DEPARTMENT OF ECONOMIC DEVELOPMENT
Objectives
The Department of Economic Development was created to implement the Government’s economic vision for Canberra and the region and provide a more coordinated approach to economic development in the Australian Capital Territory.
The Department is responsible for implementing the economic development strategies in the Government’s Economic White Paper, business development programs, tourism policy and services, racing and gaming, and sport and recreation, as well as portfolio responsibility for ACTTAB (Limited).
The Department brings together a number of key government functions including BusinessACT, Sport and Recreation ACT, the Australian Capital Tourism Corporation, ACTTAB and ACT Gambling and Racing Commission. The Department is responsible for providing policy and strategic advice to the Minister for Economic Development and the Government, and for delivering a range of services to the community.
2005-06 Highlights
Strategic and operational issues to be pursued in 2005‑06 include:
•	managing the refurbishment activity at the National Convention Centre;
•	facilitating the development of the City West area in accordance with the ANU/City West Deed of Agreement;
•	supporting the work of the Small Business Commissioner.  The Small Business Commissioner has set a number of operational goals for 2005‑06 including the development of Customer Service Charters for government agencies and the establishment of a small business dispute mediation service;
•	overseeing the ANU/MTAA Commercialisation Investment Fund to come on stream in early 2005‑06;
•	drawing on and utilising the collective skills of the Canberra Partnership Board to drive private sector development strategies for the ACT;
•	building critical mass in key industry sectors in accordance with sector development strategies agreed by the Canberra Partnership Board;
•	completing an ACT Recreation Strategy that aims to promote recreation opportunities and provide planning guidelines for the provision and development of land in urban and non‑urban settings for the long-term recreation needs of the ACT;
•	lodging the Lyneham sports precinct/Southwell master plan;
•	expanding the Kids at Play program to double its capacity to service programs in after school settings and at community events;
•	expanding the Actively Ageing program to operate in five community locations and provide physical activity programs to adults aged 60 to 70 years; and
•	preparing ACT Academy of Sport athletes for the Commonwealth Games selections being well represented in Australian Teams and Squads.

Output Classes
	Total Cost	Government Payment for Outputs	
	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	
Output Class 1
Economic Development	38  329	40  443	24  004	35  946	
Output 1.1 BusinessACT	26  233	22  539	11  908	18  042	
Output Description
The role of BusinessACT, the Government’s business development agency, is to proactively assist in the development and growth of the private sector in the ACT and region.  Economic sustainability, jobs and supporting innovation are major themes underlying BusinessACT’s activities.  
	Total Cost	Government Payment for Outputs	
	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	
Output 1.2 Small Business Commissioner	214	346	214	346	
Output Description
The role of the Office of the Small Business Commissioner will be to enhance a competitive, cooperative and fair operating environment for small business in the ACT.  The Small Business Commissioner is a statutory appointment whose duties include the development of a dispute mediation service involving small business; development of customer service charters for government agencies; and promoting informed decision making by small business and advising government on small business issues.
	Total Cost	Government Payment for Outputs	
	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	
Output 1.3 Tourism	11  882	17  558	11  882	17  558	
Output Description
Develop and grow tourism in the ACT, by increasing the levels of awareness in domestic target markets, domestic visitation, international visitation, length of stay by visitors, and economic benefit from tourism.

Output Classes cont.
	Total Cost	Government Payment for Outputs	
	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	
Output Class 2
Sport, Recreation, Gaming and Racing	9  661	15  544	9  370	14  840	
Output 2.1 Sport, Recreation and Racing Sector Development	7  504	10  143	7  323	9  499	
Output Description
The development of capacity and capabilities of the sport, recreation and racing sectors to deliver quality programs and services to the community.  This is done through the provision of grants, programs, education and training and with the support of appropriate policies and legislation.
	Total Cost	Government Payment for Outputs	
	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	
Output 2.2
Athlete Scholarships and Services	1  312	1  746	1  202	1  686	
Output Description
Athlete scholarships and services provide 250 elite, and potentially elite, athletes with scholarships, coaching, sports science advice and support services.
	Total Cost	Government Payment for Outputs	
	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	2004-05
Est. Outcome
$’000	2005-06
Budget
$’000	
Output 2.3
Facilities Planning and Usage	845	3  655	845	3  655	
Output Description
Undertaking facility planning and usage studies to maximises major stadium use, including the provision of performance fees to maintain optimum use of Canberra Stadium and Manuka Oval.

Strategic Indicators
Strategic Indicator 1
Private sector development/economic diversification
The high level strategic indicators that measure the Government’s overall performance in private sector development are: 

Household expenditure component of Gross State Product (GSP) (as a percentage of total government and household expenditure) – this measure is drawn from the national accounts data and measures non-government economic activity as a proportion of total economic activity.
Household expenditure component of GSP (nominal contribution) – also drawn from the national accounts data, this is a nominal measure of private sector economic activity in the ACT. Given the size of the public sector in the ACT economy and the potential volatility arising from changes in Australian Government administration activity, a nominal measure of total non-government economic activity should be viewed alongside proportionate measures.

Private sector share of total employment – this measure is drawn from national employment data and measures the private and public sector shares of total employment in the ACT.  Again, because of the influence and potential volatility of Australian Government employment in the ACT, a nominal private sector employment figure is also presented. 

Strategic Indicators cont.
Strategic Indicator 2
ACTC’s strategic indicator is to grow Gross State Product (GSP) and employment by increasing visitor numbers and yield from both international and domestic markets.  
The ACT tourism industry directly accounts for $530m of GSP.  In addition, tourism indirectly contributed a further $227m in GSP to the ACT economy.  Combining direct plus indirect contributions, tourism contributed $757m in GSP to the ACT economy.  
The ACT tourism industry contributes approximately 11,400 jobs to the ACT economy through direct and indirect employment in the ACT.  The ACTC has commissioned Access Economics to conduct a yearly study into the value of tourism to the ACT economy.
1.	figures quoted relate to 2002-03.
Strategic Indicator 3
Participation Rates
The percentage of people participating in organised and unorganised
sport and physical activity

Strategic Indicator 4
Elite Athlete Participation

Number of ACT Academy of Sport athletes
gaining selection for national teams and squads.

Accountability Indicators
	2004‑05
Targets	2004-05
Est. Outcome	2005-06 Targets	
Output Class 1
Economic Development	
Output 1.1 BusinessACT	
a.	Knowledge Fund				
–	% total annual Fund allocated	-	-	100%	
–	Applications received	-	-	90	
–	Applications funded	-	-	25	
–	Applicant expenditure	-	-	$20m	
				
The provision of a range of programs, services and policy formulation to promote the development of the ACT economy, as described in the Economic White Paper.
				
b.	Export Growth Program				
–	% total annual Fund allocated	-	-	100%	
–	Applications received	-	-	60	
–	Applications funded	-	-	55	
–	Applicant expenditure	-	-	$0.8m	
				
The Export Growth Program is a $1m per annum program that provides financial support to ACT firms to offset some of the cost of export development activities. 
				
c.	Industry Capability Network				
–	Companies registered on Database	-	-	800	
–	Enquiries actioned	-	-	50	
–	Value of projects supported	-	-	$430m	
				
The Industry Capability Network (ICN) is a partnership program between the Australian States and New Zealand.  The ICN performs a technical role providing purchasers with a free sourcing service to identify Australian manufacturers capable of supplying those items that would otherwise be imported.  ICN promotes business opportunities for local buyers and sellers. As an example, the ACT ICN will assist to maximise ACT business involvement in the Department of Defence Joint Operations Command facility to be built in nearby regional New South Wales. The ICN is also being used to maximise local industry involvement in the new ACT prison at Hume.
				
d.	Business Springboard Program				
–	Number of companies assisted	-	-	50	
				
The Business Springboard Program is aimed at businesses that wish to discuss and receive feedback on challenges, strategic issues and opportunities that arise in the process of business growth. The program will bring together panels of experts to assist businesses overcome commercialisation and business impediments.
	
e.	Priority Industry Sectors - Sector Development Activities	
–	Industry Sector Strategies developed	-	-	6	
–	Companies introduced to BusinessACT programs through Sector channels	-	-	30	
–	Seminars/Events	-	-	9	
–	Trade Missions conducted	-	-	3	
In conjunction with the Canberra Partnership Board, develop and implement agreed strategies that will build critical mass and economic activity in key industry sectors.
Accountability Indicators cont.
	2004‑05
Targets	2004-05
Est. Outcome	2005-06 Targets	
Output Class 1 cont.
Economic Development cont.	
Output 1.1 BusinessACT cont.	
f.	Policy Development	
–	Canberra Partnership Board meetings	-	-	6	
–	Small and Micro Business Advisory Council meetings	-	-	4	
–	National Trade Consultations	-	-	2	
–	Industry and Technology Ministerial Council and related subcommittees 	-	-	5	
–	Small Business Ministerial Council 	-	-	1	
–	National Executives of Small Business Agencies 	-	-	2	
				
Undertake leading edge policy development supported by strategic research and input from the Government’s business advisory mechanisms (The Canberra Partnership and the Small and Micro Business Advisory Council).
At the national policy development level, actively participate in the COAG trade and industry advisory councils and related forums.
	
g.	Canberra Business Advisory Service (CanBAS)	
–	New Clients assisted	1  400	1  000	1  400	
–	Total Clients assisted	2  700	2  700	2  700	
–	Seminars delivered	23	23	23	
				
CanBAS is a service funded by the Government and delivered by a private provider.  It assists business operators with advice and support in the establishment, operation and development of their businesses in the Canberra region.
				
	2004‑05
Targets	2004-05
Est. Outcome	2005-06 Targets	
Output 1.2 Small Business Commissioner	
a.	Development of a small business mediation service	-	-	1	
b.	Development of a model business customer service charter as the basis of negotiations with relevant government agencies on the development of individual agency specific business customer service charters	-	-	1	
c.	Consultation with, and improving the profile of, the Small Business Commissioner with the ACT community, particularly the business community	-	-	1	
				
The role of the Office of the Small Business Commissioner will be to enhance a competitive, cooperative and fair operating environment for small businesses in the ACT.  The Small Business Commissioner is a statutory appointment whose duties include the development of a dispute mediation service involving small business; development of customer service charters for government agencies; promoting informed decision making by small business and advising government on small business issues.  The Small Business Commissioner commenced on 1 March 2005 and the work program and targets for 2005‑06 are currently being refined.

Accountability Indicators cont.
Output Class 1 cont.
Economic Development cont.	2004‑05
Targets	2004-05
Est. Outcome	2005-06 Targets	
Output 1.3 Tourism	
a.	Results from Advertising & Branding Campaign measured by awareness1				
–	Adelaide	-	-	10% to 14%	
–	Sydney	-	-	9% to 13%	
–	Brisbane	-	-	5% to 9%	
–	Regional NSW	-	-	14% to 18%	
b.	Survey results from ACT/Canberra Community of their confidence in recommending visitors to the ACT.	-	-	Benchmark to activity conducted in April 05	
c.	Survey results of preference to travel to the ACT within 2 years in the target market2	-	-		
–	Adelaide	-	-	5% to 9%	
–	Sydney	-	-	12% to 16%	
–	Brisbane	-	-	5% to 9%	
–	Regional NSW	-	-	12% to 16%	
d.	Number of visits to the web site: visitcanberra.com.au	-	-	660  000	
e.	Number of interstate and international visitors to ACTC Events				
–	Floriade 2005	-	-	132  000 	
–	2006 Subaru Rally of Canberra (SROC)	-	-	4  000 	
f.	Overall industry satisfaction with ACTC	-	-	80%	
				
1.	Awareness as defined by Roy Morgan Research Holiday Tracking survey (Average 12 month rolling awareness to June 2006)
2.	Preference to Travel as defined by Roy Morgan Research Holiday Tracking survey (Average 12 month rolling preference to travel as at 30 June 2006)
3.	Due to time lags in obtaining results from Roy Morgan, those targets measured by Roy Morgan are based on March 2005 to March 2006 quarter.

Accountability Indicators cont.

Output Class 2
Sport, Recreation, Gaming and Racing	2004‑05
Targets	2004-05
Est. Outcome	2005-06 Targets	
Output 2.1 Sport, Recreation and Racing Sector Development	
a.	Number of programs implemented	-	-	9	
b.	Value of grants				
–	sport and recreation	-	-	$2  409  385	
–	racing	-	-	$3  792  000	

	2004‑05
Targets	2004-05
Est. Outcome	2005-06 Targets	
Output 2.2 Athlete Scholarships and Services	
a.	Athlete scholarships				
–	number of scholarships	265	250	250	
–	cost of scholarship	-	-	$6  226	

	2004‑05
Targets	2004-05
Est. Outcome	2005-06 Targets	
Output 2.3 Facilities Planning and Usage	
a.	Facilities planning and usage				
–	number of planning projects undertaken	-	-	3	
–	number of ARL/RU/RL games held at Manuka Oval and Canberra Stadium	-	-	23	

Budgeted Financial Results
Section 31 of the Financial Management Act 1996 (FMA) states that Chief Executives are responsible for achievement of financial results.  For the purpose of Section 31 of the FMA, key budgeted results are specified in the Budget Papers to improve accountability.  An outcome of increased accountability is the requirement for Chief Executives to explain material variances from specified budgeted results.
In accordance with Section 31 of the FMA, the following are the key budgeted results for the Department of Economic Development in 2005‑06:
•	Operating Result ($1.113m deficit) – this measure focuses on the financial performance of the Department.  The deficit mainly results from the non‑cash expense of depreciation ($1.104m).  The Department will manage its resources to achieve or improve the budgeted operating result;
•	Current Ratio (1.24:1)1 – the current ratio is an indication of the ability to fund short‑term liabilities from short-term assets.  The Department has sufficient funds to cover its short‑term liabilities;
•	Total Assets ($48.567m) – this measure focuses on the Department’s ability to manage its assets base, which mainly relates to Manuka Oval, convention and exhibition facilities; and 
•	Total Liabilities ($2.666m) – this measure focuses on maintaining prudent levels of liabilities as required by Section 11 of the FMA.  Liability levels are considered prudent for the Department, as sufficient short-term funds exist to cover payment of all liabilities.
1	Total current assets / total current liabilities

Changes to Appropriation
Changes to Appropriation - Departmental						
 	2004-05	2005-06	2006-07	2007-08	2008-09	
Government Payment for Outputs	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2004-05 Budget	    0	    0	    0	    0	    0	
						
2nd Appropriation						
Manuka Oval Subsidy	    142	    0	    0	    0	    0	
Wage Negotiations	    136	    150	    178	    177	    177	
						
2005-06 Budget Policy Adjustments						
Albert Hall Upgrade	    0	    40	    0	    0	    0	
Knowledge Fund	    0	    0	    0	    0	  3  000	
Lyneham Precinct Development (Stage 1)	    0	    200	    0	    0	    0	
Manuka Oval Improvements and Operating Subsidy	    0	    770	    450	    450	    450	
Treasurers Advance - Fairbairn Motor Sports	    100	    0	    0	    0	    0	
General Savings	    0	-1  795	-1  795	-1  795	-1  795	
						
Agency Funded Initiatives						
Kids at Play	    0	100	150	150	150	
Priority Industry Sectors Support Program	    0	    232	    373	    382	    392	
Internally Generated Savings	    0	-332	-523	-532	-542	
						
2005-06 Budget Technical Adjustments						
Revised Indexation Parameters	    0	    0	    0	    0	    378	
	Wage Negotiations	    0	    3	    3	    3	    3	
Transfer of BusinessACT from Chief Minister's Department	  26  826	  34  154	  31  314	  29  746	  30  022	
Transfer of Gambling and Racing from Department of Treasury	  2  549	  4  082	  4  177	  4  246	  4  300	
Transfer of Sport and Recreation from Chief Minister's Department	  6  525	  10  198	  10  167	  10  341	  10  515	
Communication Contract Savings	    0	-70	-104	-104	-104	
Rollover - BusinessACT	-3  054	  3  054	    0	    0	    0	
National Convention Centre	    150	    0	    0	    0	    0	
						
2005-06 Budget 	  33  374	  50  786	  44  390	  43  064	  46  946	

Changes to Appropriation - Territorial						
 	2004-05	2005-06	2006-07	2007-08	2008-09	
Payment for Expenses on Behalf of Territory	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2004-05 Budget	    0	    0	    0	    0	    0	
						
2nd Appropriation						
Wage Negotiations	    4	    0	    0	    0	    0	
						
2005-06 Budget Policy Adjustments						
Racing Development Fund	    492	    0	    0	    0	    0	
						
2005-06 Budget Technical Adjustments						
Transfer of Sport and Recreation from Chief Minister's Department	    221	    0	    0	    0	    0	
Transfer of Gambling and Racing from Department of Treasury	  3  251	  7  029	  7  231	  7  439	  7  439	
						
2005-06 Budget 	  3  968	  7  029	  7  231	  7  439	  7  439	

Changes to Appropriation - Departmental						
 	2004-05	2005-06	2006-07	2007-08	2008-09	
Capital Injections	Est. Outc.	Budget	Estimate	Estimate	Estimate	
 	$'000	$'000	$'000	$'000	$'000	
						
2004-05 Budget	    0	    0	    0	    0	    0	
						
2005-06 Budget Technical Adjustments						
Transfer of BusinessACT from Chief Minister's Department	  9  980	  30  000	    0	    0	    0	
Rollover - National Convention Centre	-9  980	-170	  10  000	    0	    0	
Transfer of Sport and Recreation from Chief Minister's Department	  1  580	    0	    0	    0	    0	
Rollover - Manuka Oval Subsidy	-620	    620	    0	    0	    0	
Treasurers Advance - Manuka Oval Upgrade Handrail	    200	    0	    0	    0	    0	
						
2005-06 Budget 	  1  160	  30  450	  10  000	    0	    0	

2005-06 Capital Works Program
Departmental
 	Estimated	Estimated	2005-06	2006-07	2007-08	Expected 	
	Total	Expenditure	Financing	Financing	Financing	Completion 	
	Cost	Pre 2005-06				Date  	
 	$’000	$’000	$’000	$’000	$’000	 	
							
New Capital Works							
Albert Hall 	40	-	40	-	-	Jun 2006	
Lyneham Precinct Development	200	-	200	-	-	Jun 2006	
							
Total New Capital Works	240	-	240	-	-	 	
 	 	 	 	 	 	 	
Works in Progress							
							
Manuka Oval – Weather Protection	1  065	  555	  510	-	-	Jul 2005	
Manuka Oval – Boundary Fence/ New Southern Entrance	715	405	310	-	-	Jul 2005	
Convention and Exhibition Facilities	40 000	170	29 830	10 000	-	Dec 2006	
							
Total Works in Progress	41  780	1  130	30  650	10  000	  -	 	
	 	 	 	 	 		
 Total Departmental Capital Works	42  020	1  130	30  890	10  000	  -	 	

Commonwealth Grants
The major Commonwealth payment for which the Portfolio has responsibility is:
Name of Grant	Activities Funded by Grant	2005‑06
Estimate
$’000	
Sport Participation Development 	Sports Development Services	80	
	Disability Education Program	13	
	Indigenous Sports Program	65	

Total	158

Department of Economic Development	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Government Payment for Outputs	33  374	50  786	52	44  390	43  064	46  946		
0		User Charges - Non ACT Government	5	45	800	46	47	49		
0		Other Revenue	66	85	29	85	85	85		
0		Resources Received free of charge	3  985	3  958	-1	3  958	3  958	3  958		
0		Total Revenue	37  430	54  874	47	48  479	47  154	51  038		
		Gains								
0		Total Gains	0	0	-	0	0	0		
0		Total Income	37  430	54  874	47	48  479	47  154	51  038		
		Expenses								
0		Employee Expenses	4  232	6  442	52	6  866	7  094	7  322		
0		Superannuation Expenses	578	919	59	953	984	1  014		
0		Supplies and Services	5  704	7  389	30	7  157	7  350	7  546		
0		Depreciation and Amortisation	581	1  104	90	2  298	3  618	3  605		
0		Grants and Purchased Services	36  895	40  133	9	33  503	31  726	35  156		
0		Total Ordinary Expenses	47  990	55  987	17	50  777	50  772	54  643		
0		Operating Result	-10  560	-1  113	89	-2  298	-3  618	-3  605		

Department of Economic Development	
Balance Sheet	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
0		Cash	1  984	1  992	..	1  992	1  993	1  999		
0		Receivables	110	110	-	110	110	110		
0		Investments	374	387	3	388	401	415		
0		Total Current Assets	2  468	2  489	1	2  490	2  504	2  524		
		Non Current Assets								
0		Property, Plant and Equipment	16  414	16  248	-1	53  780	50  162	46  557		
0		Intangibles	118	0	-100	0	0	0		
0		Capital Works in Progress	200	29  830	#	0	0	0		
0		Total Non Current Assets	16  732	46  078	175	53  780	50  162	46  557		
0		TOTAL ASSETS	19  200	48  567	153	56  270	52  666	49  081		
		Current Liabilities								
0		Payables	1  100	1  100	-	1  100	1  100	1  100		
0		Employee Benefits	887	913	3	914	928	948		
0		Total Current Liabilities	1  987	2  013	1	2  014	2  028	2  048		
		Non Current Liabilities								
0		Employee Benefits	649	653	1	653	653	653		
0		Total Non Current Liabilities	649	653	1	653	653	653		
0		TOTAL LIABILITIES	2  636	2  666	1	2  667	2  681	2  701		
0		NET ASSETS	16  564	45  901	177	53  603	49  985	46  380		
		REPRESENTED BY FUNDS EMPLOYED								
0		Accumulated Funds	14  809	44  146	198	51  848	48  230	44  625		
0		Reserves	1  755	1  755	-	1  755	1  755	1  755		
0		TOTAL FUNDS EMPLOYED	16  564	45  901	177	53  603	49  985	46  380		

Department of Economic Development	
Cash Flow Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
0		Cash from Government for Outputs	33  374	50  786	52	44  390	43  064	46  946		
0		User Charges	5	45	800	46	47	49		
0		Other Revenue	889	1  751	97	1  325	1  252	1  453		
0		Operating Receipts	34  268	52  582	53	45  761	44  363	48  448		
		Payments								
0		Related to Employees	4  827	7  331	52	7  818	8  064	8  316		
0		Related to Supplies and Services	5  391	7  390	37	7  156	7  351	7  547		
0		Grants and Purchased Services	32  489	36  174	11	29  546	27  767	31  197		
0		Other	933	1  666	79	1  240	1  167	1  368		
0		Operating Payments	43  640	52  561	20	45  760	44  349	48  428		
0		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-9  372	21	100	1	14	20		
		CASH FLOWS FROM INVESTING ACTIVITIES								
		Payments								
0		Purchase of Property, Plant and Equipment	3  240	30  450	840	10  000	0	0		
0		Investing Payments	3  240	30  450	840	10  000	0	0		
0		NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	-3  240	-30  450	-840	-10  000	0	0		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
0		Capital Injection from Government	1  160	30  450	#	10  000	0	0		
0		Receipt of Transferred Cash Balances	13  810	0	-100	0	0	0		
0		Financing Receipts	14  970	30  450	103	10  000	0	0		
0		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	14  970	30  450	103	10  000	0	0		
0		NET INCREASE/(DECREASE) IN CASH HELD	2  358	21	-99	1	14	20		
0		CASH AT BEGINNING OF REPORTING PERIOD	0	2  358	#	2  379	2  380	2  394		
0		CASH AT THE END OF THE REPORTING PERIOD	2  358	2  379	1	2  380	2  394	2  414		

Department of Economic Development	
Statement of Changes in Equity	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
0		Opening Balance	0	16  564	#	45  901	53  603	49  985		
		Accumulated Funds								
0		Operating Result for the Period	-10  560	-1  113	89	-2  298	-3  618	-3  605		
		Reserves								
0		Increase/(Decrease) in asset revaluation reserve	1  755	0	-100	0	0	0		
0		Total Income And Expense For The Period	-8  805	-1  113	87	-2  298	-3  618	-3  605		
		Transactions Involving Equity Holders Affecting Accumulated Funds								
0		Capital Injections	1  160	30  450	#	10  000	0	0		
0		Inc/Dec in Net Assets due to Admin Restructure	24  209	0	-100	0	0	0		
0		Closing Balance	16  564	45  901	177	53  603	49  985	46  380		
Notes to the Budget Statements
The Department was created following the announcement of the Administrative Arrangement Orders (AAO) on 4 November 2004.  No estimates were contained in the 2004-05 Budget for this entity.  Funds were transferred from the Chief Minister’s Department and the Department of Treasury to create the Department.  This accounts for the variances between the 2004‑05 Budget and 2004‑05 estimated outcome figures.
The notes below identify variances arising for reasons other than AAO transfers.
Significant variations are as follows:
Operating Statement
•	government payment for outputs:  the increase of $17.412m in the 2005‑06 Budget from the 2004‑05 estimated outcome is due to the full-year effect of the AAO transfers ($12.534m), increased rollover of BusinessACT program funds (mainly the Knowledge Fund grants - $6.108m) and new budget initiatives funding, including Manuka Oval improvements and operating subsidy initiatives ($0.770m).  This is partially offset by general savings ($1.795m); 
•	employee and superannuation expenses:  the increase of $2.551m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to the full-year effect of the AAOs ($2.432m);
•	supplies and services:  the increase of $1.685m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to the full-year effect of the AAOs ($1.903m), feasibility funding for the Lyneham Precinct Development ($0.2m) and Albert Hall upgrade ($0.040m), partially offset by general savings ($0.386m);
•	depreciation and amortisation:  the increase of $0.523m in the 2005‑06 Budget from the 2004‑05 estimated outcome primarily relates to full‑year depreciation expenses; and
•	grants and purchased services:  the increase of $3.238m in the 2005‑06 Budget from the 2004‑05 estimated outcome is primarily due to the full-year effect of the AAOs ($8.310m), the increase in the rollover of the Knowledge Fund grant ($5.666m), and initiative funding for the Manuka Oval improvements and operating subsidy initiatives ($0.770m).  This is partially offset by a one‑off grant payment occurring in 2004‑05 ($10m) and general savings ($1.359m) applied to payments for the ACT Capital Tourism Corporation (ACTC) and ACT Gambling and Racing.
Balance Sheet
•	Capital works in progress:  the increase of $0.2m in the 2004‑05 estimated outcome from the original budget represents the planned Manuka Oval handrail upgrade.  The increase of $29.630m in 2005‑06 Budget from the 2004‑05 estimated outcome largely relates to the capital outlays for the Convention and Exhibition Facilities ($29.830m).
Cash Flow Statement
•	Purchase of property, plant and equipment:  the increase of $3.240m in the 2004‑05 estimated outcome from the original budget represents capital outlays for the Northbourne Avenue fit-out ($2.080m) and Manuka Oval improvements ($1.160m).  The increase of $27.210m in the 2005‑06 Budget from the 2004‑05 estimated outcome is mainly due to capital outlays for the Convention and Exhibition Facilities.
Statement of Changes in Equity
•	Capital injections:  the increase of $29.290m in the 2005‑06 Budget from the 2004‑05 estimated outcome is primarily due to funding for the Convention and Exhibition Facilities.

Department of Economic Development	
Statement of Income and Expenses on Behalf of the Territory	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Payment for Expenses on behalf of Territory	3  968	7  029	77	7  231	7  439	7  439		
0		Grants from the Commonwealth	79	158	100	158	158	158		
0		Interest	89	56	-37	10	21	21		
0		Other Revenue	3  882	6  338	63	6  515	6  697	6  867		
0		Total Revenue	8  018	13  581	69	13  914	14  315	14  485		
		Gains								
0		Total Gains	0	0	-	0	0	0		
0		Total Income	8  018	13  581	69	13  914	14  315	14  485		
		Expenses								
0		Grants and Purchased Services	5  255	7  435	41	6  480	6  666	6  666		
0		Transfer Expenses	2  763	6  146	122	7  434	7  649	7  819		
0		Total Ordinary Expenses	8  018	13  581	69	13  914	14  315	14  485		
0		Operating Result	0	0	-	0	0	0		

Department of Economic Development	
Statement of Assets and Liabilities on Behalf of the Territory	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
		Current Assets								
0		Receivables	1  198	1  198	-	1  198	1  198	1  198		
0		Investments	145	145	-	145	145	145		
0		Total Current Assets	1  343	1  343	-	1  343	1  343	1  343		
0		TOTAL ASSETS	1  343	1  343	-	1  343	1  343	1  343		
0		NET ASSETS	1  343	1  343	-	1  343	1  343	1  343		
		REPRESENTED BY FUNDS EMPLOYED								
0		Accumulated Funds	1  343	1  343	-	1  343	1  343	1  343		
0		TOTAL FUNDS EMPLOYED	1  343	1  343	-	1  343	1  343	1  343		

Department of Economic Development	
Budgeted Statement of Cashflows on Behalf of the Territory	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		CASH FLOWS FROM OPERATING ACTIVITIES								
		Receipts								
0		Cash from Government for EBT	3  968	7  029	77	7  231	7  439	7  439		
0		Interest Received	89	56	-37	10	21	21		
0		Grants Received from the Commonwealth	79	158	100	158	158	158		
0		Other Revenue	3  873	6  338	64	6  515	6  697	6  867		
0		Operating Receipts	8  009	13  581	70	13  914	14  315	14  485		
		Payments								
0		Grants and Purchased Services	5  255	7  435	41	6  480	6  666	6  666		
0		Territory Receipts to Government	3  952	6  146	56	7  434	7  649	7  819		
0		Operating Payments	9  207	13  581	48	13  914	14  315	14  485		
0		NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	-1  198	0	100	0	0	0		
		CASH FLOWS FROM FINANCING ACTIVITIES								
		Receipts								
0		Receipt of Transferred Cash Balances	1  343	0	-100	0	0	0		
0		Financing Receipts	1  343	0	-100	0	0	0		
0		NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	1  343	0	-100	0	0	0		
0		NET INCREASE/(DECREASE) IN CASH HELD	145	0	-100	0	0	0		
0		CASH AT BEGINNING OF REPORTING PERIOD	0	145	#	145	145	145		
0		CASH AT THE END OF THE REPORTING PERIOD	145	145	-	145	145	145		

Department of Economic Development	
Statement of Changes in Equity on Behalf of the Territory	
    Budget			Est.Outcome	   Planned		   Planned	   Planned	   Planned		
as at 30/6/05			as at 30/6/05	as at 30/6/06	   Var	as at 30/6/07	as at 30/6/08	as at 30/6/09		
   $'000			   $'000	    $'000	    %	    $'000	    $'000	    $'000		
0		Opening Balance	0	1  343	#	1  343	1  343	1  343		
		Accumulated Funds								
0		Operating Result for the Period	0	0	-	0	0	0		
		Reserves								
0		Inc/Dec in Net Assets due to Admin Restructure	1  343	0	-100	0	0	0		
0		Closing Balance	1  343	1  343	-	1  343	1  343	1  343		
Notes to the Budget Statements
The Department was created following the announcement of the Administrative Arrangement Orders (AAO) on 4 November 2004.  No estimates were contained in the 2004-05 Budget for this entity.  Funds were transferred from the Chief Minister’s Department and the Department of Treasury to create the Department.  This accounts for the variances between the 2004‑05 Budget and 2004‑05 estimated outcome figures.
The notes below identify variances arising for reasons other than AAO transfers.
Significant variations are as follows:
Statement of Income and Expenses on Behalf of the Territory
•	Grants and purchased services:  the increase of $2.180m in the 2005-06 Budget from the 2004-05 estimated outcome is mainly due to the full‑year effect of the AAO transfer ($2.897m), partially offset by the discontinuation of subsidies to the Stadiums Authority ($0.225m).

Economic Development	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Government Payment for Outputs	24  004	35  946	50	30  002	28  432	32  086		
0		User Charges - Non ACT Government	5	45	800	46	47	49		
0		Resources Received free of charge	3  985	3  958	-1	3  958	3  958	3  958		
0		Total Revenue	27  994	39  949	43	34  006	32  437	36  093		
		Gains								
0		Total Gains	0	0	-	0	0	0		
0		Total Income	27  994	39  949	43	34  006	32  437	36  093		
		Expenses								
0		Employee Expenses	2  475	3  792	53	4  123	4  258	4  392		
0		Superannuation Expenses	306	605	98	622	641	661		
0		Supplies and Services	3  833	4  654	21	4  582	4  704	4  828		
0		Depreciation and Amortisation	347	488	41	1  681	3  008	3  003		
0		Grants and Purchased Services	31  368	30  904	-1	24  679	22  834	25  834		
0		Total Ordinary Expenses	38  329	40  443	6	35  687	35  445	38  718		
0		Operating Result	-10  335	-494	95	-1  681	-3  008	-2  625		

Sport, Recreation, Gaming and Racing	
Operating Statement	
  2004-05			  2004-05	   2005-06		  2006-07	  2007-08	  2008-09		
    Budget			Est.Outcome	   Budget	   Var	  Estimate	   Estimate	  Estimate		
    $'000			   $'000	   $'000	    %	   $'000	    $'000	   $'000		
		Income								
		Revenue								
0		Government Payment for Outputs	9  370	14  840	58	14  388	14  632	14  860		
0		Other Revenue	66	85	29	85	85	85		
0		Total Revenue	9  436	14  925	58	14  473	14  717	14  945		
		Gains								
0		Total Gains	0	0	-	0	0	0		
0		Total Income	9  436	14  925	58	14  473	14  717	14  945		
		Expenses								
0		Employee Expenses	1  749	2  564	47	2  659	2  750	2  841		
0		Superannuation Expenses	280	400	43	415	429	442		
0		Supplies and Services	1  871	2  735	46	2  575	2  646	2  718		
0		Depreciation and Amortisation	234	616	163	617	610	602		
0		Grants and Purchased Services	5  527	9  229	67	8  824	8  892	9  322		
0		Total Ordinary Expenses	9  661	15  544	61	15  090	15  327	15  925		
0		Operating Result	-225	-619	-175	-617	-610	-980