Compliance
Goal 5: Governance
“To govern for all Western Australians in an open, effective and efficient manner that also ensures a sustainable future.”
Continued Improvement
In accordance with section 7(e) of the Public Sector Management Act 1994, the Authority strives for continued improvement in the efficiency and effectiveness of its performance.
The Authority's recent organisational restructure was a major achievement in its commitment to continually improving its performance, as it will enable the Authority to streamline processes, address potential overlap between divisional functions and improve the distribution of workloads.
Expected benefits from the organisational restructure are better administrative synergies and encouraging cross-fertilisation of regulatory approaches.
Further, during the reporting year the Authority reviewed its Delegations Manual with a view to maximising operational efficiency. The Authority may delegate to a member of the Governing Body or a staff member any power or duty of the Authority under the Economic Regulation Authority Act 2003 or under any other written law.
Funding and Pricing
The activities of the Authority were funded by:
- appropriations from Government;
- fees and charges payable in respect of licences issued by the Authority; and
- fees and charges payable by operators of regulated gas pipelines and by other persons in accordance with the provisions of the Economic Regulation Authority (Gas Pipelines Access Funding) Regulations 2003 (gazetted 30 December 2003).
Payments to the Authority by operators of regulated pipelines comprise standing charges and service charges, determined in accordance with Regulations 4 and 6, respectively, of the Economic Regulation Authority (Gas Pipelines Access Funding) Regulations 2003.
Standing Charges comprise charges levied on pipeline operators in respect of costs incurred by the Authority that are not directly attributable to activities in respect of particular pipeline systems. The pipeline operators that are liable for Standing Charges and the percentage allocations of costs between these pipeline operators are set out in Schedule 1 of the Regulations.
The Service Charges payable by pipeline operators comprise charges levied in respect of the performance by the Authority of certain functions listed in Schedule 2 of the Regulations.
The total amounts of Standing Charges and Service Charges paid by pipeline operators in the year ending 30 June 2006 are indicated in the table below.
Standing Charges and Service Charges are assessed in arrears for each pipeline operator. Standing Charges are assessed at the end of each calendar quarter. Service Charges are raised when expenditure has been incurred by the Authority and are issued on a monthly basis.
The Funding Regulations also provide for the Regulator to levy fees for the:
- provision of documents prepared by or on behalf of the Regulator;
- admission to a meeting held by the Regulator for the purposes of public consultation;
- lodgement of notifications of a dispute under section 6.1 of the Gas Code; and
- interest on any outstanding amounts.
Document fees received in 2005-06 amounted to $100.
| Service Provider | Standing Charges ($) |
Service Charges ($) |
|---|---|---|
| AlintaGas Networks Pty Ltd | 143,129 |
110,048 |
| Goldfields Gas Transmission | 126,424 |
55,411 |
| BHP Petroleum (Ashmore Operations) Pty Ltd | 20,193 |
0 |
| Southern Cross Pipelines Pty Ltd | 16,828 |
2,497 |
| DBNGP (WA) Transmission Pty Ltd | 305,350 |
443,259 |
| Total | 611,924 |
611,215 |
Information Statement
The Freedom of Information Act 1992 does not apply to the Authority's regulatory function relating to gas pipeline access. In other respects the Act does apply.
The Authority's Information Statement is available on request in either hard copy form at reception or on the home page of the Authority's website: www.era.wa.gov.au.
During the year under review the Authority processed one freedom of information request made by Gadens Lawyers.
Recordkeeping Plans
During the 2005-06 financial year, there was significant progress towards establishing an efficient and effective Records Management System. The existing system was a combination of predecessor agency procedures and systems and had slowly been customised by the Authority through the development of a Policy and Procedure Manual, a Business Classification Scheme and other supporting documentation.
In late 2005, there was progress towards purchasing an appropriate document management software package to help manage records. However, the Authority was not able to finalise a purchase owing to a decision to implement a Common Use Arrangement (CUA). It is proposed that an appropriate document management system be acquired once the CUA is implemented.
During the year, the Authority evaluated the efficiency and effectiveness of its recordkeeping system. This evaluation led to a decision to seek assistance with developing a comprehensive records management program. A consultant was engaged, and significant progress made.
Progress was also made toward the purchase of a suitable Electronic Information Management System (EIMS) software package. Further work will be done in the coming financial year.
Records management training has been provided during the year to those staff directly involved in managing the Authority's records. It is intended that all staff will receive comprehensive training during the implementation of the EIMS.
The Authority's induction program addresses the role and responsibility of staff to comply with the Authority's recordkeeping plan. The Authority intends to complete the implementation of an EIMS in the coming financial year. This will then provide a more efficient and effective means of managing the Authority's records.
Advertising
In accordance with section 175ZE of the Electoral Act 1907, the Authority has detailed below the expenditure incurred in advertising, market research, polling, direct mail and media advertising.
Total expenditure for the period 1 July 2005 to 30 June 2006 was $123,831.99.
| Expenditure was incurred in the following areas: | |
|---|---|
| Advertising Agencies | $123,831.99 |
| Market Research Organisations | Nil |
| Polling Organisations | Nil |
| Direct Mail Organisations | Nil |
| Media Advertising Organisations | Nil |
| Totals | $123,831.99 |
Note: Amount shown includes GST.
Sustainability
During the 2005-06 financial year, the Authority developed its Sustainability Action Plan in accordance with the Sustainability Code of Practice for Government Agencies and Resource Guide for Implementation (Code).
In its Sustainability Action Plan, the Authority addressed the target and priority areas as laid out in the Code and detailed how these commitments could be implemented. During the 2006-07 financial period, the Authority will endeavour to review its Corporate Plan to ensure that it is better aligned to the sustainability principles contained in Better Planning: Better Services – A Strategic Planning Framework for the Western Australian Public Sector. In addition, the Authority will review its Consultation Guidelines to facilitate meaningful and effective public engagement in decision-making processes, where appropriate. Further, the issue of sustainability will inform appropriate decision-making processes, through the Sustainability Assessment Framework currently being developed by the Department of the Premier and Cabinet.
Other such measures to be implemented through the Sustainability Action Plan involve setting new targets for waste, energy and water reduction and efficiency in line with advice received from the Department of Housing and Works and the Sustainable Energy Development Office.
Equal Employment Opportunity Outcomes
The Authority supports the principles of equity and diversity in the workforce and is committed to promoting equal employment opportunity.
The Authority is developing its Equal Employment Opportunity Management Plan, which is to be completed and approved during the 2006-07 financial year.
Compliance with Human Resource Management Standards
Human resource services are provided by the Department of Treasury and Finance, in accordance with a service-level agreement between the two agencies.
With the exception of the Governing Body and the General Manager, all permanent and contract employees are employed under the provisions of the Public Sector Management Act 1994. The Government Officers Salaries, Allowances and Conditions General Agreement 2004 in conjunction with the Public Service Award 1992 prescribes the conditions of employment for all staff.
All employee recruitment is performed in accordance with the public sector standards in human resource management and the approved procedures under the Act.
In addition to its own permanent employees, the Authority relies on the use of specialist external consultants and contract staff to provide necessary expertise on an “as needed basis”. The creation of a single Authority to regulate a number of functions provides a pool of specialist analysts who can undertake work and contribute to various aspects of each type of infrastructure.
Handling of complaints relating to Human Resource Management Standards is dealt with under the Authority's Code of Conduct, which advises that anyone having a serious concern about the actions of any member of the Authority in relation to the observance of the Code should refer the matter to the General Manager.
Employees and consultants working for the Authority are provided with a copy of the Code of Conduct that sets out policies relating to Human Resource Management Standards.
The Authority has procedures in place and has undertaken appropriate assessments to ensure ongoing compliance with the Public Sector Standards in Human Resource Management.
Compliance is assessed through:
- ensuring consistency of policies with the Standards;
- internal reviews;
- external audits;
- independent checks of individual transactions;
- staff feedback through staff forums; and
- staff feedback from exit interviews.
There were no claims of breach of the Public Sector Standards in Human Resource Management during the reporting period.
Compliance with Codes of Ethics and Codes of Conduct
The Authority has adopted the Western Australian Public Sector Code of Ethics, which provides for the ethical principles of justice, respect for persons and responsible care. In addition, the Authority upholds the values of teamwork, leadership, research and development and encouragement.
All executive staff, employees and consultants providing services to the Authority are bound by the Public Sector Code of Ethics and the Economic Regulation Authority's Code of Conduct.
The Authority's Code of Conduct elaborates on the Public Sector Code of Ethics so as to more clearly relate the broad principles and values to executive personnel, other employees and consultants.
The Authority has complied with the Western Australian Public Sector Code of Ethics and the Authority's Code of Conduct in undertaking its functions.
The Authority has procedures in place and has undertaken appropriate assessments to ensure compliance with the Code of Ethics and the Code of Conduct. Compliance is assessed through:
- external financial audits;
- specific examinations by external agencies;
- internal reviews;
- staff feedback through staff forums;
- staff feedback from exit interviews; and
- the analysis of, and action on, substantiated complaints on issues raised about non-compliance with ethical codes.
No issues of non-compliance with the Code of Ethics or the Code of Conduct arose during the reporting period.
Corruption Prevention
The Authority maintains a comprehensive Code of Conduct to guide Members, management, employees, contractors and consultants in the appropriate manner in which they should conduct themselves and the affairs of the organisation. This includes ensuring that all outcomes and dealings have contributed to the benefit of the community as a whole.
The Authority has an expectation of the behaviour of persons employed or contracted to the organisation. All Members, management, employees, contractors and consultants for the Authority are required to comply with the Authority's Code of Conduct.
The Code of Conduct outlines the measures taken by the Authority to prevent corruption and misconduct, including measures relating to employees' responsibilities with regard to:
- conflicts of interest;
- rewards, gifts and gratuities;
- the use of agency resources; and
- the treatment of official information and communication.
The Code of Conduct sets out that if corruption is suspected or is occurring this should be reported to the General Manager, the Governing Body or the Western Australian Gas Disputes Arbitrator as appropriate. Alternatively, employees are encouraged to obtain advice from the Corruption and Crime Commission.
The Authority has specific obligations concerning the confidentiality of information it receives from third parties. These obligations vary depending on the function the Authority is exercising and the particular legislation governing that function.
In addition, a person who is or has been a Member of the Governing Body or a staff member of the Authority must comply with the obligations set out under section 57 of the Economic Regulation Authority Act 2003 in relation to the treatment of confidential information obtained in the course of duty. A breach of such obligations may attract a penalty of $10,000 or imprisonment for 12 months.
The Authority has put in place measures to ensure all confidential information is secure.
Public Interest Disclosures
Internal procedures relating to the Authority's obligations under the Public Interest Disclosure Act 2003 are in place and have been published in accordance with the guidelines provided by the Office of the Public Sector Standards Commissioner.
During the reporting year, the following Public Interest Disclosure Officers were appointed:
- Ms Nerea Ugarte, Acting Executive Manager, until 19 June 2006; and
- Ms Meg Jones, Acting Executive Manager, from 19 June 2006.