STATEMENT OF CORPORATE INTENT 2008/09 · • Implement lessons learnt from 2007 pricing dispute...

STATEMENT OF CORPORATE INTENT 2008/09

COMMERCIALLY SENSITIVE MATERIAL DELETED Prepared by the Directors and Management of Ports Corporation of Queensland Limited ACN 126 302 994 for the shareholding Ministers • The Treasurer; and • The Minister for Transport, Trade, Employment & Industrial Relations

COMMERCIAL IN CONFIDENCE This document contains confidential matter relating to the business affairs and financial interests of Ports Corporation of Queensland and relevant parts of its contents cannot be disclosed by any government agency in response to a Freedom of Information (FOI) request pursuant to the exemptions contained in Part 3, Division 2 of the FOI Act.

Ports Corporation of Queensland Limited Statement of Corporate Intent 2008/09 Commercial in Confidence E09/41551

Ports Corporation of Queensland Limited Statement of Corporate Intent 2008/09 Commercial in Confidence E09/41551 1

CONTENTS PART ONE: CORPORATE OBJECTIVES AND STRATEGIES........................................................... 2 1.1 Core Business........................................................................................................................ 2 1.2 Corporate Objectives ............................................................................................................. 3 1.3 Operational Objectives........................................................................................................... 3 1.4 Corporate Strategies .............................................................................................................. 4 1.5 Performance Drivers .............................................................................................................. 6 1.6 Corporate Performance Outcomes ........................................................................................ 7 PART TWO: GOC ACT REQUIREMENTS ......................................................................................... 10 2.1 Financial Targets.................................................................................................................. 10 2.2 Non-financial Performance Targets ..................................................................................... 10 2.3 Assumptions......................................................................................................................... 11 2.4 Community Service Obligations (CSOs).............................................................................. 12 2.5 Employment and Industrial Relations Plan .......................................................................... 12 PART THREE: ADDITIONAL MATTERS............................................................................................ 13 3.1 Financials ............................................................................................................................. 13 3.2 Assets................................................................................................................................... 16 3.3 Expenditure Programme ...................................................................................................... 17 3.4 Other Undertakings .............................................................................................................. 18 3.5 Remuneration Arrangements ............................................................................................... 21 3.6 IR/HR Philosophy and Direction and Significant Emerging Issues...................................... 21 3.7 Demand Management.......................................................................................................... 21 3.8 Pricing Review ..................................................................................................................... 22 3.9 Implementation of Port Security........................................................................................... 23 3.10 Infrastructure Maintenance .................................................................................................. 24 3.11 Disposal of Assets................................................................................................................ 25 PART FOUR: PERFORMANCE AGREEMENT.................................................................................. 26 PART FIVE: ATTACHMENTS ATTACHMENT 1 - Employment and Industrial Relations Plan ATTACHMENT 2 - Weighted Average Cost of Capital ATTACHMENT 3 - Government Policies and Guidelines


PART ONE: CORPORATE OBJECTIVES AND STRATEGIES The Statement of Corporate Intent (SCI) outlines strategies that will be implemented in 2008/09, forming part of the longer-term Corporate Plan five-year strategic direction to achieving the Corporate Vision over the period 2008/09 to 2012/2013.

1.1 Core Business

Ports Corporation of Queensland Limited’s (PCQ’s) core business in fulfilling its role as a port authority under section 275 of the Transport Infrastructure Act 1994, including its port authority functions and powers, is: • Port Operational Management

• Operation of ports; • Property assets; • Berth allocation; • Facilitation of ship movements; and • Port security.

• Trade Facilitation, Port Promotion and Marketing

• Expanding existing trades; • Seeking diversified trades in existing ports; • Developing greenfield opportunities; • Understanding our customers and their needs; • Building and promoting PCQ’s good corporate image; and • Developing the vision for each port

• Strategic Port Planning

• Land Use Planning; and • Infrastructure Planning.

• Port Infrastructure

• Wharves and terminals; • Channels (if necessary); and • Breakwaters (if necessary).

• Environmental Management

• Project environmental and planning approvals; • Environmental Management Plans; and • Emergency and oil spill response.

• Assessment Manager for Strategic Port Land PCQ undertakes these functions in the range of Queensland ports listed below and works with customers/developers and government to maintain its capability to manage any of the State’s greenfield port sites. PCQ’s responsibilities are undertaken in the ports of: Trading Ports • Hay Point, Abbot Point, Lucinda, Mourilyan, Cape Flattery, Weipa, Karumba and Skardon River • Primarily bulk export commodity ports • Generate the majority of PCQ’s trade, with revenue and expenses managed on a commercial

basis. Community Ports • Thursday Island, Quintell Beach • Service communities where PCQ as a port authority adds value • Managed on the basis that:

- they be self sufficient, as far as possible;


- the Government give consideration to capital contributions, as appropriate; - managed on a cost recovery basis; and - no dividend is payable on income generated from the operations of the community ports

during the currency of this document.

Cooktown • Non-trading port. Currently generates no income for PCQ but is held by PCQ for strategic

purposes should a commercial or community need arise. Maryborough • Non-trading port. Currently generates minimal income for PCQ but is held by PCQ for strategic

purposes should a commercial or community need arise. Burketown • Non-trading port. Currently generates no income for PCQ but is held by PCQ for strategic

purposes should a commercial or community need arise. PCQ has undertaken the transition from a statutory GOC to a company GOC, at 1 July 2007. 1.2 Corporate Objectives In fulfilling its role and functions as a port authority under section 275 of the Transport Infrastructure Act 1994 and consistent with the medium to long-term corporate objectives as detailed in its 2008/09 to 2012/2013 Corporate Plan, PCQ’s corporate objectives for 2008/09 are: Objective 1: Improve the competitiveness of PCQ ports by: • Increasing efficiency; • Trade maximisation; • Consistent and commercial pricing; • Minimising the impact of port operations and development on the natural and social environment;

and • Maintaining condition of facilities. Objective 2: Undertake strategic planning of facilities and services required to meet projected demand by: • Anticipating Port Demand • Securing appropriate assets and necessary approvals to allow planned development • Developing port infrastructure and services to meet market demands 1.3 Operational Objectives • Complete the major capital works program on time and within budget ie

o Abbot Point X25 Expansion; and o Abbot Point X50 Expansion (subject to approval by shareholding Ministers. Submission is

currently under review). • Attracting new business

o Complete feasibility studies and seek commitments for Abbot Point X110 Expansion; o Continue preparation of Environmental Impact Statement (EIS) for X110 Expansion; o Conduct feasibility studies into Abbot Point multi cargo facility; o Investigate potential for Abbot Point alumina refinery; o Encourage Queensland Energy Resources (QER) shale oil exports through Abbot Point; o Examine the potential of Aurukun bauxite exports; o Investigate diversified trades for Mourilyan; and o Maintain proactive involvement in Townsville-Bowen-Mt Isa Northern Economic Triangle


Delivering Opportunities The unprecedented demand for export coal has presented significant business opportunities (and challenges) for PCQ, particularly at Abbot Point. The government has already committed to the expansion of the Abbot Point terminal to a 25 million tonne per annum (mtpa) capacity in what PCQ refers to as the X25 Expansion (ie expansion to 25 mtpa). Government is currently considering PCQ’s proposal for the X50 Expansion. PCQ expects government will be considering proposals to develop the Goonyella to Abbot Point Expansion (GAPE) project (including the “northern missing link”) This will provide a direct rail connection between the Goonyella and Newlands rail systems allowing coal mines in the Bowen Basin that currently use the Goonyella rail system to export coal through the Abbot Point Coal Terminal. PCQ believes this activity will lead to a requirement for a coal terminal at Abbot Point potentially in excess of 100 mtpa and considers that planning needs to progress now so those opportunities can be captured at the earliest opportunity and the associated economic benefit can flow to the State. Besides coal, this Statement of Corporate Intent highlights other significant new trades that PCQ believes are ideally suited to Abbot Point. PCQ believes it must increase resources to capture these opportunities. This has been a key driver for the change in organisational structure which is dealt with in further detail in the Employment and Industrial Relations Plan. Whilst Abbot Point opportunities both in size and economic impact are large PCQ is also focussing on opportunities in other ports such as Mourilyan which are equally important as Abbot Point in a regional sense. PCQ’s business is diverse and many significant activities and projects (although not of the massive scale of Abbot Point) related to PCQ’s other ports are documented within this plan. The Board and management are committed to ensure it does not lose focus on these activities. The proposed organisational change is designed to ensure focus on PCQ’s other ports is not swamped by Abbot Point. 1.4 Corporate Strategies Consistent with its 2008/09 to 2012/2013 Corporate Plan, PCQ’s key corporate strategies for achieving its corporate objectives for 2008/2009 are: 1.4.1 Corporate Objective 1: Improve the competitiveness of PCQ ports by: 1.4.1.1 Increasing Efficiency Strategies • Analysing the efficiency of individual facilities which are controlled by PCQ; • Ensuring terminals which are controlled by PCQ are operated to provide high productivity and

utilisation of invested capital; • Determining appropriate standards of facilities; • Seeking to reduce the cost and increase the effectiveness and efficiency of other service providers

within ports, eg. pilotage and towage; • Further implementing Dynamic Under Keel Clearance (DUKC) system in PCQ ports and other

innovations to enhance cargo movements; • Enhancing continuous improvement processes; and • Continued development of benchmarking. Initiatives 2008/09 • Review stockpiling arrangements for Abbot Point for X50 and over; • Develop multi-user terminal regulations for Abbot Point; • Consider DUKC system for Weipa; and • Improve current monitoring capability at Weipa.


1.4.1.2 Trade Maximisation Strategies • Seeking diversified trades; • Expanding existing trades; and • Improving marketing processes. Initiatives 2008/09 • Work with Queensland Rail regarding development of the northern missing rail link to service

Abbot Point; • Facilitate coal shipments through Abbot Point

• Via North Coast line • Via road/rail links

• Progress EIS for X110 Expansion of Abbot Point Coal Terminal; • Facilitate Chalco’s potential investments in Aurukun bauxite shipment and East Coast Refinery;

and • Conduct feasibility study into establishment of a multi cargo facility at Abbot Point. 1.4.1.3 Consistent and Commercial Pricing Strategies • Determining asset valuation strategies; • Developing risk parameters; and • Understanding value to customer and shareholder return expectations. Initiatives 2008/09 • Implement lessons learnt from 2007 pricing dispute into future agreements and negotiations. 1.4.1.4 Minimising the impact of port operations and development on the natural and social environment Strategies • Establishing Environmental Management Programs recognised as comparable with the world’s

best in the port industry; • Continuing to update Environmental Management Plans for all ports; • Monitoring environmental resources and values within ports; • Managing potential impacts of port developments through preparation of project Environmental

Management Plans or EISs; • Continuing improvement in the port environment through rehabilitation and revegetation programs;

and • Continuing to consult with communities where relevant. Initiatives 2008/09 • Maintain external certification of Environmental Management System to AS/ISO14001:2004; • Ensure all significant projects have a project Environment Management Plan (EMP) developed; • Carry out environmental audits of port offices and of major projects; • Greenhouse gas emissions will be recorded and opportunities sought to reduce emissions through

analysis of new projects and seeking changes in energy use practices; • Progress preparation of an EIS for the X110 Expansion of the Abbot Point Coal Terminal; • Continue environmental baseline investigations for Abbot Point multi-cargo facility. Commence

EIS for project if required; • Monitor noise and dust at Hay Point; • Carry out water quality monitoring of port waters and testing of sediment prior to dredging; and • Issue an annual Sustainability Report. 1.4.1.5 Maintaining Condition of Facilities Strategies • Developing and implementing long-term maintenance programs including maintenance

inspections at Hay Point, Abbot Point, Mourilyan, Lucinda, Cape Flattery, Weipa, Karumba, Thursday Island and Quintell Beach.


Initiatives 2008/09 • Implement recommendations of Facilities And Assets Risk Management (FAARMS) system

reports for Abbot Point and Cape Flattery; • Review maintenance and inspection program for critical Abbot Point shiploader; and • Refurbishment of Stacker/reclaimers at Abbot Point. 1.4.2 Corporate Objective 2: Undertake strategic planning of facilities and services required to meet projected demand by: 1.4.2.1 Anticipating Port Demand Strategies • Monitor minerals growth; • Monitor sugar industry developments; and • Develop/review port planning documents for all ports, including infrastructure plans, land use

strategies and environmental plans. Initiatives 2008/09 • Development of concept plan for Abbot Point Port Precinct; • Contribution to industrial land development at Bowen/Abbot Point; • Revise Abbot Point Master Plan; • Prepare feasibility and seek commitments for Abbot Point X110 Expansions; • Identify additional land for port development and buffer at Mourilyan; • Coordinate with key stakeholders to jointly market and identify opportunities for the Townsville-

Bowen-Mt Isa Northern Economic Triangle; and • Provide for kaolin shipments from Skardon River. 1.4.2.2 Securing appropriate assets and necessary approvals to allow planned development Strategies • Acquire necessary land holdings in a recognised and secure tenure, and have them defined as

Strategic Port Land; • Seek necessary planning and environmental approvals; • Carry out preliminary geotechnical, hydrographic and environmental surveys; and • Conduct cultural heritage assessments of PCQ land. Initiatives 2008/09 • Secure strategic parcels of land to incorporate as port land or essential buffer to lessen impact

between communities and port properties; • Maintain Louisa Creek Property Purchase program; and • Progress environmental approvals for the X110 Expansion of Abbot Point. 1.4.2.3 Developing port infrastructure and services to meet market demands Strategies • Construct facilities and associated port infrastructure (eg channels) to meet demand subject to

commercial returns; and • Ensure provision of services required to operate the port. Initiatives 2008/09 • Complete Abbot Point X25 Expansion. 1.5 Performance Drivers Key market Issues: • Sustainability of the current commodity boom and the related demand for transport infrastructure; • Availability of suitably qualified human resources, contractors and consultants; • Limitations on ability to respond quickly to changing market demand due to regulatory approvals

(eg environmental, planning); and • Availability of suitable port land to support port-related developments.


Business Risks (refer to section 3.4.6 Risk Management for further information): • Injury to public on PCQ’s public facilities; • PCQ’s operations and possibly existence may be adversely affected by poor relationships with

Stakeholders; • Lack of availability of competent contractors and tradespeople; • Port operations and development may be adversely affected as a result of protests or actions by

interested groups; and • Climate change impacts on port infrastructure. Emerging Issues: • Development of Townsville-Bowen-Mt Isa Economic Triangle and Abbot Point’s role as future

economic hub; • PCQ’s role in providing infrastructure to support the Aurukun bauxite project; • Potential impact of climate change initiatives on key trades; • Capacity constraints at Hay Point inhibiting coal mine development; • Review of port competition and regulations relating to Council of Australian Governments’ initiatives; • Increasing infrastructure costs due to demand driven materials and labour cost rises; and • More stringent environmental requirements on new projects, increasing costs etc. 1.6 Corporate Performance Outcomes In accordance with the above corporate objectives, PCQ undertakes to achieve the following corporate performance outcomes in 2008/09:

Key Corporate Performance Area

Objectives/Outcomes Performance Measures/ Outcomes for 2008/09

ENGINEERING

Capital Development

Maintain PCQ’s reputation of delivering large port expansions to meet user needs and assist the state’s economic development. All committed capital projects are planned including time and resources required to complete and defined criteria to measure fitness for purpose.

Projects progressed to agreed plan (time and budget) and, if completed, delivered within budget and time and fit for purpose. Close out reports are prepared for each completed project.

Maintenance system in place which: • Identifies appropriate

maintenance standards; • All PCQ owned assets are

included; and • Optimises whole of life

maintenance costs whilst ensuring assets remain fit for defined purpose.

Documented asset management system established for all PCQ owned port assets.

Program maintenance audits and works for the period. Items requiring action identified in audits added to maintenance works program.

Audit program completed.

Maintenance

Maintenance works progressed as planned (time and budget) and, if completed, delivered within budget and time and fit for purpose.

All identified works are planned including time and resources required to complete (refer 3.3.1)




Maintain PCQ’s reputation as an environmentally responsible developer and operator of infrastructure.

The following measures to ensure a sound performance will be carried out: • PCQ maintains ISO 14001

certification; • PCQ issues annual sustainability

report; • PCQ continues to have a

comprehensive environmental monitoring program and makes results public; and

• Audit port operations and projects.

Informal feedback on reputation will be obtained to gauge the effectiveness of measures.

Environment

Nil Licence/Permit breaches and nil significant environmental incidents. Environmental licences and permits held as required to support ongoing operation and new projects

Systems in place to audit compliance (including Environmental Management System certified to ISO14001, with external auditing).

Workplace Health & Safety

Improvement in safety performance continues, with any areas of identified deficiency being addressed in a timely manner. The target is nil lost time injuries.

Systems are in place to ensure PCQ facilities and employee skills are maintained lessening the risk of workplace injuries by: • Safety management system

based on AS 4801 is maintained;

• Safety audits of PCQ workplaces undertaken and issues identified are resolved in a timely fashion; and

• New employees are appropriately inducted and training needs of employees, to enable them to work safely, are met.

Ensure security in the ports achieves required outcomes in a cost effective manner.

Hold regular Port Security Committee meetings in the ports. No significant adverse findings from Office of Transport Security (OTS) audits. No significant security incidents as a result of failure of systems. Carry out security audits in each of PCQ’s regulated ports annually.

Have appropriate response systems in place for a security incident.

Hold exercises and provide training to ensure an effective response (refer 3.9).

Security

Maintain OTS approval for all security regulated PCQ ports.

Review and adjust security plans as required to ensure effectiveness. Seek OTS approval for changes.




Customer/Stakeholder Service

Positive or improved customer and stakeholder relationships evidenced by regular reporting. Additional trades or increased volumes in existing trades secured for PCQ ports.

Feedback on reputation will be obtained to gauge the effectiveness of measures (refer 2.2). Volume increases in PCQ ports (refer 2.3).

Profitability

PCQ profit before tax and dividend is at least $16.7 Million

Profit is to be monitored on a port by port basis.

Return on Assets

Move towards achieving corporate target.

Return is to be monitored on a port by port basis with a long term rate of return established on a port by port basis. Accounting rate of return of assets for 2008/09 is at least 4.8%

Staff Management

The value to PCQ of employee effort increases. PCQ continues to be an employer of choice.

A workforce plan exists to ensure PCQ meets its future demands including: • Identifying future skill

requirements to meet business objectives, addressing gaps by planned development/training or up skilling by new targeted employment or strategic use of consultants; and

• Succession planning.


PART TWO: MANDATORY MATTERS - GOC ACT REQUIREMENTS

2.1 Financial Targets In accordance with the above corporate objectives, PCQ undertakes to achieve at least the following performance targets in 2008/09:

Performance Targets

2008/09 Budget

2006/07 Actual

2007/08 Budget

2007/08 Est Actual

• EBIT

$39.4M $20.25M $30.04M $25.7M

• NPAT

$11.7M $11.1M $14.02M $11.6M

• Return on Equity1

3.29% 4.35% 5.46% 3.44%

• Return on Total Assets2

4.88% 4.82% 6.67% 4.31%

Adjusted for IFRS impacts 1 Calculation = NPAT/average equity 2 Calculation = EBIT (incl. interest income) / average assets for year Based on PCQ achieving these performance targets, the following financial indicators will be achieved in 2008/09:

Performance Indicators

2008/09 Budget

2006/07 Actual

2007/08 Budget

2007/08 Est Actual

• Debt/Debt+Equity

0.58 0.25 0.5 0.30

• Current Ratio

0.67 0.57 0.58 0.72

• Interest cover

1.7 4.5 3.0 2.8

Note: Equity injection of $50M has been sought for Abbot Point X50 Expansion, but the impact is excluded from the above indicators.

2.2 Non-financial Performance Targets 2008/09

Budget 2006/07 Actual

2007/08 Budget

2007/08 Est Actual

Environment • % Compliance with Environmental

Obligations • Number of Compliance Breaches#

100%

Nil

99%

2

100%

0

100%

0Safety

• Lost time injury frequency rate (LTIFR)*

• Lost time injury duration rate (LTIDR) {not collected by PCQ}

0

N/A

28

N/A

4

N/A

0

N/A

Efficiency • Capital Development Projects - %

over budget for completed projects** 0 0 0 0

Service Quality • Customer Service Index (out of 10) • Timely compliance with statutory

reporting timeframes and data submission and reporting requirements in Treasury Financial Circulars

7.0100%

6.5100%

6.6 100%

6.6100%

# Compliance breaches are taken as a breach of a licence or permit condition identified formally by a government agency. * LTIFR can vary month to month. The rate reported is at the rate averaged over the twelve month period. ** = $ over budget for completed projects Total budget $ for completed projects


2.3 Assumptions PCQ’s undertaking to achieve its performance outcomes is predicated upon the following assumptions: The commodity assumptions are based on information drawn from a variety of sources including customer advice, analysis of historical trends and analysis of external forecasts (eg Australian Bureau of Agricultural and Resource Economics).

Forecast Shipments Commodity 2007/08 Projections

(as at 31/1/08) Mt

2008/2009 Forecast

Mt Coal 85.2 110.62 Abbot Point 12.5 15.62 Hay Point 72.7 95.0 Sugar 1.0 1.1 Bauxite (Weipa) 22.2 26.88 Silica Sand 1.6 1.6 Whilst PCQ does not directly control trade activity, its projected revenue is based on the above levels of trade. Zinc 1 1.1 0.92 Lead 1 0.06 0.05

Note1 : Cargo volumes for these trades do not impact on revenue.

Key Sensitivities

Underlying Assumptions and Key Sensitivities • Supply:

− Commodity market conditions − Users producing reliably and to forecasts − Rail delay and outages; rail capacity

• Port operations and capacity:

Anything that disrupts shipments will have an impact on financial outcomes. The possible impacts include:

• Weather

− May adversely impact on mining and railing – rail derailments, flooding and cyclone effects have highlighted this impact in the past.

− Heavy unseasonal rain, cyclones or rain-induced diseases may adversely impact on sugar harvest and yield.

− Closure of offshore berths due to high winds and/or seas and inclement weather exceeding 10 days per year.

• Increased freight rates

− Operations with fine margins may be impacted by the short supply of vessels, which has resulted in higher freight rates.

• Industrial disputation

− At port, mine or rail. • Equipment failure.

The existing Abbot Point Stacker/Reclaimers are 24 years old and are scheduled for refurbishment in 2008. All exports from Abbot Point rely upon a single shiploader (also constructed in the early 1980’s). This risk is partially mitigated by terminal expansion.

• Terrorist threat or attack.


Assumptions - Financial 2008/09 Budget

2006/07 Actual

2007/08 Budget

2007/08 Est Actual

Economic Indices • CPI

3.0% 2.1% 3.0% 2.8%

• Actual Total Annual Wages Bill Growth Rate Per Annum (1)

32% 23.5% 15.5% 15.5%

• Long term interest rates (2)

7.85% 7.0% 7.0% 7.25%

Revenue • Total*

$106.8M $62.6M $84.3M $89.9M

Operating Expenses • Total excluding interest

expense*

$67.408M $42.3M $54.3M $64.2M

Redundancy Costs Nil Nil Nil Nil* Details provided in 3.1 Financials Note (1) Reflects increase in staff numbers expected as a result of corporate restructure to cater for Abbot Point expansions. Note (2) Rates set following consultation with QTC.

2.4 Community Service Obligations (CSOs) No Community Service Obligations have been identified for PCQ for 2008/09.

2.5 Employment and Industrial Relations Plan An Employment and Industrial Relations Plan meeting the requirements of Section 171 of the GOC Act forms part of this SCI document and is included as Attachment 1.


PART THREE: ADDITIONAL MATTERS

3.1 Financials

Income Statement 08/09 06/07 07/08 07/08

Quarter 2008/09 Budget Actual Budget Est Act Sept Dec Mar Jun $'000 $'000 $'000 $'000 Income

28,080 24,652

22,939 6,210 Port Charges 81,880 42,479 62,935 65,106

4,471 4,471

4,471 4,471 O&M Cost Recovery 17,882 15,704 15,502 17,950

562 562

562 562 Property Income 2,246 2,040 1,851 1,978

329 362

296 455 Interest Received 1,442 395 915 949

2,143 Grant Revenue (Louisa Creek) 2,143 1,043 1,714 1,714

119 119

119 876 Misc Income 1,233 375 1,435 2,179

33,560 30,165 28,386 14,715

Total Income 106,827 62,036 84,352 89,876

Expenditure

4,439 4,439

4,439 4,439 O&M Expense 17,757 15,618 15,502 17,825

5,857 5,857

5,857 5,857 Depreciation Exp/writeoff assets 23,427 7,999 21,669 26,079

646 8,905

685 615 Maintenance Expense 10,850 7,228 5,813 6,655

1,664 1,664

1,664 1,664 Salaries & Wages 6,654 4,165 5,072 5,072

127 127

127 127 Travel Expenses 508 463 469 485

275 275

275 275 Property Expenses 1,098 1,034 1,005 1,042

174 174

174 174 Insurance 695 587 799 662

140 140

140 140 Other Exp-Stamp Duty,Land tax 561 556 470 470

210 210

210 210 Promotional/Community Liaison 839 288 324 211

292 292

292 292 Consultancy Expenses 1,168 944 1,057 921

963 963

963 963 General Operations 3,851 2,904 2,131 4,790

14,785 23,044

14,824 14,754 Total Expenditure 67,408 41,786 54,311 64,212

18,775 7,121

13,562 - 39 Earnings before Interest and Tax 39,419 20,250 30,041 25,664

5,671 5,671

5,671 5,671 Interest Expense 22,684 4,533 10,013 9,038

1,255 1,255

1,255 1,255 Taxation Expense (Benefit) 5,019 4,584 6,009 4,988

11,849 195

6,636 - 6,964 Profit after tax 11,716 11,133 14,019 11,638 Transactions with owners as owners Equity Injections (withdrawals) Note (1) - - - - Dividends provided for 8,855 5,610 9,954 8,691 Dividend Payout Ratio 80% 80% 80% 80% 8,855 5,610 9,954 8,691 Tax and CSO payments Tax Paid/payable 5,019 4,900 8,200 4,988

CSO Paid/payable or Received/receivable Nil Nil Nil Nil

5,019 4,900 8,200 4,988

Note (1) $50M equity injection has been sought in 2008/09 in the Abbot Point X50 Expansion Submission to shareholding Ministers (currently under review)


Balance Sheet 08/09 06/07 07/08 07/08

Quarter 2008/09 Budget Actual Budget Est Act Sept Dec Mar Jun $'000 $'000 $'000 $'000 Assets Current Assets

13,332 8,519 7,102 13,426 Cash at Bank 13,426 7,610 7,027 17,016 10,204 10,204 10,204 10,204 Debtors 10,204 10,310 10,858 10,204

23,536 18,723 17,306 23,630 23,630 17,920 17,885 27,220 648,274 699,947 806,917 963,618 Non-Current Assets 963,619 545,203 447,594 591,422 1,860 1,860 1,860 1,860 Non-Current Other 1,860 1,861 1,856 1,861 650,134 701,807 808,777 965,478 965,479 547,064 449,450 593,283 673,670 720,531 826,083 989,109 Total Assets 989,109 564,984 467,335 620,503

Liabilities Current Liabilities

30,190 23,244 24,988 35,530 Creditors & Provisions 35,530 30,733 30,659 28,926 - - - - Loans 1,538

30,190 23,244 24,988 35,530 35,530 32,271 30,659 28,926 Non-Current Liabilities

201,233 251,233 351,233 496,134 Loans 496,134 107,145 142,945 151,233 94,001 93,347 92,693 92,039 Provisions 92,039 96,685 31,578 94,655 295,234 344,580 443,926 588,173 588,173 203,830 174,523 245,888

325,424 367,824 468,914 623,703 Total Liabilities 623,703 236,101 205,182 274,814

348,246 352,707 357,169 365,406 Net Assets 365,406 328,883 262,153 345,689

4,025 4,220 10,856 - 4,041 Retain Profits/(Accum Loss) - 4,041 - 9,846 - 9,252 - 7,824 219,840 219,840 219,840 235,774 Asset Revaluation Reserve 235,774 205,988 137,732 219,840 133,673 133,673 133,673 133,673 Shareholders' Funds 133,673 133,673 133,673 133,673

357,538 357,733 364,369 365,406 Total Equity 365,406 329,815 262,153 345,689

- 9,293 - 5,026 - 7,200 0


Statement of Cashflows 08/09 06/07 07/08 07/08

Quarter 2008/09 Budget Actual Budget Est Act Sept Dec Mar Jun $'000 $'000 $'000 $'000

Cash Flows from Operating Activities

28,642 25,213 23,500 24,078 Receipts from Customers 101,433 61,647 67,936 90,720

- 9 ,423 - 9,423 - 9,423 - 9,682 Payments to Suppliers and Employees

- 37,949

- 48,474 - 33,641 - 39,461 - 3 ,200 - 1,427 - 1,427 - 1,427 Taxation Equivalents - 7,481 - 4,585 - 6,009 - 6,211

329 362 296 455 Interest Received

1,442

979 915 949 - 4 ,067 - 3,317 - 1,538 - 975 Borrowing costs paid - 9,896 - 4,533 - 10,013 - 8,836

12,281 11,409 11,409 12,449 Net Cash provided by (used in) Operating Activities

47,549 5,034 32,273 37,161

Cash Flows from Investing Activities

Proceeds from Sale of Property, Plant and Equipment -

- 89 - -

- 62,709 - 57,530 - 112,827 - 138,126 Payments for Property, Plant and Equipment - 371,191

-119,791 - 52,428 - 69,516

- 62,709 - 57,530 - 112,827 - 138,126 Net Cash (used in) provided by Investing Activities

- 371,191 -119,880 - 46,279 - 69,516

Cash Flows from Financing Activities

50,000 50,000 100,000 132,000 Proceeds from Borrowings 332,000 117,945 25,000 44,000 Repayment of Borrowings - -

- - 8,691 - - Dividend Paid - 8,691 - 11,446 - 9,954 - 5,498 50,000 41,309 100,000 132,000 Net Cash (used in) provided by

Financing Activities 323,309 106,499 16,803 38,502

- 427 - 4,812 - 1,417 6,324 Net (Decrease) Increase in Cash Held - 333 - 8,347 2,797 6,147

13,759 13,332 8,519 7,102 Cash at the beginning of the Financial Year 13,759

15,959 4,230 7,612

13,332 8,519 7,102 13,426 Cash at the end of the Financial Year 13,426 7,612 7,027 13,759


3.2 Assets Consistent with its core business, PCQ owns and manages the following major assets: Port Asset Ownership Details Abbot Point Coal terminal – onshore and

offshore, land 100% PCQ Capacity 21mtpa

Bowen Wharves, workshop and land

100% PCQ Primary use – Tug Harbour

Hay Point Tug Harbour, pontoons, buildings and land

100% PCQ Leased to coal terminals

Water Pipeline, dam and land 100% PCQ Subject to commercial agreement with Terminals

Land, buildings, Caravan Park 100% PCQ Buffer lands including Louisa Creek

Departure Path, Quarantine Waste Facility

100% PCQ Subject to commercial agreement with Terminals

Cape Flattery Wharf and ship loader, office buildings and land

100% PCQ Leased to Cape Flattery Silica Mines Pty Ltd (CFSM) to service silica sand mine.

Lucinda Offshore wharf and sugar terminal and land

100% PCQ Leased for the export of sugar

Inshore wharf, workshop and barge ramp and land

100% PCQ Supporting infrastructure

Mourilyan Wharf, buildings, molasses terminal and land

100% PCQ Wharf used for export of sugar, molasses and livestock.

Karumba Channel and land 100% PCQ Zinifex – lead and zinc export facilitation

Weipa Lorim Point Wharf 100% PCQ Leased to Rio Tinto Aluminium (RTA) for bauxite exports

Humbug Wharf 100% PCQ Leased to RTA for general cargo

Evans Landing Wharf and buildings

100% PCQ Leased to RTA for fuel importation

Land 100% PCQ Leased to RTA Channel 100% PCQ 15 km entrance channel Thursday Island Main Cargo Wharf and land 100% PCQ Main cargo wharf for TI Engineers Jetty and land 100% PCQ Passenger/community facility Horn Island Cargo Wharf and

fuel facility 100% PCQ Main cargo wharf for Horn

Island Horn Island Passenger Facility 100% PCQ Passenger/community facility Fuel Wharf and land 100% PCQ Passenger facility used by

Rebel Marine Quintell Beach Barge Ramp 100% PCQ Community facility Land at Portland Roads 100% PCQ Community facility


3.3 Capital Expenditure Programme 3.3.1 Repairs, Maintenance and Renewals

Description Total Cost

Budget 2008/09 Purpose and Objective

Project Status

Karumba Channel Maintenance Dredging $4.95M $4.95M

Annual dredging to maintain Channel depth Note 1

Weipa Channel Maintenance Dredging $3.6M $3.6M

Annual dredging to maintain Channel depth Note 1

Hay Point Tug Harbour Maintenance $1.0M $1.0M

Annual maintenance of Tug Harbour - all costs are reimbursed under agreement. Note 1

Hydrographic Surveys $0.3M $0.3M

Various ports, annual program, ensure a navigable depth in the ports Note 1

Other $1.0M $1.0M Maintenance of port facilities Note 1 Total Repairs & Maintenance $10.85M $10.85M Note 1: in all cases, the budget is approved by the Board and actual contracts will be approved as required. All contracts over $200,000 must go to the Board for approval. 3.3.2 Business Development (Material expenses on projects being considered)

Description Budgeted Cost 2008/09

Purpose and Objective

Status

Abbot Point Coal Terminal expansion (X50)

$250M

Capacity increase to 50 mtpa

Some preliminary costs have been approved and the submission for Project Approval is held by shareholding Ministers.

Abbot Point Multi Cargo Facilities

$4M Shipping facility – potentially multi berth for import and export cargoes

Preliminary costs which include initial environmental studies and audits as well as preliminary engineering studies and data gathering including geotechnical data.

Total $254M 3.3.3 Assets Under Construction

Asset Project Status

Budgeted Total cost

Total Estimated Expenditure to 30

June 2008

Budget 2008/09

Expected Date of Completion

Abbot Point Expansion X21

Approved $116M $96M $2.0M 30 June 2009


Approved $95M* $10M $70M July 2009

Abbot Point Stockyard Renewal (Stacker Reclaimers)

Approved $68M $5M $35M June 2010

Louisa Creek Land Acquisitions

Ongoing $10M $6.1M $1.5M 30 June 2012

Total $289M $117.1M $108.5M * Includes interest notionally capitalised for project pricing purposes


3.3.4 Proposed Capital Expenditure (Projects expected to be approved during 2008/09)

Asset Project Status

Budgeted Total Cost

Total Estimated Expenditure to

30/06/08

Budget 2008/09

Expected Date of

Completion

Head Office Minor asset replacement and acquisition including Cooktown and Cape Flattery minor acquisitions

Planned $0.209 $0.209 Ongoing

Hay Point Port Development General



Planned $2.0 $96.0 $2.0 30/06/2009


Planned $95.0 $15.0 $95.0 31/07/2009


Planned $750.0 $15.0 $750.0 31/12/2010

Abbot Point Stockyard Renewal of Stacker Reclaimer 1 & 2

Planned $68.3 $2.55 $68.3 30/06/2010

Abbot Point Terminal maintenance and minor asset acquisition, replacement or upgrade.


Louisa Creek Land Acquisitions

Planned $10.0 $6.359 $10.0 30/06/2012

Lucinda Port Development


Mourilyan Port Development


Weipa Port Development Planned $0.044 $0.044 Ongoing Thursday Island Port Development


Karumba Port Development


Total $931.991 $134.909 $931.991

PCQ will seek the prior approval of shareholding Ministers before submitting any projects for declaration as a ‘significant project’ under the State Development and Public Works Organisation Act 1971. All capital expenditure proposals in excess of $5 million will be submitted for shareholding Ministers for approval.

3.4 Other Undertakings As part of its performance agreement with its shareholding Ministers, PCQ provides the following additional undertakings: 3.4.1 Prudent Financial Management The Board and CEO of PCQ take full responsibility to ensure that prudent financial practices will be applied within PCQ. Without limiting the obligations imposed on the Board and the CEO by the GOC Act and, where applicable, the Corporation’s Law, this includes a commitment to: • abide with the Code of Practice for Government Owned Corporations’ Financial Arrangements as

issued by the Queensland Government; and • establish, maintain and implement appropriate financial risk management practices and policies

required and as specified in the Code of Practice.


3.4.2 Capital structure PCQ will prudently manage the financing of its existing business and new business developments. As an integral part of the financing of PCQ, the overall debt will be managed to ensure that PCQ maintains the appropriate credit rating or other rating as directed by shareholding Ministers. 3.4.3 Weighted Average Cost of Capital (WACC) PCQ will review its WACC on an annual basis. As part of the SCI negotiation process, PCQ’s beta and optimal capital structure have been determined in consultation with shareholder representatives. Separate WACCs have been calculated for those parts of PCQ’s operations that face differing business risk profiles. Other than the annual review process, in the event PCQ encounters a significant change to the risk profile of its business, its WACC will be recalculated in consultation with shareholder representatives. PCQ will approve or recommend projects in accordance with the Government Owned Corporations – Cost of Capital Principles – February 2006 provided by Queensland Treasury. 3.4.4 Dividend Policy PCQ’s dividend policy takes into account the return its shareholders expect on their investments. PCQ is currently considering future capital requirements (borrowings/equity injections) which may impact future dividend levels. In accordance with policy, the Board of PCQ will recommend a dividend percentage amount (maximum of 80%) of PCQ’s net profit after tax (excluding community port profit or loss), after adjustment for unrealised capital gains from upwards revaluations of non-current assets, for the 2008/09 financial year. The Board will adopt such a recommendation on the basis of its shareholders agreeing to provide the necessary funding for projects which have received Board and shareholding Ministers’ approval or for the maintenance of PCQ’s approved capital structure. 3.4.5 Corporate Governance PCQ will continually monitor and review its corporate governance arrangements to reflect good practice. PCQ fully complies with the Corporate Governance Guidelines for Government Owned Corporations, however, PCQ has determined to apply a different approach to materiality thresholds to that recommended in the guidelines. The Board has determined that materiality thresholds should not be established by the Board; rather the Board should be informed of all conflicts of interest by directors. PCQ has a documented policy requiring all employees to disclose interests which may lead to an apparent or actual conflict of interest. A decision will be made by the Board (or the CEO depending on the circumstance) when a disclosure of interest is made. The decision must include an assessment of whether there is a conflict of interest, whether the interest is material and the planned action as a result of the conflict. These disclosures would be used to determine the independence of directors and employees. 3.4.6 Risk Management The Board of Directors of PCQ has ultimate responsibility for the management of all potential internal and external risks for PCQ enterprise-wide. Risk Management is a standard, prominent and permanent agenda item on the Board agenda. PCQ's risk identification and management process is monitored by the Corporate Governance and Planning Committee, which is a subcommittee of the Board and which reports to the Board on a regular basis. The Corporate Governance and Planning Committee review all adjustments to the risk management register and reviews internal audits of the various risk management categories. In addition the Audit and Financial Risk Management Committee’s Charter includes a focus on management and oversight of PCQ’s financial risks. Risk management processes are documented in a policy and detailed procedures are documented in the Risk Manual. These documents are reviewed annually. Individual risks are documented in a Risk


Register, together with the risk ranking and risk mitigation measures employed. Risk changes are reviewed monthly by the management team and the entire register is reviewed annually.

The Risk Register identifies the following risks as PCQ’s current “Top 5 Risks” associated with being the port authority managing its assigned ports: Risk Description Current Risk Treatments Injury to public on PCQ’s public facilities Facilities properly maintained. Regular inspection by

port staff. Annual survey by WH&S and Engineering staff. Appropriate safety signage, wharf railings etc in place.

PCQ’s operations and possibly existence may be adversely affected by poor relationships with Stakeholders.

Exchange of information. Demonstrate value-adding. Compliance with reporting. Communications. Relationship building. Frequent face-to-face meetings.

Lack of availability of competent contractors and tradespeople.

Building strong relationships with contractors. Good contract documents-easy for contractors to respond & good control over contractors. Ensuring delivery methodology is appropriate.

Port operations and development may be adversely affected as a result of protests or actions by interested groups.

Community engagement and stakeholder contact. Port advisory Group meetings. Public consultation programs. Communication information (newsletters). Local intelligence gathering. Media monitoring. Prepare and rehearse plans for controlling incidents.

Climate change impacts on port infrastructure.

Develop and document new design standards for each port to cater for expected climate change impacts in design sign-off procedures. Progressively review the impact of climate change on existing port infrastructure.

3.4.7 Compliance with Government Policies PCQ will comply with all relevant Government policies and guidelines as set out in Attachment 3. In particular, PCQ will comply with the approval, notification, reporting and other requirements of those policies and guidelines. 3.4.8 Sponsorship, Advertising, Corporate Entertainment, Donations and Other

Arrangements PCQ has budgeted the following amounts for Sponsorship, Advertising, Corporate Entertainment, Donations and other arrangements for 2008/09.

Marketing Activity Budget 2008/09 Sponsorship $81,000 Advertising $80,000 Corporate Entertainment $24,400 Donations $27,000 Total $212,400 Individual items of more than $5,000 have been budgeted as follows: Sponsorship $10,000 Bowen Show Society Donations $ 6,000 Water Rebate for Louisa Creek community The organisations PCQ will sponsor comprise local schools, community associations and regional show societies. The goal of the PCQ sponsorship program is to work with young people to educate them on environmental issues associated with the marine habitat, as well as raise awareness of PCQ within the port communities. PCQ will provide details of any significant changes to the listed commitments in quarterly reports to shareholding Ministers, and will notify shareholding Ministers of any significant proposed sponsorship arrangements prior to the signing of a binding contract. A post audit/review will be conducted to verify outcomes against specific corporate objectives for significant sponsorship and advertising programs, with a report provided to shareholding Ministers in the June quarterly report. 3.4.9 Community Maritime Facility Contribution


PCQ will provide $500,000 towards the costs of the relocation of the Mourilyan Boat Ramp.

3.5 Remuneration Arrangements The remuneration arrangements for the Directors and chief and all senior executives of PCQ in line with the Guidelines for the Development of Employment and Industrial Relations Plans are detailed in the Employment and Industrial Relations Plan provided as Attached 1 to the SCI. 3.6 Industrial Relations/Human Resources Philosophy and Direction and Significant Emerging Issues Refer Employment and Industrial relations Plan provided as Attachment 1 to this SCI.

3.7 Demand Management PCQ works with proponents, participates in trade development groups and seeks future demand forecasts to enable it to manage future demand. PCQ also monitors developments with respect to related services such as towage, pilotage and power, to ensure that these services are sufficient to meet current and future forecast demand. Hay Point Responsibility for demand management at Hay Point rests with BHP Mitsubishi Alliance (BMA), owner of the Hay Point Coal Terminal (HPCT) and Babcock and Brown Infrastructure Ltd (BBI), holder of a long term lease of the Dalrymple Bay Coal Terminal (DBCT). PCQ monitors demand management as part of its port authority role and as adviser to DBCT Holdings. BMA has expanded HPCT to 44 mtpa and is undertaking feasibility studies on further expansions to potentially 55 mtpa. PCQ has assisted BMA by: • Sublease and negotiating land below highwater mark to BMA; • Undertaking joint geo-technical investigations; • Departure Path dredging; and • Discussing relevant planning approvals required for the work. BBI is currently expanding to 85 mtpa and has signed commitments to this level. PCQ continues to have good levels of communication with coal mining companies in the Goonyella rail corridor, and monitors mine developments and their proposed export logistics. There is currently no avenue for new or expanding mines to secure additional capacity through Hay Point. PCQ is supporting the development of the Northern Missing Rail Link and Abbot Point Expansion/s to facilitate further coal mine exploration and development. PCQ continues to liaise with the two terminal operators at Hay Point to ensure that PCQ is facilitating and not delaying expansion activities, eg: • Provision of PCQ land required for surplus civil works material, car parks, accommodation; • Prompt assessment of port development applications; • Reservation of waterfront land for offshore constructor’s work area (i.e. Tug Harbour); and • Provision of adequate buffer land (eg continuing the Louisa Creek Property Program). Abbot Point PCQ conducted a capacity allocation process in October 2007, where it wrote to all identified access seekers and advertised on its website. Requests for take or pay capacity exceeding 100 mtpa was received. PCQ has offered to contract on the basis of a standard user agreement up to 100 mtpa subject to PCQ being able to obtain all relevant environment and commercial approvals to undertake expansions which would enable such demand to be met. The user agreement has set dates as late as


31 December 2009 by which time PCQ must have committed to expansions otherwise the user agreements lapse to the extent that expansions have not been committed. Weipa Demand management at Weipa requires close consultation with the current primary user Rio Tinto Aluminium (RTA). RTA has heavily invested in the bauxite mining operations in recent years and tonnages continue to exceed previous record levels. PCQ has widened and deepened the channel at Weipa in 2006 to meet the requirements for post -Panamax vessels to handle the increased trade. PCQ is closely monitoring developments at RTA’s Yarwun Refinery, as well as transport options for the Aurukun and Alcan’s Ely deposits to determine potential impacts on Weipa’s trade. Mourilyan PCQ meets with representatives from Queensland Sugar Limited on a regular basis to review export forecasts. A Trade Development Group has been established at Mourilyan to identify new trade opportunities. A livestock loading facility has been constructed at the port by Sugarbag (Qld) Pty Ltd. Lucinda Demand management at Lucinda is addressed during regular meetings with Queensland Sugar Limited. PCQ is currently investigating the development of a light industrial precinct on port land at the port. A number of individuals have indicated an interest in leasing land from PCQ within the precinct. PCQ has entered into a development lease with BarraBlue enabling them to develop a plan for the construction of an intensive barramundi hatchery at Lucinda. Cape Flattery PCQ holds regular meetings with the single user, Cape Flattery Silica Mines. Exports through the port have varied over the past 2-3 years however remain at viable levels. Karumba PCQ conducts regular meetings with Zinifex and transport operators in the region to determine the need for additional facilities. A Trade Development Group has been established at Karumba which meets once or twice a year to review new trade opportunities. The main general cargo operation servicing Weipa relocated from Karumba to Townsville during 2007.

3.8 Pricing Review In reviewing pricing, PCQ has considered the interrelated but competing pressures of: • Achieving long run rates of return on trading port assets consistent with PCQ’s WACC; • Complying with the port pricing policy contained within our corporatisation agreements; • Withstanding regulatory review under competition policy; • Maintaining price competitiveness for port users; • Accommodating market forces and remaining internationally competitive; and • Recognising existing contractual, leasing and licensing arrangements. Pricing should be set to provide revenue which at least provides: • Return of capital over the estimated useful remaining economic life; • Return on capital consistent with the risk parameters; and • Recovery of all expenses including corporate overheads. Subject to pre-existing contractual arrangements and in accordance with the recommendations of the Review of Current Port Competition and Regulation in Queensland PCQ seeks to earn a commercial rate of return on its investments whilst ensuring there is no exploitation of monopoly power. Pricing for each port is reviewed annually.


Note that PCQ has decided to recover port security costs as a distinct port security charge. The quantum and method of recovery of port security costs is dealt with separately under section 3.9 Implementation of Port Security (below). As a result of pricing reviews over the past few years, the majority of trading ports are operating profitably at or near commercial rates of return on assets. The largest revenue contributor is Abbot Point, which represents 57% of PCQ revenue and 5.5% of profit before tax (2008/09 forecast). The next largest revenue contributor is Hay Point which provides 20% of PCQ revenue. Hay Point still represents a significant portion of PCQ's operations, and is expected to generate 47% of PCQ’s profit before tax in 2008/09. The port's harbour dues, tonnage rates and consultancy fees are used to fund PCQ's administrative, planning and monitoring roles in the port, as well as a return on assets invested in the port, predominantly buffer land. At the Ports of Cape Flattery, Lucinda and Mourilyan, PCQ is proposing to increase harbour dues by 3.0% for 2008/09 in line with CPI with the exception of Port Security Charges. These charges represent less than 5% of port revenues in the case of Mourilyan and Cape Flattery and less than 10% in the case of Lucinda. Additional costs and a scheduled external audit have increased the recovery necessary in these instances. PCQ continues to consider methods for improving its efficiency and reducing costs. Historically up to 85% of PCQ’s costs have comprised depreciation or financing costs and agency or pass-through costs (no profit potential). The composition of these costs highlight the importance of the initial project cost management and financing decisions and the limitations on improving profits via cost reductions. PCQ has actively sought to achieve efficiencies in its controllable costs areas. This includes the securing of viable long-term dredging arrangements with the Port of Brisbane Corporation for regular dredging requirements at Weipa and some other ports. All other services will be reviewed on an ongoing basis to ensure PCQ continues to maximise efficiencies in delivery of port services. PCQ has successfully resolved all material historical legacy issues. Existing pricing/agreements reflect the commercial settlements reached between the parties regarding past “contributions”. Going forward PCQ controls all its assets and is in a position to earn a commercial return on all future investments. PCQ has consulted with key port users about pricing increases and to date no adverse comments have been received.

3.9 Implementation of Port Security The Maritime Transport Security Act 2003 commenced in December 2003. The Office of Transport Security (OTS) has approved Maritime Security Plans for the eight PCQ ports of Hay Point, Abbot Point, Lucinda, Mourilyan, Cape Flattery, Thursday Island, Weipa and Karumba. PCQ will ensure continued compliance of its operations with these approved plans. PCQ will continue to review the effectiveness of these plans and seek OTS approval for ongoing improvement to the plans. PCQ has appointed Port Security Officers to each of its security-regulated ports. These Officers are responsible for maintaining liaison on security matters with port users and government agencies. Port Security Officers coordinate any response within a port to a port security incident. PCQ has two full-time positions to manage security across the organisation (Security & Risk Superintendent and Port Security Supervisor). PCQ has provided security training to staff as appropriate and will continue to meet the security training needs of staff. PCQ will carry out audits at all ports annually to ensure compliance with Maritime Security Plans. Internal and external audits will be carried out in alternate years. PCQ will hold security exercises for all ports annually, which will involve either a desktop exercise or field exercise. These exercises will involve the Port Security Committee and Emergency Services.


PCQ will immediately advise shareholding Ministers of the results of any Office of Transport Security audit which results in findings which are defined as major or substantive non-conformities and have the potential to risk State security. Quarterly reports will also note any significant adverse outcomes of any Office of Transport Security audit or any other internal or external port security audit and / or review commissioned by the Board or undertaken through PCQ's risk management systems. The quarterly report will also note any corrective actions taken to address significant non-conformities identified in the security audits and reviews.

Quarterly reports will indicate the capital and operational costs associated with the counter-terrorism security arrangements, the cost recovery mechanism and the level of cost recovery being achieved to date.

PCQ will provide reports and timely advice on a confidential basis on security matters as required by Queensland Transport’s security reporting regime. Recovery of Security Costs PCQ will recover the full costs of security implementation from fees to port users via a separate port security charge. A breakdown of the annual security costs for each port and the method of recovery are included in the table below. Port Method of Recovery 2008/09 Hay Point

Port Security Charge on vessels of $0.002 per gross registered tonne.

Abbot Point


Lucinda Port Security Charge on vessels of $0.127 per gross registered tonne. Mourilyan Port Security Charge on vessels of $0.139 per gross registered tonne. Cape Flattery


Thursday Island

Recovered through general harbour dues.

Weipa Recovered through general harbour dues. Karumba Recovered through general harbour dues.

3.10 Infrastructure Maintenance PCQ employs a maintenance management strategy for PCQ owned infrastructure that applies across the life of the asset. The primary objectives of the strategy are to: • Preserve the value of PCQ assets; • Guard against failure; and • Manage obsolescence. PCQ has implemented a Facilities and Assets Risk Management System (FAARMS) as a key part of this strategy. FAARMS is a risk management process incorporating an integrated condition, risk, performance, maintenance and management system. FAARMS provides an overall assessment of condition and risk exposure of proposed and existing assets. The process of asset management by PCQ entails the following key result areas: • Regular inspections of PCQ assets to:

o assess their current condition; o assess their continued fitness for purpose; o assist with planning of capital upgrades; o assist with reassessing asset useable life;


o check that assets are being used for their intended purpose and use is consistent with design loadings etc.; and

o check compliance with current codes and regulations. • Prioritising maintenance on an annual basis based on the results of inspections. Priorities are

based on risk, with priority given to protecting the port workers and the public. Work is carried out to prevent identified potential infrastructure failures.

• Planning (including budgeting) and carrying out maintenance to PCQ owned and operated infrastructure.

• Assessing the performance of our operators and maintainers in regard to their responsibilities with respect to maintaining our infrastructure.

• Liaising with existing and prospective customers with regard to assessing possible improvements to the assets to enhance customer competitiveness in their respective markets.

• Look for opportunities to increase asset utilisation throughout PCQ ports • Look for opportunities to increase the efficiency and longevity of assets throughout PCQ ports Asset Management Tools The tools used by PCQ to manage maintenance of its assets effectively are summarised as follows: • Asset Management Strategy (supported by an electronic Asset Management System (MEX)); • Facilities and Assets Risk Management System (FAARMS) Audits; • Regular Asset Inspections by PCQ Engineering Staff or contractors/consultants or tradespersons

and Northern Staff observations/feedback; • Facility Specific Asset Management Plans; • Strategic Document Storage and Retrieval System; and • Budgets (10 year maintenance, 5 year capital and 5 year demolition). PCQ staff and contractors maintain its multi-user assets and PCQ has a regular inspection and maintenance program in place for these assets. To ensure maintenance is undertaken to these facilities, a 10 Year Maintenance Budget Plan is updated annually to reflect planned maintenance based on a priority basis. Where PCQ assets are leased to a single organisation, the operator of the facility is assigned responsibility for effective maintenance under the lease conditions. One of the key infrastructure assets owned by PCQ is the Abbot Point Coal Terminal. PCQ has an Operation and Maintenance Contract (O&M) with the Lessee. The O&M requires the operator to be responsible for the day-to-day operation of the terminal. The operator must ensure that the terminal is at all times maintained and operated to achieve optimum reliability and efficiency of the terminal and achieve optimum effective life of the terminal. PCQ arranges independent FAARMS Audits of the terminal on a 2-3 year basis to ensure the effectiveness of maintenance and inspection activities by the operator. PCQ also regularly carries out hydrographic surveys in its ports, as documented in a Hydrographic Survey Frequency Schedule, to ensure channels and berths are maintained at their design depth. Dredging is undertaken on a routine basis to maintain these depths to ensure safe navigation for shipping. 3.11 Disposal of Assets Discussions have been progressed with Queensland Rail (QR) regarding the appropriate rail corridor for the Port of Abbot Point. PCQ has agreed in principle, subject to Board and shareholding Ministers approval, to either sell the corridor to QR or return the relevant land as equity back to the State.


PART FOUR: PERFORMANCE AGREEMENT DIRECTORS' STATEMENT AND AGREEMENT OF SHAREHOLDING MINISTERS This Statement of Corporate Intent (“SCI”), for the financial year 2008/09, is presented in accordance with Section 9 and Part 8 of the GOC Act. The SCI represents a formal performance agreement between the Board of Directors of PCQ and its shareholding Ministers, the Treasurer and the Minister for Transport, Trade, Employment & Industrial Relations with respect to the financial and non-financial performance targets specified for the financial year. The SCI also represents an acknowledgment and agreement on major activities, the objectives, undertakings, policies, investments and borrowings of PCQ for the financial year. This SCI is consistent with PCQ’s 2008/09 to 2012/2013 Corporate Plan submitted to, and agreed to by, the shareholding Ministers in accordance with Part 7 of the GOC Act. In signing the document PCQ has undertaken to take all reasonable steps to ensure that the document, and all reports to shareholding Ministers, are prepared with accuracy and timeliness. Major changes to key assumptions and outcomes detailed in this SCI, and which come to PCQ’s attention during the year, will be brought to the attention of shareholding Ministers. Any modifications to this SCI will be dealt with in accordance with the GOC Act. This SCI is signed by all Directors in accordance with a unanimous decision of the Board of PCQ. Chairman: …………………… Date: …………….

Director: …………………… Date: …………….

Director: …………………… Date: …………….

Director: …………………… Date: …………….

Director: …………………… Date: …………….

Director: …………………… Date: …………….

Director: …………………… Date: …………….

………………………………… (Shareholding Minister) Date: …………….

………………………………… (Shareholding Minister) Date: …………….


PART FIVE: ATTACHMENTS

ATTACHMENT 1 - Employment and Industrial Relations Plan

EMPLOYMENT AND INDUSTRIAL RELATIONS PLAN 2008/2009

April 2008 Prepared by the Directors and Management of Ports Corporation of Queensland Limited ACN 126 302 994 for the shareholding Ministers • The Treasurer; and • The Minister for Transport, Trade, Employment & Industrial Relations

COMMERCIAL IN CONFIDENCE This document contains confidential matter relating to the business affairs and financial interests of the Ports Corporation of Queensland and relevant parts of its contents cannot be disclosed by any government agency in response to a Freedom of Information (FOI) request pursuant to the exemptions contained in Part 3, Division 2 of the FOI Act. E2008/09601

Page 1 of 26

Ports Corporation of Queensland Limited Employment and IR Plan 2008/09 Commercial in Confidence

of 26


Table of Contents

Contents Page 1. Shareholder Information................................................................................... 3 2. Directors/Senior Executive Remuneration ....................................................... 5 3. Employment Conditions ................................................................................... 8 4. Collective Agreement ....................................................................................... 8 5. Employee Flexibility ......................................................................................... 9 6. Type of Employment ...................................................................................... 10 7. Use of Apprentices and Trainees................................................................... 11 8. Workplace Health and Safety......................................................................... 11 9. Equal Employment Opportunity and Anti-Discrimination................................ 11 10. Interstate Acquisitions/Operations.................................................................. 12 11. Joint Venture Projects .................................................................................... 12 12. Management of the Relationship Between GOCs and Unions ...................... 12 13. Redundancy Provisions ................................................................................. 13 14. Employment Security ..................................................................................... 13 15. Contracting Out .............................................................................................. 14 16. Superannuation.............................................................................................. 15 17. Consultation ................................................................................................... 15 Attachment 1: Organisational Chart ......................................................................... 16 Attachment 2: Abbot Point Organisational Chart ..................................................... 17 Attachment 3: Minimum Employment, Industrial Relations and Job Security Principles for GOC Employees December 2007............................... 18

of 26


Shareholder Information

1. Employment and Industrial Relations (E&IR) Philosophy/Direction

One of the key issues addressed in this Employment and Industrial Relations Plan is designing an organisation appropriate to:

• undertake significant development of coal port infrastructure at Abbot Point; • establish a multi-cargo facility at Abbot Point; • have the structures in place to operate that infrastructure as it comes on-line and

becomes truly multi-user; and • ensure PCQ maintains excellence in the management of all its ports.

To ensure effective and integrated management of issues at Abbot Point, PCQ is planning to create a dedicated Abbot Point Business Unit to bring together commercial, engineering and business development disciplines to focus solely on Abbot Point. The Board recently approved the new organisation structure to deliver the best outcomes for Abbot Point as well as PCQ’s other ports. The organisational structure has been included in this document (Refer Attachment 1 and 2). Separately PCQ will write to shareholding Ministers to seek their approval for new positions as part of the organisational structure and proposed remuneration levels of the Senior Executives under that structure. In the current “tight” labour market, PCQ faces the same issues of attracting competent experienced applicants to vacancies in technical areas as other organisations. Like other employers, PCQ will have to address these issues to attract and retain quality employees. PCQ expects the labour market to remain tight for at least a few years. One of the principles in the design of the new organisational structure was to keep the technical areas such as environment, engineering and finance purely focussed on their respective disciplines and relocate other functional responsibilities. PCQ responsibly manages resource demands by bringing in consultants and contractors where appropriate. PCQ, whilst enjoying the benefits of the flexibility of this approach, minimises risks by permanent employees always exercising strategic control over their activities supported by proven systems and standard engagement documentation. As a response to the prevailing labour market conditions, PCQ has had to resort to engaging consultants to meet what it would preferably have made permanent technical positions. The types of resources required permanently by PCQ cannot be addressed by apprentices or trainees as the major skill shortages for PCQ are in the professional engineering and environmental areas with strong project management skills. Historically State based industrial relations have been in place and PCQ has operated co-operatively with the Australian Workers’ Union (AWU) and Queensland Public Service Union (QPSU). PCQ looks forward to continued good relations with these unions to respond appropriately to the changing world and work practices. During 2006/07 PCQ completed a Collective Agreement with its employees. PCQ maintained employment conditions and job security provisions contained in the previous award and certified agreements in the development the Collective Agreement under WorkChoices. PCQ will continue to monitor developments in Federal industrial relations legislation, especially in light of the change in Federal government, and respond appropriately as necessary. This response will be consistent with PCQ’s ongoing commitment to the maintenance of employment conditions and promotion of job security.

of 26


PCQ has developed an extensive set of human resources policies. These policies include:

• 2.1 Anti Discrimination • 2.2 Recruitment & Selection • 2.3 Position Descriptions • 2.4 Organisational Structure • 2.5 Employee Arrangements • 2.6 Superannuation • 2.7 Induction • 2.8 Code of Conduct • 2.9 Performance Agreements • 2.10 Managing Diminished Performance • 2.11 Grievance • 2.12 Redundancy • 2.13 Training and Development • 2.14 Relieving • 2.15 Relocation Expenses • 2.17 Corporate Programs for Employees • 2.18 Employee Remuneration Options • 2.19 Remuneration Review and Increments – Non-Award Employees other than

Chief or Senior Executives • 2.19A Remuneration Review and Increments – Chief and Senior Executives • 2.23 Working from Home • 2.26 Chief and Senior Executive Performance Pay • 6.2 Health and Safety Policy • 6.2.1 Health and Safety – Personal Protective Equipment • 6.3 Workplace Rehabilitation

Many of these policies have been and are currently being amended to reflect the remuneration arrangements for Chief and Senior executives (shareholding Ministers having approved those amendments as compliant with guidelines) and “Minimum Employment, Industrial Relations and Job Security Principles for Government Owned Corporations (GOC) Employees” (particularly as several provisions were not allowable in PCQ’s Collective Agreement). It is recognised that a smaller organisation provides flexibility to meet changing needs, but also offers a reduced career path. PCQ addresses this aspect through a policy of having training and development focused not only on the incumbent’s current position but also on other PCQ positions. PCQ has a range of employee diversity, with a good gender mix and employees from non-English speaking, Islander, Aboriginal and Torres Strait Islander background.

of 26


2. Directors/Senior Executive Remuneration Non-Executive Directors

Annual Remuneration of Non-Executive Directors as at 29 February 2008

Non Executive Directors Directors

Fee Committee

Fees Superannuation Other Total

Leonie Taylor (Chairperson)

39,1751 11,373 3,380 - 53,928

Jim Petrich (Deputy Chairperson)

18,955 5,055 2,161 - 26,171

Bernadette Inglis 18,955 6,318 2,275 - 27,548Julie Bignell 18,955 3,791 2,047 - 24,793Kasper Kuiper 18,955 3,791 2,047 - 24,793Di Zetlin 18,955 5,055 2,161 - 26,171 ¹ The Chairperson is provided a motor vehicle with a salary sacrifice equal to the grossed-up fringe

benefit value. These fees are either set by Government or are in accord with guidelines issued by the Government. Chief Executive Officer (CEO) and Senior Executives During 2007/08 PCQ received shareholding Ministers’ approval for its policies relating to governance arrangements for Chief and Senior Executives, including the policies “Remuneration – Chief and Senior Executives” and “Chief and Senior Executives Performance Pay”. In adjusting and setting remuneration for the Chief and Senior Executives, PCQ attempts to pay fair market value for the position and the responsibilities as carried out. This will be a judgement made by the Board. It will include issues such as experience and performance as well as considering an appropriate comparative value paid to other persons in similar positions. In determining the appropriate level of remuneration for an existing or proposed Chief or Senior Executive position, the PCQ Board will: • obtain an assessment of the position utilising the Government’s preferred consultant; • utilise this assessment in accordance with the remuneration database (index) maintained

by the Government’s preferred consultant to determine the relevant median market figure for the position; and

• determine an appropriate level of remuneration up to the median figure. In rare cases where the Board considers it is warranted, remuneration might be set at up to median + 10 per cent, in order to attract or retain an applicant with exceptional skills or experience. In this event, PCQ will seek the shareholding Ministers’ prior written approval. The Board will keep shareholding Ministers informed of the remuneration arrangements of the Chief and Senior Executives on a regular basis. This advice will be provided in writing and detail the nature and amount of the remuneration and the way in which the remuneration has been determined. The nature and amount of the remuneration of the Chief and Senior Executives will be detailed in the Annual Report and Statement of Corporate Intent, on a similar basis to that required under the Corporations Law by listed public companies. The Statement of Corporate Intent will also include an outline of this policy.

of 26


Remuneration of Senior Executives as at 29 February 2008

Senior Executive Total Fixed

Remuneration

Motor Vehicle (Note 1)

Super-annuation

Other Benefits (Note 2)

Total Remuneration

Performance Payment

Brad Fish, Chief Executive Officer

235,102 -

29,976 8,316 (Note 3)

273,394 N/A

Martin McAdam, General Manager Business Development

162,902 - 20,770 6,590 190,262 18,700

Bob Brunner, General Manager Environment and Risk

151,647 - 19,335 6,590 177,572 17,600

Paul Blewonski, General Manager Corporate Strategy

138,615 - 17,673 6,590 162,878 15,800

Graham Rawlings, General Manager Commercial

138,615 - 17,673 6,590 162,878 15,800

Gary Campbell, General Manager Corporate Relations and Northern Staff

123,718 - 15,774 6,590 146,082 14,600

General Manager Engineering (currently vacant)

- - - - - -

Ann MacKinnon, General Manager Financial

116,105 - 14,803 6,590 137,498 11,300

Note 1: Motor Vehicles are salary sacrificed based on actual costs and form part of Total Fixed Remuneration.

PCQ considers 25-30% of motor vehicle costs to represent business usage. Note 2: Car parking is provided to meet work requirements. The amount represents the statutory formula fringe

benefit amount. No cash remuneration alternative is offered. PCQ offers medical assessments and subsidised gym memberships to all staff as part of a corporate health program. Membership of professional/business associations are provided for business purposes.

Note 3: The CEO is also provided a facsimile line and internet broadband access at his residence for business use. Membership of the Brisbane Club is provided for the CEO. PCQ operates a performance pay scheme for Senior Executives in accordance with the approved policy. The scheme approved for the 2007/08 financial year has a performance payment maximum of 15% of total fixed remuneration for any individual. The scheme is structured so that rewards are heavily based on overall achievement of corporate objectives with a component based on individual performance. Payments are determined by the Board after the end of the financial year in accordance with the scheme and the approved policy. In accord with the CEO’s employment contract effective from 1 August 2007, the CEO will be potentially eligible for a performance payment not more than 15% of total fixed remuneration. The performance pay scheme to apply for 2008/09 year is yet to be considered by the Board and is normally considered by the Human Resources and Industrial Relations Committee and the Board in May/June with targets agreed prior to the commencement of the period to which the performance payment relates. The various options will be fully considered at the time. The scheme for the senior executives (except the CEO who has an individually set scheme) is likely to be similar to the current scheme. However, it is likely that the group scheme applicable to the senior executives may include a number of other senior positions within PCQ. The 2008/09 financial year performance payments will be based on the Senior Executive Remuneration Policy which was endorsed by shareholding Ministers. As is PCQ’s usual practice, PCQ will inform shareholders of the results of its deliberations. In accordance with the organisational structure recently approved by the PCQ Board, PCQ’s Senior Executives will comprise the following positions:

• Chief Executive Officer, • General Manager Corporate Services, • Chief Operating Officer, • General Manager Financial, and • Group Manager Abbot Point.

of 26


The majority of these positions are new and PCQ is currently in the process of developing Position Descriptions, having positions rated to establish appropriate remuneration levels in consultation with Department of Employment and Industrial Relations (DEIR) and Office of Government Owned Corporations (OGOC) in accord with PCQ policies. PCQ will write to shareholding Ministers informing them of the results of the remuneration ratings and seeking their endorsement to the process intended to fill positions.

of 26


Employment and Industrial Relations Plan 3. Employment Conditions Most direct employees of PCQ are covered by the Ports Corporation of Queensland Collective Agreement 2007-2009 No. 083664583-1 (“Collective Agreement”) which expires 31 December 2009. Other employees have been appointed by letters of engagement or under an employment contract. Common employment conditions apply to these employees and many of the employment conditions reflect the Collective Agreement provisions. PCQ complies with the Government Policy “Agreement Making in GOCs – Guidelines for CEOs”. New individual common law contracts will not be entered into where total fixed remuneration is less than the monetary equivalent of the Queensland Public Service Level AO-8 (plus 12.75% plus the equivalent of annual leave loading plus any overtime component) or the top rate in the PCQ Collective Agreement plus the applicable superannuation and annual leave components (whichever is higher). Consistent with developing arrangements to safeguard the employment conditions and industrial relations practices for its employees, PCQ has developed a Dispute Settling Policy that provides a consistent and clear approach for the parties to deal with disputes early on and to deal with matters that may not be dealt with by processes available under industrial relations legislation. PCQ has no gain sharing schemes. The principles from the Queensland Government’s “Minimum Employment, Industrial Relations and Job Security Principles for Government Owned Corporation (GOC) Employees December 2007” are adopted by PCQ and incorporated in this plan as appropriate (refer appendix 3). Where there are differences between the conditions contained in the “Minimum Employment, Industrial Relations and Job Security Principles for Government Owned Corporation (GOC) Employees” and those contained in PCQ’s industrial instruments or policies as at 26 March 2006, the 26 March 2006 provisions from PCQ’s industrial instruments or policies will prevail. 4. Collective Agreement In October 2007 PCQ finalised a Collective Agreement with its employees and the relevant unions (QPSU and AWU). The implementation of the new Collective Agreement has been successful overall and good working relationships have been maintained with the AWU and QPSU. The key terms of the Collective Agreement include: • Three Year Agreement (1 January 2007 to 31 December 2009). • Wage increase - 4% annual wage increase + .5% productivity payment paid from 1

January 2007. • Preservation (as closely as possible) of existing entitlements and conditions in the

previous certified agreement and award for PCQ employees. This has resulted in development of a consolidated and comprehensive Collective Agreement which contains a “no further claims” provision.

• Leave Provisions - 6 weeks paid maternity leave increased to 12 weeks paid maternity/adoption leave.

• Long Service leave provisions are fully documented in the Agreement and reflect the entitlements and arrangements available under the relevant Ministerial Directive for state public servants as at 1 January 2007.

• Hours of Work Trial for Head Office Employees - The Agreement commits to trial the use of rostered days off (RDOs) as outlined under the existing Award conditions for Head Office employees. This trial has been completed and RDOs have been introduced for Head Office employees. Staff appreciate the fact that they now have a regular day off,

of 26


resulting in improved morale. Operational issues have been addressed by ensuring arrangements are in place to cover changed work demands. Overall the implementation of the RDO’s has been successful and the net result is that RDOs are now available to all Collective Agreement employees (although for operational reasons the scheme contains variations for Head Office and Northern Staff).

• Review of Benefits and Entitlements of staff located in Isolated Areas - The Agreement requires a review of the existing arrangements (including current locality allowances, housing support and air travel) in relation to employees in the northern isolated region (Thursday Island, Weipa, Karumba for PCQ). This matter has been considered by the Human Resource and Industrial Relations Committee and the Board. A submission seeking approval for increased allowances for staff located in Isolated Areas is currently being considered by shareholding Ministers.

• Additional Administrative Levels - additional Levels are introduced into the Agreement to take the maximum rate to the same as Qld Public Service AO8 level.

• Agency Consultative Committee (ACC) matters - Words were inserted to make it clear that either party may utilize the process under the disputes settling procedure under the Agreement where that party is not satisfied with the ACC dealing with any matter. This reflects the current arrangement whereby parties can use the dispute settling procedure to resolve matters relevant to the Agreement.

In developing this Collective Agreement, PCQ complied with the principles documented in the “Agreement Making in Government Owned Corporations – Guidance for Chief Executive Officers” as documented below:

• Wages outcomes were comparable with the core agreement of the public service and those recently delivered by other GOCs – in that regard wages outcome was not a market leader.

• PCQ continued its practice of having a Collective Agreement cover all positions below the Public Service Award – State, Level AO8 paypoint 4 plus 12.75%.

• Legal advice confirmed that PCQ was covered by WorkChoices legislation and the Collective Agreement was developed under that federal legislation.

• During the development of the Collective Agreement there was close consultation with DEIR and the processes leading to the agreement had the prior approval of the Cabinet Budget Review Committee.

5. Employee Flexibility Each employee's individual lifestyle needs may, from time-to-time, impact on their ability to carry out their usual tasks. PCQ regards those circumstances as an opportunity to help that employee by providing appropriate support. This might involve counselling, flexible work arrangements, special leave (or other) arrangements. The policy framework and employment arrangements are intended to support this approach and to allow for innovative, unique solutions that fit the employee's lifestyle needs at the time. PCQ’s consideration will take into account the small size of the workforce and the need to ensure any changed arrangements continue to deliver services and corporate objectives. Given PCQ’s workforce size at Head Office, we are conscious of ensuring the appropriate level of customer service at all times. Having said that, the Collective Agreement provides flexibility in working arrangements and hours which PCQ has used to accommodate the family and lifestyle demands of its employees. The recent extension of the RDO scheme to all employees under the Collective Agreement is an example of providing employee flexibility. In addition to those provisions flexible start and finish times can be negotiated with supervisors providing they are operationally convenient. Although it does require some planning, some employees are employed on part time arrangements and there is currently one role being job shared. This demonstrated PCQ’s continued commitment to meet the changing demands of its workforce where possible.

of 26


6. Type of Employment Employment Category: 30 June

2007 30 June

20081 30 June

2009 30 June

2010 30 June

2011 30 June

2012 Permanent Full Time (Non Senior Executive)

- filled - vacant

30 4

47

47

47

47

47

Permanent Part-time (Non Senior Executive) (FTE)

3.5

3.5

3.5

3.5

3.5

3.5

Temporary (FTE) 1 3 3 3 3 3 Senior Executive

- full time - part time (FTE) - vacant

7 0 1

5 0 0

5 0 0

5 0 0

5 0 0

5 0 0

Apprentices (In House) 0 0 0 0 0 0 Trainees (In House) 0 0 0 0 0 0 Casual Employees (FTE) 1 0 0 0 0 0 Total Directly Employed Workforce:

47.5 58.5 58.5 58.5 58.5 58.5

Apprentices (Group) 0 0 0 0 0 0 Trainees (Group) 0 0 0 0 0 0 s.457 Temporary Visas 0 0 0 0 0 0 Number of Employees engaged on AWAs with Contractors

Data Not Available

(DNA)

(DNA) (DNA) (DNA) (DNA) (DNA)

Contractor Employees (Trade/Technical)

Contractor Employees (Professional/Administrative/ Clerical)

0 3 10 12 12 12

Labour Hire (Trade/Technical - FTE)

1

Labour Hire (Professional/ Administrative/ Clerical - FTE)

1

Total Workforce: 49.5 60.5 68.5 70.5 70.5 70.5 1 Figures reflect the new structure and assume all new positions are filled. PCQ manages resource demands by bringing in consultants to extend the organisation’s capabilities for short-term one-off projects and for specialist skills. PCQ continually monitors and assesses its human resources requirements. In recent years PCQ has experienced high demand which has been partially met by use of external resources (consultants) and temporary employees. Part of the rationale for this approach was that the resource demands were temporary in nature, reflecting non-linear project demands. More recently it has become apparent that PCQ needs to devote more attention to the management of Abbot Point. Failure to grow the organisation to meet demand leaves PCQ potentially unable to realise value for its customers and shareholders or increase the risk profile of the organisation. The increased management attention at Abbot Point requires additional resourcing as the coal terminal expands and becomes multi user. In addition, Abbot Point is targeted for a diversification of trades which requires additional management input. To this end the Board approved a new organisational structure in January 2008. Separately PCQ will write to shareholding Ministers seeking their approval for the proposed remuneration of the Senior Executives under that structure.

of 26


7. Use of Apprentices and Trainees There are no apprentices or trainees currently being employed by PCQ. The types of resources required permanently by PCQ cannot be addressed by apprentices or trainees as the major skill shortages for PCQ are in the professional engineering and environmental areas with strong project management skills. Compliance with the State Government Training Policy is a requirement of all major construction contracts. This requires the employment of apprentices and trainees in appropriate circumstances. Contractors must submit returns advising PCQ of the details of trainees and apprentices they employed on site. 8. Workplace Health and Safety PCQ has eight work sites, three with more than two employees and five other single employee work sites. The largest work site is the Brisbane Head Office, with the principal activity being administration. The activities at the other work sites are principally property maintenance; including mowing, wharf maintenance and workshop activities. No port handling activities are carried out by PCQ staff. PCQ is committed to the safe operation of our business and to ensuring the health and safety of our employees and others in our workplaces. The high safety standards expected in PCQ workplaces are being maintained and continuously improved through employee awareness and involvement, in conjunction with the implementation of sound risk management practices and effective systems and procedures. Development of Safe Work Method Statements in all port workplaces was successfully completed in the timeframe advised in the previous plan (i.e. first half of 2007). These statements provide documented work procedures that have been prepared in advance to appropriately manage risks in the workplace. They contribute to the high safety performance achieved in PCQ's workplaces. PCQ conducts annual audits of its work sites to ensure compliance with legislation and to identify areas for continual improvement in performance. PCQ has adopted the Australian/New Zealand 4801:2001 Standard and PCQ’s Health and Safety policies, procedures and workplaces are audited to this standard. Internal audits of all PCQ workplaces were conducted in 2007 by PCQ’s Health and Safety Coordinator. PCQ’s employees continue their high level of commitment to maintaining safe and healthy workplaces and a good safety culture has been developed throughout the organisation. The audits did not indicate significant safety issues in any PCQ workplace. The last Lost Time Injury to occur was in October 2005. The Lost Time Injury Frequency Rate for PCQ employees averaged over the previous twelve months remains at zero as at December 2007, a target which PCQ continues to strive to maintain. 9. Equal Employment Opportunity (EEO) and Anti-

Discrimination PCQ has developed its policies to ensure the protection of merit, equity and impartiality. The recruitment and selection process is merit-based and promotes equal access to employment opportunities for all members of the community. PCQ has grievance and appeal processes in place and fosters practices that are non-discriminatory. PCQ ensures the principles of merit and equity are upheld in its processes associated with recruitment, selection and promotion of staff. PCQ is committed to the principle of equal remuneration for men and women employees for work of equal or comparable value. PCQ’s policies are included in induction training and the subject of periodic briefings. On 18 October 1996 PCQ, due to its small number of staff (33 at the time, still under 50 (including vacancies)), was granted an exemption from the provisions of the Equal

of 26


Opportunity in Public Employment Act 1992 requiring development, implementation and reporting on an EEO Management Plan. It is anticipated that PCQ will employ over 50 staff during 2008/09 and prepare EEO management plans and other reporting requirements under legislation to apply from 2009/10. 10. Interstate Acquisition/Operations PCQ does not have and does not intend to engage employees located interstate or overseas during the currency of this plan. 11. Joint Venture Projects PCQ currently does not have employees involved in the operation of joint venture assets. No such arrangements are planned. 12. Management of the Relationship Between GOCs and

Unions PCQ believes it has effective working arrangements with both the AWU and QPSU who are the union parties to our Collective Agreement. It is PCQ’s view that these relationships have not been affected by the introduction of WorkChoices as PCQ has to the extent possible in law retained arrangements that were on foot prior to the federal legislation applying. PCQ is receptive and accommodating to discuss matters with unions and, given their relative infrequency, has supported all requests for unions to talk to staff even during working hours. Consultative Arrangements PCQ will endeavour to deal with industrial relations matters cooperatively through consultative arrangements with employees and union delegates at the workplace level and through employees and/or delegates and union representatives or officials at the organisation level. Paid involvement of delegates and relevant employees shall be considered in relation to such consultative arrangements, as well as in circumstances where their involvement facilitates the resolution of industrial relations issues or assists the employer in developing and implementing new initiatives, provided they are not involved in industrial action. Arrangements related to paid union meetings in place immediately prior to 27 March 2006 shall be continued. As part of induction, PCQ provides employees with information indicating that PCQ encourages employees to join and maintain financial membership of an organisation of employees that has the right to represent their industrial interests. PCQ encourages accredited union delegates and/or job representatives, and will not unnecessarily hinder them in the reasonable and responsible performance of their duties. Right of Entry of Union Officers to the Workplace An officer of a union party to PCQ’s Collective Agreement will be provided with access to relevant workplaces during business hours to inspect and request information and/or discuss with the employer and members or potential members, a suspected breach of applicable employment legislation, a relevant award or enterprise agreement or a workplace or industrial matter. This is subject to seeking access from a responsible manager or other person in charge. Permission will not be unreasonably withheld, but access and the activities undertaken thereafter will not interrupt the normal continuity of work.

Where by law, entry to certain operations subject to national/State security initiatives can only occur under escort unless the necessary authorities are held, Union officials are required to make contact with PCQ beforehand to ensure necessary compliance before entering workplaces where this might be the case (e.g. in the ports).

of 26


Industrial Relations Education Leave Paid time off not exceeding five days per union in any one year non-cumulative will be made available to a duly elected or appointed union representative or delegate, upon written application by the union at least 6 weeks in advance (or as is mutually agreed by the union and PCQ), to attend courses or seminars conducted by the union or specific training courses approved and accredited by the union. PCQ will give consideration to the special requirements of any regionally based workplaces in applying the limits on paid time off referred to above, provided that the granting of such leave does not unreasonably interfere with PCQ’s operations. The scope, content and level of such courses or seminars shall be such as to contribute to a better understanding of industrial relations within PCQ’s operations. 13. Redundancy Provisions Employees of PCQ covered by the Collective Agreement have redundancy provisions documented in the agreement. PCQ has developed a Redundancy Policy, the provisions of which operate to comply with the provisions of the Collective Agreement and industrial legislation. The policy allows for the greater of:

• two weeks pay, plus two weeks pay for every year of service. A proportionate amount is payable for an incomplete year of service; or

• the provisions of industrial legislation. In relation to staff not covered by the Collective Agreement, PCQ has appointed those staff to particular positions with defined accountabilities. These staff would be entitled to redundancy arrangements where, if due to organisational change, the position that the employee was appointed to substantially no longer exists within the organisation. In those cases, PCQ would apply similar redundancy arrangements as apply to Collective Agreement staff, unless a particular contract included specific provisions for redundancy. In any situation of redundancy, options for redeployment and retraining of staff will be exhausted before the offer of voluntary redundancy arrangements is considered. There will be no forced redundancies without the explicit and written sanction of shareholding Ministers. No forced redundancies are planned. 14. Employment Security The Collective Agreement states:

“The Ports Corporation is committed to optimising the employment security of employees by: • training and educating employees and providing retraining where appropriate; • career development and equal opportunity; • providing timely advice and consultation with employees and their industrial

organisations with regard to any significant changes which may impact upon labour requirements; and

• committing to no forced redundancies during the life of the Agreement, except in exceptional circumstances. Should this situation arise, employees and the employee’s nominated representative, where relevant, would be consulted in accordance with the Agreement."

This commitment applies equally to staff not covered by the Collective Agreement and for the period of this employment and industrial relations plan regardless of the Collective Agreement terminating.

of 26


15. Contracting Out PCQ manages resource demands by bringing in consultants to extend the organisation’s capabilities for short-term one-off projects and for specialist skills. The organisation’s needs are assessed against the continuing need for these additional resources to achieve planned outcomes. PCQ will seek to achieve best value outcomes and internalising positions will occur when this represents the most effective way for PCQ to achieve its objectives. PCQ will comply with any relevant directions and will have regard to policies and guidelines issued by government when employing contractors or consultants. The standard conditions of contract utilised by PCQ when engaging contractors ensure compliance with the general law and that contractor's employees are competent and perform using safe work practices. PCQ engages consultants according to its policy “Use and Engagement of Consultants”. That policy specifies that a review will be conducted at the end of a consultancy. Contractors and/or labour on-hire arrangements are utilised by PCQ in an orderly and responsible manner, such that there is not a detrimental effect on the State’s or public interest e.g. causing disruption to services to the public or causing damage to the economy or standing of the State.

It is recognised that circumstances arise where the use of Contractors is either desirable or essential. These circumstances are seen to be within the following guidelines:–

a) The work volume, type of work or specialisation required is beyond the capacity of resources or staff;

b) It is in PCQ’s interest to undertake such work, including the issue of cost effectiveness; or

c) The security and tenure of employment of additional staff required to meet work peaks cannot be guaranteed.

Contractors will not be used to avoid training existing staff or employing new staff to cater for emerging areas of work. “Emerging areas of work” does not include one-off works or temporary work peaks. In engaging contractors for major activities, the contractors' industrial relations practices are included as part of the selection criteria. In addition, contractors and/or their employees will not be appointed to any position as permanent employees unless selection processes documented in PCQ’s policies have been followed. 16. Superannuation The Queensland Government’s QSuper scheme is available to all PCQ employees. PCQ (supported by agreement of employees) does not intend to investigate other superannuation schemes during 2008/09. Directors may nominate where their superannuation contributions will be made and PCQ will consider specific requests by employees who have valid reasons for not wanting to contribute to QSuper. For non-casual employees in QSuper, PCQ contributes 12.75% of an employee’s salary where the employee agrees to contribute a further 5% (or 5.88% pre-tax for QSuper defined benefit scheme). PCQ’s continued use of the QSuper scheme satisfies the requirements for member choice of super schemes under Federal legislation. In summary, superannuation arrangements currently in place (as at 1 January 2008) for all PCQ staff including casuals are:

of 26


QSuper Defined Benefit Account 25 QSuper Accumulation Account 23 Other funds – general staff 1 Other funds - directors 6 Total 55

Contributions by employees to QSuper accounts determine the level of employer contribution rates in accordance with QSuper determined formulae. As from 1 July 2008, PCQ will meet the superannuation guarantee obligations in relation to Ordinary Time Earnings for all superannuation funds. Employer contributions for other superannuation funds are made in accordance with the superannuation guarantee requirements (currently 9% of base earnings). PCQ has no role in relation to QSuper’s use of “surpluses” (or for that matter “deficits”) in relation to the QSuper Defined Benefit Account. Enquiries in relation to this issue should be addressed directly to QSuper. 17. Consultation PCQ, in developing and implementing its industrial relations strategies, communicates with its employees, its users, relevant trade unions and central agencies. In accordance with section 171(7) of the Government Owned Corporations Act 1993 and the Guidelines for Development of an E&IR Plan, OGOC, Queensland Transport (QT), Office of the Public Service Commissioner (OPSC), DEIR, AWU and QPSU are being consulted on this document. The current Collective Agreement also provides consultative measures for regular communications with the AWU and QPSU over the implementation of the Agreement provisions. All issues raised in consultation have been satisfactorily addressed with the parties raising the issue and this E&IR Plan is the outcome of that consultation, effectively representing an agreed position between the parties. A copy of the final Plan is provided to the union and is made available to staff. PCQ has appointed a panel of IR consultants comprising Livingstones, Jones Ross and Workplace Consulting Queensland, as its industrial relations consultants. PCQ will provide a brief report on performance against the Plan to DEIR and a copy to OGOC by the end November 2008, highlighting any significant divergences from the Plan and the background/context for these variations.

of 26


Attachm

ent 1

of 26


Attachment 2

of 26

Attachment 3

Minimum Employment, Industrial Relations and Job Security Principles for Government Owned Corporation (GOC) Employees

December 2007


of 26


Context The Queensland Government through shareholding Ministers holds the principal financial interest in Government Owned Corporations (GOCs). Consequently Government is an important stakeholder in GOCs, which now operate in the national marketplace. Government also has a leadership role setting minimum employment standards and providing an example of a model employer. Rationale The introduction of Work Choices legislation has created some uncertainty regarding minimum employment standards, industrial relations practices and job security, especially in the government owned corporation sector, which is subject to the Work Choices legislation. This Government is opposed to the erosion of employment conditions by the Work Choices legislation introduced in 2006. Objective The principles set out below, which have been endorsed by Government, are intended to confirm the Government’s position on minimum employment conditions and industrial relations practices and ensure that pre-Work Choices conditions are not eroded. As a general principle, GOCs should maintain arrangements and policies existing prior to Work Choices, including in any GOCs subsidiaries within Queensland unless otherwise agreed with unions. GOCs should also work cooperatively with unions to resolve issues using services available at the State level where possible. Application GOC shareholding Ministers request that GOCs put in place available safeguards to maintain standard employment conditions, industrial relations practices and job security through the provisions of GOC Employment and Industrial Relations Plans (E&IR Plans). E&IR Plans form part of the annual Statements of Corporate Intent which are considered and approved by the shareholding Ministers by 30 June each year in line with the Government Owned Corporations Act 1993 provisions. Legal advice from Crown law supported this approach, except where the relevant GOC is subject to the National Code of Practice for the Construction Industry e.g. Qld Rail as a result of undertaking work on federally funded rail infrastructure projects. Principles 1. Union Encouragement

At the point of engagement, employees are to be provided with a document indicating that the corporation encourages employees to join and maintain financial membership of an organisation of employees that has the right to represent their industrial interests. Union delegates and job representatives have a role to play within a workplace. The existence of accredited union delegates and/or job representatives is to be encouraged. Accredited union delegates and/or job representatives shall not be unnecessarily hindered in the reasonable and responsible performance of their duties.

2. No Disadvantage

Rates of pay and conditions of employment included in a Notional Preserved State Award and/or a Preserved State Collective Agreement, when taken as a whole, are

of 26


not to be reduced in the future except as required by relevant federal legislation or as agreed between the relevant industrial parties.

3. Enterprise Agreements

The following conditions of employment and practices shall continue – a) Collective Agreements with unions shall be the preferred means of industrial regulation of rates of pay and conditions of employment; b) new individual common law contracts shall not be written within the relevant enterprise agreement envelope (individual contracts should only be executed where total fixed remuneration equates to or exceeds the equivalent of the Queensland Public Service AO-8 level (from 1/7/2007 $91424.68 per annum) plus 12.75% plus the equivalent of annual leave loading plus any overtime component) or the top rate in the respective GOC enterprise agreement plus the applicable superannuation and annual leave components, where the aggregate of these is lower –

i) An amount lower than outlined in b) above may be negotiated within an enterprise agreement as agreed between the relevant parties; and

ii) Developing and utilising alternative employment arrangements under enterprise agreements, which provide hours and overtime flexibility linked to a rolled-up rate of pay, is preferred to the use of individual contracts within the relevant enterprise agreement envelope/s.

4. Payroll Deductions of Union Fees

Requests from employees for payroll deduction of union fees are to be accommodated where the service was made available immediately prior to 27 March, 2006. It is noted that Government agencies provide this facility without charge to relevant unions.

5. Use of Contractors

GOCs will be advised of Best Practice Guidelines for the Use of Contractors by GOCs and for the Use of Overseas Staff under Temporary Visa Arrangements Sponsored by the Employer, to Cover Skill Shortages. The following general principles will also be included in the Best Practice Guidelines. (a) Contractors and/or labour on-hire arrangements are to be utilised in an orderly

and responsible manner, such that there is not a detrimental effect on the State’s or public interest e.g. causing disruption to services to the public or causing damage to the economy or standing of the State.

(b) It is recognised that circumstances arise where the use of Contractors is either

desirable or essential. These circumstances are seen to be within the following guidelines:–

(i) The work volume, type of work or specialisation required is beyond the capacity of resources or staff; (ii) It is in the public interest to undertake such work. Public Interest includes issues of cost effectiveness; or (iii)The security and tenure of employment of additional staff required to meet work peaks cannot be guaranteed.

(c) The use of contractors is not to be used to avoid training existing staff or

employing new staff to cater for emerging areas of work. “Emerging areas of work” does not include one-off works or temporary work peaks.

of 26


(d) In addition, contractors and/or their employees are not to be appointed to any position as permanent employees unless normal advertising and selection processes have been followed.

6. Unfair Dismissal

Responsible and defensible policies and procedures regarding the management of performance, conduct and capacity of staff should be in place and adhered to. That is, except where situations arise warranting summary dismissal under common law, – a) if an employee’s conduct, capacity or performance is deficient —

(i) ensure the employee is formally warned about the conduct, capacity or performance and is given a chance to rectify any deficiency; and (ii) ensure the employee is given an opportunity to respond formally to any allegation about their conduct, capacity or performance; and (iii) ensure employees have a right to be represented through all parts of the process; and

b) if dismissal is subsequently contemplated –

(i) provide the employee with a clear reason for dismissal detailing the process gone through to seek improvement as referred to above; and (ii) ensure clarity as to whether the dismissal is related to the employee’s conduct, capacity or performance.

7. Right of Entry of Union Officers to the Workplace

An officer of a union party to a GOC award or enterprise agreement shall be provided with access to relevant workplaces during business hours to inspect and request information and/or discuss with the employer and members or potential members, a suspected breach of applicable employment legislation, a relevant award or enterprise agreement or a workplace or industrial matter. The above is subject to seeking access from a responsible manager or other person in charge. Permission shall not be unreasonably withheld, but access and the activities undertaken thereafter shall not interrupt the normal continuity of work. It is noted that by law, entry to certain operations subject to national/State security initiatives can only occur under escort unless the necessary authorities are held. Union officials should make contact with GOCs beforehand to ensure necessary compliance before entering workplaces where this might be the case e.g. ports, airports and like essential infrastructure installations.

8. Industrial Relations Education Leave

Unless an award/enterprise agreement and/or custom and practice immediately prior to 27 March 2006 provides otherwise, paid time off not exceeding five days per union in any one year non-cumulative, is to be made available to a duly elected or appointed union representative or delegate, upon written application by the union at least 6 weeks in advance (or such lesser period as was provided for in an award/enterprise agreement or custom or practice immediately prior to 27 March 2006 or as is mutually agreed by the union and the GOC), to attend courses or seminars conducted by the union or specific training courses approved and accredited by the union. The GOC shall give consideration to the special requirements of any regionally based workplaces in applying the limits on paid time off referred to above, provided that the granting of such leave does not unreasonably interfere with the GOC’s operations. The scope, content and level of such courses or seminars shall be such as to contribute to a better understanding of industrial relations within the GOC’s operations.

of 26


9. Consultative Arrangements

GOCs shall endeavour to deal with industrial relations matters cooperatively through consultative arrangements with employees and union delegates at the workplace level and through employees and/or delegates and union representatives or officials at the organisation level. Paid involvement of delegates and relevant employees shall be considered in relation to such consultative arrangements, as well as in circumstances where their involvement facilitates the resolution of industrial relations issues or assists the employer in developing and implementing new initiatives, provided they are not involved in industrial action. Where paid union meetings have been available as a result of an award/enterprise agreement or custom and practice existing immediately prior to 27 March 2006, such arrangements shall be continued.

10. Job Security

In any situation of redundancy, options for redeployment and retraining of staff shall be exhausted before the offer of voluntary redundancy arrangements is considered. There shall be no forced redundancies without the explicit and written sanction of relevant shareholding Ministers in the case of redundancies at GOCs.

11. Assistance with the Resolution of Disputes

The Industrial Relations Act 1999 (IR Act) was amended in 2007 to provide for parties to have access to the Queensland Industrial Relations Commission (QIRC) by agreement, to conciliate and/or arbitrate matters in dispute and to provide greater flexibilities in the structure of the QIRC to respond to changing workloads as a result of the introduction of Work Choices. This includes parties to Preserved State Collective Agreements or Notional Agreements Preserving State Awards. GOCs are encouraged to utilise these avenues as a means of resolving issues at the State level. Wherever possible, GOCs should genuinely attempt to resolve issues through the provisions of the IR Act. If a matter cannot be resolved as a result of utilising the QIRC functions, such processes will satisfy the requirements of the Workplace Relations Act 1996 regarding alternative dispute resolution, should matters subsequently be referred to the Australian Industrial Relations Commission by way of dispute. GOCs are advised to develop a Dispute Resolving Policy that provides a consistent and clear approach for the parties to deal with disputes early on. The Disputes Resolving Policy may list the nominated person(s) agreed with the union(s) to assist the parties in resolving disputes and a range of functions and conditions agreed between the parties to determine on a case by case basis the best way to deal with particular disputes. This is not a process to deal with industrial action.

See attachments: Guidelines for Establishing a Disputes Resolving Policy for use in seeking the assistance of the Queensland Industrial Relations Commission under section 273A of the IR Act.

of 26


ATTACHMENT

GUIDELINES: Establishing a Dispute Resolving Policy The GOC and Union/s shall have regard to the following principles in establishing a disputes resolving policy. Step 1 Resolution at the Workplace Level

Involves genuine attempt to resolve the issue using consultative arrangements with employees and union delegates and if necessary, with union officers. If there is no resolution at the work place level, proceed to next level (Step 2):

Step 2 Alternative Dispute Resolution Process [including QIRC assistance]

Who The disputes policy shall list the nominated person (s) agreed between the parties to assist in resolving disputes. Person/s may include a Queensland Industrial Relations Commission (QIRC) member/s in relation to utilising section 273A under the Industrial Relations Act 1999 or, alternatively establish a panel of agreed persons (eg industry expert, AIRC/QIRC representative and union representative)

How The parties may determine the appropriate approach to each dispute on a case-by-case basis and must agree in writing how the dispute is to be resolved. If the parties agree to seek the QIRC’s assistance, the parties must submit a referral agreement to the QIRC as to how the dispute is to be resolved by the QIRC (refer to section 273A (1)(b under the Industrial Relations Act 1999).

What General Provisions Provisions covered in the disputes resolving policy must be agreed between the parties in advance of handling any particular dispute. Such provisions can include: (i) Commitment from parties to follow agreed process. (ii) Determine appropriate timeframes to deal the dispute.

(iii) The allocation of any costs associated with a dispute process will

be as agreed between the parties on a case-by-case basis or if no agreement can be reached, each party shall meet its own costs.

(iv) Work as directed unless the employee has a reasonable concern about an imminent risk to their health or safety.

(v) At any time industrial action is threatened or taken during the process, either party may directly proceed to AIRC for assistance. Any time industrial action is threatened or taken, the GOC must inform Department of Employment and Industrial Relations as soon as possible.

of 26


Functions of QIRC The following provisions are consistent with the functions available under section 273A (4) of the Industrial Relations Act 1999: (a) conciliating; (b) arbitrating; (c) granting a remedy or other relief; and/or (d) deciding any other issue or question.

Furthermore, a decision by the QIRC in performing the dispute resolution functions does not bind the parties unless the referral agreement provides for the decision to bind the parties.

of 26


Disputes Resolving Policy - Checklist The following checklist could also be used as a basis of a referral agreement under section 273A(1)(b) of the Industrial Relations Act 1999. 1. Request the informal assistance of [INSERT Commissioner] to resolve a dispute between

[INSERT parties involved]. 2. Advise the dispute is in relation to [INSERT subject matter, brief background and

timeframe the dispute has existed]. 3. Indicate the [INSERT union or other party to the dispute] has been notified and agrees to

the Commissioner’s assistance to resolve this dispute and the parties request that the Commissioner be requested [INSERT terms of disputes process eg o to conciliate the matter o to conciliate the matter and if the dispute remains unresolved, arbitrate the matter o to arbitrate the matter o granting a remedy or other relief o deciding any other issue or question arising in the dispute.

4. State that in its role as [INSERT conciliator / arbitrator] the Commissioner is

requested [INSERT any of the following relevant term]s:

o to observe the confidentiality of the matters in dispute o to identify and define the matters in dispute o to develop a procedure that aims to resolve the dispute quickly, fairly and cost-

effectively o to suggest resolution techniques for individual issues aimed at narrowing the matters

in dispute o to act as the facilitator of direct negotiations between the parties o to make suggestions for resolution (Conciliation process) o express opinions about a reasonable resolution (Conciliation process) o that if the matter is unresolved it may within seven days of terminating the process,

provide a written report to the parties expressing the opinion of what would be a reasonable resolution of the dispute (Conciliation).

o to determine the matter (s) in dispute by selecting one only of the final round of offers on the basis of which offer the Commissioner believes provides the most reasonable basis on which to resolve the matter in dispute (Arbitration)

o not to amend or otherwise qualify the offer it selects (Arbitration) o to notify the parties in writing as to the offer it considers to provide the most

reasonable basis of settlement as soon as practicable after receiving the final round of offers from the parties (Arbitration)

o to make a recommendation which the parties accept as a binding resolution of the dispute. The recommendation can be based on the information provided in conciliation and additional information provided by the parties. The parties agree that the Commission may issue directions for the purposes of obtaining further information. (Informal Determination)

o to make a formal determination and that the parties agree to abide by the determination. The parties will have the opportunity to be heard formally on the matter(s) in dispute and the Commissioner will only regard material including witness evidence, submission and will disregard admissions, concession, offers or claims made in mediation. The Commissioner may also make and issue directions in relation to the process leading to the determination and the parties will abide by those directions. (Formal Determination)

5. Address procedural matters including [INSERT details about:

o how the parties will present its position o confidentiality arrangements o representation

of 26


o timing, location and duration of the process o if a telephone conference is required o how the process will be recorded o any other particulars about the Commissioner’s role in relation to establishing

procedures.

6. Advise that in the event that the requested Commissioner is not available, the parties request [INSERT Commissioner] to assist the parties.


ATTACHMENT 3 - Government Policies and Guidelines Listed below are the current policies that apply to GOCs: • Agreement Making in Government Owned Corporations - Guidance for Chief Executive Officers

(2004) • Audit and Reporting Requirements for Government Owned Corporation Controlled Entities and

Investments (2001) • Code of Practice for the Building and Construction Industry (2000) • Code of Practice for Government Owned Corporations Financial Arrangements (2004) • Corporate Governance Guidelines for Government Owned Corporations (2005) • Cost of Capital Principles – Government Owned Corporations – (2006) • Community Service Obligations – A Policy Framework (1999) • Development of Employment and Industrial Relations Plans in Government Owned Corporations -

Guidelines (2002) • Government Owned Corporation Subsidiaries - Key Shareholder Requirements for Constitutions

(2006) • Guidelines for Export of Services by Government Owned Corporations (2001) • Guidelines for Frequent Flyer Schemes (1999) • Investment Guidelines for Government Owned Corporations (2003) • Local Industry Policy: A Fair Go for Local Industry (1999) • Queensland Port Government Owned Corporations - Local Government General Rates

Equivalents Regime: Guidelines for Assessment, Collection & Payment (2000) • State Purchasing Policy (2000) • Guidelines for the Preparation of Statements of Corporate Intent and Corporate Plans For

Government Owned Corporations (2006) • Government Owned Corporation Overseas Travel Policy

PCQ binds itself to the following policies and guidelines: • Guidelines for the Issue of Harbour Towage Licences • Transport Portfolio Code of Practice for Close Circuit Television Systems (2007) • Spirit and intent of the Government Land Disposal Policies within the Government Asset

Management System (GAMS)


ATTACHMENT 4 Corporate Entertainment and Hospitality Events under $5,000

Type of Function Number of Functions

2008/09 Budget

Details

Staff functions 40 $16,700 Provided to show recognition of employee contributions and ensure a positive company culture is maintained to increase retention of key staff.

Business development 20 $ 6,600 Functions to attract new customers or enhance existing customer relationships.

Stakeholder and community engagement

20 $ 1,100 Enhance relationships, including Port Advisory and Community Reference Group meetings.

Total 80 $24,400

STATEMENT OF CORPORATE INTENT 2008/09 · • Implement lessons learnt from 2007 pricing dispute...

Documents

Transcript of STATEMENT OF CORPORATE INTENT 2008/09 · • Implement lessons learnt from 2007 pricing dispute...