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Administration

National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances
Annual Report 1998/99

National Plan 1998/99 Financial Position

Financial statements reporting the cost of National Plan administration and operations are reviewed by KPMG and are included in Financial Statements.

The operating deficit of $464,327 for the 1998–99 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, which increased slightly this financial year, however, the Protection of the Sea Levy remained at 3.3 cents per tonne.

Total income received during the 1998–99 financial year decreased by $99,754 compared with the previous year. Incidents during the year consisted of a number of minor spills committed by unidentified parties. Therefore incident recoveries are lower this financial year in comparison to the previous financial year where the polluters had been identified. The cost and recovery for the Port Stanvac spill will be included in the 1999–2000 financial year. The incident concluded during the early weeks of July 1999.

National Plan expenditure decreased by 8 percent from 1997–98, with total expenses of $4,258,281.

As at 30 June 1999 the National Plan’s total assets were $9,204,498 compared with total liabilities of $1,258,863. This places the National Plan in a sound financial position, with equity totalling $7,945,635.

It should be noted that the National Plan is still holding monies 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. The project is due for completion on 31 December 1999.

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1999 National Plan Review

The National Plan was last comprehensively reviewed in 1993. Since then it has been generally agreed that the operational aspects of the Plan have worked well and met the expectations of all parties.

However during the reporting period a number of issues were raised regarding the operation of the National Plan. The 1998 Thompson Clarke Shipping report on "Port Reform and the National Plan" raised a number of issues about the role of port authorities in the National Plan arrangements, particularly in view of the privatisation and corporatisation of ports in a number of jurisdictions. Several jurisdictions have also raised questions about the basis on which the National Plan is funded, specifically the relative financial contributions of the parties and the adequacy of the policy and decision making forums and the need for the formal agreement between the Government parties to the National Plan to set out their responsibilities and accountabilities.

In light of these issues, ATC agreed in early 1999 that the planned 10 year review of the National Plan in 2003 be brought forward and conducted during the second half of 1999, with completion in early 2000.

The Review is being oversighted by a Steering Committee with an independent chairperson. The Steering Committee consists of all States and the Northern Territory, AMSA, the Department of Transport and Regional Services, the Australian Institute of Petroleum, the Australian Shipping Federation, the Association of Australian Ports and Marine Authorities and the Great Barrier Reef Marine Park Authority. Secretariat support is being provided by AMSA.

Tenders were advertised during May for two consultancies:

A macro level quantitative and qualitative risk assessment to examine current levels of risk and what had changed since the risk assessment carried out prior to and during the 1993 National Plan Review. This project will also examine likely trends for the future.
An examination of the "optimum structure" to be put in place to best meet the statutory and other obligations of the Commonwealth, States, Northern Territory and industry and how the agreed structure should be formalised. Also development of appropriate funding arrangements which would include sources and usage of funds.

Contracts will be entered into with the successful tenderers during the 1999–2000 financial year. The Steering Committee is expected to provide a report to ATC through SCOT and MPG in the first quarter of 2000.

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Audit

Information on audits conducted in previous years can be found in previous 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 outstanding recommendations of audits and reviews at the time of the last report is as follows:

June 1998 Incident Cost Recovery Procedures Review (Internal Audit) - all 4 recommendations now implemented.
July 1998 National Plan Asset Maintenance Review (Internal Audit) - all 5 recommendations now implemented.

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last updated:
18 June 2001