Annual Report for 2006/07 - Metro Tasmania

Directors’ ReportDirectors’ ReportThe Directors of Metro Tasmania Pty Ltd present the annual financialreport for the year ended 30 June 2007.Principal activitiesMetro’s principal activity during the financial year was the provision of buspassenger transport services in the Tasmanian urban centres of Hobart,Launceston and Burnie and to some regional centres around Hobart.Review of operationsFor the year ended 30 June 2007 Metro recorded a profit before incometax of $307,000 (2006:$30,000) and a profit after tax of $ 184,000 (2006:loss of $16,000).A detailed review of operations is contained in the Chairperson’s Reviewand in the Chief Executive Officer’s Review.DividendsThe directors do not recommend payment of a dividend from the profit forthis year. No dividend was paid from the profit recorded in the year ended30 June 2006.Changes in state of affairsThere were no significant changes in the state of affairs of the companythat occurred during the financial year under review.Superannuation DeclarationThe company has met its obligations under the Superannuation Guarantee(Administration) Act 1992 in respect to those employees who are membersof a complying superannuation scheme to which Metro contributes. Thecompany also has a defined benefit scheme, under the Retirement BenefitsAct 1993, which is subject to actuarial valuations and covers current andformer employees.Subsequent eventsThere has not been any matter or circumstance other than that referred toin the financial statements or notes thereto, that has arisen since the endof the financial year, that has significantly affected, or may significantlyaffect, the operation of the entity, the results of those operations, or thestate of affairs of the entity in future financial years.Likely future developmentsMetro will continue to pursue with its mission of providing safe, reliableand quality road passenger transport services that balance stakeholderneeds and sound commercial practices. This will require further capitalexpenditures on new buses, route infrastructure, fare collection systemsand support facilities. In addition, Metro will maintain a watching brief onalternative fuels.Rounding off of amountsMetro is a company of the kind referred to in ASIC Class Order 98/0100dated 10 July 1998 and in accordance with that Class Order amounts inthe Directors’ report and the financial report have been rounded off to thenearest thousand dollars.DirectorsNames of directors in office during and since the end of the financial yearare set out in Note 21 of the financial statements. Directors are appointedfor rolling terms of three years. The Chairperson is appointed annually bythe shareholders.Corporate GovernanceThe board of directors is responsible for the overall corporate governanceof the company. Corporate governance is the system by which theactivities of a company are controlled and coordinated in order for thecompany to achieve its desired outcomes.As a state owned company the Board is responsible to its shareholders,the Minister for Infrastructure, Energy and Resources and the Treasurerin meeting the aspirations of the state government and the board directsmanagement accordingly.The Board performs this role by:• Appointing and monitoring the performance of the ChiefExecutive Officer;• Clearly identifying and enunciating the strategic direction for Metro;• Identifying and addressing the principal risks for Metro;• Monitoring the conduct and performance of the company through anintegrated framework of controls;• Ensuring all Metro’s business is conducted in an honest, open andethical manner; and• Ensuring adequate succession planning is undertakenDirectors’ remunerationFees paid to directors are set by the Minister representing the Crown.Details are set out in Note 21 of the financial statements.During the twelve months, no director has received, or become entitled toreceive, a benefit by reason of a contract made by Metro with a director orwith a firm of which he or she is a member or an entity in which he or shehas a financial interest.Remuneration CommitteeThe Remuneration Committee comprises two non-executive directors andthe CEO. This committee oversees remuneration practices and policies inrelation to senior executives of the company.Audit and risk management CommitteeMetro has an audit committee, which comprises three directors and ischaired by the Deputy Chairperson of the board. The audit committeehas a documented charter, approved by the board. The committee’sresponsibilities under its charter include consideration and monitoringof matters relating to external reporting, risk management, internal andexternal audit functions. The Company Secretary and Chief FinancialOfficer also attend meetings.