Queensland Water Commission Annual Report

2011–12

Purpose of the report This annual report details the financial and non-financial performance of the Queensland Water Commission (Commission) from 1 July 2011 to 30 June 2012. It highlights the work, achievements, performance, outlook and financial position of the Commission, and satisfies the requirements of Queensland’s Financial Accountability Act 2009. The report also details progress against the Commission’s 2011–12 to 2014–15 Strategic Plan.

Interpreter service The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty understanding the annual report, you can contact us on freecall 1300 789 906 and we will arrange for an interpreter to effectively communicate the report to you.

Copyright Published by: Queensland Water Commission PO Box 15087 City East QLD 4002 Telephone: 1300 789 906 Email: qwcenquiries@qwc.qld.gov.au © State of Queensland (Queensland Water Commission) 2012 The Commission authorises the reproduction of textual material in this report, in whole or in part and in any form, provided the appropriate acknowledgement is given. This publication can be accessed and downloaded from our website at <www.qwc.qld.gov.au/publications>. Alternatively, hard copies of this publication can be obtained by emailing <qwcenquiries@qwc.qld.gov.au>. ISSN 1837-4832 (Print) ISSN 1838-1596 (Online)

Disclaimer This document has been prepared with all due diligence and care, based on the best available information at the time of publication. The Commission holds no responsibility for any errors or omissions within this document. Any decisions made by other parties based on this document are solely the responsibility of those parties. Information contained in this document is from a number of sources and, as such, does not necessarily represent government or Commission policy.

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Contents Letter of compliance 3

Message from the Acting Commissioner and the Chief Executive Officer 4

About the Queensland Water Commission 5 Functions 5 Vision 5 Purpose 5 Future 5 Stakeholders 7

2011–12 highlights 8

Strategic challenges and opportunities 11

Performance: Water Supply and Demand Management 12

Objective: Plan for the provision of a safe, secure and sustainable water supply for SEQ to achieve the desired Level of Service objectives. 12 SEQ Water Strategy 12 SEQ System Operating Plan 12 Drought Response Plan 12 Future supply options 13 Queensland Floods Commission of Inquiry 14 Demand management 14 Regional and sub-regional planning 14

Objective: Improve the institutional and regulatory frameworks to enable efficient and cost-effective service delivery to water customers in SEQ. 15 SEQ water market reforms 15 Review SEQ water market design and market rules 15 Review and implement institutional and regulatory reforms 16 Review the 10-year bulk water price path in SEQ 17 SEQ water market 17

Performance: Coal Seam Gas Water 18 Objective: Provide sound, evidence-based advice on management of the impacts of CSG

extraction on underground water resources. 18 Surat Underground Water Impact Report 18 Development of statutory database 19 Industry levy 19

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Performance: Enabling Strategies 20

Objective: Ensure a capable and motivated workforce that operates within a performance-based governance framework. 20

Service Delivery Statement 21

Financial performance summary 22

Corporate governance 25 Organisational structure 25

Acting Commissioner 25 Executive Management Team 25

Commission meetings 27 Committees and advisory bodies 27

Audit and Risk Management Committee 27 Underground Water Management Levy Expenditure Advisory Committee 28 Service Level Agreement Review and Management Committee 29 Shared Values Committee 29 Expert advisory panel 29

Managing and monitoring performance 30 Risk management 30 Internal audit 31 External scrutiny 31 Shared services 31

People 32 A safe workplace 32 Equal employment opportunity 33 Employee assistance and support 33 First aid 33 Influenza immunisation 33 Ethics principles and values 33 Public Interest Disclosures 33 Disability Service Plan 34 Multicultural Action Plan 34

Financial Statements 35

Glossary 70

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Our ref: D/12/029092 31 AUG 2012 The Honourable Mark McArdle MP Minister for Energy and Water Supply PO Box 15216 City East QLD 4002 Dear Minister I am pleased to present the Annual Report 2011–2012 and financial statements for the Queensland Water Commission. I certify that this Annual Report complies with: • the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance

Management Standard 2009, and • the detailed requirements set out in the Annual report requirements for Queensland Government

agencies. A checklist outlining the annual reporting requirements can be accessed at http://www.qwc.qld.gov.au/about/annualreports.html Yours sincerely Mary Boydell Acting Commissioner

Queensland Water Commission PO Box 15087 City East Qld 4002

Ph: +61 7 3227 8207 Fax: +61 7 3227 8227 ABN:65 242 908 036 www.qwc.qld.gov.au

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Message from the Acting Commissioner and the Chief Executive Officer The year 2011–12 has been a productive one with sound progress made in many of the functions of the Queensland Water Commission (Commission). This annual report outlines the Commission’s work in planning for the provision of a safe, secure and sustainable water supply in South East Queensland (SEQ), and in providing sound, evidence-based advice on management of the impacts of coal seam gas (CSG) extraction on underground water resources. In terms of the Commission’s work related to functions of water supply and demand management, the Commission progressed a number of actions from the SEQ Water Strategy (the Strategy) and, in November 2011, released the first Annual Report on the Strategy. The Commission also updated the System Operating Plan in late November 2011, detailing an enhanced process in relation to planning and demand forecasting to support the achievement of water security objectives, and to provide for the preparation of Manufactured Water Readiness Plans. With water consumption in South East Queensland remaining relatively stable, the Commission was able to review the Permanent Water Conservation Measures, and in April 2012 removed a number of generally non-residential measures, which reduced the regulatory burden on business, water service providers, government and the community. In line with the recommendations of the Queensland Floods Commission of Inquiry and government initiatives, the Commission provided advice to government on the water supply security and flood mitigation implications of alterations to temporary full supply levels for dams in SEQ, prepared a report on water supply security for investigations of options to increase the flood mitigation performance of Wivenhoe Dam, and contributed to the work of the Wivenhoe and Somerset Dams Optimisation Study and the North Pine Dam Optimisation Study Steering Committees. In 2011–12, the Commission continued to deliver improvements to the institutional and regulatory frameworks to enable efficient and cost-effective service delivery to water customers in SEQ. This included work to inform the Statutory Review of the SEQ Market Rules and to provide advice on the frameworks and legislation required for the dissolution of Allconnex Water and re-establishment of council water businesses. The Commission’s function related to the provision of advice for managing underground water impacts associated with the extraction of coal seam gas continued to develop in 2011–12. The Commission completed building its first regional groundwater flow model for the Surat Cumulative Management Area and developed the draft Surat Underground Water Impact Report (UWIR). The draft report was made available for public consultation on 17 May 2012. A key part of the regulatory framework for managing the impacts of groundwater extraction by petroleum tenure holders and CSG operators, the final Surat UWIR was submitted to the Chief Executive of the Department of Environment and Heritage Protection as required on 18 July 2012. The Queensland Government has announced its intention to introduce a bill into Parliament later this year to abolish the Commission with effect from 1 January 2013 and to integrate functions into the Department of Energy and Water Supply. The majority of the Commission’s employees were transferred into the Department of Energy and Water Supply on 1 July 2012. To enable the Commission to fulfil its legislated functions during this period, the Chief Executive Officer of the Commission has entered into a Memorandum of Understanding with the Director-General of the Department of Energy and Water Supply for the provision of staff resources. Throughout the year, the Commission has worked closely with its wide range of stakeholders. We acknowledge and thank our many stakeholders and members of the communities in which we operate for their valuable contribution and support to the Commission in this past year. Finally, we would like to sincerely thank the Commission’s executive management team and staff for their ongoing support, professionalism, enthusiasm and dedication over the past year—their commitment and expertise underpins the achievements made over the past 12 months. Mary Boydell Karen Waldman Acting Commissioner Chief Executive Officer

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About the Queensland Water Commission The Queensland Water Commission (Commission) is an independent statutory body established under the Water Act 2000. The portfolio ministers for the Commission, under the Administrative Arrangements Amendment Order (No.2) 2011, for the period 1 July 2011 until 26 March 2012, were the Minister for Energy and Water Utilities, the Honourable Stephen Robertson MP and the Minister for Environment, the Honourable Vicky Darling MP. Following the Queensland state election, under the Administrative Arrangements Order (No. 4) 2012, the portfolio ministers are the Minister for Energy and Water Supply, the Honourable Mark McArdle MP and the Minister for Environment and Heritage Protection, the Honourable Andrew Powell MP. During 2011–12, the principal place of business for the Commission was 53 Albert Street, Brisbane.

Functions Under the Water Act 2000, the Commission’s main functions are to do the following for the SEQ region and designated regions: • advise the Minister on:

– matters relating to water supply and demand management for water – the delivery of desired levels of service objectives for water supplied to the SEQ region and designated

regions • facilitate and implement regional water security programs • ensure compliance with the programs and with the Commission’s water restrictions. In terms of the Commission’s coal seam gas water responsibilities, under the Water Act 2000 the Commission is to: • advise the Chief Executive on matters relating to impacts on underground water caused by the exercise of

underground water rights by petroleum tenure holders • establish and maintain a database of information about underground water • prepare reports for cumulative management areas. In October 2011, Chapter 2 of the Water Act 2000 was amended, establishing a requirement for the Chief Executive (on request of the Minister) to consult with the Commission, if a dam is in the SEQ region or a designated region, about: • the extent to which the proposed temporary full supply level is likely to mitigate the impacts of a potential flood

or drought • the impacts of the proposed temporary full supply level on water security.

Vision Safe, secure and sustainable water for regional prosperity, lifestyles and healthy ecosystems.

Purpose To achieve safe, secure and sustainable water supplies in SEQ and to provide sound, evidence-based advice on management of the impacts of CSG extraction on underground water resources.

Future The Queensland Government has announced its intention to introduce a bill into Parliament later this year to abolish the Commission with effect from 1 January 2013 and to integrate the functions into the Department of Energy and Water Supply on 1 July 2012. To enable the Commission to fulfil its legislated functions during this period, the Chief Executive Officer of the Commission has entered into a Memorandum of Understanding with the Director-General of the Department of Energy and Water Supply for the provision of staff resources. To ensure the Commission continues to comply with the mandatory requirements relating to the revision and publication of strategic plans, minor updates have been made to the Commission’s existing strategic plan for 2011–12 to 2014–15.

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Stakeholders

In 2011–12, the Commission worked closely with a wide range of stakeholders as shown below. Significant stakeholders Plan for the provision

of a safe, secure and sustainable water supply for SEQ to achieve the desired Level of Service objectives

Improve the institutional and regulatory frameworks to enable efficient and cost-effective service delivery to water customers in SEQ

Provide sound, evidence-based advice on management of the impacts of CSG extraction on underground water resources

SEQ water customers/SEQ community ● ● Bore owners/landholders/regional communities ●

Local councils SEQ, Council of Mayors SEQ Regional (e.g. Western Downs)

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SEQ water industry SEQ Water Grid Manager LinkWater, Seqwater (Grid service providers) Queensland Urban Utilities, Allconnex Water, Unitywater

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CSG industry Australian Petroleum Production and Exploration Association (APPEA) Petroleum Tenure Holders

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Surat Basin Engagement Group/proposed Gasfields Commission and Community Leaders forum ●

Agriculture groups Agforce/Queensland Farmers Federation (QFF) Rural Water Advisory Group (RWAG)

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Environment groups Queensland Conservation Council (QCC) Basin Sustainability Alliance

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Consumer organisations Energy and Water Ombudsman Queensland (EWOQ) Queensland Council of Social Service (QCOSS)

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Development industry (e.g. Urban Development Institute of Australia, Property Council, Housing Industry Association) ● ●

Regulators Queensland Competition Authority (QCA) Department of Environment and Heritage Protection (EHP)

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Minister(s) ● ● ●

State Government Department of Energy and Water Supply Department of Local Government and Planning Department of State Development Department of the Premier and Cabinet Queensland Treasury and Trade Department of Environment and Heritage Protection Department of Natural Resources and Mines

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Chief Executive of EHP ● ●

Commonwealth Government Department of Sustainability, Environment, Water, Population and Communities (SEWPAC) National Water Commission (NWC)

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Levy funding sources Petroleum tenure holders Grid service providers (Seqwater and LinkWater)

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2011–12 highlights SEQ Water Strategy Progressed actions identified in the SEQ Water Strategy and issued the first annual report on the SEQ Water Strategy, providing a status report on the short and long term water security position in SEQ.

System Operating Plan Developed and released the System Operating Plan Revision 4.0, which included a process for planning and demand forecasting and requiring preparation of a Manufactured Water Readiness Plan.

Total water cycle management plans In accordance with the requirement of the SEQ Regional Plan 2009–2031, led the development of sub-regional total water cycle management plans in Caboolture West, Ripley Valley and Caloundra South / Palmview.

Permanent Water Conservation Measures Reviewed Permanent Water Conservation Measures and removed a number of primarily non-residential measures that reduced the regulatory burden on business, water service providers, government and the community.

Drought Response Plan for SEQ Continued development of the Drought Response Plan for SEQ.

SEQ dams full supply volume Provided advice to Government on the security of supply and flood mitigation implications of temporary alterations to the full supply volume of dams in SEQ and prepared a report on water supply security for investigations of options to increase the flood mitigation performance of Wivenhoe Dam.

SEQ Market Rules On behalf of the then Minister, undertook work to inform the Statutory Review of the SEQ Market Rules which was tabled in Queensland Parliament on 19 January 2012. The report made a number of recommendations for improving the operation and effectiveness of the market rules. Undertook the Rules Administrator’s Annual Market Rules Review 2010–11 and published the review on the Commission’s website.

Institutional frameworks Provided advice on the frameworks and legislation required for the dissolution of Allconnex Water and the re-establishment of water businesses within Gold Coast, Logan and Redland City Councils.

Queensland Competition Authority Reviewed the Queensland Competition Authority report and provided detailed analysis and recommendations on the Final Grid Service Charges for 2011–12 to the then Minister.

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Four Point Water Plan In response to the Government’s Four Point Water Plan: • sought submissions from the participating councils of Unitywater and Queensland Urban Utilities in relation to

their views on withdrawing from their distributor-retailer • undertook an accelerated bulk water price review and provided options for savings to household water bills in

SEQ • provided advice on market changes as a result of the proposed merger of the SEQ bulk water entities.

Regional groundwater flow model Built the first regional groundwater flow model for the Surat Cumulative Management Area and developed the first draft Surat Underground Water Impact Report (UWIR).

Draft Surat Underground Water Impact Report and Consultation Released the draft Surat Underground Water Impact Report for public consultation on 17 May 2012. Held nine public information sessions on the draft Surat UWIR in five regional centres during May and June 2012. The regional centres were: Roma, Chinchilla, Dalby, Toowoomba and Wandoan. A total of nearly 400 people attended these information sessions. Provided a presentation regarding the Surat UWIR to a meeting of the interim Independent Expert Scientific Committee (Commonwealth Government) in Canberra in June 2012. Following consultation, submitted the UWIR as required to the Chief Executive of the Department of Environment and Heritage Protection on 18 July 2012.

Coal Seam Gas Levy Released a Regulatory Assessment Statement for the implementation of an industry funded levy to support the Commission’s CSG underground water management function. Developed and commenced the levy.

Expenditure Advisory Committee Established an Expenditure Advisory Committee as the relevant advisory body for ongoing consultation on planned expenditure on the Commission’s underground water management functions.

Modelling governance work program Completed a review of the governance arrangements for the Commission’s modelling activities and developed a modelling governance work program to address the findings of the review.

Governance, Risk and Compliance Framework Developed and implemented a Governance, Risk and Compliance Framework, including risk management system and compliance program to ensure that the Commission appropriately manages risk and meets its regulatory and internal compliance obligations.

Performance Management Framework Developed and implemented the Performance Management Framework, an integrated approach to strategic and operational planning, performance measurement, monitoring and reporting.

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Workplace Health and Safety Released the Workplace Health and Safety Policy and a Workplace Health and Safety Statement of Commitment. Developed and implemented a suite of workplace health and safety policies and procedures (including Injury and Illness Management, Workers' Compensation and Case Management, Field Operations Procedure, and First Aid Management among others) to support the staff in utilising the Commission's workplace health and safety systems and/or activities.

Workforce policies, systems and practices Utilised its performance-based governance framework to ensure its workforce policies, systems and practices aligned with its organisational objectives and were able to respond to changes in priorities. Developed and implemented a suite of policies and procedures (including Managing and Planning for Achievement, Performance Improvement, Flexible Working Hours, Part-Time Work, After Hours Work and Managing Employee Complaints among others) to promote diversity and build the capacity and capability of staff to deliver the Commission’s objectives.

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Strategic challenges and opportunities Through the Commission’s strategic planning in 2011–12, the Commission identified the following strategic risks: • lack of community support for key elements of the SEQ Water Strategy compromises its implementation • inadequate focus on long-term water supply planning to preserve future supply options • SEQ water market design is not sufficiently clear to ensure a shared understanding and acceptance of roles

and accountabilities • quality assurance processes are not agreed and put in place for information, analysis and advice on impacts of

CSG extraction on underground water resources • inadequate access to critical capabilities required to effectively fulfil the Commission’s responsibilities. To address the challenges posed by these risks, the Commission: • progressed the Regional Water Security Program and Drought Response Plan • completed and released the 2011 annual report on the SEQ Water Strategy • engaged with stakeholders to provide advice and input on the implementation of the SEQ Water Strategy

actions • conducted sub-regional Total Water Cycle Management Plan development workshops to provide opportunities

to work with key stakeholders on long term planning options • led the Water Supply Security Technical Working Groups for the Wivenhoe Dam and Somerset Dam

Optimisation Study, and the North Pine Dam Optimisation Study in assessing the impacts of changing dam full supply level on water supply security

• undertook work to further improve understanding and management of tradeoffs between flood mitigation and water supply security for SEQ dams

• undertook the work to inform the Statutory Review of the SEQ Market Rules on behalf of the then Minister for improving the operation and effectiveness of the Market Rules, undertook the Rules Administrator’s Annual Market Rules Review 2010–11 and reviewed the Market Rules to reduce regulatory burden

• developed a governance framework for the Commission’s CSG water functions, including the role of external experts and conducted a peer review of the regional groundwater flow model

• maintained engagement with peak bodies and community leaders through the Surat Basin Engagement Group • developed and implemented frameworks, plans and policies including (but not limited to):

– Governance, Risk and Compliance Framework including a risk system and compliance program – Corporate Performance Management Framework – Human Resource Management Policy – Workplace Health and Safety Policy – Performance Improvement Policy and procedure.

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Performance: Water Supply and Demand Management Objective: Plan for the provision of a safe, secure and sustainable water

supply for SEQ to achieve the desired Level of Service objectives.

Performance indicators • SEQ Water Strategy actions are finalised on time and within budget. • Average daily residential consumption in SEQ is less than 200 litres per person per day.

SEQ Water Strategy In 2011–12, the Commission continued to implement the Regional Water Security Program, the SEQ Water Strategy and the key actions of the Strategy. Implementation of the SEQ Water Strategy is now underway and implementation of the key actions is progressing well. With the current volumes of water stored within the SEQ Water Grid, SEQ’s water supplies are secure in the short term. Even if SEQ was to experience another drought as severe as 2001 to 2009, the region would not expect to enter restrictions for at least five years. The progress of the Strategy was monitored and the first annual report on the Strategy was produced and published on the Commission’s website in November 2011. The report documents the status of the region’s short and long-term water security. The Rural Water Advisory Group (RWAG) was established and is considering options to improve the availability and reliability of water for rural production. Sub-regional total water cycle management planning has been undertaken in several of the key growth areas in the region. In accordance with the requirement of the SEQ Regional Plan, the Commission led the development of sub-regional total water cycle management plans in Caboolture West, Ripley Valley and Caloundra South / Palmview.

SEQ System Operating Plan The South East Queensland System Operating Plan is developed under the Water Act 2000 to facilitate the achievement of the desired levels of service objectives for the SEQ region. In 2011–12, the Commission developed and released the System Operating Plan Revision 4.0 in November 2011, which included a process for planning and demand forecasting and requiring preparation of Manufactured Water Readiness Plans to ensure manufactured water is available and able to be used as and when required. Seqwater has developed draft manufactured water readiness plans with the final plans due for completion by 30 September 2012. The review of the Purified Recycled Water Source Control Mechanisms was finalised in May 2012. Options for the cost-effective management of source water for the Western Corridor Recycled Water Scheme were developed. The Purified Recycled Water Expert Advisory Panel reviewed the report in June 2012 and noted that the report was useful in highlighting issues and commended the effort to focus on practical approaches to improve source control. The report has been provided to stakeholders to aid in risk assessment and management.

Drought Response Plan A Drought Response Plan supports water supply security, by being prepared for what needs to happen in the lead up to, during and after any future drought in the SEQ region. Planning has progressed to preliminary draft consultation phase.

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The SEQ Water Strategy and the Drought Response Plan are inter-dependent. Recognising the future merging of bulk water supply entities and the abolition of the Commission, the Drought Response Plan is being developed in a manner that allows flexible assignment of responsibilities as new institutional arrangements come into effect.

Future supply options

Independent review of desalination investigations Planning investigations are underway to preserve options for potential future desalination sites. An independent review was completed in August 2011 of the Marcoola and Lytton priority sites, and Bribie Island and Tugun reserve sites. The review confirmed the suitability of these sites, however detailed technical, environmental and economic reviews will be required in due course.

Surface water storage development • Mary River system The SEQ Water Strategy has identified options to develop additional water supply sources in the Upper Mary River catchment including a raised Borumba Dam. Discussions with the local governments commenced and are expected to continue through 2012–13. To ensure stakeholders are kept informed on the options being studied, preliminary discussions have been held with Sunshine Coast and Gympie Regional Councils and Mary River Catchment Coordinating Committee on the proposed investigations in the Upper Mary River. • Albert/Logan River system The assessment of the preferred Logan/Albert River Ultimate Development Scenario and Alternative Uses for Glendower Dam Site is progressing. This work will help identify potential water sources and determine whether land should be retained for future use. The Commission has progressed priority projects identified by the RWAG to improve the availability and reliability of water for rural production. Prefeasibility studies on the use of recycled water for irrigation purposes in the Logan River and Redlands catchments were completed. Water resource management in the Warrill Valley is now being investigated in detail. The prefeasibility study of recycled water in the Logan indicated it is a viable option for recycled water use for irrigators if growth in demand occurs. These findings were presented and discussions held with industry representatives on the RWAG on prospective options for water supply for rural production.

Future water supply options to Beaudesert and Canungra The Commission has facilitated the water supply planning for Beaudesert and Canungra, with Seqwater, LinkWater, the SEQ Water Grid Manager, Queensland Urban Utilities and Allconnex Water. For forecast demand, the facilitated solution is financially superior to the previous options of large capital investment in new infrastructure. The key has been a better understanding of provision of water supply security and desired levels of service to stand-alone communities. The Commission met with Scenic Rim Regional Council to discuss water supply planning issues and options for future supply for Beaudesert and Canungra. Costs, planning process and options were considered in the facilitated planning approach. Discussions will be held again with Council once the medium term future supply option is confirmed.

Wivenhoe and Somerset Dam Optimisation Study and North Pine Dam Optimisation Study The Commission assists the Wivenhoe and Somerset Dam Optimisation Study and North Pine Dam Optimisation Study by assessing the impacts of changing dam full supply level on water supply security. The Wivenhoe and Somerset Dam Optimisation Study and North Pine Dam Optimisation Study integrates work by a number of stakeholders in addressing the recommendations of the Queensland Floods Commission of Inquiry. The Commission prepared a report on the impacts of lowering the full supply level of Wivenhoe Dam on water supply security, as input to the investigation of options to increase the flood mitigation performance of Wivenhoe Dam.

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Queensland Floods Commission of Inquiry Recommendation 2.4 of the Interim Report of the Queensland Floods Commission led to changes in the Water Act 2000 to enable temporary alterations to the full supply level of dams. Under section 33(2) of the Water Act 2000 the Chief Executive of the department requests the Commission to provide advice on the extent to which a temporary full supply level of Wivenhoe and North Pine dams would likely mitigate the impacts of a potential flood and how a proposed temporary full supply level may impact on water security. As required, the Commission provided advice to the Government on the security of supply and flood mitigation implications of temporary alterations to the full supply volume of dams in SEQ. External experts provided peer reviews and advice on flood mitigation aspects to the Commission. The Commission assessed water supply security impacts and flood mitigation benefits. Expertise and capacity as well as systems and processes have been developed to consult, collate and analyse information in order to provide sound advice to inform decision makers.

Demand management In late 2011, the Commission reviewed Permanent Water Conservation Measures and removed a number of primarily non-residential measures in April 2012, which reduced the regulatory burden on business, water service providers, government and the community. The Commission worked with water service providers to ensure a smooth transition to the revised Permanent Water Conservation Measures.

Regional and sub-regional planning

Supply and demand analysis Demand analysis/forecasting and supply modelling were used extensively to inform SEQ regional planning, projects, dam full supply level advice and the accelerated bulk water price review. Extension of demand forecasting profiles beyond 20 years to support water balance assessments will be completed in 2012–13. The contribution of purified recycled water and desalination water to the system yield was modelled to test the SEQ Water Strategy assumptions and as input to the review of the manufactured water assets’ operations. Comprehensive modelling of water supply impacts and implications for supply infrastructure also enabled the Commission to provide sound advice to the Chief Executive of the former Department of Environment and Resource Management (DERM) on temporary full supply level of dams. Quality assurance of hydrologic models WATHNET and WaSPP was completed to enable model reliability and stability.

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Objective: Improve the institutional and regulatory frameworks to enable efficient and cost-effective service delivery to water customers in SEQ.

Performance indicator • Institutional and regulatory framework improvements are delivered on time and within budget.

SEQ water market reforms

Bulk water entities—grid service charges The two bulk water entities, Seqwater and LinkWater, are paid grid service charges to provide bulk water services, which include storage, treatment and transport of potable water via the SEQ Water Grid, to the council-owned distributor-retailers and power stations. The Commission provided advice on direction notices issued by the then Minister for Energy and Water Utilities to the QCA requiring the QCA to investigate and report on the costs of the bulk water entities for 2012–13. The Commission provides advice to the Minister on the QCA’s findings and recommendations, which includes the grid service charges to be paid to Seqwater and LinkWater. During 2011–12, the Commission provided advice on the 2011–12 grid service charges, including for government to understand the impact of the bulk water sector’s performance for the year.

Distributor-retailers and SEQ council water businesses—price monitoring The Commission provided advice on the distribution and retail prices, and has monitored the impact of increases on a household bill. The Commission assisted Queensland Treasury and Trade to develop the direction notices, setting the terms of reference and timing for QCA’s role. It also assisted with reviewing the prices and capital expenditure of distributor-retailers, and their compliance with the consumer price index (CPI) cap on these prices for households and businesses. The Commission consulted and provided advice on legislation assented to in June 2011 that limited distributor-retailer price increases to CPI increases until the end of June 2013.

Economic regulation—SEQ irrigators During 2012–13, the QCA will conduct its inaugural review of irrigation prices for seven water supply schemes in SEQ supplied by Seqwater. In order to conduct the investigation, the Commission assisted Queensland Treasury and Trade to indentify the water supply schemes to be declared government monopoly business activities. The Commission provided advice on the associated referral notice issued under the Queensland Competition Authority Act 1997. Declaration and referral notices were delivered on time and interim CPI pricing arrangements implemented to allow Seqwater to charge irrigators in the interim period to 1 July 2013 when the new prices will take effect.

Review SEQ water market design and market rules

Market rules review and implementation through amendments The market rules are based on the current institutional frameworks. Proposed institutional changes are likely to lead to substantial changes to the regulatory environment. The Commission undertook work to inform a review of the operation and effectiveness of the Market Rules in 2011 for the then Minister. The review was tabled in Parliament in January 2012. The Commission held consultation sessions with key stakeholders during the review and then provided information sessions on the outcomes of the review. The review recommended a number of amendments to the market rules, some of which have now been implemented to reduce regulatory burden.

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Review and implement institutional and regulatory reforms

SEQ distribution and retail reforms—breakup of distributor-retailers In mid 2011, the former Government asked all SEQ councils if they wished to withdraw from their distributor-retailers and re-establish council water businesses. This offer was taken up by the council owners of Allconnex Water—with Logan and Redland City Councils resolving this when it was clear that Gold Coast City Council (the primary equity holder) was determined to opt out of Allconnex. The Commission worked collaboratively with the SEQ councils and distributor-retailers to develop amendments to the SEQ Water (Distribution and Retail Restructuring) Act 2009 to break up Allconnex Water by 30 June 2012, and restore council water businesses to the Gold Coast, Logan and Redland City councils as per the decisions taken by these three councils. The amendments were passed in February 2012. Other amendments provided for council participation in their distributor-retailers’ strategic business operations by enabling councillors to be members of distributor-retailer boards, giving councils new powers to direct a board to act, and prohibiting privatisation of distributor-retailers. In April 2012, the Government asked all SEQ councils if they still wished to remain with the distributor-retailer model or re-establish commercialised council water businesses. The Allconnex Water councils confirmed their decisions to withdraw. The other SEQ councils resolved to stay with their respective distributor-retailers, Queensland Urban Utilities and Unitywater. The Commission continues to work closely with the SEQ water businesses to ensure the institutional arrangements provide the appropriate support and regulatory guidance. The Commission has cooperative arrangements with distributor-retailers and withdrawn councils and has worked collaboratively to develop policy proposals (such as guidance on Water NetServ Plans) and to develop and update codes (such as the Customer Code and the SEQ Design and Construction Code).

Water NetServ Plans Under the South East Queensland Water (Distribution and Retail Restructure) Act 2009, all distributor-retailers and now the withdrawn councils of Gold Coast, Logan and Redland City councils must have Water NetServ Plans. The Water NetServ Plan outlines the current network and proposed future extension of its network (which must align with the land use plans of its participating local governments). These plans bring together water and wastewater network planning and network management, and must reflect the land use planning decisions of government. This plan is the key planning instrument and business plan for each SEQ service provider. It brings together a wide range of plans and processes currently under different acts including Sustainable Planning Act 2009, the Water Supply (Safety and Reliability) Act 2008 and the Environment Protection (Water) Policy. It contains information previously found in planning scheme codes, strategic asset management plans, trade waste management plans, total water cycle management plans and system leakage management plans. This planning model will reduce the burden on SEQ service providers while providing for integration of land use and essential water infrastructure planning. The Commission has developed a draft regulation on the process to make Water NetServ Plans and a draft guideline on the content of Water NetServ Plans. These will be progressed in consultation with the water businesses.

Utility model for assessment process for network connections Before the creation of distributor-retailers, SEQ councils dealt with water and wastewater matters as part of assessing development applications. From the establishment of distributor-retailers in July 2010, an interim model was implemented that allowed councils to continue to assess water aspects of development applications under delegated powers from distributor-retailers (the delegated assessment model). It was intended to replace this interim model with a utility model in July 2013 that would enable the distributor-retailers to assess and approve applications to connect or alter connections to water and wastewater infrastructure in order to supply services to properties. This utility model would separate the development approval regime exercised by a land use planning authority, such as a council, from the network connection approvals by a distributor-retailer or withdrawn council—in a manner similar to the electricity industry. A forum will be convened to re-assess this model in consultation with the SEQ service providers to finalise the development assessment model.

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SEQ Design and Construction Code The SEQ Design and Construction Code will establish the technical standards for water and wastewater infrastructure and works, whether constructed by a service provider or a developer. It will complement a Water NetServ Plan’s provisions for a particular SEQ service provider and will replace the 17 various codes called up under planning schemes with a single set of standards. This will represent significant savings for SEQ service providers and development proposals through standardised and clearly known requirements. The Commission has provided advice to a distributor-retailer steering committee responsible for developing the draft code that was provided for public consultation in June 2012.

Customer protection measures for SEQ service providers (distributor-retailers and withdrawn councils) Since January 2011, the Customer Water and Wastewater Code has set customer protection measures and the obligations of both customers and of service providers for residential and small business customers. This reflects the small customer’s rights to a minimum level and range of services, particularly as water has become an increasing cost of the household budget. The Commission continued the development of customer protection measures in accordance with the planned progress towards improved levels of customer service. The Commission developed draft changes to the Water and Wastewater Customer Code to be ready for the break-up of Allconnex Water and provided support to the Energy and Water Ombudsman for its investigatory role. Some projects relating to providing information on small customer complaints and outcomes were deferred to 2012–13, but policy papers have been developed on treatment of unexpected high water usage (or concealed leaks) and related high water accounts, tenant billing, and extending pensioner rebates on water bills. Initial work was undertaken in 2011–12 on gathering information to underpin the planned full review and extension of the Customer Water and Wastewater Code in 2012–13.

Review the 10-year bulk water price path in SEQ On 10 April 2012, the government announced that the Commission and Queensland Treasury and Trade would undertake an accelerated review of bulk water prices with options for new price paths to be considered by Government. The objective of the review was to consider ways to deliver the Government's commitment of up to an $80 saving on average annual household SEQ water bills in 2012–13. The review formed part of the work to implement the Government’s Four Point Water Plan to reduce household water prices in South East Queensland. A more detailed bulk price review will be completed by early 2013, with a report to Government in March 2013.

SEQ water market

Market rules—Annual Market Rules Review 2011–12 The Commission is the rules administrator of the SEQ Water Market Rules which came into effect on 1 July 2008. As rules administrator, the Commission is required to submit an Annual Market Rules Review to the Minister by 30 November each year. This report, which provides comment on the achievement of market outcomes, was submitted to the then Minister on time. No adverse comments were made in relation to the achievement of market outcomes.

Market rules and regulatory compliance As rules administrator, the Commission is also responsible for reviewing and/or approving various plans required to be submitted by the SEQ Water Grid Manager under the market rules. The Commission has approved the Water Grid Risk Management Plan and provided comments on the Water Grid Emergency Response Plan and the draft Water Grid Quality Management Plan.

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Performance: Coal Seam Gas Water Objective: Provide sound, evidence-based advice on management of the

impacts of CSG extraction on underground water resources.

Performance indicator • Independent technical experts are satisfied that the Underground Water Impact Report provides sound,

evidence-based advice. In late 2010 the Water Act 2000 was amended to strengthen and expand the regulatory system for managing the impacts resulting from the production of CSG. A key change was to establish a role for the Commission in relation to the management of cumulative impacts on water levels in aquifers resulting from underground water extraction by CSG companies. Under the new statutory framework, an area where the impacts on water levels in aquifers caused by individual coal seam gas operations can overlap can be declared to be a Cumulative Management Area (CMA), and the Commission then becomes responsible for the preparation of an Underground Water Impact Report (UWIR) for the CMA. A UWIR for a CMA: • provides maps showing the predicted impacts on water levels in aquifers • specifies a regional water monitoring strategy and spring impact management strategy • assigns responsibilities to individual petroleum tenure holders within the CMA to carry out activities such as

specific parts of the regional monitoring strategy. The Commission also provides advice to government in relation to matters such as the need for CMAs and to store data relevant to the impact of water extraction by petroleum tenure holders on water levels. These underground water management functions are funded through an industry levy. Within the Commission, a CSG water business unit specifically carries out these functions.

Surat Underground Water Impact Report The Surat CMA was declared in March 2011. As a result, the Commission prepared a draft Surat UWIR in accordance with the requirements of the Water Act 2000. The draft Surat UWIR was released for public comment on 17 May 2012. Public information sessions were held in five regional centres to explain the content of the report with particular reference to local interests. The Commission amended the draft Surat UWIR having regard to submissions received during the public consultation period. The resulting final Surat UWIR was submitted to the Chief Executive of the Department of Environment and Heritage Protection on 18 July 2012, for consideration for approval. The Commission will continue to provide assistance to individual bore owners to understand the likely future impacts on water levels at the location of their bores, and will continue to engage with stakeholders about ongoing Commission activity. An annual report on the implementation of the Surat UWIR will be prepared and the UWIR will be updated every three years. To support the preparation of the Surat UWIR, the Commission carried out the following projects.

Regional groundwater flow model The Commission constructed a regional groundwater flow model. The model is a digital representation of the groundwater flow system. It represents the many geological formations in the CMA and the way water flows through them and between them. The model was constructed using: information from scientific literature; datasets established by research bodies; records from private water bores held by government agencies; and data from CSG companies held by government agencies or supplied directly to the Commission. External experts assisted in the construction of the model and the completed model was subject to peer review. The model was used to make predictions about the impacts of current and planned gas field development on water levels in the coal bearing formations as well as the surrounding aquifers. It was also used to design the regional water monitoring strategy and the spring impact management strategy, which are contained within the UWIR.

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Water monitoring strategy The Commission completed an inventory of existing water monitoring networks in the Surat CMA, operated by government agencies or by individual CSG companies. Having regard to the monitoring objectives relevant to Commission activities, a selection of existing monitoring works were identified to form part of an ongoing long term regional water monitoring network. Additional monitoring points to be constructed by petroleum tenure holders were identified to complete an integrated regional water monitoring network. The requirements are set out in a water monitoring strategy that is specified in the Surat UWIR.

Spring impact management strategy The Commission carried out field studies to collect information about springs in the CMA. This work arose from workshops and meetings with spring experts in 2010–11 about the adequacy of the then existing data about springs to support an understanding of the potential for impacts on water pressures in aquifers to affect spring values. The field studies collected data about the ecological values of springs and the source aquifers that feed the springs. That new spring information was then used in conjunction with predictions about water pressure impacts in the source aquifers, made using the regional groundwater flow model, to develop a spring impact management strategy that is specified in the Surat UWIR.

Independent expert advisory panels The Commission sought advice from independent national experts in the planning and implementation of technical studies supporting the preparation of the Surat UWIR. They have expertise in the fields of hydrogeology, hydrochemistry, groundwater modelling and spring ecology. The Commission will continue to seek advice from experts as it promotes ongoing research activity to further improve knowledge about the groundwater flow system and the way it will respond to CSG development.

Stakeholder understanding and confidence in CSG activities and functions The Commission engaged with a wide range of stakeholders. Through the Surat Basin Engagement Group, the Commission has kept community and agricultural industry leaders appraised of Commission progress in the preparation of the Surat UWIR. This engagement with the local community and industry leaders will continue through the soon to be established GasFields Commission and its Community Leaders Council. The Commission has also engaged with relevant Commonwealth agencies and provided information to the wider community through a range of workshop and conferences.

Development of statutory database The Commission has collected and developed a wide range of data and information in the process of developing the Surat UWIR. It will continue over time to accumulate additional data, including monitoring data arising from obligations established under the Surat UWIR. The Commission has developed interim systems to hold and manage the data. In 2012–13, an integrated data management system will be developed to support the long-term implementation of the underground water management functions.

Industry levy The Water Act 2000 provides that the Commission’s underground water management functions are to be funded by a levy payable by petroleum tenure holders. The Commission carried out a Regulatory Assessment Statement process with regard to options for the structure for the levy. Following the completion of that process the Water Regulation 2002 was amended to adopt the proposed structure and implementation of the levy commenced. As required, the Commission has established an Expenditure Advisory Committee to provide advice on the planned expenditure on its underground water management functions.

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Performance: Enabling Strategies Objective: Ensure a capable and motivated workforce that operates within a

performance-based governance framework.

Performance indicator • A performance-oriented workforce and effective governance enabling us to achieve our objectives. As part of the Commission’s organisational realignment in 2010–11, a strategic governance and risk function was established to provide high-level strategic advice to the Commission. The function is responsible for ensuring the Commission has in place effective governance arrangements and appropriate policies, systems and procedures to underpin strategic direction and priorities, properly manage resources and risks, and enable the Commission to meet its accountability requirements. It is also responsible for the Commission’s compliance functions, providing advice on legal, regulatory and compliance issues, and managing strategic projects. The strategic function is critical for the Commission and complements the corporate operational, governance, and communications support provided by the Business and Corporate Partnership. The primary strategic governance and risk focus during 2011–12 was implementing the Commission’s new organisational structure, leading strategic and operational planning across business groups, and continuing to improve business processes and procedures. A program of activities has continued to strengthen the Commission’s governance, risk and compliance systems. During 2011–12 the Commission developed and implemented an integrated governance, risk and compliance framework. The governance, risk and compliance framework was supported by: • a reviewed risk management policy and procedure in line with the Australian/New Zealand Standard for risk

management—AS/NZS ISO 31000:2009 • a compliance program with an approved compliance policy and implementation plan aligned to the Australian

Standard on compliance programs—AS 3806-2006. The Commission tested and embedded a business continuity plan to provide for a strategic, coordinated and prompt response to any major disruption to business operations. The Commission also implemented initiatives to improve its accountability through the establishment of a financial compliance committee, improved monitoring and oversight of services provided under the service level agreement, and development and implementation of an agency-specific integrity and ethics program. The Commission’s website was migrated into the government’s corporate web infrastructure and to ensure the currency of information it undertook a comprehensive review of the content on intra and internet sites. A whole-of-Commission modelling governance review aimed at ensuring robust and effective governance arrangements for modelling activities was finalised with subsequent recommendations being progressively implemented. Through the General Counsel, strategic and legal advice was provided to the Commission on issues relating to the agency’s responsibilities, policies and projects.

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Service Delivery Statement The Commission’s service areas, service standards, targets and estimated actual results are contained in the Service Delivery Statements (SDS) that form part of the State Budget documentation each year. SDS provide budgeted financial and non-financial information for the budget year. On 22 May 2012, the Department of the Premier and Cabinet advised agencies that 2011–12 service standards were to be used in the 2012–13 SDS. Coordinated advice was sought from Department of the Premier and Cabinet and Queensland Treasury and Trade on 23 May 2012 in relation to the service areas, service standards and targets for Commission’s 2012–13 SDS. Advice was sought on the ability of the Commission to split its service area of Water into two separate service areas to better reflect Commission’s two discrete business areas, Water Supply and Demand Management and Underground Water Management. The Department of the Premier and Cabinet and Queensland Treasury and Trade provided their response on 25 June 2012 that the most straightforward and consistent approach is to leave the service area (i.e. one service area) and service standards the same as in 2011–12. If the Commission was going to have an indefinite life, then the split of the service areas makes sense. Therefore, the 2012–13 SDS will include identical service area and service standards as presented in the 2011–12 SDS. The following section provides details of the Commission’s performance against the 2011–12 Budget Paper No. 3 - Service Delivery Statements as at 30 June 2012, including results against annual targets. Queensland Water Commission Notes 2011–12

Target/est. 2011–12

Est. actual 2012–13 Target/est.

Service standards Finalisation of SEQ Water Strategy actions on time and within budget

1 90%-100% 76% 90%-100%

Institutional and regulatory framework improvements delivered on time and within budget

2 85%-90% 90% 85%-90%

Independent technical expert panel members’ satisfaction that the Surat underground water impact report provides sound, evidence-based advice

3 80%-85% 100% 80%-85%

Notes: 1. This measure reflects the Commission’s efficiency in planning for the provision of secure and sustainable

water supply for SEQ to achieve the desired Level of Service objectives. This is a measure that assesses the progress of the suite of SEQ Water Strategy key actions, some of which are the responsibility of other agencies. Performance against these actions is based on the consolidated 26 activity groupings published in the SEQ Water Strategy Annual Report 2011. 21 groupings were planned for completion in 2011–12 and 16 were completed, forming the basis of the actual performance of 76 per cent.

2. This measure reflects the Commission’s efficiency in improving the institutional and regulatory frameworks to enable efficient and cost-effective service delivery to water customers in SEQ. During 2011–12, the Commission developed legislation and frameworks required for the SEQ water businesses and on behalf of the then Minister, undertook the work to inform the Statutory Review of the SEQ Market Rules. As a result, the actual target of 90 per cent was achieved.

3. This measure reflects the Commission’s effectiveness in providing sound, evidence-based advice on management of the impacts of coal seam gas extraction on underground water resources. There were six major meetings of the Technical Advisory Group. In addition, there were out-of-session discussions with members of the group, a field visit and a peer review of the regional groundwater model.

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Financial performance summary Financial performance The Commission’s Statement of Comprehensive income shows our total income for 2011–12 from all sources was $25.717 million, with total expenditure of $25.565 million.

Income The Commission’s total income for the period was $25.717 million. The sources of our income included a Water Service Provider levy of $15.723 million, CSG Water levy $3.847 million, a Queensland Government grant of $5.520 million, and $0.627 million in other revenue—including bank interest revenue and recovered rent for surplus office accommodation.

Expenses The Commission’s total operating expenses for 2011–12 were $25.565 million. Our major expenses in delivering services under the Water Act 2000 included employee expenses, and supplies and services. Employee expenses for the period were $7.954 million representing 31 per cent of total operating expenses. Supplies and services of $10.859 million included consultants and contractors providing specialist expertise, service provider costs for corporate services provided by what is now the Department of Natural Resources and Mines and Queensland Shared Services, operating leases for the Commission’s office accommodation, and other general supplies and services. This category of expenses was the Commission’s largest in total, representing 42 per cent per cent of total expenditure. Grants and subsidies amounted to $5.828 million including $5.667 million to repay seed funding received for the underground water management function. The remaining expenses included depreciation and amortisation (primarily related to leasehold improvement and the WaterHub respectively) and other expenses. The ‘other expenses’ category includes items such as audit fees and insurance premiums. The Commission also made provision for the repayment of Queensland Government grants totalling $5.667 million.

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Financial position The Commission’s Statement of Financial Position provides an indication of the Commission’s net assets at 30 June 2012. It is calculated by measuring what we own and subtracting what we owe. The Commission’s total assets at 30 June 2012 were $18.239 million with total liabilities of $14.547 million, resulting in net assets of $3.692 million. Our liquidity ratio (or current assets over current liabilities) of 1.1 demonstrates the Commission’s ability to maintain a satisfactory level of working capital.

Assets At the end of the financial year, we had larger than usual cash reserves in order to repay seed funding grants of $5.667 million and creditors including unspent Water Service Provider and CSG Water levies totalling $5.906 million (which will be credited against 2012–13 Water Service Provider and CSG Water payments), and unspent capital grant—provided for the underground water management function—which will be used to finance the acquisition of assets for this function. The Commission’s major assets are the leasehold improvement asset associated with our offices at 53 Albert Street, Brisbane included in property, plant and equipment, and the WaterHub Modular Information System and regional groundwater flow model—intangible assets which are key in providing one of the Commission’s core business deliverables. In 2011–12, the Commission completed the Surat Cumulative Management Area regional groundwater flow model, a significant tool to be used in the provision of our underground water management service.

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Liabilities The Commission’s liabilities consist of trade creditors, including the liability for repayment of seed funding grants, unspent Water Service Provider and CSG Water levies from 2011–12, accrued employee entitlements and lease incentive liability associated with the leasehold improvement at 53 Albert Street. The Commission’s accrued employee benefits have increased from the previous year due to recruitment to permanent positions during 2011–12.

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Corporate governance Organisational structure Prior to the Queensland State election in March 2012 and any subsequent changes, the organisational structure below was in place until 30 June 2012. The Queensland Government has announced its intention to introduce a bill into Parliament later this year to abolish the Commission with effect from 1 January 2013 and to integrate functions into the Department of Energy and Water Supply. The majority of the Commission’s employees were transferred into the Department of Energy and Water Supply on 1 July 2012.

Acting Commissioner Mary Boydell BComm, FCA, MAICD Appointed as Commissioner on 19 June 2009 to 18 June 2012. She was appointed Acting Commissioner on 19 June 2012 for the period to abolition of the Commission or twelve months, whichever is less. Ms Boydell is a Chartered Accountant with experience in professional services firms, private business and commerce. Ms Boydell is also Chairperson of the Gladstone Area Water Board, a Board Member of the CSIRO and a Director of Uniquest Pty Ltd and UATC Pty Ltd. Ms Boydell’s former appointments include: Director of Energex Limited, Chairperson of the Rural Industries Research and Development Corporation; Board Member of the Queensland Bulk Water Supply Authority; and a Director of South East Queensland Water Corporation Limited, BSES Limited, Austrade (Australian Trade Commission) and Burnett Water Pty Ltd. The Commissioner is responsible for the strategic policy direction of the Commission.

Remuneration of the Commissioner The Commissioner is remunerated in accordance with the Department of Justice and Attorney-General policy Remuneration of Part-time Chairs and Members of Government Boards, Committees and Statutory Authorities.

Executive Management Team Prior to 1 July 2012, the Executive Management Team was comprised of: • the Chief Executive Officer • the General Managers of each of the four Commission business groups (Regional Planning and Policy; Water

Reform; Coal Seam Gas Water; Strategic Governance and Risk) • the Director, Corporate Services, former DERM. The Executive Management Team provides advice to the Commission on the development of its strategic direction, and is responsible for the delivery of key operational activities through a range of plans, strategies and policies.

Executive Management Team

Commissioner

General Manager Regional Planning

and Policy

General Manager Water Reform

General Manager Coal Seam Gas

Water

General Manager Strategic

Governance and Risk

Director Corporate Services,

former DERM

Chief Executive Officer

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Chief Executive Officer Karen Waldman BSc (Arch), BArch (Hons), MBA, GAICD Karen Waldman was the Chief Executive Officer of the Commission during 2011–12, with responsibility for its efficient and effective administration and operation. Karen has held the role from May 2010 to August 2012. Karen worked in water and electricity for over 20 years, mainly in New South Wales (NSW). More recently, Karen was involved in the implementation of water reform in SEQ in regulatory, planning and operational roles at the distribution-retail level. In NSW, Karen held various general manager positions at Integral Energy and was responsible for developing business strategy, economic regulatory outcomes, environmental and demand management and climate change plans and initiatives. Before working for Integral Energy, Karen was employed by Sydney Water, where she held a number of positions including Regional Manager Central Region and Senior Strategic Planner. Before joining Sydney Water, she was Managing Director of an architectural and construction company, specialising in project management.

General Manager, Regional Planning and Policy Abel Immaraj MSc Engineering, Diploma of Hydraulic Engineering Abel Immaraj joined the Commission in August 2011. Abel has more than 22 years of experience within the water industry in public, private and non-government sectors. Abel initially worked in the NSW Department of Water Resources and Department of Land and Water Conservation. In these departments, Abel managed natural resources with an emphasis on water. He led resource assessment, planning and review functions with multidisciplinary teams of scientific, technical and field staff. Later, as a member of the NSW Water Reform Task Force he helped transform water management in NSW through the development and implementation of the NSW Water Management Act 2000. In 1999 Abel became the General Manager of NSW State Water and then inaugural Chief Executive Officer of the NSW State Water Corporation, successfully transforming it from a government department to a corporatised commercial business, during times of a major flood and record drought. After moving to Brisbane in 2007 Abel advised the Australian Government on the Water Act 2000 and institutional arrangements for managing water in the Murray Darling Basin. Subsequently as Water Sector Director for Hyder Consulting he was responsible for the growth of its water consulting business and advised on water infrastructure projects across Australia. Abel is the General Manager, Regional Planning and Policy and in this role is responsible for providing policy and planning advice on regional water supply security, temporary alterations to dam full supply levels, supply infrastructure, demand management, water information management and drought response.

General Manager, Water Reform Gayle Leaver Bachelor of Arts, Australian and Comparative Studies, Griffith University, Brisbane, Australia Graduate Diploma in Education, GAICD Gayle Leaver joined the Commission in August 2007, working initially in demand and efficiency before moving into water reform. Gayle has more than 20 years of public sector experience, primarily in energy (including energy efficiency and gas market reforms such as third party access arrangements and CSG development) and water reform areas. Gayle is the General Manager, Water Reform and has broad ranging responsibilities covering market efficiency, including bulk water pricing, and the development and implementation of customer protection measures through the Customer Code. More recently, Gayle has implemented the CPI price cap at the distribution and retail level.

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General Manager, CSG Water Randall Cox BSc, MSc, Graduate Diploma in Public Management Randall Cox joined the Commission in October 2010. Prior to that Randall held director positions in water policy within the former DERM. He played a significant role in developing national water reform policy particularly in the areas of water entitlement systems, water resource planning and water trading. Randall had a key role in the development of both the Commonwealth and State management plans for the Great Artesian Basin, as well as the Great Artesian Basin Sustainability Initiative—a program to assist in the repair of old artesian stock water supply bores. Randall is a trained hydrogeologist. Before moving into policy roles, he carried out assessments of groundwater resources. Randall is the General Manager, CSG Water with responsibility for providing sound, evidence-based advice on management of the impacts of CSG extraction on underground water resources.

General Manager, Strategic Governance and Risk Danny Short CPA, BCom Danny Short joined the Commission in July 2011. Danny has over 22 years of experience in senior and executive management roles across a variety of corporate governance, financial management, performance and risk positions. Prior to joining the Commission, Danny worked in a number of roles across various Queensland Government departments including Public Works, Housing and Communities. Danny is a CPA and holds a Bachelor of Commerce and his previous role was as the Director of Finance, Housing, Homelessness and Properties within the former Department of Communities with responsibility for financial performance, management and strategy. Throughout his career, Danny implemented a range of governance measures, built frameworks to assist in assessing risk, and has had significant involvement with many stakeholder committees and key central agencies. The General Manager, Strategic Governance and Risk is responsible for strategic governance and risk management, and the provision of expert advice regarding external regulatory and compliance matters as they relate to the role of the Commission.

Director, Corporate Services, Department of Environment and Heritage Protection David Suthers David Suthers has worked in Queensland’s public sector for more than 20 years. David has worked in diverse areas across workforce management, finance, procurement, and information and communication technology support and systems. As the Director of Corporate Services, David led and managed the delivery of corporate operational and governance support to the Commission under a service level agreement. He was responsible for effective account, relationship and stakeholder management concerning the agreement.

Commission meetings The Commissioner, Chief Executive Officer, Executive Management Team, Executive Officer and the Director, Corporate Services attend Commission meetings. During 2011–12, the Commission met on 10 occasions.

Committees and advisory bodies The following Commission committees and advisory bodies met in 2011–12.

Audit and Risk Management Committee The role of the Audit and Risk Management Committee (ARMC) is to assist the Commissioner and Chief Executive Officer to discharge their duty to manage the Commission efficiently, effectively and economically and maintain appropriate systems of internal control and risk management. In addition, the committee provides oversight of the

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Commission’s internal audit function and external audit process, reviews the Commission’s financial statements, monitors compliance with legislative and regulatory requirements, and promotes a culture of lawful and ethical behaviour. The ARMC operates in accordance with the terms of its charter, which was developed in the context of the: • Financial Accountability Act 2009 • Financial and Performance Management Standard 2009 • Audit Committee Guidelines: Improving Accountability and Performance, December 2009 (Queensland

Treasury). The ARMC charter was reviewed during the year, in accordance with best practice, to ensure continuing compliance with relevant legislation, standards and guidelines. The ARMC is comprised of the Commissioner and an independent chair, Peter G Dowling. Mr Dowling is a Chartered Accountant and was previously a partner of international accounting firm Ernst & Young. He is a Fellow of CPA Australia, the Institute of Chartered Accountants in Australia and the Australian Institute of Company Directors. Mr Dowling was made a Member of the Order of Australia in 2007. He is a director of CUA, the Cooperative Research Centre for Infrastructure and Engineering Asset Management, CPA Australia, Credit Union Foundation Australia, Lexon Insurance, Superior Coal, SPYRUS and Virgin Blue’s aircraft leasing subsidiaries, and is the Queensland Honorary Consul for Botswana. He is also the Chair of the Sunshine Coast Regional Council’s Audit and Risk Committee, the Queensland Transport and Main Roads’ Audit and Risk Committee and the Queensland Crime and Misconduct Commission’s Audit Committee. The ARMC maintains effective working relations with the Commission, senior management, and internal and external auditors. In 2011–12 the committee met on five occasions—four regular meetings and one special meeting to review the Commission’s financial statements. Remuneration to the independent chair of the ARMC is determined at the discretion of the Commission in accordance with best practice. In 2011–12 remuneration to the chair totalled $10 230.

Underground Water Management Levy Expenditure Advisory Committee Section 360FA of the Water Act 2000 provides that the Commission’s underground water management functions under Chapter 3 of the Water Act 2000 be funded by a levy on petroleum tenure holders. Section 360FA of the Water Act 2000 provides that the Commission is to consult with a relevant advisory body on the planned expenditure that is to be recovered through the levy. The Expenditure Advisory Committee is established under Section 360C of the Water Act for that purpose. The role of the Expenditure Advisory Committee is to advise the Commission about its estimated costs for performing the Commission’s functions under Chapter 3 of the Water Act 2000. A Regulatory Assessment Statement, outlining the levy structure and estimated costs to be recovered through the levy, was developed by the Commission in consultation with the petroleum tenure holders and their peak body—the Australian Petroleum Production and Exploration Association. The amendments made to the Water Regulation 2002 enabled the establishment of the levy, whose structure is in accordance with the preferred option included in the Regulatory Assessment Statement. Currently, the majority of the Commission’s work in respect of its underground water management functions relate to petroleum tenures located within the Surat CMA. The levy reflects this work focus and apportions 95 per cent of the annual costs to petroleum tenures located within the Surat CMA. The Commission issued invoices in June 2012 for the 2011–12 costs and the first instalment of the seed funding provided by Government for the 2010–11 costs. The balance of the seed funding for the 2010–11 costs will be recovered over the following two financial years. The Commission will maintain the required financial data and tenure data to administer the levy and to issue quarterly invoices. For 2012–13 and each subsequent financial year, the Commission is to consult the Expenditure Advisory Committee, which will consider the estimated costs of planned expenditure for the underground water management functions, and then the Commission will seek the Minister's approval of the estimated costs. The Expenditure Advisory Committee is a government advisory body that was approved by the then Premier of Queensland in December 2011. The independent chair and members were appointed to the Committee by the Queensland Water Commissioner in January 2012.

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Membership of the Expenditure Advisory Committee reflects the composition of the former Surat Basin Engagement Group. The Chair of the Basin Engagement Group (John Cotter) is the Chair of the Expenditure Advisory Committee. Two of the members of the Expenditure Advisory Committee represent the petroleum and gas industry: Rick Wilkinson, the Chief Operating Officer of the Australian Petroleum Production and Exploration Association–Eastern Australia and Janet Hann, General Manager, CSG to LNG Project at Origin Energy. The other two members of the Expenditure Advisory Committee represent the broader interests of the agricultural/grazing sector and general community: Ian Burnett, President of AgForce Queensland and Peter Blundell, Chairman of the Queensland Murray–Darling Committee and Mayor of the Southern Downs Regional Council. The EAC met in August 2012.

Service Level Agreement Review and Management Committee The Service Level Agreement Review and Management Committee considered and helped resolve service delivery issues about corporate services and communication operations. The committee provided advice to the account managers for both agencies. The committee’s focus was on performance and procedural issues. It also contributed to the review and development of service level agreement obligations to ensure business requirements are addressed.

Shared Values Committee The Shared Values Committee generates and contributes to initiatives aimed at the implementation and promotion of shared values throughout the Commission. It acts as a conduit between senior management and staff to generate ideas and feedback relating to the Commission’s core values. The Shared Values Committee is comprised of: • the Chief Executive Officer (invitee) • a senior leadership representative • a human resource nominee • at least one staff representative from each business group. The Shared Values Committee generally meets on a monthly basis. Meeting times are planned and shared in a timely manner to give representatives every opportunity to attend. Action items from meetings are documented and circulated to members. Shared Values Committee activities include, but are not limited to: • promoting the Commission’s shared values and ethical culture • championing the gender and cultural diversity of the Commission • contributing to staff health and wellbeing strategies • coordinating coffee forums and business group presentations on topics of interest to staff • releasing a calendar of events to raise staff awareness of activities facilitated by the Committee. The coffee forums included presentations by business groups on topics such as the Bulk Water Price Path, Total Water Cycle Management Planning, the Statutory Market Rules, Coal Seam Gas, Flood Mitigation and the Commission of Inquiry. Coffee forums and information sessions were also held for health and wellbeing awareness and various annual cultural and diversity celebrations. The Shared Values Committee also initiated the 2012 round of influenza vaccinations for Commission staff. The Shared Values Committee coordinated and supported staff participation in the Queensland Corporate Games held 18–20 May 2012. The committee also plays a key role in facilitating staff contributions to major charities and in encouraging staff participation in major charitable events.

Expert advisory panel The Commission established an expert advisory panel in 2006 to provide independent advice on technical issues associated with the regulatory framework for purified recycled water and the Western Corridor Recycled Water Scheme.

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The panel also provides advice about technical issues associated with the treatment and use of purified recycled water, including: • water quality criteria for purified recycled water • development and review of the Manufactured Water Readiness Plan • the capability of the proposed technology • commissioning and validation requirements • ongoing monitoring requirements • responses to incidents in recycled water quality or system performance • reporting requirements for water quality • water quality standards, emerging chemicals of concern and source control as they may arise. The panel has internationally recognised expertise in ecotoxicology, environmental science, microbiology, and advanced water treatment. It contributes to ensuring that Australia’s first major purified recycled water project remains at the forefront of international expertise in the field of advanced water treatment. The Commission provides financial support to the panel, including remuneration for members’ attendance at meetings and an amount for travel. Honorarium payments made to panel members in 2011–12 totalled $11 925.94. Panel members in 2011–12 were: • Chair Professor Paul Greenfield AO • Professor Linda Blackall (microbiologist, Australian Water Management Centre, University of Queensland) • Professor Richard Bull (ecotoxicologist, Washington State University) • Professor David Hamilton (environmental scientist, University of Waikato) • Dr Zelle Hodge (past president of the Australian Medical Association Queensland) • Brian Priestly (ecotoxicologist, Australian Centre for Human Health Risk Assessment) • Dr Joan Rose (microbiologist, Michigan State University) • Harry Seah (advanced water treatment expert, Singapore).

Managing and monitoring performance The Commission manages its performance in line with the Queensland Government Performance Management Framework. Its strategic management cycle is an integrated approach to planning, budgeting, performance management and corporate governance. The Commission is committed to effective performance management as a critical component of its overarching Governance, Risk and Compliance Framework. Under the Performance Management Framework, the Commission ensures that the Queensland Government’s objectives for the community inform agency objectives and performance indicators, services and service standards. Key corporate documents such as strategic plans, budget documentation and annual reports are used to report on Commission performance.

Risk management The Commission’s risk management approach meets the international risk management standard, AS/NZ ISO 31000:2009. Risk management is embedded in business activities and systems—including strategic and operational planning, project management and other decision-making processes. As part of the strategic and operational planning process, strategic and operational risks were identified and assessed. Strategic risks were then incorporated into the Strategic Plan 2011–15. Operational risks have been captured in operational risk registers for each business group. Extreme and high level operational risks are reported monthly to the Executive Management Team. Low and medium operational risks are monitored by each business group on an ongoing basis as part of each business group’s operational plan.

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Strategic risks are monitored by both the Executive Management Team and the Commission on a monthly basis through business group performance reports. Strategic risk reports, incorporating the risk treatment and effectiveness of the mitigation strategies, are also provided to the ARMC on a quarterly basis.

Internal audit The Commission’s internal audit function operates under a formal charter that provides for the nature, role, status, authority and responsibility of internal audit. The charter was developed in the context of the: • Financial Accountability Act 2009 • Financial and Performance Management Standard 2009 • Audit Committee Guidelines: Improving Accountability and Performance 2009 (former Queensland Treasury) • International Professional Practices Framework (Institute of Internal Auditors, January 2009). In 2011–12, the Commission reviewed the charter to ensure it is contemporary and provides for the effective, efficient and economic operation of the Commission’s internal audit function. The internal audit function’s primary aims are to provide independent, objective assurance to the Commission—through the ARMC—on the state of risks, internal controls and organisational governance, and to provide management with recommendations to enhance current systems, processes and practices. Its secondary aim is to assist the Chief Executive Officer and senior management in the effective discharge of their responsibilities to the Commission—in the areas of risk management, internal control and corporate governance. It does this by providing independent appraisals of the adequacy and effectiveness of the risk management and internal control systems and governance frameworks. The Commission allocates its internal audit resources based on an annual internal audit plan that takes into account: • qualitative risk assessments of operations performed in consultation with the Executive Management Team • strategy and business objectives • any special tasks or projects requested by the Chief Executive Officer, the Commissioner or the ARMC, having

regard to the internal audit service provider’s primary responsibilities • input from the Chief Executive Officer, the Commissioner or the ARMC • input from the Commission’s external auditor.

External scrutiny The Commission is an independent statutory body with probity and propriety obligations. It is accountable for decision making in achieving its goals and discharging its statutory responsibilities. The Commission is subject to independent scrutiny through external audit, internal audit and special reviews. The ARMC reviews the results of independent external audits undertaken by the Queensland Audit Office on behalf of the Auditor-General, and those audits outsourced to internal audit consultants.

Shared services During 2011–12, Queensland Shared Services provided financial, human resource and facilities functions to the Commission. The activities of Queensland Shared Services are reported in the annual report of the Department of Housing and Public Works.

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People The Commission’s human resource strategic plan is to provide a safe and healthy work environment where the diversity, capability and performance of staff is maximised and recognised. To achieve its strategic outcomes, priority actions were undertaken in three key focus areas: • creating the right jobs and finding the right people • developing the performance of our people • looking after and valuing people. In 2011–12, the Commission continued to focus on strengthening its organisational structure and improving our strategic capabilities. It sought to ensure a sustainable team to assist in progressing its priorities and performing its functions. This enabled the Commission to provide improved service delivery to stakeholders by bringing key areas together. As at 30 June 2012, the Commission employed 65 full time equivalent officers in a variety of professional and administrative roles. Its workforce profile is made up of 57 per cent females and 43 per cent males. The permanent retention rate for the year was 86 per cent and the permanent separation rate was six per cent. In 2011–12, there were no voluntary early retirement packages taken by employees and no employees were made redundant or retrenched. The Commission did not opt into the former government’s Voluntary Separation Program. Employee performance management is an integral part of the Commission’s strategic management cycle, and includes strategies for induction, performance development, career development and recognition. The Commission’s induction program provides employees with an overview of its business and the terms and conditions of their employment. It requires employee workplace behaviour and work performance to be in accordance with the Code of Conduct for the Queensland Public Service, section 26 of the Public Service Act 2008 (work performance and personal conduct principles), and the Anti-Discrimination Act 1991. In 2011–12, five induction programs were conducted with an attendance of 52 staff. The Commission also conducted site visits to various SEQ water infrastructure sites including Wivenhoe Dam, Hinze Dam, Bundamba Advanced Water Treatment Plant, Molendinar Water Treatment Plant Nerang, Tugun Desalination Plant Gold Coast and Mt Crosby Water Treatment Plant as part of an educational and induction program. The site visits provided Commission staff with greater insight into SEQ water operations and exemplified the link between water catchments, storage and treatment as part of the broader water cycle. In 2011–12, five site visits were conducted with an attendance of 50 staff. Commission employees have the opportunity to participate in a number of leadership and development programs, including Emerging Leaders, Inspiring Executive Leadership, and various Australia and New Zealand School of Government educational courses. In 2011–12, there were 82 individual attendances at training courses, conferences and seminars.

A safe workplace The Commission is committed to ensuring the health and safety of its employees. In 2011–12, no lost time was recorded for work-related injuries. The Commission has a designated Work Health and Safety (WHS) Adviser. The Commission reaffirmed its commitment to WHS with a new Statement of Commitment in October 2011 and developed and implemented a suite of workplace health and safety policies and procedures (i.e. Workplace Health and Safety Policy; Injury and Illness Management; Workers' Compensation and Case Management; Field Operations Procedure; and First Aid Management) to support the Commission staff in utilising the Commission’s workplace health and safety systems. A WHS Audit was conducted of the Commission's workplace in December 2011. As part of the WHS Audit, 11 safety concerns were identified, reported and remedied. The 11 safety concerns that were remedied were of a low-risk nature. The Commission has a designated Emergency Response Team and provides fire safety training to Commission staff, in accordance with the Building Fire Safety Regulation 2008.

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Equal employment opportunity The Commission provides equal employment opportunities for all people on an equal and unbiased basis, including equal employment opportunity target groups (women, Aboriginal and Torres Strait Islanders, people from non-English speaking backgrounds and those with a disability).

Employee assistance and support The Employee Assistance Program is a personal counselling service—provided by PPC Worldwide—made available to employees to assist with the resolution of personal and work-related problems that may affect work performance or quality of life. The Employee Assistance Program provides free, short term, confidential counselling (face-to-face, telephone and online) to all Commission employees. Employees can voluntarily use the service with complete confidentiality.

First aid Five Commission employees are trained to deliver first aid, including cardio pulmonary response and defibrillation, in the event of an emergency. The Commission maintains a number of first aid kits in central workplace locations.

Influenza immunisation Each year the Commission encourages employees to undertake immunisation to reduce the spread of influenza and assist in the reduction of flu-related absenteeism. In 2011–12, 44 employees participated in the voluntary immunisation program.

Ethics principles and values Employees receive induction training and other information on the Code of Conduct. The Code is available on the intranet and also in hard copy format to employees and members of the public on request. The Commission continually reviews its suite of human resource management policies and procedures to ensure they have proper regard to ethics principles and values and the new Code of Conduct.

Public Interest Disclosures With the repeal of the Whistleblowers Protection Act 1994 and the introduction of the Public Interest Disclosure Act 2010 (PID Act) on 1 January 2011, the way in which public interest disclosures are to be publically reported has changed. From 1 January 2011 agencies are no longer required to report public interest disclosures in annual reports. Under section 61 of the PID Act, the Public Service Commission (PSC) is now responsible for the oversight of public interest disclosures and preparing an annual report on the operation of the PID Act. From 1 January 2011 agencies are required to report information about public interest disclosures to the PSC. The PSC will prepare an annual report on the operations of the PID Act and the information provided by agencies. The annual report will be made publicly available after the end of each financial year.

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Disability Service Plan The Commission recognises that people with a disability have the same rights as all other members of the Queensland community, including the right to access government services. The Commission reviewed and updated its Disability Service Plan for 2011–12. The plan outlines the practices used to work toward providing appropriate services and facilities for people with a disability, their families and carers. During 2011–12, the Commission continued to focus its efforts on: • information about services • accommodation meeting the needs of people with a disability • the attitudes and awareness of Commission employees • complaints procedures • recruitment of people with a disability.

Multicultural Action Plan The Commission acknowledges the special position of the Aboriginal people and Torres Strait Islanders as the first people of the land, and recognise their rich diversity in cultures and languages and contribution to Queensland. It is committed to multiculturalism, including social justice and equity for disadvantaged non-English speaking communities, women and young people of culturally and linguistically diverse backgrounds, and newly arrived refugees and migrants. The Commission’s Multicultural Action Plan outlines the practices used to enhance cohesion and support this rich diversity. During 2011–12, the Commission continued to focus its efforts on: • supporting communities with improved engagement strategies • strengthening multiculturalism in the Queensland Public Sector utilising human resource management policies

and procedures that are inclusive and promote cultural diversity and cross-cultural awareness • community relations and anti-racism through improved Commission awareness and communication with people

from culturally and linguistically diverse backgrounds.

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Glossary Term Definition

Agency objective The effect or impact that an agency seeks to have on its clients, stakeholders, or the broader community. Objectives should collectively contribute to whole-of-government objectives for the community.

Annual report A written report on the operations of the agency during the financial year, as prescribed by section 63 of the Financial Accountability Act 2009.

Catchment management

The area that feeds water into a water source or storage—for example, rivers, drainage lines or dams—is known as a catchment. Catchments can supply water for a range of purposes including residential use. Catchment management seeks to maintain the quality of the water flowing into a catchment.

Council of Mayors—South East Queensland

The Council of Mayors—South East Queensland was established in 2005 as an independent advocacy organisation to represent the interests of Australia’s fastest growing region–South East Queensland . The membership of the Council of Mayors—South East Queensland consists of the mayors representing 10 of the local governments of South East Queensland; Brisbane, Gold Coast, Ipswich, Logan and Redland City Councils and Lockyer Valley, Scenic Rim, Toowoomba, Somerset and Sunshine Coast Regional Councils.

Consumer Price Index (CPI)

An index which provides a measure of the change in the average cost of a standard basket of retail goods by relating the cost in the current period to that of a base period. The CPI is used as a measure of inflation.

Cumulative management area (CMA)

An area where the impacts on water levels in aquifers caused by individual coal seam gas operations overlap can be declared to be a cumulative management area.

Demand management

Any program that reduces water consumption and the demand for water from the region’s bulk water sources. Demand management programs may include water use efficiency measures, reductions in water losses, water trading to make better use of existing supplies, and substitution of existing supplies with alternative supplies such as rainwater tanks, recycled water and stormwater.

Department of Energy and Water Supply

The Department of Energy and Water Supply portfolio benefits Queenslanders by delivering a sound policy, planning and regulatory environment to support cost effective energy and water supply services that underpin economic and social prosperity.

Department of Environment and Resource Management (DERM)

The former department responsible for conserving, protecting and managing the state’s environment and natural resources. DERM provided corporate operations, corporate governance and communications support to the Queensland Water Commission under a service level agreement.

Department of Environment and Heritage Protection (EHP)

Formerly DERM, this newly created department is responsible for managing the health of the state’s environment and identifying and conserving the state’s heritage places. EHP provided corporate operations, corporate governance and communications support to the Queensland Water Commission under a service level agreement.

Distributor-retailer Integrated retail and distribution authorities to deliver water services and wastewater services to customers within particular geographical areas. The distributor-retailers are: • Queensland Urban Utilities—servicing Brisbane, Ipswich, Scenic Rim, Somerset

and Lockyer Valley • Allconnex Water—servicing Gold Coast, Logan and Redlands • Unitywater—servicing the Sunshine Coast and Moreton Bay.

Government objectives for the community

The Financial Accountability Act 2009 (section 10) requires the Premier to prepare and table a statement of the government’s broad objectives for the community including details of arrangements for regular reporting to the community about the outcomes achieved against those objectives.

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Term Definition The Government’s statement of objectives for the community are to:

• Grow a four pillar economy (through agriculture, tourism, resources and construction)

• Lower the cost of living for families by cutting waste • Deliver better infrastructure and better planning • Revitalise front line services for families • Restore accountability in Government.

Level of Service objectives Includes the maximum duration, frequency, and severity of water restrictions that may be expected by end users of the water.

Machinery-of-government This term is used to describe realignments of responsibilities across government agencies.

ML A megalitre or one million litres.

Operational plan An agency’s operational plan provides for the services (projects and activities) the agency intends to deliver during the plan’s timeframe (one year). It also includes details about performance information that allows the accountable officer to assess performance in delivering services (projects and activities) (Financial Accountability Act 2009, s9).

Performance indicator Measures the extent to which agencies are achieving their objectives.

Performance information A generic term used to describe information about the performance of an agency or the government at any level of the performance management framework.

Performance management Considered to be a system which integrates organisational strategic management, performance information, evaluation, performance monitoring, assessment, and performance reporting.

Performance management framework

The framework is designed to improve the quality, analysis and application of performance information to identify and address risks and opportunities for agencies, government and the community.

Permanent retention rate Means the percentage of permanent employees still employed after a period of time. For example, if an organisation had 100 permanent employees 12 months ago and 90 of those employees are still employed, the permanent retention rate is 90 per cent.

Permanent separation rate Calculated by dividing the number of permanent employees who separated during a period of time by the number of permanent employees in the organisation. For example, if 12 permanent employees departed from an organisation of 100 employees over a period of time the permanent separation rate would be 12 per cent.

Permanent Water Conservation Measures

Low level water restrictions that were introduced across SEQ on 1 December 2009—the first time that common restrictions had applied across the region.

Portfolio A group of departments and agencies for which a Minister is responsible.

Purified recycled water Purified recycled water is wastewater that has been treated to a very high standard through a seven barrier process. The process uses world class technology and a strict testing regime to ensure the safety of the water, and provides multiple opportunities to identify and fix any problems that might occur.

Queensland Water Commission (Commission)

The Commission is a statutory body. Under the Water Act 2000, the Commission’s main functions are to do the following for the SEQ region and designated regions: • advise the Minister on matters relating to water supply and demand

management for water • advise the Minister on the delivery of desired levels of service objectives for

water supplied to the SEQ region and designated regions • facilitate and implement regional water security programs • ensure compliance with the programs and with Commission water restrictions

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Term Definition and to: • advise the Director-General, EHP on matters relating to impacts on

underground water caused by the exercise of underground water rights by petroleum tenure holders

• establish and maintain a database of information about underground water • prepare reports for Cumulative Management Areas.

Regional Water Security Program

As per section 360M of the Water Act 2000,

(1) Within four months after receiving, under division 2, advice by the Commission for the SEQ region or a designated region, the Minister must make and publish—

(a) a report outlining the Minister’s response to the Commission’s advice; and

(b) a regional water security program to achieve water security for the region.

(2) The program must make provision about the matters mentioned in section 360J(1).

Service standard A standard of efficiency and effectiveness to which an agency will deliver services within its budget. Standards define a level of performance that is appropriate for the service and is expected to be achieved.

Service areas Service areas are the deliverables that will help an agency to achieve its objectives. They describe the areas in which an agency delivers services to its clients at a level appropriate to the agency.

South East Queensland (SEQ)

As defined in the Water Act 2000 s341,

(1) the SEQ region is—

(a) the local government areas of the following local governments— Brisbane City Council Gold Coast City Council Ipswich City Council Lockyer Valley Regional Council Logan City Council Moreton Bay Regional Council Redland City Council Scenic Rim Regional Council Somerset Regional Council Sunshine Coast Regional Council; and

(b) any local government area, or part of a local government area, adjacent to a local government area mentioned in paragraph (a) and designated by gazette notice.

(2) The SEQ region also includes Queensland waters adjacent to any of the local government areas mentioned in subsection (1).

South East Queensland Regional Plan 2009–31 (SEQ Regional Plan)

The purpose of SEQ Regional Plan is to manage regional growth and change in the most sustainable way to protect and enhance quality of life in the region.

SEQ Service Provider SEQ service provider is a term used for the water businesses in SEQ which, from 1 July 2012, comprise the following: • distributor retailers (being Queensland Urban Utilities and Unitywater) servicing

the council areas of Brisbane, Ipswich, Lockyer Valley, Somerset, Scenic Rim, Sunshine Coast and Moreton Bay; and

• council water businesses established after the break up of Allconnex Water, the former distributor retailer (being the businesses of the City Councils of Gold

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Term Definition Coast, Logan and Redland).

SEQ Water Grid Manager The SEQ Water Grid Manager was established under section 6 of the South East Queensland Water (Restructuring) Act 2007. The SEQ Water Grid Manager purchases water services from Seqwater and LinkWater and sells water to the three distributor-retailers.

SEQ Water market rules As per section 360ZCX of the Water Act 2000

(1) The Minister may make rules about the operation of the Market (the market rules).

(2) The market rules are a statutory instrument under the Statutory Instruments Act 1992, but are not subordinate legislation.

As the rules administrator, the Commission is responsible for administration and enforcement of the market rules.

SEQ Water Strategy A plan, prepared by the Commission, to ensure the medium to long-term sustainability of water supply for SEQ.

Strategic plan A short, concise, forward-looking document used by an agency to set its direction, align the agency with the government’s objectives for the community and provide objectives and strategies for the agency.

System Operating Plan

(SOP)

A plan made under section 360V of the Water Act 2000 to give effect to the Regional Water Security Program. The System Operating Plan describes rules for operating water supply infrastructure in order to achieve the desired Level of Service objectives, as specified in the Regional Water Security Program.

Target 200 A voluntary regional residential consumption target of 200 litres per person, per day.

Total water cycle management (TWCM)

Total water cycle management involves the integration of land use and infrastructure planning across SEQ as a whole and for major development areas, local areas and specific sites.

Vision Specifies what an agency hopes to become or create. A vision statement takes into account the current status of the agency and serves to point the direction of where the agency wishes to go.