ACTION 
Objectives
The Government is taking steps to make the ACT Public Sector more efficient, to take greater advantage of its small scale.  A number of existing functions will be integrated, and the number of statutory authorities will be reduced.
ACTION has been integrated into the Department of Territory and Municipal Services from 1 July 2006.  ACTION will continue as a separate reporting entity with its own financial information, and strategic and accountability measures.
ACTION provides public transport services to the ACT community in the form of scheduled route bus services, school bus services and special needs transport services.
2006‑07 Priorities
Strategic and operational issues to be pursued in 2006‑07 include:
•	continuing to develop strategies to increase adult patronage as set out in the Government’s Sustainable Transport Plan;
•	implementing network improvements to increase network efficiency and direct services, in addition to offering increased services for new areas;
•	progressing the bus replacement program in order to improve environmental sustainability and to meet the disability accessibility targets;
•	increasing security on buses by fitting additional closed circuit television units, and improving security at depots;
•	continuing the review of the ticketing system, including consideration of a smart card option; and 
•	continuing workplace reforms to further improve productivity and reduce costs.
Business and Corporate Strategies
ACTION’s core business activity is to provide public transport services to the community, including: 
•	public bus network and school services;
•	a special needs transport service for disadvantaged people; and
•	charter bus services provided at competitive rates.
ACTION is aiming to provide a Disability Discrimination Act 1992 (DDA) compliant bus fleet to the ACT.  ACTION is well on the way to achieving that goal, with the number of DDA compliant accessible buses in the fleet being 82 at the close of 2005‑06.  By the end of 2006‑07 it will increase to 99. 
ACTION operates under a Quality System, which complies with the requirements of the International Organisation for Standardisation.  The Quality System provides the basis for continuous improvement in all aspects of ACTION’s services.  The Quality System covers all the activities required to plan, design, schedule, operate and monitor the ACTION network and associated business services.  This includes the material and services provided by ACTION’s suppliers.  

Estimated Employment Level
	2005‑06
Est. Outcome	2006‑07
Budget	
Staffing (Headcount)	810	796	

Output Class
	Total Cost¹	Government Payment for Outputs	
	2005‑06
Est. Outcome
$’000	2006‑07
Budget
$’000	2005‑06
Est. Outcome
$’000	2006‑07
Budget
$’000	
Output Class 1: Public Transport	88,433	85,812	-	-	
Output 1.1: Public Transport	88,433	85,812	-	-	
Note:
1.	Total cost includes depreciation of $6.306 million in 2005-06 and $6.218 million in 2006‑07.
Output Description
Public transport assists the Government in implementing the Sustainable Transport Plan.  In particular it will promote the goals of achieving a modal shift from private vehicles to public transport and ensuring that the transport system helps make Canberra a more accessible city.
Strategic Indicators
Public transport plays a major role in the Government’s Sustainable Transport Plan.  The initiatives for public transport under this plan are:
•	increasing patronage on ACTION Buses to 17.1 million passenger boardings in 2006‑07, with a particular emphasis on the modal split for adult patronage; and
•	increasing the number of vehicles that run on alternative fuels to minimize the environmental impact of the operations and services of the fleet.

Accountability Indicators
	2005‑06
Targets	2005‑06
Est. Outcome	2006‑07
Target	
Output Class 1: Public Transport¹	
Output 1.1: Public Transport²	
				
a.	Timeliness of ACTION Services	99.8%	99.8%	99.8%	
				
b.	Customer Satisfaction with ACTION Services as assessed by passenger surveys	82%	82%	82%	
				
c.	Increase in modal share (adult work trips increase in accordance with the Sustainable Transport Plan)	3.3%	12.8%	3.2%	
				
d.	Increase in number of passenger boardings	176,000	438,000	197,000	
				
e.	Percentage of buses in the fleet fully compliant with Disability Standards 	22.6%	22.2%	26.3%	
				
f.	Percentage of fleet Euro 3 emission standard compliant 	12%	12.7%	14.3%	
				
g.	Total cost per vehicle km	$3.53	$3.72	$3.65	
				
h.	Total cost per passenger boarding	$5.06	$5.23	$5.02	
				
i.	Farebox³ recovery as a percentage of total revenue	n/a	n/a	19.8%	
				
Note:
1.	New output class.
2.	This output and associated indicators were previously reported under Output Public Transport in the Department of Urban Services in the 2005‑06 Budget Papers.  The 2005‑06 targets and estimated outcome is identified for comparative purposes only.
3.	This is a new indicator from 2006-07.  

Commonwealth Grants
The major Commonwealth payments for which ACTION is responsible are:
Name of Grant	Activities Funded by Grant	2006‑07
Estimate
$’000	
			
Energy Grants Credits Scheme	This grant provides a fuel subsidy for both diesel and Compressed Natural Gas buses.	424	
New Apprenticeship Scheme	This grant provides an employment subsidy for apprentices.	60	
Structured Training and Employment Programs (STEP)	This grant provides subsidies for driver training and Aboriginal employment.	10	

Total
		
494	

ACTION 	
Operating Statement	
  2005‑06			  2005‑06	   2006‑07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
17,322		User Charges - Non ACT Government	18,319	19,067	4	19,542	20,030	20,531		
59,834		User Charges - ACT Government	61,425	61,671	..	59,265	60,280	61,241		
0		Grants from the Commonwealth	437	494	13	494	494	494		
209		Interest	106	178	68	183	183	183		
50		Resources Received free of charge	50	50	-	50	50	50		
77,415		Total Revenue	80,337	81,460	1	79,534	81,037	82,499		
		Gains								
0		Total Gains	0	0	-	0	0	0		
77,415		Total Income	80,337	81,460	1	79,534	81,037	82,499		
		Expenses								
47,462		Employee Expenses	51,466	47,307	-8	45,003	45,598	45,929		
6,246		Superannuation Expenses	5,272	7,689	46	7,325	7,421	7,457		
21,264		Supplies and Services	23,850	23,278	-2	23,378	23,932	24,341		
6,306		Depreciation and Amortisation	6,306	6,218	-1	6,208	5,633	5,633		
966		Borrowing Costs	966	883	-9	798	744	744		
915		Other Expenses	573	437	-24	437	437	437		
83,159		Total Ordinary Expenses	88,433	85,812	-3	83,149	83,765	84,541		
-5,744		Operating Result	-8,096	-4,352	46	-3,615	-2,728	-2,042		

ACTION 	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
1,592		Cash	1,306	2,434	86	3,935	5,267	6,635		
2,276		Receivables	1,626	1,620	..	1,624	1,629	1,634		
2,000		Investments	0	0	-	300	1,600	3,600		
1,515		Other	2,238	2,238	-	2,238	2,238	2,238		
7,383		Total Current Assets	5,170	6,292	22	8,097	10,734	14,107		
		Non Current Assets								
75,782		Property, Plant and Equipment	74,590	72,947	-2	66,398	60,424	54,450		
75,782		Total Non Current Assets	74,590	72,947	-2	66,398	60,424	54,450		
83,165		TOTAL ASSETS	79,760	79,239	-1	74,495	71,158	68,557		
		Current Liabilities								
2,885		Payables	4,212	3,827	-9	3,440	3,053	2,666		
539		Interest Bearing Liabilities	538	549	2	561	573	585		
547		Finance Leases	551	582	6	50	0	0		
6,131		Employee Benefits	5,716	5,998	5	6,388	6,778	7,168		
0		Other	797	797	-	797	797	797		
10,102		Total Current Liabilities	11,814	11,753	-1	11,236	11,201	11,216		
		Non Current Liabilities								
903		Payables	1,008	1,008	-	1,008	1,008	1,008		
7,189		Interest Bearing Liabilities	7,190	6,640	-8	6,078	5,504	4,930		
860		Finance Leases	632	50	-92	0	0	0		
6,855		Employee Benefits	7,506	7,360	-2	7,360	7,360	7,360		
15,807		Total Non Current Liabilities	16,336	15,058	-8	14,446	13,872	13,298		
25,909		TOTAL LIABILITIES	28,150	26,811	-5	25,682	25,073	24,514		
57,256		NET ASSETS	51,610	52,428	2	48,813	46,085	44,043		
		REPRESENTED BY FUNDS EMPLOYED								
57,256		Accumulated Funds	51,610	52,428	2	48,813	46,085	44,043		
57,256		TOTAL FUNDS EMPLOYED	51,610	52,428	2	48,813	46,085	44,043		

ACTION 	
Cash Flow Statement	
  2005‑06			  2005‑06	   2006‑07		  2007-08	  2008-09	  2009-10		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
77,156		User Charges	79,198	80,738	2	78,807	80,310	81,772		
209		Interest Received	106	178	68	183	183	183		
0		Grants Received from the Commonwealth	437	494	13	494	494	494		
3,937		Other Revenue	3,949	3,993	1	4,045	4,152	4,153		
81,302		Operating Receipts	83,690	85,403	2	83,529	85,139	86,602		
		Payments								
53,032		Related to Employees	55,588	54,606	-2	51,938	52,629	52,996		
21,603		Related to Supplies and Services	22,893	23,618	3	23,718	24,272	24,681		
966		Borrowing Costs	966	883	-9	798	744	744		
4,267		Other	4,079	4,078	..	4,142	4,250	4,251		
79,868		Operating Payments	83,526	83,185	..	80,596	81,895	82,672		
1,434		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	164	2,218	#	2,933	3,244	3,930		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Receipts								
527		Proceeds from Sale of Property, Plant & Equipment	396	0	-100	0	0	0		
527		Investing Receipts	396	0	-100	0	0	0		
		Payments								
8,715		Purchase of Property, Plant and Equipment	8,327	4,916	-41	0	0	0		
8,715		Investing Payments	8,327	4,916	-41	0	0	0		
-8,188		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-7,931	-4,916	38	0	0	0		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
8,440		Capital Injection from Government	5,440	4,916	-10	0	0	0		
8,440		Financing Receipts	5,440	4,916	-10	0	0	0		
		Payments								
529		Repayment of Borrowings	529	539	2	550	562	562		
521		Repayment of Finance Lease	521	551	6	582	50	0		
1,050		Financing Payments	1,050	1,090	4	1,132	612	562		
7,390		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	4,390	3,826	-13	-1,132	-612	-562		
636		NET INCREASE/(DECREASE) IN CASH HELD	-3,377	1,128	133	1,801	2,632	3,368		
2,956		CASH AT BEGINNING OF REPORTING PERIOD	4,683	1,306	-72	2,434	4,235	6,867		
3,592		CASH AT THE END OF THE REPORTING PERIOD	1,306	2,434	86	4,235	6,867	10,235		

ACTION 	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/06			as at 30/6/06	as at 30/6/07	   Var	as at 30/6/08	as at 30/6/09	as at 30/6/10		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
54,560		Opening Balance	54,173	51,610	-5	52,428	48,813	46,085		
		Accumulated Funds								
-5,744		Operating Result for the Period	-8,096	-4,352	46	-3,615	-2,728	-2,042		
		Reserves								
-5,744		Total Income And Expense For The Period	-8,096	-4,352	46	-3,615	-2,728	-2,042		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
8,440		Capital Injections	5,440	4,916	-10	0	0	0		
0		Inc/Dec in Net Assets due to Admin Restructure	93	254	173	0	0	0		
57,256		Closing Balance	51,610	52,428	2	48,813	46,085	44,043		
Notes to the Budget Statements
Operating Statement
•	user charges - non ACT Government:  the increase of $0.997 million in the 2005‑06 estimated outcome from the original budget is due to increased patronage, as well as minor increases in charter and advertising revenue.  The increase of $0.748 million for the 2006‑07 Budget on the 2005‑06 estimated outcome is largely due to a 6 per cent increase in fares and higher passenger numbers;
•	user charges - ACT Government:  the increase of $1.591 million in the 2005‑06 estimated outcome from the original budget is due to funding for increased fuel costs of $1.325 million and additional revenue generated from the provision of special needs transport services to other ACT Government agencies.  The increase in the 2006‑07 Budget of $0.246 million from the 2005‑06 estimated outcome is due to increased funding for revised notional superannuation contribution rates offset by savings in overheads and operating costs;
•	grants from the Commonwealth:  the increase of $0.437 million in the 2005‑06 estimated outcome from the original budget is due to access to various Commonwealth funding programs such the energy grants credit scheme and various employee vocational and accreditation schemes.  The increase of $0.057 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to additional revenue from the introduction of the Commonwealth’s fuel tax credits scheme which replaces the energy grants credits scheme on 1 July 2006;
•	
employee expenses:  the increase of $4.004 million in the 2005‑06 estimated outcome from the original budget is largely due to an increase in the number of employees employed in 2005‑06.  The decrease of $4.159 million in the 2006‑07 budget from the 2005‑06 estimated outcome reflects savings in overhead and operating costs;
•	superannuation expenses:  the decrease of $0.974 million in the 2005‑06 estimated outcome from the original budget is largely due to a reallocation of superannuation costs to employee expenses.  The increase of $2.417 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to increased notional superannuation contribution rates;
•	supplies and services:  the increase of $2.586 million in the 2005‑06 estimated outcome from the original budget is due to increases in fuel costs throughout the year as well as increases in security, accidents, repairs and maintenance and other operating expenses.  The decrease of $0.572 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to estimated savings in maintenance costs resulting from the introduction of new buses, and an expected stabilisation in the cost of fuel;
•	borrowing costs:  the decrease of $0.083 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to repayments of capital for both finance leases and loans; and
•	other expenses:  the decrease of $0.342 million in the 2005‑06 estimated outcome from the original budget is due to a decrease in sales of buses targeted for disposal through the bus replacement program.  The decrease of $0.136 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects the retention of a higher number of buses targeted for disposal.
Balance Sheet
•	cash and investments:  the decrease of $2.286 million in the 2005‑06 estimated outcome from the original budget is due to increased costs, particularly fuel and employee costs, offset by estimated increases in revenue from fares.  The increase of $1.128 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to an anticipated increase in operating cash through a reduction in costs and increased revenue from fares;
•	current receivables:  the decrease of $0.650 million in the 2005‑06 estimated outcome from the original budget is due to improved collections;
•	other current assets:  the increase of $0.723 million in the 2005‑06 estimated outcome from the original budget is due to an increase in stocks of parts and diesel;
•	property, plant and equipment:  the decrease of $1.192 million in the 2005‑06 estimated outcome from the original budget is due to a delay in the 2005‑06 bus replacement program.  The decrease of $1.643 million in the 2006‑07 Budget from the 2005‑06 estimated outcome is due to depreciation, offset by the 2005-06 rollover of the bus replacement program;
•	current payables:  the increase of $1.327 million in the 2005‑06 estimated outcome from the original budget largely reflects increased accounts payable, especially fuel, which has changed from a 7 to a 30 day payment cycle.  The decrease of $0.385 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects decreased expenditure in 2006‑07, particularly relating to Supplies and Services;
•	current and non‑current interest bearing liabilities:  the decrease of $0.539 million in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects decreased debt levels;
•	current and non-current finance leases:  the decrease of $0.551 millions in the 2006‑07 Budget from the 2005‑06 estimated outcome reflects decreased debt levels; and
•	other current liabilities:  the increase of $0.797 million in the 2005‑06 estimated outcome over the original budget is due to the recognition of revenue received in advance.