Overview of financial performance in 2003-2004
AMSA, 14th Annual Report, 2003 - 2004
AMSA recorded a surplus of $4.09 million for 2003-2004 compared to a surplus of
$11.39 million in 2002-2003.
Revenue
AMSA is largely self-funded through levies on the commercial shipping industry, the sale of goods and services and interest. AMSA receives Community Service Obligation (CSO) funding for its search and rescue functions and boating safety education. AMSA’s three levies correspond to its major ship safety and pollution prevention functions:
- Regulatory Functions Levy covers ship safety regulatory functions;
- Marine Navigation Levy funds the national network of marine aids to
navigation; - Protection of the Sea Levy is allocated to marine pollution preparedness
and response.
The levies are collected from the commercial shipping industry under the levy legislation and paid into the Consolidated Revenue Fund and then appropriated under the Australian Maritime Safety Authority Act 1990 as special appropriations.
The CSO funding comprises an annual appropriation for the personnel and infrastructure involved in providing search and rescue services and an annual administered appropriation for the costs of responding to search and rescue incidents (mainly the cost of hiring aircraft).
Levy revenue totalled $48.3 million at 30 June 2004, representing 70.6 per cent of total revenue for the financial year compared to $45.75 (62.9 per cent) in 2002-2003. Levy revenue was around $2.3 million above the budget estimate of $46 million for the financial year following an unforeseen rise in shipping activity, and therefore levy payments, based on strong growth in commodity exports. A reduction in the overall levy revenue growth is expected in 2004-2005 following a cut of 15 per cent in the rates for the Marine Navigation Levy and the Regulatory Functions Levy effective from 1 July 2004. The trend in levy receipts is illustrated in figure 1.
Figure 1 - AMSA Levies Revenue
The Marine Navigation Levy has remained at a relatively steady level over the last three years with reductions in the rate of levy by 10 per cent from 1 July in 2000, 2001 and 2003 reflecting efficiency gains in AMSA’s administration of the national aids to navigation network.
The upward trend in the Regulatory Functions Levy has contributed to AMSA’s expansion in its ship regulatory functions. These include support for Australia’s active participation in the IMO in developing and promoting implementation and enforcement of international standards in ship safety and environmental protection and strengthening Australia’s ship inspection program to deter substandard shipping.
The gradual growth in the Protection of Sea Levy has been directed into AMSA’s management of the national strategy for preparedness and response to ship sourced pollution, particularly oil and chemicals. This meets higher community expectations in relation to environment protection activities and pollution response.
Community Services Obligation (CSO) funding totalled $21.57 million at 30 June 2004, representing 34.5 per cent of total revenue, comprising $16.27 million in annual appropriation and $5.3 million in administered appropriation. This compared to a total of $20.91 million in 2002-2003 comprising $15.71 million annual appropriation and $5.2 million annual administered appropriation. The trend in CSO funding receipts is illustrated in figure 2.
Figure 2 - Community Service Obligation Funding
The variation in the level funding in 2001-2002 arose from AMSA no longer being required from 1 July 2002 to provide a maritime distress and safety communication service to small non-SOLAS vessels (ie vessels less than 300 tonnes). A one-off appropriation of $3.025 million was provided in 2001-2002 in relation to the Australian Government contribution towards States/Territories activities to assist in establishing a distress and safety communications network for these small vessels.
The Minister announced in the 2004 Budget that the Australian Government is to provide an additional $18.9 million over four years to AMSA to enhance its maritime search and rescue capability throughout Australia. These measures are detailed in the section of this report about output 2.1, the search and rescue program.
Expenditure
Operating expenses in 2003-2004 totalled $64.31 million compared to $61.34 million in 2002-2003. This result was within a one per cent variation of the budget estimate of $64.29 million for the financial year.
The main elements of AMSA’s operating expenditure are employees and suppliers expenses and depreciation. The trend in these components is illustrated in figure 3.
The decline in employee expenditure in the three years from 1999-2000 to 2001-2002 and the corresponding rise in services expenditure corresponded with a substantial reform in AMSA’s service delivery. This included the external provision of shipping and maintenance services for the aids to navigation network during 2000-2001 with resultant rationalisation in relevant staffing.
Figure 3 - AMSA Operating Expenses
Role of AMSA | Highlights 2003-2004 | Chairman's Report | Board Members | Corporate Structure | Financial Snapshot and Performance Summary | Overview of Financial Performance 2003-2004 | Outcomes and Outputs Chart 2003-2004 | Activities in 2003-2004 Output 1.1 | Activities in 2003-2004 Output 1.2 | Activities in 2003-2004 Output 1.3 | Activities in 2003-2004 Output 1.4 | Activities in 2003-2004 Output 2.1 | Corporate Services | Shipping Registration | Staffing Reports | Report of Operations | Financial Statements | Appendices | AMSA Regulatory Plan 2003-2004 | AMSA Information/Offices | Compliance Index | Glossary | Index