Review of workers compensation arrangements
The past year has been highlighted by a significant focus on Tasmania's workers compensation arrangements. As outlined in the previous Annual Report, in October 2002, the then Minister for Infrastructure announced a review of Tasmania’s workers compensation system. The purpose was to examine the impact of legislative amendments that were aimed at balancing the social and economic objectives of the system. Terms of reference for the review were released on 5 June 2003 and Mr Bob Rutherford, then a senior executive of the Department, was appointed to conduct the review.

The Rutherford Report was publicly released by the Minister, Bryan Green, in May 2004. It found that the scheme was fundamentally sound and struck an appropriate balance between looking after injured workers and having an affordable scheme. However, the report identified that there were unintended consequences associated with the second weekly benefit "step-down" provisions and these were resulting in unanticipated hardship for injured workers.

As a result, the Government announced that it would move to amend the legislation to increase the second step-down arrangements up from 70% of normal weekly earnings to a new rate of 80%. The amendments took effect on 29 June 2004.

The Rutherford Report contained other significant recommendations, and the Government announced that before further amendments were introduced to Parliament, there would be extensive consultation.

State Infrastructure Plan
Infrastructure is considered a key driver of Tasmania’s competitiveness in the national and global market. The Tasmanian Government’s role in planning, providing, facilitating and maintaining infrastructure is therefore fundamental to supporting the State’s economic and social well-being. For Tasmania’s infrastructure to fulfil this, there needs to be a clear vision. It needs to be planned for the longer term and directed towards strategic policy objectives.
Work began on developing the conceptual framework for a State Infrastructure Planning System that will analyse infrastructure, including transport, energy, water, telecommunications, land use and regulation against demand. It will provide a strategic plan for infrastructure into the future and it is intended that the system will build on the foundations established by the Infrastructure and Resource Information Service (IRIS).

AusLink
During the year, DIER has continued to advance Tasmania’s position to ensure the best possible funding outcome for land transport infrastructure in this State under the Australian Government’s AusLink initiative. This included continual emphasis of the importance of extending the national transport network in Tasmania beyond the current national highway system and including within it the State’s main rail corridors.

The final transport policy AusLink White Paper was released in June 2004 and it heralds significant changes to funding arrangements for States. DIER’s lobbying resulted in the national network expanding beyond the previously defined national highway system (the Midland Highway and the Bass Highway between Launceston and Burnie) to include the East Tamar Highway, Bell Bay Main Road and the most important rail corridors in Tasmania.

Arthur Highway safety upgrade
An official Commonwealth-State ceremony was held in March 2004 to mark the completion of the $7.2 million safety upgrade of the Arthur Highway. The project involved widening the road and sealing the shoulders between Sorell and Murdunna, together with safety improvements identified by the local community between Sorell and Port Arthur.
The objective of both governments was to make the route safer for local and interstate motorists and to ensure that the highway continues to serve the tourism, fishing and fresh produce sectors that depend on its efficient operation to support jobs and the local economy.

Community Involvement in Road Safety
The Community Road Safety Partnerships (CRSP) Program is a statewide initiative that promotes a community based approach to road safety responsibility and ownership in the community. The focus for CRSP is to address road safety issues at a local level through building partnerships with community organisations. The main emphasis of the CRSP program is to address high-risk road user behaviour, primarily through raising public awareness and conducting community education programs.

The fundamental principle of the CRSP program is to involve the community in all consultation, planning and delivery stages, while addressing road safety within the framework of the Tasmanian Road Safety Strategy 2002/06.

Twelve Councils across the State have entered into agreements with the Department of Infrastructure, Energy and Resources to develop a Community Road Safety Partnership.

Promotion of Mineral and Petroleum Potential
The Government provided $75,000 in 2003/04, through the Department of Economic Development, to actively market mineral exploration opportunities in Tasmania. Activities undertaken included the holding of a display at the world’s leading exploration forum, the Annual Meeting of the Prospectors and Developers Association of Canada (PDAC), and visiting leading international mining companies in Toronto and Vancouver, both as a part of an Australian team.
Promotional missions and functions were conducted in Perth, Sydney, Brisbane and Adelaide by officials from DIER and the Department of Economic Development. These promotions have been successful and continue to play a direct part in attracting new exploration companies to Tasmania and in the generation of new exploration projects with a projected total expenditure of over $4 million.

Passing of Jim Bacon
The final month of the year under review (June 2004) was marked by the death of former Premier Jim Bacon - an event deeply felt by many across the State Government. DIER staff members were among the hundreds who, as a mark of respect, lined the route of the funeral cortege as it passed through Hobart's city streets. The funeral service in the Federation Concert Hall was a fitting tribute to one of Tasmania's most highly regarded Premiers.

Local Contractors
The Department ensures that Tasmanian companies are given every opportunity to compete for the agency's business. It is DIER's policy to support Tasmanian businesses whenever they offer best value for money for the Government. A total of 32 contracts valued at more than $52 million were awarded locally during the year under review.

In conclusion, I wish to thank officers throughout the Department for their continuing efforts over the past year and the enthusiasm with which they have worked to help the agency meet important Government objectives.

Mark Addis
SECRETARY