Annual Report 2008-2009 - Department of Transport

35 Contingent liabilities and contingent assets
Contingent liabilities
In addition to the liabilities incorporated in the financial statements, the
Department has the following contingent liabilities:
Litigation in progress:
The Department has pending litigation that may affect the financial
position.
- Three actions for compensation against the Department. The
potential maximum financial effect is $228,000.
Contaminated Sites
Under the Contaminated Sites Act 2003, the Department is required
to report known and suspected contaminated sites to the Department
of Environment and Conservation (DEC). In accordance with the Act,
DEC classifies these sites on the basis of the risk to human health,
the environment and environmental values. Where sites are classified
as contaminated - remediation required or possibly contaminated -
investigation required, the Department may have a liability in respect of
investigation or remediation expenses.
Department of Environment and Conservation (DEC) has approved a
program under section 12 of the Contaminated Sites Act 2003 for the
systematic identification, inspection, reporting and treatment of suspected
contaminated sites on Crown land under direct State Land Services (SLS)
management.
Initial inspection of the approximately 10,000 suspected contaminated
sites will be conducted by contractors, with SLS management determining
whether the inspection reports indicate that a site merits further
investigation and reporting to DEC. Subsequent detailed examination
and reporting to DEC will be conducted by duly qualified environmental
consultants and contaminated sites auditors, contracted by SLS.
The extent of the Department’s liability will only be able to be assessed as
DEC progressively classifies sites under a program which is expected to
continue for many years.
Contingent assets
In addition to the assets incorporated in the financial statements, the
Department has the following contingent assets:
Insurance claims:
The Department has pending insurance claims that may affect the
financial position.
- Two actions for the recoupment of costs incurred by the Department
in relation to emergency responses. The potential maximum financial
effect is $255,000.
36 Events occurring after balance sheet date
On 1 July 2009:
- the designation of the Department for Planning and Infrastructure was
altered to Department of Planning
- the operations of Licensing, Marine Safety, Passenger Services, Regional
Services, Rail Safety, Coastal Facilities and their associated assets
and liabilities were transferred to the newly established Department of
Transport.
- the operations of State Land Services and their associated assets and
liabilities were transferred to the newly established Department of
Regional Development and Land.
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