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Australian Trade Commission (Austrade) Reports 2004-05


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Australian Trade Commission

Annual Report 2004-05

. :-

Austrade contributes to community wealth by helping more Australians succeed in export and international business.

To be recognised as:

► the world's leading export and international business facilitation agency

► a major contributor to Australia's economic growth and the globalisation of Australian business

► an organisation that excels in client service, information management and the development of the full potential of its people.

► Austrade assisted 4358 clients to achieve export deals worth $18,364 billion.

The number of businesses that exported with Austrade's assistance increased by 31 per cent on the number assisted in 2003-04 (see page 31).

► Austrade worked to maximise export and international business outcomes arising from the free trade agreements (FTAs) with the United States, Thailand and Singapore. To help businesses understand the benefits arising from

FTAs Austrade took a lead role in the development of a whole-of-government website www.fta.gov.au (see page 28).

► Austrade began appointing 30 new export facilitators to offer wider geographical coverage in the United States to support the implementation of the Australia-United States FTA

(see page 14).

► Austrade administered the payment of 3277 grants under the Export Market Development Grants (EMDG) scheme, which reimburses companies for eligible export promotion expenditure

(see page 35).

► Austrade registered the interest of over 900 Australian businesses w illing to assist in tsunami reconstruction projects. We held seminars around Australia in April 2005 to brief the

business community on how to access information and bid on development projects in the reconstruction phase following this disaster (see page 21).

► Austrade was recognised as the Best Trade Promotion Organisation from a Developed Country' at the inaugural W orld Trade Promotion Organisation

(TPO) Awards held in Malta on 1 October 2004 (see page 22).

Letter of transmittal iii

Managing Director's report iv

Austrade at a glance vi

Part 1: Austrade overview 1

Part 2: Outcomes and outputs— our achievements 23

Part 3: Services, accountability and governance 43

Part 4: Financial statements 67

Appendixes A. TradeStart service providers and office locations at 30 June 2005 112 B. Austrade's Client Service Charter 114

C. Freedom of inform ation 115

D. Staffing overview 118

E. Financial and staffing resources summary 120

F. Resources for outcomes 121

G. Rurchaser/provider arrangements 123

H. EMDG recipients— overview 124

List of figures and tables 126

Abbreviations and acronyms 127

Compliance index 128

Index 129

This report has been prepared taking into account feedback received follow ing receipt of a Silver Award for Austrade's 2003-04 annual report from Australasian Reporting Awards Inc.

15 September 2005

The Hon Mark Vaile MP

Deputy Prime Minister and Minister for Trade Parliament House

Canberra ACT 2600

Dear Minister

The Board of the Australian Trade Commission is pleased to present the annual report of the Commission for the year ended 30 June 2005.

The report has been prepared in accordance with the requirements of Section 9 of the Commonwealth Authorities and Companies Act 1997 and Section 92 of the Australian Trade Commission Act 1985.

Under section 9 of the CAC Act, directors of the Board are responsible for producing an annual report in accordance with the rules laid down in Schedule 1 of this Act, including a 'Report of Operations' prepared

in accordance with the Finance Minister's Orders.

This Report of Operations was made in accordance with a resolution of the Commission's directors on 15 September 2005.

Yours sincerely

Ross Adler AO Chairman

■

The year under review

saw two new major free trade agreements (FTAs) come into effect: one with the United States, the other with Thailand. Australian companies have already

seen the first export outcomes as a result.

The Australian

Government announced additional funding for the Export Market Development Grants scheme.

Australia's participation at World Expo in Aichi, Japan included industry trade missions, and the first Business Club Australia events were held

in the lead-up to the Melbourne 2006 Commonwealth Games.

Austrade continued to deliver the Government's agenda to help build Australia's export culture and drive growth in exports. Our dedicated network of staff across the world and in Australia assisted an unprecedented number of Australian businesses

gain the benefits from international business opportunities, while at the same time maintaining Austrade's high levels of client satisfaction.

The security of Austrade's clients and staff remains our most important priority. The Australian Government allocated significant additional funding to help Austrade upgrade security at

overseas posts.

A core activity throughout the year was helping Australian businesses take advantage of the opportunities arising from free trade agreements. The Australia-United States Free Trade Agreement came into effect on 1 January 2005. To help Australian companies gain the benefits, the Australian Government invested additional resources to appoint 30 new export facilitators dedicated to the US market. Many of these have already been appointed, including in Austin, Boston, Denver, Detroit, Honolulu, Houston, Kansas City, Miami and Seattle. A specialist selling- to-government team was established in Austrade's Washington office to assist exporters tap into the $200 billion US Government procurement market.

A specialist agriculture team, led by the Chicago

office, was also established.

In Thailand, Austrade actively targeted specific sectors where opportunities have been opening up as a result of the Thailand-Australia Free Trade Agreement. One major activity was a series of seminars highlighting the agreement held in Australian capital cities and regional areas.

To help businesses understand and benefit from all FTA opportunities, an online guide to Australia's implemented FTAs was launched at www.fta.gov.au. An FTA Export Advisory Panel, comprising senior representatives from a range of business councils and industry groups, was established to determine

new ways to extend export opportunities, now and in the future, with Australia's FTA partners.

...helping Australian businesses to take advantage of the opportunities arising from free trade agreements.

Austrade staff in tsunami-affected countries and in Canberra supported the disaster response effort, while a task force was set up to manage, inform and coordinate the commercial interests of Australian companies in the later reconstruction phase.

Throughout the year, Austrade's New Exporter Development Program (NEDP) and theTradeStart network continued to build on the strong results delivered last year. In an initiative to further enhance access to services for businesses in regional areas, the Australian Government announced additional funding for the establishment of eight export hubs that will offer the services and products of both TradeStart and Auslndustry to assist companies commercialise and grow through internationalisation.

The Export Market Development Grants (EMDG) scheme received a considerable boost with the announcement by the Australian Government of additional funding of $30 million over three years,

bringing total funding to $1 70 million in 2005-06.

In addition, Austrade sought the views of industry

and the community on the EMDG scheme as part of a formal review required under the Export Market Development Grants Act 1997.

iv Australian Trade Commission Annual Report 2004-05

To further extend the reach of Austrade's services to the business community, we expanded our Corporate Partnerships program, which works with corporate partners such as accountants, lawyers,

financiers and other business advisers to provide advice and support to potential exporters. Through these relationships, Austrade is able to broaden and deepen its reach into a diverse range of industries and businesses.

As part of Australia's participation in World Expo 2005, Australian businesses participated in high-profile industry missions to Japan, involving a program of networking and targeted business seminars coordinated by Austrade, the Department of Foreign Affairs and Trade (DFAT), and Invest Australia.

Business Club Australia: Melbourne 2006, the official program seeking to capitalise on international business opportunities through the Commonwealth Games, was launched by the

Minister for Trade and the Victorian Government Ministers for State and Regional Development and the Melbourne 2006 Commonwealth Games.

In 2004-05, business deals were still being concluded from contacts made during the business program for Rugby World Cup 2003, bringing the total number of companies helped by Rugby

Business Club Australia to 183 in trade and investment deals worth over $344 million.

Over the coming year, Austrade w ill continue to help Australian businesses capture

export opportunities...

Over the coming year, Austrade w ill continue to help Australian businesses capture export opportunities in markets right across the globe.

We w ill further expand our presence in markets where Australia now has free trade agreements and in markets of growing importance, such as China and India. Exploring new ways of working

through our private and public sector allies remains a priority, together with driving international capability in industries of significant export potential.

In realising all of these outcomes, I acknowledge the leadership of the Board of Austrade, including the dedicated contribution of Professor Eileen Doyle and Ms Mary Boydell, who retired from the

Board. I warmly welcome Mrs Kerry Sanderson and Mr Ian Knop to the Board. I am grateful for the support of the executive team in pursuing trade objectives and achieving results across the

network and I acknowledge the collaboration and support of state and territory governments and key business groups.

Together we are working to grow the exporter community and build a strong foundation for Australia's future economic prosperity.

I would like to convey my appreciation for the energy, dedication and commitment shown by all Austrade staff around the world over the past year, and for the spirit of cooperation we have with our allies and partners. Together we are working to grow the exporter community and build a strong foundation for Australia's future economic prosperity.

Peter O'Byrne Managing Director

Australian Trade Commission Annual Report 2004-05 v

Austrade is a global network of committed people who help Australian business access overseas markets and international trade opportunities for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

OPERATING FRAMEWORK

Austrade is a statutory authority within the Foreign Affairs and Trade portfolio.

Austrade is responsible to the Minister for Trade.

Key enabling legislation includes the Australian

Trade Commission Act 1985, the Commonwealth Authorities and Companies Act 1997, and the Export Market Development Grants Act 1997.

Austrade is governed by a Board whose members are drawn from business and government.

OUTCOMES

The outcomes Austrade seeks are primarily directed to the economic wellbeing of the Australian community and job creation through the growth of Australian companies by expanding their business internationally (see page 24).

GLOBAL NETWORK

At 30 June 2005, Austrade operated in 125 overseas locations in 59 countries in four global regions: the Americas; Europe, Middle East and Africa; North East Asia; and South East Asia, South Asia and Pacific.

Austrade's Australian network has 17 Austrade offices and 50 TradeStart offices. TradeStart is a partnership between Austrade, state and territory governments, industry associations and regional

development organisations.

The 50 TradeStart offices are contracted to 29 providers. See Appendix A for a full list of providers.

STAFF

At 30 June 2005, Austrade had 1058 employees; 437 in Australia (not including the TradeStart network) and 621 overseas. Of the staff working overseas, 77 are Australian-based employees working offshore and 544 are engaged overseas.

See Appendix D for our staffing overview.

PARTNERS AND ALLIES

Austrade works closely with the Australian business community; professional firms with complementary skills and services; federal, state, territory and local government agencies; regional development organisations; chambers of commerce; and peak

industry associations.

vi Australian Trade Commission Annual Report 2004-05

Part... % j /φ

Austrade overview

Our global network

Our structure

Our people

Our performance

Our programs

Our highlights

Austrade has a unique global network of offices and mobile resources operating in 142 locations. Austrade's deployment of resources reflects, in part, the destinations that Australian exporters choose to target due to favourable trade conditions, as well as locations of significant export potential. It also

reflects the priorities of the Australian Government, including markets where trade policy can have the greatest economic impact for the benefit of the Australian community.

Figure 1: Austrade's global network

* v

I Australia Americas Europe, M iddle East and Africa

In many locations, Austrade is represented through an office. However a flexible mobile workforce is also being engaged where new markets are tested and/or the organisation needs to rapidly increase its

regional reach in international markets offering high export potential. Austrade's international presence can take varied forms including the traditional office with Australian management, often in an embassy or high commission; a sub-office operated by local nationals; or a trade consultant seeking opportunities for Australian business.

1 North East Asia South East Asia, South Asia and Pacific

2 Australian Trade Commission Annual Report 2004-05

In 2004-05, Austrade had a network of 1 7 national offices plus an extensive network of TradeStart offices, (see Appendix A).

Figure 2: Austrade's Australian network

Darwin

Cairns

To w nsville

C e ra ld to n

Rockham pton

Brisbane G old Coast

Coffs H arb our

, Newcastle G osford Sydney------

'ollongong ...ow ra

nberra

□ Mascot D · Parramatta D Penrith □ Sutherland

□ Noi . ■ Hurstvi rth Sydney rstville

■ Werribee □ ( Geelong

Austrade office □ TradeStart office i t aunceston

TASM ANIA H oba rt

Part One: Our global network Australian Trade Commission Annual Report 2004-05 3

Figure 3 details Austrade's structure. Austrade's onshore operations are structured around a sales model, with two key positions, Exporter

Development Director and Client Services Director, responsible for sourcing and servicing exporters.

Austrade's offshore operations are structured around four regions; the Americas; Europe, Middle East and Africa (EMEA); North East Asia (NEA); and South East Asia, South Asia and Pacific

(SEASAP). In addition to being accountable for overall regional performance, each regional director, located within the region, is responsible for adding value to the management of key clients and customers in their region.

Four groups provide organisational support.

They are:

► Analysis and Planning

► Human Resources

► Finance and Information

► Government and Corporate Services, including Government, Industry and

Policy; Export Finance Assistance Programs (including the Export Market Development Grants scheme); Corporate Marketing and Communications; and Business Effectiveness (legal, procurement, risk management, security and property).

Figure 3: Austrade's management structure Deputy Prime Minister

and Minister For Trade

The Hon

M ark Vaile MP

I

Austrade Board

Chairman

Ross Adler AO

Managing Director

Peter O'Byrne

Margaret Lyons resigned on 14 January 2005. Leith Doody

acted in the position of Executive Director Government

and Corporate Services until the appointment of Hamish McCormick on 9 June 2005.

Executive Director Government and Corporate Services Hamish McCormick*

Export Market Development Grants (EMDG) scheme

Client Services Director Rat Evans

Exporter Development Director Di Robinson

Chief Finance and Information Officer

Greg Field

Human Resoures

Director Marcia Kimball

Analysis and Planning

Group Manager

Hazel Bennett

Board Secretary

and Executive O fficer

Stefan Trofimovs

Regional Director Europe, Middle East and Africa John Finnin

Regional Director SEA, South Asia

and Pacific David Twine

Regional Director North East Asia Laurie Smith

Regional Director

Americas Ian Wing

4 Australian Trade Commission Annual Report 2004-05

Credit for Austrade's achievements goes to the 1058 members of staff. Austrade's ability to service Australian business around the world is based upon the structure of hiring overseas-engaged- employees (OEE) with relevant business and

industry skills in-country. This framework is

supported by Australian nationals who bring with them an understanding of both the Australian

business environment and the organisational priorities and goals.

Austrade is supporting its employees to develop their capacity, capability, motivation and flexibility to deliver on the organisation's business goals. Austrade values and seeks a certain skill set

among employees to ensure that the organisation is represented by energetic and motivated professionals who are commercially astute, results-orientated, take a hands-on approach

and are strategic and innovative thinkers.

Maria Elena Saint Martin, Austrade's Business Development Manager in Mexico City, has had a remarkable year. For Maria Elena, who primarily concentrates on the

IT and construction industries, the 2004-05 financial year was a busy one. She organised an Australian stand featuring six Australian

companies in Latin America's largest construction industry exhibition; put together the first Australia-Mexico eLearning conference; and coordinated a buyers' mission to CeBIT Australia in May 2005. She assisted a number of new and existing exporters to do business in Mexico. In December 2004 she also welcomed

her daughter, Ana Laura, to the world.

M A R I A ELENA

S A I N T M A R T I N

Business Development Manager

Mexico City

Austrade staff attending the 2004 internal leadership program, Achieving Austrade's Priorities (AAP), Manly, New South Wales

Part One: Our people Australian Trade Commission Annual Report 2004-Os 5

Austrade has a comprehensive range of output

measures that enable it to demonstrate the extent to which it has achieved the outcomes set down for the organisation by the Australian Government. These outcomes and outputs are outlined on page 25, and detailed commentary on Austrade's performance is set out on the pages immediately following.

Internally, Austrade uses selected output measures as its key performance indicators (KRIs).The KPIs monitor and measure the organisation's performance

in assisting Australian businesses to achieve success in export and international business.

Figures 4 through 9 show Austrade's performance in 2004-05 for six of its KPIs. There are four additional KPIs:

► number of established exporters achieving export success with Austrade's assistance

(see page 31)

► number of clients achieving export success indirectly through Austrade (see page 31)

► value of outward investment success with Austrade's assistance (see page 32)

► community awareness of importance of the Australian Government's trade and international business facilitation activities through Austrade (see page 26).

Figure 4: Number of clients achieving export success with Austrade's assistance

The total number of clients achieving export success with Austrade's assistance has more than doubled since 2002-03, where success is defined as the achievement of an export sale.

4358

2002-03 2003-04 2004-05

Figure 5: Value of export success with Austrade's assistance ($m)

The value of exports achieved by clients with Austrade's assistance has more than doubled in three years.

18 364

2002-03 2003-04 2004-05

6 Australian Trade Commission Annual Report 2004-05

374

i________

2002-03

1717

2003-04 2004-05

Figure 6: Number of new or irregular exporters achieving export success with Austrade's assistance

Since the commencement of Austrade's New Exporter Development Program in 2002, the number of new or irregular exporters

assisted that have achieved export success has increased more than tenfold to 171 7.

An irregular exporter is defined as an organisation that has not earned recurrent export revenue in the same market during the last three years.

161

78

2002-03 2003-04 2004-05

Figure 7: Number of clients achieving outward investment success with Austrade's assistance

The number of clients achieving outward investment success with Austrade's assistance has more than doubled in three years.

1723

795

2002-03 2003-04 2004-05

Figure 8: Number of clients in the biotechnology, ICT and services industries achieving success with Austrade's assistance

Since the commencement of the program to assist clients in the biotechnology, ICT and services industries, the number of clients

achieving success with Austrade's assistance has more than doubled over three years. Success for clients in these sectors is defined in terms of export, investment and non-monetary measures such as strategic alliances and joint ventures.

89%

2002-03 2003-04 2004-05

Figure 9: Client satisfaction with Austrade's services

The annual client satisfaction survey concluded

that 89 per cent of clients rated Austrade's services as good, very good or extremely good.

* The client satisfaction rating is for established

exporters receiving Austrade services.

The satisfaction rating for NEDP clients was

also 89% (see page 32).

Part One: Our performance Australian Trade Commission Annual Report 2004-05 7

TRADESTART

TradeStart is a national network of 50 offices that provide the resources, advice and expertise to help Australian businesses export successfully, with a particular focus on new and irregular

exporters and small to medium enterprises (SMEs), especially in regional and rural Australia.

The Australian Government has provided $21.5 million from 2002-03 to 2005-06 to fund the TradeStart network.

TradeStart is a partnership between Austrade, state and territory governments, industry associations

and regional development organisations. A total of 29 service providers were involved in the program in 2004-05.

In 2004-05 TradeStart helped 634 Australian businesses achieve export sales worth $113 million. Of these clients, 449 were new exporters. The 26 regional TradeStart offices helped 264 businesses achieve export sales worth $41.1 million and 158 of these clients were new exporters.

In 2004 the Australian Government announced the establishment of eight export hubs as an election commitment. Two of these hubs, in Bega and Tweed Heads, will also be the location of new TradeStart offices. The hubs co-locate TradeStart and Auslndustry services and $6.4 million has been provided from 2004-05 to 2008-09 for this initiative. Export hubs w ill open progressively from July 2005.

N E W EXPORTER D E V E L O P M E N T P R O G R A M

Through the New Exporter Development Program (NEDP), Austrade and TradeStart offer a package of free-of-charge export services designed to assist small to medium Australian companies develop their businesses overseas and make their first export sale. It gives Australian businesses the best possible start to exporting by providing advice and information about getting into exporting, export

coaching and assistance on the ground in foreign markets.

Support for potential exporters is available through Austrade and partner organisations throughout Australia and the overseas network. .

Austrade's primary objectives are to drive growth in export value and double the number of Australian

exporters, in 2005-06, Austrade w ill seek to enhance this commitment by focusing on the long-term sustainability of exporters while maximising export and international business outcomes arising from free trade agreements and trade policy; supporting exporters to target new and key export markets such as India and China; and driving export development and export success in key industries.

EX P O R T M A R K E T D E V E L O P M E N T G R A N T S CH EM E

The Export Market Developments Grants (EMDG) scheme is the Australian Government's principal financial assistance program for aspiring and current exporters. The scheme encourages Australian SMEs to enter into and develop sustainable export markets by reimbursing up to 50 per cent of expenses incurred on eligible export promotion activities, less the first $15 000.

8 Australian Trade Commission Annual Report 2004-05

C A M E L M A N , ALL THE W A Y F R O M

THE O U T B A C K T O S O U T H A F R IC A

A remote cattle property 100 kilometres from the nearest town might not appear the ideal place to run an export business— but Jayne Maes is a businesswoman with a thirst for a challenge.

Apart from managing the homestead of the one-million-acre property in the Pilbara region in Western Australia, Ms Maes sews a range of adults' and children's oilskin clothing.

Ί usually sew until about 2am or 3am every day', she said. The successful clothing company, Camelman

Products, started three years ago but while the domestic market was good, it was not big enough to meet the growth envisaged by Ms Maes.

She therefore met with a TradeStart representative from the Carnarvon office.

'They said there was interest in oilskin products at an agricultural show in South Africa and could I go', she said. Ί sewed around the clock for three weeks to have enough coats to take to South Africa.'

Ms Maes is now working on establishing a small factory in her nearest town, Newman, and expanding her line to include camel-leather clothes. 'You just have to go

for it— the assistance is there for you', she said.

The Camelman kids range

K A N G A R O O CREEK G A N G

Kosta Mijatovic and his business partner Tom Kieckhefer are the joint owners of Perth-based Kangaroo Creek Gang Pty Ltd. They are hoping a move into the Polish

market w ill open the television doorway for their animated cartoon series to other European countries.

In 1998 they bought the intellectual property rights to the series and teamed up with Southern Star Entertainment Ltd

to revamp the characters and produce the episodes screened on Australia's Nine Network. However, the partners faced challenges in getting the animation aired

in other countries.

As part of Austrade's New Exporter Development Program (NEDP), Kangaroo Creek Gang Pty Ltd was given free advice and information on exporting and securing

assistance in Poland.

Following a meeting with Austrade's Business Development Managers in Warsaw, the partners were advised to approach a dubbing house rather than television stations, which are often overwhelmed by the volume of offers they receive.

The strategy proved successful for Kangaroo Creek Gang Pty Ltd. Nine months after the initial talks, the pair has secured their first broadcasting contract with Polish television.

Export success in Poland for Perth-based company Kangaroo Creek Gang

Part One: Our programs Australian Trade Commission Annual Report 2004-05 9

In Australia, two Austrade groups focus on working with clients: the Exporter Development Division and the Client Services Division. Offshore Austrade has four regions. This section provides highlights from our global network.

EXPORTER D E V E L O P M E N T D I V I S I O N

The Exporter Development Division focuses on proactively sourcing new clients through marketing activities and working closely with allies. The division comprises five state managers, three global industry teams, the Business Generation Unit (including Response Centre, Visits and Events), the Exporter Initiatives Unit, Market Development Specialists, Operational Promotions and Corporate Partnerships unit.

The specific areas of focus for the division are:

► specific industry engagement through global industry teams

► working with key allies on joint projects and events

► promotions to targeted groups of potential clients

► niche opportunity matching, linked directly to specific market development specialists

► profiling and running the Export Awards

► managing Austrade's network of events and visits

► frontline management of all phone and email inquiries.

During the 2004-05 financial year, the Exporter Development Division managed approximately 250 seminars with 12 176 attendees; 9321 web inquiries; 27 529 calls to Austrade's 13 28 78 phone number, and involved

2445 new exporters in visit programs with Austrade staff and overseas customers.

Exporter Development Senior Managers' Team meeting, May 2005

D l R O B I N S O N

Exporter Development Director

Before joining Austrade Di held the positions of Chief Executive Officer with University Co-operative Bookshop Ltd and Managing Director for the Australia - New Zealand operations of the Institute for International

Research (HR). Di is a past President of the Australia-lndonesia Business Council,

NSW Branch.

10 Australian Trade Commission Annual Report 2004-05

H I G H L I G H T S F R O M THE EXPORTER

D E V E L O P M E N T D I V I S I O N

F R O M C O N T A C T S

T O C O N T R A C T S

The Exporter Development Division coordinated a national Women in Export seminar series held in Adelaide, Brisbane, Canberra, Hobart, Melbourne, Perth and Sydney, between 27 April and 5 May 2005. Each Women in Export seminar

consisted of two case studies from local businesswomen who had succeeded in exporting, and presentations from two Senior Trade Commissioners (STCs), followed by a

question and answer session and individual consultations.

Left to right: Kylie Hargreaves (STC, Los Angeles), Alison Naylor (Regional Export Adviser, Perth), Ranjil Singh (Marketing Manager, New Projects), lenny Mathews (State Manager, Western Australia) and Di Robinson (Exporter Development Director)

Austrade, supported by Australian Exhibition Services and the Franchise Council of Australia, coordinated an international buyer program around the Sydney Franchise Expo at Darling Harbour. The cornerstone of the initiative, held from

14 to 1 7 April, was an Austrade-hosted international business lounge on the mezzanine level above the main expo. Australian franchisers could actively pursue international opportunities by showcasing their systems to over 50 prospective buyers from

a range of markets including China, Hong Kong, Indonesia, Malaysia, Singapore and Thailand.

In 2004-05, the Exporter Development Division introduced a new way to present opportunities and services to potential exporters, through the Going Places seminar series. These seminars featured Austrade regional market specialists, presenting opportunities in their markets through an open panel session. Overall, 10 Going Places seminars were held, with the Exporter Development Division's marketing reaching

more than 76 000 businesses.

MyExportCoach is an Internet portal for export information.

It was designed by Austrade for ICT companies and incorporates links to various export resources relevant to the ICT industry. MyExportCoach includes 12 online

modules that answer relevant questions and receives an

average of 1 5 registrations per week.

A guide to successful exporting for the Australian professional services sector

With the global market for services becoming the fastest growing sector of world trade, Austrade's Services Export team in Sydney launched its professional

services campaign to help more Australian service providers tap into expanding export opportunities. To set Australian service providers on the right track to export

success, Austrade developed a guide especially for them. Called From Contacts to Contracts, it includes information, tips and techniques on ways to export services.

Over 62 000 professional service providers received communication materials from Austrade encouraging them to telephone or go online to fill out its professional services

questionnaire. Over 2200 firms responded, the majority of whom had not previously worked with Austrade. According to Lloyd Downey, Global Team Leader, Service

Exports, 'the answers businesses provide in the questionnaire will assist Austrade's efforts to tailor its services to the types of professional service companies that are most interested in partnering with Austrade'.

From Contacts to Contracts

Stiitil JA gu lck* to ; A u s tra lia n j >uccc*3stTd e x p o rtin g fo r Ih e iro fe s s io n a i se rvice s s e c to r Contacts to Contracts brochure: a guide to successful exporting for the Australian professional services sector

Part One: Our highlights Australian Trade Commission Annual Report 2004-05 11

C L IE N T SERVICES D I V I S I O N

The Client Services Division works with new and established exporters to prepare them for exporting and works closely with Austrade's overseas network to assist clients achieve export success. The division has four teams:

► The Local Export Adviser Network works with new exporters who need intensive coaching.

► The TradeStart Partnerships Unit coordinates the TradeStart Program and TradeStart ally network of 50 offices located around Australia.

► The Client Advisory Services team works primarily with established exporters who require assistance to expand their current export markets or enter new markets.

► The Client Service initiatives team focuses on improving Austrade's service offering, client service standards and programs including the New Exporter Development Program.

Pat Evans (Austrade) and Her Royal Highness Crown Princess Victoria of Sweden at the 'Swedish Style' export seminar

PAT E V A N S

Client Services Director

P&t has responsibility for designing and implementing programs that prepare Australian businesses as sustainable new exporters or

that assist existing exporters. Prior to joining Austrade, Pat held senior executive positions in the educational publishing sector, most recently as Managing Director of Pearson

Education Australia.

12 Australian Trade Commission Annual Report 2004-05

H I G H L I G H T S F R O M THE

CLIENT SERVICES D I V I S I O N

Austrade and TradeStart Export Advisers located around Australia provided advice and assistance to more than 9500 new and established exporters in 2004-05.

O f these clients, 3260 were on the New Exporter Development Program.

New client relationship and management processes were introduced for Austrade and TradeStart export advisers working with new exporters. The new processes, which are designed to assist staff manage their client loads and achieve better outcomes for their clients, were introduced

in November 2004.

The Client Services Division worked with Austrade's overseas regions to support and host more than 60 buyer visits to Australia across a range of industries, including baby products, cosmetics, pharmaceuticals, timber, plant

nursery products, wine, gourmet food, e-government services and thoroughbred dogs. Meetings were organised for relevant clients to showcase their products to these international buyers.

'Swedish Style' export seminars were held for the fashion, design and homewares industries in March 2005. In

addition to Austrade's industry and market specialists, other speakers included representatives from a major Swedish department store, the Swedish Import Council and an Austrade client who achieved significant success in

Scandinavian markets. Seminars were held in Melbourne and Sydney, the latter attended by HRH Crown Princess Victoria of Sweden, the official Patron of Swedish Style in

Australia 2005.

The Western Australian Local Export Adviser Network,

together with Austrade offices in Kuala Lumpur and Singapore, organised an Indulgence Exhibition in

Malaysia and Singapore in April and May 2005.

The exhibition showcased premium wines, gourmet foods, arts and tourism products from Western Australia to customers looking for high-quality luxury items. Forty-one clients participated in the exhibition and

1 5 export sale contracts were signed at the event or in the days immediately following. Additional export

contracts are being negotiated.

S P O T L I G H T O N THE

A U S T R A L I A N F A S H I O N

I N D U S T R Y

Austrade has supported the Mercedes Australian Fashion Week since its inception. In 2005, the 10th anniversary of the event, Austrade was more involved than ever.

Export Advisers in the Client Advisory Services team, together with 14 of Austrade's offshore offices, organised for 55 international buyers to attend

Mercedes Australian Fashion Week in May 2005.

Austrade secured the participation of Stephanie Solomon, fashion director of New York's Bioomingdale's department store, and Polly Noel-Storr from London's Selfridges department store. The presence of these two major fashion buyers was an outstanding opportunity for Australian

fashion designers to make a greater international impact. Key fashion buyers from Flong Kong, Jakarta, Milan, Oslo, Seoul, Shanghai, Singapore, Stockholm, Taipei, Tokyo and Toronto were also

represented at the event.

The international buyers are now developing deals with many of the designers, including with julianne, an Austrade client on the New Export

Development Program. The Julianne collection was showcased in the New Generation group at the Mercedes Australian Fashion Week.

Left to right: Robert Sutton (Austrade), Stephanie Solomon (Fashion Director, Bioomingdale's New York), Rodney Gilchrist (Austrade) and Julianne Merriman (Austrade)

Part One: Our highlights Australian Trade Commission Annual Report 2004-05 13

AM ER IC AS

7 7 9 staff in the region assisted 687 clients to achieve export success to the value o f $1.822 billion.

Rio de Janeiro

Paulo

Post □ Sub-post ▼ Outpost V Trade consultant

In 2004-05 a key focus for Austrade in the United States has been capturing opportunities arising from the Australia-United States Free Trade Agreement (AUSFTA) which came into effect on 1 January 2005.

This has been supported by the Australian Government's commitment to appoint 30 new export advisers (23 in the United States and seven in Australia) as well as a program of sub-regional industry strategies which account for the diverse business environments across the region. Sub-regional teams have been established for the following sectors:

► Canada— food, wine, consumer goods and services

► United States— food, wine, technology, services, industrial/automotive, agriculture and government procurement

► Latin America— mining, agriculture, food, beverages and education

Other key sectors in Canada and the United States include arts and craft, biotechnology, creative industries, defence, film, wine technology, infrastructure, interior products and World Bank and United Nations projects. The extended focus in Latin America includes animal genetics, education services and tourism.

I A N W I N G

Regional Director

Americas

Ian was appointed to the Americas Regional Director position after several management positions with Austrade, including in Russia, Japan, the United States and the Middle East. Before this, Ian worked in international banking and agricultural economics. Ian speaks French, Russian, and Japanese and is studying Spanish.

14 Australian Trade Commission Annual Report 2004-05

H I G H L I G H T S F R O M THE A M E R IC A S

Australian animal genetics exports to Latin America

grew rapidly in 2004-05 as a result of Austrade's targeted exploration and promotional activities in this niche export market. Seventeen new Australian genetic companies recorded export success in the past year. In Mexico, where Austrade assisted 25 Australian breeders at the World Brahman

Congress in November 2004, three of the companies made their first-ever export sale within two months of attending the Congress. As a result of Austrade's efforts, 30 000 Australian

calves have been born in Latin America.

Santiago Rubio (right), Post Manager, Austrade Buenos Aires, talking with a Queensland Brahman breeder

In April 2004, Austrade in Washington DC was engaged to research the US aviation market by Airservices Australia.

The research identified an opportunity which contributed to Airservices Australia winning a $20 million contract to manage air traffic control towers under the US Federal Contract Tower (FCT) program.

Austrade's US team assisted Australian companies to identify and develop commercial outcomes in the US Government procurement market. For example, following a recently signed agreement, Aerosonde, an unmanned aerial vehicle developer,

is now working in close partnership with Lockheed Martin, the United States' largest defence contractor, a partnership forecast to deliver multimillion dollar sales as the two companies jointly bid on US Government contracts. Aerosonde, which benefited from government procurement provisions under the AUSFTA, was supported by Austrade and the Defence Materiel Organisation in presenting its Mk 4.1 fleet to US buyers at a function at the Australian Embassy in Washington DC.

Throughout 2004-05 Canadians were able to Discover Australia with nine targeted trade promotional events held under one consistent brand, from Vancouver to Toronto and on to Montreal. The promotion focused on encouraging distributors to look beyond Australia's crocodile and sporting

image to its diverse business offerings.

D E A N & D E L U C A

Buyers for Dean & Deluca, one of the premier retailers of gourmet and specialty foods in New York and Washington DC, travel the globe to source the finest

quality goods available. Following an Austrade-supported buyer visit to Australia in September 2004, Dean & Deluca has expanded its range of unique Australian food products.

With annual sales estimated to be in excess of US$100 million, Dean & Deluca was an obvious choice for New York-based Beth Goslin, Austrade's Business Development Manager for food, to approach. Her aim was to encourage Dean & Deluca to offer more Australian products in their stores, corporate gift catalogue and on their e-commerce site.

In the short term Austrade's relationship with Dean & Deluca has already proven positive with Australian food products being carried by the store, and an

Australian food promotion. In the longer

term, having Dean & Deluca as a supporter of Australian products is invaluable to producers in terms of positive positioning in the global marketplace. You can now

walk into a Dean & Deluca store and find Australian olive oil, honey, wine, cheese, olives, sauces and, of course, Vegemite.

Maggie Beer Fruit Pastes on display at the Dean & Deluca deli in SoHo, New York City

Part One: Our highlights Australian Trade Commission Annual Report 2004-05 15

EUROPE, M I D D L E EAST A N D AFRICA

Madrid I

□ Stockholm

Manchester □ Copenhagen ^

D iib iin T ■ Ψ Amsterdam ■ Warsaw

London ■ ▼ Rotterdam ■ Π Prague

Frankfurt π □ Budapest

Milan ■ Zagreb ■ Bucharest

C1 . _ V Sofia

SkopjeV ^Istanbul

Athens□

Paris 1

v Valletta £firut

Tel Aviv □

C a ir o ·

Moscow

I Tehran

□ Amman I Baghdad

Riyadh I

Jeddah T

Dubai

V Muscat

Vladivostok □

164 staff in the region assisted 1203 clients to achieve export success to the value o f $5.673 billion.

Johannesburg ■

□ Port Louis

■ Post □ Sub-post ▼ Outpost V Trade consultant

The five Europe, Middle East and Africa (EMEA) sub-regions are:

► Central and South Eastern Europe (CSEE)

► Western Europe, Scandinavia and Mediterranean (WESM)

► United Kingdom, Ireland, Israel and Sub-Saharan Africa (UKIISSA)

► Commonwealth of Independent States (CIS)

► Middle East (ME)

The main industry sectors providing opportunities for Australian companies across the region include agribusiness, wine, automotive, ICT/e-government, sport, services, biotechnology, building and construction, defence, marine, oil and gas, art, consumer items for retail outlets and fashion and infrastructure,

J O H N F I N N I N

Regional Director

Europe, M iddle East and Africa

John joined Austrade from The Fosters Group, where he managed the country's largest hotel company. Before this John worked in various Chief Executive and General Manager roles for companies including Australian National and Daikyo. John has spent many years working in the Middle East, Africa and South East Asia.

16 Australian Trade Commission Annual Report 2004-05

H I G H L I G H T S F R O M EUROPE,

M I D D L E EAST A N D A F R IC A

Austrade in the Commonwealth of Independent States (CIS) hosted Australia Week, the largest Australian trade event in Russia. The event attracted over thirty Australian exporters, including BHP Billiton, Mincom and the Firepower Group.

It was opened by His Excellency Major General Michael Jeffery AC CVO MC, Governor-General of the Commonwealth of Australia. The event spanned a broad cross-section of industries and also included an extensive cultural program.

Descendance, one o f Australia's leading Aboriginal dance groups, performed during Australia Week in Moscow

MIDEM is the largest international trade fair for recorded media

and is held annually in Cannes, France. Austrade Paris has participated in the event for the past three years, in partnership with AIR, the Australian Association of Independent Record labels. In 2005 AIR had 24 exhibitors and 74 Australian

companies participating at MIDEM. An additional 104 Australian individuals also visited and used the Austrade stand. The trade fair resulted in five new Australian exporters and five existing Australian exporters closing deals.

With the support of Austrade, Tourism Australia, Business ACT and Tourism Western Australia, Robert Maklowicz, Poland's prominent television chef, travelled to Australia to film the latest in his Culinary Journey series. Austrade's Central and South East Europe (CSEE) sub-region anticipates receiving substantial inquiries from importers and distributors in Poland once the Australian episodes are aired in late 2005.

In 2004-05 Austrade's UK and Irish operation was increased to better capture the growth in the trade relationship with Australia. A new presence was established in Manchester with a Trade Commissioner, and in Dublin with a Trade Consultant. Austrade's London office also increased from 10 to 15 staff to service a significant and sustained increase in doing business

with Australia in the region.

R E B U I L D I R A Q

Organised by the American Chamber of Commerce in Jordan, Austrade, for the first time, attended the Rebuild Iraq 2005 exhibition. It is the second such

promotion aimed at the reconstruction of Iraq. The team works under the guidance of Senior Trade Commissioner Greg Hull and includes Aows Dargazali,

who is based in Amman, Jordan. The team has introduced 11 new Australian exporters and a further 26 established

exporters to the Iraqi market.

Against a backdrop of increased uncertainty surrounding Iraq's elections, and with the support of Austrade teams in Australia, Jordan, and the Middle East, Austrade Baghdad was able to develop a comprehensive

program for Australian exporters.

The highlight of the year was Austrade's participation in the Rebuild Iraq event.

Due to the uncertain security

environment and limited transport options, Austrade obtained ministerial approval to utilise an RAAF C130 aircraft to transport an invited group

of 63 prominent Iraqi business and government procurement officials to the event.

His Excellency Mr John Tilemann, Ambassador to Iordan (far left), and Greg Hull, Austrade Senior Trade Commissioner, Baghdad (far right),

with RAAF crew, en route to the Rebuild Iraq conference

Part One: Our highlights Australian Trade Commission Annual Report 2004-05 17

N O R T H EAST ASIA

Harbin

Beijing ■

Changsha Qingdao

Tianjin @

Pusan

Nanjingr-η Hefei W uxr Hangzhoi

Shanghai

iNingbo Chengdu □ Chongqing Wuhan

□ Kunming Xiamen

Guangzhou ■

Macau

Ha ikon

Da Nang

to Chi Minh City

189 staff in the region assisted 1780 clients to achieve export success to the value o f $7,587 billion.

■ Post □ Sub-post ▼ Outpost V Trade consultant

NEA region's focus export sectors in 2004-05 included food and beverages, education, building and construction, automotive, agribusiness, ICT and biotechnology and consumer products and services. Affluent markets like Japan, Korea, Taiwan and Hong Kong also offer opportunities in emerging and niche sectors including arts and entertainment, design, fashion, leisure, sports and organic foods.

LA UR IE S M I T H

Regional Director

North East Asia

Laurie has over 20 years Asia experience including long-term assignments in Guangzhou, Beijing, Shanghai and Taipei. He has worked in a wide range of corporate, advisory and government roles including stints at the former

Department of Trade, the Department of Foreign Affairs and Trade, as a consultant to a wide range of Australian companies, large and small, and as Chief Representative in China for News Corporation and its operating subsidiary, STAR Γ

18 Australian Trade Commission Annual Report 2004-05

H I G H L I G H T S F R O M

N O R T H EAST ASIA

Austrade posts in the region, in conjunction with DFAT and Invest Australia, have been actively involved in the business missions for Expo 2005 in Aichi, Japan. During each of the six months of the Expo, the Australia Pavilion focused on a particular industry theme including agribusiness; food and wine; ICT; natural resources and energy; biotechnology; automotive; and environmental technology. Austrade organised three business missions between April and June 2005 with three additional missions planned for July

to September 2005.

Japan has been Australia's largest export market since 1 969. It continues to offer Australian exporters from a broad spectrum of industries an abundance of opportunities. In recognition of the important role of Japanese customers, Austrade posts

in Japan have initiated the Australian Importer Awards.

The Australian Importer Awards were given to five or six Australian companies in each region of Japan that have made a significant contribution to the development of imports from Australia by introducing new and innovative products and services to the Japanese market.

Austrade, in cooperation with Australian Education International (AEI) and International Development Program

(IDP), coordinated a major education exhibition in China.

The China International Education Exhibition Tour attracted

over 60 of Australia's finest universities, colleges, secondary schools and vocational education colleges. The tour travelled to Beijing, Guangzhou, Hangzhou, Shanghai, Shenzhen and Qingdao. The coordinated effort between Austrade, AEI and

IDP was welcomed by exhibitors and resulted in smoother logistics and marketing coordination. It also increased the

impact of the Australian presence, demonstrating to the Chinese Government the long-term commitment to the market of Australian education service providers. Australia

continues to be a priority destination for Chinese students with approximately 50 000 Chinese students undertaking

study in Australia during 2004-05.

More than 90 Australian exporters, including 40 new exporters, participated in the Sense of Australia event in Seoul, Republic of Korea. The event was held on 26 January 2005, Australia Day. Taking advantage of the 'wellbeing' boom, over 1200 attendees toured through themed areas representing Australia's diverse range of environment and

lifestyle. 'Lifestyle icons' included beaches, golf courses, spas, aquariums and wine cellars, and there was also an art gallery and barbeque restaurant. Fifteen companies, including four

new exporters, achieved sales within two weeks of the event.

A U S T R A L I A N JARRAH

A D D S TE XT U RE T O

K O R E A N ART SCENE

Austrade Seoul worked closely with Gunns WA, the largest supplier of jarrah timber in Australia, to develop the jarrah market in the Republic of Korea. Under a retainer

agreement signed in 2004, Austrade assisted with all aspects of business in Korea. Austrade researched and identified a Korean distributor and worked closely with the

distributor to convince the subcontractor to use jarrah for the external areas of the Leeum Samsung Museum of Art.

The Leeum complex is a unique arts area built by Samsung to house a comprehensive collection of traditional and modern Korean and international art. It is recognised as one of the most important cultural art complexes in Seoul.

jarrah is a premium timber being used in the top-end niche market in Korea.

It has been used at the Leeum complex for decking, wall panelling and flooring.

It is a long-lasting timber and matching the timber with the architecture of the complex has created a widely recognised example of the uniqueness and flexibility

of Australian building materials

Fourteen containers of jarrah, valued at $400 000, were supplied to the Leeum Museum. The museum itself opened in early 2005. Interest generated from the Leeum work led to another T2 containers of jarrah, valued at $300 000, being used for the lisan Cultural centre, which w ill be completed in 2006.

LeeumSAMSUNG MUSEUM OF ART Cunns jarrah as featured in the external areas of the Leeum Samsung Museum o f Art in Seoul

Part One: Our highlights Australian Trade Commission Annual Report 2004-05 19

S O U T H EAST ASIA, S O U T H ASIA A N D PACIFIC

□ Islamabad Lahore □

N ew D elhi

K ara chiO

M u m b a i· P une V

K olkataV

▼ Hyderabad

Bangalore □ □ C h e n n a i

Colom bo ϋ

M anila

Kuala Lu

V Guam

153 staff in the region assisted 1232 clients to achieve export success to the value o f $3.206 billion.

^ S

I Port Moresby

Samoa V

□ Noum ea

V T o n

■ Suva

■ Auckland

■ Post □ Sub-post ▼ Outpost V Trade consultant

In 2004-05 key regional priority sectors included agribusiness, food, automotive, ICT, infrastructure (engineering, environment, building, roads, ports, airports, railways, energy) and services (education, health, tourism).

D A V I D T W I N E

Regional Director

South East Asia, South Asia and Pacific

David joined Austrade in 2003 as Regional Director for South East Asia, South Asia and Pacific. Before joining Austrade David was Country President (India) for BMP Billiton and Vice President for BMP Billiton Petroleum for India, Sri Lanka and Bangladesh.

20 Australian Trade Commission Annual Report 2004-05

H I G H L I G H T S F R O M S O U T H EAST

ASIA, S O U T H ASIA A N D PACIFIC

In 2004-05 a key priority for the region was to promote opportunities arising from the Thailand-Australia Free Trade Agreement, which came into effect on 1 January 2005.

The majority of opportunities have been identified in the agriculture, food and automotive sectors. Although the Singapore-Australia FTA came into effect on 28 July 2003, the region continued to identify opportunities, many of which are in the services sector.

Tsunami reconstruction workshops were held around Australia in April 2005 to brief the business community on how to access information and bid on development projects in the reconstruction phase of this natural disaster. Austrade

regional representatives joined with AusAlD and DFAT to provide a whole-of-government briefing on Australia's humanitarian, diplomatic and commercial response to over 600 attendees.

The region trialled and implemented a methodology for customer relationship management to extend Austrade's customer reach across the region. This led to a significant increase in the total number of buyers that Austrade is working with and enhanced relationships, which are translating into increased export outcomes for the Australian client base.

The South Asia Post network organised a seminar series entitled Export to India— Riding the Elephant. The seminars took place across 12 Australian cities, between 20 September and 14 October 2004. They were aimed at providing insights about the potential of the Indian market and targeted an audience of mainly new Australian exporters in industry

sectors such as processed food and wine, information technology, financial services, education and training services, retail, fast-moving consumer products and lifestyle

goods. The seminars attracted some 650 attendees.

During the year the number of inbound buyers visits to Australia increased, as did product promotions in-market and videoconferencing, where appropriate. This was to maintain export momentum while minimising travel by Australians to

parts of the region, given the travel advisories and security

concerns in some markets.

AUSSIE C O M P A N Y

FIRST EVER T O SUPPLY

N A V I G A T I O N A I D S T O

P A K IS T A N I A I R P O R T S

InterScan Navigation Systems Pty Ltd (INS) has defied the multinational giants to become the first-ever Australian company to win a contract to supply a Pakistani airport with navigational aids. INS, an innovative small business

located in Rydalmere, Sydney, has won a contract worth about $3 million to supply the Sialkot International Airport in Pakistan with its equipment.

Exports account for 99 per cent of INS business. Their navigation aids are used in more than 1000 sites around the world. This year alone the company has sold 26 navigation systems to the Sialkot

International Airport project, its largest sale of the financial year. Austrade has been assisting the company to open doors internationally for many years.

INS CEO Ron Cosbee with a Doppler VOR beacon manufactured by his company that aids aircraft navigation

Part One: Our highlights Australian Trade Commission Annua! Report 2004-05 21

AT TR A D E P R O M O T I O N O R G A N I S A T I O N A W A R D S

Austrade was recognised as the 'Best Trade Promotion Organisation (TPO) from a Developed Country' at the inaugural World TPO Awards held in Malta in October 2004.

The award was announced during the 5th World Conference ofTPOs, and was accepted on behalf of Austrade by John Finnin, Regional Director Europe, Middle East and Africa.

The competition attracted applications globally from 32 TPOs that were reviewed by an adjudicating panel of eight international TPO practitioners.

Austrade's application focused on the organisation's overall operations, with a specific focus on the New Exporter Development Program and assistance given to established exporters.

'Amongst other criteria, the panel sought to identify TPOs which over the last two calendar years had developed innovative, results-oriented, client-centred solutions to the delivery of trade support services and whose efforts had led to good, quantifiable results', explained International Trade Centre Senior Adviser Philip Williams.

John Finnin was Austrade's official representative at the conference, at which 143 participants from 69 countries met under the umbrella theme 'The future ofTPOs— innovation for competitive advantage'.

The World TPO Awards will now be a biennial event, with the next one taking place at the 6th World Conference ofTPOs in Dubai in November 2006. .

lohn Finnin accepting the award for the 'Best Trade Promotion Organisation from a Developed Country'at the inaugural World TPO Awards in Malta

22 Australian Trade Commission Annual Report 2004-05

Part

Outcomes and outputs— our achievements

Outcomes and outputs 24

Output 1.1 — Awareness raising 26

Output 1.2— Government advice and coordination 28

Output 1.3— Services and opportunities 30

Output 1.4— Austrade administered grants and loans 35

Output 2.1 — Consular, passport and immigration services 40

The outcomes and outputs framework for budgeting and reporting was introduced by the Australian Government for all its departments and agencies in 1999-2000. The outcomes and outputs framework

shifts the focus from inputs to results.

Within this framework the Australian Government has set two outcomes for Austrade, which are primarily directed to the economic wellbeing of the Australian community and job creation.

Outcome 7— Australians succeeding in international business with widespread community support

Outcome 2 — Australians informed about and provided access to consular, passport and immigration services in specific locations overseas

Austrade's operations and activities that are directed towards these two outcomes are categorised into various output groups.

The link between Austrade's outcomes and outputs is shown in Figure 1 0.

EFFECTIVENESS MEASURES

The key effectiveness measures for Outcome 1 are:

► the total number of Australian exporters (estimate for 2004-05 is 39 000)

► the proportion of Australians who believe exports make a major contribution to the economy (target for 2004-05 is 80 per cent).

W hile Austrade contributes to these external measures, they are primarily driven by the efforts of Australian business. The measures also reflect the collective efforts of federal, state and territory governments and industry associations towards their achievement.

The Australian Bureau of Statistics (ABS) estimates the total number of exporters in the Australian business community and reports this figure in December for the previous financial year.

The latest estimate of the total number of Australian

exporters is 30 788 for 2003-04, This figure is derived from Australian Customs Service records and the ABS listings of businesses. The next survey results are expected to be available in December 2005.

The proportion of Australians who believe exports make a major contribution to the economy remains unchanged at 82 per cent according to the results

of the 2005 survey on community attitudes to trade, conducted by Newspoll on behalf of Austrade and DFAT.

24 Australian Trade Commission Annual Report 2004-05

Figure 10: Linking Austrade's outcomes and outputs to internal key performance indicators

O UTCOM E 1

Australians succeeding in international business with widespread community support

▲

PERFORMANCE FRAMEWORK

OUTCOME 2

Australians informed about and provided access to consular, passport and immigration services in specific locations overseas

A

PERFORMANCE FRAMEWORK

Effectiveness measures

► Proportion of Austral ians who believe exports make a major contribution to the economy

► Number of Australian exporters

Key performance measures

► Community awareness of the importance of the Government's trade and international business facilitation activities through Austrade

► Client satisfaction with Austrade's services and New Exporter Development Program (NEDP)

► Number of clients (total, new/NEDP and existing export clients) who achieve export success with Austrade's assistance

► Value of export success with Austrade's assistance

► Number of clients who achieve outward investment success with Austrade's assistance

► Value of outward investment success with Austrade's assistance

► Number of clients in biotechnology, ICT and services sectors who achieve success with Austrade's assistance

► Number of EMDG recipients

► Number of clients achieving export success indirectly through Austrade

Effectiveness measures

► Comprehensive, responsive, high-quality consular and passport services in specific locations

Key performance measures

► Client satisfaction (DFAT and DIMIA)

► Number of travel documents issued

► Number of notarial acts

► Number of Australians assisted overseas

► Number of visa applications received

Output 1.4

Austrade

administered grants

Output 1.1

Awareness raising

Output 1.3

Services and opportunities

Output 1.2

Government

advice and coordination

Output.2.1

Consular, passport and immigration services

Part Two: Outcomes and outputs Australian Trade Commission Annual Report 2004-05 25

— AWARENESS R A IS IN G

Community commitment to trade and investment; understanding o f the Australian Government's export assistance program and a positive business image of Australia overseas

O U T P U T MEASURES

Table 1: Measures and results for Output 1.1

Measure Target Result

Quality ► Client satisfaction — Minister's office Satisfactory

Quantity ► Proportion of Australians who believe exports make a contribution to the economy 80% 82%

► Community awareness of the importance of the Australian Government's trade and international business facilitation activities through Austrade 75% 6 6 %

► Number of positive net media mentions 2 500’ 3 913

Cost ($m) $22.4 $19.1

* Estimate

O U T P U T P E R F O R M A N C E

PROMOTING THE BENEFITS OF EXPORT THROUGH MEDIA AND MARKETING

In 2004-05 Austrade implemented media and marketing strategies to promote the benefit of exports to all Australians and to raise awareness in the business community of the Australian Government's export assistance programs delivered through Austrade.

Marketing communications campaigns helped raise business awareness, understanding and utilisation of Austrade's services for new and existing exporters. The campaigns also maximised attendance at seminars, events and trade missions, including the business missions to World Expo 2005 in Aichi, |apan, the tsunami reconstruction

workshops held around Australia, and the Australian Export Awards.

A major focus of media and marketing campaigns was raising business awareness of the opportunities arising from free trade agreements, particularly the Australia-United States Free Trade Agreement and theThailand-Australia Free Trade Agreement, which both came into effect on 1 January 2005.

A marketing campaign was also launched to maximise participation in Business Club Australia: Melbourne 2006, in the lead-up to the Commonwealth Games next year.

Austrade's awareness-raising activities generated 3913 positive media items in metropolitan, regional and specialty media across Australia. Media items in foreign press, newswire services and on Internet- based media sites contributed to a positive business

image of Australia.

Community awareness of the importance of the Australian Government's trade and international business facilitation activities through Austrade was consistent with last year's result, at 66 per cent, but below the target of 75 per cent. This measure is made up of an average of responses from questions posed on Austrade services in a survey conducted by Newspoll. Aided awareness of Austrade in general was 78 per cent in 2004-05, a significant

increase on last year's 69 per cent.

26 Australian Trade Commission Annual Report 2004-05

E X P O R T IN G FOR C R O C O D I L E CH ARLIE

THE FU TU R E A N D THE FTA

The Exporting for the Future (EFF) education program has now extended its reach to Australian

educators in primary, secondary and tertiary courses. Two new poster series with related resource books and the annual newspaper

supplement were released to guide primary and secondary students' study of globalisation issues and international business opportunities.

The online student centre resources were popular, and 1016 teachers participated in 47 'train-the-trainer' seminars in 2004-05.

The annual Export Plan Competition has an additional tertiary division for 2005. This focuses students' attention on local export potential through preparation of export plans for SMEs

that do not yet export.

Parliamentary Secretary Mr Bruce Billson MP launching the Tertiary Export Plan Competition at Monash University in March 2005

The global market for services is the fastest-growing sector of world trade. The national treatment provisions of the AUSFTA allow Australian businesses to compete in the US market on equal terms with US competitors in most service sectors. This has resulted in enormous opportunities for the Australian professional services sector to be very competitive in the global marketplace.

John Kolm, Australian author, motivational speaker and Managing Director of Team Results, says his business has benefited from the AUSFTA and Austrade's new focus on professional service companies. With the assistance of Austrade's Washington-based Business Development Manager

Debra Alley, his book Crocodile Charlie and the Holy Grail (published by Penguin in 2004) has been picked up by every major book chain in the United States, including Barnes & Noble, Books-A-Million,

Wal-Mart, Waldenbooks and Amazon.

'The AUSFTA couldn't have come at a better time for my company. The book, workshops and the spin-off from its success have been phenomenal.

It appears that since the AUSFTA took effect on 1 January 2005 American companies have a great deal of freedom to engage Australian service providers and I have experienced little or no resistance from them', said Mr Kolm. 'The

international prominence we've achieved with Austrade's help has made a big difference to our existing success.'

lohn Kolm launching C ro c o d ile C h a rlie a nd th e H o ly G ra il in the United States

Part Two: Output 1.1 — Awareness raising Australian Trade Commission Annual Report 2004-05 27

— G O V E R N M E N T A D V IC E A N D C O O R D I N A T I O N

Advice to the Australian Government and coordination of Australia's export activities

O U T P U T MEASURES

Table 2: Measures and results for Output 1.2

Measure Target Result

Quality ► Client satisfaction — Minister's office Satisfactory

Quantity ► Number of briefs (including submissions and ministerials) provided to ministers, Parliament, public sector agencies 575* 506

► Percentage of material prepared within agreed timeframes 1 0 0 % 82%

Cost ($m) $12.2 $8.4

* Estimate

PARLIAMENTARY INQUIRIES AND BRIEFINGS

Austrade made a number of submissions and

responses to, and appearances before, various parliamentary committees, including:

► the Joint Standing Committee on Foreign Affairs, Defence and Trade into trade and investment relations with the Gulf States

► briefings for the Trade Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade on Australia's trade and commercial relations with Europe, North Africa, the Middle East, North East Asia and the United States

► the Senate Foreign Affairs, Defence and Trade Legislation Committee's consideration of 2004-05 additional estimates and 2005-06 budget estimates

► the Senate Foreign Affairs, Defence and Trade References Committee inquiry on relations with China

► the Joint Standing Committee on Foreign Affairs, Defence and Trade Foreign Affairs Sub-Committee Inquiry into Australia's Relations with the Republic of Korea; and Developments on the Korean Peninsula

► the House of Representatives Standing Committee on Science and Innovation Inquiry into Pathways to Technical Innovation

► the Joint Standing Committee on Foreign Affairs, Defence and Trade Inquiry into Trade and Investment Relations with North Africa.

CO N TR IB U TIO N TO TRADE POLICY

Austrade worked closely on trade policy issues with the Department of Foreign Affairs and Trade and through its membership in the Trade Policy Advisory Council.

Austrade contributed to the publication Trade 2005, which is the Minister for Trade's annual statement. Austrade provided material on the availability and effectiveness of the Government's assistance for Australian exporters and the translation of trade policy into trade outcomes.

Austrade and the Department of Foreign Affairs and Trade took a lead role in the development of a whole-of-government FTA website. The website is a one-stop online resource designed to help

Australian businesses to make the most of Australia's FTAs with New Zealand, Singapore, Thailand and the United States.

28 Australian Trade Commission Annual Report 2004-05

The FTA website offers a useful platform to promote the wide range of services and initiatives provided by Australian Government agencies, including those offered by Austrade, that assist Australian companies to maximise the benefits of the enhanced business environments in FTA markets.

For more information visit www.fta.gov.au.

Austrade established the FTA Export Advisory Panel, an election commitment, to provide a forum for ongoing consultation between business and the Australian Government on the nation's current free trade agreements.

16 giKle fa AitwrMa's w Siwra As*!*w*xsnfs

The FTA Export Advisory Panel includes senior representatives from a range of industry groups and is chaired by Austrade's Chairman Mr Ross Adler AO. There w ill also be opportunities for the

Export Advisory Panel to include input from a broad cross-section of specialists, business organisations

and community groups, as required.

C O M M O N W E A L T H EX PO RT P R O G R A M S

As the lead agency for export facilitation, Austrade coordinated a whole-of-government and industry approach to help businesses take advantage of global opportunities.

During the year Austrade engaged with a wide range of government and industry stakeholders to promote the Australian Government's export agenda and identify new export market opportunities for industry. Following are a number of key examples:

► Austrade convened meetings for various key industry sectors, including the automotive and ICT sectors, under the auspices of the Export Advisory Panel, an Austrade-industry consultative body.

► Austrade made a presentation to the Prime Minister's Science, Engineering and Innovation

Council (PMSEIC), which focuses on growing technology-based SMEs in Australia.

The presentation focused on Austrade's assistance to technology-based business. Austrade

also provided a submission to PMSEIC's final report.

► Austrade presented case studies of successful Australian innovative businesses to the Inquiry into Pathways to Technological Innovation being conducted by the House of Representatives

Standing Committee on Science and Innovation.

► Austrade worked closely with other government agencies to ensure that export market development was given a priority in the development of industry Action Agendas. Working with

the Department of Industry, Tourism and Resources, Austrade provided input to the electronic, medical devices, marine and advanced manufacturing industry Action Agendas. Austrade also worked with the Department of Agriculture, Fisheries and Forestry to address

export market opportunities in the food industry.

► Austrade commenced development of a memorandum of understanding with Auslndustry to ensure closer collaboration and seamless referral of clients between the two agencies.

► Austrade worked in consultation with the Department of Communications, Information Technology and the Arts to develop and deliver a roadshow of FTA-related presentations tailored for the ICT sector.

Part Two: Output 1.2 — Government advice and coordination Australian Trade Commission Annua! Report 2004-05 29

— SERVICES A N D O P P O R T U N I T I E S

Export and outward investment services and opportunities for Australians through a national and global network

Measures for Output 1.3 show the performance of Austrade in delivering services and opportunities and helping Australian businesses to achieve export sales.

O U T P U T MEASURES

Table 3: Measures and results for Output 1.3

Measure Target Result

Quality ► Client satisfaction with Austrade's services 85% 89%

Quantity ► Number of clients who achieve export success with Austrade's assistance (total export impact clients) 3 750 4 358

► Number of new 1 and irregular exporters who achieve export success with Austrade assistance (New/NEDP export impact clients) 1 420 1 717

► Number of established exporters who achieve export success with Austrade's assistance (established export impact clients) 2 330 2 641

► Number of clients in biotechnology, ICT and services (BIS) sectors who achieve success2 with Austrade's assistance (BIS clients) 1 350 1 723

► Value of export success with Austrade's assistance (total export impact dollars) $8 billion $18.4 billion

► Number of clients who achieve outward investment success with Austrade's assistance (outward investment impact clients) 80· 161

► Value of outward investment success with Austrade's assistance (total outward investment impact dollars) $1.12 billion* $1.61 billion

► Number of clients who achieve export success indirectly through Austrade 500· 263

► Number of clients receiving initial information and advice and/or detailed services from Austrade 13 000’ 16 865

Cost ($m) $139.4 $155.1

1 F irst e x p o r t s a le o f $ 5 0 0 0 o r m o re in th e la s t th re e y e a rs.

2 S uccess is d e fin e d in te rm s o f e x p o rt, in v e s tm e n t a n d n o n -m o n e ta ry m e a su re s su ch as s tra te g ic a llia n c e s a n d jo in t v e n tu re s .

* E s tim a te

30 Australian Trade Commission Annual Report 2004-05

O U T P U T P E R F O R M A N C E COR PO R A TE PARTNERSHIPS

Austrade provides client's with a range of services from assistance to first-time exporters, through to supporting well-established exporters to expand their business in existing or new export markets.

In 2004-05 Austrade provided services to more than 1 6 800 Australian businesses.

Austrade assisted 4358 Australian businesses to achieve export success worth $18.4 billion in 2004-05. These figures represent a 31 per cent increase in the number of companies assisted

and a 36 per cent increase in the value of export success achieved with Austrade's assistance over the previous financial year.

Clients provided written confirmation of Austrade's assistance for export transactions.

Client confirmations are validated by a year-end verification process.

EXPORT IMPACT

O f the 4358 companies that Austrade assisted to achieve export success in 2004-05, 1 717 were new or irregular exporters and 2641 were established

exporters. This represents a 44 per cent increase for new and irregular exporters and 24 per cent increase for established exporters, compared to the previous financial year.

New and irregular exporters accounted for an increasing proportion of the $18.4 billion in total export value assisted by Austrade, rising from 3 per cent last year to 12 per cent this year. This is consistent with the increasing number of new or irregular exporters achieving export success.

INDIRECT EXPORT ASSISTANCE

In 2004-05, Austrade commenced the development

and delivery of a formal corporate partnerships program that involved working with service providers such as accountants, lawyers and financiers.

By sharing Austrade's export training tools and experience with the service providers Austrade has supported corporate partners to assist more Australian companies succeed in international business.

In 2004-05, Austrade's Corporate Partnership program partnered with 20 organisations. In total, 263 clients achieved export success indirectly

through Austrade in 2004-05.

Part Two: Output 1.3— Services and opportunities

Corporate partnerships continues to pioneer the extended delivery model, consolidating alliances in the private sector, extending the export footprint, and contributing to international business successes for Australian companies.

Austrade works with private sector service delivery partners on promoting internationalisation to their client base through

jointly delivered cooperative marketing initiatives and by engaging partner networks globally to enhance the effectiveness of Austrade's activities. Seventy-eight initiatives have been conducted this year, ranging from articles in partner publications and

national press, to Austrade presentations at partner client seminars. In total, 243 private sector advisers commenced the professional development program in 2004-05, including completion of over 700 online learning

modules on the benefits of internationalisation and tradecraft skills.

Through these relationships Austrade is able to broaden and deepen its reach into a diverse range of industries and companies within the business community. Relationships

include companies and institutes representing the accounting, consulting, legal, banking, insurance and logistics sectors.

Austrade and Australia Post have joined forces under the 'Stamped for Export' banner to hold a series of workshops around Australia to raise awareness about export and encourage Australian businesses to internationalise.

One of Austrade's new exporter clients, The Recovery Company, shared its export journey at the inaugural 'Stamped for Export' seminar in Melbourne, saying that the key to export success is in securing distribution: 'Austrade's extensive knowledge and contacts are essential and Australia Post products w ill help you get your product to market.'

Australian Trade Commission Annual Report 2004-05 31

C A N A D I A N I N T E R N A T I O N A L

FARM E Q U I P M E N T S H O W

(CIFES) T O R O N T O

Austrade North America in partnership with TradeStart staff Brett Henderson (Bendigo), Craig Urand (Mildura) and Laki Kondylas (Upper Spencer Gulf) promoted Australian agricultural equipment companies at the Canadian International Farm Equipment Show

held in Toronto in February 2004.

The Canadian farm equipment show attracted almost 39 000 visitors who were able to explore over 600 agricultural exhibits, presenting the products and services of thousands of companies, spread over 470 000 square feet

of exhibition space.

The Austrade stand provided an opportunity for Australian companies to exhibit their products or to have Austrade and TradeStart officers represent their products at the show. Australian agricultural equipment on display varied from broad acre farming machinery to

the good old Aussie swag.

Left to right: Lindsay Jensen, CEO o f Fjord Manufacturing, and his son Scott, Zeph Phillips (Austrade), Janna Pomozova (Austrade) and John Wilkinson o f Wilkinson Engineering on their stand at the Canadian International Farm Equipment Show

OUTW ARD INVESTMENT IMPACT

Austrade provides advice and in-market support services to Australian businesses seeking to establish an overseas presence as part of their international growth strategy.

In 2004-05, Austrade assisted 161 Australian businesses to achieve $1.61 billion in outward investment success. When compared with 2003-04, the number of clients assisted grew by 22 per cent and the value of outward investment

success increased by 47 percent.

CLIENT SATISFACTION

Austrade's annual Client Service Improvement Study (CSIS) was conducted by Wallis Consulting in May and June 2005. A total of 2550 companies were interviewed, 933 of which had received services as part of the New Exporter Development Program.

O f the 1617 established exporters and companies not on the NEDP, 89 per cent rated Austrade overall as good, very good or extremely good. This result confirms that clients continue to rate Austrade's services highly, as this outcome is consistent with the rating of the previous two years of 88 per cent.

The satisfaction result for NEDP clients was consistent with that of non-NEDP clients; 89 per cent of surveyed clients rated Austrade overall as good, very good or extremely good. This represents an increase from the 2003-04 rating for which 83 per cent of clients rated Austrade as good or higher.

CONNECTING W ITH EXPORTERS ONLINE

The Austrade website www.austrade.gov.au continued to be a key access point to the organisation for exporters and potential exporters.

In 2004-05 it received 1.75 million visits with more than 15 0 0 0 users per month using the site on a repeat basis to obtain information, register for events and access Austrade services.

The website serves as a key information and marketing channel for Austrade and for exporters, providing details of Austrade services and programs, as well as supporting Australian companies in their

initial research on exporting, selection of appropriate markets, consideration of an export strategy and overseas promotion. Online access and business

processes have become increasingly important in many areas of Austrade's operation, with a number of business activities now managed in part through

32 Australian Trade Commission Annual Report 2004-05

the website. In 2004-05 the responsiveness of the website was particularly important, for example, in enabling a quick response to business inquiries following the Asian tsunami and delivering subsequent information and events.

Austrade's Internet presence continued to expand, with specific websites developed to target specific audiences and to support achievement of business outcomes. Sites were developed to support implementation of the Australian Government's free trade agreements fta.gov.au, the Business

Club Australia: Melbourne 2006 www.businessclubaustralia. com.au initiative and a number of major trade events such as BI02005 www.austrade.gov.au/bio2005. In addition, many posts are operating websites to promote Australian companies and capability in their local markets and to support local buyer relationships.

In 2004-05, the website's Australian Suppliers Database attracted 1147 new registrations (378 were new clients to Austrade), with the overall number of Australian exporting companies listed on the database increasing to 9606. This database is an important resource for overseas buyers searching for Australian products and services. The website also sourced

another 321 clients via Export Chat and website contact forms.

An extensive program of workshops has also been conducted to help exporting companies make the best use of their

own websites in their exporting activities. These workshops are very practical and interactive, and include sessions covering business planning and strategy, marketing online to attract traffic to websites, online payment issues, domain

names, security, search engine optimisation and electronic marketplaces. Thirty-four of these workshops have been held across Australia, with 594 companies attending and providing positive feedback.

R U G G L E K I D S O N L I N E

RuggleKids, an online catalogue of Australian baby and children's

products, was launched in February 2005 to help offshore Austrade offices showcase Australian products to potential buyers, importers and

distributors around the world.

RuggleKids was developed by Austrade's Local Export Adviser Network, Corporate Communications and the e-commerce team. The word

puggle refers to a baby echidna or platypus, both Australian native animals. The catalogue currently highlights 72 new exporters, and can be viewed on Austrade's website or at www.pugglekids.com.

The catalogue is being used in Hong Kong, Japan, New Zealand and the United Kingdom, and in several other markets that actively promote the baby product sector. Most of the featured companies sell through specialty retail and/or department stores in Australia, and Austrade is assisting these companies attract

mid- to high-end specialty retail opportunities overseas.

Part Two: Output 1.3 — Services and opportunities Australian Trade Commission Annual Report 2004-05 33

EXTREME SPORT A U S TR A D E LEAGUES A H E A D

EXPORTS T O OSAKA IN T H O R O U G H B R E D SALES

In late 2003 Austrade Osaka responded to a market inquiry from Sportstage, a new exporter keen to test overseas interest in an Australian-style extreme sport motorcycle stunt show.

Austrade pitched the proposal to the sporting events producer at Osaka's Kansai Telecasting Corporation. Kansai TV loved the concept and immediately visited Australia for detailed discussions with Sportstage executives. Kansai TV contracted Sportstage to co-produce the Air-X spectacular in front of a live audience at the famous Osaka Dome. Several Australian companies achieved their first ever export success in conjunction with Air-X.

Over 10 000 spectators attended the motorcycle stunt show and plans are underway to repeat the event in both Osaka and Tokyo, in 2006.

In June 2005 Austrade staff from Asia, Pacific and Middle East posts accompanied up to 100 buyers for the annual Magic Millions Sale on Queensland's Gold Coast. Nearly $6 million in export sales of thoroughbred yearling, weanling and brood mare horses were achieved with Austrade's assistance.

Geraldine Doumany, Export Adviser in Brisbane, with the assistance of the Queensland Government, organised a major equine tradeshow at the Magic Millions. This involved 20 companies, including many from the NEDP, who showcased their range of

innovative equine products and services to the large gathering of domestic and international buyers.

'W hile Australia is recognised as a source of quality breeding stock, the feedback from many overseas buyers at Magic Millions was that there is a growing demand for ancillary products and services needed to support the thoroughbred racing industries, especially in Asia and the Middle East', said

Doumany. 'Some exhibitors have already achieved

sales with others receiving many positive leads which are currently being followed up.'

Winners o f the Free Style and Big Air competitions at the Air-X Spectacular, Osaka Dome

At an Austrade reception held for overseas buyers, Gerry Harvey, leading Australian retailer and horse industry identity, applauded Austrade's involvement in promoting the Australian equine sector to the

world. Trevor de Carteret, Austrade's Network Manager in Queensland, said it was a great example of Austrade coordination and cooperation with allies and with the equine industry to help foster this expanding export sector.

Cerry Harvey (right) looks at the latest equine products on offer

34 Australian Trade Commission Annual Report 2004-05

— A U STR A D E A D M I N I S T E R E D G R A N T S A N D LOANS

Administering Export Market Development Grants for SMEs, and managing the closure of the loans program under the International Trade Enhancement Scheme (ITES)

Note: Grant payments are generally made the year after expenditure was incurred, therefore references to 2004-05 EMDG in this report relate to expenditure incurred in the 2003-04 grant year, unless otherwise specified.

Table 4: Measures and results for Output 1.4

Measure Estimate Result

Quantity ► Number of EMDG applicants 3 760 3 588

► Number of EMDG recipients 3 440 3 277a

► Number of new EMDG applicants 1 360 1 236

► Number of new EMDG recipients 1 100 1 054J

► Number and dollar amount of facilities under management 6 and $2.1 m 4 and $1.6m

Cost ($m) $134 $131.3

a In c lu d e s 2 0 0 3 - 0 4 g ra n t y e a r r e c ip ie n ts a n d s o m e r e c ip ie n ts f r o m p r e v io u s g ra n t ye a rs.

KEY D E V E L O P M E N T S 2 0 0 4 - 0 5

In 2004-05, a key task for Austrade was to implement changes to the Export Market Development Grants (EMDG) scheme legislated by the Australian Fbrliament in June 2003. This was the first year of these changes which were intended by the Australian

Government to refocus the scheme more closely on smaller and less experienced exporters. Changes included reducing the annual income lim it to $30 million, limiting the number of grants a recipient

could receive from eight to seven, removing the $25 million annual export earnings ceiling, reducing the maximum grant amount from $ 2 0 0 0 0 0 to $150 0 0 0 and removing the new markets provision.

The full EMDG appropriation was not drawn down in 2004-05 and all 2003-04 grant year recipients received their full grant entitlement.

The 75 per cent of EMDG recipients entitled to a grant of $50 000 or less received their full grant entitlement in a single payment. The remaining 25 per cent, who had provisional grant entitlements

above $50 000, received $50 000 on assessment and the full balance of their provisional second tranche payment by 30 June 2005. In June 2005, the Minister for Trade set the initial payment ceiling

amount for the 2004-05 grant year at $70 000.

In the 2005-06 federal budget, the Australian Government carried forward $10 million of EMDG funding from 2004-05 to the next financial year, and allocated a further $10 million to 2005-06,

resulting in total additional funding for the EMDG scheme of $20 million in 2005-06.

In accordance with Section 106A of the EMDG Act, Austrade conducted a review of the scheme in 2004-05 for the purpose of making

recommendations about the scheme's continuation. In carrying out the review, Austrade collected public submissions, commissioned independent research, drew on its own operational experience as the scheme administrator and appointed a review facilitator to consult with the export community.

Part Two: Output 1.4— Austrade administered grants and loans Australian Trade Commission Annual Report 2004-05 35

Table 5: Export Market Development Grants 2004-05

For 2004-05:

Total grant recipients

Total value

3 2771 1

$123.9m h

For the 2003-04 grant year:

Grant applicants 3 588

New grant applicants 1 236

Grant recipients 3 205

Value of grants $119.0m

Average grant $37145

Median grant $22 643

Businesses assisted (including joint ventures) 3 305

Recipients from rural and regional areas 749

Value of exports generated $3 032.3m

Employees of recipients 71 849

a In c lu d e s r e c ip ie n ts fo r th e 2 0 0 3 - 0 4 g ra n t y e a r (3 2 0 5 ) a n d 72 re c ip ie n ts fr o m p re v io u s ye a rs.

b In c lu d e s v a lu e o f 2 0 0 3 - 0 4 g ra n ts ($ Ί 1 9 .0 m illio n ) p lu s v a lu e o f th e 72 g ra n ts fr o m p re v io u s y e a rs a n d s u p p le m e n ta ry

p a y m e n ts to g ra n t r e c ip ie n ts fr o m p re v io u s ye a rs.

O V E R V I E W O F E X P O R T

G R A N T S I N 2 0 0 4 - 0 5

A total of $123.9 million and 3277 grants were paid in 2004-05. Of these, 3153 relate to marketing expenditure by individual businesses in the 2003-04 grant year; 72 relate to applicants from previous grant years; and 52 relate to marketing expenditure made by businesses under the Special Approvals category.

The Special Approvals category enables other types of businesses, including industry associations, trading houses and firms cooperating in joint venture-style marketing arrangements to access the scheme. In the 2003-04 grant year $2.7 million in grants was paid to organisations under this category.

This included 34 grants paid to Approved Bodies (export-focused peak industry associations undertaking generic export promotion on behalf

of their industry); 17 grants paid to Approved Joint Venture applicants (groups of Australian SMEs cooperating in a joint venture-style marketing arrangement to pursue specific export activities); and one grant paid to Approved Trading Houses (large organisations with extensive overseas experience that represent the interests of Australian

SMEs internationally).

A breakdown of EMDG recipients by state and territory is shown in Table 6 .

IMPACT OF THE 2003 SCHEME CHANGES

Following the scheme changes legislated in 2003, there was a decrease in the aggregate number of applications received and grants paid in 2004-05. The number of recipients for the 2003-04 grant year, compared with the previous grant year, fell from 3643 to 3205. However, after allowing for the 2003 scheme changes, there was an underlying

increase in recipients of almost 2 per cent.

The profile of EMDG scheme applications in 2004-05 showed a shift towards smaller businesses and newer exporters consistent with the intention

of the 2003 scheme changes. There was a higher proportion of small businesses with annual incomes of less than $5 million, and of businesses with export earnings of $1 million or less, 14 per cent

of which had not yet generated export earnings. Thirty-one per cent of 2004-05 recipients were first-time grant recipients.

Grants paid were smaller, on average, during 2004-05 reflecting the lower promotional spending of smaller/emerging exporters. The average grant paid was $37 145, down from $38 591 for the 2002-03 grant year and the median grant paid was $22 643, down from $26 272 for the 2002-03 grant year.

36 Australian Trade Commission Annual Report 2004-05

REVIEW OF THE EMDG SCHEME

In 2004-05 Austrade conducted a review of the EMDG scheme, in accordance with the terms of reference that were provided by the Minister for Trade. In carrying out this review, Austrade undertook a wide consultative process to analyse the many diverse experiences and opinions that were put forward about the future direction of the scheme.

This process involved the collection of 394 public submissions, 70 consultation meetings conducted throughout Australia by the EMDG review facilitator and the commissioning of independent

research. The research included a survey of recent grant recipients, designed to gather their views and experiences about export marketing issues. Austrade drew on the findings of these public submissions, external research and consultations, as well as the operational experience of Austrade staff in administering and delivering the scheme, to prepare the review report for the Minister.

The report was submitted to the Minister for Trade on 30 June 2005.

REACHING MORE POTENTIAL EXPORTERS

In 2004-05 more businesses were made aware of the benefits of export and the EMDG scheme through a range of client service and communications initiatives. These initiatives were aimed at promoting EMDG assistance in

light of the additional funding committed to the scheme and as an incentive for Australian SMEs to

pursue opportunities arising from recent free trade agreements. New initiatives included targeted direct mail and email campaigns to industry associations and government allies, distribution of a quarterly

EMDG client newsletter and targeted national advertising campaigns in newspapers and business

and accounting journals.

In addition, Austrade continued to implement initiatives to increase awareness and improve access to the scheme for the ethnic, rural and regional business communities. Specifically, Austrade undertook increased advertising in the

rural and regional press and produced an EMDG brochure in Mandarin.

LOANS

In 2004-05, recoveries of $691 783 were made under the International Trade Enhancement Scheme (ITES), with facilities under management at 30 June 2005 reduced to four. Formal repayment arrangements are in place with two of the remaining participants, while the other two remain in

liquidation with final outcomes not yet determined.

ADMINISTRATIVE PERFORMANCE

An analysis of the administrative performance of the EMDG scheme shows:

► 98.3 per cent of 2003-04 grant year applications were processed within the year

► 81.8 per cent of applications lodged before November 2004 were determined within eight weeks, and 92.2 per cent lodged in November 2004 were completed within seven weeks of the start of assessment

► 46.8 per cent of applications were determined without the need for an on-site audit

► 4.4 per cent of applications processed resulted in a request for an Austrade review of the initial grant assessment.

Further details on EMDG recipients are at Appendix H.

Part Two: Output 1.4— Austrade administered grants and loans Australian Trade Commission Annual Report 2004-05 37

Table 6: EMDG recipients by state and territory, 2003-04 grant year

STATE Number of recipients Total grant payments Total assessed exports

NSW 1 083 $44.0m $946.1 m

Vic 830 $31.1 m $810.4m

Qld 554 $1 6.9m $5 54.9 m

SA 323 $1 2 .7m $289.7m

WA 310 $11.5m $354.9m

Tas 38 $0 .8 m $31.5 m

NT 29 $0.7m $18.4m

ACT 38 $1,3m $26.4m

National 3 205 $119.0m $3 032.3m

S o u rc e : E M D G d a ta b a s e , June 2 0 0 5

RISK MANAGEMENT AND FRAUD CONTROL FOR THE EMDG SCHEME

In 2004-05 there was an increased emphasis on the assessment of applications that included overseas representation and marketing consultants

expenditure. In addition, Austrade focused on encouraging the lodgment of accurate applications and preventing incorrect grant payments. A number of initiatives were adopted which have been successful in detecting incidents of over claiming and preventing fraud. These initiatives included

revised procedures for validation of application

expenses, increased in-country interviews of the representatives, an increase in assessments by visits to the applicant's premises and a 1800 tree-call Fraud Hotline and email system.

At 30 June 2005 there was one case of alleged fraud against the EMDG scheme before the courts and one case with the Commonwealth Director of Public Prosecutions for consideration as to whether

to commence prosecution.

Under an agreement between the Australian Federal Police and Austrade, one federal agent continued a secondment with Austrade to provide advice and assistance in the prevention, detection and investigation of fraud involving the EMDG scheme.

38 Australian Trade Commission Annual Report 2004-05

GREAT BIG EVENTS K I C K I N G

EXPORT G OA LS

First-time EMDG recipient, Great Big Events, is a Sydney-based company that has earned a global reputation as a specialist in sport presentation.

Great Big Events has been responsible for developing and delivering some of the most spectacular sporting events in recent times, including the Sydney and Athens Olympic Games, the Manchester Commonwealth Games and the

Rugby World Cup.

The company weaves together creative, technical and musical elements to greatly enhance sporting events, transforming them into theatrical events for audiences.

W hile the majority of export income is currently derived from the United Kingdom, Great Big Events is tendering for diverse projects throughout the world.

'The EMDG scheme and Austrade have assisted our company greatly over the last 12 months.

The range of assistance received includes such varied activities as translation assistance in Paris, networking opportunities and invitations in Athens to official functions and marketing support financially by way of EMDG', said Greg Bowman, Managing Director of Great Big Events. 'W ithout this grant, our small-sized company would not be able to sustain the initial export marketing activities and financial outlay that are required to stamp our existence in overseas markets.'

Great Big Events covering the Men's 100m final in the control room at the Athens Olympics

T U R B O S M A R T — O N T H E

E X P O R T FAST T R A C K

W I T H E M D G

Turbosmart, a world leader in the market of turbo accessories, is racing ahead of its competition in export sales. Founded in 1996 with a two- product line-up, the company today distributes

more than 80 products to over 50 countries.

Sydney-based Turbosmart's four EMDG grants have assisted in increasing the company's profile by partially reimbursing costs incurred on activities such as participating

in global industry trade shows, including the Performance Racing Industry (PRI) Annual Trade Show and the Specialty Equipment Market Association (SEMA) event, which attracted 1 2 0 0 0 0 professionals from over 100 countries.

Greg Lysien, Marketing Promotions Manager, says: 'The grant has given us the previously unattainable opportunity to advertise and promote our product in the overseas media — mainly US. This provided a good starting point for our products' introduction

into a very competitive market.'

'W ith Austrade's assistance we were able to get our products into the US market and successfully compete with many established

brands. Today, close to 50 per cent of our total sales are being exported overseas!'

Turbosmart Blow-Off valves with their trademark blue caps are instantly recognised within the local and international performance industry alike

Part Two: Output 1.4— Austrade administered grants and loans Australian Trade Commission Annual Report 2004-05 39

— C O N S U L A R , PASSPORT A N D I M M I G R A T I O N SERVICES

O U T P U T MEASURES

Table 7: Measures and results for Output 2.1

Measure Estimate Result

Quality ► Client satisfaction (DFAT and DIMIA) Satisfactory

Quantity ► Number of travel documents issued 8 0 0 0 1 048

► Number of notarial acts 5 000 4 545

► Number of Australians assisted overseas (not receiving travel documents or notarial acts) 45 000 44 355a

► Number of visa applications received 76 400 67 898

Cost ($m) $11.7 $10.7

a T h is fig u r e in c lu d e s 1 0 4 6 c o n s u la r ca se s a n d 4 3 3 0 9 c o n s u la r in q u ir ie s .

O U T P U T P E R F O R M A N C E

Austrade operates 1 7 consulates and five honorary

consulates on behalf of the Australian Government

(see Table 8 ).

Austrade-managed consulates provide a range of

consular assistance including passport services,

notarial acts, medical evacuations, prison visits

and general advice and assistance to Australians

overseas. Austrade staff in these posts work closely

with embassies and high commissions in their

region and the Department of Foreign Affairs

and Trade consular operations unit in Canberra,

particularly when dealing with sensitive and

complex cases.

In 2004-05, the number of passports issued was

1048 which was significantly lower than previous

years largely due to the introduction in December

2003 of centralised passport production from centres located in London, Washington and Canberra.

The number of notarial acts performed was

4545 which is lower than in the previous year.

In contrast, the number of Australians assisted

overseas increased significantly to 44 355 compared to 20 714 in 2003-04.

In addition to managing a consular role, the

Austrade posts in Auckland and Dubai and the honorary consulate in Vladivostok managed the

delivery of immigration (visa) services on behalf of the Department of Immigration, Multicultural and

Indigenous Affairs (DIMIA). Austrade's Mumbai post also delivered immigration services up until

February 2005 when DIMIA moved into its own office accommodation. The total number of visa

T O M O K O U M E D A

Consular O fficer

Osaka

Tomoko is one of Austrade's unsung heroes.

As a consular officer in Osaka, Tomoko's reputation for quality client service has ensured that her role attracts far more attention than is usually the case. Such is her enthusiasm for helping others that Tomoko is widely regarded as delivering a standard of client service that is

the envy of her marketing colleagues throughoi the Japan network.

40 Australian Trade Commission Annual Report 2004-05

applications received at Austrade posts in 2004-05 was 67 898.

During the year, Austrade worked closely with representatives from the Department of Foreign Affairs and Trade and the Australian Electoral Commission to implement new arrangements to

improve the efficiency and effectiveness of overseas voting services for the 2004 federal election.

Voting services were provided at all Austrade consulates and the honorary consulate in Vancouver, with a total of 4292 pre-poll votes and 1163 postal votes issued in the lead up to and on polling day.

Table 8: Consulates and honorary consulates managed by Austrade

Consulates Honorary consulates

Atlanta Prague

Auckland Skopje

Bucharest Sofia

Dubai Vancouver

Frankfurt Vladivostok

Fukuoka

Istanbul

Lima

Milan

Mumbai

Nagoya

Osaka

San Francisco

Sao Paulo

Sapporo

Sendai

Toronto

A U S T R A D E STAFF

ASSIST I N T S U N A M I

DISASTER RESPONSE

Following the Asian tsunami on 26 December 2004, Austrade staff in Bangkok, Colombo, Jakarta and Kuala Lumpur, as well as staff in India, and Canberra, actively supported DFAT

colleagues in locating and assisting Australian citizens in affected areas.

The Austrade Bangkok team was commended for their extraordinary efforts in difficult circumstances. As soon as the extent of the devastation was known, the Austrade office

was shut down and staff redirected to the consular effort, working very long hours.

Ian Davey, Trade Commissioner in Bangkok, led a team that was instrumental in collecting data from Thai hospitals in affected areas, as well as in Bangkok, on the nationality and condition of foreign patients. Three Austrade staff also assisted at the temporary Australian consulates in Phuket and Krabi, where two were on holiday at the time of the tsunami.

Twenty Austrade staff from the Canberra office were seconded to join DFAT colleagues in the tsunami crisis centre in Canberra.

David Twine (second row, second on right), Regional Director SEASAP, visited the Bangkok office on 14 January 2005 and presented certificates of commendation to Bangkok staff in recognition o f their efforts following the tsunami disaster

Part Two: Output 2.1 — Consular, passport and immigration services Australian Trade Commission Annual Report 2004-05 41

EXPORT A W A R D S

There were a record number of entries for the 41 st annual Australian Export Awards. The awards, co-presented by Austrade and the Australian Chamber of Commerce and Industry, celebrate the outstanding achievements of Australian companies involved in international business.

The Australian Export Awards is one of the most important events on the Australian business calendar and plays a role in rewarding and encouraging excellence in overseas trade. Importantly, it also highlights the contribution made by exports to the Australian economy.

The Australian Export Awards is an example of the strong cooperation that exists between state and territory governments, the business community and the Australian Government to encourage the growth of Australian exports.

In 2004 a record number of 793 entrants from across Australia and covering a range of industry sectors competed for awards. The 73 finalists, comprising winners from state and territory export award programs, competed for 11 national award categories.

Trade Minister Mark Vaile announced the award winners at a gala dinner at the Gold Coast Convention and Exhibition Centre. Casella Wines was announced as DHL Australian Exporter of the Year. The company has now won an Australian Export Award on three occasions and joins just three other companies in the prestigious Exporters Hall of Fame. The other 2004 award winners were:

► IELTS Australia (Australian Capital Territory)— Education

► Australian Gold Reagents Pty Ltd (Western Australia)— Emerging exporter

► Redmap Networks Pty Ltd (Queensland)— ICT

► Australia Zoo (Queensland)— Tourism

► Ausenco Limited (Queensland)— Services

► Mayne Pharma Pty Ltd (Victoria)— Large advanced manufacturer

► Hammersley Iron Pty Ltd (Western Australia)— Minerals and energy

► Mt Romance Pty Ltd (Western Australia)— Regional exporter

► M uir Engineering Pty Ltd (Tasmania) — Small to medium manufacturer

► Imagination Entertainment (South Australia)— Arts and entertainment

► Casella Wines Pty Ltd (New South Wales)— Agribusiness

M r Vaile (back row, seventh from left), with the 2004 Export Award winners, Cold Coast, 2004 Mr Vaile and DHL's Cary Edstein present Casella Wines' lohn Sootier, CM Export Sales and Marketing (centre),

with the Australian Exporter of the Year award

42 Australian Trade Commission Annual Report 2004-05

Part H e»

Services, accountability and governance

Supporting our business

Accountability

Corporate governance

There are four groups that provide organisational support. They are:

► Analysis and Planning

► Human Resources

► Finance and Information

► Government and Corporate Services, including Government, Industry and Policy (see page 28); Export Finance Assistance Programs (see page 35); Corporate Marketing and Communications (see page 26);

and Business Effectiveness (see page 50).

A N A L YS IS A N D P L A N N I N G

The Analysis and Planning Unit supported the Board, Managing Director and executive team with high level research, information and analysis to ensure Austrade's policies and programs were aligned with government priorities and opportunities emerging from global economic trends and the Australian industry environment. Corporate, operational and divisional plans were developed through consultations with the executive team and KPIs were aligned with Austrade's strategic direction.

Analysis and Planning also managed various programs to enhance business processes and practices.

A Strategic Management Group consisting of 20 of Austrade's key leaders met in November 2004 to discuss how to enhance the organisation's business systems and client service offering. Analysis and Planning coordinated Austrade's contribution to the APEC initiative of 'buddying' with regional trade promotion

agencies. Visits and information exchanges were hosted on behalf of Austrade's partner organisation, the China Council for the Promotion of International Trade (CCPIT).

The Corporate Plan is a rolling, three-year document setting out Austrade's view of the operating

environment and the key strategies it w ill pursue over that period. In accordance with Section 67 of the Australian Trade Commission Act, the Corporate Plan for the years 2005-06 to 2007-08 was submitted to the Minister for Trade, and approved.

Austrade also prepares the Operational Plan, an annual document that outlines the inputs (resources) and outputs contributing to the achievement of the high-level outcomes set by the government under its outcome/output budget process.

Austrade continues to work on improving processes for business planning, budgeting and reporting to the Board.

Hazel is Austrade's Group Manager, Analysis and Planning. Hazel has over 20 years business experience, principally in the area of strategy ar operational performance improvement. Before joining Austrade, Hazel was a partner in Deioitt

Consulting where she worked with clients from variety of industries, most recently focusing on t government and communications sectors.

44 Australian Trade Commission Annual Report 2004-05

HUMAN RESOURCES EMPLOYEE NUMBERS

In 2004-05, Austrade reviewed and redesigned the human resources function to better meet the needs and business objectives of a dynamic and rapidly changing organisation. The revised structure reflects the commitment of the Human Resources (HR)

division to:

► enhance program management and the overall alignment of HR initiatives with the Austrade environment

► increase Austrade's ability to source, attract and develop talented people

► improve performance management processes and enhance linkages with learning and development

► improve the consistency and quality of HR service levels.

Drawing on input from senior Austrade executives, HR team members and employee climate survey results, HR developed a new structure which is built around the following work units:

► HR strategy and policy

► workforce and talent management

► capability development

► people services

► regional client services.

Managers of each unit together with their teams provide advice, support and solutions to the HR Director, Regional Directors and other clients on developing and implementing tailored HR strategies,

policies and programs. Their role also includes managing the delivery of high quality HR services.

As part of the restructure, the role of HR managers in the Austrade regions was reviewed and enhanced and the need for dedicated HR advisers for the Sydney and Canberra offices was identified.

Austrade's employment numbers increased from 1 008 in 2003-04 to 1058 in 2004-05. This increase in staffing numbers reflects recruitment to maximise the benefits arising from the implemented FTAs and focus in key markets such as China. Deployment for Australia and overseas included coordination of 2 2 overseas postings, implementation of structural

reviews, return to Australia placements and the commencement of second level succession plans. For more details about Austrade's employee

numbers see Appendix D.

CERTIFIED AGREEMENT

Austrade's Certified Agreement 2003-06 covering Austrade Performance Levels (APL) 1-5 continued to operate. The Agreement was made directly with staff under Section 1 70LK and is due to expire on 30 June 2006. Preliminary planning work has commenced for the next Agreement.

PERFORMANCE MANAGEMENT

To strengthen organisational performance and test major changes to Austrade's performance management arrangements, staff and managers in the Europe, Middle East and Africa region tested a new Partnering2Perform online performance

management system.Targeted at aligning behaviours to employee roles and 'job families', Partnering2Perform has, at its core, a sophisticated online appraisal system which both manager and employee are able to access, review and update at

quarterly intervals.

The system takes users through the four stages of the performance management cycle— self-assessment of capabilities, a development plan, a performance plan, and quarterly performance reviews.

M A R C I A K I M B A L L

Human Resources D irector

Marcia is Austrade's Human Resources Director. Before joining Austrade in June 2000, Marcia held senior corporate and human resources

management positions with Air Services Australia and the Civil Aviation Safety Authority (CASA). Before joining the public sector, Marcia worked in education reaching the level of Deputy Principal.

Part Three: Supporting our business Australian Trade Commission Annual Report 2004-05 45

Designed to speed up processes using a virtual environment, the system helps staff manage their careers better and understand their performance, by not only measuring what they achieve, but also

looking at how they achieve results. The online tool helps individuals and managers set clearly defined targets and performance expectations.

Following the successful pilot the Partnering2Perform system will be implemented

across the whole of Austrade for the 2005-06 performance management cycle.

PERFORMANCE BONUS PAYMENTS

New bonus arrangements were introduced during 2004-05 for the Senior Executive Group (APL 6- 8 ) to provide greater incentives for high-level

performance. Under individual bonus plans, Senior Executive Group members may receive a bonus of up to 2 0 per cent of their gross annual salary.

Staff in the APL 1-5 group, who achieve an 'exceptional' performance rating, are eligible to receive a bonus payment of up to 5 per cent of their gross annual salary. This is limited to 10 per cent of these employees.

Overseas engaged employees are eligible to receive a bonus payment ranging from 2 to 1 2 per cent of their gross annual salary, depending on performance outcomes.

Under all of these performance bonus arrangements a total of 494 employees received bonus payments.

TRAINING AND DEVELOPMENT — AUSTRADE INSTITUTE

The Austrade Institute continued to build on its success as a 'virtual' corporate university, offering hundreds of online and face-to-face education and

training courses to Austrade employees and Austrade allies. The number of enrolments in 2004-05 rose to 4000, compared to 2000 enrolments in 2003-04. Membership of the Austrade Institute's alumni which links former Austraders with the business community, academics and researchers, increased from 298 in 2003-04 to 330 in 2004-05.

In 2005 the Austrade Institute suite of export facilitation, interpersonal and business skills, and desktop online training was made available to employees of the Export Finance and Insurance

Corporation (EFIC) and Invest Australia's offshore staff.

OCCUPATIONAL HEALTH AND SAFETY

As a responsible employer, Austrade is committed to maintaining a healthy and safe work environment. In 2004-05 Austrade continued to focus on effective occupational health and safety (OH&S) practices to meet its obligations and ensure the welfare of its employees. Important elements of Austrade's approach

include a dedicated OH&S intranet site accessible to all managers, staff and contractors, and designated health and safety representatives throughout Austrade's overseas and Australian network.

2004-05 highlights include:

► supporting work groups for all employees, as part of a worldwide OH&S effort

► using SafetyMap, which is an approved audit tool, to conduct in-house OH&S inspections

► conducting office audits and workstation assessments across a variety of Austrade work environments

► working with Austrade's Business Effectiveness Unit to ensure office refurbishments comply with OH&S legislation

► introducing a whistleblower policy and maintaining existing first aid, anti-discrimination, harassment and bullying policies

► helping employees to achieve a sustainable work-life balance.

In 2004-05 no directions or notices were given to Austrade under sections 29, 45, 46 or 47 of the Occupational Health and Safety Act 1991. There were no Section 68 notices, which require reporting a death or serious injury.

Austrade continued its aim to reduce workplace injury numbers, most notably raising awareness via briefings at induction and pre-posting courses. Where injury or disease did occur, management

implemented a strategy to decrease time off work by intervening early with employee assistance and rehabilitation programs.

WORKPLACE DIVERSITY

Austrade encourages all employees to value diversity and to reach their full potential, and actively works to prevent any discrimination, consistent with the Workplace Relations Act 1996.

Under its Workplace Diversity Program, in 2004-05 the Employee Assistance Program— which provides a confidential and professional counselling

46 Australian Trade Commission Annual Report 2004-05

service— was extended to cover all Australia-based and overseas engaged employees.

As well, ongoing initiatives to support employees' diverse needs included:

► emergency child care and fam ily support services through the Family Care Link Program

► an assistance program for partners of Austrade employees overseas

► a support service for families relocating within Australia or returning to Australia from overseas

► recognition of cultural and religious events, enabling employees to balance their work, cultural and religious commitments.

Based on the success of previous intakes of Indigenous cadets, Austrade anticipates participating in the Indigenous Cadetship

Program in the coming year.

DISABILITY ACTION PLAN

In line with the requirements of the Disability Discrimination Act 1992, Austrade aims to give people with disabilities access to Austrade's facilities, programs and services.

Austrade's Client Service Charter also helps to ensure that the needs of people with disabilities are met, for example, by making public information about Austrade available in accessible formats and by providing a feedback mechanism through which people can raise concerns.

Austrade is committed to maintaining and improving an accessible and inclusive work environment that values employees with disabilities

and their contributions to the organisation.

In 2005-06, work w ill start on developing a strategy to upgrade the use of technology, to make Austrade even more accessible to people with disabilities, from both outside and within the organisation.

ETHICAL STANDARDS

Austrade has a Code of Ethical Business Conduct, which provides guidelines on ethical questions and

assessment of corporate integrity. The code covers diverse issues, including but not limited to, honesty, privacy, transparency and preservation of Austrade's assets. All issues outlined in the Code of Ethical

Business Conduct are linked to the Austrade Code of Conduct, which covers the behaviour

of all employees.

Part Three: Supporting our business

S H A R I N G EXPERTISE

T H R O U G H T H E A U S T R A D E

I N S T I T U T E

In 2004-05, Austrade facilitated an APEC- funded senior executive coaching project in partnership with trade promotion experts from Canada and japan. The project partners shared their knowledge and expertise to coach senior executives from APEC countries, including Chile, China, Mexico, Peru and the Philippines.

As an extension of the coaching project, an AusAID-funded Assisting Companies to Export (ACE) suite of online export training modules was also developed. The suite of 12 online modules is targeted at building the export facilitation skills

and capabilities of trade promotion organisations (TPOs) from APEC countries.

In the lead-up to the April 2005 meeting of the APEC Working Group on Trade Promotion — attended by Austrade as Australia's

representative— the ACE e-learning portal was showcased to 13 TPOs at an Export Facilitation Training Workshop in Pusan, Republic of Korea.

Delivered through the Austrade Institute's Learning Management System, the portal provides an overview of the fundamentals of export and introduces ways of assisting companies in their export journey. The portal is simple to use and gives TPO staff access to online training to build fundamental export facilitation skills.

A u s tra d e : O n -lin e e x p o rt fa c ilita tio n tra in in g workshop

Austrade's Kevin )ones and Sally Deane (first row, second and third from left) with participants at the APEC Export Facilitation Training Workshop in Pusan

Australian Trade Commission Annual Report 2004-05 47

S E R V IC IN G S O U T H E R N

S Y D N E Y EXPORTERS

John McCumstie is an export adviser servicing new exporters in the southern metropolitan region of Sydney. He has held numerous roles over his 31 year career with Austrade, including postings to Jakarta, Darwin, Sydney

and Townsville.

In 2004-05 John received the inaugural Client Services Division Austrade Values Award for his service to the export community, for maintaining strong internal and ally networks and for helping other Austraders to develop their full potential.

In 2004-05 he assisted 17 new exporters achieve their first export sale, 15 of which were on the New Exporter

Development Program. John has also been instrumental in organising and conducting workshops with ally organisations, aimed at preparing companies in southern Sydney to export.

John McCumstie holding his Client Services Division Austrade Values Award

C L I E N T SERVICES

The Client Service Initiatives unit is a small team focused on the continual improvement of Austrade's service offering, standards and programs.

CLIENT SERVICE CHARTER

Austrade's commitment to high quality and consistent service delivery is reflected in its Client Service Charter.

The charter sets out the service standards clients can expect from Austrade and outlines how to provide feedback. Austrade provides opportunities for clients to comment on their satisfaction with Austrade's services through the annual client satisfaction survey and other research.

Austrade's clients can provide feedback on service delivery via the telephone, post, email or website. This year 360 compliments and 139 complaints were received. For further details on how Austrade handles client feedback see Appendix B.

Austrade experienced an 83 per cent increase in the amount of compliments recorded over the reporting report and a 28 per cent increase in complaints. Austrade made a conscious and planned effort to increase the amount of feedback captured over the financial year and this, in part, explains the increase. Some temporary issues with the stability of the corporate website also contributed to the

increase in complaints.

Staff communications highlighted that all feedback should be seen as an opportunity for improvement and in the case of compliments the organisation was keen to celebrate positive feedback. Another factor contributing to the higher feedback numbers, was the overall increase in numbers of clients serviced by the organisation.

IMPROVING CLIENT SERVICES

In Austrade's ongoing efforts to improve client services research and analysis was conducted in several areas in 2004-05:

Export sustainability A project was initiated to identify what makes a sustainable exporter and how Austrade can help firms to reach export sustainability. External research conducted as part of the review confirmed that 80 per cent of surveyed companies that had achieved a New/NEDP export sale with Austrade's assistance had gone on to make further export sales. Analysis was also conducted on the different levels of

export commitment.

48 Australian Trade Commission Annual Report 2004-05

Delivery of export opportunities

Austrade reviewed the processes and mechanisms used to deliver export opportunities to clients and potential clients. As a result of the analysis it was agreed that Austrade would use the website as the main means of delivering export opportunities. The key benefit of using the website is that it ensures opportunity details are available to a wide spectrum of potential Australian suppliers.

Market selection advice Helping clients to select the right export market is a key service delivered by Austrade. In 2004-05 a revised market selection process pilot began. The process streamlined the delivery of market selection advice by utilising the services of online

information specialists in Australia and allowing staff located in the market to focus on in-market comment on prospects.

Table 9: Client feedback 2002-03 to 2004-05

2002-03 2003-04 2004-05

Compliments 267 197* 360

Complaints 101 109* 139

* T h e 2 0 0 3 - 0 4 fig u re s lis te d h e re d if f e r s lig h t ly f r o m th o s e h ig h lig h t e d in th e 2 0 0 3 - 0 4 a n n u a l r e p o r t as s o m e c o m p lim e n ts

a n d c o m p la in ts w e re e n te re d re tr o s p e c tiv e ly .

Table 10: Compliments and complaints received by service type, 2004-05

Service type Compliments (360) Complaints (139)

Preparing for export 15% 2 2 %

Market selection and making the right connections 2 1 % 2 0 %

Bringing new opportunities and markets to clients 40% 16%

Export Market Development Grants 23% 17%

Austrade website 1% 24%

Other 0 % 1%

Part Three: Supporting our business Australian Trade Commission Annual Report 2004-05 49

F IN A N C E A N D

I N F O R M A T I O N D I V I S I O N

The Finance and Information Division is headed by

the Chief Finance and Information Officer (CFIO).

In 2004-05 the division worked to consolidate the changes made in the preceding period, and undertook a major restructuring of its technology and information groups, to deliver further

efficiencies, service quality improvements and savings to the organisation.

In 2004-05 significant projects were undertaken to deliver better information to business managers

whilst providing greater control to the executive and Board of the financial resources of the organisation. Key financial information systems and processes were automated and rationalised to free up more resources to undertake direct service delivery activities. Specific achievements

include the implementation of a new expense- based travel system and the implementation of an automated foreign currency-based budgeting and forecasting tool. Both initiatives have contributed to

improvements in budget management and reduced

time in processes.

During the year the division applied advances in technology and the changing market for telecommunications bandwidth to benefit the organisation. These changes have allowed an increase in bandwidth capacity across the

international network to better support video conferencing and Austrade's mobile workforce. Video conferencing facilities have now been rolled out across all major centres in Australia and overseas.

The 2004-05 year also saw the successful deployment of a complete new computer operating

system with the rollout of Windows Server 2003 and Windows XP. This provides significantly greater

levels of security whilst enabling more mobile access to key business tools. Other initiatives have been launched which w ill further leverage this capability in future years.

In 2005-06, the Finance and Information Division w ill commence delivery of some key improvement programs that w ill have an ongoing benefit to the organisation. They include an integrated enterprise content management system to provide better access to information by Austrade staff and improve the tailored delivery of appropriate intellectual property to allies, clients and customers via the extranet, and improvements to the organisation's knowledge management framework.

BUSINESS EFFECTIVENESS

The Business Effectiveness unit within Austrade is responsible for the development and provision of policies, advice and support to Austrade business units in the areas of risk management, contract management, corporate governance, procurement, security, property and legal matters.

CONSULTANCY SERVICES

In 2004-05, Austrade entered into 1 81 agreements with consultants to the value of $4.21 million, not including variable and out-of-pocket expenses.

Austrade engages consultants where it lacks specialist expertise or where an independent perspective is appropriate. The selection and appointment of consultants is undertaken

in accordance with Austrade's procurement policy.

Additional information is available on the Austrade website.

GREG FIELD

Chief Finance and Information Officer

Greg is Austrade's Chief Finance and Information Officer. Before joining Austrade in July 2003, Grei was a partner in PricewaterhouseCoopers and IBN Consulting Services and worked with government

around the country and in the Asia-Pacific region financial management, performance measuremen information systems requirements and optimising the delivery of corporate services. He is Chartered

Accountant and CPA.

50 Australian Trade Commission Annual Report 2004-05

COMPETITIVE TENDERING AND CONTRACTING

From 1 January 2005 Austrade is subject to the Commonwealth Procurement Guidelines (CFG). Austrade has updated all procurement policy and guidance including automated tender templates to comply with all CPG requirements.

Value for money represents the core principle in Austrade's procurement policies, as well as the requirement that procurement is conducted in an efficient, effective and ethical manner. Austrade encourages competition through non-discri minatory competitive procurement processes.

Training in procurement and contracts management has been delivered to staff in all state offices. Seminars and workshops are regularly provided on Austrade's procurement framework.

Austrade is seeking to achieve organisational efficiencies and cost saving through a more strategic approach to organisational-wide procurement. In 2004-05 opportunities for such improvement have been identified from changes to international travel arrangements and through renegotiated telephony contracts. More areas w ill be explored in 2005-06.

Business opportunities and the Austrade Annual Procurement Plan (APP) are now advertised on AusTender www.tenders.gov.au in accordance with the CPG.

AUSTRADE SECURITY

In 2004-05 Austrade undertook protective security risk reviews of higher-risk sole posts, in addition to the ongoing schedule of reviews. Significant security upgrades were also completed at a number

of posts, including the relocation of one post as part of a comprehensive program to upgrade physical security across the organisation, in compliance with Australian Government guidelines.

W ith 125 points of presence overseas, the changing international security environment continues to pose challenges in the delivery of services to Australian exporters overseas. Although the Jakarta attack in September 2004 resulted in the temporary closure of the Austrade Jakarta office, the overall

impact of global security changes on Austrade operations has been limited. Austrade nonetheless attaches the highest priority to the security of the people who visit and work in overseas posts and continues to monitor the evolving international security environment closely.

Austrade received $8.4 million in security-related funding in 2004-05 out of a five-year package totalling $28.4 million. In the 2005-06 Budget the Australian Government also announced $32,9 million

over four years for further security upgrades including post relocations, perimeter security upgrades, emergency communications, enhanced security awareness training for staff and additional resources to manage the implementation of these measures.

Implementation of security upgrades will be ongoing in 2005-06. The additional funding allocated by the Australian Government will supplement existing activities and expenditure being incurred to strengthen security and enhance Austrade's efforts to ensure the safety of the people who work in and visit its posts overseas.

In 2004-05, the Australian National Audit Office (ANAO) completed a performance audit of DFAT and Austrade in relation to protecting Australian

missions and staff overseas. The report made a number of recommendations for enhancing Austrade's approach to security at its overseas posts. The recommendations are consistent with the

measures and activities implemented in 2004-05 and w ill inform ongoing activities to enhance security of Austrade posts and residences in the

context of the changing global security environment.

H A M I S H M c C O R M I C K

Executive Director

Government and Corporate Services

Hamish is Austrade's Executive Director, Government and Corporate Services. Before joining Austrade in June 2005, Hamish held the position of Head of the Asia Trade Task Force in the Department of Foreign

Affairs and Trade where he led the initial work for free trade agreements with ASEAN and Malaysia. Hamish has held other senior roles within the

department including an overseas appointment to Australia's Permanent Mission to the World Trade Organization, based in Geneva.

Part Three: Supporting our business Australian Trade Commission Annual Report 2004-05 51

SECURITY AWARENESS

Austrade continued to maintain close links with DFAT to ensure consistency between Austrade advice to Australian exporters and that given to the Australian public through travel advisories.

A review of in-house security instructions was completed in January 2005 as part of a broader review of the Austrade Security Risk Management Framework. Security reporting systems in particular were also upgraded while ongoing training for all

staff w ill be conducted in 2005-06 to ensure that standards are maintained and security instructions are promulgated effectively.

AUSTRADE PROPERTY PORTFOLIO

Collectively, Austrade maintains a property portfolio of 18 properties and manages leases on 197 properties overseas and within Australia. During the 2004-05 financial year Austrade completed 30 new leases, 2 0 renewals and relocation of three overseas posts.

The 2004-05 financial year saw the commencement of a five-year maintenance plan and budget for Austrade-owned properties which is expected to deliver significant savings while maintaining the capital value of the portfolio.

Austrade also conducted a review of property

portfolio management systems during 2004-05 and is well advanced on a five-year active portfolio property strategy and related management systems.

Other significant works commenced in 2004-05 and are due for completion in 2005-06. They include a review of policy and procedures; an enhanced property information management system; establishment of a global panel of property and security service providers; and 15 significant ongoing projects including relocations, refurbishments and establishment of new posts.

52 Australian Trade Commission Annual Report 2004-05

E N A B L IN G L E G IS L A T IO N AU S TR A D E 'S M IN IS T E R

Austrade operates as a statutory authority within the Foreign Affairs and Trade portfolio. The Minister for Trade has direct responsibility for Austrade.

The enabling legislation under which Austrade operated in 2004-05 includes:

► Australian Trade Commission Act 1985— this Act sets out the organisation's functions and powers as well as issues relating to administration, the Board and other matters

► Export Market Development Grants Act 1997 — the EMDG scheme is the most important export finance assistance program administered by Austrade

► EMDG Amendment Act 2004— this Act provides that a grant to which an applicant is otherwise entitled is not payable if, in accordance with ministerial guidelines, Austrade forms the opinion that the applicant or an associate of the applicant is 'not fit and proper' to receive a grant. This legislation applies to all EMDG applications lodged on or after 1 July 2004

► Commonwealth Authorities and Companies Act 1997— this Act establishes core financial, accountability and corporate governance requirements for Australian Government statutory authorities, including Austrade.

Austrade is also subject to specific statutory and regulatory requirements that influence its operations, including:

► Privacy Act 1988

► Consular Privileges and Immunities Act 1972 (including the Vienna Convention on Consular Relations)

► Freedom o f Information Act 1982

► Ombudsman Act 1976

► Auditor-General Act 1997

► Workplace Relations Act 1996.

Compliance with relevant legislation is reviewed on a regular basis.

Part Three: Accountability

The responsible Minister for the reporting period, and at the date of the report of operations, was the Hon Mark Vaile MR, Deputy Prime Minister and Minister for Trade.

In addition to the responsible minister, Austrade takes account of Parliament, other ministers, central agencies such as the Department of Finance and Administration, external review bodies such as the ANAO, international treaties, clients, the public and

its employees.

M I N I S T E R I A L D I R E C T I O N S

A N D D E T E R M I N A T I O N S

Section 47A of the Commonwealth Authorities and Companies (CAC) Act allows the Minister of Finance to give directions to the directors of an authority or a company on matters related to the procurement of property and services.

On 1 December 2004, Senator the Hon Nick Minchin, the Minister for Finance and Administration, issued Directions under section 47A instructing

directors of relevant CAC Act bodies including Austrade that they must comply with Division 2 (Mandatory Procurement Procedures) for covered procurement. Directors were also instructed to apply

Division 1 of the Commonwealth Procurement Guidelines (CPGs) or where officials take action that is not consistent with Division 1 of the CPGs must make a record of the reasons for not doing so.

Covered procurement for Austrade is procurement (other than procurements of construction services) with a threshold of $400 000. For procurement of construction services the threshold is $6 million.

No other ministerial direction was given by the Deputy Prime Minister and Minister for Trade or any other minister to Austrade in 2004-05.

Australian Trade Commission Annual Report 2004-05 53

I N D E P E N D E N T A U D IT S

In 2004-05 the Auditor-General tabled in Parliament a number of audit reports of relevance to Austrade operations. Details of audits involving Austrade are shown in Table 11.

Table 11: Audits involving Austrade 2004-05

AN AO report No. 11 2004-05: Commonwealth Entities' Foreign Exchange Risk Management

The report made a number of recommendations regarding enhancements to the reporting of aggregate foreign exchange exposures, gains and losses.

AN AO report No. 22 2004-05: Investment o f Public Funds There was no finding relevant to or any significant implications for Austrade.

ANAO report No. 26 2004-05: Measuring the Efficiency and Effectiveness o f E-Government

The audit was designed to identify the methods used to measure the efficiency and effectiveness of service delivery through the Internet and to evaluate the adequacy of these measures.

ANAO report No. 28 2004-05: Protecting Australian Missions and Staff overseas

The report made a number of recommendations for enhancing Austrade's approach to security at its overseas posts.

The recommendations are consistent with the measures and activities implemented during 2004-05 and w ill inform ongoing activities to enhance security of Austrade posts and residences in the context of the changing global security environment.

J U D I C I A L D E C I S I O N S A N D RE VI EW BY O U T S I D E B O D I E S

There were no Parliamentary inquiries into matters directly affecting Austrade or any judicial decisions.

Details of appeals to the Administrative Appeals Tribunal (AAT) under the EMDG Act are shown in Table 12. No decisions of the AAT involving EMDG appeals were referred to the Federal Court on appeal during 2004-05.

Any grant amounts payable as a result of a successful appeal are payable from the administered account and not from Austrade's departmental budget.

Table 12: Appeals to the Administrative Appeals Tribunal under the EMDG Act

Number of appeals in progress at 1 July 2004 Number of appeals received 1 July 2004 to 30 June 2005 TOTAL

5 7

12

Appeals finalised or settled prior to hearing 5

Decisions handed down 3

TOTAL 8

Number of appeals in progress at 30 June 2005 4

54 Australian Trade Commission Annual Report 2004-05

PRIVACY

No complaints under the'Privacy Act 1988 were received by Austrade during the 2004-05 financial year.

Training on the Commonwealth Privacy Principles and Austrade's own privacy policies is provided as part of regular corporate training including training

for staff before they go on posting overseas and induction training.

F R E E D O M O F I N F O R M A T I O N

Austrade is required to comply with the Freedom of Information Act 1982 (FOI Act). Austrade received four requests during 2004-05 and has met its obligations under the Act. See Appendix C.

E C O L O G I C A L L Y S U S T A I N A B L E

D E V E L O P M E N T

In accordance with the Environmental Protection and Biodiversity Conservation Act 1999, Austrade continues to monitor its ecologically sustainable development and environmental performance.

The development of an Environmental Management System (EMS) for Austrade is under way. It aims to reduce consumption of finite natural resources and the production of greenhouse gases while ensuring the efficient use of physical and monetary

resources and the provision of healthy operating environments for employees.

The implementation of this EMS and other energy conservation measures demonstrates Austrade's commitment to meeting energy performance standards set by the Australian Greenhouse Office.

In 2004-05, a review and inspection of the Austrade- owned residential portfolio included considerations of the environmental issues impacting on the properties' condition and general services.

Austrade complies with the Australian Government's environmental purchasing policy.

In assessing value for money, many criteria are considered in the context of environmental purchasing. These include:

► generating less waste

► using less energy or other resources in production and operation

► preference for goods that are made using renewable and sustainable resources, have recycled content, do not require the use of toxic chemicals in operation, and generate

less polluting byproducts in production and operation

► suppliers that can demonstrate good environmental standards and practices.

Austrade also monitors the impact of its day-to-day activities on the environment and implements, where necessary, specific projects aimed at improving environmental performance.

Part Three: Accountability Australian Trade Commission Annual Report 2004-05 55

A N D FUTURE PROSPECTS

Austrade has performed its statutory objectives and functions and delivered its principal outputs and contributions to outcomes in accordance with its operational plan for the 2004-05 year. Details of Austrade's financial and non-financial performance are set out in the KP1 section (see pages 6-7) and Outcomes and outputs section (see pages 24—41) of this report.

For the 2004-05 financial year, Austrade reported a net departmental deficit of $5,455 million.

In 2003-04, there was a net surplus of $0,312 million before repayment of a capital amount of $9,730 million to the Australian Government.

In the 2004-05 financial year departmental equity increased from $72,431 million to $75.151 million compared to a decrease in 2003-04 from $75.05 million to $72,431 million.

The increase in 2004-05 included the net departmental deficit of $5,455 million, offset by an increase on revaluation of property, plant and equipment of $2,047 million and an equity injection of $6,128 million.

At 30 June 2005 net assets administered on behalf of the Australian Government amounted to $5,230 million compared to $4,738 million at 30 June 2004.

Cash deposits held by Austrade during the 2004-05 financial year were principally in the form of bank bills held with major Australian banks in accordance with our Treasury Policy. Austrade's

major departmental investing activities in 2004-05, as reported in its financial statements, were investments of $8,303 million in property, plant and equipment (compared to $10,585 million spent in 2003-04) offset by proceeds from the sale of property, plant and equipment of $0,908 million (compared to $0,662 million in 2003-04). There were no financing activities outgoings in 2004-05 (compared to a payment to the Australian Government of foreign exchange savings of $9,730 million in 2003-04).

There were no investing or financing activities in relation to administered items (also nil in 2003-04).

A number of specific factors, events and trends influencing Austrade's performance during the financial year have been referred to in the Managing Director's report (see pages iv-v). There were no significant events to be notified under Section 15 of the Commonwealth Authorities and Companies Act during the financial year 30 June 2005.

No other matters or circumstances have arisen during or since the end of the financial year that has significantly affected or may significantly affect:

► Austrade's operations in future financial years

► the results of those operations in future years

► Austrade's state of affairs in future financial years.

56 Australian Trade Commission Annual Report 2004-05

Throughout the financial year Austrade maintained a relevant and robust governance structure comprising the Board and its charter, corporate and operational planning structures, and risk management and internal control systems. These represent a strong mix of Board-related, external

and management controls.

Best-practice principles, as set out in the Australian National Audit Office (ANAO) Better Practice Guide on public sector governance, are fundamental elements of Austrade's corporate governance framework.

A U S T R A D E B O A R D

The Austrade Board determines the policy to be followed in the conduct of the affairs of Austrade, including its strategic direction, setting goals and directions, financial control, monitoring performance and corporate governance.

Within the scope of the corporate and operational

plans, the Board has authority to act by virtue of the powers conferred upon it under section 23 of the Australian Trade Commission Act.

The Board is accountable to the Minister for Trade. The Minister may give directions to the Board under section 10 of the Act.

The Board also recommends to the Minister for Trade the appointment of the Managing Director and Deputy Managing Director.

BOARD PROCESSES

To assist in the execution of its responsibilities, the Board has adopted its own charter and established the Board Audit, Risk, and Nomination and Remuneration Committees, which are also

governed by their own charters. Board and committee charters are reviewed at least annually. Special-purpose subcommittees are constituted by

the Board, as required.

The Board has established a framework for the management of Austrade that includes, by Instrument of Delegation, establishing powers reserved to the Board and powers delegated to the

Part Three: Corporate governance

Managing Director, an effective internal control and risk management environment, monitoring and accountability processes, and a code of conduct for Australian-based and overseas-engaged employees.

The agenda for Board meetings is determined by the Managing Director in consultation with the Chairman and prepared by the Board Secretary.

At each scheduled Board meeting, the Board receives a report by the Managing Director, a financial operations report for the month and various reports from management seeking the Board's guidance or decision on matters falling within the

Board's ambit of responsibility. In addition to specific items for Board consideration, there are regular reviews of Austrade activities and strategies and planning for current and future activities.

W ith the approval of the Chairman, a member, to further his or her duties, may seek independent professional advice at Austrade's expense. In such cases, the Chairman w ill notify other members of

this approval no later than at the next meeting of the Board and the resulting advice w ill be issued to other members as soon as is practical.

BOARD MEMBER ACTIVITY

The following control procedures exist for Board member activity:

► Each director makes a declaration of pecuniary interests

► Directors must disclose all potential conflicts of interest they may have with matters the Board is considering. In each case, the Board must decide whether the director should continue to take part in discussions on the matter

► The ANAO reviews the Austrade Board minutes to ensure directors have made declarations of related-party transactions that they, or the entities in which they have an interest, have had with Austrade. Austrade's annual report to Parliament

discloses any such related-party transactions.

Australian Trade Commission Annual Report 2004-05 57

CO M PO SITIO N OF THE BOARD

Section 12(1) of the Australian Trade Commission Act 1985 governs the composition and membership of the Board, and provides that the Board shall consist of no fewer than 10 and no more than

12 members, namely:

► a Chairperson

► a Deputy Chairperson

► the Managing Director

► the Managing Director of the Export Finance and Insurance Corporation (EF1C) (ex officio)

► two Government members

► other members (no fewer than four and no more than six) as the Minister determines appropriate.

The terms and conditions of the appointment and retirement of non-executive directors are set out in an instrument of appointment from the Minister for Trade. Non-executive directors are usually

appointed for a three-year term, with the possibility of reappointment by the Minister.

CHANGES TO THE BOARD

The Minister for Trade appointed Mrs Kerry Sanderson AO and Mr Ian Knop for a three-year term following the retirement of Professor Eileen Doyle and Ms Mary Boydell. Ms Boydell retired from the Austrade Board on 20 July 2005. Professor Doyle retired from the Austrade Board on 19 April 2005.

Mr Michael L'Estrange replaced Dr Ashton Calvert AC as a government member on his retirement on 4 January 2005.

BOARD MEMBERSHIP 2004-05

The following members constituted the Board of Austrade at 30 June 2005.

ROSS ADLER A O , B C o m , M B A

S o u th A u s tr a lia n re s id e n t

(6 0 y e a rs )

Non Executive Chairman

Ross Adler was appointed as a Board member on 30 October 2000 and Chairman on 8 May 2001. He is Chairman of the Board Nomination and Remuneration Committee. He was reappointed for a further three year term from 31 October 2003.

Mr Adler is Chairman and CEO of Amtrade International Pty Ltd, Chairman of Domino's Pizza Australia New Zealand Ltd, Chairman of the Adelaide Festival, a Council member of the University of Adelaide and Chairman of its Finance Committee.

He was formerly Managing Director of Santos Ltd, (1984 to 2000). From 1975 to 1984 Mr Adler was Managing Director of Brown & Dureau Limited. From 1979 to 1 984 he held various senior management roles with Australian

Paper Manufacturers Limited, later Amcor. He was a Director of Telstra Corporation Ltd from 1 996-2001 and a Director of the Commonwealth Bank of Australia Ltd from 1991-2004.

JOHN DOWN M E c Q u e e n s la n d re s id e n t

(6 4 ye a rs )

Non Executive

Deputy Chairman

John Down was appointed to the Board as a member on 18 May 2000 and as Deputy Chairman on 19 May 2000. He was a previous Board member, member of the Board Audit Committee and a member of the Export Finance and Insurance Corporation Board. Mr Down is currently Chairman of the Boarc

Risk Committee and a member of the Board Nomination and Remuneration Committee. He was reappointed for a further three years by the Minister from

19 May 2003.

Currently, Mr Down is Deputy Chairman and Managing Director of Vi king Industries Ltd.

Mr Down jointly established the CRM Group of Companies, an integrated agribusiness group (1 971-92). He was Director-General of the Office of Major Projects and Head of the Office of the Co-ordinator General in the Government: of Queensland (1993-96). He was a director of QCT Resources Ltd and Annaconda Nickel Limited and several private company boards.

58 Australian Trade Commission Annual Report 2004-05

PETER O'BYRNE M C o m (H o n s ), K PA,

IA I G O

N e w S o u th W a le s re s id e n t

(5 5 ye a rs)

Managing D irector

Peter O'Byrne joined Austrade in May 2002 as Managing Director, He is also ex officio on the Board of the Export Finance and Insurance Corporation and a member of the Trade Policy Advisory Council.

Before joining Austrade he was the Managing Director of Australian Hearing, an Australian Government trading enterprise, which includes the National Acoustic Laboratory and a Board member of the Cooperative Research Centre for Cochlear Implants and Hearing Aids. Mr O'Byrne was previously based in Singapore as

Regional Director for the Reckitt & Colman businesses across East Asia.

He has been a Director of the World Federation of Proprietary Medicine Manufacturers, President of the Proprietary Medicine Manufacturers of Australia and a Director of the Grocery Manufacturers of Australia Ltd.

MICHAEL L'ESTRANGE B A (H o n s )

A u s tr a lia n C a p ita l

T e r r ito r y re s id e n t

(5 2 y e a rs )

Non Executive Government Director

Michael L'Estrange was appointed as Secretary of the Department of Foreign Affairs and Trade in January 2005, and was appointed a Government member of the Board of Austrade on 14 February 2005.

From July 2000 until this appointment, Mr L'Estrange was High Commissioner to the United Kingdom of Great Britain and Northern Ireland. Prior to that posting, he was (from March 1996) Secretary to the Cabinet and Head of the Cabinet

Policy Unit on the staff of the Prime Minister.

Mr L'Estrange served in the Department of the Prime Minister and Cabinet, as well as a senior adviser to three Opposition Leaders. He is a Rhodes Scholar, and was awarded a Harkness Fellowship in international relations at Georgetown University in Washington DC and the University of California at Berkeley

between 1987 and 1989. In 1 995 Mr L'Estrange was the Executive Director of the Menzies Research Centre in Canberra. He is also a member of the Export Finance and Insurance Corporation Board.

MARK PATERSON B B us, F A IC D , F A IM ,

F R M IA

N e w S o u th W a le s re s id e n t

(51 years)

Non Executive

Government Director

Mark Paterson was appointed to the Board as a Government member on 11 February 2002. He is Secretary of the Department of Industry, Tourism

and Resources.

He is also a member of the boards of Tourism Australia, the Export Finance and Insurance Corporation, the Australian Research Council and is a member

of the Trade Policy Advisory Council.

Prior to this appointment, M r Paterson was Chief Executive of the Australian Chamber of Commerce and Industry. Earlier experience involved heading the Retailers Council of Australia and the Retail Traders Association of NSW, and

periods with the Australian Chamber of Manufactures (NSW), the Australian Medical Association and the South Australian Public Service Board.

Part Three: Corporate governance Australian Trade Commission Annual Report 2004-05 59

ANGUS ARMOUR M B A , BEc (H o n s ), FAIBF,

F A IC D

N e w S o u th W a le s re s id e n t

(4 2 ye a rs)

Non Executive Ex Officio Director

Angus Armour was appointed Managing Director of the Export Finance and Insurance Corporation (EFIC) on 31 October 2003, and as such is an ex officio member of the Board of Austrade. EFIC is a statutory authority of the Australian Government charged with supporting Australian exports and overseas investments through finance and insurance products.

Mr Armour joined EFIC in 1993 after working for the South Pacific Project Facility of the International Finance Corporation (IFC) in Sydney, and Export Development Corporation (EDC) in Canada.

CHRISTOPHER ANDERSON BEc N e w S o u th W a le s re s id e n t

(6 0 ye a rs )

Non Executive Director

Chris Anderson was appointed to the Austrade Board as a member on 8 May 2004.

Mr Anderson stood down as Chief Executive of Optus last year after seven years. At Optus, Mr Anderson managed the company through significant milestones including listing on the Australian Stock Exchange in 1 998, the SingTel purchase of Optus in 2001 and the Optus-Foxtel content sharing

Pay TV television deal in 2002.

Mr Anderson was appointed to the Board of Publishing & Broadcasting Limited (PBL) on 9 June 2004. He is also on the Board of Foxtel, SEEK, nineMSN, Hoyts and is a Member of ABN Amro's Advisory Council. The bulk of his career, from 1966-1991, was spent with John Fairfax Limited. There he had a range of editorial and managerial positions in a 25 year long career. He was appointed Managing Director and Group Editorial Director of all Fairfax group newspapers in 1987, and Chief Executive Officer, John Fairfax Group, in 1990.

MARY BOYDELL B C o m , F C A

Q u e e n s la n d re s id e n t

(5 3 ye a rs)

Non Executive Director

Mary Boydell was appointed to the Board on 21 July 1998 and reappointed for a further three years from 21 July 2001, and a further one-year term by the Minister from 21 July 2004. She was the Chairperson of the Board Audit Committee until 30 November 2004 and continued as a member.

Ms Boydell is a Fellow of the Institute of Chartered Accountants in Australia, with significant experience in business, finance and corporate administration. She serves as Chairperson of the Gladstone Area Water Board, Chair of the

Rural Industries Research and Development Corporation (RIRDC). She is a Director of Burnett Water Pty Ltd and BSES Limited.

From 1995 to 2000, Ms Boydell served with the international law firm, Deacons, as Chief Financial Officer for Australia and Asia.

60 Australian Trade Commission Annual Report 2004-05

SARINA BRATTON M A IC D , A F A IM

N e w S o u th W a le s re s id e n t

(51 ye a rs)

Non Executive Director

Sarina Bratton was appointed to the Austrade Board on 19 May 2000. She is a member of the Board Risk Committee. She was reappointed for a further three years from 19 May 2003.

Mrs Bratton is the Founder and Managing Director of Orion Expedition Cruises Pty Ltd, Australia's first five-star expedition cruise operation. She was formerly the Managing Director of Norwegian Capricorn Line, a joint venture partnership between Australian interests and Norwegian Cruise Line of Miami. Prior to this she was Vice President and General Manager Asia Pacific for Cunard Line.

Mrs Bratton has been recognised by state and federal governments through various Board positions with the State Transit Authority (NSW), Australian Maritime Safety Authority (Deputy Chair) and Sydney Paralympic Organising Committee (Prime Minister's nominee).

She is presently a director of Voyages Hotels and Resorts, and was awarded the Australian Government's Centenary Medal in 2003 for her Business Leadership contributions to Australian society.

DAVID MORGAN B C o m

V ic t o r ia n r e s id e n t

(6 5 ye a rs )

Non Executive Director

David Morgan was appointed to the Board on 29 January 2001 and reappointed by the Minister for a further three years from 30 January 2004.

He was Chair of the Board Risk Committee until April 2004 and then was appointed as a member and then Chair of the Board Audit Committee and is a member of the Board Nomination and Remuneration Committee.

Mr Morgan is also Chairman of the Geelong Economic Development Council, Chairman of Geelong Region Alliance Ltd and Council Member of Deakin University. In addition, he is on the Board of the Victorian Centre for Advanced

Manufacturing Materials and Chairman of the National Motor Vehicle Theft Reduction Council. He is a past President of Ford Australia.

KERRY SANDERSON A O , BSc, B E c, FCIT,

F A IM , M A I C D

W e s te rn A u s tr a lia n

re s id e n t

(5 4 ye a rs)

Non Executive Director

Kerry Sanderson was appointed to the Board on 10 May 2005. She is the Chief Executive Officer of Fremantle Ports. She was appointed to this position in 1992 after almost four years as Deputy Director General of Transport for Western Australia covering all modes of transport. Prior to this, she was with the State Treasury as Director of Treasury's Economic and Financial Policy Division.

Mrs Sanderson was the recipient of the Telstra WA Businesswoman of the Year

Award for 1996 and was also appointed an Officer of the Order of Australia (AO) in the Queen's Birthday Honours List in 2004. In March 2005,'she was awarded an honorary doctorate of letters by the University of Western Australia. She has been actively involved in a number of other Boards and committees.

Part Three: Corporate governance Australian Trade Commission Annual Report 2004-05 61

DR PAUL SCULLY-ROWER AM, DSM, NSM, DSc, BSc (H o n s ), D ip E d ,

FR AeS, F A IL 'D

N e w S o u th W a le s re s id e n t

(61 ye a rs)

Non Executive Director

Dr Paul Scully-Power was appointed to the Board on 4 June 2001 and reappointed for a further three years by the Minister from 4 June 2004. He is a member of the

Board Risk Committee.

Dr Scully-Power is the Chief Technology Officer of the Tenix Group. He is a past Chairman of the Civil Aviation Safety Authority, a former Chancellor of Bond

University, and was the inaugural Chairman of the Queensland Science and Technology Council. Prior to that, he managed and led many high-technology and industry programs in the United States, serving with the US Navy, NASA, the Pentagon and the White House. He was also the President of the Fort Trumbull Federal Credit Union. Before going to the United States, he was the

inaugural Head of the Royal Australian Navy's Oceanographic Group.

STANDING COMMITTEES OF THE BOARD

Currently, the Board has three standing committees operating in accordance with charters approved by the Board: the Board Audit Committee; the Board Risk Committee; and the Board Nomination and

Remuneration Committee. The Board also appoints special-purpose committees, as required, although

none were created during 2004-05.

BOARD AUD IT COMMITTEE

The Board Audit Committee (BAC) is a subcommittee of the Board. It comprises a member of the Board as Chairperson and up to two other Board members appointed by the Board for a term of three years, although this may be varied.

Austrade management, and Austrade's internal auditor (KPMG) and external auditor (ANAO), attend meetings of the committee on a regular basis.

The BAC is responsible for the general oversight of Austrade's reporting and auditing arrangements,

including:

► ensuring that an appropriate framework exists for management and financial reporting including accounting policies

► reviewing reports to regulators requiring

Board approval

► reviewing related party transactions

► compliance with laws and regulations, significant policies and procedures and Codes of Conduct in the context of reporting and audit

► overseeing an effective internal control system

► overseeing the scope and quality of external audit

► maintenance of an effective internal audit function, including recommendations to the Managing Director on the selection of the

internal auditor

► agreeing to internal audit programs and capabilities, after consultation with the Board Risk Committee, and their presentation to the Board at the start of the financial year

► liaison with the Managing Director to ensure the allocation of adequate resources to maintain the quality and viability of audit programs

► coordination of internal audit with other management advisory activities

► ensuring that effective liaison is maintained with the ANAO

► ensuring that all ANAO performance recommendations and other audits are implemented.

BOARD RISK COMMITTEE

The Board Risk Committee (BRC) is a subcommittee of the Board. It comprises a member of the Board as Chairperson and up to two other Board members appointed by the Board for a term of three years, although this may be varied.

Austrade management and Austrade's internal auditor (KPMG) attend every meeting.

62 Australian Trade Commission Annual Report 2004-05

The BRC is responsible for the general oversight of Austrade's risk management arrangements, including:

► ensuring that an appropriate fraud control and risk management framework is maintained by management in accordance with general corporate governance principles

► liaison with the Managing Director to ensure the allocation of adequate resources to maintain the quality and viability of risk management programs

► establishing processes for managing compliance with laws, regulations, standards and best practice guidelines including environmental and industrial relations laws.

The BAC and BRC:

► are not decision-making committees

► meet quarterly and convene extraordinary meetings, as work requires

► report to the Board after every meeting and annually

► present their proposals for the coming year's work to the Board in July each year.

BOARD N O M IN A T IO N AND

REMUNERATION COMMITTEE

The Board Nomination and Remuneration Committee

(BNRC) comprises the Chairman of the Board as its Chairperson, and three other Board members.

The BNRC is responsible for the general oversight of Austrade's staff recruitment and remuneration policy.

This function includes:

► managing an appropriate succession strategy for Austrade senior management

► providing recommendations to the Board on recruitment, remuneration and performance bonuses of the Managing Director and direct reports to the Managing Director

► reviewing and recommending to the Board on matters of staff employment, remuneration and performance bonus budgets and distribution policies

► delegated power to appoint an acting Deputy Managing Director to act in the role

of Managing Director.

The BNRC:

► is deliberative only and not a decision-making committee, except that the Board has delegated to it the power to appoint an acting Deputy Managing Director

► has no formal work program and meets as required

► reports to the Board after every formal meeting.

In 2004-05 the BNRC did not meet formally, but exercised its delegated authority once by electronic communication to appoint an acting Managing Director.

ATTENDANCE AT BOARD AND COMMITTEE MEETINGS 2004-05

During the year the Board held 10 ordinary meetings and one extraordinary meeting. The Audit Committee held six meetings and the Risk Committee held four meetings (seeTable 13).

MANAGEMENT ENVIRONMENT

Section 53(1) of the Australian Trade Commission Act provides that 'the affairs of the Commission shall, to the extent determined by the Board, be managed by the Managing Director'.

In accordance with Section 53(2), the Board has determined the extent to which the affairs of the Commission shall be managed by the Managing Director, who in turn is able to delegate powers to Austrade employees.

Section 53(3) provides that the Managing Director shall, in managing the affairs of the Commission, act in accordance with the policy of, and directions given by, the Board.

In 2004-05, the Board reviewed and amended the limitations on the powers of the Managing Director and reviewed the changes to the Managing Director's delegations to staff.

The Minister reappointed Peter O'Byrne as Managing Director for a further term on 1 May 2005.

MANAGEMENT MECHANISMS

Austrade's management mechanisms ensure effective decision-making on, and communication of, corporate governance issues and organisational priorities (see Table 14). .

Part Three: Corporate governance Australian Trade Commission Annual Report 2004-05 63

Table 13: Attendance at Board and committee meetings, 2004-05 Board Board

Audit Risk

Name Board Committee Committee

Ross Adler AO 10(11)

John Down 9 (11) 4(4)

Peter O'Byrne 11 (11)

Dr Ashton Calvert AC" 5 (6)

Michael L'Estrange 5 (5)

Mark Paterson 7(11)

Chris Andersonf 7(11)

Mary Boydell 11 (11) 6(6)

Sarina Bratton 8(11) 3 (4)

Prof Eileen Doyle 6(8) 5 (6)

David Morgan 9(11) 6(6)

Dr Paul Scully-Power AM 8(11) 4(4)

Angus Armour 10(11)

Kerry Sanderson AO 2 (2)

T h e n u m b e r o f m e e tin g s a d ir e c to r w a s e lig ib le to a tte n d is s h o w n in b ra c k e ts .

* D r C a lv e r t w a s re p re s e n te d b y a n o b s e rv e r o n th re e o c c a s io n s ,

t M r A n d e r s o n w a s g ra n te d le a v e fr o m th e B o a rd f o r an e x te n d e d a b s e n c e .

Table 14: Management meetings and committees

Executive Director meetings Fortnightly meetings of the executive team, chaired by the Managing Director, were conducted using telephone conferencing facilities.

In addition, the executive team met in Australia on three occasions during 2004-05 to consider Austrade's strategic priorities and discuss a wide range of corporate policy and operational issues.

Workplace Relations Committee The Workplace Relations Committee is the chief consultative body for human resource management and conditions of service issues affecting Austrade Australian-based staff. The committee is chaired by the Executive Director Human Resources. Members include

representation from the union, Austrade management and seven employee-elected representatives. The committee met on three occasions in 2004-05.

Other senior management The senior management teams of each division/region held regular meetings and mechanisms meetings during the year to discuss strategic and operational issues relevant to their division/region. In addition, a number of 'Stay in Touch' sessions were held in Austrade's major Australian offices.

These sessions provided an opportunity for senior managers to update staff on a wide range of corporate issues. Austrade staff visiting from overseas also conducted a number of Stay in Touch sessions to update staff on developments and issues in overseas markets.

64 Australian Trade Commission Annual Report 2004-05

Key methods of communicating with staff include Weekly Update, a weekly electronic newsletter and a quarterly staff magazine, New Horizons.

Austra.de Executive meet in Sydney in March 2005

INTERNAL CONTROL AND RISK MANAGEMENT

Austrade is committed to minimising the exposure of its clients, stakeholders, employees and assets to risks arising from Austrade activities and services.

The Austrade risk management policy as agreed with the Board Risk Committee and the Board sets out the risk management framework. Austrade's risk management framework is based on the Australian and New Zealand Standard AS/NZS4360 and seeks

to ensure that risk management is a key element of all major projects, activities and procurements. Greater integration of the risk management and business planning cycles is also a key objective

and the development of an enterprise-wide risk management approach in 2004-05 realised some greater integration.

An organisation-wide risk management plan is prepared annually. The Austrade Board through the Board Risk Committee provides critical oversight of risk management within the organisation and is instrumental in defining the organisation's risk appetite.

With the continued and unprecedented activity and focus around security matters at overseas posts, a key focus of Austrade's risk management activity in 2004-05 was the management of

security-related risks.

Key achievements include the risk-based allocation of security resources and prioritisation of security measures, the development of a Security Risk

Part Three: Corporate governance

Management Framework and the commencement of an Austrade-wide Enterprise Security Risk Assessment (ESRA).

During 2004-05 a review of Business Continuity Planning (BCP) within Austrade was undertaken

and an integrated BCP framework, policy and series of connected plans developed. This framework and associated plans have been prepared with reference to the Australian Standard AS HB221-2003 and the ANAO Best Practice Guide on Business Continuity Management.

A review took place of all existing emergency procedures, contingency plans and/or business continuity plans for all overseas posts and all Australian offices. Austrade conducted a business

impact assessment in consultation with senior staff from across the organisation. Training and workshops were held for Austrade staff with responsibility for BCP in Australia and desktop testing of plans was also undertaken.

In 2005-06 the focus w ill be on completing the full rollout of BCP to overseas regions to improve the consistency and quality of plans, to raise awareness with staff and to further test the plans.

INTERNAL CONTROL SYSTEMS

The Board acknowledges that it is responsible for the overall internal control system, but recognises that no cost-effective internal control system will preclude all errors and irregularities. A key objective is to promote systemic awareness among staff of the control environment and risk in undertaking activities.

The main features of the Austrade's internal control framework are:

► a management environment supported by an effective schedule of delegations

► an effective risk management framework, including fraud control, risk management plans and contingency plans

► monitoring controls through effective planning and budgeting management, policies and procedures

► accountability mechanisms, including reporting and review controls.

Australian Trade Commission Annual Report 2004-05 65

FRAUD RISK AND FRAUD CONTROL PLAN

In accordance with the Government's Fraud Control Policy and Guidelines, Austrade's biennial fraud risk assessment and fraud control plans are part of its overarching risk management framework. Austrade continues to refine and strengthen its fraud control activities.

INTERNAL AUDIT

Internal audit within Austrade is an independent consulting activity designed to add value and improve Austrade's operations. It assists Austrade to accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance processes.

KPMG, Austrade's internal auditors, undertakes a rolling audit of Austrade's internal control framework and operations of the framework consistent with the needs of management and the inherent risks of each activity. In 2004-05 the

Board agreed that internal audit activity should

be governed by a three-year Internal Audit and Assurance Strategy and a rolling annual Internal Audit Plan prepared within the context of that

strategy. The strategy is to he reviewed annually, and the plans reviewed, and amended if necessary, on a six-monthly basis.

INDEMNITIES AND INSURANCE PREMIUMS FOR DIRECTORS AND OFFICERS

The Board has resolved that Austrade will indemnify to the extent permitted by law all current and former directors and employees against liability to third parties when acting in good faith and in an official capacity. The indemnity also applies to legal costs

incurred in defending proceedings. No indemnity was given or agreed to be given to any current or former directors or employees during the year ended 30 June 2005.

66 Australian Trade Commission Annual Report 2004-05

Independent audit report 68

Certification of financial statements 70

Financial statements 71

Notes to the accounts 79

AUSTRALIAN TRADE COMMISSION

I N D E P E N D E N T A U D I T REPORT

Audit Office A ustralian National

IN D E P E N D E N T A U D I T R E P O R T

T o the M in is te r fo r T r a d e

Scope

T h e fin a n c ia l sta tem en ts a n d the B o a rd 's resp o n sib ility

T h e fin a n c ia l sta te m e n ts co m p rise :

• S ta te m e n t b y th e C h a irm a n a n d M a n a g in g D ire c to r;

• S ta te m e n ts o f F in a n c ia l P e rfo rm a n c e , F in a n c ia l P o sitio n a n d C a s h F lo w s;

• S c h e d u le s o f C o m m itm e n ts a n d C o n tin g e n c ie s;

• S c h e d u le o f A d m in iste re d Item s; a n d

• N o te s to a n d fo rm in g p a rt o f th e F in a n c ia l S ta te m e n ts

o f th e A u s tra lia n T ra d e C o m m is sio n f o r th e y e a r end ed 30 Ju n e 2 0 0 5 .

T h e m e m b e rs o f th e A u s tr a lia n T r a d e C o m m is sio n B o a rd a r e re s p o n s ib le fo r p r e p a rin g fin a n c ia l

s ta te m e n ts th a t g iv e a tru e a n d f a ir p re s e n ta tio n o f th e fin a n c ia l p o s itio n a n d p e rfo rm a n c e o f th e

A u s tra lia n T ra d e C o m m is s io n , a n d th a t c o m p ly w ith a c c o u n tin g s ta n d a rd s , o th e r m a n d a to ry fin a n c ia l

re p o rt m g re q u ire m e n ts in A u s tra lia , an d th e F in a n c e M in is te r 's O rd e rs m a d e u n d e r th e

C om m onw ealth A u th o rities a n d C o m panies A ct 1997. T h e m e m b e rs o f th e A u s tra lia n T ra d e

C o m m is sio n B o a rd a re a ls o re s p o n s ib le fo r th e m a in te n a n c e o f a d e q u a te a c c o u n tin g re c o rd s a n d

in te rn a l c o n tro ls th a t a r e d e s ig n e d to p re v e n t an d d e te c t f ra u d a n d e rro r, a n d fo r th e a c c o u n tin g

p o lic ie s a n d a c c o u n tin g e s tim a te s in h e re n t in th e fin a n c ia l sta te m e n ts .

A u d it approach

1 h a v e c o n d u c te d a n in d e p e n d e n t a u d it o f th e fin a n c ia l s ta te m e n ts in o rd e r to e x p re ss a n o p in io n on

th e m to y o u . M y a u d it h a s b e e n c o n d u c te d in a c c o r d a n c e w ith th e A u s tr a lia n N a tio n a l A u d it O ffic e

A u d itin g S ta n d a rd s, w h ic h in c o rp o ra te th e A u s tra lia n A u d itin g a n d A s s u r a n c e S ta n d a rd s, in o rd e r to

p ro v id e re a s o n a b le a s s u r a n c e a s to w h e th e r th e fin a n c ia l sta te m e n ts a r e fre e o f m a te ria l m iss ta te m e n t.

T h e n a tu r e o f a n a u d it is in flu e n c e d b y fa c to rs su c h a s th e u se o f p ro fe s s io n a l ju d g e m e n t, se lectiv e

te s tin g , th e in h eren t lim ita tio n s o f in te rn a l c o n tro l, a n d th e a v a ila b ility o f p e rsu a s iv e , ra th e r th a n

c o n c lu siv e , ev id en ce. T h e re fo re , a n a u d it c a n n o t g u a r a n te e th a t all m a te ria l m iss ta te m e n ts h a v e been

d etected .

W h ile th e e ffe c tiv e n e ss o f m a n a g e m e n t's in te rn a l c o n tro ls o v e r fin a n c ia l re p o rtin g w a s c o n sid e re d

w h e n d e te rm in in g th e n a tu r e a n d e x te n t o f a u d it p ro c e d u re s , th e a u d it w a s not d esig n ed to p ro v id e

a s s u ra n c e o n in te rn a l c o n tro ls.

GPO Box 707 CANBERRA ACT 2601 Centenary House 19 National Circuit BARTON ACT

Rhone (02) 6203 7300 Fax (02) 6203 7777

68 Australian Trade Commission Annual Report 2004-05

1 h a v e p e rfo rm e d p r o c e d u r e s to a s s e s s w h e th e r, in a ll m a te ria l r e s p e c ts , th e fin a n c ia l sta te m e n ts

p re s e n t fa irly , in a c c o r d a n c e w ith th e F in a n c e M i n i s t e r 's O r d e rs m a d e u n d e r th e C om m onw ealth

A u th o rities a n d C o m p a n ie s A c t 1997, a c c o u n tin g s ta n d a rd s a n d o th e r m a n d a to ry fin a n c ia l re p o rtin g re q u ire m e n ts in A u s tr a lia , a v ie w w h ic h is c o n s is te n t w ith m y u n d e rs ta n d in g o f th e A u s tr a lia n T ra d e

C o m m is s io n ’s fin a n c ia l p o s itio n , a n d o f its p e r f o r m a n c e a s r e p re s e n te d b y th e s ta te m e n ts o f fin a n c ia l

p e rfo rm a n c e a n d c a s h flo w s.

T h e a u d it o p in io n is fo rm e d o n th e b a s is o f th e s e p r o c e d u r e s , w h ic h in cluded:

• e x a m in in g , o n a te s t b a s is , in fo rm a tio n to p ro v id e e v id e n c e su p p o rtin g th e a m o u n ts and

d is c lo s u re s in th e fin a n c ia l s ta te m e n ts ; a n d

• a s s e s s in g th e a p p r o p ria te n e s s o f th e a c c o u n tin g p o lic ie s a n d d isc lo s u re s u se d , a n d th e

r e a s o n a b le n e s s o f s ig n ific a n t a c c o u n tin g e s tim a te s m a d e b y th e m e m b e rs o f th e A u s tra lia n

T ra d e C o m m is s io n ’s B o a rd .

In d e p en d e n ce

In c o n d u c tin g th e a u d it, I h a v e fo llo w e d th e in d e p e n d e n c e r e q u ire m e n ts o f th e A u s tra lia n N a tio n a l

A u d it O ffic e , w h ic h in c o r p o ra te th e e th ic a l re q u ire m e n ts o f th e A u s tra lia n a c c o u n tin g p ro fe s sio n .

A u d it O p in io n

In m y o p in io n , th e f in a n c ia l s ta te m e n ts o f th e A u s tr a lia n T r a d e C o m m is sio n :

(a ) h a v e b e e n p r e p a r e d in a c c o r d a n c e w ith th e F in a n c e M in is te r 's O rd e rs m a d e u n d e r th e

C om m onw ealth A u th o rities a n d C o m p a n ie s A c t 1997', a n d (b ) g iv e a tr u e a n d f a ir v ie w o f th e A u s tr a lia n T r a d e C o m m is s io n ’s fin a n c ia l p o s itio n a s a t

3 0 J u n e 2 0 0 5 a n d o f its p e rfo r m a n c e a n d c a s h f lo w s fo r th e y e a r th en en d ed , in a c c o rd a n c e

w ith:

(i) th e m a tte rs re q u ire d b y th e F in a n c e M i n is te r ’s O r d e rs ; a n d

(ii) a p p lic a b le a c c o u n tin g s ta n d a rd s a n d o th e r m a n d a to r y fin a n c ia l re p o rtin g re q u ire m e n ts in

A u s tra lia .

A u s tra lia n N a tio n a l A u d it O ffic e

R e b e c c a R e illy

E x e c u tiv e D ire c to r

D e le g a te o f th e A u d ito r-G e n e ra l

C a n b e rra

18 A u g u s t 2 0 0 5

Part Four: Independent Audit Report Australian Trade Commission Annual Report 2004-05 69

AU STR ALIAN TRADE C O M M IS S IO N

S T A T E M E N T BY T H E B O A R D A N D M A N A G I N G D I R E C T O R

FINANCIAL STATEMENTS

CERTIFICATION OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

T h e f o l lo w in g c o m p r i s e t h e a c c o m p a n y i n g f i n a n c ia l s t a te m e n ts o f t h e A u s tr a l i a n T r a d e C o m m i s s i o n f o r t h e y e a r

e n d e d 3 0 J u n e 2 0 0 5 :

□ S t a t e m e n t o f F i n a n c i a l P e r f o r m a n c e

□ S t a t e m e n t o f F i n a n c i a l P o s itio n

□ S t a t e m e n t o f C a s h F lo w s

□ S c h e d u l e o f C o m m i t m e n t s

S c h e d u l e o f C o n t i n g e n c i e s

□ S c h e d u l e o f A d m i n i s t e r e d I t e m s ( i n c l u d in g C o m m i t m e n t s a n d C o n t i n g e n c i e s )

N o t e s to a n d f o r m in g p a r t o f th e f i n a n c ia l s t a t e m e n t s ( i n c l u d in g A d m i n i s t e r e d ite m s )

In o u r o p i n i o n th e a b o v e s t a te m e n ts a r e b a s e d o n p r o p e r l y m a i n t a i n e d f i n a n c i a l r e c o r d s a n d g iv e a t r u e a n d f a ir v ie w o f

th e m a t t e r s r e q u i r e d b y t h e F in a n c e M i n i s t e r 's O r d e r s m a d e u n d e r t h e C o m m o n w e a lth A u th o r itie s a n d C o m p a n ie s A c t

1997.

In o u r o p i n i o n , a t t h e d a t e o f t h is s t a te m e n t, t h e r e a r e r e a s o n a b le g r o u n d s to b e l i e v e t h a t t h e C o m m i s s i o n w ill b e a b le

to p a y it s d e b t s a s a n d w h e n th e y b e c o m e d u e a n d p a y a b le .

S i g n e d in a c c o r d a n c e w ith a r e s o l u t i o n o f t h e B o a r d

R o s s .A d le r A O

C h a ir m a n

1 8 th A u g u s t 2 0 0 5

P e te r O 'B y r n e

M a n a g i n g D i r e c t o r

1 8 th A u g u s t 2 0 0 5

- 1 -

70 Australian Trade Commission Annual Report 2004-05

STATEMENT OF F I N A N C I A L P E R F O R M A N C E FOR THE YEAR ENDED 30 JUNE 2005

AUSTRALIAN TRADE COMMISSION

30 June 2005 30 June 2004 Notes $'000 $'000

REVENUE Revenues from ordinary activities Revenues from Government 4A 155,136 158,548

Sale of Goods and Services 4B 25,360 23,631

Interest Revenue 4C 2,533 2,712

Revenue from sale of assets 4D 932 712

Other Revenues 4E 3,786 2,711

Revenues from ordinary activities 187,747 188,314

EXPENSES Expenses from ordinary activities Employee Expenses 5A 90,789 88,076

Supplier Expenses 5B 85,497 82,676

Depreciation and Amortisation 5C 10,294 11,419

Write Down of Assets 5D 19 406

Value of assets sold 4D 927 828

Net Foreign Exchange Loss (Gain) 244 (328)

Programs 5E 5,432 4,925

Expenses from ordinary activities 193,202 188,002

Operating surplus/(deficit) from ordinary activities__________________________ (5,455)___________ 312

Net profit (5,455) 312

Net credit to asset revaluation reserve Repayment to the Australian Government

10A 2,047 6,103

(9,730)

Total revenues, expenses and valuation adjustments recognised directly in equity 2,047 (3,627)

Total changes in equity other than those resulting from transactions with the Australian Government as owners (3,408) (3,315)

T he a b o v e s ta te m e n t s h o u ld b e re a d in c o n ju n c tio n w it h th e a c c o m p a n y in g n o te s .

Part Four: Statement of Financial Performance Australian Trade Commission Annual Report 2004-05 71

STATEMENT OF F IN A N C I A L P O S I T I O N AS AT 30 JUNE 2005

AUSTRALIAN TRADE COMMISSION

30 June 2005 30 June 2004 Notes $'000 $'000

ASSETS

Financial assets Cash 11B,17 30,501 25,879

Receivables 6A,17 6,686 8,636

Investments 6B,17 6,126 5,895

Total financial assets 43,313 40,410

Non-financial assets

Land and Buildings 7A,C 35,021 35,404

Infrastructure, Plant and Equipment 7B,C 26,797 26,711

Intangibles 7D 5,074 5,646

Other Non-Financial Assets 7 E 3,611 3,462

Total non-financial assets 70,503 71,223

Total assets 113,816 111,633

LIABILITIES Provisions Employee Provisions 8A 19,933 23,1 18

Total provisions 19,933 23,118

Payables Supplier Payables 9A,17 9,425 8,052

Other Payables 9B,17 9,307 8,032

Total payables 18,732 16,084

Total liabilities 38,665 39,202

NET ASSETS 75,151 72,431

EQUITY

Contributed equity 10A 13,243 7,115

Reserves 10A 69,929 67,882

Accumulated deficits 10A (8,021) (2,566)

Total equity 10A 75,151 72,431

Current assets 45,579 40,245

Non-current assets 68,237 71,388

Current liabilities 21,838 19,225

Non-current liabilities 16,827 19,977

T h e a b o v e s ta te m e n t s h o u ld b e re a d in c o n ju n c tio n w it h th e a c c o m p a n y in g n o te s .

72 Australian Trade Commission Annual Report 2004-05

STATEMENT OF CASH FLO W S FOR THE YEAR ENDED 30 JUNE 2 005

AUSTRALIAN TRADE COMMISSION

30 June 2005 30 June 2004 Notes $'000 $'000

OPERATING ACTIVITIES Cash Received Goods and services 27,397 22,168

Appropriations 155,136 158,548

Interest 2,230 2,677

GST received from ATO 3,903 4,063

Other 4,149 6,490

Total Cash Received 192,815 193,946

Cash Used

Employees 93,777 92,192

Suppliers 87,717 84,620

Programs 5,432 4,925

Total Cash Used 186,926 181,737

Net Cash From Operating Activities 11A 5,889 12,209

INVESTING ACTIVITIES Cash Received Proceeds from sales of property, plant and equipment 908 662

Total Cash Received 908 662

Cash Used

Purchase of property, plant and equipment 5,406 8,895

Purchase of intangibles 2,897 1,690

Total Cash Used 8,303 10,585

Net Cash From / (Used By) Investing Activities (7,395) (9,923)

FINANCING ACTIVITIES Cash Received

Appropriations— contributed equity 6,128 697

Total Cash Received 6,128 697

Cash Used

Repayment to the Australian Government - 9,730

Total Cash Used - 9,730

Net Cash From / (Used By) Financing Activities 6,128 (9,033)

Net Increase / (Decrease) in Cash Held 4,622 (6,747)

Cash at the beginning of the reporting period 25,879 32,626

Cash at the End of the Reporting Period 1TB 30,501 25,879

T he a b o v e s ta te m e n t s h o u ld b e re a d in c o n ju n c tio n w it h th e a c c o m p a n y in g n o te s .

Part Four: Statement of Cash Flows Australian Trade Commission Annual Report 2004-05 73

SC H ED U LE OF C O M M I T M E N T S AS AT 30 JUNE 2005

AUSTRALIAN TRADE COMMISSION

30 June 2005 30 June 2004 $'000 $'000

BY TYPE Capital Commitments Infrastructure, plant and equipment1 1,453 1,023

Total Capital Commitments 1,453 1,023

Other Commitments Operating leases2 70,249 65,390

Other commitments ’ 6,390 12,907

Total Other Commitments 76,639 78,297

Commitments Receivable (4,338) (2,796)

Net Commitments by Type 73,754 76,524

BY MATURITY Capital Commitments One year or less 1,040 499

From one to five years 398 511

Over five years 15 13

Total Capital Commitments 1,453 1,023

Operating Lease Commitments One year or less 18,660 21,331

From one to five years 38,804 35,478

Over five years 12,785 8,581

Total Operating Lease Commitments 70,249 65,390

Other Commitments One year or less 6,338 7,708

From one to five years 52 5,199

Total Other Commitments 6,390 12,907

Commitments Receivable One year or less (1,007) (912)

From one to five years (2,277) (1,265)

Over five years (1,054) (619)

Total Commitments Receivable (4,338) (2,796)

Net Commitments by Maturity 73,754 76,524

NB: C om m itm ents are GST inclusive w here relevant.

1 Plant and eq u ip m e n t com m itm ents are p rim a rily contracts fo r purchases o f leasehold im provem ents and m o tor vehicles.

2 O pe ratin g leases, w h ic h relate p rim a rily to office /resid entia l accom m odation and com pute r equipm ent, are effectively

non-cancel lable; they com prise:

N a tu re o f lease G en eral description o f leasing arrangem ent

O ffice and residential

accom m odation

The Com m ission has leases w ith the C om m onw ealth, D epartm ent o f Foreign Affairs and Trade and com m ercial

landlords in Australia and overseas on terms and c o n d itio n s negotiated in each market. The terms and con ditions o f

the leases vary w id e ly de pend ing on the circum stances in the relevant country and the specific terms o f each lease.

C om puter eq uipm e nt The lessor provides all co m p u te r eq uipm e nt and software designated as necessary in the supply con tract fo r 3 years

The in itia l eq uipm e nt has an average useful life o f 3 years from the com m encem ent o f the contract.

3 O th e r com m itm en ts m a in ly com prise contracts for the supply o f te le co m m u n ica tio n links and for the Tradestart program .

T h e a b o v e s c h e d u le s h o u ld b e re a d in c o n ju n c tio n w it h th e a c c o m p a n y in g n o te s.

74 Australian Trade Commission Annual Report 2004-05

S C H E D U L E OF C O N T I N G E N C I E S AS AT 30 JUNE 2005

AUSTRALIAN TRADE COMMISSION

30 June 2005 30 June 2004 $'000 $'000

CONTINGENT LIABILITIES Indemnities - 81

Total Contingent Liabilities - 81

1 As at 30 June 2005 the resolution of a potential claim for unanticipated employee liabilities in respect of one overseas location was outstanding. It is not practical to quantify the value of any potential liability.

2 A recent Australian National Audit Office report on the administration of Fringe Benefits Tax has highlighted that the FBT treatment of some entitlements provided to employees overseas may be incorrect. As the issues raised are the subject of continuing consultations with the Australian Taxation Office it is not practical to quantify any potential liability, but it is estimated that the additional amount

payable would be a maximum $0.74m per annum.

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

Part Four: Schedule of Contingencies Australian Trade Commission Annual Report 2004-05 75

AUSTRALIAN TRADE COMMISSION

SCHEDULE OF ADMINISTERED ITEMS

30 June 2005 30 June 2004 Notes $'000 $'000

REVENUES ADMINISTERED ON BEHALF OF THE GOVERNMENT for the year ended 30 tune 2005

Non-taxation (Revenues from Government) 18A

Goods and services 8 43

Interest 25 40

Other revenue 636 481

Total Revenues Administered on Behalf of Government 669 564

EXPENSES ADMINISTERED ON BEHALF OF THE GOVERNMENT for the year ended 30 tune 2005 18B

Employees 5,387 5,199

Suppliers 2,012 1,870

EMDG Grants 123,868 143,831

Total Expenses Administered on Behalf of Government 131,267 150,900

ASSETS ADMINISTERED ON BEHALF OF THE GOVERNMENT as at 30 June 2005

Financial Assets 18C

Cash 7,264 6,562

Receivables 92 150

Accrued revenue 5 -

Total Financial Assets 7,361 6,712

Total Assets Administered on Behalf of Government 7,361 6,712

LIABILITIES ADMINISTERED ON BEHALF OF THE GOVERNMENT

as at 30 June 2005

Provisions 18D

Employees 1,907 1,749

Total Provisions 1,907 1,749

Payables 18D

Suppliers 113 46

Other payables 111 179

Total Payables 224 225

Total Liabilities Administered on Behalf of Government 2,131 1,974

Net Assets Administered on Behalf of Government 5,230 4,738

Current Assets 7,361 6,712

Non-current Assets - -

Current Liabilities 837 848

Non-current Liabilities 1,294 1,125

76 Australian Trade Commission Annual Report 2004-05

AUSTRALIAN TRADE COMMISSION

SCHEDULE OF ADMINISTERED ITEMS (CONTINUED)

30 June 2005 30 June 2004 Notes $'000 $'000

ADMINISTERED CASH FLOWS for the year ended 30 June 2005

OPERATING ACTIVITIES Cash Received

Rendering of services 24 119

Interest 25 40

Loan repayments 684 352

Other— GST received from ATO 179 120

Total Cash Received 912 631

Cash Used

Grant payments 123,868 143,831

Employees 5,306 5,179

Suppliers 2,125 2,004

Total Cash Used 131,299 151,014

Net Cash used in operating Activities (130,387) (150,383)

Net Decrease in Cash Held (130,387) (150,383)

Cash at the beginning of the reporting period 6,562 6,545

Cash from Official Public Account for:

— Appropriations 131,089 150,400

Cash at the End of the Reporting Period 18C 7,264 6,562

ADMINISTERED COMM ITM ENTS as at 30 June 2005

BY TYPE

Other Commitments Operating leases 92 -

Total Other Commitments 92 -

Commitments Receivable (8) -

Net Commitments by Type 84 -

BY MATURITY

Other Commitments One year or less 86 -

From one to five years 6 -

Total Other Commitments 92 -

Net Commitments by Maturity One year or less (7) -

From one to five years (1) -

Total Commitments Receivable (8) -

Net Administered Commitments by Maturity 84 . -

NB: All commitments are GST inclusive where relevant.

T h is s c h e d u le s h o u ld b e re a d in c o n ju n c tio n w it h th e a c c o m p a n y in g n o te s .

Part Four: Schedule of Administered Items Australian Trade Commission Annual Report 2004-05 77

AUSTRALIAN TRADE COMMISSION

SCHEDULE OF ADMINISTERED ITEMS (CONTINUED)

30 June 2005 30 June 2004 Notes $'000 $'000

ADMINISTERED CONTINGENCIES as at 30 lune 2005

Contingent Liabilities

Claims for damages/costs1 1,358 2,636

Total Contingent Liabilities 1,358 2,636

1 The above estimated contingent liability represents the maximum potential liability in relation to EMDG scheme cases before the Administrative Appeals Tribunal.

This schedule should be read in conjunction with the accompanying notes.

Notes

30 June 2005 $'000 30 June 2004 $'000

ADMINISTERED RECONCILIATION TABLE for the year ended 30 lune 2005

Opening administered assets less administered liabilities as at 1 July 4,739 4,675

Plus: Administered revenues 669 564

Less: Administered expenses (131,268) (150,900)

Administered transfers to/from Australian Government: Appropriation transfers from ORA 131,089 150,400

Closing administered assets less administered liabilities 5,229 4,739

78 Australian Trade Commission Annual Report 2004-05

N O TE 1: S U M M A R Y OF S I G N I F I C A N T A C C O U N T I N G POLICIES

1.1 BASIS OF A C C O U N TIN G

The financial statements which are required by clause 1 (b) of schedule 1 to the Commonwealth Authorities and Companies Act 1997 are a general purpose financial report.

The statements have been prepared in accordance with:

► Finance Minister's Orders (or FMOs, being the Commonwealth Authorities and Companies (Financial Statements) Orders for reporting periods ending on or after 30 June 2005);

► Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and

► Urgent Issues Group Abstracts.

The Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits w ill flow or the Commission is presently obliged to sacrifice economic benefits to other entities in the future (retrospectively) and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets which are unrecognised are reported in the Schedule of Commitments or the Schedule of Contingencies as appropriate.

Revenues and expenses are recognised in the Statement of Financial Performance when and only when the inflow or consumption or loss of future economic benefits has occurred and can be reliably measured.

1.2 CHANGES IN A C C O U N TIN G POLICY

The accounting policies used in the preparation of these financial statements are consistent with those used in 2003-04 except that revaluation of infrastructure, plant and equipment (other than leasehold

improvements) has been undertaken on a fair value basis.

In prior years leasehold assets were disclosed at their gross value together with their accumulated depreciation. These assets are now disclosed at their net value.

1.3 REVENUE

Revenues from Government— output appropriation The full amount of the appropriation for departmental outputs for the year is recognised as revenue.

Other Revenue Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts or other agreements to provide services. The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on

the relevant assets.

Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 79

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

1.4 TRANSACTIONS W ITH THE GOVERNMENT AS OWNER

Equity injections Amounts appropriated which are designated as 'equity injections' are recognised directly in Contributed Equity when they are received.

1.5 EMPLOYEE ENTITLEMENTS

Benefits Liabilities for services rendered by employees are recognised to the extent that they have not been settled at the reporting date.

Liabilities for wages and salaries (including non-monetary benefits) and annual leave are measured at nominal value (including on-costs) at the date when the relevant entitlement is expected to be paid.

Other employee benefits expected to be settled within 12 months of the reporting date are also measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

Leave No provision is made for sick leave, as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is estimated to be less than the annual entitlement for sick leave.

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

The liability for long service leave is estimated using present value techniques, which take account of attrition rates and pay increases through promotion and inflation.

For employees engaged overseas, liabilities for separation entitlements are calculated in accordance with

local labour conditions.

Separation and redundancy Provision is only made for other separation and redundancy benefit payments where the Commission has informed those employees affected of its intention to carry out those terminations.

Superannuation Staff of the Commission, except those engaged overseas, are members of the Commonwealth Superannuation Scheme or the Public Sector Superannuation Scheme. The liability for their superannuation benefits is recognised in the financial statements of the Australian Government, and is settled by the Government in

due course.

The Commission is required to make employer superannuation contributions to the Australian Government at rates determined by an actuary to be sufficient to meet the cost to the Government of the superannuation

entitlements of the Commission's employees.

For employees engaged overseas, the Commission pays employer contributions to meet its superannuation

obligations, which vary according to local employment conditions.

80 Australian Trade Commission Annual Report 2004-05

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

1.6 LEASES

A distinction is made between finance leases— which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases— under which the lessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, an asset is recognised, which is measured at the present value of minimum lease payments at the beginning of the lease term; a liability is recognised at the same time, and measured at the same amount. The discount rate used is the interest rate implicit in the lease. Finance leased assets are amortised over the period of the lease. Future finance lease payments are allocated between the principal component and the interest expense.

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

The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus.

Security deposits in relation to overseas property leases are payable to the Commission on the termination of individual leases. These deposits are classified as current or non-current receivables as appropriate.

Lease incentives taking the form of payments from landlords, subsidised fitout, or rental holidays, are recognised as liabilities. These liabilities are reduced by allocating future lease payments between rental expense and reduction of the liability.

1.7 CASH

Cash includes net cash on hand and at banks, deposits held at call with banks, and investments in money market instruments,

1.8 OTHER FINANCIAL INSTRUMENTS

Investments are measured at nominal amounts. Interest is recognised as it is earned.

Receivables are measured at the nominal amounts due, less any provision for bad and doubtful debts. Provisions are made when collection of the debt is judged to be less rather than more likely.

Trade creditors and accruals are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced), and measured at their nominal amounts, being the amounts at which

they w ill be settled.

Unrecognised Financial Liabilities Contingent liabilities (assets) are not recognised but are disclosed in the relevant Schedule (and notes, where applicable). They may arise from uncertainty as to the existence of a liability (asset), or may represent an existing liability (asset) in respect of which settlement is not probable and/ or the amount cannot be reliably

measured. Remote contingencies are part of this disclosure. A liability (asset) is recognised when its existence is confirmed by a future event, settlement becomes probable, and reliable measurement becomes possible.

1.9 PROPERTY (LAND, BUILDING S A ND INFRASTRUCTURE), PLANT AN D EQUIPMENT

Asset Recognition Threshold Purchases of land and buildings, and infrastructure, plant and equipment, are recognised initially as assets and measured at cost, except for items costing less than $5,000 ($3,500 for computer equipment), which are recognised as expenses (unless they form part of a group of similar items which are significant in total,

in which case the group is recognised as an asset).

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 81

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Revaluations

Land and buildings, infrastructure, plant and equipment are measured at valuation, being revalued with sufficient frequency such that the carrying amount of each asset class is not materially different, as at reporting date, from its fair value.

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

Asset class Fair value measured at:

Land Market selling price

Buildings Market selling price

Infrastructure plant and equipment

— Leasehold improvements Depreciated replacement cost

— Plant and equipment Market selling price

Assets which are surplus to requirements are measured at their net realisable value. At 30 June 2005, the Commission had no surplus assets (30 June 2004: $nil).

The financial effect of the change in measurement policy for other infrastructure, plant and equipment relates to those assets measured at fair value for the first time in the current period. The amount of the revaluation is $1,593,000, which has been credited to the asset revaluation reserve. The financial effect of the change in measurement basis, which accounts for part of this revaluation increment, has not been

able to be quantified.

Land and building assets are revalued every year. Plant and equipment assets are revalued at least every three years. Leasehold improvements were revalued at 30 June 2005.

Asset class Last revaluation: Next revaluation due:

Land and buildings 30 June 2005 30 June 2006

Infrastructure plant and equipment — Leasehold improvements 30 June 2005 30 lu n e 2008

— Plant and equipment 1 July 2004 30 June 2007

Depreciation

Depreciable property, and infrastructure, plant and equipment, assets are depreciated to their estimated residual values over their estimated useful lives to the Commission using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives) and methods are reviewed at each reporting date, and necessary adjustments are made in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued.

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

2005 2004

Buildings on freehold land 40 years 40 years

Plant and equipment 3 to 10 years 3 to 10 years

82 Australian Trade Commission Annual Report 2004-05

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

1.10 IMPAIRMENT OF PROPERTY, AND INFRASTRUCTURE, PLANT AND EQUIPMENT

The Commission's property and infrastructure, plant and equipment assets are measured at fair value and as such, are not subject to impairment testing.

1.11 INTANGIBLES

The Commission's intangibles comprise internally developed and purchased software for internal use.

These assets are measured at cost.

Software development projects in progress, where future economic benefits are assessed as probable, are recognised progressively as assets and measured at cost. Amortisation begins when the asset is first put into use or held ready for use.

Intangibles are amortised on a straight-line basis over their anticipated useful lives to the Commission.

The useful lives of the Commission's software is 3 to 8 years (2003-04: 3 to 8 years).

All software assets were assessed for indications of impairment as at 30 June 2005. No software was determined to be impaired at 30 June 2005 (30 June 2004: $niI).

1.12 TAXATION/COMPETITIVE NEUTRALITY

The Australian Trade Commission Act 1985 provides the Commission with a general exemption from Australian taxation. The Commission is required to comply with specific taxation legislation where the exemption does not apply, the most significant being Fringe Benefits Tax (which is classified as employee expenses) and the Goods and Services Tax (GST) (which is accounted for in accordance with UIG 31 Accounting for the Goods and Services Tax).

The Commission also pays various in-country taxes applicable to its overseas operations.

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

> except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

► except for receivables and payables.

The Commission has not been required to make any competitive neutrality payments.

1.13 FOREIGN CURRENCY

Transactions denominated in a foreign currency are translated to Australian currency using the exchange rate at the date of the transaction. At balance date, foreign currency receivables and payables are translated at the exchange rates current as at that date. All exchange gains and losses are recognised as revenues or

expenses, as appropriate.

The Commission's operational budget funding for overseas activities is adjusted for any realised foreign exchange gains or losses against rates set at budget time by the Department of Finance and Administration. Adjustments are generally made to the appropriation in the current or following year or, by arrangement, settled directly with the Department of Finance and Administration in the form of a return of capital in the

current year.

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 83

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

1.14 INSURANCE

The Commission has adopted a conservative approach to the management of its exposure to insurable risks through the purchase of commercial insurance. Insurance policies cover risks to Commission property in Australia and overseas, together with public liability, workers' compensation and other relevant risks.

1.15 COMPARATIVE FIGURES

Comparative figures have been adjusted to conform to changes in presentation in these financial statements

where required.

1.16 RO U N D IN G

Amounts have been rounded to the nearest $1,000 except in relation to the following:

► remuneration of directors (Note 12);

► remuneration of auditors (Note 1 5); and

► remuneration of managers (Note 14).

1.17 REPORTING OF ADMINISTERED ACTIVITIES

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of

Administered Items and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as above, including the application to the greatest extent possible of Australian Accounting Standards, Accounting Interpretations, and UIG Abstracts.

Administered Cash Transfers to and from Official Public Account Revenue collected by the Commission for use by the Government rather than the Commission is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Administration. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Commission on behalf of the Government, and are reported as such in the Statement of Cash Flows in the Schedule of Administered Items and in the Administered Reconciliation Table. Thus the Schedule of Administered Items largely reflects the Government's transactions, through the Commission, with parties outside the Government.

Grants and loans The Commission, on behalf of the Government, administers certain grants and loans relating to the Export Market Development Grants Scheme (EMDG), the International Trade Enhancement Scheme (ITES) and the International Agricultural Marketing Program (IAMP). Loans are measured at the balance of principal outstanding. Provision is made for bad and doubtful loans where collection of the loan or part thereof is judged to be less rather than more likely. Interest is credited to revenue as it accrues.

Export Market Development Grants are brought to account when deemed payable in accordance with the

provisions of the Export Market Development Grants Act 7 997.

84 Australian Trade Commission Annual Report 2004-05

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NO T E 2: A D O P T I O N O F AASB E Q U I V A L E N T S T O I N T E R N A T I O N A L

F I N A N C I A L R E P O R T I N G S T A N D A R D S F R O M 2 0 0 5 - 2 0 0 6

Management of the transition to Australian Equivalents to International Reporting Standards (AEIFRS).

The Commission has taken the following steps for the preparation towards the implementation of AEIFRS:

► The Commission's Audit Committee is tasked with oversight of the transition to and implementation of AEIFRS. The Chief Finance and Information Officer is formally responsible for the project and reports regularly to the Board Audit Committee on progress.

► The following key steps w ill or have been undertaken.

— All major accounting policy differences between current AASB standards and AEIFRS were identified by 30 June 2004

— System changes necessary to be able to report under the AEIFRS, including those necessary to capture data under both sets of rules for 2004-05 were completed during July 2004. This included the testing and implementation of those changes

— A transitional balance sheet as at 1 July 2004 under AEIFRS was completed and presented to the Audit Committee on 1 September 2004

— An AEIFRS compliant balance sheet as at 30 June 2005 w ill be prepared following the adoption of the 2004-05 statutory financial reports; and

— The 2004-05 Balance Sheet under AEIFRS w ill be reported to the Department of Finance and Administration in line with its reporting deadlines.

► The Commission's normal risk management processes are being applied to the project.

Major changes in accounting policy Changes in accounting policies under AEIFRS are applied retrospectively i.e. as if the new policy had always applied except in relation to the exemptions available and prohibitions under AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standard. This means that an AEIFRS compliant balance sheet has to be prepared as at 1 July 2004. This w ill enable the 2005-06 financial statements to

report comparatives under AEIFRS. .

Changes to major accounting policies are discussed in the following paragraphs.

Management's review of the quantitative impacts of AEIFRS represents the best estimates of the impacts of the changes as at reporting date. The actual effects of the impacts of AEIFRS may differ from these estimates due to:

► continuing review of the impacts of AEIFRS on the Commission's operations;

► potential amendments to the AEIFRS and AEIFRS Interpretations; and

► emerging interpretation as to the accepted practice in the application of AEIFRS and the

AEIFRS Interpretations.

Property, plant and equipment It is expected that the 2005-06 Finance Minister's Orders w ill continue to require property plant and

equipment assets to be measured at fair value in 2005-06.

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 85

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

The Commission's real property and leasehold improvements were revalued to fair value as at 30 June 2004. The remainder of infrastructure, plant and equipment assets has been revalued using the same methodology in 2004-05.

The revaluation led to a decrease in the value of infrastructure, plant and equipment of $155,000.

Recognition of leasehold improvements

Several office fit outs which the Commission obtained free of charge have not previously been recognised. AASB 116 specifically requires (for not-for-profit entities) the recognition of such assets and their measurement at fair value. Their aggregate fair value (as determined by the Commission's independent valuer) is $ 1.158 million.

Intangible Assets

The Commission currently measures internally developed software assets at cost. The carrying amounts include amounts that were originally measured at deprival valuation and subsequently deemed to be cost under transitional provisions available on the introduction of AAS 38 Revaluation of Non-current Assets in 2000-01 and AASB 1041 of the same title in 2001-02.

The AEIFRS standard on Intangibles does not permit intangibles to be measured at valuation unless there is an active market for the intangible. The Commission's internally developed software is specific to the needs of the Commission and is not traded. Accordingly, the Commission w ill derecognise the revaluation

component of the carrying amount of these assets on adoption of AEIFRS.

The derecognition of software assets led to a decrease in the book value of intangible assets by $530,000.

Impairment of Intangibles and Property, Plant and Equipment The Commissions's current policy on impairment of non-current assets is at Notes 1.10 and 1.11.

Under AEIFRS these assets will be subject to assessment for impairment and, if there are indications of impairment, measurement of any impairment (impairment measurement must also be done, irrespective of any indications of impairment, for intangible assets not yet available for use). The impairment test is that the carrying amount of an asset must not exceed the greater of (a) its fair value less costs to sell and (b) its value in use. 'Value in use' is the net present value of net cash inflows for for-profit assets of the Commission and depreciated replacement cost for other assets that would be replaced if the Commission were deprived of them.

An impairment assessment of the Commission's assets has indicated that no adjustments w ill be required.

Employment Benefits It is expected that the 2005-06 Finance Minister's Orders w ill allow the continued use of the Shorthand Method (as defined in the Orders but unchanged from the method used by the Commission in previous years) for the calculation of long service leave expense. Accordingly it is anticipated that no adjustments w ill be required.

AEIFRS also require that annual leave that is not expected to be taken within 12 months of balance date is to be discounted. After assessing the staff leave profile, the Commission does not expect that any material amounts of the annual leave balance w ill not be taken in the next 12 months. Consequently, there are no adjustments for non-current annual leave.

Investment Property

The Commission owns two properties, valued at $7.968m, which are leased or expected to be leased to third parties. Investment property is separately classified in the Statement of Financial Position in accordance with AASB 140.

86 Australian Trade Commission Annual Report 2004-05

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Administered Items

Assessment of the administered assets and liabilities of the Commission indicate that there are no adjustments due to the transition to AEIFRS.

Financial Instruments

AEIFRS include an option for entities not to restate comparative information in respect of financial instruments in the first AEIFRS report. It is expected that the 2005.06 Finance Minister's Orders w ill require entities to use this option. Therefore, the amounts for financial instruments presented in the Commission's 2004-05 financial statements are not expected to change as a result of the adoption of AEIFRS.

The Commission will be required by AEIFRS to review the carrying amounts of financial instruments at 1 July 2005 to ensure they align with the accounting policies required by AEIFRS. It is expected that the carrying amounts of financial instruments held by the Commission w ill not materially change as a result of this process.

Reconciliation of Impacts— Australian Generally Accepted Accounting Principles (AGAAP) to AEIFRS

30 June 2005* 30 June 2004 $'000 $'000

Reconciliation of the Commission's Equity Total Equity under AGAAP 75,151 72,431

Adjustments (details below) 498 473

Total Equity under AEIFRS 75,649 72,904

Reconciliation of the Commission's Accumulated Results Total Accumulated Results under AGAAP (8,021) (2,566)

Adjustments:

Assets— Carrying Value 628 628

Depreciation and amortisation 261 -

Write down of assets (236) -

Total Accumulated Results under AEIFRS (7,368) (1,938)

Reconciliation of the Commission's Reserves

Total Departmental Reserves under AGAAP 69,929 67,882

Adjustment:

Asset Revaluation Reserve (155) (155)

Total Departmental Reserves under AEIFRS 69,774 67,727

Reconciliation of the Commissions Contributed Equity

Total Contributed Equity under AGAAP 13,243 7,115

Adjustments - -

Total Contributed Equity under AEIFRS 13,243 7,115

Reconciliation of operating deficit from ordinary activities for the year ended 30 June 2005

Operating deficit under AGAAP (5,455) 312

Adjustments:

Depreciation and amortisation 261 -

Write down of assets (236) -

Operating deficit under AEIFRS (5,430) 312

* 3 0 June 2 0 0 5 to ta l re p re s e n ts th e a c c u m u la te d im p a c ts o f A E IF R S f r o m th e d a te o f tr a n s itio n

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 87

A U S TR A LIA N TRADE C O M M IS S IO N

NO T ES T O A N D F O R M I N G PART O F T H E F I N A N C I A L STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 3: E C O N O M I C D E P E N D E N C Y

The Commission is dependent on appropriations from the Parliament of the Commonwealth to carry out its normal activities.

N O T E 4: O P E R A T I N G REV ENUES 30 June 2005 30 June 2004 $'000 $'000

NOTE 4A: REVENUES FROM GOVERNMENT Appropriations for outputs 155,136 158,548

Total revenues from government 155,136 158,548

NOTE 4B: SALE OF GOODS AND SERVICES

Services— Government (related entities) 8,109 7,113

Services— Non-Government (external entities) 17,251 16,518

Services 25,360 23,631

Total sales of goods and services 25,360 23,631

NOTE 4C: INTEREST REVENUE

Interest on deposits and investments 2,533 2,712

Total interest revenue 2,533 2,712

NOTE 4D: NET GAINS FROM DISPOSAL OF NON-CURRENT ASSETS

Land and buildings:

Proceeds from disposal 464 -

Net book value of assets disposed (517) -

Net loss from disposal of land and buildings (53)

Infrastructure, plant and equipment:

Proceeds from disposal 468 712

Net book value of assets disposed (403) (828)

Net gain / (loss) from disposal of infrastructure, plant and equipment 65 (116)

Intangibles:

Net book value of assets disposed (7) -

Net loss from disposal of intangibles (7) -

Total proceeds from disposals 932 712

Total value of assets disposed (927) (828)

Total net gain / (loss) from disposal of assets 5 (116)

NOTE 4E: OTHER REVENUES Property rentals 517 867

Other 3,269 1,844

Total other revenues 3,786 2,711

88 Australian Trade Commission Annual Report 2004-05

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 5: O P E R A T I N G EXPENSES

30 June 2005 $'000 30 June 2004 $'000

NOTE 5A: EMPLOYEE EXPENSES

Wages and salaries Superannuation

Fringe Benefits Tax Separation and redundancies

82,891 4,396 2,040 1,462

78,834

4,395 2,392 2,454

Total employee expenses 90,789 88,075

NOTE 5B: SUPPLIER EXPENSES

Supply of goods and services 66,639 58,280

Operating lease rentals 18,314 24,082

Other supplier expenses 544 314

Total supplier expenses 85,497 82,676

NOTE 5C: DEPRECIATION AND AMORTISATION

(i) Depreciation Other Infrastructure, plant and equipment 6,420 6,399

Buildings 412 395

Total Depreciation 6,832 6,794

(ii) Amortisation

Intangibles 3,462 4,625

Total Amortisation 3,462 4,625

Total depreciation and amortisation 10,294 11,419

NOTE 5D: WRITE D O W N OF ASSETS

Financial assets Bad and doubtful debts expense 19 10

Non-financial assets

Infrastructure, plant & equipment 396

Total write-down of assets 19 406

NOTE 5E: PROGRAMS

Tradestart 5,432 4,925

Total programs expenses 5,432 4,925

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 89

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 6: F I N A N C I A L ASSETS

30 June 2005 30 June 2004 $'000 $ '0 0 0

NOTE 6A: RECEIVABLES Goods and services 6,049 7,969

Less: Provision for doubtful debts (397) (437)

5,652 7,532

GST receivable from the Australian Taxation Office 915 957

Interest receivable 119 147

Total receivables (net) 6,686 8,636

Receivables are represented by:

Current 5,340 5,009

Non-current 1,346 3,627

Total Receivables (net) 6,686 8,636

Receivables (gross) are aged as follows:

Not overdue Overdue by:

6,158 7,918

Less than 30 days 435 409

30 to 60 days 38 300

61 to 90 days 34 250

More than 90 days 418 196

925 1,155

Total receivables (gross) 7,083 9,073

NOTE 6B: INVESTMENTS Insurance retrospective rating policy 6,126 5,895

Total investments 6,126 5,895

All investments are current assets.

90 Australian Trade Commission Annual Report 2004-05

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 7: N O N - F I N A N C I A L ASSETS

30 June 2005 30 June 2004 $'000 $'000

NOTE 7 A: LAND AND BUILDINGS

Land

— at 2004 Board Members' valuation (fair value)

— at 2005 independent valuation (fair value) 22,573

20,528

Total land 22,573 20,528

Buildings on land

— at 2004 Board Members' valuation 14,876

— at 2005 independent valuation (fair value) 12,448 -

Total buildings 12,448 14,876

Total Land and Buildings (non-current) 35,021 35,404

2005 independent valuation was conducted by independent qualified valuer CB Richard Ellis Pty Ltd.

NOTE 7B: INFRASTRUCTURE, PLANT AND EQUIPMENT

Infrastructure, plant and equipment — at cost 4,930 15,338

— Accumulated depreciation (489) (7,582)

4,441 7,756

— at 2004 Board Members' valuation (fair value) 29,773

— Accumulated depreciation - (10,845)

- 18,928

— at 2000 Board Members' valuation (deprival value) - 1,648

— Accumulated depreciation - (1,621)

- 27

— at 2005 independent valuation (fair value) 18,877 . -

18,877 -

— at 2005 Board Members valuation (fair value) 5,305 -

— Accumulated depreciation (1,826) -

3,479 -

Total Infrastructure, Plant and Equipment (non-current) 26,797 26,711

2005 independent valuation relates to leasehold improvements, and was conducted by independent

qualified valuer Colliers Pty Ltd.

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 91

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 7C: ANALYSIS OF PROPERTY, AND INFRASTRUCTURE, PLANT AND EQUIPMENT

TABLE A — Reconciliation of the opening and closing balances of property, and infrastructure, plant and equipment

Land & Buildings

Land Buildings — Total

Item $'000 $'000 $'000

Other

Infrastructure Plant & Equipment TOTAL $'000 $'000

As at 1 July 2004 Gross book value 20,528 14,876 35,404

Accumulated depreciation/amortisation - -

46,759 82,163

(20,048) (20,048)

Opening Net Book Value 20,528 14,876 35,404 26,711 62,115

Additions by purchase - 93 93 5,313 5,406

Net revaluation increment/(decrement) 2,045 (1,591) 454

Depreciation/amortisation expense - (412) (412)

1,593 2,047

(6,420) (6,832)

Disposals Other disposals - (518) (518) (400) (918)

As at 30 June 2005 Gross book value 22,573 12,448 35,021

Accumulated depreciation/amortisation - - -

29,112 64,133

(2,315) (2,315)

Closing Net Book Value 22,573 12,448 35,021 26,797 61,818

Land & Buildings

Total $'000

35.021

35.021

35.404

35.404

Other

Infrastructure Plant & Equipment

$'000

24,182 (1,826)

22,356

31,421

(12,466)

18,955

TOTAL

$'000

59,773 0 ,826)

57,947

66,825

(12,466)

54,359

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

30 June 2005 $'000

30 June 2004

$ '0 0 0

NOTE 7D: INTANGIBLES Computer software:

Internally developed— in progress at cost (non-current) 2,027 1,414

2,027 1,414

Internally developed— in use at cost (non-current) — Accumulated amortisation

15,445 (14,541)

14,971 (12,707)

904 2,264

Externally acquired— at cost (non-current) — Accumulated amortisation

6,380 (4,237)

4,674

(2,706)

2,143 1,968

Total intangibles (non-current) 5,074 5,646

TABLE A — Reconciliation of the opening and closing balances of intangibles

Item

Computer Software $'000

Intangibles — Total $'000

As at 1 July 2004 Gross book value Accumulated depreciation/amortisation

21,059 (15,413)

21,059 (15,413)

Net book value 5,646 5,646

Additions By purchase 2,897 2,897

Depreciation/amortisation expense (3,462) (3,462)

Disposals

Other disposals (7) (7)

As at 30 June 2005 Gross book value Accumulated depreciation/amortisation

23,852 (18,778)

23,852 (18,778)

Net book value 5,074 5,074

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

30 June 2005 30 June 2004 $'000 $ '0 0 0

NOTE 7E: OTHER N O N -FIN A N C IA L ASSETS

Prepayments property leases 1,153 1,174

Prepayments other 2,458 2,288

Total other non-financial assets 3,611 3,462

Other non-financial assets are current assets.

N O T E 8: P R O V I S I O N S

NOTE 8A: EMPLOYEE PROVISIONS

Salaries and wages 352 917

Leave 14,474 14,456

Superannuation - 1,339

Other overseas employee entitlements 5,107 6,406

Aggregate employee entitlement liability 19,933 23,118

Aggregate employee benefit liability and related on-costs 19,933 23,118

Employee provisions are represented by:

Current 8,038 8,735

Non-current 11,895 14,383

19,933 23,118

N O T E 9: PAYABLES

NOTE 9A: SUPPLIER PAYABLES

Trade creditors 3,812 1,181

Other creditors 5,613 6,871

Total supplier payables 9,425 8,052

Supplier payables are represented by:

Current 6,988 4,924

Non-current 2,437 3,128

Total supplier payables 9,425 8,052

NOTE 9B: OTHER PAYABLES

Unearned revenue 3,310 2,211

Lease incentives 2,865 2,896

Employees 3,132 2,925

Total other payables 9,307 8,032

Other payables are represented by:

Current 6,812 5,566

Non-current 2,495 2,466

Total other payables 9,307 8,032

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 95

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 10: E Q U I T Y

NOTE 10A: ANALYSIS OF EQUITY Accumulated Asset Revaluation General Total Contributed TOTAL

Results Reserves Reserve Reserves Equity EQUITY

Item

2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004

$'000 $ '0 0 0 $'000 $ '0 0 0 $'000 $ '0 0 0 $'000 $ '0 0 0 $'000 $ '0 0 0 $'000 $ '0 0 0

Opening balance as at 1 July Net surplus/(deficit) Net revaluation increment

(2,566) (2,878) 2 5 ,5 7 5 19,472 4 2 ,3 0 7 52,037 67,882 71,509 7,115 6,418 72,431 75,049

(5,455) 312 - - - - - - - - (5,455) 312

- 2 ,0 4 7 6,103 - - 2,047 6,103 - - 2,047 6,103

Transactions with owner:

Distributions to owner:

Contributions by owner:

Appropriations (equity injections) - - - - 6,128 697 6,128 697

Repayment to the Australian Government Closing balance as at 30 June

/.ess:outside equity interests Total equity attributable to the

- - - - - (9,730) - (9,730) - - - (9,730)

(8,021) (2,566) 27,622 25,575 4 2 ,3 0 7 42,307 69,929 67,882 13,243 7,115 75,151 72,431

Australian Government (8,021) (2,566) 27,622 25,575 4 2 ,3 0 7 42,307 69,929 67,882 13,243 7,115 75,151 72,431

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 11: CASH F L O W R E C O N C I L I A T I O N

30 June 2005 30 June 2004

$'000 $'000

NOTE 11 A: RECONCILIATION OF OPERATING SURPLUS TO NET CASH FROM OPERATING ACTIVITIES

Reconciliation of operating surplus to net cash from operating activities:

Operating surplus/Jdeficit) from ordinary activities (5,455) 312

Non-Cash Items

Depreciation and amortisation 10,294 11,419

Write down of financial assets 19 10

Gain on disposal of assets (5) -

Net loss from disposal of non-current assets - 513

4,853 12,254

Changes in Assets and Liabilities (Increase) / decrease in net receivables 3,062 (977)

(Increase) / decrease in investments (231) 2,738

(Increase) in prepayments (149) (504)

(Decrease) in employee payables and provisions (2,981) (4,117)

Increase in supplier and other payables 1,335 2,815

1,036 (45)

Net cash from operating activities 5,889 12,209

NOTE 11B: RECONCILIATION OF CASH Cash balance comprises:

Cash at bank (325) (1,438)

Cash on hand 65 62

Cash on deposit 30,761 27,255

Total cash 30,501 25,879

All cash is classified as a current asset.

Balance of cash as at 30 June shown in the Statement of Cash Flows 30,501 25,879

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 97

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 12: D IR E C T O R R E M U N E R A T I O N 2005 2004

The Directors' remuneration fell within the following bands: $ Nil to $10 000 5 5

$20 000 to $29 999 4 4

$30 000 to $39 999 2 2

$40 000 to $49 999 1 1

$60 000 to $69 999 1 1

$350 000 to $359 999 - 1

$370 000 to $379 999 1 -

Total number of directors of the Commission 14 14

$ $

Total remuneration received or due and receivable by directors of the Commission 676,745 657,203

98 Australian Trade Commission Annual Report 2004-05

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FORTHE YEAR ENDED 30 JUNE 2005

N O T E 13: RELATED PARTY D IS C L O S U R E S

Directors of the Commission

The Directors of the Commission during the year were:

N R Adler AO

K J Down

P O'Byrne

A Calvert AC

A Armour

M Paterson

M Boydell

E Doyle

S Bratton

D Morgan

P Scully-Power AM, DSM

C Anderson

M L' Estrange

K Sanderson

(Chairman)

(Deputy Chairman)

(Managing Director)

(Government Member to 5 January 2005)

(Member, ex officio)

(Government Member)

(Member)

(Member to 20 April 2005)

(Member)

(Member)

(Member)

(Member)

(Government Member from 14 February 2005)

(Member from 10 May 2005)

The aggregate remuneration of Directors is disclosed in Note 12.

Transactions with Directors or Director related entities

Pusuant to section 22 of the Australian Trade Commission Act 1985, appropriate disclosures were made, and the Directors involved in the transactions disclosed below took no part in any relevant decisions.

► Mr K J Down is Deputy Chairman and Managing Director of Viking Industries Ltd. This company received an Export Market Development Grant of $9,736.

► Mr M Paterson is a Board Member of Export Finance and Insurance Corporation, Australian Research Council and Tourism Australia.

► Mr P O'Byrne, Mr A Armour, Dr A Calvert and Mr M L'Estrange are also Board Members of the Export Finance and Insurance Corporation.

Other transactions, if any, entered into during the year with directors of the Commission and their director- related entities were within normal employee, customer and supplier relationships, on terms and conditions no more favourable than those available to other employees, customers or suppliers. They include provision

of professional services and the sale of goods.

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 99

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 14: R E M U N E R A T I O N OF M A N A G E R S

2005 2004

The managers' remuneration fell within the following bands: $110 000 to $119 999 1

$120 000 to $129 999 - 1

$130 000 to $139 999 1 -

$150 000 to $159 999 - 1

$170 000 to $179 999 - 1

$180 000 to $189 999 1 4

$190 000 to $199 999 - 1

$200 000 to $209 999 3 -

$210 000 to $219 999 2 2

$220 000 to $229 999 3 -

$250 000 to $259 999 1 -

$330 000 to $339 999 - 1

$350 000 to $359 999 - 1

Total number of managers of the Commission 12 12

$ $

Aggregate amount of total remuneration of managers shown above. 2,412,356 2,524,176

The aggregate amount of separation and redundancy/termination benefit payments during the year to managers shown above. 334,538

The managers remuneration includes all officers concerned with or taking part in the management of the Commission, including certain officers based overseas, and excludes the Managing Director whose remuneration is disclosed in Note 12 Directors' Remuneration. Remuneration includes all cash remuneration, superannuation, accrued entitlements and any non-cash benefits (including applicable Fringe

Benefits Tax), based on cost to the entity. Benefits do not include allowances or equivalents attached to positions overseas, which are an operational cost of maintaining individuals in those positions.

N O T E 15: R E M U N E R A T I O N OF A U D I T O R S

2005

$

2004

$

Remuneration to the Auditor-General for auditing the financial statements for the reporting period.

The fair value of audit services provided was: 150,000 136,000

No other chargeable services were provided by the Auditor-General during the reporting period.

N O T E 16: STAFF AT R E P O R T I N G DATE

2005 2004

No. No.

The number of full time equivalent staff employed by the Commission at reporting date was: 1,005 1,008

100 Australian Trade Commission Annual Report 2004-05

Weighted Average

Effective Interest Rate

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 17B: NET FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

2005 2004

Notes

Total

Carrying Amount

$'000

Aggregate Net Fair Value

$'000

Total

Carrying Amount

$ '0 0 0

Aggregate Net Fair Value

$ '0 0 0

Financial Assets

Cash at bank 11 B 30,501 30,501 25,879 25,879

Receivables for goods and services 6A 5,652 5,652 7,532 7,532

Investments 6 B 6,126 6,126 5,895 5,895

Other receivables 6A 1,034 1,034 1,104 1,104

Total Financial Assets 43,313 43,313 40,410 40,410

Financial Liabilities

Trade and other creditors 9A 9,425 9,425 8,052 8,052

Other payables 9B 9,307 9,307 8,032 8,032

Total Financial Liabilities (Recognised) 18,732 18,732 1 6,084 16,084

Financial Liabilities (Unrecognised)

Indemnities - - 81 81

Total Financial Liabilities (Unrecognised) - - 81 81

Financial assets

The net fair values of cash (including short term deposits) and non-interest bearing monetary financial

assets approximate their carrying amounts.

Financial liabilities

The net fair values for trade and other creditors, other payables, and indemnities approximate their

carrying amounts.

NOTE 17C: CREDIT RISK EXPOSURES

The Commission's maximum exposures to credit risk at reporting date in relation to each class of

recognised financial assets is the carrying amount of those assets as indicated above.

The Commission has no significant exposures to any concentrations of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or other security.

102 Australian Trade Commission Annual Report 2004-05

A U S TR A LIA N TRADE C O M M IS S IO N

NO T E S T O A N D F O R M I N G PART O F T H E F I N A N C I A L STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 18: A D M I N I S T E R E D ITEMS 30 June 2005 30 June 2004 $'000 $'000

NOTE 18A: REVENUES ADMINISTERED ON BEHALF OF GOVERNMENT for the year ended 30 June 2005

Non-taxation revenues

Goods and services Rendering of services— external entities 8 43

Total goods and services 8 43

Interest Loans 25 40

Total interest 25 40

Write back of loans provisions 621 418

Other 15 63

Total other revenue 636 481

Total Revenues Administered on Behalf of Government 669 564

NOTE 18B: EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

for the year ended 30 June 2005

Employees

Wages and salaries 4,708 4,532

Superannuation 663 619

Fringe benefits tax 16 48

Total employees 5,387 5,199

Suppliers

Goods from External entities 184 148

Services from External entities 1,320 1,103

Operating lease rentals 508 619

Total suppliers 2,012 1,870

EMDG Grants EMDG Grants 123,868 143,831

Total other expenses 123,868 143,831

Total Expenses Administered on Behalf of Government 131,267 150,900

Part Four: Notes to and forming part of the Financial Statements Australian Trade Commission Annual Report 2004-05 103

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

30 June 2005 30 June 2004 $'000 $'000

NOTE 18C: ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT as at 30 June 2005

Financial Assets

Cash Cash on deposit 7,264 6,562

Total cash 7,264 6,562

Receivables Loans Private sector 1,629 2,487

Less: Provision for doubtful loans 0,564) (2,359)

65 128

GST receivable from the Australian Taxation Office 27 22

Total receivables (net) 92 150

Receivables (gross) are aged as follows: Not overdue 1,656 2,509

Total receivables (gross) 1,656 2,509

The provision for doubtful debts is aged as follows: Not overdue 1,564 2,359

Total provision for doubtful debts 1,564 2,359

Accrued revenue Other 5

Total financial assets 7,361 6,712

Total Assets Administered on Behalf of Government 7,361 6,712

NOTE 18D: LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

as at 30 June 2005

Provisions

Employees Leave 1,907 1,749

Total employee provisions 1,907 1,749

Payables

Suppliers Trade creditors 113 46

Total suppliers 113 46

Other payables GST payable to ATO - 2

Employee 111 177

Total other payables 111 179

Total payables 224 225

Total Liabilities Administered on Behalf of Government 2,131 1,974

104 Australian Trade Commission Annual Report 2004-05

A U S T R A L I A N TRADE C O M M I S S I O N

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 18E: ADMINISTERED FINANCIAL INSTRUMENTS

a) Administered Interest Rate Risk

Fixed Interest Rate Maturing In Weighted Average

Floating

Financial Instrument Notes Interest Rate 1 Year or Less 1 to 5 Years > 5 Years

Non-Interest Effective Interest

Bearing Total Rate

2005 2004 2005 2004 2005 2004 2005 2004

$ '0 0 0 $ '0 0 0 $ '0 0 0 $ '0 00 $ '0 0 0 $ '0 0 0 $ '0 0 0 $'0 00

2005 2004 2005 2004 2005 2004

$ '0 0 0 $ '0 0 0 $ '0 0 0 $ '0 0 0 % %

Financial Assets Cash 18C - - 7,264 6,562 - - -

Other receivables 18C - - - - - - - -

Accrued revenue 18C - - - - - - -

7,264 6,562 5.67 5.26

92 150 92 150

5 - 5 -

Total - - 7,264 6,562 - - - 97 150 7,361 6,712

Total Assets 7,361 6,712

Financial Liabilities Suppliers and other payables 18D - - - - - - 224 224 224 224

Total - - - - - 224 224 224 224

Total Liabilities 2,131 1,974

Liabilities Not Recognised Total Financial Liabilities (Unrecognised) _ _ _ _ _ _ _

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

b) Net Fair Values of Administered Financial Assets and Liabilities

2005 2004

Notes

Total

Carrying Amount

$'000

Aggregate Net Fair Value

$'000

Total

Carrying Amount

$ '0 0 0

Aggregate Net Fai Value

$'0 0 (

Administered Financial Assets

Cash 18C 7,264 7,264 6,562 6,56:

Receivables 18C 92 92 150 1 5(

Accrued revenue 18C 5 5 - -

Total Financial Assets 7,361 7,361 6,712 6,71;

Financial Liabilities (Recognised)

Suppliers and other payables 18D 224 224 224 2 2 '

Total Financial Liabilities (Recognised) 224 224 224 2 2 '

Financial Liabilities (Unrecognised)

Total Financial Liabilities (Unrecognised) - - -

106 Australian Trade Commission Annual Report 2004-05

A U S T R A L I A N T R AD E C O M M I S S I O N

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

N O T E 19: A P P R O P R I A T I O N S

Particulars

Year ended 30 June 2005

Balance carried from previous year

Appropriations Acts 1 and 3

Appropriations Acts 2 and 4

Available for payment of CRF

Cash payments made out of CRF

Balance carried forward to next year

Departmental Outputs Loans Equity

2005 2004 2005 2004 2005 2004

$'000 $'000 $'000 $'000 $'000 $'000

155,727 158,548 - - 2,200 697

(591) - - - 3,928

155.136 158,548 - - 6,128 697

155.136 158,548 - - 6,128 697

Total

2005 2004

$'000 $'000

157,927 159,245

3,337

161.264 159,245

161.264 159,245

This table reports on appropriations made by the Parliament of the Consolidated Revenue Fund (CRF) for payment to the Commission. When received by the Commission, the payments made are legally the money of the Commission and do not represent any balance remaining in the CRF.

N O T E 2 0 : R E P O R T I N G O F O U T C O M E S

NOTE 20A: OUTCOMES OF THE C O M M ISSIO N

The Commission's activities relate predominantly to a single industry segment, namely export facilitation services. It operates through over 80 overseas offices as well as Australia.

Outcome 1: Australians succeeding in international business with widespread community support.

Output 1.1: Awareness Raising— Community commitment to trade and investment; understanding of the Federal Government's export assistance programs and a positive business image of Australia overseas Output 1.2: Government Advice and Coordination— Advice to the Commonwealth Government and coordination of the Commonwealth's export activities Output 1.3: Services and Opportunities— Export and invesment services and opportunities for Australians through a national and global network. Output 1.4: Administered: Grants— Administering Export Market Development Grants for small to medium sized businesses and loans (ITES, IAMP)

104-05

I η

I

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

Outcome 2: Australians informed about and provided access to consular, passport and immigration services in specific locations overseas.

As the Commission is a services organization its outputs are directly related to the time its service staff spend on the provision of services to clients. Services staff record their time according to outputs in a time recording system which crosses time with base salaries of staff to arrive at a direct cost attributable to each output at a post or unit level. These costs are converted to percentages which are then used as drivers in the financial management information system to allocate full costs (that is all direct and indirect costs) to each output.

NOTE 20B: NET COST OF O UTCO M E DELIVERY

Outcome 1 Outcome 2 Total

2005 2004 2005 2004 2005 2004

$'000_______ $'000_______ $'000_______ $'000_______$'000______ $'000

131,267 150,900 - - 131,267 150,900

182,507 178,658 10,695_______ 9,370 193,202 188,028

Total expenses____________________________________________________________ 313,774 329,558 10,695_______ 9,370 324,469 338,928

Administered expenses Departmental expenses

Costs recovered from provision of goods and services to the non-government sector

Administered Departmental_______________________________

Total costs recovered

Other external revenues

Administered Writeback of loan provisions

Interest

Total Administered

Departmental Sale of goods and services to related entities

Interest Revenue from sale of assets Other_____________________________________

Total Departmental_____________________________

Total other external revenues

23 106 -

17,251 16,518 -

17,274 16,624 -

621 418 -

25 40 -

646 458 -

6,297 4,832 1,812

2,533 2,712 -

932 712 -

3,786 2,737 -

13,548 1 0,993_______ 1,812

14 104. 11431 1 R1 1

23 106

17,251 16,518

17,274 16,624

- 621 418

- 25 40

- 646 458

2,281 8,109 7,113

- 2,533 2,712

- 932 712

- 3,786 2,737

2,281______ 15,360______13,274

2 281 16.006 13.732

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 20C: MAJOR CLASSES OF DEPARTMENTAL REVENUES AND EXPENSES BY OUTPUT GROUPS A ND OUTPUTS

Outcome 1

Output Group 1.1 Output Group 1.2 Output Group 1.3________ Total

2005 2004 2005 2004 2005 2004 2005 2004

$'000 $ '0 0 0 $'000 $ '0 0 0 $'000 $ '0 0 0 $'000 $ '0 0 0

Departmental expenses

Employees 8,950 11,377 3,948 5,973 72,865 66,336 85,763 83,686

Suppliers 8,428 10,683 3,718 5,609 68,618 62,290 80,764 78,582

Grants 535 636 236 334 4,360 3,709 5,131 4,679

Depreciation and amortisation 1,015 1,475 448 774 8,262 8,601 9,725 10,850

Write down of assets 2 52 1 28 15 306 18 386

Value of assets disposed 91 107 40 56 744 624 875 787

Foreign Exchange Loss 24 -42 11 -22 196 -247 231 -311

Total operating expenses 19,046 24,288 8,402 12,752 155,059 141,618 182,507 178,658

Funded by:

Revenues from government 22,037 19,159 11,773 11,262 112,744 120,007 146,554 150,428

Sale of goods and services 23,548 21,350 23,548 21,350

Interest 2,533 2,712 2,533 2,712

Revenue from sale of assets 932 712 932 712

Net foreign exchange gains

Other 3,786 2,737 3,786 2,737

Total operating revenues_____________ 22,037 19,159 11,773 11,262 143,543 147,518 177,353 177,939

Outcome 2

Output Group 2.1 Total

2005 2004 2005 2004

$'000 $'000 $'000 $'000

5,026 4,389

4,733 4,121

301 245

570 569

1 2 0

51 41

14 -16

10,695 9,370

90,789 88,075 85,497 82,703 5,432 4,924

10,295 11,419 19 406

926 828

245 -327

193,202 188,028

8,582 8,120 155,136 158,548

1,812 2,281 25,360 23,631

2,533 2,712

932 712

___________________ 3,786 2,737

10,394 10,401 187,747 188,340

AUSTRALIAN TRADE COMMISSION

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005

NOTE 20D: MAJOR CLASSES OF ADMINISTERED REVENUES AND EXPENSES BY OUTCOMES

Administered Revenues

Goods and services

Interest Total Administered Revenues

Administered Expenses

Grants Suppliers

Employees_______________

Total Administered Expenses

123,868 143,831

2,012 1,870

5,387___________ 5,199

131,267_________150,900

Total

2005 2004

$'000 $'000

644 524

25_____________ 40

669 564

123,868 143,831

2,012 1,870

5,387___________ 5,199

131,267_________150,900

Appendix A TradeStart service providers and office locations 112

Appendix B Austrade’s Client Service Charter 114

Appendix C Freedom of information 115

Appendix D Staffing overview 118

Appendix E Financial and staffing resources summary 120

Appendix F Resources for outcomes 121

Appendix G Purchaser/provider arrangements 123

Appendix H EMDG recipients— overview 124

TRADESTART SERVICE P RO VIDER S A N D OFFICE L O C A T IO N S

AT 3 0 JUNE 2 0 0 5

National Australian Electrical and Electronic Manufacturers' Association Australian Interactive Media Industry Association

Australian Capital Territory Australian Business Limited

New South Wales

Australian Business Limited

Australian Industry Group Australian Institute of Export (NSW) Department of State and Regional Development

Dubbo City Development Council

Northern Territory Chamber of Commerce Northern Territory

Queensland Australian Industry Group Central Queensland Area Consultative Committee

Commerce Queensland Department of State Development and Innovation

South Australia Department of Trade and Economic Development Eyre Regional Development Board Limestone Coast Regional Development Board Riverland Development Corporation Upper Spencer Gulf Common Purpose Group

► Brisbane ► Gold Coast

► Sydney

► Canberra

► Mascot ► North Sydney

► Parramatta ► Penrith ► Wollongong

► Sutherland ► Bathurst

► Coffs Harbour ► Gosford ► Nowra ► Tamworth ► Wagga Wagga ► Dubbo

► Alice Springs ► Darwin

► Brisbane ► Emerald ► Brisbane ► Bundaberg ► Cairns ► Gold Coast ► Rockhampton ► Toowoomba

► Adelaide ► Port Lincoln ► Mount Gambier ► Berri

► Whyalla

112 Australian Trade Commission Annual Report 2004-05

Tasmania Department of Economic Development

Tasmanian Chamber of Commerce and Industry

Victoria

Australian Industry Group Australian Institute of Export (Vic)

Department of Innovation, Industry and Regional Development

NIETL/North Link Victorian Employers' Chamber of Commerce and Industry

Western Australia

Department of Industry and Resources Gascoyne Development Commission

Great Southern Development Commission Kimberley Development Commission Mid West Development Commission Small Business Development Corporation South West Development Commission

► Hobart ► Launceston ► Hobart

► Melbourne ► Ballarat ► Bendigo ► Mildura

► Dandenong ► Geelong

► Melbourne North ► Melbourne

► Perth ► Carnarvon ► Albany

► Kununurra ► Geraldton ► Perth

► Bunbury

Appendix A Australian Trade Commission Annual Report 2004-05 113

AU STR A D E'S C L IE N T SERVICE CHARTER

This charter was developed after consultations with our clients and represents our commitment

to improve our service performance. The charter sets out the service standards you can expect from Austrade and outlines how to provide feedback.

Our clients rate our performance against each service standard (stated below) in our annual

Client Satisfaction Improvement Study (CSIS).

Our service values

► Understand your business and work with you in partnership

► Provide advice and information based on experience and networks we have established across Australia and around the world

► Be commercially focused and deliver services that are tailored to your needs

► Be professional and highly motivated to help

your business

► Be flexible and responsive in meeting your particular needs

Our service standards

1. We value the information you give us and w ill

maintain confidentiality

2. We w ill clearly explain our service offerings and

how they can add value to your export efforts

3. Austrade w ill explain any fees and provide you with a written quote before commencing work on your behalf

4. If you contact us we w ill respond within two working days of receipt of your enquiry.

If your business enquiry is more complex we w ill inform you of our progress. Austrade w ill agree with you on time frames, deliverables

and follow-up

5. We w ill keep you informed of major

developments that affect your project

6 . Austrade w ill endeavour to deliver opportunities

that best match your line of business

7. We w ill provide appropriate referrals if

Austrade can not help you

8 . Austrade w ill provide you with clear

information on eligibility, application and assessment process for our Export Market

Development Grants (EMDG) and w ill process your application promptly and efficiently in accordance with the EMDG legislation

Help us to help you

1. Brief us clearly about your products or services and business objectives

2. Allow realistic lead times and keep us informed of your time frames for taking action

3. Let us know how we might improve our services and/or when we have done a good job

Measuring our performance

Austrade w ill review the charter and provide

opportunities for you to comment on your satisfaction with our services through our annual client satisfaction survey and other research.

This w ill allow us to measure the outcomes of our assistance and identify issues and service aspects that are important to you.

Consultation and feedback

We welcome your feedback. Simply call us, write to

us or send us an email. If you have a problem you need resolved please raise it with the staff member concerned or write to our Managing Director.

Austrade GPO Box 5301 Sydney NSW 2001

Australia Email: managing.director@austrade.gov.au

If at any stage you are dissatisfied with our handling of your complaint, you may contact an

office of the Commonwealth Ombudsman and/or the Privacy Commission.

Contact us

For business enquiries you can contact us on 13 28 78 between 9 am and 5.30 pm Australian Eastern Standard Time (AEST) or through our website www.austrade.gov.au.

114 Australian Trade Commission Annual Report 2004-05

F R E E D O M OF I N F O R M A T I O N

This statement is made in accordance with the requirements of Section 8 of the Freedom of Information Act 1982 (FOI Act) and is complete as at 30 June 2005.

ACCESS TO RECORDS

The FOI Act grants a right to access documents in the possession of the Government, subject to a number of exceptions. These include protection of essential public interests and the private and business affairs of people about whom departments and statutory authorities collect and hold

information. In the twelve months ended 30 June 2005, Austrade received four such requests and has met its obligations under the Act. A detailed breakdown of those requests is given in Table 15.

Table 15: Freedom of information requests for the period 1 July 2004 to 30 June 2005

Requests outstanding as at 1 July 2004 0

Requests received 4

Access granted in full 0

Access refused 0

Access refused in part 3

Transferred 0

Withdrawn or lapsed 1

Currently outstanding 0

Appeals to AAT/Ombudsman 1

PROCEDURES AND CONTACT POINTS

Any person seeking access to documents under

the FOI Act must lodge a formal request in writing together with a $30 application fee. The request must clearly identify the document or class of documents to which access is sought, and the

return address of the applicant must be provided.

Requests should be sent to:

The FOI Officer

Legal Services, Business Effectiveness unit Level 2, 25 National Circuit Forrest ACT 2603 Australia

Phone: +61 2 6201 7334 Fax: +61 2 6201 7671

A request for access under the FOI legislation is acknowledged and a decision is made by Austrade's FOI Officer whether to grant access and, if so, whether any fees or charges apply to such application. Such fees and charges may be reduced

or not imposed in instances of financial hardship or general public interest in the release of documents.

Further information regarding access to documents may be directed to Austrade's Business Effectiveness Unit. Austrade also publishes a comprehensive

range of public information at www.austrade.gov.au.

FUNCTIONS AND POWERS

Austrade exercises, or participates in the exercise of, the following functions and decision making powers:

► representing, assisting and promoting the

trading and commercial interests of Australia in foreign countries

► facilitating outward investment in foreign countries

► administering the Export Market Development Grants Act

► acting outside Australia as an agent for other agencies of the Commonwealth in

► assisting Australian citizens travelling and residing overseas.

Appendix C Australian Trade Commission Annual Report 2004-05 115

OUTSIDE PARTICIPATION

Austrade is open to the views of outside organisations and provides opportunities for community representatives to contribute to developing

aspects of its delivery of services to the exporter community through:

► business representation on the Austrade Board

► business representation on Austrade's export advisory panels for the ICT, infrastructure,

mining, food and automotive industries

► Austrade's formal arrangements for consultations with interested bodies on trade-related matters, including the Trade Policy Advisory Council, National Trade Consultations, and various business councils

► programs operated by Austrade's state and territory offices, which assist businesses to deliver their export plans, strengthen links with the exporter community, provide briefings, and organise seminars on trade development issues,

as well as maintain regular consultations, including through theTradeStart network.

Austrade frequently provides individual companies

with briefings on trade and economic developments in relevant countries. In consultation with relevant

business groups, it also organises trade missions where sufficient interest and justification exists.

LIST OF PUBLICATIONS

Introduction to export and general information

Austrade opens the door to a world o f opportunities for your business (March 2005)

New Exporter Development Program (January 2005)

Opening up a World o f Opportunity (December 2004)

Helping take your business to the world (December 2003)

Specialised publications

The Australia-U nited States Free Trade Agreement— In Brief (April 2005)

The Thailand-Australia Free Trade Agreement — In Brief (June 2005)

The Singapore-Australia Free Trade Agreement — In Brief (June 2005)

Australia-U nited States Free Trade Agreement Newsletter Oanuary/February 2005, August 2004 and June 2004; only available online)

Thailand-Australia Free Trade Agreement Newsletter (August 2004 and April 2005; only available online)

Women in Export— A collection o f case studies of successful business women in export (April 2005)

Extend your creative reach through export (February 2005)

From Contacts to Contracts: A guide to successful exporting for the Australian professional services sector (January 2005)

More than 520 business briefs and market profiles are available online.

EM DC publications

Available in hard copy and online:

EMDC— In Brief (March 2005)

EMDC— In Brief (Chinese Language Version) (March 2005)

EMDC— Getting Started (September 2004)

EMDC 2004-05 Application Package (April 2005)

Only available online:

EMDC— Approved Joint Venture Requirements (2005)

EMDC— Approved Body Requirements (2005)

EMDC— Approved Trading House

Requirements (2005)

How the EMDC scheme helps the arts export (2005)

How the EMDC scheme helps the music industry export (2005)

How the EMDC scheme helps event promoters (2005)

How the EMDC scheme helps tourism export (2005)

How the EMDG scheme helps the biotechnology sector export (2005)

How the EMDC scheme helps the information and

communications technology sector export (2005)

How the EMDC scheme helps exporters with e-marketing (2005)

116 Australian Trade Commission Annual Report 2004—05

Publications for sale

How to franchise your business: a guide for Australian entrepreneurs (February 2004) Contact: Franchise Council of Australia Tel: +61 1300 669 030

Expanding Internationally: A guide for Australian franchise systems (February 2004)

Contact: Franchise Council of Australia Tel: +61 1300 669 030

Miscellaneous

Export Update (monthly; available in hard copy and online)

TradeMark (monthly e-newsletter of Australian export success)

Annual Report (previous years)

Austrade and ministerial media releases are available online.

Austrade's Chief Economist has published a number

of articles on trade and economics in the Business Review Weekly, the Australian Financial Review, the

Australian, and various international publications. The Chief Economist also provides analysis on the

DHL Export Barometer — Australia's Export Trends.

These articles are available on Austrade's website www.austrade.gov.au/economistscorner

ADVERTISING AND MARKET RESEARCH

Section 20 of the Political Broadcasting and Political Disclosure Act 1991 inserted Section 311A into the Commonwealth Electoral Act 1918 relating disclosing details in annual reports of departments

and Australian Government authorities of the electoral expenditure (see Table 16.)

Table 16. Austrade advertising and market research expenditure, 2004-05

Advertising agencies $31 177

Market research organisations $243 314

Polling organisations $21 588

Direct mail organisations $199 429

Media advertising organisations $799 997

A p p e n d ix C

S TA FFIN G O V E R V IE W

Figures in the Staffing Overview represent the number of people that were employed by the Commission at 30 June 2005. Figures in the Financial Statements represent the number of full time equivalent staff as at 30 June 2005.

Staffing overview at 30 June 2005

Total employees

Australian-based Overseas-engaged-employees (OEE)

Australian-based staff by employment category3

Full-time Part-time

Senior management

By le ve l

Managing Director

Directors Senior Managers (APL6/APL7)

By g en d e r

Male Female

Gains a n d losses d u rin g 2 0 0 4 - 0 5

Gains

Losses

a In c lu d e s te m p o r a r y s ta ff

b In c lu d e s a tta c h e d a g e n c y s ta ff b u t n o t tr a d e c o n s u lta n ts

c S ta tu to ry a p p o in tm e n t

Austrade Australia-based operative employees by nominal classification, gender and location at 30 June 2005

Australia Australia Overseas Overseas Total

Classification Female Male total Female Male total staff

APL1 48 9 57 57

APL2 74 50 124 1 1 125

APL3 44 68 112 4 5 9 121

APL4 27 44 71 8 17 25 96

APL5 9 24 33 7 7 40

APL6 8 22 30 7 16 23 53

APL7 3 1 4 8 8 12

APL8 2 3 5 4 4 9

MD 1 1 1

Total 215 222 437 20 57 77 514

73 V

9

63

54 19

14 7

476 38

1058

514a

544b

118 Australian Trade Commission Annual Report 2004-05

Austrade operative staff by region/division at 30 June 2005

Region A-Based OEE Total %

Americas 13 106 119 11.25

Analysis and Planning 4 0 4 0.38

Client Services 103 0 103 9.74

Government and Corporate Services 135 0 135 12.76

Europe, Middle East and Africa 22 142 164 15.50

Executive and Board 5 0 5 0.47

Exporter Development 82 0 82 7.75

Finance and Information 77 1 78 7.37

Human Resources 26 0 26 2.46

North East Asia 27 162 189 17.86

South East Asia, South Asia and Pacific 20 133 153 14.46

Total 514 544 1058 100.00

Austrade Australia-based employees by location and gender at 30 June 2005

Location Female Male Total

Australian Capital Territory 68 72 140

New South Wales 84 76 160

Northern Territory 2 1 3

Queensland 8 15 23

South Australia 8 9 17

Tasmania 2 1 3

Victoria 36 35 71

Western Australia 6 11 17

Overseas 21 59 80

Total 235 279 514

Austrade overseas-engaged-employees by region and gender at 30 June 2005

Region Female Male Total

Americas 58 48 106

Europe, Middle East and Africa 91 51 142

Finance and Information 1 1

North East Asia 99 63 162

South East Asia, South Asia and Pacific 84 49 133

Total 333 211 544

Appendix D Australian Trade Commission Annual Report 2004-05 119

F I N A N C I A L A N D ST A F FIN G RESOURCES S U M M A R Y

$('000) and Actual Staff Years

Budget and Additional

Actual Estimates Actual

(2003-04) (2004-05) (2004-05)

Revenue:

Appropriations — Departmental 158 548 155 136 a 155 136 a

— Administered 150 400 134 000 131 089

Total Revenue from Government 308 948 289 136 286 225

Revenue from Other Sources — Departmental 30 094 30 532 32 611

— Administered 564 512 669

Total Resourcing of Outputs before Adjustments 339 606 320 180 319 505

Less Adjustments 9 730 0 0 b

329 876 320 180 319 505

Add: Equity Injection from Government 697 6 128 6 128

Total Resourcing 330 573 326 308 325 633

Average Staffing Level 939 1 052 c 989

N o te : a A s p re s e n te d in 2 0 0 4 - 2 0 0 5 B u d g e t d o c u m e n ta tio n ( M a y 2 0 0 4 $ 1 5 8 .7 0 4 m ) a n d a d ju s te d f o r A d d it io n a l

E s tim a te s fu n d in g ( - ) $ 0 . 1 5 6 m

b C o m p r is e s re p a y m e n t to B u d g e t— r e tu r n o f a p p r o p r ia tio n a ris in g f r o m d iffe re n c e s in fo r e ig n e x c h a n g e rate s

c E s tim a te d to ta l s ta ffin g le v e l as p e r 2 0 0 4 —0 5 P o r tfo lio B u d g e t S ta te m e n ts

120 Australian Trade Commission Annual Report 2004-05

RESOURCES FOR O U T C O M E S

Outcome 1 — Australians succeeding in international business with widespread community support

Actual

Budget1 2004-05

$'000

expenses 2004-05 $'000 Variation2

$'000

Budget3 2005-06 $'000

Price of Departmental Outputs

Output Group 1.1 — Awareness raising— Community commitment to trade and investment;

understanding of the Australian Government's export assistance program and a positive business image of Australia overseas 22 399 19 046 (3 353) 18 944

Output Group 1.2 Government advice and coordination— Advice to the Australian Government and coordination of Australia's export activities 12 168 8 402 (3 766) 13 259

Output Group 1.3 Services and Opportunities: Export and investment services and opportunities for Australians through a national and global network 139 383 155 059 15 676 152 961

Total price of departmental outputs — Output Group 1 173 950 182 507 8 557 185 1 64

Output Group 1.4 Austrade Administered: Grants— Administering Export Market

Development Grants for small to medium sized businesses and loans (ITES, IAMP) 134 000 131 267 2 733 170 400

Total price of departmental outputs and

administered expense— Output Group 1 307 950 313 774 5 824 355 564

Total Revenue from Government (Appropriations) 280 554 277 821 (2 733) 328 515

Revenue from other sources— administered

and departmental 27 908 31 468 3 560 27 369

Total Resourcing for Outcome 1 308 462 309 289 827 355 884

2004-05 2005-06

Average Staffing Level 949 1 053a

a E s tim a te d to ta l s ta ffin g le v e l

1 F u ll-y e a r b u d g e t, in c lu d in g a d d it io n a l e s tim a te s

2 V a r ia tio n e q u a ls b u d g e t m in u s a c tu a l e x p e n s e s

3 B u d g e t p r io r to a d d it io n a l e s tim a te s

Appendix F Australian Trade Commission Annual Report 2004-05 121

Outcome 2 — Australians informed about, and provided access to consular, passport and immigration services in specific locations overseas

Budget1

2004-05 $'000

Actual expenses 2004-05

$'000

Variation2 $'000

Budget3

2005-06 $'000

Price of Departmental Outputs

Output 2.1 — Consular, passport and immigration services 11 718 10 695 (1 023) 10 433

Total price of departmental outputs—

Output Group 2 11 718 10 695 (1 023) 10 433

Total Revenue from Government (Appropriations) 8 582 8 582 0 7 297

Revenue from other sources 3 136 1 812 (1 324) 3 136

Total resourcing for Outcome 2 11 718 10 394 (1 324) 10 433

2004--05 2005-06

Average Staffing Level 40 41 a

a E s tim a te d to ta l s ta ffin g le v e l

1 F u ll-y e a r b u d g e t, in c lu d in g a d d it io n a l e s tim a te s

2 V a r ia tio n e q u a ls b u d g e t m in u s a c tu a l e x p e n s e s

3 B u d g e t p r io r t o a d d itio n a l e s tim a te s

122 Australian Trade Commission Annual Report 2004-05

P U R C H A S E R / P R O V I D E R A R R A N G E M E N T S FOR THE

YEAR E N D E D 30 JUNE 2 0 0 5

P UR CHA SER A R R A N G E M E N T S

In conjunction with a number of Australian

Government departments and agencies, Austrade purchases administrative services from the Department of Foreign Affairs and Trade (DFAT)

under a Service Level Agreement at a number of DFAT-managed overseas posts.

The present three-year Service Level Agreement covers the period 1 September 2004 to 31 August 2007,

P R O V I D E R A R R A N G E M E N T S

During the year in review, Austrade had provider

arrangements with the following agencies:

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY (DAFF)

Wine promotion

Austrade was engaged by the Australian Wine

Export Council (AWEC), a part of the Australian Wine and Brandy Corporation, to develop strategies and undertake marketing and promotion activities

in a number of markets to increase exports of Australian wine.

DEPARTMENT OF FOREIGN AFFAIRS AND TRADE (DFAT)

Consular services

DFAT is responsible for the provision of access to consular and passport services in Australia and overseas. In certain locations overseas, Austrade

manage consulates and honorary consulates for the Australian Government, providing a range of consular assistance, including passport services, notarial acts,

medical evacuations, prison visits and general advice

and assistance to Australians overseas.

DEPARTMENT OF IM M IG R A TIO N AND MULTICULTURAL AND INDIG ENO US AFFAIRS (D IM IA )

Visa services

A small number of Austrade's overseas posts delivered visa services on behalf of DIMIA.

DEPARTMENT OF INDUSTRY, TOURISM

A N D RESOURCES (ITR)

Investment attraction

Under a memorandum of understanding (MOU),

Austrade supported Invest Australia's inward investment role through its overseas network and provided IT services.

DEPARTMENT OF EDUCATION, SCIENCE

A N D TR A IN IN G (DEST)

Education promotion

Australian Education International (AEI) is a part of the Department of Education, Science and Training. During the year, Austrade delivered generic marketing and promotion services on behalf

o f AEI in Europe, Brazil and Dubai.

Δ nnundiv A u s tra lia n Trade C n m m is s in n A n n u a l R e n n rt 9ΠΠ4—Π5 19 9

E M D G RECIPIENTS— O V E R V IE W

Figure 11: EMDG recipients by industry and export earnings, 2003-04 grant year

N o t e : T h e r e w a s a s lig h t

in c r e a s e in t h e n u m b e r o f

s e r v ic e s r e c ip ie n t s in t h e

2 0 0 3 - 0 4 g r a n t y e a r as a

p e r c e n ta g e o f t o t a l r e c ip ie n t s .

S o u rc e : E M D G d a ta b a s e , J u n e 2 0 0 5

Figure 12: EMDG recipients by expenditure category, 2003-04 grant year

1 200

| 50

S o u rc e : E M D G d a ta b a s e , Ju n e 2 0 0 5

N o t e : T h e m a r k e t in g v is it s

e x p e n d it u r e c a t e g o r y w a s th e

la r g e s t e x p e n d it u r e c a t e g o r y

a s a p r o p o r t io n o f t o t a l

a s s e s s e d e x p e n d it u r e .

Figure 13: EMDG recipients by Austrade export region, 2003-04 grant year

N B : R e c ip ie n ts e ith e r e x p o r t o r p r o m o te to th e r e g io n

S o u rc e : E M D G d a ta b a s e , J u n e 2 0 0 5

N o te : F ig u r e s d o n o t a d d

u p t o 1 0 0 p e r c e n t as m a n y

r e c ip ie n t s t a r g e t m o r e th a n

o n e e x p o r t r e g io n .

124 Australian Trade Commission Annual Report 2004-05

Figure 14: EMDG recipients by annual export earnings, 2003-04 grant year

Nil (13.5%)

Up to & incl. $1m (63.2%)

>$1 m -$5 m (19.5%)

>$5m -$10m (2.5%)

>$1 Om -$20m (1.1%)

>$20m (0.1%)

S o u rc e : E M D G d a ta b a s e , Ju n e 2 0 0 5

Note: 77 per cent of EMDG recipients had export earnings of $1 million or less compared with 69 per cent for the 2002-03 grant year.

Figure 15: EMDG recipients by number of employees, 2003-04 grant year

0 to 10 (56.5%)

11 to 20 (16.3%)

21 to 50 (16.2%)

51 to 100 (7.1%)

101+(3.9%)

S o u rc e : E M D G d a ta b a s e , Ju n e 2 0 0 5

Figure 16: EMDG recipients by annual income, 2003-04 grant year

Up to & incl. $0.5m (28.2%)

> $ 0 .5 m -$ 2 m (29.1%)

>$2m - $5m (19.6%)

>$5m-$10m (12%)

>$1 Om - $20m (7.9%)

I >$20m -$50m (3.2%)

S o u rc e : E M D G d a ta b a s e , Ju n e 2 0 0 5

Note: 73 per cent of recipients employed 20 people or fewer compared

with 66 per cent in the 2002-03 grant year.

Note: 77 per cent of businesses receiving grants in the 2003-04 grant year

reported annual income of $5 million or less.

Appendix H Australian Trade Commission Annual Report 2004-05 125

FIGURES A N D TABLES

Figures

1. Austrade's global network 2

2. Austrade's Australian network 3

3. Austrade's management structure 4

4. Number of clients achieving export success with Austrade's assistance 6

5. Value of export success with Austrade's assistance ($m) 6

6. Number of new or irregular exporters achieving export success with Austrade's assistance

7. Number of clients achieving outward investment success with Austrade's assistance

8 . Number of clients in the biotechnology, ICT and services industries achieving

success with Austrade's assistance 7

9. Client satisfaction with Austrade's services 7

10. Linking Austrade's outcomes and outputs to internal key performance indicators 25

11. EMDG recipients by industry and export earnings, 2003-04 grant year 124

Ί2. EMDG recipients by expenditure category, 2003-04 grant year 124

13. EMDG recipients by Austrade export region, 2003-04 grant year 124

14. EMDG recipients by annual export earnings, 2003-04 grant year 125

15. EMDG recipients by number of employees, 2003-04 grant year 125

16. EMDG recipients by annual income, 2003-04 grant year 125

Tables

1. Measures and results for Output 1.1 26

2. Measures and results for Output 1.2 28

3. Measures and results for Output 1.3 30

4. Measures and results for Output 1.4 35

5. Export Market Development Grants 2004-05 36

6. EMDG recipients by state and territory, 2003-04 grant year 38

7. Measures and results for Output 2.1 40

8. Consulates and honorary consulates managed by Austrade 41

9. Client feedback 2002-03 to 2004-05 49

10. Compliments and complaints received by service type, 2004-05 49

11. Audits involving Austrade 2004-05 54

12. Appeals to the Administrative Appeals Tribunal under the EMDG Act 54

13. Attendance at Board and committee meetings, 2004-05 64

14. Management meetings and committees 64

15. Freedom of information requests for the period 1 July 2004 to 30 June 2005 115

16. Austrade advertising and market research expenditure, 2004-05 117

126 Australian Trade Commission Annual Report 2004-05

A N D A C R O N Y M S

AAT

ABS

AEI

ANAO

APL

A-based

AUSFTA

BAC

BDM

BNRC

BRC

CRF

DFAT

DIMIA

DITR

EFIC

EMDG

EMS

FOI

FTA

GDP

GST

ICT

ITES

KPI

MD

MOU

NEDP

OEE

OH&S

OPA

SAFTA

SEASAP

SME

TAFTA

WTO

Administrative Appeals Tribunal

Australian Bureau of Statistics

Australian Education International

Australian National Audit Office

Austrade Performance Level

Australia-based

Australia-US Free Trade Agreement

Board Audit Committee

Business Development Manager

Board Nomination and Remuneration Committee

Board Risk Committee

Consolidated Revenue Fund

Department of Foreign Affairs and Trade

Department of Immigration, Multicultural and Indigenous Affairs

Department of Industry, Tourism and Resources

Export Finance and Insurance Corporation

Export Market Development Grants

Environmental Management System

freedom of information

free trade agreement

gross domestic product

Goods and Services Tax

information and communications technology

International Trade Enhancement Scheme

key performance indicator

Managing Director

memorandum of understanding

New Exporter Development Program

overseas-engaged-employee

occupational health and safety

Official Public Account

Singapore-Australia Free Trade Agreement

South East Asia, South Asia and Pacific

small to medium enterprise

Thailand-Australia Free Trade Agreement

World Trade Organization

Abbreviations and acronyms Australian Trade Commission Annual Report 2004-05 127

The table below shows compliance with Commonwealth Authorities and Companies (Report o f Operation) Orders 2005 issued by the Minister for Finance and Administration on 30 June 2005.

REPORT OF OPERATIONS Page

Attendance at meetings of the Board and Committees of the Board during the year 63

Audit Committee 62

Certification iii

Changes to the Board 58

Committees of the Board 62

Commonwealth disability strategy 47

Directors 58

Effects of Ministerial directions 53

Enabling legislation and responsible Minister 53

Indemnities and insurance premiums for Directors and officers 66

Judicial decisions and reviews by outside bodies 54

Organisational structure 4

Review of operations and future prospects 56

Statement on governance 57

W hile not required from statutory authorities Austrade has also compiled this report with selected regard to the Requirements for Departmental Annual Reports approved by the Joint Committee of Public Accounts and Audit under subsection 63 (2) and 70 (2) of the Public Service Act 1999 June 2005.

128 Australian Trade Commission Annual Report 2004-05

Aboriginal cadetships, 47 accidents and injuries, 46 accountability, 53-5 ACE suite, 47 Action Agendas, 29

administered items, 35-9, 56, 121 Administrative Appeals Tribunal, 54 advanced manufacturing, 29, 42 advertising, 51, 117

rural and regional press, 37 see also awareness raising AEI, 19, 123 Aerosonde, 15 Africa, 9, 1 6, 28, 45

agribusinesses, 42 see also food; wine

agricultural equipment, 32 Aichi Expo, 19 AIR, 17

air navigation aids, 21

Airservices Australia, 15

American Chamber of Commerce, Jordan, 17 Americas, 5, 14-15, 123

EMDG recipients, 124 staff, 119

see also United States of America Analysis and Planning, 44, 119 ANAO, 51, 54, 57, 62

animal genetics, 15 animation, 9

Annual Procurement Plan, 51 APEC, 44, 47 appeals, 54

appearances before parliamentary committees, 28 Appropriations, 1 20, 1 2 1, 122 Approved Bodies, grants paid to, 36

Approved Joint Venture applicants, grants paid to, 36

Approved Trading Houses, grants paid to, 36 arts, see entertainment and the arts

Asia, see North-East Asia; South-East Asia, South Asia and Pacific assets, 56

property portfolio, 52, 55 Assisting Companies to Export suite, 47

attendance at Board and committee meetings, 64 Auckland, 40

Audit Committee, 62, 63 audits, 51, 54 AusAID, 21, 47

Ausenco Limited, 42 AUSFTA, 14, 15, 26, 27 Auslndustry, 29

Austrade administered grants and loans, 35-9, 56, 121

see also Export Market Development Grants scheme

Austrade Institute, 46, 47 Australia-Mexico eLearning conference, 5 Australia Post, 31

Australia-United States Free Trade Agreement, 14, 15, 26, 27 Australia Week, Moscow, 1 7

Australian Agency for International Development, 21,47

Australian Association of Independent Record labels, 17 Australian Chamber of Commerce and Industry, 42 Australian Education International, 19, 123 Australian Electoral Commission, 41 Australian Exhibition Services, 11 Australian Export Awards, 42 Australian Fashion Week, 13 Australian Federal Police, 38 Australian Gold Reagents Pty Ltd, 42 Australian Importer Awards, 19 Australian National Audit Office, 51, 54, 57, 62 Australian network, vi, 3, 64, 65, 112-13 Australian Suppliers Database, 33 Australian Trade Commission Act 1985, 53, 57, 58 Australian Wine and Brandy Corporation, 123 Australian Zoo, 42 Australians assisted overseas, 40, 41 Australians informed about/provided access to

consular, passport and immigration services outcome, 25, 40-1, 122 Australians succeeding in international business

outcome, 25, 26-39, 121 average ENDG grants, 36 ·

average staffing levels, 1 2 0, 1 2 1, 122

Index Australian Trade Commission Annual Report 2004-05 129

aviation, 15, 21 awards, 19, 22, 42 awareness raising, 26-7, 121 EMDC scheme, 37

security, 52

see also promotional events; seminars and workshops

baby and children's products, 33 Baghdad, 1 7 Bangkok, 41

Beijing, 19

biotechnology, 7, 30 Board, 57-65, 66

Board Audit Committee, 62, 63 Board Nomination and Remuneration Committee, 63 Board Risk Committee, 62-3 Bombay (Mumbai), 40 Brazil, 123

breeders, 15, 34 briefs, 28 Britain, 1 6, 40 broadcasting, 9, 1 7

budgeting and forecasting tool, 50 building industry, see construction industry Business ACT, 17

business awareness, 26 Business Club Australia: Melbourne 2006, 26, 33 Business Continuity Planning, 65 Business Effectiveness unit, 50-2 business missions to Expo 2005, 19 business processes, 45-6, 50 buyer visits to Australia, 5, 13, 21, 34

Camel man Products, 9 Canada, 14, 15, 32, 47 capital repayment to Australian Government, 56 Carnarvon, 9

cartoons, 9 Casella Wines, 42 cash deposits, 56 cattle breeders, 15 CeBIT Australia, 5 Certified Agreement, 45 Chairman, 29, 58 Chief Finance and Information Officer, 50 child care, staff, 47 China, 19, 44

parliamentary inquiry, 28 China International Education Exhibition Tour, 19

classifications of staff, 118

Client Advisory Services team, 12, 13 client processes, 13, 21 client satisfaction, 7, 48, 49

awareness raising, 26 consular, passport and immigration

services, 40 government advice and coordination, 28

services and opportunities, 30, 32 Client Service Charter, 48, 114 Client Service Initiatives team, 12 Client Services Division, 12-13,119, 48-9 clients, 6-7, 30-2

EMDG scheme, 35, 36 Export Advisers, 13 Export Development Division, 10 see also established exporters; new and irregular exporters clothing and fashion, 9, 13 coaching project, 47 Code of Ethical Business Conduct, 47 Colombo, 41 committees, 64

Board, 62-3 parliamentary, 28 Commonwealth Authorities and Companies Act 1997, 53, 56 Commonwealth Director of Public Prosecution

referrals, 38

Commonwealth Games, 26

Commonwealth of Independent States, 1 7 Commonwealth Procurement Guidelines, 53 communicating with staff methods, 65 community awareness, 26 competitions, 27 competitive tendering and contracting, 51 complaints, 48, 49

appeals against EMDG decisions, 54

compliments, 48, 49 conferences, see seminars and workshops construction industry, 5, 19 development projects, 1 7, 21 consular, passport and immigration services,

40-1, 122

consultancy services, 50 consultative arrangements, 11 6 contracts, see procurement corporate governance, 57-66 corporate partnerships, 31

Corporate Plan, 44 cost output measures, 26, 28, 30, 35, 40

130 Australian Trade Commission Annual Report 2004-05

court cases, 38

Crocodile Charlie and the Holy Grail, 27 Culinary Journey television series, 17

culture, see entertainment and the arts curriculum material, 27

Dean & Deluca, 15 decision-making powers, 115 defence industry, 15

Department of Agriculture, Fisheries and Forestry, 29, 123

Department of Communications, Information Technology and the Arts, 29 Department of Education, Science and Training, 123

Department of Foreign Affairs and Trade (DFAT), 19, 21, 28, 40, 41, 51-2 purchaser/provider arrangements, 123 Department of Immigration, Multicultural and

Indigenous Affairs, 40-1, 123 Department of Industry, Tourism and Resources, 29, 123

Deputy Managing Director, 57, 58, 63 DHL Exporter of the Year, 42 direct mail organisations, expenditure on, 117 Director of Public Prosecutions referrals, 38 directors, 10, 12, 118

Board, 57-65, 66 Disability Action Plan, 47

Discover Australia promotional events, 15 Dubai, 40, 123 Dublin, 1 7

ecologically sustainable development, 55 economic contribution of exports, 24 education programs, Austrade, 27, 47 education services, 19, 123

Australian Export Awards, 42 effectiveness measures, 24 EFIC, 46, 58 eLearning conference, 5 election 2004, 29

overseas voting, 41 electronic industry, 29

EMDG scheme, see Export Market Development Grants scheme emergency procedures, review of, 65 Emerging Exporter Award, 42

Employee Assistance Program, 46-7 employees of EMDG recipients, 36, 125 see also staff

Index

energy sector, 42

entertainment and the arts, 9, 13, 1 7, 19, 34 Australian Export Awards, 42 Environmental Management System (EMS), 55 equity, financial, 56

established exporters, 1 7, 19, 30, 31 satisfaction with Austrade services, 32 ethical standards, 47 ethnic business community, 37

Europe, 9, 16, 17, 40, 45, 123 parliamentary inquiry, 28 Europe, Middle East and Africa, 1 6-1 7, 119 EMDG recipients, 124

see also Middle East events, significant, 56 see also promotional events; seminars and workshops

Executive and Board, 119 Executive Directors, 64 exhibitions Latin America, 5

Middle East, 1 7

North East Asia, 19 South East Asia, 13 existing exporters, see established exports expenditure, see finance

Expo 2005, Aichi, 19 Export Advisers, 12, 13, 14, 33, 48 Export Advisory Panel, 29 Export Awards, 42 export earnings, see export sales

Export Finance and Insurance Corporation, 46, 58 export impact, 6, 30, 31 Export Market Development Grants Act 1997, 53 appeals to AAT under, 54

changes made, 35, 36 Exports Market Development Grants Amendment Act 2004, 53 Export Market Development Grants (EMDG)

scheme, 8, 35-9, 124-5 complaints and compliments, 49 publications, 116 Export Plan Competition, 27 export regions, see global network export sales, 6-7, 30, 31

EMDG recipients, 35, 36, 124, 125.

Europe, Middle East and Africa, 17, 124 North-East Asia, 19, 124 South East Asia, South Asia and Pacific, 13,124 export sustainability project, 48

Australian Trade Commission Annual Report 2004-05 131

Export to India— Riding the Elephant seminars, 21 Exporter Development Division, 10-11,119 Exporter of the Year award, 42 exporters, 24

see also clients Exporters Hall of Fame, 42

Exporting for the Future (EFF) education program, 27

facilities under management, 35, 37 Family Care Link Program, 47 fashion industry, 13

female staff, 118, 119

finance, 50, 56, 67-110, 120-2 Austrade administered grants and loans, 35-9, 56

estimates inquiries, 28 performance bonus payments, 46 security, 51 see also Export Market Development Grants scheme; procurement Finance and Information Division, 50, 119 financial result, 56 financial statements, 67-110 food, 13, 15, 17, 29

France, 17 Franchise Council of Australia, 11 Franchise Expo, 11 fraud control, 66

EMDG scheme, 38 free trade agreements (FTAs), 26, 28-9 Thailand, 21, 26 United States, 14, 15, 26, 27 freedom of information, 115-1 7 From Contacts to Contracts brochure, 11

ETA Export Advisory Panel, 29

ETA website, 28-9 full-time staff, 118 functions, 115 Board, 57

gender of staff, 118, 119

genetic exports, 1 5 global network, vi, 2, 4, 14-21, 40-1 EMDG recipients by, 124

property portfolio, 52 security, 51

staff, 118-19: partners and families of, 47 Stay in Touch sessions, 64

see also Americas; Europe, Middle East and Africa; North East Asia; South East Asia, South Asia and Pacific

Going Place seminar series, 11 gourmet foods, 13, 15, 17 governance, 57-66

government advice and coordination, 28-9, 121

Government and Corporate Services, 44, 50-2, 119 government policy, contribution to, 28-9 grants, see Export Market Development Grants

scheme

Great Big Events, 39 Guangzhou, 19 Gulf States, see Middle East Gunns WA, 19

Hammersley Iron Pty Ltd, 42 Hangzhou, 19 health and safety, 46 honorary consulates, 40, 41 horse breeders, 34 House of Representatives Standing Committee on

Science and Innovation, 28 Human Resources, 45-7, 119

see also staff

IDP, 19

IELTS Australia, 42 llsan Cultural centre, 19

immigrant business community, 37 immigration services, 40-1

income of EMDG recipients, 35, 36, 125 see also export sales indemnities and insurance, 66 India, 21,40 Indian Ocean tsunami response, 21, 33, 41

Indigenous Cadetship Program, 47 indirect export assistance, 30, 31

Indonesia, 41 Indulgence Exhibition, 13

industry Action Agendas, 29 EMDG recipients by, 124 information brochures, 11,37

information, communication and technology (ICT), 7, 29, 30 Austrade, 45, 50 see also Internet

initial information and advice/services from Austrade, 30 injuries and accidents, 46 insurance and indemnities, 66 internal audit/auditor, 62, 66

internal control systems, 65-6

132 Australian Trade Commission Annual Report 2004-05

international business success outcome, 25, 26-39, 121 International Development Program (IDP), 19 international education, 19 International Trade Enhancement Scheme, 37 international trade fairs/shows, 17, 32 Internet, 32-3, 48, 49

Austrade Institute, 46, 47 FTA website, 28-9 inquiries via, 10 MyExportCoach portal, 11 InterScan Navigation systems Pty Ltd, 21 intranet, 46 Invest Australia, 19, 46, 123 investment, 7, 30, 32, 123

Austrade activities, 56 parliamentary inquiry, 28 Iraq, 1 7 Ireland, 1 7

irregular exporters, see new and irregular exporters ITES, 37

Jakarta, 41 Japan, 19, 34, 40, 47

jarrah market, 19 Joint Standing Committee on Foreign Affairs and Trade, 28

joint ventures, grants paid to, 36 Jordan, 1 7

judicial decisions, 54

Kangaroo Creek Gang Pty Ltd, 9 key performance indicators, 6-7, 24 Korea, 19, 28

KPMG, 62, 66 Krabi, 41 Kuala Lumpur, 13, 41

Latin America, 5, 14, 15, 123 leases, 52 Leeum Samsung Museum of Art, 19 legislation, 53, 57, 58

appeals under EMDG Act, 54 changes made to EMDG scheme, 35, 36 loans, 37 Local Export Adviser Network, 12, 13, 14, 33 location of EMDG recipients, 36, 38 location of staff, 11 8-19 location of operations, 2-3, 112-13 Lockheed Martin, 15 London, 40

Magic Millions Sale, 34 Maklowicz, Robert, 1 7

Malaysia, 13, 41 male staff, 118, 119 management environment, 63 management mechanisms, 63-5 Managing Director, 57, 58, 59, 63, 64

report, iv-v

Manchester, 17 Mandarin language brochure, 37 manufacturing, 29, 32, 42 marine industry, 29

market research, 117

market selection process pilot, 49 marketing, 26

business expenditure, 36 see also promotional events Mayne Pharma Pty Ltd, 42 media advertising, see advertising

media mentions, 26 media strategies, 26 median EMDG grant, 36 medical devices industry, 29 meetings of Board and committees, 58, 63, 64 Melbourne Commonwealth Games, 26, 33 members of Board, 57-63 memorandums of understanding, 29, 123 men staff, 118, 119 Mercedes Australian Fashion Week, 13 Mexico, 5, 1 5 Middle East, 16, 17, 40, 45

parliamentary inquiry, 28 MIDEM, 17 migrant business community, 37 migration services, 40-1 minerals and energy, 42 Minister, 35, 37, 42, 53

satisfaction, 26, 28 Minister for Finance and Administration, 53

motorcycle stunt show, 34 Mt Romance Australia Pty Ltd, 42 M uir Engineering Pty Ltd, 42 Mumbai, 40 MyExportCoach portal, 11

national offices, 3, 64, 112, 119 HR advisers, 45 navigation aids, 21 net operating result, 56

Index Australian Trade Commission Annual Report 2004-05 133

new and irregular exporters/New Exporter

Development Program (NEDP), 7, 8, 22, 30, 31 Australian Export Awards, 42 client case study, 9 client satisfaction, 32

Europe, Middle East and Africa, 1 7 Export Adviser clients, 13 North-East Asia, 19 visit program involvement, 10

new EMDG grant applicants/recipients, 35, 36, 39 New York, 1 5 New Zealand, 28, 40 North Africa, 28

North America, see Canada; United States North East Asia, 1 8-19

EMDG recipients, 124 parliamentary inquiry, 28 staff, 119 notarial acts, 40

occupational health and safety, 46 offices, vi, 3, 112-13 see also TradeStart oilskin products, 9 operating framework, vi operative result, 56

Operational Plan, 44 organisation and structure, 2-4 human resources function, 45 organisation support services, 44-52

Osaka, 34, 40 outcomes and outputs, 23-41, 121-2 outside participation, 116 outward investment, 7, 30, 32

parliamentary inquiry, 28

overseas assistance, 40, 41 overseas-engaged employees, 46, 118, 119

overseas network, see global network overseas students, 19 overseas voting, 41

Pakistan, 21

Paris, 1 7 parliamentary inquiries and briefings, 28, 54 part-time staff, 11 8 Partnering2Perform online performance

management system, 45-6

partners and allies, vi, 31,47 partners and families of overseas employees, 47

passports issued, 40 People's Republic of China, see China

performance audits, 51, 54 performance bonus payments, 46 performance management, 45-6 phone calls, 10 Phuket, 41

Poland, 9, 1 7 policy contribution, 28-9 polling organisations, expenditure on, 11 7 portfolio membership, 53 powers, 57, 115 price of outputs, 1 21, 122

Prime Minister's Science, Engineering and Innovation Council, 29

privacy, 55 private sector partnerships, 31

procurement, 50-1,55 advertising and market research expenditure, 117 ministerial direction, 53

purchaser/provider arrangements, 123 US market, 15 professional development program, 31 programs, 8 promotional events, 26, 33

Canada, 1 5 Republic of Korea, 1 9

Russia, 1 7 South East Asia, South Asia and Pacific, 21

see also exhibitions property, plant and equipment, 56 property portfolio, 52, 55

prosecutions, 38 protective security, 51-2 provisional grant entitlements, 35

publications, 11,27, 37, 116-1 7 contributions to, 28 see also Internet Pugglekids, 33 purchasing, see procurement

Q ingdao,19 quality output measures, see client satisfaction

quantity output measures Austrade administered grants and loans,

35, 36, 37 awareness raising, 26 consular, passport and immigration

services, 40 government advice and coordination, 28 services and opportunities, 30-3

Queensland, 34

134 Australian Trade Commission Annual Report 2004-05

Rebuild Iraq 2005 exhibition, 1 7 The Recovery Company, 31 recruitment of staff, 11 8 Redmap Networks Pty Ltd, 42

regional directors, 14, 16, 18, 20 Regional Exporter of the Year, 42 Republic of Korea, 19, 28 responsible Minister, see Minister revaluation of property, plant and equipment, 56 revenue, see finance reviews, 48, 52, 55

by Board, 63, 65

EMDG scheme, 35, 37 risk management, 62-3, 65, 66 EMDG scheme, 38 security, 52

rural and regional EMDG grant recipients, 36 rural and regional press, advertising in, 37 Russia, 1 7, 40

safety, 46 sales, see export sales satisfaction, see client satisfaction

schools program, 27 security, 51-2

seminars and workshops organised, 27, 31, 33 Client Services Division, 13 Exporter Development Division, 10, 11 Mexico, 5 South East Asia, South Asia and Pacific, 21

Senate inquiries and briefings, 28 senior management, 46, 118 Sense of Australia event, 19 Seoul, 19 separations of staff, 118 service charter, 48, 114

Service Level Agreement, 123 services and opportunities, 30-4, 121 services sector, 7, 27, 30

Australian Export Awards, 42 From Contacts to Contracts brochure, 11

sex of staff, 118, 119 Shanghai, 19 Shenzhen,19

Singapore, 13, 28 small to medium (SME) enterprises, 8, 29, 35-9 Australian Export Awards, 42 Export Plan Competition, 27

South Africa, 9 South America, 123

South East Asia, South Asia and Pacific, 13, 20-1 EMDG recipients, 124 staff, 119 tsunami response, 21, 33, 41 South Korea, 19, 28

Special Approvals category marketing expenditure, 36 sport, 26, 33, 34, 39 Sportstage, 34 Sri Lanka, 41 staff, vi, 4, 5, 45-7, 118-19

average levels, 1 2 0, 1 2 1, 122 indemnities and insurance, 66 seconded, 38, 41 training and development, 46, 51, 65 'Stamped for Export' banner, 31 standing committees of Board, 62-3 state offices, see national offices states and territories, EMDG recipients by, 38 Stay in Touch sessions, 64 Strategic Management Group, 44 student programs, 27 submissions made, 28, 29 sustainability of exports project, 48

'Swedish Style' export seminars, 13 Sydney, 11,45, 48

teachers, 27 Team Results, 27

telecommunications bandwidth, 50 telephone calls, 10 television broadcasting, 9, 17 tendering, see procurement

Thailand, 41 free trade agreement, 21,26 thoroughbreds, 34 timeframes

EMDG scheme, 37 government advice and coordination, 28

Tokyo, 34 Torres Strait cadetships, 47 tourism, 13, 42

Tourism Australia, 1 7 Tourism Western Australia, 1 7 Trade 2005, 28 Trade Commissioners, 17

see also global network

Trade Consultants, 17 trade fairs/shows, 1 7, 32 Trade Policy Advisory Council, 28

Australian Trade Commission Annual Report 2004-05 135 Index

trade policy contribution, 28-9

trade promotional events, see promotional events TradeStart, 3, 8, 9, 112-13 TradeStart Partnerships Unit, 12 trading houses, grants paid to, 36

'train-the-trainer' seminars, 27 travel documents issued, 40 travel system, 50 tribunal appeals, 54

tsunami response, 21,33, 41

Turbosmart, 39 turnover of staff, 118

United Arab Emirates, 40, 123 United Kingdom, 16, 40 United States, 14, 15, 39 free trade agreement, 14, 15, 26, 27

parliamentary inquiry, 28 Washington DC, 15, 40

value of EMDG grants, 35, 36 value of export success, 6, 30, 31 EMDG recipients, 36

value of outward investment success, 30, 32 video conferencing facilities, 50

visa applications, 40-1 Vladivostok, 40

voting, overseas, 41

Washington DC, 15, 40

website, see Internet Western Australian Local Export Adviser Network,

13

whistleblower policy, 47

Windows software, 50 wine, 123 Australian Export Awards, 42 Western Australian, 13

Women in Export seminar series, 11 women staff, 118, 119 workplace agreement, 45 workplace diversity, 46-7 workplace health and safety, 46 Workplace Relations Committee, 64

workshops, see seminars and workshops World Brahman Congress, 15

World TPO Awards, 22

136 Australian Trade Commission Annual Report 2004-05

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