2004-05 Annual Report - Australia Post

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Australia Post Annual Report 2004/05 Financial and Statutory Reports Statutory reporting requirements | 112 | STATUTORY REPORTING REQUIREMENTS FOR THE YEAR ENDED 30 JUNE 2005 INTRODUCTION Australia Post is subject to various statutory reporting requirements under the Australian Postal Corporation Act 1989, the Commonwealth Authorities and Companies Act 1997, the Freedom of Information Act 1982, the Occupational Health and Safety (Commonwealth Employment) Act 1991, the Superannuation Benefits (Supervisory Mechanisms) Act 1990, and the Environment Protection and Biodiversity Act 1999. The index on pages 102–103 shows where the relevant information can be found in this annual report. A number of matters are dealt with in the main body of the report. Others are covered below. LEGISLATION The powers and functions of Australia Post are set out in Sections 14–19 of the Australian Postal Corporation Act 1989 (the Act). Post’s principal function is to supply postal services within Australia and between Australia and other countries. Australia Post may also carry on any business or activity, either domestically or internationally, that relates or is incidental to the supply of postal services. BOARD OF DIRECTORS The board may consist of up to nine directors. Membership during the 2004–05 financial year was: Linda B Nicholls – Chairman David A Mortimer – Deputy Chairman Graeme T John – Managing Director Mark A Birrell Margaret M Gibson (appointed 2 September 2004) Peter A McLaughlin Sandra V McPhee Edward D Tweddell (deceased 4 August 2005) Ian K Warner (re-appointed 2 September 2004) Australia Post has in place a Directors’ and Officers’ Liability insurance policy. The policy, which expires in February 2006, provides cover in respect of any person who is or was a director or officer of Australia Post, when acting in these capacities. Australia Post also maintains a separate insurance policy which provides cover to all former directors or officers of the corporation. This policy, which expires in February 2015, provides cover in respect of any matters arising from the time such persons were a director or officer of Australia Post. Confidentiality requirements within the insurance contracts prohibit any additional disclosures. Directors of Australia Post are also indemnified by the corporation to the extent permitted by law against any liability incurred in their capacity as a director. CORPORATE PLAN Each year Australia Post prepares a rolling three-year corporate plan. The 2004–05 plan and associated Statement of Corporate Intent were submitted to the shareholder ministers in June 2004. Objectives The main objectives of the plan, over the triennium, were to: ° meet all of Post’s community service obligations and become the first choice for customers for all products and services offered ° maintain low cost of production and high staff commitment ° expand business to provide substitute profit growth for otherwise mature businesses ° grow current profitability levels and shareholder value. Strategies Australia Post’s overarching strategy continues to be to defend and extend the core business and to establish leadership positions in substitute markets and in activities with growth potential, where it is possible to fully capitalise on our existing strengths. To support this, the corporation has pursued five strategies that maintain and grow revenue from our existing core business operations in Letters, Retail and agency services, and Parcels and logistics. The strategies and their main associated programs were: Increase revenue in the consumer segment by offering additional, related products and services by: ° matching the product mix to outlet demographics, as well as differentiating product ranges by customer segments, such as small-to-medium enterprises ° increasing sales through licensed post offices through enhanced training, support and incentive programs. Partner with business customers to help them deliver goods to, and engage with, their customers by upgrading our services through: ° targeting businesses with parcels and logistics requirements that are suited to our network and those of our partners ° broadening the range of agency services. Maintain revenue in the letters business through aggressive marketing of direct mail and by making letters easier to use through: ° stimulating the growth of mail marketing by positioning it as an effective advertising medium ° defending transactional mail from competitive threats, including substitution, by simplifying the production and lodgement of bulk mail ° extending the use of desktop hybrid mail to make mail production as easy as e-mail. Continue to reduce costs across the business through process improvement and better mail processing technology utilisation by:
° realising the full benefits of technology investments for letters and parcels by reducing manual operations in mail centres, restructuring the parcels processing network and improving the productivity of the vehicle fleet ° reducing the “real” costs in the retail network by creating a portfolio of retail outlet formats to suit the requirements of different customer segments. Improve parcels and logistics services to provide a reliable Australian carrier for businesses in the Asia–Pacific region by: ° ensuring that our international express capability is competitive with that of global operators ° establishing a logistics hub in China with China Post. Targets Key financial and non-financial performance measures set out in the plan were: ° profit before tax averaging $524 million per year ° dividends averaging $214 million over the three years of the plan. Specific targets for 2004–05 and performance against these targets were: Performance Indicator Target Performance On-time letter delivery 94% 94.9% Labour productivity growth 3.7% 2.6% Profit before tax $495m $524.5m Return on average operating assets 16.2% 17.1% Dividend for 2004–05 $206.2m $286.2m GOVERNMENT POLICIES In February 2004, the Minister for Communications, Information Technology and the Arts provided formal notification under s28 of the Commonwealth Authorities and Companies Act 1997 that the Government’s National Code for the Construction Industry and associated implementation guidelines were to apply to all construction-related activity undertaken by and on behalf of Australia Post. The notification has had no major impact on the corporation, as Post had, since their introduction in 1997, made compliance with the code and guidelines a condition of all of its construction-related tenders. Section 49 of the Australian Postal Corporation Act 1989 empowers the Minister to give the board written directions in relation to the performance of Australia Post’s functions as appear to be necessary in the public interest. No notification or direction has been issued under this provision. OTHER GOVERNMENT OBLIGATIONS Administrative law The cost of meeting Commonwealth administrative requirements in 2004–05 is estimated at around $1 million. Pensioner mail redirection The cost of providing pensioner mail redirection concessions for the year was approximately $5.7 million. STATUTORY REPORTING REQUIREMENTS Medical and Educational Remote Area Parcel service The Medical and Educational Remote Area Parcel service provides reduced postage rates for parcels, containing health and education materials, sent to and from people living in remote communities. In 2004–05, revenue foregone is estimated at $28,200. Superannuation FOR THE YEAR ENDED 30 JUNE 2005 During 2004–05 Australia Post complied with all relevant guidelines and made no significant changes to superannuation arrangements for employees. OCCUPATIONAL HEALTH AND SAFETY (OH&S) REPORT The following information is presented in accordance with the requirements of s74 of the Occupational Health and Safety (Commonwealth Employment) Act 1991 (OH&S Act 1991). A number of measures were taken during the year to assist in providing for the health, safety and welfare at work of employees and contractors of the corporation. These included: ° continuing to implement our OH&S Policy and OH&S Agreement ° auditing legislative and corporation policy compliance through the Australia Post Occupational Health and Safety Management System Quality Assurance Program ° maintaining OH&S committees throughout the corporation ° providing OH&S-related training for Health and Safety Representatives, managers, supervisors and staff throughout Australia Post to develop a greater understanding of corporate and statutory requirements ° directing OH&S improvements through OH&S plans at national, State and workplace facility levels. These plans provide for OH&S management systems and supervisory accountability; auditing the effectiveness of the OH&S management system; induction and skills training; compliance with corporate and statutory OH&S requirements; workplace safety audits for hazard identification and control; accident prevention initiatives targeted at priority accident types; and employee involvement in OH&S ° working to reduce the number and severity of major accident types, including motorcycle, manual handling and forklift incidents, through staff training, and identifying and controlling accident risks ° implementing new national procedures and training for machine “lock out, tag out”, safe use of load shifting equipment including fork lift trucks and unit loading devices, safe use and management of “SARS” risks ° ensuring that new and modified equipment and work practices were compliant with safety requirements before activation ° advising contractors on safe work practices. Australia Post Annual Report 2004/05 Financial and Statutory Reports Statutory reporting requirements | 113 |
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