You are here: Home >

Administration

National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances
Annual Report 1997/98

National Plan 1997/98 Financial Position

Financial statements reporting the cost of National Plan administration and operations are reviewed by KPMG and are included in Financial Statements [ PDF: 401KB].

The operating deficit of $702,204 for the 1997/98 financial year was in line with the 'break even over time' policy set by Government. Revenue from the Protection of the Sea Levy provided the main source of funding for National Plan operations, with some additional funding from equipment hire. Income from the Protection of the Sea Levy increased by approximately 4 percent compared with the previous year. The Protection of the Sea Levy remained at 3.3 cents per ton.

Total income received during the 1997/98 financial year decreased by $32,053 compared with the previous year. There were no significant spill responses during the year leading to the decrease in incident revenue and expenditure.

The demand for the hire of National Plan equipment by industry for contingency plan arrangements remained high during the reporting period. However revenue did decrease to $93,311 compared with last financial year.

National Plan expenditure increased by 16 percent from 1996/97, with total expenses of $4,595,912. Materials and services increased this financial year as the result of provisions made for slow moving dispersant stock. Depreciation also increased from the previous financial year as the result of the upward revaluation on the National Plan plant and equipment and the purchase of new plant and equipment.

As at 30 June 1998 the National Plan's total assets were $9,848,289 compared with total liabilities of $1,438,327. This places the National Plan in a very sound financial position, with equity totalling $8,409,962. It should be noted that the National Plan's total liabilities have increased significantly compared to last financial year. This is due to monies held in trust for the development of the National Plan Oil Spill Response Atlas. These funds are not available for other purposes of the National Plan. In accordance with the project management plan, the funds will meet expenditure from the project in the financial years ended 30 June 1999 and 30 June 2000.

[back to top]

Policy and Legislation

On 15 May 1998 the 1969 Civil Liability and 1971 Fund Conventions ceased to be in force for Australia. This follows Australia’s adoption, in 1996, of the updated 1992 Civil Liability and Fund Conventions. Under the new arrangements, total compensation for tanker oil spills has increased from $127 million to $290 million. All tankers visiting Australian ports are now required to meet the higher limits of the 1992 Conventions.

[back to top]

Audit

Information on audits conducted in previous years can be found in prior National Plan annual reports.

A number of inquiries and audits concerning the operation of the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances have been conducted. The status of the recommendations of audits and reviews not completed at the time of the last report are as follows:

June 1997 Coastal Resource Atlas Review (Internal Audit) - all 10 recommendations implemented.
June 1997 Fixed Wing Aerial Dispersant Review (Internal Audit) - all 8 recommendations implemented.

[back to top]

last updated:
18 June 2001