passion for the development of this vital piece of Outback infrastructure lives on. How much lobbying has to be done, and how many ‘economic drivers’ have to be reiterated before Canberra realises the integral importance of the Outback Highway as part of our future heritage, wealth development and defence capability? Patrick and his Outback Highway Development Council colleagues are unlikely to take ‘no’ for an answer, and they’ll be badgering and lobbying the Federal Government until they get a positive response. It may take years, but I know they won’t give up. During the year we also farewelled GEDC’s former Deputy Chairman Dick Thorp and another ‘Esperance legend’, Ian Mickel. Ian retired due the need for him to devote more time to the restructuring of the WA Municipal Association that saw the inception of the WA Local Government Association. Both Ian and Dick made huge contributions to ‘the GEDC vision’ over many years and they deserve our thanks, and those of the region, for their tenacity and drive. Dick Scallan, whose links to the mining industry were invaluable to GEDC, also retired as a Board member during the year, but now seems busier that ever with a wide range of community organisations. His enthusiasm was infectious, so often urging us, in his words, ‘to turn a lemon into lemonade’, something he achieved many times. God bless, Dick. I was disappointed that criticism of GEDC’s performance and structure outlined by the Shire of Esperance earlier in 2002 was not presented to me or Colin Purcell as CEO. I received a copy of the discussion paper in my role as President of the Shire of Menzies – not as Chairman of GEDC. The paper was written in good faith but contained ill-informed material. We have since received enormous support from other Local Government Authorities and I now look forward to the future, and do not want to dwell on the past.

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Richard Grant and the staff in GEDC’s Esperance office are outstanding in their work ethics and have achieved in many areas of social and economic development. I congratulate them on their professionalism and achievements. The Commission’s highest profile project during the year was the development of a series of Heritage Trails. The first to be launched will be the Golden Quest Discovery Trail, starting in Coolgardie and wending its way through the Northern Goldfields before finishing in Kalgoorlie. These trails, which are being developed with the strong support of local government authorities, have the potential to develop the region’s tourism and to offer enhanced small business opportunities. The project has brought together a wide range of stakeholders, and again demonstrated GEDC’s strategic vision as an organisation to create true cross-regional focus. The Heritage Trails project has been characterised by good planning, and significant funding has been secured. I look forward to March 28 2003 when the Golden Quest Discovery Trail will be officially launched. Infrastructure development will lead to opportunities. New businesses help to boost population, with families moving to the region. Families are entitled to equitable health care, and during the year GEDC liaised with health professionals and other stakeholders to convene the ‘Goldfields Medical Professionals Shortage Group’, with excellent results. It was good to hear the recent announcement of better public dental health services in the South East. Congratulations to Ross Ainsworth MLA who passionately pursued this aim. I’m personally concerned that the financial responsibility for attracting GPs to smaller centres in the region seems to be increasingly shouldered by Local Government, which can ill-afford this additional financial burden. Strategic directions are needed as to how best to provide medical services to smaller communities. As a nurse and a pastoralist these issues are a passion of mine. There cannot be inequity in the delivery of essential services to those who choose to live in the ‘bush’. This year saw the appointment of new board members including Shire Presidents Lynn Webb (Dundas) and Sandra Trenowden (Coolgardie), and teacher Ken O’Reilly. Kay Curson, who has made a strong contribution as Chair of the Australia Unlimited Taskforce has also recently been appointed a Board Member. Welcome to them, and to all other Board members I thank you sincerely for the contribution that you make to economic and social development in the Goldfields-Esperance region. CEO Colin Purcell continues to inspire and lead the GEDC team by example, active participation and mentoring. This talented group of people (in Kalgoorlie-Boulder, Leonora and Esperance) continues to make an outstanding contribution to the Goldfields-Esperance region. This is evident by their loyalty and commitment, especially to myself as Chairman. As an organisation GEDC is a powerful endorsement of the Regional Development Commission structure that serves government and West Australians so effectively. The Hon Nick Griffiths MLC, Minister for Goldfields-Esperance, has developed an extraordinary knowledge of this region. This gives us a powerful advocate when decisions that affect the region are being made within Government. I would personally like to thank the Minister for his advice, his accessibility for discussions, and for the professional support of his staff.

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While the most recent Gross Regional Product figures (2000-01: $5.53 billion) still show Goldfields-Esperance as the State’s most productive region by almost a billion dollars, we need to do more to diversify and broaden the region’s economic base. For instance, we need to develop opportunities flowing from the region’s improving telecommunications links. Many functions of a whole range of State and Federal Government agencies could be devolved to centres in Regional Australia. Education, both secondary and tertiary, is developing as a major industry in the region and that growth will blossom in the years to come. In all its projects, GEDC is fortunate to have the partnership support of a range of agencies including local government authorities, State and Federal Government departments, Chambers of Commerce and many community organisations. Lastly and by no means least I want to thank my family and particularly my husband John; not only for their patience and support, but also for their acceptance of my long hours of involvement in regional development issues. GEDC has again had a solid, productive and satisfying year. I urge you to look at the Project Reports that are to be found later in this Annual Report, as you will then read the real ‘GEDC story’.

Kath Finlayson Chairman

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OVERVIEW The Goldfields Esperance Development Commission The Goldfields Esperance Development Commission (GEDC) is an agency of the Government of Western Australia, established in 1993 to encourage and promote balanced social and economic development in the Goldfields-Esperance region of Western Australia. GEDC is one of nine Regional Development Commissions in Western Australia. GEDC is responsible to the Minister for Racing and Gaming; Government Enterprises; Goldfields-Esperance, Hon Nick Griffiths LLB MLC. Mr Griffiths was appointed Minister for Goldfields-Esperance on July 1 2001, succeeding the Hon Clive Brown who had held the portfolio from the election of the Gallop Government in February 2001 until June 30 2001. A Board of Management comprising ten members, including Local Government, Community and Ministerial appointees, sets GEDC’s overall strategic direction and goals. The organisation receives an annual budget from the State Government to carry out its activities. GEDC is headquartered in Kalgoorlie-Boulder, with branch offices in Esperance and Leonora. The Goldfields-Esperance region Geography The Goldfields-Esperance region is located in the South Eastern corner of Western Australia and incorporates nine local government authority areas – the City of Kalgoorlie-Boulder and the Shires of Coolgardie, Dundas, Esperance, Laverton, Leonora, Menzies, Ngaanyatjarraku and Ravensthorpe. It is bounded geographically by the Sandy and Gibson deserts to the North; the Wheatbelt region to the West; the Great Australian Bight to the South; and the South Australian and Northern Territory borders to the East. A land area of 771,276 km2 makes the region over three times the size of the State of Victoria, and just under a third of Western Australia’s total land mass. It is the largest region in Western Australia. Population At June 2001 the Goldfields-Esperance region had an Estimated Resident Population of 55,255 (1996: 56,411; 1991: 52,622). Between 1991 and 1996 the Estimated Resident Population increased by 1.4% per annum, but decreased by 0.4% per annum between 1996 and 2001. Over half of the region’s Estimated Resident Population lives in the 103km2 that makes up the urban area of the City of Kalgoorlie-Boulder (2001: 29,471) and just under a quarter lives in the Shire of Esperance (2001: 13,319). Six of the nine local government areas in the region have resident populations of less than 2000 people, with the Shire of Menzies home to just 353 people at June 2001.

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Estimated Resident Population figures do not provide a complete picture of overall population, however, as many of the ‘mining towns’ in the Goldfields sub-region have a significant ‘Fly-in/Fly-out’ (FIFO) population. In the Shire of Leonora, for instance, 2950 people were counted on census night. The Estimated Resident Population of the Shire at 30 June 2001 was 1986 people, 964 people less than the census count. The indication, therefore, is that on census night there were almost 1000 people in the Shire of Leonora who listed another location as their principal place of residence. The vast majority of these people would have been mining industry personnel. Just over 9% of the region’s population is of Indigenous descent, compared with just over 3% for Western Australia as a whole. Ngaanyatjarraku (84%) and Menzies (35%) are the local government areas with the highest proportion of Indigenous people. History The European history of the region began in 1792 when two French frigates mapping the southern coastline of Australia took shelter in Esperance Bay. The first settlers, the Dempster brothers, arrived in the Esperance area in 1863. Following the discovery of gold at Coolgardie in 1892, Esperance became the region’s principal port. However, with the opening of the Perth-Coolgardie railway in 1896, Esperance became a fishing and holiday town, servicing a small agricultural hinterland. Coolgardie, Boulder and Kalgoorlie developed rapidly after gold was discovered. Coolgardie became the largest town during the 1890s boom, with the population reaching 15,000 by 1898. The rush to Kalgoorlie began in 1893 with the discovery of gold by Hannan, Flanagan and O’Shea. Kalgoorlie in the 1890s was a town of canvas tents, hessian huts and galvanized iron homes, with a population of about 11,000. Water was scarce, being distilled from bores and dams, and transported by camel to wherever it was needed. The Goldfields and Agricultural Water Supply, CY O’Connor’s famous pipeline, opened in 1903 and remains the conduit for water supply to the Goldfields to this day. Kambalda was originally a gold town and boomed between 1897 and 1906. When the gold ran out, the town lay abandoned until the accidental discovery of nickel in the 1950s. In 1966 Western Mining Corporation began development of a nickel mine and Kambalda was reborn. Menzies, Leonora and Laverton all developed based on gold mining activities, with the new town of Leinster established in the 1970s to service the nickel mine. Gold was first discovered in the Norseman area in 1892. Central Norseman Gold Corporation (now owned by Croesus Mining) is the longest running gold mining and processing operation in Australia having been established in 1935. The Goldfields sub-region is one of the world’s most productive mining provinces, based on the extraction and processing of gold and nickel. The South East sub-region is on the threshold of a new era with traditional agriculture industries to be supplemented with new aquaculture ventures and nickel mining operations.

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Natural environment There is a stark, sunset-red, beauty about the Goldfields region. The region’s early mining history appears everywhere in the shape of flat-topped mullock dumps, headframes over the entrances to underground shafts and Coolgardie and Kalgoorlie’s grand public buildings. In contrast, the south coast is characterised by long, low curving white beaches, with rocky headlands and the offshore islands of the Recherche Archipelago. The coast is backed by a rich agricultural hinterland. To the east, the Nullarbor landscape is flat, and the climate arid. There are striking sheer cliffs to the east of Esperance, with extensive sand dunes towards the South Australian border. Economy The economy of the Goldfields-Esperance region (and especially the Goldfields sub-region) is based on the extraction and processing of mineral resources, particularly gold and nickel. In 2001, the value of mining production in the region was in excess of $3.65 billion. The region is responsible for over 66% of the State’s gold production, and also 66% of WA’s nickel industry (including nickel concentrates and metal, as well as cobalt, palladium and platinum by-products) Kalgoorlie-Boulder is the regional centre, a service centre for other towns in the Goldfields and Northern Goldfields, and the regional transport hub. The city is a key centre for the transfer of mineral products (especially nickel and lime) from mines in the region, and the importation of processing reagents and other supplies for the mining industry, including fuel. Kalgoorlie-Boulder has a wide array of industries such as mining equipment sales and servicing, transport, mining support and explosives manufacturing, together with retail businesses, tourism operations, educational establishments (including Curtin University), health insurance and government agencies. Gas from the Pilbara region is reticulated to homes and businesses in Kalgoorlie-Boulder area and mining operations in the Northern Goldfields, and thus additional opportunities in downstream processing, chemical and general manufacturing now exist. An industrial estate at Mungari, in the Shire of Coolgardie, is now ready to accept tenants. Apart from its gold mines such as Kalgoorlie Consolidated Gold Mines’ Superpit operation, by far Australia’s largest gold operation (631,073 ounces produced in the year to March 2002) and St Ives (472,279 ounces), the region also hosts some of Australia’s largest nickel mines and processing operations. These include a number of mines around Kambalda; Cawse, Bulong and Silver Swan in the Kalgoorlie-Boulder region; and Anaconda Ltd’s giant Murrin Murrin nickel mine located between Laverton and Leonora. The region’s manufacturing sector is the second largest in regional Western Australia, with a turnover of $699 million in 1999-00, employing 1326 people. Most manufacturing is located in the urban centres of Kalgoorlie-Boulder and Esperance. Manufacturing activity in Kalgoorlie-Boulder principally supports the local mining, exploration and pastoral

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industries. For example, local companies are engaged in the production of explosives, drilling equipment and machinery. In Esperance, examples of manufacturing include metal fabrication and light engineering, seafood processing and abattoir activities. The value of agricultural production in the Goldfields-Esperance region in 2000 was estimated at $349.6 million, with the fishing catch valued at $18.8 million. Farm forestry is a developing industry in the South East and a niche timber industry operates in the Goldfields with eucalypt species renowned for their density and attractive grain. A significant aquaculture industry is being developed in the South East (both on- and off-shore) with a major research project into sea cages to commence in 2002-03. Abalone aquaculture is also being established in the Esperance area. Tourism is set to provide a stronger contribution to the regional economy in the years to come. The South East is renowned as a family holiday destination, with its glorious beaches, aquatic recreation opportunities and rugged national parks. In the Goldfields the tourism industry is developing strongly, with a particular focus on conference visitation. The annual Goldfields Mining Expo is one of the biggest resources industry trade events in Australia, and the Diggers and Dealers conference attracts up to 1000 delegates each year. Kalgoorlie-Boulder has a strong horse racing industry and the Kalgoorlie-Boulder Race Round is a major event on the Australian racing calendar, attracting visitors from across the country. The Deputy Prime Minister opened the Australian Prospectors and Miners Hall of Fame in Kalgoorlie-Boulder in October 2001, and GEDC is progressing the development of a number of heritage trails, the first of which (Golden Quest Discovery Trail) is set to open in March 2003. Norseman is the Western gateway for the Eyre Highway, with self-drive the principal type of tourist visitation throughout the region. The Outback Highway is being developed from Laverton in the North Eastern Goldfields, through Uluru and Alice Springs, on to Winton in Queensland. In time - and with a much hoped for injection of Federal funding - this road will enable many more tourists to visit the region, bringing new economic opportunities to communities in the North Eastern Goldfields, and particularly the Ngaanyatjarra Lands, such as Warburton. The Goldfields-Esperance region is vital to Western Australia’s overall economic health, and is well positioned for further growth.

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OVERVIEW MAJOR ACHIEVEMENTS IN 2001 - 2002 Output 1 – Policies, Strategies, and Plans • Ensured that activities were conducted according to an ethos of ‘responsive

government’. • Provided a grants information service to local government authorities, government

agencies and community groups. • Managed the development of planning studies for the Golden Quest Discovery Trail,

the Dundas Woodland Discovery Trail and the Esperance/South Coast Heritage Trail. • Initiated a Regional Economic Modelling project. • Partnered with the Shire of Menzies in the development of Niagara Dam in Kookynie. • Managed the Goldfields-Esperance Regional Development Scheme and the

Kalgoorlie-Boulder Development Fund. • Updated and circulated the Community Resource Manual. Output 2 – Industry and Enterprise Development • Supported the Shire of Ravensthorpe and Ravensthorpe Nickel Operations to prepare

the town for nickel mining. • Continued the operation of the Industry Development Centre, including the production

and distribution of the local Project Suppliers Directory and CD-Rom. • Co-ordinated the successful ‘Indigenous People in Mining’ project. • Facilitated Indigenous business enterprise development. • Encouraged and supported the ‘Waste to Energy’ project to be developed at the

Mungari Industrial Estate. • Initiated the development of the Youth Achievement Australia ‘entrepreneurial

education’ program through ten schools/tertiary institutions in the region. • Supported the Goldfields Tourism Association to develop a new structure and

operational procedures. • Processed eleven Regional Sponsored Migration Fund applications. • Assisted in the facilitation of the State Coastal Conference in Esperance. • Supported diversification opportunities for primary producers by assisting seed potato

growers and value-adding groups. • Continued to support the development of the conference industry in the Goldfields.

Output 3 – Coordination of Infrastructure Identification • Continued to assist Government to identify feasible options for an alternative

sustainable supply of water to the region. • Facilitated energy issues in Esperance, in particular the development of a new power

station and the Kambalda to Esperance gas pipeline. • Participated in the investigation of rail re-routing in Kalgoorlie-Boulder. • Lobbied for the extension of CMDA coverage throughout the region. • Managed the Goldfields Woman’s Refuge redevelopment project. • Monitored transport infrastructure issues. • Encouraged the development of tourism infrastructure including the Outback Highway,

the Golden Pipeline and the Gwalia Precinct. • Supported the development of the Esperance Marine Institute and Kepa Kurl. • Investigated the provision of services to Eucla.

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Output 4 – Regional Promotion • Initiated and managed the Regional Housing Design Competition, resulting in twenty-

five entrants and capturing interest Australia-wide. • Supported Year of the Outback activities in the Goldfields-Esperance region, and

initiated the appointment of the Year of the Outback State Co-ordinator. • Coordinated a community ‘Open Day’ at the Mining Hall of Fame • Continued to raise the profile of the region through the Australia Unlimited Taskforce. • Facilitated a seminar in Perth aimed at attracting staff to the region. • Provided a statistical information service. • Continued to facilitate initiatives to attract and retain professional staff to the region

(particularly medical staff) including the co-ordination of a seminar in Perth. • Promoted the region’s activities by producing quarterly newsletters and updating

GEDC’s website.

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OVERVIEW PLANNED INITIATIVES FOR 2002-2003 The Goldfields-Esperance Development Commission has been allocated State Government funding of $1.527 million in 2002/2003 (includes $250,000 Kalgoorlie-Boulder Development Fund allocation). This funding will enable GEDC to implement the following programs and initiatives to achieve the following overall Outcome: ‘An environment which is conducive to the balanced economic and social development of the Goldfields-Esperance region’ Output 1 - Policies, Strategies and Plans • Provide strategic advice to government and monitor government policy and

commitments to the region. • Research and disseminate information on funding and grants availability. • Progress the development of Regional Economic Modelling in the Goldfields-

Esperance region. • Facilitate the delivery of grants from the Goldfields-Esperance Regional Development

Scheme and the Kalgoorlie-Boulder Development Fund. • Continue to partner the Shire of Menzies to progress the Niagara Dam development as

part of the Golden Quest Discovery Trail. Output 2 - Industry and Enterprise Development • Endeavour to attract new businesses to the Mungari Industry Estate. • Support investigations into the establishment of an Industrial Park in Esperance. • Continue to enhance partnerships with Local Government Authorities in the region. • Research and publish a Goldfields-Esperance Investment Opportunities Report. • Continue to facilitate the Industry Development Centre, including the provision of

information to businesses interested in relocating to the Goldfields-Esperance region. • Facilitate diversification and value-adding opportunities, such as aquaculture industries. • Monitor the outcomes of the Young Achievement Australia program. • Continue to enhance opportunities for Indigenous business, arts and heritage

development, thus expanding Indigenous employment opportunities. Output 3 - Coordination of Infrastructure Identification • Monitor and act on the outcome of the public consultation phrase for the proposed rail

line re-routing around Kalgoorlie-Boulder. • Facilitate the Goldfields-Esperance Infrastructure Projects Workshop. • Continue to promote the upgrading of transport infrastructure in the region. • Act upon the outcome and recommendations from the Government’s decision in

relation to the Goldfields-Esperance Regional Water Supply Strategy. • Continue to support the Shire of Ravensthorpe and other agencies seeking to improve

electricity supply to Hopetoun and Ravensthorpe. • Facilitate equitable access to telecommunications and other infrastructure. • Continue to encourage the development of tourism infrastructure.

14• Continue to pursue the provision of mains power to Widgiemooltha.

Output 4 - Regional Promotion

• Coordinate the development of the 1000km Golden Quest Discovery Trail, due to be

commissioned in March 2003. • Investigate the possibility of building the winning Kalgoorlie-Boulder housing design as

a ‘charity house’ fundraising opportunity. • Organise and develop a travelling roadshow in Perth, promoting the region’s services,

facilities, attractions and products. • Continue to promote the region and lift its profile through activities undertaken by the

Australia Unlimited Taskforce. • Monitor staff shortages in the region and undertake projects to alleviate the situation,

such as a promotional seminar in Perth. • Encourage opportunities for training and skills development such as improved

information technology services and facilities. • Provide comprehensive and accurate information on the region through publications

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REPORT ON SIGNIFICANT ACTIVITIES – 2001-2002 Output 1 – Policies, Strategies and Plans Output description: To provide advice on opportunities, policies and strategies for the economic and social development of the region and facilitate the planning and implementation of regional and local development initiatives. Goldfields-Esperance Regional Planning Strategy The first meeting of the Goldfields-Esperance Regional Planning Strategy Working Group was held in Kalgoorlie-Boulder in May 2002. GEDC is a member of the Working Group, which was established to review and update the Goldfields-Esperance Regional Planning Strategy, released in July 2000. When completed, the updated strategy will be considered by the Goldfields-Esperance Regional Planning and Infrastructure Coordinating Committee, which has responsibility for prioritising regional planning and infrastructure issues. The Committee also monitors the implementation of the Goldfields-Esperance Regional Transport Strategy. This model for implementing Regional Planning and Transport Strategies is being trialed in the Goldfields-Esperance region by the Department of Planning and Infrastructure, in conjunction with GEDC. GEDC also commented on the 34 strategies contained in the State Planning Strategy that related to the Goldfields-Esperance region, as part of the mandatory annual audit conducted by the Department of Planning and Infrastructure, the results of which are tabled in Parliament. Responsive Government One of GEDC’s roles is to develop itineraries and facilitate visits to the region by dignitaries and industry representatives. In 2001/2002 itineraries were arranged for a number of important visitors including the Governor-General, the Governor of Western Australia, the Deputy British Consul General, a Chinese mining delegation, a Malaysian tourism delegation, a journalist and photographer from Australian Geographic magazine, James Fitzpatrick (the Young Australian of the Year), representatives of the Aviation Ministerial Council, Virgin Blue Airlines and representatives of Green Dragon Aquaculture. GEDC coordinated many aspects of the State Cabinet meeting held in Kalgoorlie-Boulder in July 2001. GEDC reports to the Minister for Goldfields-Esperance, and thus provides advice and assistance to the Minister and his staff. This includes drafting correspondence, organising visits and meetings, and briefing the Minister on regional issues.

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Website GEDC’s website is at www.gedc.wa.gov.au. The website was regularly updated during the year. The website provides information on the organisation and its staff, regional statistical information, relevant regional links and updates on regional projects in a ‘What’s New’ section. A recent initiative was to provide online job description and other information for vacant positions. Regional Development Council The Regional Development Council (RDC) is an advisory body to the State Government on regional development issues. RDC membership includes the Chairs of the nine Regional Development Commissions, a representative of the Department of Local Government and Regional Development and two representatives of the Western Australian Local Government Association (WALGA). During 2001-02 the Council provided advice to the Cabinet Standing Committee on Regional Policy on a range of issues. During the year issues such as State Water, Power and Telecommunication Strategies were discussed. Matters including the development of a series of regional indicators and the impact of changes in government policies (such as health, planning approvals and infill sewerage) were also debated. GEDC is represented on the Regional Development Council by its current Chairman, Mrs Kath Finlayson Cit WA JP, and on most occasions the GEDC CEO attends the meetings as an observer. Meetings are held six times a year, with one meeting being held in a regional location. Regional Development Policy During the year GEDC was actively involved in the working party reviewing the Regional Development Policy statement. It is likely that a draft of the revised policy will be released for public comment later in 2002. The original policy was the subject of considerable community consultation and input, and thus the revised policy will be more of an overarching statement of policy direction that builds on, and is complementary to, the existing policy. A significant amount of work was undertaken during the year to assist in the development of a set of ‘Regional Indicators’ that will be used to measure ‘regional progress’ including levels of service delivery, economic performance and quality of life. When this project is completed during 2002/03 it will be possible to make region-to-region comparisons on a wide variety of issues, as well as enabling historic assessment of the ‘progress and performance’ of the Goldfields-Esperance region. Further work is being undertaken within government to define the relationship between these regional indicators and ‘State indicators’, including frequency and manner of reporting, responsibility for data collection and report compilation.

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Niagara Dam More than a century old, heritage listed Niagara Dam (in the Shire of Menzies), together with the nearby townsite and graveyard of the same name, is an important tourism icon in the Northern Goldfields. However the overall site needs development to enhance and exploit its tourism potential, and to address visitor safety issues. The Department of Conservation and Land Management, with assistance from the Department of Land Administration, has vested in the Shire of Menzies the reserve in which Niagara Dam is located. The Shire of Menzies has a ‘Masterplan’ for the development of Niagara Dam, which addresses public liability issues, as well as maximising the public’s enjoyment of the location. Niagara Dam is one of the sites listed for interpretation on the Golden Quest Discovery Trail. During the year GEDC worked closely with other agencies to progress the implementation of the Niagara Dam Masterplan. This included the preparation of a grant application to the Commonwealth Government’s Regional Solutions Program on behalf of the Shire of Menzies; organising and assisting with an archaeological assessment of the site; and ethnographical consultation and liaison between the Shire of Menzies and consultants developing the Golden Quest Discovery Trail. Gwalia Precinct The Gwalia Precinct project includes the development of Hoover House as a guesthouse, function centre and tearooms; and facilitating the long-term financial sustainability of the Leonora Gwalia Historical Museum Ltd. The Museum is involved in the maintenance, development and promotion of the Gwalia Historical Precinct as a tourist attraction Through its Northern Goldfields office, GEDC works closely with Leonora Gwalia Historical Museum Ltd (particularly Manager Tim Hewson) on all of the above elements. During the year the museum was successful in securing $35,000 from the Goldfields Esperance Regional Development Scheme to complete the 3rd stage of renovations to Hoover House. GEDC also assisted the Museum to prepare grant applications to the State Government’s Regional Infrastructure Funding Program (for completion of restorations), Australia’s Open Garden Scheme (for restoration of the gardens surrounding Hoover House) and the West Australian Rural and Regional Marketing Assistance Scheme. Community Resource Manual In early 2002 the Community Resource Manual first published by GEDC in 2000 was updated. The manual includes contact details for all welfare agencies and community services in the Goldfields-Esperance region. The manual, which is presented in a user-friendly desktop format, has proven helpful to many agencies when referring clients The updates and additional copies of the Community Resource Manual were distributed throughout the Region during the year. 18

Regional Economic Modelling Regional economic modelling (REM) is used to assess the potential impact of changes (positive and negative) in economic drivers such as infrastructure development and business investment. Such modelling provides important ‘predictive data’, with the result that government agencies can be better informed to facilitate regional economic development. Modelling can assist to determine the capacity of existing infrastructure to service current needs, and to identify new infrastructure requirements. REM assists with economic planning by helping to identify new opportunities and potential projects. Outcomes such as employment growth can be predicted. In November 2001 GEDC hosted a well-attended seminar to introduce the concept of regional economic modelling. The seminar was presented by Ian Pinge from the Centre for Sustainable Regional Communities at La Trobe University, Bendigo. Mr Pinge explained the basics of input/output methodology and also demonstrated the REMPLAN software that he has developed to assist regional planners with strategic decision making. GEDC successfully sought $24,000 from the Goldfields Esperance Regional Development Scheme to conduct a pilot economic modelling study. The Centre for Sustainable Regional Communities was awarded the tender to conduct this study, and work commenced in June 2002. Output 1 Policies, Strategies and Plans Output Measures 2001/2002

Target2001/2002

ActualReasons for significant variation between Target and Actual

Quantity Chargeable Hours 5482 5833 Niagara Dam – Construction of Facilities

1 1

Kalgoorlie-Boulder Development Fund

1 1

Quality Customer satisfaction by client survey

85% 87%

Timeliness Project milestones by due date 85% 84% Cost Cost per hour $106 $99 Niagara Dam – Construction of Facilities

$62,500 $62,500

Kalgoorlie-Boulder Development Fund

$73,000 $0 Difficult to estimate from which output the grants would be accessed.

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Output 2 – Industry and Enterprise Development Output description: To assist industry, business and commerce to contribute significantly to the region’s economy, employment and population base. South Coast Regional Initiative Planning Team (SCRIPT) SCRIPT represents all catchment, landcare and other Natural Resource Management (NRM) groups along the South Coast. GEDC is a member of SCRIPT’s Management Committee. During the year SCRIPT prioritised a number of South Coast NRM projects and prepared a combined regional ‘bid’ for National Heritage Trust funding. GEDC has also assisted SCRIPT to develop enhanced policies and procedures given an increase in the organisation’s administrative and financial responsibilities. Tertiary Education and Training Curtin University Vocational Education and Training GEDC worked with Curtin University to prepare a response to the ‘Review of the WA Training Sector’ report, published in 2001. The report recommended that the Vocational Education and Training (VET) component of Curtin University (in Kalgoorlie and Esperance) be ‘divorced’ from the higher education division of the institution and be reconstituted as a TAFE College. Curtin University strongly opposed this proposal, believing there to be a great strength in the ‘multisectoral’ nature of the Kalgoorlie campus (ie higher education, TAFE level and secondary school courses and students). Curtin University proposed that rather than this model being dismantled (as the report proposed), this structure could well be adopted elsewhere in Western Australia to advantage. Given the strong local opposition to the report’s proposal that the VET component of Curtin University in Kalgoorlie and Esperance be reconstituted as a TAFE College, or part of another TAFE College, the proposal was subsequently shelved. Esperance Career and Course Opportunities (ECCO) This project evolved from a pilot project that explored ways to provide support to students undertaking tertiary education in Esperance. This pilot, the Esperance Mentoring Project, proved so successful that the local committee has endeavoured to expand that project into the ECCO project. GEDC is represented on a committee that has submitted an application for funds through the Regional Solutions Program to expand this important project.

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Regional Sponsored Migration Scheme GEDC is a Regional Certifying Body for the Regional Sponsored Migration Scheme, a Commonwealth Government migration program. During 2001-02 GEDC approved eleven applications under the scheme, including geologists, chefs, electricians, a pharmacist and a physician. These new migrants are now living and working throughout the Goldfields-Esperance region. GEDC receives monthly updates to the Regional Skills Matching Database, which lists those people still living overseas seeking to migrate to a regional area in Australia. This database is a reference point for employers seeking suitably skilled people to fill vacancies that cannot be met from the local labour market. Kalgoorlie-Boulder Chamber of Commerce and Industry GEDC is a member of the Kalgoorlie-Boulder Chamber of Commerce and Industry and is represented on the Chamber’s City and Regional Development Sub-Committee. Issues considered during the year included water supply, Fly-In-Fly-Out, the Goldfields Transport Industry Report, town planning issues, rail infrastructure, zone rebates, and ‘flow-through share schemes’, to reinvigorate the exploration sector. Goldfields Esperance Area Consultative Committee (GEACC) GEDC’s Chief Executive Officer is a Board member of the Goldfields Esperance Area Consultative Committee. During the year GEDC contributed to a briefing paper on the Goldfields-Esperance Region prepared by GEACC for the Deputy Prime Minister & Minister for Transport and Regional Services, Hon John Anderson MP. The focus of the briefing paper was to highlight social end economic ‘disadvantages’ experienced in the Goldfields-Esperance region. Unfortunately the paper did not result in this region being selected as one of the pilot regions for funding from the Federal Government’s Sustainable Regions Program, a major initiative in the ‘Stronger Regions, A Stronger Australia’ strategy announced by Minister Anderson in August 2001. GEACC continued its good work hosting the Indigenous Employment Forum (IEF), and this resulted in Coles Supermarket in Kalgoorlie-Boulder offering traineeships to young aboriginal workers. This initiative is understood to be the first time this major employer has implemented such a strategy. GEACC is advocating similar traineeship arrangements to other companies in Kalgoorlie Boulder. During the year funding for the Business Incubator in Kalgoorlie-Boulder was finalised. Building of this facility will commence in early 2002/03, some five years after the project was first mooted.

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Liaison with Local Government Authorities Northern Goldfields GEDC’s Northern Goldfields office, located in Leonora, has a particularly strong partnership with the four local government authorities in its sub-region - Menzies, Leonora, Laverton and Ngaanyatjarraku. The Shires support the operation of the office by providing a vehicle, telecommunications and office facilities. GEDC’s Leonora-based project officer attends selected Council meetings and participates in relevant forums and events. Every four months the Shire CEOs meet with GEDC’s Executive Officer. Monthly reports and minutes of the GEDC’s Board meetings are provided to these local government authorities, which regularly receive assistance from GEDC staff on a variety of projects, including cross-regional initiatives. During 2001-02 collaborative work between GEDC and Northern Goldfields Local Government Authorities included the Leonora Aged Care Facility, Leonora Childcare Facility, the inaugural Menzies Muster, Laverton land pricing issues, the development of a North Eastern Goldfields Chamber of Commerce, Leonora Main Street Upgrade, Goongarrie Station, Ecotourism Trails Network and the North Eastern Goldfields Tourism Working Group. Central Goldfields In Kalgoorlie-Boulder GEDC is represented on the ‘Mayor’s Leadership Group’, which also has CEO representation from the Kalgoorlie-Boulder Chamber of Commerce and Industry, the Chamber of Minerals and Energy (Eastern Regional Council) and all local politicians, State and Federal. The meeting is an opportunity for the leaders of ‘peak groups’ in Kalgoorlie-Boulder to discuss strategic issues, such as the proposed re-routing of the railway line around the NW sector, issues concerning the future of GMF Health, racism claims etc.

GEDC works closely with the Shire of Coolgardie on issues such as the development of the Mungari Industrial Estate and the attraction of potential businesses to that estate. GEDC also provided a grant to the Shire to assist in improving telecommunication links between its offices in Coolgardie and Kambalda. GEDC also advised the Shire on funding opportunities in respect of a proposed Community Resource Centre in Kambalda.

South East GEDC maintains a close working relationship with the Shires of Esperance, Dundas and Ravensthorpe to address regional economic and social development issues. GEDC was a member of the Interagency Consultative Committee (that also included representatives of the Shires of Esperance and Ravensthorpe), which developed a proposal for a $55 million infrastructure package relating to BHP Billiton’s Ravensthorpe Nickel Project. GEDC was also a member of the steering committee established to oversee the development of the ‘Blueprint for the Future’, to assess and address the impact the Ravensthorpe Nickel Project.

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During the year GEDC was a member of a Shire of Esperance steering committee that identified a parcel of land north of the town suitable for the development of an industrial estate and also participated in a Study Tour to inspect aquaculture developments on the Eyre Peninsula, which also involved representatives from the Shire of Esperance. GEDC was a member of the ‘Advance Dundas’ working party established by the Shire of Dundas to progress the Shire’s social and economic development, and also worked with the Shire to develop the Dundas Woodlands Heritage Trail. Entrepreneurial Education In early 2002 GEDC instigated a partnership between schools in the region and Young Achievement Australia, an organisation that has a strong track record in ‘entrepreneurship education’. Participation in Young Achievement Australia activities gives secondary and tertiary students the opportunity to be exposed to the real world of business by actually establishing and operating their own company. In the program, groups of students form their own company, a process which involves selling shares to raise capital, elect a board of directors, undertake market research and develop a product which the students then manufacture and sell in the general community. At the end of the program the company is liquidated, and in most cases returns a profit to the shareholders. By dealing with real money and real products, students gain hands on business expertise and develop invaluable life skills in a fun environment. Through the program students attain all the competencies necessary to make them more 'work ready', committed and knowledgeable members of the workforce. GEDC co-ordinated promotional visits to the region to enable Young Achievement Australia staff to promote the program to teachers, and subsequently sourced grant funding from the Kalgoorlie-Boulder Development Fund and the Goldfields-Esperance Regional Development Scheme to offset each school’s participation fee. Keystart, BHP Billiton, Department of Community Development, AurionGold, WMC Resources and the Rotary Clubs of Esperance and Esperance Bay also provided sponsorship. Ten educational institutions in the Goldfields-Esperance region participated in YAA in 2002 including Ravensthorpe DHS, Esperance SHS, Curtin University (Esperance), Wongutha CAPS, Norseman DHS, Kambalda West DHS, Eastern Goldfields SHS, John Paul College, Curtin University (Kalgoorlie) and Eastern Goldfields Education Support Centre. Products devised by these young entrepreneurs included postcard sets, boxed toiletry items and a head lice treatment. In June 2001 many of the YAA companies in the Goldfields-Esperance region participated in a ‘Management Skills Seminar’ in Esperance.

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Goldfields Tourism In 2002 GEDC provided assistance to the Goldfields Tourism Association, which was without an Executive Officer for a three-month period. This work included assisting with the development of the ‘Holiday Planner’ publication, helping the Kalgoorlie-Boulder Visitor Centre to source information, images and potential advertisers. In early 2002 a number of agencies called for a review of tourism marketing and visitor servicing operations in Kalgoorlie-Boulder and the wider Goldfields region. GEDC co-ordinated the visit to Kalgoorlie-Boulder of tourism consultant Norm White from Melbourne-based consultancy Advance Tourism. Mr White has a significant track record of providing advice to regional tourism associations and tourist bureaux throughout Australia. Mr White conducted two workshop sessions while in Kalgoorlie-Boulder and also visited two station properties to advise on tourism opportunities. Mr White proposed the amalgamation of the Goldfields Tourism Association and the Kalgoorlie-Boulder Visitor Centre. This model was subsequently adopted by both organisations, and the merger is likely to take place later in 2002. In March 2002, in collaboration with the City of Kalgoorlie-Boulder, GEDC arranged a familiarisation tour for a senior executive of Virgin Blue Airlines. This included meetings with key stakeholder groups. In May 2002 a familiarisation visit was coordinated for a journalist and a photographer from the magazine Australian Geographic, researching a story on the Australian gold industry with publication anticipated in mid-2003. Investment Opportunities GEDC is keen to promote the Goldfields-Esperance region as an attractive location for investment. In 2001-02 GEDC began work with the Commonwealth Government agency Invest Australia on its 'Inside Intelligence' program. Invest Australia is the Federal Government agency responsible for promoting overseas investment in Australia, and has a number of 'Investment Commissioners' posted overseas. 'Inside Intelligence' is a program designed to provide Invest Australia staff and potential investors with information about investment opportunities in Regional Australia. In the first instance GEDC will complete the 'Inside Intelligence' database, which provides Invest Australia with basic statistical and other information about the region. This will be then used as the basis for a more substantial report on investment opportunities in the Goldfields-Esperance region. A grant of $15,909 was received from the Goldfields-Esperance Regional Development Scheme, which will enable the appointment (in 2002/03) of a consultant to research the ‘Investment Opportunities Report’.

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In January 2002 a videoconference was arranged for Invest Australia staff to brief WA Local Government Association Esperance-Goldfields Zone members on Inside Intelligence. While Invest Australia principally deals with investors based overseas, the investment opportunities that are documented can also be marketed to individual investors in Australia, fund managers and the like. Goldfields and South East Industry Development Centre The principal role of the Industry Development Centre (IDC) is to assist local companies to gain work resulting from major projects in the region, and to assist project proponents to locate companies that can provide suitable services. A ‘Project Suppliers Directory’ was launched in November 2001. 1000 copies of the directory were published in CD-ROM format, with additional ‘hard copies’ also produced. The CD-ROM directs interested parties to the IDC’s web site (www.idcgold.org.au), which was extensively revamped (by a Kalgoorlie-Boulder based company) during the year. Local firms can enter information about their business directly on to the website so that the directory is kept current. Copies of the Directory were forwarded to a range of project proponents, and were well received. The IDC presented a ‘regional overview’ briefing to the Boasteel Nickel Project Team from China. The delegation visited WA to explore the possibility of a joint venture with a local nickel producer. GEDC took over responsibility for the IDC in November 2001 following the expiration of the funding arrangement between the City of Kalgoorlie-Boulder, Kalgoorlie-Boulder Chamber of Commerce & Industry and GEDC. During the year additional funding was sought from Federal and State government sources to enable the IDC to once again be staffed on a full time basis. A proposal was submitted to Austrade proposing the appointment of Tradestart Officer in the Goldfields-Esperance Region. Aquaculture Arid Aquaculture The Arid Aquaculture Association (AAA) was established in 1999 to enable those with an interest in the potential of a desert aquaculture industry in the Goldfields to exchange information. The group included representatives of mining companies, pastoralists, local government authorities, Indigenous people and others. During the year GEDC co-ordinated three AAA meetings, one of which included a presentation from Fisheries WA. GEDC also acted as Secretary to the Association. Early in 2002 Jim Fraser CEO of the Shire of Coolgardie was elected to a joint Secretary/Treasurer position. GEDC believes that it played an important role in fostering the Arid Aquaculture Association in its formative years, but does not propose to play an active role in the group in the immediate future.

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Coastal Aquaculture During the year the Shire of Esperance selected two abalone projects to be developed at its aquaculture precinct at Wylie Bay, east of the town. Australian Ocean Harvest Pty Ltd and Esperance Abalone Farms Pty Ltd plan to produce more than 300 tonnes of abalone per annum and (between the two companies) will employ more than 80 staff. A GEDC representative participated in a study tour to the South Australian Eyre Peninsula region during the year. Esperance interests inspected several abalone farms as well as the MG Kailis Group’s tuna farming operations at Port Lincoln. Discussions took place with the Kailis Group to initiate an assessment of the potential of tuna farming in the South East. Seed Potatoes During the year the Esperance-owned, WA Certified Seed Potato Company completed the construction of a large facility that provides storage and grading services for all Esperance seed potato growers. GEDC assisted the company to source funding from the Commonwealth Department of Agriculture, Forestry and Fisheries to build innovative ‘storage cells’ in the facility. These storage cells use temperature control to shorten the dormancy of the seed. This will provide a significant advantage to seed potatoes growers in Esperance when ‘bulking up’ new varieties of potato and provide a competitive advantage over other seed potato producing locations. Value Adding Groups GEDC continued to provide assistance to two ‘value-adding groups’ (Grain and Livestock) in the South East Region. A pre-feasibility study into grain value-adding opportunities was completed in 2001. This study identified the need for a large, centralised grain drying and cleaning facility. Following the release of the study GEDC provided executive support to a group of grain producers who are progressing the development of this facility. Funding was sourced through the Goldfields Esperance Regional Development Scheme to develop a business plan for the proposed facility. The ‘livestock’ value-adding group established a marketing alliance to supply a high quality, branded prime lamb product through specialty butchers. The group sent its product to a number of retail outlets in a six-week trial that commenced in June 2002. South East Forest Foundation South East Forest Foundation (SEFF) aims to foster the development of a sustainable farm forestry industry in Esperance. The Foundation includes representatives from producers, plantation companies and government agencies. During 2001-02 SEFF organised a Master Tree Grower’s Course, held field days and maintained trial plantations in the district. GEDC provided assistance to SEFF to develop a promotional brochure and assisted in a review of the Executive Officer’s position. 26

Vertical Opening Inspection System In early 2000 GEDC assisted Curtin Consulting Services to access $145,000 funding from the Federal Government’s Rail Reform Transition Program to develop a Vertical Mine Opening Inspection System (VMOIS). During 2001-02 the Commonwealth Department of Transport and Regional Services approved payment of the second and final moiety of $72,500. This payment enabled design work to be completed. It is anticipated that during the second half of 2002 the Western Australian School of Mines (WASM) will take delivery of the VMOIS unit from CSIRO, which has developed this cutting edge technology. GEDC has been involved in discussions regarding the preparation of a business plan to market the product. Assembly of VMOIS units could take place in Kalgoorlie-Boulder thus creating new employment prospects. Ravensthorpe Nickel BHP and Billiton merged in late June 2001 to form the world’s largest diversified mining company. Ravensthorpe Nickel Operations Pty Ltd (RNO) is a wholly owned subsidiary of BHP Billiton. RNO made significant progress during the year including extensive ore preparation, beneficiation and hydro-metallurgical plant work to determine the most cost-effective and practical methods of processing the Ravensthorpe laterite nickel. This work is part of a 14-month definitive feasibility study that is expected to be completed in March 2003. At this time BHP Billiton will determine whether to proceed with the $950 million project. If the project goes ahead RNO plans to ship 190,000 tonnes of a mixed nickel/cobalt hydroxide from the Port of Esperance annually. The product will be processed at the BHP Billiton owned Yabulu Nickel Refinery in Queensland. GEDC worked with local government authorities and State agencies throughout the year to determine and address issues relating to the economic, social, and environmental impact of the Ravensthorpe Nickel Project. Mining Liaison Early in 2001-02 Placer Dome (operators of the Granny Smith gold mine) advised the Shire of Laverton that it would consider the option of housing staff associated with its new Chatterbox deposit in Laverton, rather than having them ‘fly-in fly-out’ from Perth. GEDC assisted the Shire of Laverton to prepare a business case to support this proposal. Unfortunately the Chatterbox deposit was not as rich as initially thought and hence there was no need for a larger workforce.

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Mungari Industrial Estate During the year, four meetings of the Mungari Industrial Park Coordinating Committee were held. The committee considered business development issues, marketing, and infrastructure and planning matters. As a result of the Committee’s work there were some eleven requests received during the year for information on the Park, and a number of parties making initial inquiries have continued to show interest in the Park. LandCorp has developed a number of innovative tenancy models, without the requirement for a headworks charge to be paid. This will allow the occupation of sites in the Park on a lease basis, provided there is no requirement for mains power, water or gas. The aim is to allow companies the lowest entry costs into the Park. Detailed work was also undertaken in respect of the gas supply to the Park and securing the most suitable access route for such a supply. Waste to Energy project During the year GEDC provided further assistance to Green Enviro Technologies Pty Ltd to establish a Waste to Energy plant (using Pyromex technology) at the Mungari Heavy Industrial Park located in the Shire of Coolgardie. Presentations on the Pyromex technology were made to a full meeting of the Shire of Coolgardie, the Waste Management Board, relevant government agencies, political parties and industry bodies to raise awareness of the technology and its benefits. Unfortunately, during the year the Memorandum of Understanding that had been signed between Green Enviro Technologies Pty Ltd and Hillcrest Mining lapsed. Hillcrest Mining was not satisfied that there were sufficient waste streams available to satisfy their business case. Green Enviro Technology Pty Ltd is continuing to gather data on the waste streams that are available in Western Australia. The company plans to pursue the establishment of a Waste to Energy plant at the Mungari Heavy Industrial Park. GEDC will continue to facilitate this project. Ministry of Justice workcamps The Shires of Menzies, Leonora and Laverton are all keen to see a Ministry of Justice workcamp established in the Northern Goldfields. Workcamp inmates could assist on a number of local projects and would thus have the opportunity to develop a wide variety of work-related skills. During the year GEDC liaised with Ministry of Justice, other State Government Departments and the local government authorities to gain the approval of the Minister for Justice for a workcamp to be established in the region. No decision has yet been made.

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Esperance Industrial Estate For some years the Shire of Esperance has been investigating the availability of land suitable for an Industrial Estate. The need for such a development has recently come into sharper focus because of developments/issues such as: • The dredging of the Port of Esperance and the building of a new berth, which have

enabled the port to accommodate larger ships. • The proposal to construct a new gas-fired power station in Esperance, which is

expected to facilitate industrial development. • The development of mining in the South East, and thus the likely establishment of

Esperance-based companies servicing the mining industry • Industrial diversification generally. • Shortage of larger industrial blocks in the existing light industrial area. GEDC was a member of a steering committee that identified a parcel of land north of Esperance that is considered suitable for industrial purposes. The land is adjacent to the Coolgardie-Esperance Highway and is bisected by the Goldfields-Esperance railway line. The gas pipeline associated with the new Esperance power station will also pass through the site. The land will need to be rezoned from agriculture to general industrial before development can commence, and an environmental assessment is also required. Goldfields Business Enterprise Centre During the year monthly meetings of the Goldfields Business Enterprise Centre (GBEC) were held. GEDC is represented on the Centre’s Management Committee. During 2001-02 the Centre celebrated its tenth anniversary. The ‘core business’ of the Goldfields Business Enterprise Centre is to facilitate the successful establishment of new small businesses in the Goldfields. During the year the Centre also conducted a range of educational activities including ‘Competing Fairly Forums’, Customer Service Training, a Loss Prevention and Insurance seminar and a Public Liability and Workers Compensation Insurance seminar. In addition ‘Small Business, Smart Business’ training vouchers were distributed, and a position for structured workplace learning was offered to a school based trainee. Officers from the GBEC also visited smaller towns in the region and provided advice and assistance to small businesses. During the year the GBEC moved from upstairs premises in Hannan Street, to ‘shop-front’ office space, also in Hannan Street. The benefits of this move were apparent from day one. Clients now know where the GBEC office is located, it is easy to find and the potential for ‘walk-in clients’ has significantly increased. In 2003 the Goldfields Business Enterprise Centre will move again, this time to the ‘Business Incubator’ in Piccadilly St, Kalgoorlie 29

Biomass Energy Plant GEDC provided a contact and referral point to Woodside subsidiary, Metasource, to investigate the viability of a biomass fuelled power plant in Esperance. Metasource has confirmed that the Biomass plant for Esperance is on hold indefinitely as the company’s market assessment has indicated that there is not sufficient customer base load requirement for the plant to be viable. They will maintain interest in the project in Esperance and would reconsider if significant new power customers were established. Metasource will also maintain ownership of the million oil mallee trees planted in the region and farmers who have Metasource oil mallees on their properties will receive an annuity from Metasource. Metasource may consider planting more trees in the region in the future as possible carbon credit for Woodside. Indigenous economic development In 2001-02 GEDC became increasingly active in the area of Indigenous economic development, focusing on • Assisting Indigenous business enterprise development • Coordinating the Indigenous People in Mining group • Developing Indigenous arts • Developing Indigenous tourism and cultural heritage. A part-time Aboriginal Economic Development Officer (employed on a contract basis since August 2000) continued to work on these projects. During the year GEDC and other Development Commissions negotiated with the Office of Aboriginal Economic Development in order to redefine the terms of these positions. In the Goldfields-Esperance region the position will become full-time from August 2002. Considerable time was also spent providing information and reports to various State and federal government departments in order for them to gain a more comprehensive understanding of Indigenous issues, and thus facilitate the development of more effective programs and service delivery. Indigenous business enterprise development GEDC worked with other State and Commonwealth government agencies to assist the development of Indigenous business enterprises in the region by providing information, assistance to access training, business networks and mentoring programs. Assistance with specific issues was also provided to a number of Indigenous businesses in Kalgoorlie-Boulder and the Goldfields region. This work included: • Referrals to courses and seminars including ‘corporate governance’, training and

computer skills • Assistance in starting new businesses

30• Assistance in preparing funding applications

• Referrals to develop business plans • Assistance and referrals to resolve financial queries • Marketing assistance Where appropriate, Indigenous business operators were also encouraged to join larger business organisations such as the Kalgoorlie-Boulder Chamber of Commerce and Industry. Indigenous People in Mining (IPiM) ‘Indigenous People in Mining’ is an informal group established in 1998, when a number of Goldfields-based Indigenous business people, representatives from mining companies and various government agencies, came together with a general aim to increase the participation of Indigenous people in the mining industry. The major project for 2001-02 was to identify IPiM businesses in Western Australia, to coordinate a combined promotion of these businesses at the Goldfields Mining Expo (GME) held in October 2001. Twenty-six Indigenous businesses were promoted - seventeen of the twenty-one participating in the 2000-01 promotion that were still operating, plus several new Goldfields businesses and a small number from the Pilbara and Mid-West regions. The carry over of the majority of Goldfields businesses from 2000 through to 2001 (despite the economic climate in 2001) was encouraging. The Indigenous businesses covered a range of services including vehicle hire, trained personnel/staff hire, mechanical services, rehabilitation of mine sites, industrial cleaning, retail and vending operations, drilling and mine support services. The Goldfields Mining Expo provides excellent opportunities for facilitating business contacts between Indigenous enterprises, resource developers, mining contractors and other exhibitors. Since August 2000, GEDC has provided ongoing coordination and support for the IPiM group. The Aboriginal Economic Development Officer has each year assisted the individual operators to develop company profiles and coordinated the production of promotional materials such as business cards and posters, together with IPiM business directories. Indigenous Arts Development GEDC’s development and support of Indigenous Arts in the Goldfields-Esperance region has the potential to lead to a number of positive outcomes. Apart from being an additional income source for individual artists and communities, arts development enhances ‘cultural heritage’ and offers Indigenous people a higher profile within their own communities and in the wider community. In 2001-02 GEDC continued to facilitate the establishment of a number of new arts projects and supported several existing projects. These included:

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• Successfully establishing and mentoring the first BIG hART project in the region - a youth focused arts program that ran from May to August 2002 in Kalgoorlie-Boulder, aimed at making contact with and supporting marginalised young people through their involvement in film making, murals and circus skills workshops.

• Investigating opportunities and possible outlets to promote and sell Indigenous art and craft work.

• Liaising with Country Arts and ArtSource to gain funding for an Arts Officer who would provide assistance and training in documenting art works, gaining and handling commissions for work; and business presentation skills for local artists, particularly Indigenous artists.

• Establishing contacts with Indigenous organizations in Coolgardie, Norseman and Leonora to facilitate the staging of a series of arts workshops in the region, later in 2002.

Developing Indigenous Tourism and Cultural Heritage The development of Indigenous tourism ventures provides excellent opportunities for full-time, part-time and casual employment, and economic development for Indigenous communities. Working in conjunction with the Department of Conservation and Land Management, the Goldfields Land and Sea Council and ATSIC’s Wongutha Regional Council, GEDC has sought to develop and strengthen this sector of the tourism industry. This involved working with existing tourism operators and organisations, and possible new operators, to provide information on others involved in similar tourism ventures around Australia, training opportunities and funding information. With the development of Heritage Trails throughout the region, and the Outback Highway, the Aboriginal Economic Development Officer sought the involvement of appropriate Aboriginal people in the ‘dual naming’ of Trail sites, and the collection of information for a guidebook and an audio package. Four trainee CALM rangers, who are also undertaking qualifications in Indigenous Tourism, undertook the collection of much of this information. During the year the Aboriginal Economic Development Officer worked with Wongutha Birni Aboriginal Corporation (WBAC) to establish a new Indigenous cultural and education centre in Kalgoorlie-Boulder. This involved sourcing funding, lobbying, providing assistance in securing planning approvals, insurance and legal procedures. WBAC secured a lease on a heritage building that is currently semi-derelict, but which will eventually provide excellent facilities for the Cultural Centre. 32

Kepa Kurl The Kepa Kurl Discovery Centre in Esperance is being established to promote the natural and cultural heritage of the South East coastal region. The need for such a Centre has been identified in a tourism industry strategic plan for the region. A GEDC representative serves on the Kepa Kurl Steering Committee. The Discovery Centre will inform and educate visitors to Esperance about the Recherche Archipelago, the nearby national parks, the wetlands, the coastal heath and the region’s Indigenous and European people. Following the compilation of a feasibility study and business plan in 2001, Kepa Kurl sought Regional Solutions funding to develop detailed building plans. This application was unsuccessful, but the group will resubmit a proposal later this financial year. Esperance Marine Institute In June 2000 an Aquaculture Management Plan for the Recherche Archipelago recommended that the local community be actively involved in the on-going management of the Archipelago. The Esperance Marine Institute was established as a community driven organisation to co-ordinate this management, not only from an environmental perspective but also to influence marine-related economic development and employment opportunities. During the year GEDC assisted the Institute’s board to prepare a feasibility study that identified marine education and ‘Research and Development’ opportunities. A business plan will be prepared in 2002-03. Promoting the Goldfields as a Conference Destination GEDC continued to co-manage the Goldfields MICE program in association with the Goldfields Tourism Association. The acronym ‘MICE’ stands for ‘Meetings, Incentive, Conventions and Exhibitions’, a high-value sector of the tourism industry. The aim of the Goldfields MICE Program is to attract state, national and international meetings, conferences, seminars, workshops, and trade exhibitions to Kalgoorlie-Boulder. Christine Boase continued as part-time Coordinator. The Goldfields MICE Program: • Researched conferences that could be staged in the region. • Assisted ‘local host groups’ to bid for MICE events by providing information on venues,

accommodation, travel options and regional tours. • Liaised with the Perth Convention Bureau to develop and promote MICE opportunities

for the Goldfields region. • Promoted the WA Goldfields region at the Asia-Pacific Incentives and Meetings Expo in

Melbourne in February 2002. • Liaised with local organisations including the Goldfields Mining Expo and the

Kalgoorlie-Boulder Racing Club to develop and promote existing events in the Goldfields.

• Assisted the organisers of a number of conferences/events held in Kalgoorlie-Boulder during 2001-02 to increase delegate numbers (especially in the wake of the collapse of Ansett Airlines) and to source local suppliers.

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• Worked with a Perth tour operator to package spectator travel for a WA Football League game played in Kalgoorlie in August 2001.

• Served on the committee of the inaugural ‘Rhythms in the Outback’ Festival, aiming to develop this festival as an major ongoing regional event

Considerable work was undertaken to assist the organisers of a small but significant international meeting that attracted delegates from 19 countries. From the ‘Asia-Pacific Network Meeting and workshops on Vegetation Recovery in Degraded Land Areas’ held in October/November 2001, a number of cooperative studies and projects were developed between the delegates and students and staff of the Centre for the Management of Arid Environments. A welcome but unexpected outcome of the Asia-Pacific Network meeting was a gift by the Japanese company Kobe Steel, of $25,000 towards tree-planting in Kalgoorlie-Boulder. The MICE Program assisted in bidding for a number of state and national MICE events including the Australasian Cemeteries and Crematoria Association (ACCA) conference 2004 and the Australian Local Government Association National Local Roads Congress 2003. The ACCA conference generally attracts up to 400 delegates and partners. Following presentation of a detailed bid and a three-day inspection visit by ACCA representatives hosted by the MICE Coordinator, the conference was awarded to Kalgoorlie-Boulder. This conference is likely to take up an estimated 1740 room nights in Kalgoorlie-Boulder. The value to the local economy is estimated at more than $348,000 in accommodation and catering, with functions, tours and individual spending adding a further $100,000. In April 2002 the MICE Coordinator hosted a familiarisation for 29 Malaysian ‘Outbound Tour Operators’ plus managers from MAS Airlines, journalists and inbound operators based in Perth. This visit has resulted in a number of positive negotiations to develop regular tours for Asian Incentive groups and leisure tourists. The MICE Coordinator worked with the Perth Convention Bureau and other regional MICE Coordinators to implement a range of marketing strategies to counteract the severe downturn in national and international travel in the wake of the September 11 bombings, and the collapse of Ansett Australia. A regional MICE brochure ‘Put your Best Foot Forward’ was produced, including information on the Goldfields, and this was distributed Australia-wide, and supported by a media campaign. The City of Kalgoorlie-Boulder supported the Goldfields MICE program with a contribution of $15,000 in 2001-02. The Perth Convention Bureau contributed $5,000 and a further $15,000 was provided through the Kalgoorlie-Boulder Development Fund. In 2002-03 the Mice Program will be incorporated into the main structure of the Goldfields Tourism Association, as part of a restructuring of the Association, with the part-time position of MICE Coordinator to become a full time tourism Marketing and Conventions Officer.

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State Coastal Conference GEDC assisted in the preparation of a successful bid to hold the inaugural WA State Coastal Conference in Esperance. GEDC then provided executive assistance to the conference organising committee leading up to the conference in November 2001. The conference was very successful, with 225 delegates attending from around Australia, providing significant economic benefit to local businesses, and opportunities to showcase the spectacular coastal scenery, the Port of Esperance, coastal industry and tourism developments. Youth Driver Development Program The Youth Driver Development Program is committed to reducing the number of young people seriously injured and killed as a result of road crashes in WA. The program comprises a six-module driver-training course for Year 11 students as they prepare to obtain a driver’s license. The program aims to develop sound attitudes towards driving and safety, while simultaneously teaching driving skills. The Chamber of Minerals and Energy contributed $10,000 to this project. Golden City Motors is providing two cars free of charge, with another car made available by WMC Kalgoorlie Nickel Smelter. The Kalgoorlie-Boulder Chamber of Commerce and Industry provides the fuel for the vehicles. GEDC supported this program with a grant from the Kalgoorlie-Boulder Development Fund, as well as having a representative on the committee. Grants information GEDC provided Local Government Authorities and community groups with information on a range of grant opportunities. GEDC subscribes to an Internet-based grants notification service, and gleans information about grant opportunities from this source, as well as from newspaper advertisements. GEDC also provided detailed funding advice to a number of Local Government Authorities and community groups in relation to specific projects. In October/November 2001 community development specialist Anne Jennings visited centres in the Goldfields-Esperance region to deliver workshops on ‘Submission Writing Skills’. Sessions were held in Ravensthorpe, Esperance, Norseman, Coolgardie Kalgoorlie-Boulder, Kambalda, Leonora, Laverton and Leinster. The response was excellent in all centres, with the participants (representing community, welfare, environment and sporting groups; service clubs; and local government) learning how to better present funding submissions. Ms Jennings’ visit was co-ordinated by GEDC and funded by the Department of Regional Development and Local Government. GEDC assisted the Shire of Coolgardie to finalise a major grant proposal to the Federal Government’s Regional Assistance Program to enable the employment of a ‘Moveable Heritage’ Curator. The application was successful, and the Shire will make an appointment to the position during 2002-03.

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From October 2001 a major aspect of this project was promoting the availability of funding from three grant programs that make up the State Government’s ‘Regional Investment Fund’ – Regional Infrastructure Funding Program (RIFP), West Australian Regional Initiatives Scheme (WARIS) and the Goldfields-Esperance Regional Development Scheme (GERDS). Golden Pipeline The Golden Pipeline Project honours CY O’Connor’s legendary infrastructure achievement. The project involves the conservation and interpretation of pumping stations and associated infrastructure along the route of the Goldfields and Agricultural Water Scheme, from Mundaring to Kalgoorlie, incorporating a drive trail. The project is led and facilitated by the National Trust. GEDC is involved in two project development committees - the Golden Pipeline Working Group and the Goldfields Planning Advisory Group. Goldfields-Esperance Regional Development Scheme and Kalgoorlie-Boulder Development Fund Goldfields-Esperance Regional Development Scheme The Goldfields-Esperance Development Scheme is administered by GEDC, and is a component of the State Government’s Regional Investment Fund. $400,000 was available for distribution in 2001-02. The primary objective of this Scheme is to enhance social and economic development in the Goldfields-Esperance region through funding projects that will assist in attracting investment and increasing employment. In 2001-02 priority was given to activities that encouraged investment in the region; projects that demonstrated partnerships between stakeholders; tourism development and projects fitting into the framework of GEDC’s Strategic Plan 37 applications were received, with a project value of over $1.3 million. Projects funded in 2001-02 were: Restoration and Development of Hoover House $31,818.18 Wireless Communication $54,545.45 Major grain handling facility $10,000.00 Bullenbuk land conservation, training project $54,545.45 Festival of the Wind $12,272.73 Australian Explorers Hall of Fame $16,454.55 Ravensthorpe "on time" $22,727.27 Regional Economic Impact & Employment Planning $20,404.55 Enterprise Education through YAA $11,550.00 Investment Opportunities Guide $15,909.09 Interpretation Material for Golden Quest Trail $75,227.27 Australia Unlimited - Regional Mobile Roadshow $54,545.45

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Kalgoorlie-Boulder Development Fund The objective of the Kalgoorlie-Boulder Development Fund is to assist projects that will improve social infrastructure and the general quality of life in Kalgoorlie-Boulder. Due to legislative issues, not all the $250,000 available in 2001-02 was granted, but the balance has been added to the 2002-03 allocation. Projects to receive funding were: Adeline Youth Facility $38,442.00 Goldfields MICE Program $13,636.36 Youth Driver Development Program $18,181.81 BIG hART Program $18,000.00 Enterprise Education – Young Achievement Australia $4,950.00 Nursing Scholarships $5,909.09 Safer WA Hype Project $2,000.00 Output 2 Industry and Enterprise Development Output Measures 2001-02

Target 2001-02Actual

Reasons for significant variation between Target and Actual

Quantity Chargeable Hours 6454 5618 Kalgoorlie-Boulder Development Fund

1 1

Quality Customer satisfaction by client survey

85% 86%

Timeliness Project milestones by due date 80% 84% Cost Cost per hour $106 $100 Kalgoorlie-Boulder Development Fund

$102,500 $29,905 Difficult to estimate from which output the grants would be accessed.

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Output 3 – Coordination of Infrastructure Identification Output description: To coordinate identification of appropriate infrastructure services to the region so as to ensure that they are provided effectively and efficiently to meet the expanding needs of the region. Goldfields Esperance Infrastructure Projects Workshop The Goldfields-Esperance Infrastructure Projects Workshop was first held in March 2001. The forum was an opportunity for public sector infrastructure providers to detail their agency’s infrastructure developments to colleagues and counterparts from across the region and from Perth. While it had been planned to hold a similar forum during 2001-02, this event has been postponed to 2002-03, as GEDC believes that better information will be available at that time, especially in relation to water, power and rail services. Goldfields Esperance Regional Water Strategy During the year GEDC continued to be proactive in seeking the best option, or options, for the provision of alternative and affordable sources of water for the region. The current water crisis in the metropolitan area has added a greater sense of urgency to finding a long-term solution for the water supply needs of the Goldfields-Esperance region. Failure to do so will prove a major inhibitor to the region’s continued prosperity. In 2000-01 the State Government sought ‘Expressions of Interest’ from companies wishing to propose new water supply options for Goldfields- Esperance region. In September 2001 Cabinet considered the assessment of the EOI responses and approved the drafting of the Goldfields-Esperance Regional Water Strategy. To manage the process, the Goldfields-Esperance Region Water Supply Steering Committee was established together with four technical working groups. GEDC actively participated in all four groups. To support the development of a comprehensive strategy, four specific studies were undertaken to cover the key issues raised by the EOI process: • A position paper establishing water allocation policies for the North Eastern Goldfields. • An assessment of issues associated with the extraction of water from paleochannels,

the source of locally available hypersaline groundwater, used extensively in minerals processing.

• An assessment of the true cost of water delivery to the Goldfields through the Goldfields & Agricultural Water Scheme (G&AWS).

• An economic assessment of various proposals to supply water to the region. Following detailed scoping this final report specifically considered the principal options that emerged from the EOI process. These were:

• Upgrading the G&AWS as the ‘base case’ option. • Desalination of seawater at Esperance and piping to Kalgoorlie. • Seawater from Esperance piped to Kalgoorlie with desalination at Kalgoorlie. • Ground water piped from the Officer Basin to Kalgoorlie. • Piping of ground water from the Eucla Basin. 38

As part of the development of the strategy consultations took place in November 2001 with key stakeholders in both Kalgoorlie-Boulder and Perth. Upon approval from Cabinet the draft strategy will be released, and comment sought. A final version of the strategy will subsequently be presented to Cabinet for its consideration. Esperance Power Station and Gas Pipeline In July 2001 Western Power signed an 18 year agreement with independent power producers Burns and Roe Worley Developments to construct a new gas fired power station in Esperance. A 330km gas pipeline will be constructed from Kambalda to Esperance to feed the new power station, which will be built on Esperance Port Authority land. The $100 million project is expected to be completed by early 2004 and includes the construction of a new wind farm west of Esperance. The new power station will supply more than 25% of Western Power’s regional customers outside the southwest power grid. The availability of this new, reliable power source will stimulate local economic development and employment opportunities. Power to Hopetoun and Ravensthorpe During the year Burns and Roe Worley (BRW) also submitted a proposal to the Regional Power Procurement Steering Committee to build gas-fired power stations in Hopetoun and Ravensthorpe. BRW propose to compress natural gas from the Kambalda-Esperance pipeline in Esperance’ and transport the fuel by road to Hopetoun and Ravensthorpe. The proposal is being considered by the Office of Energy and Western Power. Telecommunications The WirelessWest Project Under the WirelessWest initiative (a project jointly funded by the State and Commonwealth Governments and Telstra), two of forty-five new CDMA base stations are to be located in the Shire of Coolgardie - at Telstra’s Finlayson microwave site and at the Miitel/Mariners mine south of Widgiemooltha. A third base station (Telstra’s No 7 Tank microwave site) is situated on the boundary of the Shire of Yilgarn and also provides CDMA coverage into the Shire of Coolgardie along Great Eastern Highway. GEDC was instrumental in securing funding for these new base stations as a contribution towards the cost of establishing them. CDMA Mobile Phone Coverage in NE Goldfields and Esperance Telstra Country Wide, in response to approaches from GEDC, provided CDMA mobile phone coverage for Leonora, Leinster and Laverton during the year. Menzies is still to

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receive CDMA coverage and this matter is the subject of ongoing discussions between GEDC and Telstra Country Wide. CDMA mobile base stations in the Esperance area were also commissioned during the year. CDMA Mobile Coverage for the Eyre Highway Despite protests and representations by the West Australian Government to the Federal Government only an additional $1m has been approved to provide terrestrial mobile phone coverage along major highways in WA. GEDC asked Telstra to explore the possibility of providing CDMA mobile phone coverage along the Eyre Highway from Norseman to Eucla. Telstra confirmed that eight CDMA base stations would be required to provide substantially continuous vehicle mobile coverage between Norseman and Eucla on the Eyre Highway. An upgrade would also be required at the existing Norseman CDMA base station. If only $1m was available then potentially only three of these CDMA base stations could be considered, providing only ‘islands’ of coverage. The most likely locations would be Balladonia, Caiguna and Eucla. The Federal Government will let the State decide where to best spend the $1m. However GEDC is aware that a strong bid is being made for the money to be spent in the North West of the State. Broadband Advisory Group Consultation The Broadband Advisory Group has been established by the Federal Minister for Communications, Information Technology and the Arts to provide high level advice to the Government on broadband development in Australia, and as a means of fostering dialogue between ‘broadband stakeholders’, both supply-side and demand-side. The Group is particularly interested in health, education, business and community issues. GEDC, as part of the Communications Advisory Committee, made representations to the Group on how this issue impacts on the Goldfields-Esperance region. Strategic Study for Improving Telecommunications in Regional, Rural and Remote Indigenous Communities During 2001-02 the Commonwealth Government commissioned a study into telecommunications services for regional, rural and remote Indigenous communities as part of its response to the report of the Telecommunications Service Inquiry (Besley Report). To undertake the study, a taskforce was established within the Department of Communications, Information Technology and the Arts. GEDC invited local representatives of the Education Department, ATSIC and Department of Indigenous Affairs to participate in a videoconference with a representative of the taskforce. Telecommunications Networking for the Ngaanyatjarra Lands Communities During the year the Ngaanyatjarra Council received $254,500 from the Networking the Nation program to fund a high frequency radio communication. The radio system will cover fifteen Ngaanyatjarra Lands communities and outstations and the Alice Springs Ngaanyatjarra Council office, these locations spread across some 18 million hectares.

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The grant will also allow the employment of a project officer to oversee the implementation of the system and the development of a telecommunications plan for the region. The Ngaanyatjarra Council was also successful in attracting additional funding of $429,000 from Networking the Nation to construct a virtual private network to link the various communities throughout the Ngaanyatjarra Lands. At the end of 2001-02 a total of $2.06 million of Networking the Nation funding had been obtained for various telecommunications projects in the Goldfields-Esperance region; not including new services in Ravensthorpe which have been funded by Networking the Nation grants sourced by the Great Southern Development Commission. Asymmetric Digital Subscriber Line (ADSL) In July 2001 Telstra Country Wide launched its ADSL service in Kalgoorlie. This is a broadband service that allows Internet access at speeds of up to 50 times faster than a standard dial-up modem. It also allows a range of high bandwidth services such as video streaming, high-resolution graphics and music. This ability to handle large amounts of data transfer quickly will be of benefit to regional businesses. Telstra is also proposing to make this service available in Leonora and Esperance. Eucla Services During the year a number of meetings were held with the Shire of Dundas, Government agencies and the local community in Eucla to investigate the possibility of rationalizing water and power utilities in the town site. The meetings were arranged to discuss the possibility and potential for private residents/ratepayers to access the water and power utilities that are currently managed by a consortium of government agencies. A number of options were considered and these were presented to the members of the consortium and the Shire of Dundas. The Shire expressed its concern with the cost involved in any changes to the current system and further investigation into this issue was sought. During the year the Office of Energy announced a program to review and upgrade the provision of power to remote communities. Eucla is listed to be addressed in mid 2003. Further investigations by GEDC and the Shire of Dundas have been suspended pending this review.

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Kalgoorlie-Boulder Rail Line Alignment In November 2001 the Minister for Planning and Infrastructure, Alannah MacTiernan MLA gave approval for the Department of Planning and Infrastructure to progress a consultation process on options for the potential rerouting of the rail system that runs through Kalgoorlie. A meeting of various agencies, including GEDC, was held in Kalgoorlie-Boulder in January 2002 to develop a plan to undertake this public consultation. The City of Kalgoorlie-Boulder, GEDC and the Department for Planning and Infrastructure worked together to formulate and manage the formal public consultation process. Three rerouting options were developed. Brochures and display maps on the three rail rerouting options were made available in March 2002. The public consultation process closed in June 2002, with 285 submissions being received from interested parties. The Department for Planning and Infrastructure commenced a business case study on the ramifications of rerouting the rail line around the City of Kalgoorlie-Boulder. The business case study aims to cost the realignment options, investigate potential development of any land made surplus by a rail realignment, assess possible commercial linkages with planned rail developments and determine if other commercial benefits would be delivered by a rail realignment. The aim is to have the community consultation report and the business case study presented to the Steering Committee by the end of August 2002. Transport Goldfields Highway - Lake Raeside Crossing During the year GEDC continued to lobby for an upgrade of the Goldfields Highway Crossing at Lake Raeside to be completed earlier than 2007 date currently proposed. Pre-construction funding has been allocated in the current four year ‘forward estimates’ and design work is well advanced. Work on this $10.3 million project includes reconstruction of 15km of the Goldfields Highway and construction of a new 120 metre bridge and associated floodways. The upgrade will result in floods of the magnitude of Tropical Cyclone Bobby closing the road for only a few days and other rainfall events causing little or no disruption. Goldfields Highway – Wiluna to Meekatharra GEDC continued to lobby for the early completion of this project. This 180km section of the Goldfields Highway is a formed gravel road and is the last gravel section on this highway that links Kalgoorlie and Meekatharra. This section of road is subject to closure during wet weather with closure periods typically totalling around 17 days per year. Wear and tear on transport is significant, as is the cost of maintenance of the road itself. The estimated cost of upgrading this 180km section of highway to a sealed standard is $67m. The timeframe for the upgrade is for completion by

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2006. This timeframe is noted in the State Government’s election commitments, although funding is still to be allocated. Report on ‘Priorities for Improvements to Transport Infrastructure in the Goldfields Region’ This report was prepared during the year by SMEC Australia Ltd on behalf of the Chamber of Minerals and Energy (Eastern Regional Council), Kalgoorlie-Boulder Chamber of Commerce and Industry and the City of Kalgoorlie-Boulder. Following publication. presentations were to key decision makers including ministers and their advisers. The report presents the Goldfields mining industry’s position on transport issues. ‘Cyclone-proofing’ the Goldfields Hwy at Lake Raeside and completing the sealing of the Goldfields Highway between Wiluna and Meekatharra were issues of key concern. GEDC briefed the consultants preparing the report, and wrote to State Government ministers in support of the report’s recommendations. South West to Goldfields Study This study was commissioned in 2000-01 to research possible new transport links between the South West and the Goldfields. A meeting between the Steering Committee (on which GEDC is represented) and the consultant was convened in late August 2001. It is likely that the report will be referred to the WA Planning Commission’s Transport Committee for endorsement, possibly at its September 2002 meeting. Outback Highway GEDC is a member of the Outback Highway Development Council (OHDC), which is lobbying for the development of the Outback Highway from Laverton in Western Australia to Winton in Queensland via Alice Springs in the Northern Territory. The Council includes representatives from local government authorities along the route, government road agencies and regional development authorities. In the 2001-02 Budget the State Government allocated $250,000 each to the Shires of Laverton and Ngaanyatjarraku for upgrades to the Outback Highway. To date, no Federal funding to upgrade the Outback Highway has been secured. The Shires of Laverton, Ngaanyatjarraku, Alice Springs, Boulia and Winton are joint funding an Executive Officer/Lobbyist position, with an appointment likely early in 2002-03. It is through this position that the five Local Government Authorities intend to continue lobbying the Federal Government for a financial commitment to the Outback Highway. In June 2002 the ‘Just Cuts Car Trek’ started in Winton in Queensland and finished in Laverton Western Australia, with the cars travelling on the Outback Highway. This Trek served to highlight the importance of this ‘third link’. Three cars from the Goldfields-Esperance region were entered in the Trek – GEDC Board members Gary Lye and Greg Hannah travelled in the ‘Goldfields Transport’ car; City of Kalgoorlie-Boulder Mayor Paul Robson piloted a blue Mercedes across the country; and Outback Highway Development Council Chairman Patrick Hill was one of the drivers of a Laverton car. During the year, the Outback Highway Development Council received a grant of $164,000 under the Federal Government’s Regional Solutions Program to undertake an economic and social impact assessment of upgrading the Highway.

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Goldfields Women’s Refuge During 2001-02 GEDC continued to assist the Goldfields Women’s Refuge Association in its Joint Venture arrangement with the State Government’s Ministry of Housing to develop a new Women’s Refuge on the site of the former premises in Dugan St, Kalgoorlie. GEDC acted on behalf of the Refuge in detailed negotiations with the architect, the Ministry of Housing and the builder. An application for funding for a substantial range of furniture and other ‘fit-out’ items was prepared by GEDC and submitted to the Lotteries Commission in late 2001. The application was successful, with $89,813 granted. GEDC subsequently co-ordinated the purchase and installation of numerous items, ranging from linen to sofas; from white goods to whiteboards. The Hon Sheila McHale MLA, Minister for Community Development, opened the new Goldfields Women’s Refuge on 20 April 2002. Refuge clients and staff moved in a few weeks after the opening. GEDC is proud to have played a major role in bringing this major building project to fruition. Output 3 Coordination of Infrastructure Identification Output Measures 2001-02

Target 2001-02Actual

Reasons for significant variation between Target and

Actual Quantity Chargeable Hours 1530 1091 Less emphasis has been

placed on this output over the past twelve months

Kalgoorlie-Boulder Development Fund

1 1

Quality Customer satisfaction by client survey

85% 84%

Timeliness Project milestones by due date 80% 85% Cost Cost per hour $112 $82 The majority of costs related to

this output have been employee expenses rather than high cost project expenditure

Kalgoorlie-Boulder Development Fund

$21,500 $19,221

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Output 4 – Regional Promotion Output description: To promote the region’s advantages and attractions so as to encourage investment that will contribute to economic growth, employment and increased population base of the region. Australia Unlimited Taskforce The Australia Unlimited Taskforce was established in 2000 to implement and manage initiatives proposed in the report ‘A Marketing Strategy for the Goldfields-Esperance Region of Western Australia’ to market the Goldfields-Esperance Region (published in April 2000). The Taskforce, chaired by community member Kay Curson, includes representatives of major stakeholders throughout the region including Local Government Authorities, Kalgoorlie-Boulder Chamber of Commerce and Industry, the Chamber of Minerals and Energy of WA, Indigenous groups, tourism associations, as well as community members. The aim of the Marketing Strategy is to encourage more professionals to live and work in the region; to attract more investment and industry; to encourage more people to visit the region and to stay longer; to attract more retirees; and to increase current residents’ sense of pride in the region. During 2001-02 the Taskforce progressed the following projects: Regional Shopfront in Perth / Regional Promotional Roadshow During the year, the Australia Unlimited Taskforce determined that the establishment of a ‘Regional Shopfront’ in Perth (as had been proposed in the Marketing Strategy) was not a viable option at present. In lieu of this strategy, the Taskforce began to develop the concept of a ‘Promotional Roadshow’, a display that could be set up in various locations, to promote the Goldfields-Esperance region. In February 2002 the Taskforce was granted $54,454 from the Goldfields-Esperance Regional Development Scheme to develop the Roadshow concept. The planned promotional activities will occur later in 2002. Regional Housing Design Competition The Australia Unlimited Taskforce and GEDC launched the ‘Your Kinda House’ regional housing competition in mid 2001. The competition was open to West Australian registered Architects and members of the Building Designers Association of Western Australia. The goal of the Housing Design Competition was to source 'regionally appropriate' residential building designs. The aim was to source contemporary designs that might, in time, become as associated with the Goldfields-Esperance region of Western Australia as the ‘Queenslander’ is to that State. Entries were sought in three categories – Goldfields, South East and ‘Remote’.

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The competition closed in October 2001 and attracted 25 entries. The winning designs were announced in November 2001 and displayed in Perth and throughout the Goldfields-Esperance region between December 2001 and April 2002. Charity House Project GEDC gained good exposure for the concept of ‘regionally appropriate’ building designs from the Housing Design Competition, but it was felt that considerable additional exposure could be gained by actually building one or more of the three winning designs. The Goldfields section of the competition was won by Perth-based architect, Fiona Hogg, from Troppo Architects WA P/L. During 2001-02 GEDC began to develop a proposal to have Fiona Hogg’s winning design built in Kalgoorlie-Boulder as a ‘Charity House’ with the net proceeds from the auctioned property benefiting the Goldfields Nursing Home Fundraising Campaign.

Marketing GEDC and the Australia Unlimited Taskforce partnered with Local Government Authorities, Regional Tourism Associations, Tourist Bureaux and the Industry Development Centre to promote the Goldfields Esperance Region at the 2001 Goldfields Mining Expo. The Taskforce also participated in the ‘Health of the Outback Day’, held at Kalgoorlie Regional Hospital. In October 2001 the Goldfields-Esperance Region was showcased in the State Government’s Intersector magazine as a great place to live, work and invest. Another promotion involved the distribution of bumper stickers advertising the Australia Unlimited website, www.australiaunlimited.com.au. The first edition of an ‘e-newsletter’ to promote the region and Australia Unlimited projects was published in May 2002 Promotional Seminar The ‘Are you worth your weight in gold? . . . we think you are’ seminar was held in Perth in November 2001. The aim of the seminar was to promote the region as a great place to live, work and invest. The seminar sought to dispel some of the ‘myths and perceptions’ about the Goldfields-Esperance region sometimes held by those living and working elsewhere. The seminar was aimed at professionals and their partners (government and non-government, the mining industry and university graduates) who were considering moving to the Goldfields-Esperance region, who had recently been advised of their impending transfer to the region, or for those who simply wanted to know more about the region.

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Goldfields-Esperance Heritage Trails GEDC published a Regional Marketing Strategy in 2000 and established the Australia Unlimited Taskforce. The role of the Taskforce was to implement the initiatives outlined in the Strategy to lift the profile of the region. One project was the establishment of a heritage trails network throughout the region. A feasibility study was positive, with priority given to three trails - the Golden Quest Discovery Trail (Central and Northern Goldfields) the Dundas Woodlands Discovery Trail and the Esperance Explorers Trail. During the year GEDC has progressed the development of these trails. Golden Quest Discovery Trail The Golden Quest Discovery Trail will be 985km in length, and will connect the communities of Kalgoorlie-Boulder, Menzies, Kookynie, Leonora, Laverton, Broad Arrow, Ora Banda and Coolgardie. The Trail will pass through numerous historic mining settlements and ghost towns, including Davyhurst, Mt Morgans, Gwalia, Siberia, and Malcolm. The area impacted by the trail will be some 45,000 km2, about two-thirds of the size of Tasmania. In 2001-02 infrastructure, interpretation and marketing plans were prepared. This work included site drawings and infrastructure requirements for each of the twenty-five sites, including 160 directional signs, entry signs, interpretative material and marketing issues Interpretative material will include a CD and guidebook that will assist to deliver a comprehensive and enjoyable visitor experience.

The consultants who developed the above plans also set a goal for the Trail that “By 2006, the Golden Quest Discovery Trail will be recognised as one of the great interpretive drive trails of Australia, attracting national and international visitors and providing employment and tourism-related business opportunities for Goldfields communities.” The consultants believe that by 2006 the Trail could attract 50,000 additional visitors to the Goldfields region, with $25 million extra spending, leading to the creation of 400 additional jobs. In total, $642,227 was accessed from external grants for this project. Including in-kind support from various Local Government Authorities and GEDC staff, this project involves an investment in excess of $800,000

A Golden Quest Trail Association is to be formed to ensure all key stakeholders have a hand in the implementation and future management of the Trail. It is anticipated that the Trail will open on 28 March 2003. The Golden Quest Discovery Trail has the potential to deliver a major tourism competitive advantage to towns along its route and the wider Goldfields region, with heightened awareness of the region and increased visitor spending resulting in enhanced economic development opportunities.

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Dundas Woodlands Discovery Trail During the year a Development, Interpretation and Marketing Plan was completed for the Dundas Woodlands Discovery Trail. The trail promotes the Dundas Woodlands, a vast area of Eucalypt dominated woodland that is widely recognised as the world’s most significant virgin temperate woodland. The trail incorporates a ‘Woodlands Walk’ and interpretation and activities along the road between Norseman and Hyden. This trail will provide an alternative touring loop to and from Perth. The development of the Dundas Woodlands Discovery Trail will link a variety of attractions in the Goldfields region with the much-visited Wave Rock in the Eastern Wheatbelt Planning for the Dundas Woodlands Discovery Trail has received support from the Shires of Dundas and Kondinin, the Norsemen Tourist Bureau and the Hyden Progress Association. Esperance Explorers Trail During the year GEDC commissioned Development, Interpretation and Marketing Plans for trails in the South East of the Region. The Plan includes two trails - the ‘Esperance Explorer Trail’ and the ‘Cape Le Grande Trail Enhancement’. A ‘Fitzgerald Coast Alternative Route’ has also been included in the planning, with this route designed to stimulate visitation to Hopetoun and Ravensthorpe. The final ‘South Coast Trail Project Plan’ will be released later in 2002. Newsletter GEDC publishes a newsletter to inform stakeholders about its activities and projects, and to provide general information about economic and community development in the Goldfields-Esperance region. Four newsletters were published in 2001-02. Each edition of the newsletter is mailed to approximately 1000 stakeholders, Australia-wide. In addition, the newsletter is placed on GEDC’s web page, and a link to the current issue is attached to outgoing emails. Professional Staff Attraction The video ‘Kalgoorlie-Boulder - It’s Your Sort of Place’ produced by GEDC during 2000-01, continued to be promoted and sold well during 2001-02. The video is used by employers to give potential new employees who are not familiar with Kalgoorlie-Boulder, an indication of the city’s lifestyle, facilities and services. During the year the Catholic schools in Kalgoorlie-Boulder produced their own edit of the video, to better market opportunities in the Catholic education system to those considering taking up a teaching position in Kalgoorlie-Boulder. GEDC assisted the City of Kalgoorlie-Boulder and the Shire of Coolgardie to complete ‘Area of Unmet Need’ submissions. ‘Area of Unmet Need’ status (which was subsequently granted by the Department of Health) allows overseas trained doctors to be recruited.

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GEDC continued to convene meetings of the Goldfields Medical Professionals Shortage Group. This is an informal alliance of agencies in the Goldfields region that have a professional or community interest in ensuring that the region is well provided with medical services. Key participants include GEDC, the City of Kalgoorlie-Boulder, the Kalgoorlie-Boulder Chamber of Commerce and Industry, the Chamber of Minerals and Energy of WA, Northern Goldfields Health Service and the Eastern Goldfields Medical Division of General Practice. The group was briefed on nurse recruitment issues, and facilitated better links between Kalgoorlie Regional Hospital and Curtin University’s nursing course. A teleconference was held with a representative of the NSW Rural Doctors Association, which has set up a separate company to manage medical facilities and directly employ doctors in a number of smaller centres in NSW. From time to time the Goldfields Medical Professionals Shortage Group takes specific initiatives that it believes will assist to alleviate medical staff shortages. For instance, during the year GEDC became aware of community concern in relation to the availability of dental services in Kalgoorlie-Boulder. This concern was brought to the attention of the Goldfields Medical Professionals Shortage Group, and the dentists in Kalgoorlie-Boulder were invited to outline the pertinent issues. Subsequently a number of agencies participating in the Group agreed to fund familiarisation visits for intending dentists. GEDC co-ordinated one such familiarisation in May 2002. GEDC made a comprehensive submission to Legislative Assembly Education and Health Standing Committee inquiry into dental services in regional WA, and subsequently facilitated a visit by the Committee to Kalgoorlie-Boulder. The submission noted long waiting lists for dental treatment in Esperance. In November 2001 ‘Young Australian of the Year’ James Fitzpatrick visited the Goldfields. Mr Fitzpatrick is a medical student at the University of WA. As part of his visit GEDC arranged a ‘Medical Careers Forum’ at Kalgoorlie Regional Hospital, involving thirty students from Eastern Goldfields SHS and John Paul College. In mid-2002, the Group agreed to pay for advertising to recruit a second paediatrician to be based in Kalgoorlie-Boulder. GEDC co-ordinated this advertising, which appeared in both Australian and overseas media. 2002 Year of the Outback GEDC has played a significant role in fostering ‘Year of the Outback’ initiatives throughout Western Australia. ‘The Year of The Outback’ is a major national initiative throughout 2002 aimed at promoting Australia’s inland regions. State Co-ordination In 2000-01 GEDC submitted a proposal for $70,000 funding from the State Government’s Regional Development Policy Implementation Projects Scheme (RDPIPS) and this funding, together with a $10,000 contribution from the WA Tourism Commission, enabled the establishment of the position of Year of the Outback State Co-ordinator.

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In August 2001 Barry O’Sullivan was engaged by GEDC in this role, based in Perth at the WA Tourism Commission. Mr O’Sullivan was employed by GEDC until the end of March 2002, when the position was transferred to the Department of Local Government and Regional Development. During the August 2001-March 2002 period, Mr O’Sullivan did a considerable amount of work to inform communities around the State about the role they could play in the Year of the Outback. Information on Year of the Outback events in WA was gathered, consolidated and promoted, and this material was also forwarded to the National Year of the Outback office in Queensland. Minister for Local Government and Regional Development, Tom Stephens MLC launched the Year of the Outback in Western Australia at the Mining Hall of fame in Kalgoorlie-Boulder in November 2001. A dedicated WA Year of the Outback website (www.outbackwa.info) was launched in December 2001. A WA Year of the Outback events brochure was produced in early 2002 to complement the website. 40,000 copies of a twelve page, full-colour publication were distributed to regional tourist bureaux throughout WA, and this publication was also used by the WA Tourism Commission at a number of ‘tourism shows’ interstate. A variety of Perth-based media, rural, mining and service organisations were briefed on how they could support and embrace The Year of the Outback. The West Australian newspaper produced a popular ‘Outback School Pack’ as a resource for teachers and students across WA. This initiative dovetailed well with an enormously successful ‘Sister Schools Project’, which saw the partnering of city and country primary schools. This program resulted in a wide variety of activities, including email and teleconference discussions between city and country students, excursions and trips, joint educational projects and the like. The Sister Schools project will formally continue to operate until the end of 2002, but it is likely that many of the linkages between schools that have been created as a result of this initiative will be ongoing. A better understanding between city- and regionally-based young people bodes well for Western Australia’s future. Year of the Outback intiatives in the Goldfields-Esperance region A number of events in the Goldfields-Esperance region were badged as Year of the Outback events, including the Rhythms of the Outback Festival, the Nullarbor Muster, the Eucla Golf Classic and the Norseman Gold Cup. In November 2001, GEDC organised a visit to Kalgoorlie-Boulder by James Fitzpatrick, who was the ‘Young Australian of The Year’ in 2001. Mr Fitzpatrick was acting as an ‘Ambassador’ for the Year of the Outback. He has a strong interest in Youth issues and also ‘Rural Health’, given that he is a Medical Student at the University of WA. During the visit to the Goldfields James Fitzpatrick and his colleagues in the ‘True Blue Dreaming’ team created a mural with young people at the Ninga Mia Aboriginal community in Kalgoorlie; spoke to students at Eastern Goldfields Senior High School; and travelled to Menzies to create another mural with students at the primary school there.

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Mr Fitzpatrick also spoke at a meeting of 'Working Web' (an inter-agency group of government and non-government service providers in Kalgoorlie-Boulder); to Kalgoorlie Rotary Club; and to the City of Kalgoorlie-Boulder Youth Council. In June 2002, following initial work on the concept undertaken by GEDC, the Golden Mile Trotting Club in Kalgoorlie staged a Year of the Outback rodeo. This was very popular and is likely to become an annual event. Such events are important not only as entertainment, but also as a fillip for the tourism industry, with many people travelling to Kalgoorlie-Boulder to attend or participate in the rodeo. Vehicles in the Just Cuts Outback Car Trek travelled along the Outback Hwy and through Laverton and Kalgoorlie-Boulder on their coast-to-coast journey in June 2002. Three cars from the Goldfields-Esperance region participated in this fun event, raising awareness of Outback issues and travel, and raising funds for the RFDS. GEDC Board Members Gary Lye and Greg Hannah were among the competitors. A number of other Year of the Outback initiatives were developed in early 2002, including the concept of an ‘Outback’ Rotary Club, to meet by videoconference. Information Technology Shire of Coolgardie Wireless Communications Project The Shire of Coolgardie was successful in attracting $54,545 from the Goldfields-Esperance Regional Development Scheme towards its Wireless Communications Project for the installation of a wireless radio network between Coolgardie, Kambalda and Kalgoorlie. GEDC supported this funding submission. Improved Internet Speeds for Schools It is proposed that enhanced Internet speeds (2M or 512K) be made available in State Government schools. In the Goldfields some schools were upgraded in 2001-02, or will be between September to November 2002. In Esperance upgrades should be implemented by March 2003. Catholic schools are following a similar timetable. Access to broadband Internet opens many possibilities for enhanced educational outcomes, including video conferencing, and lessens the disadvantages experienced by rural and remote schools, a particular goal of the GEDC. BushNet Project GEDC facilitated meetings with Broadcast Australia (formerly ntl Australia) in respect of its BushNet proposal for terrestrial broadband Internet in regional and rural Australia. The Shire of Coolgardie has a specific interest in this project because BushNet’s prime target areas are smaller towns and rural regions, typically less than 20,000 population in the ‘digital doughnut’. This refers to areas surrounding major regional centres that are well provided for in terms of Internet services, and remote areas where satellite Internet services are available.

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Broadcast Australia was keen to trial the commercial viability of providing a digital broadband service to Coolgardie and Kambalda and was seeking a partner to apply for Networking the Nation funding to conduct the trials. The Shire of Coolgardie decided to pursue the possibility of trialing the commercial viability of providing a digital broadband service to Coolgardie and Kambalda as proposed by Broadcast Australia. Promotion of Educational Facilities GEDC serves on the Residential College Committee. The Committee was formed by the Goldfields Education District Office to examine the feasibility of establishing a new boarding facility for students attending schools in Kalgoorlie-Boulder. Regional Outlook conference GEDC is collaborating with ABARE (Australian Bureau of Agricultural and Resource Economics) to organise a major one-day conference in Kalgoorlie-Boulder in October 2002. ABARE organises the prestigious ‘Outlook’ conference in Canberra every year, Australia’s principal economic forecasting forum. In recent years ABARE has begun organising similar conferences (but only one day) in regional Australia (including Darwin, Dubbo, Tamworth and Rockhampton). This will be the first ‘Regional Outlook’ conference in WA, and results from GEDC taking the initiative and approaching ABARE. Fitzgerald Biosphere Marketing Association (FBMA) The Fitzgerald Biosphere Marketing Association is a community-based group in the Ravensthorpe and Jerramungup districts, comprising mainly local farmers keen to develop a ‘regional branding’ for local products. Frosts, summer floods, winter droughts and locust plagues have threatened the communities of Ravensthorpe, Jerramungup and Kent in recent years, and farmers have been forced to assess their long-term viability. The Association aims to improve the economic and social viability of the region by highlighting the unique values of the Fitzgerald Biosphere through the development of a ‘regional ‘brand’. The Association employed consultants ‘Business Today’ to complete a business plan and develop the regional brand, reflecting the core values of the Fitzgerald Biosphere region. FBMA negotiated with Dewson’s Supermarkets to test market the regional brand on Banksia cut flowers, this market trial to commence in August 2002. GEDC assisted FBMA with in-kind support – a Project Officer participated in all meetings, worked on subcommittees, undertook research and provided assistance in sourcing funding. Statistical Information GEDC provides a wide variety of statistical and other information to local government authorities, business groups and other agencies throughout the region and further afield. Information frequently sought includes visitor numbers, population statistics, Regional Price Index data and employment/unemployment figures.

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The Goldfields-Esperance Economic Perspective was published in July 2001. GEDC assisted the Department of Local Government and Regional Development to update this publication. The Economic Perspective provides basic information relating to the region’s industries, demographics and economic & infrastructure. It is widely used by a number of agencies to brief visitors to the region. Community consultation/working groups During the year, GEDC staff in Kalgoorlie-Boulder, Esperance and Leonora were involved in a range of ‘subsidiary activities’ which all assisted to ‘progress the region’. The following is a sample of these involvements: • A community committee was established in Kalgoorlie-Boulder during the year to

stimulate local enthusiasm for the Mining Hall of Fame. Initiatives developed included the display of promotional banners in Kalgoorlie and Boulder; a colouring competition for school children; a display at the Kalgoorlie-Boulder library; and an innovative ‘postcard promotion’. Here a postcard was delivered to all homes in Kalgoorlie-Boulder, and all those bringing the postcard to a free community day at the Mining Hall of Fame in November 2001 had the card specially stamped as a memento of the day.

Due to the efforts of this small ‘working group’ over 8,000 local residents enjoyed seeing over the Mining Hall of Fame at no charge, and thus will be well placed to promote the attraction to visitors and new residents.

• GEDC convened the inaugural meeting of ‘Residents for Childcare’ in Leonora and co-

ordinated the election of office bearers. GEDC subsequently assisted the group to prepare a Lotteries Commission funding application, the outcome of which is yet to be advised.

• Menzies Youth and Community Group was assisted to promote its inaugural ‘Menzies

Muster’ in 2001. The event was a great success and will again be staged in 2002. • GEDC assisted Esperance Volunteer Resource Centre to coordinate a capacity

building workshop for community groups. • Esperance Historical Society was assisted to source funding for a study into the history

of the Balladonia area, with guidance provided through the application process. • A GEDC officer is a member of the Esperance Business Expo Committee. • The Esperance office provided assistance to the Bay of Isles Aboriginal Corporation

including the sourcing of funding for a ‘business development planning day’ and advice in the preparation of a proposal for an International Indigenous Fishing Conference.

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Output 4 Regional Promotion Output Measures 2001/2002

Target 2001/2002

Actual Reasons for significant variation between Target and Actual

Quantity Chargeable Hours 4256 5582 A greater emphasis has been

placed on this output over the past twelve months

Kalgoorlie-Boulder Development Fund

1 1

Quality Customer satisfaction by client survey

85% 83%

Timeliness Project milestones by due date 80% 72% A number of project

milestones were not achieved by the due date, due to other project commitments and change in priorities

Cost Cost per hour $88 $89 Kalgoorlie-Boulder Development Fund

$53,000 $11,091 Difficult to estimate from which output the grant would be accessed.

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Organisational Structure

Finance & Administration AssistantTerri Alexander

Executive AssistantStephanie Fletcher

Manager - Corporate ServicesCraig Jerrard

Indigenous Economic Development OfficerChristine Boase

Manager - Infrastructure & PlanningRay Ciantar

Senior Project OfficerBill Mason

Senior Project Officer - Northern GoldfieldsAnnaliese Walster

Project OfficerVicki Bull

Manager - Policy & ProjectsAlison Roberts

Administration AssistantCassandra Haskett

Project OfficerLara McIntyre

Manager - Southern RegionRichard Grant

Chief Executive OfficerColin Purcell

GEDC Board of ManagementKath Finlayson - Chair Colin Stewart - Deputy Chair

plus 8 Members including CEO (ex-officio)

Hon Nick Griffiths MLCMinister for Racing and Gaming; Government Enterprises; Goldfields-Esperance

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Board of Management The Board of Management of the Goldfields Esperance Development Commission consists of the Chairman, Deputy Chairman and eight members, including the Chief Executive Officer (ex-officio). The Minister appoints the members of the board, which includes community and local government representatives, as well as Ministerial appointees. The Board is GEDC’s governing body and meets on a bi-monthly basis. It sets major policy directions, reviews progress on projects, determines budget priorities, approves major expenditure and advises the Minister on regional development issues, especially those relating to the Goldfields-Esperance region. Six board meetings were held in 2001-02. As at 30 June 2002, Board members were as follows: Kath Finlayson (Chairman) Local Government representative. Term expires August 2003. Meetings attended: 6 (6 possible) Mrs Finlayson is President of the Shire of Menzies. She and her husband John ran Jeedamya Station (between Menzies and Leonora) for twenty-seven years, but now live in Kalgoorlie-Boulder. Mrs Finlayson is Chairman of the Centre for the Management of Arid Environments at Curtin University in Kalgoorlie, and also a member of Curtin University’s Kalgoorlie Campus Council. She is also a member of the Remote and Rural Education Advisory Council and of the State Coordinating Committee for The Year of the Outback. A nurse by training, Kath was Chairman of the Northern Goldfields Health Service for eight years until June 2002. A former ABC Rural Woman of the Year for Western Australia, Kath was further honoured during June 2002 as a WA Citizen of The Year with the Governor’s Award for Regional Development. Colin Stewart (Deputy Chairman) Ministerial representative. Term expires December 2004. Meetings attended: 1 (3 possible) Mr Stewart is the CEO of the Esperance Port Authority and was the inaugural Deputy Chairperson of the Goldfields Esperance Development Authority from 1990-1993. Colin chairs the Southern Cross-Esperance Regional Minerals Study and is the Regional Port Representative on the WA Rail Advisory Council.

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Toni Hawkins Community representative. Term expires August 2003. Meetings attended: 4 (6 possible) Ms Hawkins was born in Kalgoorlie-Boulder and now lives in Esperance, where she is the Area Manager for a labour hire company. She is active in community, training, education and employment issues. Toni chairs the Esperance Port Development Consultative Committee and the Board of Our Lady Star of the Sea Primary School. Greg Hannah Community representative. Term expired 30 June 2002. Meetings attended: 5 (6 possible) Mr Hannah is an Associate with a national multi-disciplinary engineering firm. During the year his work took him to Perth, and he thus did not seek re-appointment to the GEDC board when his term expired in June 2002. Greg was the Goldfields representative on the Water Corporation’s Customer Advisory Committee and a member of the Kalgoorlie-Boulder Chamber of Commerce and Industry’s City and Regional Development Sub-Committee. Gary Lye Community representative. Term expires August 2003. Meetings attended: 5 (6 possible) Mr Lye is Manager Strategic Mine Development with Kalgoorlie Consolidated Gold Mines. During the year Gary coordinated a study into regional transport issues on behalf of the Chamber of Minerals and Energy (Eastern Regional Council), the Kalgoorlie-Boulder Chamber of Commerce and Industry and the City of Kalgoorlie-Boulder. He was also a member of the St Barbara’s Festival organising committee. Gary got to understand Outback Highway issues at first hand as a participant in the 2002 Just Cuts Outback Car Trek. Kado Muir Ministerial representative. Term expires December 2004. Meetings attended: 3 (3 possible) Now based in Kalgoorlie, but having lived in Leonora, Kado Muir understands issues facing small towns and Indigenous people. Kado, whose training is in anthropology, has business interests in media and publishing. He is also a Board Member of the Goldfields Area Consultative Committee.

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Sandra Trenowden Local Government representative. Term expires December 2004. Meetings attended: 3 (3 possible) Mrs Trenowden is the President of the Shire of Coolgardie and a member of the Australia Unlimited Taskforce. Sandra believes the development of local infrastructure and the expansion of community facilities and services will assist in the retention and attraction of people to the Region. The encouragement of investment into the Region, alternative industries and sustainable growth are areas in which Sandra has a special interest. Lynn Webb Local Government representative. Term expires December 2004. Meetings attended: 3 (3 possible) Mr Webb is President of the Shire of Dundas. A self-employed engineer, Lynn is committed to the tandem development of economic and social opportunities to ensure that a healthy community structure exists throughout the Region as industries develop. Training of young people and, in particular apprentices is an area that Lynn believes will impact on the long-term economic development, especially if businesses continue to be reluctant to take on apprentices. Ken O’Reilly Ministerial representative. Term expires December 2004. Meetings attended: 1 (2 possible) Mr O’Reilly recently moved to Kalgoorlie-Boulder from Laverton where he taught sport at the Laverton School. Ken was a Councillor of the Shire of Laverton for four years. His new job is as the Goldfields Education Officer with the Chamber of Minerals and Energy. Ken sees youth development and crime reduction paramount to the region’s development. The attraction and retention of teaching and health professionals, as well as the on-going effects of fly-in/fly-out, are other areas that Ken believes need to be addressed. Colin Purcell (ex-officio) Mr Purcell is the Chief Executive Officer of the Goldfields Esperance Development Commission.

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Members of the Board who resigned or retired during 2001-02 Dick Thorp (Deputy Chairman) Ministerial representative. Term expired October 2001. Meetings attended: 1 (2 possible) Mr Thorp is an Esperance real estate agent and farmer, a Board member of the Esperance Port Authority and associated with many local community organisations in the South East. Dick had served on the Goldfields Esperance Development Commission for six years. Patrick Hill Local Government representative. Term expired October 2001. Meetings attended: 3 (3 possible) An earthmoving contractor, Mr Hill is the Deputy President of the Shire of Laverton and Chairman of the Outback Highway Development Council. In the latter role he has dedicated himself to lobbying governments, especially the Commonwealth, in a bid to have funding allocated to upgrade the Outback Highway from Laverton in Western Australia, through Australia’s ‘Red Centre, to Winton in Queensland. Ian Mickel Ministerial representative. Retired in November 2001. Meetings attended: nil (2 possible) Mr Mickel retired from the Board in 2001. Ian was President of the Shire of Esperance between 1994-2001, and continues as a Shire Councillor. Between 1998-2000, he was President of the Country Shire Councils’ Association and was subsequently elected President of the WA Municipal Association (WAMA). Under Ian’s leadership, WAMA became the WA Local Government Association. Ian has lived in Esperance for 20 years and farms in the Condingup area. Dick Scallan Ministerial representative. Term expired October 2001. Meetings attended: 2 (3 possible) During the year Mr Scallan retired as Manager of AurionGold’s Kundana mine after an extensive career in both South Africa and Australia. Dick is now busier than ever as Chairman of a variety of high-profile organisations - the Mining Hall of Fame, Curtin University’s Kalgoorlie Campus Council, St Barbara’s Festival and the Goldfields Nursing Home Fundraising Campaign.

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Staff Chief Executive Officer Colin Purcell joined GEDC in May 1999 and was appointed to his substantive position in July 2000. Colin came to GEDC from the Bunbury Office of the Department of Commerce and Trade where he had been a Regional Trade Manager since 1991. Colin has a Bachelor of Arts Degree and a Diploma in Technology. In his spare time he plays golf and hockey, and enjoys scuba diving. Manager - Infrastructure and Planning Ray Ciantar joined GEDC in 1994 from ATSIC where he was the Regional Planning Officer in the Kalgoorlie office. He worked in the Northern Territory for ten years and prior to that spent five years overseas. Ray has a Bachelor of Arts Degree in the Social Sciences. He enjoys aero-modelling, travelling, reading, camping and spending time with his family. Manager - Policy and Projects Alison Roberts has been with GEDC since 1994, after working for the WA Fire and Rescue Service in its Training and Human Resources sections. She is currently studying towards a Bachelor of Arts Degree in History and Politics. Alison is actively involved as a co-ordinator of the AurionGold St Barbara’s Festival. Manager - Southern Region Richard Grant joined GEDC in January 2001, with a background in management planning, public relations and journalism. Richard was born and educated in Kalgoorlie, and has a Bachelor of Arts Degree from the University of WA. Richard is Commodore of the Esperance Bay Yacht Club and also enjoys fishing and camping. Manager - Corporate Services Craig Jerrard worked for Main Roads WA in Kalgoorlie, prior to joining GEDC in June 1998. Craig is Photo Finish Judge at the Kalgoorlie-Boulder Racing Club, and is currently studying a Bachelor of Commerce Degree through Curtin University. Senior Project Officer Bill Mason joined GEDC in 1995 having been Theatre Manager of the Goldfields Arts Centre in Kalgoorlie for three years. In May 1999 he was elected a Councillor of the City of Kalgoorlie-Boulder, where he is a member of numerous committees including Airport, Reconciliation and Audit. He chairs the Arts Committee.

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Senior Project Officer – Northern Goldfields Annaliese Walster joined GEDC in March 2001, and is based at the Northern Goldfields office in Leonora. Annaliese was formerly a Native Title Case Manager with the Department of Minerals and Energy. She has also worked for the Aboriginal Legal Service and a private heritage consultancy. Annaliese holds a Bachelor of Arts degree with Honours in Anthropology, and completed an MBA in 2001. Project Officer

Vicki Bull joined GEDC in 1998 and has lived in Kalgoorlie-Boulder since 1983, except for a period in 1999-00 when she was based at GEDC’s Esperance office. She has a Diploma in Human Resource Management and is currently studying towards a Masters in Regional Development through the University of Western Australia’s Institute of Regional Development. In her spare time she enjoys reading, gardening and keeping fit. Project Officer – Esperance Lara McIntyre joined GEDC’s Esperance office in November 2000 having previously worked in agriculture, private enterprise, Local Government and for the Department of Transport. Lara has lived in Esperance for 11 years and enjoys an active lifestyle, making full use of the sensational beaches and camping areas along the south coast. Aboriginal Economic Development Officer Christine Boase joined the Commission in August 2000, having moved to Kalgoorlie-Boulder earlier that year. She holds a Bachelor of Arts degree with a double major in History and English and has worked in private enterprise, an academic institution and in the retail and mining industry sectors. With her husband and daughter, she enjoys community activities and traveling around the Goldfields. Executive Assistant Stephanie Fletcher has worked for GEDC since July 1996. Her duties include executive support to the CEO, Chairman and Board. Stephanie’s three sons keep her busy, but she still finds time for sport, especially aerobics and netball. Finance & Administration Assistant Terri Alexander commenced with the Goldfields Esperance Development Commission in April 2002. Previously, she had been with the Main Roads Western Australia for 2½ years. She was born in Sydney and has lived in many parts of Australia and Papua New Guinea. She is married with two children and one grandchild. Administration Assistant Cassandra Haskett joined GEDC’s Esperance office in December 2001. Her previous position was with Co-operative Bulk Handling. Originally from Perth, Cassandra has spent the last eight years in the South East region and is heavily involved in the local sporting community currently playing netball, basketball and squash. She enjoys sailing in summer.

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ADMINISTRATIVE SERVICES Human Resource Management GEDC’s Human Resource Guidelines ensure that human resource activities within the organisation comply with Public Sector Standards. The areas covered by these Guidelines include recruitment, selection and appointment, transfer, secondment, performance management, redeployment, termination and discipline. GEDC has complied with Section 31(1) of the Public Sector Management Act in the administration of the organisation’s human resource management practices relating to the Public Sector Standards and the Code of Ethics and Conduct. As at 30 June 2002, GEDC operated with 12 staff, one more than the previous year. 2000/2001 2001/2002 Permanent full - time 8 9 Permanent part- time 1 1 Temporary/contract full-time 2 2 Temporary/contract part-time _0_ _0_ TOTAL 11 12 Public Sector Standards In 2001/2002 GEDC revised its Code of Conduct, which was originally released in 1996/97. The Code of Conduct assists employees to understand their rights, responsibilities and obligations in their respective roles within the organisation. The Code relies on staff taking responsibility for their own behaviour to ensure public sector standards for behaviour are not breached. GEDC’s Induction and Information Manual was updated during the year. It is issued to all new and existing staff members and provides information relating to administrative and human resource matters. The manual summarises information such as the organisation’s objectives and key activities, employment conditions, work ethics and grievance resolution procedures. A formal induction process is followed for all new Board members. The Board has its own written Code of Conduct, copies of which are distributed to all Board members. Industrial Relations GEDC’s 3rd Round Workplace Agreement expired in January 2002. The State Government proposed to restore parity in wages and employment conditions by introducing a new General Agreement. The State Government’s General Agreement was registered with the Industrial Commission with effect from 22 March 2002. It is anticipated that the GEDC staff that are currently employed on a Workplace Agreement will transfer to the General Agreement from 1 January 2003. 62

Staff Training and Development In 2001-02 GEDC staff participated in a number of training courses. An assessment of staff training needs is identified through individual Performance Improvement and Development Agreements. The GEDC expended 2.65% of payroll costs on staff training and development. Workers Compensation In compliance with Treasurer’s Instruction 903, GEDC is insured in respect of workers compensation, with no claims being recorded during the year. Records Management During 2001/2002 GEDC maintained a comprehensive records management system, which enabled documents to be linked to Outputs and ensured easy retrieval and management of all records. Publications GEDC issues a number of publications, which provide information on the development of the region, customer service and equity issues. During 2000-01 GEDC produced two videos, which are still available for sale - ‘Kalgoorlie-Boulder-It’s Your Sort of Place’ and the Australia Unlimited video, which promotes the whole Goldfields-Esperance region. GEDC also contributes to reports concerning the region published by other agencies. GEDC also maintains a web site at www.gedc.wa.gov.au. GEDC’s publications include: • Goldfields-Esperance Community Resource Manual • Goldfields-Esperance Regional Marketing Strategy • Goldfields-Esperance Economic Perspective • ‘Kalgoorlie-Boulder – It’s Your Sort of Place’ – video • Australia Unlimited - video • Esperance ‘Invest in the Dream’ - video • Newsletter • Client Survey • Disability Service Plan • GEDC and Australia Unlimited information brochures Declarations of Interest Contracts with Board Members or Senior Officers At the date of reporting, other than normal contracts of employment or service, no Board Member or Senior Officers, or firms of which Board Members or Senior Officers are members, or entities in which Members or Senior Officers have substantial interests, had any interests in existing or proposed contracts with the agency, Board Members or Senior Officers. Ministerial Directives No Ministerial directives were received during the year. 63

REPORT ON EQUITY, ACCESS AND CUSTOMER FOCUS Reports on Customer Outcomes Customer Focus Outcomes The five objectives for Regional Customer Service Delivery, and GEDC’s responses, are as follows • Regional Customers have equitable (in comparison to Perth) access to the services

provided. GEDC is headquartered in Kalgoorlie-Boulder, the regional centre of the Goldfields-Esperance region, with branch offices in Leonora and Esperance. GEDC believes that this geographic spread of offices provides customers with excellent access to its services. GEDC staff make regular visits to small and isolated communities in the region. • Regional customers are informed of the services available to them GEDC has a high public profile, which is achieved through media activity, the networking of Board members and staff in the community, and through formal and informal meetings with stakeholders in the region. A newsletter is published on a regular basis and is distributed throughout the region. It is also published on the GEDC web site, itself a valuable source of information about the activities of the agency. • The extent to which GEDC uses regional suppliers. GEDC uses local suppliers wherever possible, and where the goods or services offered are cost-competitive. The ‘Buy Local Policy’ is applied as appropriate. • The extent to which GEDC consulted with regional communities about the effect of

proposed changes to its activities GEDC’s Board members come from a number of different locations within the region. Information and opinions gained from their formal and informal contacts within their home communities can have a significant effect on their shaping of GEDC’s policies and activities. GEDC places particular store by its relationship with local government authorities in the region, particularly with local government CEOs. Regular meetings are held, at which time consultation takes place in respect of the GEDC’s activities. GEDC staff consult widely in their respective communities when implementing programs, and often amend strategies based on local attitudes and responses. The Australia Unlimited Taskforce includes representation from ten key stakeholder groups, and has four community members. • The extent to which GEDC supported local planning processes GEDC was proactive in encouraging local input into various planning processes. These included preparation of the draft Goldfields-Esperance Regional Water Strategy; community consultation on the possible Kalgoorlie rail realignment; convening a meeting of the human services agencies in Kalgoorlie-Boulder to share knowledge and information

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on the programs they deliver; the Golden Quest Discovery Trail and participating in a Mapping and Gap Analysis on Indigenous Services and Programs in the City of Kalgoorlie-Boulder. Disabilities Service Plan Outcomes In December 1995, GEDC prepared and adopted a Disabilities Service Plan, which ensures that people with disabilities can access the organisation’s services and facilities. The Plan recognises that people with disabilities are valued members of the community who contribute to social, economic and cultural life in a variety of ways. The Disability Service Plan is currently being reviewed to ensure that its outcomes meet current community expectations, with particular reference to the evolving priorities and needs of people with disabilities. This review is likely to recommend that GEDC staff participate in a training program to make them better aware of the needs of people with disabilities. People with physical disabilities can access GEDC’s three offices. Recommendations of the Disability Services Commission are reviewed by GEDC and are adhered to in respect of the production of publications and when organising public functions and consultations. Equal Employment Opportunity Outcomes In accordance with Section 145 of the Equal Opportunity Act (1984), GEDC has ensured that • All employees are issued with a formal copy of the Policy Statement on Equal

Opportunity in Employment • Information pertaining to Equal Opportunity in Employment is circulated to all

employees • Equal Employment Opportunity developments are known to employees, with comment

being sought from employees, as appropriate • All job advertisements contain non-discriminatory language, occupational titles and graphics an accurate statement of the duties to be performed no requests for unnecessary qualifications and/or prerequisites.

• Employees are selected and treated solely on the basis of their merit and abilities applicable to the position

• Policies and practices are administered and carried out in line with EEO principles • Employees are informed of their conditions of service • Disciplinary and counselling procedures are administered fairly • All employees are issued with a formal copy of the policy statement on ‘prevention of

harassment in the workplace’. 65

Cultural Diversity and Language Services Outcomes GEDC has not instigated any initiatives in respect of the Language Services Policy. Youth Outcomes Action: A State Government Plan for Young People, 2000-2003 was developed to ensure a whole of Government approach to youth affairs in Western Australia. Cabinet endorsed the Plan in October 2000. GEDC’s activities are designed to progress the ‘balanced social and economic development of the Goldfields-Esperance region’. Projects are designed to make long-term improvements to the region’s infrastructure, quality of life, educational and employment opportunities. Successful implementation (not necessarily by GEDC) of initiatives proposed in GEDC’s projects should benefit all people in the region, including young people. A number of GEDC’s projects and initiatives in 2001-02 had a specific youth focus. • Young Achievement Australia - In 2002 GEDC fostered a partnership between

schools in the region and Young Achievement Australia, an organisation that has a strong track record in ‘entrepreneurship education’. Participation in Young Achievement Australia gives secondary and tertiary students the opportunity to be exposed to the real world of business by actually establishing and operating their own company. Ten educational institutions in the Goldfields-Esperance region participated in YAA in 2002. GEDC assisted Young Achievement Australia’s activities in the Goldfields-Esperance region with grants from both the Kalgoorlie-Boulder Development Fund ($4950) and the Goldfields Esperance Regional Development Scheme ($11,550)

• Youth Driver Development Program - The Youth Driver Development Program is

committed to reducing the number of young people seriously injured and killed as a result of road crashes in WA. The program comprises a six-module driver-training for Year 11 students as they prepare to obtain a driver’s license. The program aims to develop sound attitudes towards driving and safety, while simultaneously teaching driving skills. GEDC supported this program with staff time and a grant from the Kalgoorlie-Boulder Development Scheme of $18,182.

• BIG hART – BIG hART organises arts based projects which aim to re-engage

marginalised people with their communities. BIG hART’s national ‘kNOT @ HOME’ project began in Kalgoorlie in May 2002 and has involved a series of workshops over four months in film, music, visual art and circus, sound production and editing. GEDC has assisted BIG hART by providing office space at no charge, as well as $18,000 funding from the Kalgoorlie-Boulder Development Fund.

66

Reports on Other Accountability Issues Information Statement On 1 November 1993, the Freedom of Information Act 1992 came into effect in Western Australia. The main aims of the Act for Government agencies are • To assist the public to obtain access to documents • To allow access to documents in a prompt manner and at the lowest reasonable cost • To assist the public to ensure that personal information contained in documents is

accurate, complete, up to date and not misleading. GEDC holds copies of ingoing and outgoing correspondence, internal reports, policies and the like. Most of GEDC’s publications are available at no charge, except the videos. GEDC’s Executive Assistant, Stephanie Fletcher is the designated FOI Officer. Applications for access to documents can be lodged at the GEDC head office, 377 Hannan St, Kalgoorlie. During 2001-02 no applications for access to documents under the Freedom of Information Act were received. Advertising and Sponsorship In compliance with section 175ZE of the Electoral Act 1907, GEDC is required to report on expenditure incurred during the financial year in relation to advertising agencies, market research organisations, polling organisations, direct mail organizations and media advertising organisations. The details of the report are as follows: Expenditure with Advertising Agencies Nil Expenditure with Market Research Agencies $3,366.00 Asset Research Expenditure with Polling Agencies Nil Expenditure with Direct Mail Agencies Nil Expenditure with Media Advertising Agencies $12,888.11 Marketforce Productions Hocking and Company West Australian Publications TOTAL EXPENDITURE $16,254.11 67

Compliance with Public Sector Management Act Section 31(1) 1. In the administration of the Goldfields Esperance Development Commission, I have

complied with the Public Sector Standards in Human Resource Management, the Western Australian Public Sector Code of Ethics and our Code of Conduct.

2. I have put in place procedures designed to ensure such compliance and conducted

appropriate internal assessments to satisfy myself that the statement made in 1 is correct.

3. The applications made for breach of standards review and the corresponding outcomes

for the reporting period are:

Number lodged: Nil Number of breaches found, including details of multiple breaches per application: Nil Number still under review: Nil

Colin Purcell Chief Executive Officer 28 August 2002

68

GOLDFIELDS-ESPERANCE – A PRODUCTIVE REGION The following key statistics provide an indication of the overall performance of the region’s economy. Gross Regional Product The Goldfields-Esperance region makes a vital contribution to the Western Australian economy with a GRP (Gross Regional Product at market prices) of $5.53 billion in 2000-01 representing 7.5% per cent of the Gross State Product. The Gross Regional Product of the Goldfields-Esperance Region in 2001-02 was the highest of any of Western Australia’s nine non-metropolitan regions. The South West Region had the next highest Gross Regional Product at $4.55 billion, almost $1 billion less than that of the Goldfields-Esperance Region. Gross Regional Product – Goldfields-Esperance region 1997-98 1998-99 1999-00 2000-01Preliminary GRP Estimates at Market Prices ($m) 4,123 4,284 4,735 5,530 Preliminary Nominal Growth Rate Estimates at Market Prices 6.5% 3.9% 10.5% 16.8% Preliminary GRP Estimates at Market Prices Adjusted for CPI ($m) 3,700 3,777 4,080 4,519 Preliminary Growth Rate Estimates at Market Prices Adjusted for CPI 6.8% 2.1%% 8.0% 10.8% Source: Data synthesised by the Department of Local Government and Regional Development from Australian Bureau of Statistics National Accounts data. Goldfields-Esperance Gross Regional ProductShare by Industry – 2000-01 Agriculture, Forestry and Fishing 2.9%Mining 70.8%Manufacturing 2.4%Electricity, Gas and Water 0.9%Construction 3.9%Wholesale 1.6%Retail 1.8%Accommodation, Cafes & Restaurants 1.0%Transport & Storage 2.5%Communication Services 0.9%Finance and Insurance 2.2%Property 3.6%Government 1.0%Education 1.2%Health and Community Services 2.1%Cultural and Recreational Services 0.3%Personal and Other Services 0.8%TOTAL 100% Source: Data synthesised by the Department of Local Government and Regional Development from Australian Bureau of Statistics National Accounts data.

69

Production by industry sector Mining and processing of mineral resources The resources industry dominates the economy in the northern and central parts of the Goldfields-Esperance region. The type, location and value of minerals production in the Goldfields-Esperance region for calendar year 2001 was as follows:

COMMODITY

LOCAL GOVERNMENT AREA VALUE (A$)

GOLDFIELDS-ESPERANCE

REGION VALUE (A$)

WA TOTAL VALUE (A$)

GOLDFIELDS-ESPERANCE

REGION % SHARE BY

VALUE Copper By-Product Coolgardie 11,038,628 Ravensthorpe 796,345 11,834,973 22,400,821 52.83% Gravel Coolgardie 263,768 263,768 1,131,146 23.32% Rock Dundas 657,735 Kalgoorlie-Boulder 394,757 1,052,492 1,944,452 54.13% Sand Coolgardie 836,581 Esperance 7,526 Kalgoorlie-Boulder 94,871 Leonora 116,520 Menzies 7,542 1,063,040 5,453,298 19.49% Granite Coolgardie 30,520 Dundas 156,016 186,536 194,886 95.72% Chrysoprase Kalgoorlie-Boulder 30,159 30,159 36,315 83.05% Gold Coolgardie 368,362,536 Dundas 67,983,905 Kalgoorlie-Boulder 785,581,243 Laverton 167,043,855 Leonora 720,828,083 Menzies 29,777,564 2,139,577,186 3,227,581,261 66.29% Gypsum Dundas 163,201 Ravensthorpe 60,994 224,195 22,968,576 0.98% Limesand-Limestone Dundas 2,748,750 Kalgoorlie-Boulder 1,688,153 4,436,903 14,411,291 30.79% NICKEL INDUSTRY Cobalt By-Product Coolgardie 43,999,063 Kalgoorlie-Boulder 11,497,274 Ravensthorpe 2,077,819 57,574,156 75,227,135 76.53% Cobalt Metal Kalgoorlie-Boulder 48,471,747 48,471,747 48,471,747 100.00% Cobalt Sulphide Coolgardie 3,132,504 Kalgoorlie-Boulder 15,729,109 18,861,613 18,861,613 100.00% TOTAL COBALT 124,907,516 142,560,495 87.62%

70

COMMODITY

LOCAL GOVERNMENT AREA VALUE (A$)

GOLDFIELDS-ESPERANCE

REGION VALUE (A$)

WA TOTAL VALUE (A$)

GOLDFIELDS-ESPERANCE

REGION % SHARE BY

VALUE Nickel Concentrates Coolgardie 194,732,498 Kalgoorlie-Boulder 248,047,183 Leonora 438,350,987 Ravensthorpe 49,196,503 930,327,171 1,678,601,322 55.42% Nickel Metal Kalgoorlie-Boulder 402,713,927 402,713,927 402,713,927 100.00% TOTAL NICKEL 1,333,041,098 2,081,315,249 64.05% Palladium By-Product Coolgardie 28,773,052 28,773,052 32,267,391 89.17% Platinum By-Product Coolgardie 5,302,472 5,302,472 5,302,472 100.00% TOTAL NICKEL INDUSTRY (inc cobalt, nickel, palladium and platinum)

1,492,024,138 2,261,445,607 65.98%

Salt Esperance 356,305 356,305 249,240,285 0.14% Silica - Silica Sand Coolgardie 97,267 97,267 5,579,428 1.74% Silver By-Product Coolgardie 64,140 64,140 29,017,565 0.22% TOTAL VALUE OF MINERALS PRODUCTION 3,651,211,102 5,841,404,931 62.51% The $3.65 billion value of the minerals industry in the Goldfields-Esperance region in 2001 was 14.4 per cent of the State’s total minerals and petroleum industry of $27.2 billion. In 2001 gold production in the region was valued at $2.14 billion, up from $1.89 billion in 2000. The region produced 66.3% of the State’s gold output in 2001. In 2001, the region’s nickel industry (including cobalt, nickel, palladium and platinum) was valued at $1.49 billion, down from $1.55 billion in 2000. Agriculture The region’s agricultural production was valued at $349.6 million in 2000. This compares with $315.7 million in 1998-99, and $322.2 million in 1997-98. Agricultural output in the Goldfields-Esperance region is mainly comprised of cereals, wool, grains and livestock. Fishing The region’s commercial fishing fleet principally works out of Esperance, with the catch including fin fish, crab, lobster and mollusc (mostly scallop and abalone). In 2000-01 mollusc dominated the value of the fishing catch, which overall was estimated at $18.8 million, compared with $18.2 million in 1999-00 and $11.3 million in 1998-99. 71

Timber Sandalwood is the most valuable timber harvested in the region, with export income estimated at approximately $7.5 million annually. Plantation and on-farm forestry enterprises are developing in the South East. In the Goldfields the local timber is noted for its density. The wood is used in applications as diverse as parquetry flooring and musical instrument manufacturing, especially string and woodwind instruments. Manufacturing Manufacturing turnover was $699 million in 1999-00, down from $830.2 million in 1998-99 and $795.3 million in 1997-98. Tourism In 2001, there were 318,000 domestic visitors to the Goldfields (2000: 290,000). In the South East there were 204,000 domestic arrivals in 2001 (2000: 132,000). These figures were sourced by the WA Tourism Commission from the Bureau of Tourism Research’s National Visitor Survey. Many in the tourism industry are dubious of the validity of the reported 54.5% increase in visitor numbers for the South East. Construction Non-Residential Building Approvals Total non-residential building approvals in the Goldfields-Esperance Region in the December 2001 quarter were valued at $4.4 million. This represented an increase of 31.5% over the previous quarter when building approvals were valued at $3.3million. When the December 2001 quarter is compared to the same quarter in 2000, non-residential building approvals in the Goldfields-Esperance region grew by 15.8%, compared to 30.9% decline for regional Western Australia and 22.6% growth for the State. Residential Building Approvals Total residential building approvals in the Goldfields-Esperance Region in the December 2001 quarter were valued at $6.89 million. This represented a decrease of 23.5% from the previous quarter when building approvals were valued at $9 million. When the December 2001 quarter is compared to the same quarter in 2000, the value of residential building approvals in the Goldfields-Esperance Region decreased by 7.9%, compared to 70.5% growth for Regional Western Australia and 45.8% growth for the State. EMPLOYMENT AND UNEMPLOYMENT Total employment in the Goldfields-Esperance Region in the December 2001 quarter was 30,950 people. When this period is compared with the December 2000 quarter, employment in the Goldfields Esperance region grew by 0.7%, compared with 0.9% growth for regional Western Australia and 1.2% growth for the State. In the December 2001 quarter there were 1563 unemployed people in the Goldfields- 72

Esperance region, compared with 1217 unemployed people in the December 2000 quarter. The unemployment rate for the Goldfields-Esperance Region for the December 2001 quarter was 4.8%, compared to 5.6% for regional Western Australia. The largest employment sectors in the region are mining, retail trade and construction. These three sectors combined employed 10871 people in 1996 or 40.7 per cent of the region’s total workforce. DEMOGRAPHY Population The Goldfields-Esperance region had an Estimated Resident Population (ERP) of 55,255 at June 2001. By comparison ERP in 1996 was 56,411 and 52,622 in 1991. The region’s resident population decreased at an average annual rate of 0.4% per annum from 1996 to 2001. Between 1991-1996 the average annual rate of increase was 1.4%. Population numbers in the Goldfields-Esperance region are principally driven by employment, especially in the Goldfields sub-region. Estimated Resident Population figures differ from Census numbers, in that the Census provided a count of all people in any given location on Census night in August 2001. In locations (such as Leonora) where there is a significant ‘Fly-in/Fly-out’ workforce associated with the mining industry the ‘Census count’ was significantly greater than Estimated Resident Population. Population Distribution Kalgoorlie-Boulder is the region’s principal economic centre. In 2001 the City of Kalgoorlie-Boulder (combined urban and non-urban) had an Estimated Resident Population of 29,735 or 53.8% of the region’s total population. Esperance is the major sub-regional centre with a 2001 Estimated Resident Population of 13,319, or 24.1% of the total population of the region. Local Government 1991 1996 2001 Authority Coolgardie 5824 5651 4301 Dundas 1754 1653 1247 Esperance 11078 12300 13319 Kalgoorlie-Boulder 26865 29587 29735 Laverton 1702 1214 1246 Leonora 2518 2774 1986 Menzies 268 354 353 Ngaanyatjarraku 1203 1445 1545 Ravensthorpe 1410 1433 1523 TOTAL 52,622 56,411 55,255 Source: Australian Bureau of Statistics, Regional Population Growth, 3218.0

73

Certification of Performance Indicators We hereby certify that the performance indicators are based on proper records, are relevant and appropriate for assisting users to assess the Goldfields Esperance Development Commission’s performance, and fairly represent the performance of the Goldfields Esperance Development Commission for the financial year ended 30 June 2002.

Kath Finlayson Chairman

Colin Purcell Chief Executive Officer 28 August 2002

74

KEY PERFORMANCE INDICATORS GEDC has developed an outcome for the organisation, which is: An environment which is conducive to the balanced economic and social development of the Goldfields- Esperance region Efficiency Indicators To achieve its outcome, GEDC’s activities are based on the following Key Outputs:

OUTPUT 1 Policies, Strategies and Plans

2001/2002 Target

2001/2002 Actual

Reason for Significant Variation between 2001/2002 Target and 2001/2002 Actual

Comparative 2000/2001 Actual

Reason for Significant Variation between 2000/2001 Actual and 2001/2002 Actual

Cost per Hour $106 $99 $90

OUTPUT 2 Industry and Enterprise

DevelopmentIn 2000/2001 the increase in hourly rate is

Cost per Hour $106 $100 $160 due to the funding of the Tourism Strategyand the Industry Development Centre.

OUTPUT 3 Coordination of Infrastructure

IdentificationThe majority of costs related to this output have

Cost per Hour $112 $82 been employee expenses rather than high cost $144 Same reason for variationproject expenditure.

OUTPUT 4 Regional Promotion

Cost per Hour $88 $89 $94

The calculation of Cost per hour is based on the Total Cost of Output divided by chargeable hours. Chargeable hours are determined by project output hours allocated on staff electronic timesheets and the identification of Board and Consultants purchased hours.

Effectiveness Indicators GEDC recognises that its most accurate measure of its performance against this outcome is through the surveying of its clients and equating effectiveness with client satisfaction. GEDC commissioned Asset Research to conduct a client survey in April 2002. A questionnaire was mailed to a list of 300 clients the GEDC had dealings with in the past twelve months. A total of 181 questionnaires were returned - a 60.3% response rate. The respondents were asked, inter alia, to what extent they agreed with the following statements:

1. That the Goldfields Esperance Development Commission has contributed to the economic development of the region within the last 12 months.

2. That the Goldfields Esperance Development Commission has contributed to the

social development of the region within the past 12 months.

3. That the Goldfields Esperance Development Commission contributes to the creation of balanced economic and social development with the region.

75

The following table shows the results of the 2002 client satisfaction survey, with comparative figures from 2001, 2000, 1999 and 1998. There were no significant changes in clients’ perceptions of GEDC’s contribution to economic development, social development or the balance between the two.

69

7065

60

63

626664

6768

7675

7482

77

21

1722

33

24

2924

24

2620

1916

1612

15

10

1313

7

13

91012

712

59

1068

0% 20% 40% 60% 80% 100%

1998

1999

2000

2001

2002

1998

1999

2000

2001

2002

1998

1999

2000

2001

2002

< % of respondents >

Agree Neutral Disagree

Contribution to economic development of the region

Contribution to the social development of the region

Contribution to balanced economic and social development

76

Certification of Financial Statements The accompanying financial statements of the Goldfields Esperance Development Commission have been prepared in compliance with the provisions of the Financial Administration and Audit Act 1985 from proper accounts and records to present fairly the financial transactions for the period ending 30 June 2002 and the financial position as at 30 June 2002. At the date of signing, we are not aware of any circumstances that would render the particulars included in the financial statements misleading or inaccurate.

Kath Finlayson Chairman

Colin Purcell Chief Executive Officer

Craig Jerrard Principal Accounting Officer 28 August 2002

77

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

STATEMENT OF FINANCIAL PERFORMANCE for the year ended 30 June 2002 NOTE 2001/2002 2000/2001 $ $ COST OF SERVICES

Expenses from Ordinary Activities Employee Expenses 2 909,825 818,616 Supplies & Services 3 464,935 454,654 Depreciation Expenses 4 21,129 10,420 Administration Expenses 5 164,738 207,209 Accommodation Expenses 6 152,865 149,134 Grants and Subsidies 7 220,216 470,148 Capital User Charge 8 14,683 - Net Loss on disposal of non-current assets 12 769 -

TOTAL COST OF SERVICES 1,949,160 2,110,181

Revenues from Ordinary Activities User charges and fees 9 3,753 7,171 Commonwealth grants and contributions 10 57,500 - Other revenues from ordinary activities 11 247,899 416,329

TOTAL REVENUES FROM ORDINARY ACTIVITES 309,152 423,500

NET COST OF SERVICES 1,640,008 1,686,681 REVENUES FROM GOVERNMENT 13 Output appropriation (I) 1,555,000 1,627,000 Resources received free of charge 9,000 8,500

TOTAL REVENUES FROM GOVERNMENT 1,564,000 1,635,500

CHANGE IN NET ASSETS (76,008) (51,181)

TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING

FROM TRANSACTIONS WITH WA STATE GOVERNMENT AS OWNERS (76,008) (51,181) (I) Appropriation included capital in 2000/2001 The Statement of Financial Performance should be read in conjunction with the accompanying notes.

78

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

STATEMENT OF FINANCIAL POSITION as at 30 June 2002 NOTE 2001/2002 2000/2001 $ $ CURRENT ASSETS Cash Assets 23 285,943 352,748 Receivables 14 10,687 103,449 Other Assets 16 9,603 4,399

TOTAL CURRENT ASSETS 306,233 460,596

NON-CURRENT ASSETS Amounts receivable for outputs 15 48,000 - Property, plant, equipment and vehicles 17 53,246 26,728 Works of Art 18 982 982

TOTAL NON-CURRENT ASSETS 102,228 27,710

TOTAL ASSETS 408,461 488,306 CURRENT LIABILITIES Payables 19 36,669 55,629 Provisions 20 124,796 90,923 Other liabilities 21 14,516 18,261

TOTAL CURRENT LIABILITIES 175,981 164,813

NON-CURRENT LIABILITIES Provisions 20 29,423 44,428

TOTAL NON-CURRENT LIABILITIES 29,423 44,428

TOTAL LIABILITIES 205,404 209,241

NET ASSETS 203,057 279,065

EQUITY 22

Accumulated surplus / (deficiency) 203,057 279,065

TOTAL EQUITY 203,057 279,065 The Statement of Financial Position should be read in conjunction with the accompanying notes.

79

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

STATEMENT OF CASH FLOWS for the year ended 30 June 2002 NOTE 2001/2002 2000/2001 $ $ INFLOWS INFLOWS (OUTFLOWS) (OUTFLOWS) CASH FLOWS FROM GOVERNMENT Output appropriations 1,507,000 1,317,000 Capital appropriations (2000-01 appropriation) - 310,000

NET CASH PROVIDED BY GOVERNMENT 1,507,000 1,627,000 Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee Costs (885,311) (759,725) Supplies and Services (479,781) (458,854) Capital User Charge (14,683) - GST payments on purchases (114,789) (125,982) GST payments to taxation authority - - Other Payments (529,989) (820,601) Receipts Sale of goods and services 315,153 373,649 User charges and fees 3,753 7171 Commonwealth grants and contributions 57,500 - GST receipts from sales 31,974 25,189 GST receipts from taxation authority 90,784 89,824 Other receipts - -

NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES 23(c) (1,525,389) (1,669,329) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of non-current physical assets (48,416) (15,909)

NET CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES (48,416) (15,909)

NET INCREASE / (DECREASE) IN CASH HELD (66,805) (58,238)

Cash assets at the beginning of the financial year 352,748 410,986

CASH ASSETS AT THE END OF THE FINANCIAL YEAR 23(a) 285,943 352,748

80The Statement of Cash Flows should be read in conjunction with the accompanying notes.

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002

1. Significant accounting policies

The following accounting policies have been adopted in the preparation of the financial statements. Unless otherwise stated these policies are consistent with those adopted in the previous year.

General Statement

The financial statements constitute a general-purpose financial report, which has been prepared in accordance with Australian Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of Australian Accounting Standards Board and Urgent Issues Group (UIG) Consensus Views as applied by the Treasurer’s Instructions. Several of these are modified by the Treasurer’s Instructions to vary application, disclosure, format and wording. The Financial Administration and Audit Act and the Treasurer’s Instructions are legislative provisions governing the preparation of financial statements and take precedence over Australian Accounting Standards, Statements of Accounting Concepts and other authoritative pronouncements of Australian Accounting Standards Board and UIG Consensus Views. The modifications are intended to fulfil the requirements of general application to the public sector together with the need for greater disclosure and also to satisfy accountability requirements. If any such modification has a material or significant financial effect upon the reported results, details of that modification and where practicable, the resulting financial effect, are disclosed in individual notes to these financial statements. The statements have been prepared on the accrual basis of accounting using the historical cost convention.

(a) Output Appropriations

Output Appropriations are recognised as revenues in the period in which the Authority gains control of the appropriated funds. The Authority gains control of appropriated funds at the time those funds are deposited into the Authority’s bank account or credited to the holding account held at the Department of Treasury and Finance

(b) Contributed Equity

Under UIG38 “Contributions by Owners Made to Wholly-Owned Public Sector Entities” transfers in the nature of equity contributions must be designated by the Government (owners) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions in the financial statements. Capital contributions (appropriations) have been designated as contributions by owners and have been credited directly to Contributed Equity in the Statement of Financial Position. All other transfers have been recognised in the Statement of Financial Performance. Prior to the current reporting period, capital appropriations were recognised as revenue in the Statement of Financial Performance. Capital appropriations which are repayable to the Treasurer are recognised as liabilities.

81

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002

(c) Grants and Other Contributions Revenue

Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Authority obtains control over the assets comprising the contributions. Control is normally obtained upon their receipt.

Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

(d) Revenue Recognition

Revenue from the sale of goods and disposal of other assets and the rendering of services is recognised when the Authority has passed control of goods or other assets or delivery of the service to the customer.

(e) Acquisition of assets

The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up of liabilities undertaken at the date of acquisition plus incidental costs directly attributed to the acquisition.

Assets acquired at no cost or for nominal consideration, are initially recognised at their fair value at the date of acquisition

(f) Depreciation of non-current assets

All non-current assets having a limited useful life are systematically depreciated over their useful lives in a manner, which reflects the consumption of their future economic benefits. Depreciation is provided for on the straight-line basis, using rates which are reviewed annually. Useful lives for each class of depreciable asset are: Plant and equipment 6 to 7 years Office equipment 6 to 7 years Computing equipment 3 to 4 years

Works of art controlled by the Authority are classified as heritage assets. They are anticipated to have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. As such, no amount for depreciation has been recognised in respect of them.

82

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002

(g) Leases

The Authority has entered into a number of operating lease arrangements for the rent of the office building where the lessor effectively retains all of the risks and benefits incident to ownership of the items held under the operating leases. Equal instalments of the lease payments are charged to the Statement of Financial Performance over the lease term, as this is representative of the pattern of benefits to be derived from the leased property.

(h) Cash

For the purpose of the Statement of Cash Flows, cash includes cash assets and restricted cash assets. These include short-term deposits that are readily convertible to cash on hand and are subject to insignificant risk of changes in value.

(i) Receivables

Receivables are recognised at the amounts receivable, as they are due for settlement no more than 30 days from the date of recognition.

Collectability of accounts receivable is reviewed on an ongoing basis. Debts, which are known

to be uncollectable, are written off. A provision for doubtful debts is raised where some doubts as to collection exists and in any event where the debt is more than 60 days overdue.

(j) Payables

Payables, including accruals not yet billed, are recognised when the Authority becomes obliged to make future payments as a result of a purchase of assets or services. Accounts Payable are generally settled within 30 days.

(k) Employee entitlements

Annual leave

This entitlement is recognised at current remuneration rates and is measured at the amount unpaid at the reporting date in respect to employees’ service up to that date.

Long service leave

A liability for long service leave is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given, when assessing expected future payments, to expected future wage and salary levels including relevant on costs, experience of employee departures and periods of service. Expected future payments are discounted using interest rates to obtain the estimated future cash outflows.

83

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 Superannuation

Staff may contribute to the Pension Scheme, a defined benefits pension scheme now closed to new members, or to the Gold State Superannuation Scheme, a defined benefit lump sum scheme now also closed to new members. All staff who do not contribute to either of these schemes become non-contributory members of the West State Superannuation Scheme, an accumulation fund complying with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. All of these schemes are administered by the Government Employees Superannuation Board (GESB). The liabilities for superannuation charges under the Gold State Superannuation Scheme and West State Superannuation Scheme are extinguished by payment of employer contributions to the Government Employees Superannuation Board.

The note disclosure required by paragraph 51(e) of AAS 30 (being the employer’s share of the difference between employees’ accrued superannuation benefits and the attributable net market value of plan assets) has not been provided. State scheme deficiencies are recognised by the State in its whole of government reporting. The Government Employees Superannuation Board’s records are not structured to provide the information for the Authority. Accordingly, deriving the information for the Authority is impractical under current arrangements, and thus any benefits thereof would be exceeded by the cost of obtaining the information.

(l) Accrued Salaries

Accrued salaries (refer note 21) represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay period for that financial year does not coincide with the end of the financial year. The Authority considers the carrying amount approximates net fair value.

(m) Resources received free of charge or for Nominal Value Resources received free of charge or for nominal value which can be reliably measured, are

recognised as revenues and as assets or expenses as appropriated at fair value. (n) Comparative Figures Comparative figures are, where appropriate, reclassified so as to be comparable with the figures

presented in the current financial year. (o) Rounding Amounts in the financial statements have been rounded to the nearest dollar.

84

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 2001/2002 2000/2001 $ $

2 EMPLOYEE EXPENSES Wages and Salaries 713,336 610,500 Superannuation 66,702 64,168 Other related expenses (I) 129,787 143,948

909,825 818,616 (I) These employee expenses include superannuation, WorkCover premiums and other employment on-costs

associated with the recognition of annual and long service leave liability. The related on-costs liability is included in employee entitlements liabilities at Note 20.

3 SUPPLIES AND SERVICES Consultants and Contractors 218,755 191,514 Materials 15,142 15,729 Travel 37,916 34,086 Other 193,122 213,325

464,935 454,654 4 DEPRECIATION EXPENSES Plant, equipment and vehicles 21,129 10,420 Total Depreciation 21,129 10,420 5 ADMINISTRATION EXPENSES Communication 38,261 39,342 Consumables 25,174 29,002 Maintenance 13,403 16,255 Other costs 87,900 122,610 164,738 207,209 6 ACCOMMODATION EXPENSES Lease Rentals 123,760 120,786 Repairs & maintenance 2,851 7,090 Cleaning 7,830 7,407 Other 18,424 13,851

152,865 149,134 85

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 2001/2002 2000/2001 $ $ 7 GRANTS & SUBSIDIES Recurrent BIGhART 9,000 - Festival of the Wind 6,136 - Leonora Gwalia Historical Museum 31,818 - Esperance Organised Primary Producers 5,000 - Goldfields Land and Sea Council 27,272 - St Mary’s Catholic Church 20,905 - Department of Indigenous Affairs 19,221 - Chamber of Minerals and Energy 9,091 - Esperance Onward 2000 - 6,000 Shire of Laverton - 10,000 Shire of Coolgardie 27,273 5,000 Shire of Ravensthorpe - 12,000 Shire of Gnowangerup - 5,000 Curtin University of Technology - 3,500 City of Kalgoorlie-Boulder 2,000 15,000 Friends of Music - 8,648 Country Arts WA - 5,000 Capital Shire of Menzies 62,500 - Shire of Ngaanyatjarraku - 300,000 Edith Cowan University - 100,000

220,216 470,148 8 CAPITAL USER CHARGE 14,683 -

A capital user charge rate of 8% has been set by the Government for 2001-02 and represents the opportunity

cost of capital invested in the net assets of the Authority used in the provision of outputs. The charge is calculated on the net assets adjusted to take account of exempt assets. Payments are made to the Department of Treasury and Finance on a quarterly basis

9 USER CHARGES AND FEES User Charges 1,253 3,080 Fees 2,500 4,091

3,753 7,171 10 COMMONWEALTH GRANTS AND CONTRIBUTIONS Department of Employment, Workplace Relations and Small Business 57,500 -

57,500 -

86

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 2001/2002 2000/2001 $ $ 11 OTHER REVENUES FROM ORDINARY ACTIVITIES Department of Industry and Technology formally (Department of Commerce and Trade) 110,746 233,000 Recoupment of costs 137,153 183,329

247,899 416,329 12 NET PROFIT/(LOSSES) ON DISPOSAL OF NON-CURRENT ASSETS Loss on disposal of Non-current assets Office Equipment 769 - Gross proceeds on disposal of office equipment - -

769 - 13 REVENUES (TO)/FROM GOVERNMENT Appropriation revenue received during the year: Output appropriations (I) 1,555,000 1,317,000 Capital appropriations (II) - 310,000 1,555,000 1,627,000 Resources received free of charge (III) Determined on the basis of the following estimates provided by agencies: Office of the Auditor General 9,000 8,500 9,000 8,500 (I) Output appropriations are accrual amounts as from 1 July 2001, reflecting the full price paid for outputs

purchased by the Government. The appropriation revenue comprises a cash component and a receivable(asset). The receivable(holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year.

(II) Capital appropriations were revenue in 2001 (year ended 30 June 2001). From 1 July 2001, capital appropriations, termed Capital Contributions, have been designated as contributions by owners and are credited straight to equity in the Statement of Financial Position.

(III) Where assets or services have been received free of charge or for nominal consideration, the authority recognises revenues equivalent to the fair value of the assets and/or the fair value of those services that can be reliably determined and which would have been purchased if not donated, and those fair values shall be recognised as assets or expenses, as applicable.

14 RECEIVABLES Current Trade Debtors 3,443 91,305 GST Receivable 7,244 12,144 10,687 103,449

87

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 2001/2002 2000/2001 $ $ 15 AMOUNTS RECEIVABLE FOR OUTPUTS Non-current 48,000 - 48,000 16 OTHER ASSETS Current Prepayments 9,603 4,399 9,603 4,399 17 PROPERTY, PLANT, EQUIPMENT AND VEHICLES Furniture & Fittings At cost 12,202 9,052 Accumulated Depreciation (9,019) (8,370)

3,183 682 Office Equipment At cost 13,130 25,865 Accumulated Depreciation (8,958) (19,176)

4,172 6,689 Computer Hardware At cost 53,804 18,465 Accumulated Depreciation (22,628) (10,919)

31,175 7,546 Computer Software At cost 56,971 48,409 Accumulated Depreciation (47,864) (42,003)

9,107 6,406 Communications Equipment At cost 9,435 12,393 Accumulated Depreciation (3,827) (6,988)

5,608 5,405 53,245 26,728

88

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 17 PROPERTY, PLANT, EQUIPMENT AND VEHICLES (Con’t) Reconciliations Reconciliations of the carrying amounts of property, plant, equipment and vehicles at the beginning and end of

the current financial year are set out below.

2001/2002 Furniture & Fittings

$

Office Equipment $

Computer Hardware $

Computer Software

$

Communications Equipment

$

Total

$ Carrying amount at the start of year 682 6,689 7,547 6,407 5,405 26,730 Additions 3,150 - 35,338 8,562 1,363 48,413 Written off assets - (769) - - - (769) Depreciation (649) (1,748) (11,710) (5,861) (1,160) (21,129) Carrying amount at the end of year 3,183 4,172 31,175 9,107 5,608 53,245

2001/2002 2000/2001 $ $ 18 WORKS OF ART At cost 1,700 1,700 Accumulated Depreciation (718) (718)

982 982 19 PAYABLES Current Trade Payables 34,126 54,777 GST Payable 2,543 852 36,669 55,629 20 PROVISIONS Current Annual Leave 44,840 44,513 Long Service Leave 68,007 36,897 Other (I) 11,949 9,513

124,796 90,923

89

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 2001/2002 2000/2001 $ $ 20 PROVISIONS (con’t) Non - current Long Service Leave 26,912 39,403 Other (I) 2,511 5,025

29,423 44,428 (I) The settlement of annual leave and long service leave liabilities gives rise to the payment of employment on-

costs including superannuation. The liability for such on-costs is included here. The associated expense is included under Other related expenses (under Employee expenses) at Note 2.

Employee Entitlements The aggregated employee entitlement liability recognised and included in the financial statements is as follows: Provision for employee entitlements: Current 124,796 90,923 Non-current 29,423 44,428 154,219 135,351 21 OTHER LIABILITES Current

Accrued expenses 1,206 5,501 Accrued salaries 13,309 12,760 14,515 18,261 22 EQUITY Accumulated surplus / (deficiency) Opening balance 279,065 330,246 Change in net assets (76,008) (51,181) Closing balance 203,057 279,065

90

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 2001/2002 2000/2001 $ $ 23 NOTES TO THE STATEMENT OF CASH FLOWS (a) Reconciliation of cash Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items

in the Statement of Financial Positions as follows: Cash assets 285,943 352,748 285,943 352,748 (b) Non-cash financing and investing activities During the financial year, there were no assets/liabilities transferred/ assumed from other government agencies

not reflected in the Statement of Cash Flows. (c) Reconciliation of net cost of service to net cash flows provided by/(used in) operating activities. Net cost of services (1,640,008) (1,686,681) Non cash items: Depreciation expense 21,129 10,420 Resources received free of charge 9,000 8,500 (Profit)/loss on disposal of property, plant and equipment 769 - (Increase)/decrease in assets: Current receivables 87,862 (64,452) Other current assets (5,204) 3,333 Increase/(decrease) in liabilities: Current payables (20,651) 4,987 Current provisions 33,873 35,693 Other current liabilities (3,745) 6,035 Non-current provisions (15,005) 23,288 Net GST receipts/(payments) 7,969 (10,969) Change in GST in receivables/payables (1,378) 517 Net cash provided by/(used in) operating activities (1,525,389) (1,669,329) (d) At the reporting date, the Authority had fully drawn on all financing facilities, details of which are disclosed in the

financial statements.

91

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 2001/2002 2000/2001 $ $ 24 COMMITMENTS FOR EXPENDITURE

(a) Capital expenditure commitments Capital expenditure commitments, being contracted capital expenditure additional to the amounts reported in the financial statements, are payable as follows: Within 1 year - 110,000 Later than 1 year and not later than 5 years - - Later than 5 years - - - 110,000 (b) Non-cancellable operating lease commitments Within 1 year 21,868 19,640 Later than 1 year and not later than 5 years 12,881 28,980 Later than 5 years - - 34,749 48,620 25 CONTINGENT LIABILITIES There were no known contingent liabilities as at year ended 30 June 2002. 26 EVENTS OCCURRING AFTER THE REPORT DATE There were no significant events that occurred after year ended 30 June 2002.

92

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 27 EXPLANATORY STATEMENT (i) Significant variations between the actual revenues and expenditures for the financial year and revenues and

expenditures for the immediately preceding financial year. Details and reasons for significant variations between actual results with the corresponding items of the

preceding year are detailed below. Significant variations are considered those greater than 10% and over $15,000

2001/2002 2000/2001 Variance Variance

$ $ $ % Administration Expense 164,738 207,209 (42,471) (20%) Grants and Subsidies 220,216 470,148 (249,932) (53%) Commonwealth grants and contributions 57,500 - 57,500 100% Other Revenue from ordinary activities 247,899 416,329 (168,430) (40%) Administration Expense Savings were made through a reduction in advertising, consultants and travel expenses. Savings were also made through purchasing IT equipment (through a capital appropriation) rather than leasing. Grants and Subsidies In 2000/2001, $400,000 of capital works grants were issued for the Ngaanyatjarra Cultural and Civic Centre and the Centre for Further and Higher Education. Commonwealth grants and contributions The Commission attracted $57,500 in 2001/2002 from the Department of Employment, Workplace Relations and Small Business for the Golden Quest Drive Trail. Other Revenue from ordinary activities In 2000/2001 the Commission received revenue from the Department of Industry and Technology (formally the Department of Commerce and Trade) for various projects including Heritage Trails, Indigenous Economic Development and funding the Regional Initiatives Fund.

93

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 (ii) Significant variations between estimates and actual results for the financial year Details and reasons for significant variations between estimates and actual results are detailed below. Significant

variations are considered those greater than 10% and over $15,000. 2001/2002 2001/2002 Variance Variance Actual Estimates $ $ $ % Supplies & Services 464,935 555,000 (90,065) (16%) Administration Expense 164,738 95,000 69,738 73% Grants and Subsidies 220,216 313,000 (92,784) (30%) Supplies and Services & Administration Expenses The allocation of expenses into expenditure items, differs between the Treasury Information Management System (used for Budget Statements) and the Model Financial Statements causing an discrepancy in the figures between Supplies & Services and Administration expenses. Grants and Subsidies The Commission overestimated the amount of grants funds it would issue during the 2001/2002 financial year. 28 FINANCIAL INSTRUMENTS

(a) Interest Rate Risk Exposure The entity’s exposure to interest rate risk is nil as the funds invested with Treasury are not subject to interest rates.

(b) Credit Rate Exposure The credit risk on financial assets of the economic entity, which have been recognised on the Statement of Financial Position, is generally a carrying amount, net of any provision for doubtful debts.

(c) Net fair value The carrying amount of financial assets and financial liabilities recorded in the financial statements are not materially different from their net fair values, determined in accordance with the accounting policies disclosed in note 1 to the financial statements.

94

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION

NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 29 REMUNERATION OF MEMBERS OF THE ACCOUNTABLE AUTHORITY AND SENIOR OFFICERS Remuneration of Members of the Accountable Authority The number of members of the Accountable Authority, who's total of fees, salaries, superannuation and other

benefits for the financial year, fall within the following bands are:

$ 2001/2002 2000/2001 0 – 10,000 12 6 10,001 – 20,000 - 1 20,001 – 30,000 1 - Total remuneration of the members of the Accountable Authority is: 39,540 33,899 The superannuation included here represents the superannuation expense incurred by the Authority in respect of members of the Accountable Authority. No members of the Accountable Authority are members of the Pension Scheme. Remuneration of Senior Officers The number of Senior Officers, other than senior officers reported as members of the Accountable Authority, whose total of fees, salaries, superannuation and other benefits for the financial year, fall within the following bands are: $ 2001/2002 2000/2001 50,001 – 60,000 - 1 60,001 – 70,000 2 2 70,001 – 80,000 1 1 80,001 – 90,000 1 - 90,001 – 100,000 - 1 100,001 – 110,000 - - 110,001 – 120,000 1 -

Total remuneration of senior officers is: 394,979 379,098

The superannuation included here represents the superannuation expense incurred by the Authority in respect of Senior Officer other than senior officers reported as members of the Accountable Authority

No Senior Officers are members of the Pension Scheme. 95

GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2002 29 OUTPUT INFORMATION

Policies, Strategies and Plans Industry and Enterprise Development

Co-ordination of Infrastructure Identification

Regional Promotion Total

2001/2002

2000/2001 2001/2002 2000/2001 2001/2002 2000/2001 2001/2002 2000/2001 2001/2002 2000/2001 $ $ $ $ $ $ $ $ $ $COST OF SERVICES Expenses from Ordinary Activities Employee Expenses 322,761 201,750 270,280 209,518 70,880 151,306 245,904 256,042 909,825 818,616Supplies and Services 144,933 67,634 166,327 243,253 11,220 25,767 142,455 118,000 464,935 454,654Depreciation expenses 6,123 3,019 8,126 4,008 113 56 6,767 3,337 21,129 10,420Administration Expenses 51,353 34,565 58,934 137,889 3,976 7,067 50,475 27,689 164,738 207,209Accommodation Expenses 47,652 59,289 54,686 54,553 3,689 5,203 46,837 30,089 152,865 149,134Grants and Subsidies 62,500 11,000 61,723 308,500 51,494 42,000 44,500 108,648 220,216 470,148Capital User Charge 4,255 - 5,647 - 78 - 4,703 - 14,683 -Net Loss on disposal of non-current assets 223 - 296 - 4 - 246 - 769 -

TOTAL COST OF SERVICES 639,799 377,257 626,019 957,721 141,453 231,398 541,889 543,805 1,949,160 2,110,181

Revenues from Ordinary Activities

User Charges and fees 640 - 2,500 4,091 - - 613 3,080 3,753 7,171Commonwealth grants and contributions - - - - - - 57,500 - 57,500 -Other revenues from ordinary activities

30,529 14,019 145,806 217,890 832 31,379 70,732 153,041 247,899 416,329

TOTAL REVENUES FROM ORDINARY ACTIVITIES

31,169 14,019 148,306 221,981 832 31,379 128,845 156,121 309,152 423,500

NET COST OF SERVICES 608,630 363,238 477,713 735,740 140,621 200,019 413,044 387,684 1,640,008 1,686,681

REVENUES FROM GOVERNMENT

Output Appropriation 577,083 350,385 452,951 709,707 133,332 192,941 391,634 373,966 1,555,000 1,627,000Resources received free of charge 2,970 1,831 2,880 3,708 630 1,008 2,520 1,954 9,000 8,500TOTAL REVENUES FROM GOVERNMENT 580,053 352,216 455,831 713,414 133,962 193,949 394,154 375,920 1,564,000 1,635,500

CHANGE IN NET ASSETS (28,578) (11,022) (21,882) (22,325) (6,659) (6,069) (18,890) (11,764) (76,008) (51,181)

96

AUDITOR GENERAL

To the Parliament of Western Australia GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION PERFORMANCE INDICATORS FOR THE YEAR ENDED JUNE 30, 2002 Matters Relating to the Electronic Presentation of the Audited Performance Indicators This audit opinion relates to the performance indicators of Goldfields Esperance Development Commission for the year ended June 30, 2002 included on the Commission’s web site. The Board is responsible for the integrity of the Commission’s web site. I have not been engaged to report on the integrity of the Commission’s web site. The audit opinion refers only to the performance indicators named below. It does not provide an opinion on any other information which may have been hyperlinked to or from these performance indicators. If users of this opinion are concerned with the inherent risks arising from electronic data communications, they are advised to refer to the hard copy of the audited performance indicators to confirm the information included in the audited performance indicators presented on this web site. Scope I have audited the key effectiveness and efficiency performance indicators of the Goldfields Esperance Development Commission for the year ended June 30, 2002 under the provisions of the Financial Administration and Audit Act 1985. The Board is responsible for developing and maintaining proper records and systems for preparing and presenting performance indicators. I have conducted an audit of the key performance indicators in order to express an opinion on them to the Parliament as required by the Act. No opinion is expressed on the output measures of quantity, quality, timeliness and cost. My audit was performed in accordance with section 79 of the Act to form an opinion based on a reasonable level of assurance. The audit procedures included examining, on a test basis, evidence supporting the amounts and other disclosures in the performance indicators, and assessing the relevance and appropriateness of the performance indicators in assisting users to assess the Commission's performance. These procedures have been undertaken to form an opinion as to whether, in all material respects, the performance indicators are relevant and appropriate having regard to their purpose and fairly represent the indicated performance. The audit opinion expressed below has been formed on the above basis. Audit Opinion In my opinion, the key effectiveness and efficiency performance indicators of the Goldfields Esperance Development Commission are relevant and appropriate for assisting users to assess the Commission’s performance and fairly represent the indicated performance for the year ended June 30, 2002.

D D R PEARSON AUDITOR GENERAL October 30, 2002

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

AUDITOR GENERAL

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664

To the Parliament of Western Australia GOLDFIELDS ESPERANCE DEVELOPMENT COMMISSION FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2002 Matters Relating to the Electronic Presentation of the Audited Financial Statements This audit opinion relates to the financial statements of the Goldfields Esperance Development Commission for the year ended June 30, 2002 included on the Commission’s web site. The Board is responsible for the integrity of the Commission’s web site. I have not been engaged to report on the integrity of the Commission’s web site. The audit opinion refers only to the statements named below. It does not provide an opinion on any other information which may have been hyperlinked to or from these statements. If users of this opinion are concerned with the inherent risks arising from electronic data communications, they are advised to refer to the hard copy of the audited financial statements to confirm the information included in the audited financial statements presented on this web site. Scope I have audited the accounts and financial statements of the Goldfields Esperance Development Commission for the year ended June 30, 2002 under the provisions of the Financial Administration and Audit Act 1985. The Board is responsible for keeping proper accounts and maintaining adequate systems of internal control, preparing and presenting the financial statements, and complying with the Act and other relevant written law. The primary responsibility for the detection, investigation and prevention of irregularities rests with the Board. My audit was performed in accordance with section 79 of the Act to form an opinion based on a reasonable level of assurance. The audit procedures included examining, on a test basis, the controls exercised by the Commission to ensure financial regularity in accordance with legislative provisions, evidence to provide reasonable assurance that the amounts and other disclosures in the financial statements are free of material misstatement and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia and the Treasurer’s Instructions so as to present a view which is consistent with my understanding of the Commission’s financial position, its financial performance and its cash flows. The audit opinion expressed below has been formed on the above basis. Qualification The Goldfields Esperance Development Commission made grants totalling $220 216 during the year. Legal Advice is that the Commission does not have the power under the Regional Development Commissions Act 1993 to make payments of this nature.

Goldfields Esperance Development Commission Financial statements for the year ended June 30, 2002 Qualified Audit Opinion In my opinion,

(i) except for the effects of the matter referred to in the qualification, the controls exercised by the Goldfields Esperance Development Commission provide reasonable assurance that the receipt, expenditure and investment of moneys and the acquisition and disposal of property and the incurring of liabilities have been in accordance with legislative provisions; and

(ii) the Statement of Financial Performance, Statement of Financial Position and Statement of Cash Flows and the Notes to and forming part of the financial statements are based on proper accounts and present fairly in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia and the Treasurer’s Instructions, the financial position of the Commission at June 30, 2002 and its financial performance and its cash flows for the year then ended.

D D R PEARSON AUDITOR GENERAL October 30, 2002

4th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 5664