Port Hedland Port Authority Annual Report 2011 - Parliament of ...

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The PHPA and the Board are committed to achieving
and demonstrating the highest standard of
corporate governance. This commitment was
augmented during 2011 with the expansion of
the Port’s general management team to include
a General Manager, Risk and Governance.
The relationship between the Board and senior
management is critical to the PHPA’s long term success.
The Board has adopted the following corporate
governance principles to enhance the interests of the
government shareholder and other
key stakeholders.
Legislative Framework
The PHPA is a commercialised trading entity under the
Port Authorities Act 1999. The Act defines the functions
of the Port Authority to include the following:
a) The facilitation of trade, and planning for future
growth and development of the Port for the
economic benefit of the State.
b) The control of the operations and business of the
Port.
c) The safe and efficient operation of the Port.
d) The maintenance and preservation of property
vested in the Port.
e) The protection of the Port environment, and
minimising the impact of Port activities on that
environment.
The Act further defines the accountability of the Port to
the State Government.
While the PHPA is substantially exempt from the
provisions of the Public Sector Management Act 1985,
it is still subject to audit by the Auditor General, and the
Public Sector Commissioner may direct the Board to
report to the Commissioner.
Board of Directors
The role of the Board is to “perform the functions,
determine the policies and control the affairs of the
Port authority”. In carrying out its responsibilities and
exercising its powers, the Board at all times recognises
its overriding responsibility to act honestly, fairly,
diligently and in accordance with the law in serving the
interests of State of Western Australia, as well as its
employees, customers, and the community.
The responsibilities of the Board include the following:
• Providing strategic guidance to the PHPA including
contribution to the development and approval of
corporate strategy.
• Reviewing and approving business plans, annual
budgets and financial plans for Ministerial consent,
including available resources and major capital
expenditure initiatives.
• Overseeing and monitoring the following:
• Organisational performance and the
achievement of the PHPA’s strategic goals and
objectives, including safety, environment and
human resources.
• Compliance with the PHPA’s Code of Conduct
and policies.
• The financial performance of the PHPA against
its budgets.
• Facilitating and protecting the interests of the
Western Australian Government, as shareholder.
• Appointment, performance assessment and, if
necessary, removal of the Chief Executive Officer.
• Ratifying the appointment and/or removal and
contributing to the performance assessment for the
members of the senior management team.
• Enhancing and protecting the reputation of the PHPA;
• Overseeing the operation of the PHPA’s system
for legal compliance, corporate governance and
enterprise risk management.
Composition of Board
The PHPA has six non-executive directors, including the
Chairperson. The six directors comprise five Ministerial
appointments, plus one industry-nominated Board
Director. The Board meets once a month and as required
during the year when special meetings may be called.
Appointments and Retirement of Directors
The appointment of a Director is by the Minister in
accordance with Section 7 (1) of the Port Authorities Act
1999. Directors are appointed for periods of up to three
years and are eligible for reappointment. The Minister
may at any time remove a Director from office and is not
required to give any reason for doing so. The Minister
appoints a Director as Chairman and another as Deputy
Chairman.
• Articulating the PHPA’s values, vision, mission and
strategies.