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ALPINE RESORTS CO-ORDINATING COUNCIL

CORPORATE PLAN 2019/20 - 2021/2022

Approved for publication on 18 November 2019 by the Minister for Energy, Environment and Climate Change. Published by the Alpine Resorts Co-ordinating Council 8 Nicholson StEast MelbourneVictoria 3002

ISSN 2203-983X (Online)

© The State of Victoria, Alpine Resorts Co-ordinating Council 2019

This work is licensed under a Creative Commons Attribution 3.0 Australia licence. You are free to re-use the work under that licence, on the condition that you credit the State of Victoria as author. The licence does not apply to any images, photographs or branding, including the Victorian Government logo and the Alpine Resorts Co-ordinating Council logo. To view a copy of this licence, visit http://creativecommons.org/licenses/by/3.0/au/deed.en

A PDF copy of this document is available on www.arcc.vic.gov.au. For further information on this publication contact the Alpine Resorts Co-ordinating Council on (03) 9637 9642.

Disclaimer

This publication may be of assistance to you but the State of Victoria and the Alpine Resorts Co-ordinating Council and their employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

AcknowledgementsPhoto Credit: Tony Harrington, Mount Buller

1 Draft v17 July 2019

Alpine Resorts Co-ordinating Council

Corporate Plan 2019/20 – 2021/22 Executive Summary

The Alpine Resorts Co-ordinating Council (Council) addresses key issues relating to the alpine resorts, including strategic positioning and advocacy, co-operation and research on behalf of the Minister for Energy, Environment and Climate Change (the Minister). The Council’s Corporate Plan 2019/20 – 2021/22 details how the Council will undertake its statutory functions in a manner that continues to support achieving the vision of the legacy Alpine Resorts Strategic Plan 2012 (2012 Plan), namely:

Victoria’s Alpine Resorts will be vibrant, growing and sustainable places, delivering alpine recreational and tourism experiences that are available to all.

Council’s previous corporate plans were guided by this vision and the key actions contained in the 2012 Plan. Until a new industry strategic plan is adopted, it is felt appropriate to retain this agreed vision as an overall guide to developing Council’s Corporate Plan 2019/20 – 2021/22. The Council will continue to oversee and implement the on-going actions previously contained within the 2012 Plan whilst it finalises and then implements the new industry strategic plan. Over the course of 2019/20 and in addition to undertaking its statutory obligations, the Council will also finalise projects and oversee the implementation of the Ministerial Directions issued in 2018 and any further Ministerial Directions and actions associated the new Strategic Plan, to be known as the “Alpine Resorts Strategic plan 2019 – responding to a changing climate” once finalised. Specifically, it will:

Revise the ARMB Master Plan Framework to reflect priorities of the new strategic plan; Monitor and report on the implementation of the new strategic plan; Broadening the collaborative approach for key projects using existing Tourism Destination Action

Plans and Regional Partnership resources; Establish a cross government taskforce as part of the implementation of the new strategic plan to

investigate viability of the green season to support resorts in the longer-term; Lead the development of climate adaptation planning for the alpine sector; Monitor the sector’s adaptation to the impacts of climate change; Implement revised VARDP policy referencing the Climate Change Act 2017; Support ARMBs to develop corporate plans that align with and support the delivery of the Alpine

Resorts Strategic Plan and work with DELWP to review draft corporate plans to identify where amendments may be necessary;

Monitor and report on the implementation of the recommendations of the ‘Business Systems and Services Review of Victoria’s Northern Resorts’;

Monitor implementation and report on the ‘Stakeholder Engagement Plan’s’ ‘Improvement/Action Plan’;

Develop a framework with Traditional Owners to facilitate on-going engagement, the development of partnership plans and understanding of connection to country in alpine areas;

Co-ordinate the staging of an Industry Conference to reflect contemporary industry needs and outcomes of the 2019 Plan;

Consider the likely impact of Vail Resorts entering the Victorian market; Undertake a review of the 2002 Alpine Resorts Leasing Policy on behalf of DELWP; and, Investigate the benefits of undertaking an alpine resort ‘carrying capacity’ study in conjunction with

the NSW Office of Environment and Heritage;


Council’s operating costs continue to be predominately met by contributions from the ARMBs. The accompanying budget outlines the key areas of revenue and expenditure required to meet the obligations of Council’s statutory requirements and the implementation of the Ministerial Directions.


Contents

Executive Summary…………………………………………………………………………………………………………...1

Operating Environment ................................................................................................................ 5

Policy Context .................................................................................................................................. 5

Alpine Industry Context................................................................................................................ 5

Legislative Context ........................................................................................................................ 6

Context of Key Council Relationships .................................................................................... 6

Statement of Corporate Intent .................................................................................................. 8

(a) Objectives .............................................................................................................................. 8

(b) Main Undertakings .............................................................................................................. 8

(c) Nature & Scope of Activities .......................................................................................... 8

Strategic Positioning ...................................................................................................................................9

Co-ordination and Co-operation ..............................................................................................................9

Knowledge and Understanding ................................................................................................................9

Corporate Governance ................................................................................................................................9

(d) Accounting Policies ........................................................................................................... 9

(e) Performance Targets ........................................................................................................ 9

(f) Accountability and Reporting ...................................................................................... 10

Business Plan 2019/20 ................................................................................................................. 11

Activities & Performance Targets ........................................................................................... 12

Financial Plan .................................................................................................................................. 17

Overview .......................................................................................................................................... 17

Budget Assumptions ................................................................................................................... 17

Financial Key Performance Indicators………………………………………………………………………….17

Table 3: Three Year Forward Look of Projected Income and Expenditure ............ 19

Appendicies ..................................................................................................................................... 21

Appendix 1: Alpine Resorts (Management) Act 1997: S. 1A Object ........................... 21

Appendix 2: Council Statutory Functions and Obligations ......................................... 22

Appendix 3: Council Members and Terms of Office as at 1 July 2018 ..................... 23

Appendix 4: Membership of Council Committees as at 1 July 2018 ......................... 24

Appendix 5: Council Secretariat Staff .................................................................................. 25

Appendix 6: Victorian Government’s Alpine Sector KPIs ............................................ 26


Operating Environment

Policy Context The 2012 Plan has been the over-arching policy document for Council since its approval in late 2012. During 2018/19 Council undertook the development of a new industry strategic plan to guide the future of the sector. Until that plan has received approval, the legacy plan (i.e. the 2012 Plan) remains current. The Ministerial Directions issued on 23 March 2018, along with the Climate Change Act 2017, the Victorian Climate Change Framework and associated Victorian Climate Change Adaptation Plan 2017-2020 provide the current policy context within which Council operates. The table below summarises the key actions for which Council was the lead agency that continue to remain in effect from the 2012 Plan. Table 1: Continuing Actions from The Alpine Resorts Strategic Plan 2012 for which Council was the lead agency

21 Develop and implement industry and resort-specific climate adaptation plans.

44 Implement the integrated Victorian Alpine Resorts Development Program of infrastructure priorities for the industry, as a rolling five-year program.

50 Provide financial reports to DELWP, including quarterly financial reports in accordance with legislative and Ministerial requirements.

Alpine Industry Context The following is an overview of the key factors that are currently influencing the alpine industry; The 10-year average data shows winter visitor days spent in alpine resorts is growing at 2.0%

growth per annum for the decade ending 2018. Despite seasonal variation between resorts, the long-term trends remain relatively stable.

Green season visitor numbers have grown at 3.2% per annum since consistent vehicle and visitor surveys commenced in 2008/09. Green season activities are predominantly centred around mountain bike riding and road cycling, although there is an emerging trend around running and music/food events.

Trends in visitor length of stay continue to move from long-stay to short-stay, as reflected in the increasing numbers of day-visitors of varied nationalities. This continues to be most pronounced at resorts closer to Melbourne, affecting decisions in respect of the visitor offer and operational requirements.

Alpine resorts continue to make significant economic and employment contributions to Victoria and to the regions in which they are located. In the winter of 2018 alpine resorts generated $1,076 million in Gross State Product (GSP) and over 10,400 jobs. In the summer of 2018-19 alpine resorts generated $146 million in Gross State Product (GSP) and over 1,400 jobs.

Winter visitation numbers and the associated seasonal economic benefits are closely linked to prevailing weather conditions and the quantity and quality of reported snow.

Cost pressures continue to be a major concern for many on-mountain businesses and site holders. The finances of the ARMBs continue to be constrained, with pressure on controlling costs and

maintaining stable revenue streams, whilst trying to meet stakeholder expectations for better services at lower costs.

Following introduction in 2018 of a new governance model for the northern resorts to improve co-ordination and provide better strategic planning and oversight, a series of Ministerial Directions was issued to both the Council and the ARMBs. Council and ARMBs have had to invest significant time and resources into projects arising out of the Ministerial Directions. There is some uncertainty for the Council and ARMBs as to any resultant implications until Ministerial guidance is provided.

Climate change continues to impact ARMB operations and decision making, including a greater reliance on snow making during the winter season and the consequent pressures on managing production costs and water availability.


Changing demographics and visitation patterns continue to challenge product development and associated marketing across both winter and green seasons, including diversifying ARMB revenue streams and building capacity to benefit from changing markets.

The impact on Victorian visitation arising from the entry of Vail Resorts, which controls a large stable of resorts in North America, as well as Perisher Blue in NSW, into the Victorian market as a result of its purchase of the Falls Creek and Mt Hotham ski lift companies, particularly due to the availability of a single lift pass giving access to all of Vail’s Australian and overseas resorts.

Legislative Context Consistent with the object1 of the Alpine Resorts (Management) Act 1997 (the ‘Act’), the Council was established to plan for and facilitate the establishment, development, promotion, management and use of alpine resorts2. The Act also establishes the ARMBs of Falls Creek, Lake Mountain and Mount Baw Baw (Southern), Mount Buller and Mount Stirling, and Mount Hotham. The ARMBs are responsible to plan for and facilitate the development, promotion, management and use of each such alpine resort and for the provision of a range of services within each such alpine resort. The Council is a statutory authority that reports to the Minister and is subject to the general direction and control of the Minister. The Council is a body corporate and is a public body for the purposes of the Financial Management Act 1994.

Context of Key Council Relationships The Council consists of nine members comprising the chairperson of each of the ARMBs and five persons (including the chairperson)3 appointed on a skills basis by the Governor-in-Council, on the recommendation of the Minister. The Council is serviced by a secretariat led by an Executive Officer who is the Council’s Accountable Officer and is responsible for day to day matters4. An illustration of the key relationships of the Council is provided in Figure 1 below.

From time to time, the Council may establish working groups or steering committees for specific purposes. Three committees have been established under the authority of section 24 of the Act5. The committees are: Audit and Risk Management Committee

Provides assistance to the Council and its Executive Officer to oversee governance responsibilities of financial performance and reporting, audit, risk management, information systems, accounting policies, and monitoring of regulatory compliance.

Co-operation Committee Encourages a culture of co-operation and knowledge sharing between the alpine resorts by assisting in planning, sharing programs, consistent policy application, resources and expertise, and for fostering assistance between the alpine resorts.

Strategic Planning Committee The Committee provides oversight and investigation and research of issues relevant to the alpine resorts, to enable the Council to fulfil its role in strategic planning6 including the review of the Council’s and ARMB Corporate Plans. In addition, the committee oversees the implementation of the relevant strategic planning projects and acts as the assessment panel for VARDP.

The Chart below depicts the current working relationships between the Council, its Committees, the Minister, the ARMBs, DELWP, ARIAG and the Secretariat.

1 For details of the overall object of the Act refer to Appendix 1. 2 Refer to Appendix 2 for an explanation of the statutory functions and obligations of the Council. 3 Refer to Appendix 3 for the list of Council members, as at 1 July 2018. 4 Refer to Appendix 5 for a list of secretariat staff. 5 Refer to Appendix 4 for a list of Committee membership, as at 1 July 2018. 6 This is a function of the Council under section 18(aa) of the Act.


Figure 1: Chart Showing Key Alpine Resorts Co-ordinating Council Relationships


Statement of Corporate Intent

The Statement of Corporate Intent includes the following information, in accordance with section 31 of the Act.

(a) Objectives The objective of the Council is to, on behalf of the Minister,

address key issues relating to the alpine resorts, including strategic positioning and advocacy, co-operation and research.

The role of the Council is at a tactical or systems design level. It plays a key role in taking an industry level perspective to support policy delivery through the ARMBs.

(b) Main Undertakings The Council has four main undertakings:

Strategic Positioning of the Victorian Alpine Resorts. High level strategic activities include positioning of the Victorian Alpine Resorts, leading the implementation of climate adaptation planning, developing sector strategic direction, infrastructure investment and sector advocacy that promotes the interests of the industry.

Co-ordination and Collaboration across stakeholders in the Victorian Alpine Resorts. This program area focuses on matters that are of industry-wide importance and provide mechanisms for enhanced stakeholder engagement across a range of private and public organisations and agencies within Victoria and interstate and to foster collaboration between ARMBs.

Knowledge and Understanding of the Victorian Alpine Resorts. This program area provides for several annual research projects, as well as one-off and less frequent projects, and publication of research reports. Priority is given to tasks of industry-wide benefit and understanding critical factors that may impact on the alpine resorts.

Governance of the Council. This program area focuses on business planning, finance, risk management and reporting, whilst ensuring that the Council complies with the range of governance requirements to which it is subject.

(c) Nature & Scope of Activities The nature of activities to be undertaken by the Council are derived from its mission:

To drive responsible use of Victoria’s Alpine Resorts by:

strategic positioning of, and advocacy for, alpine resorts and the broader alpine industry

developing strong and collaborative stakeholder partnerships, through programs and projects

building knowledge of the unique values, assets and opportunities promoting alpine tourism to grow visitation fostering proactive environmental and cultural stewardship working closely with ARMBs, DELWP, Parks Victoria and other land managers,

Visit Victoria and Regional Development Victoria.

The table below describes the broad scope of activities undertaken by the Council on an ongoing basis in relation to its main undertakings. Specific annual activities are highlighted within the 2019/20 Business Plan.


Table 2: Scope of Alpine Resort Co-ordinating Council Activities

MAIN UNDERTAKINGS ACTIVITIES

Strategic Positioning Take a lead role in advocacy and policy analysis for the alpine industry. Monitor and report on the implementation of the “Alpine Resorts Strategic plan

2019 – responding to a changing climate”. Consider climate change in decision making, including taking into

consideration the policy objectives of (s22) and guiding principles of (s23-28) of the Climate Change Act 2017.

Lead development of climate adaptation planning for the alpine sector and monitor the sector’s adaptation.

Undertake strategic projects as required.

Co-ordination and Co-operation

Actively foster co-ordination across the alpine industry. Support better and improved collaboration and stakeholder engagement,

including timely and role-appropriate engagement by the ARMB with Traditional Owners.

Maintain strong links with the alpine industry. Manage select programs that extend across ARMBs.

Knowledge and Understanding

Keep abreast of, and undertake, research to grow the understanding of the alpine industry7 to provide an evidence base for policy, promotion, investment and operational decisions.

Communicate current industry knowledge to stakeholders.

Corporate Governance Ensure Council’s functions and proceedings are undertaken in accordance with the requirements of the Act and the Financial Management Act 1994.

Undertake yearly corporate and business planning activities. Meet annual reporting requirements.

The Council does not undertake day-to-day operational functions for or at the alpine resorts.

(d) Accounting Policies

The Council has financial policies and procedures and a chart of accounts that are in accordance with the Financial Management Act 1994. A financial code of practice and Financial Governance Framework has also been prepared which sets the standards of conduct expected from Council staff.

The Council’s financial statements are prepared in accordance with the Directions of the Minister for Finance under the Financial Management Act 1994 and applicable Australian Accounting Standards.

(e) Performance Targets

The short-term success of the Council will be measured against the performance targets stated in the Business Plan.

Longer term success of the Council’s role and functions will be measured by the implementation of the new industry strategic plan.

7 This may include research into economics, marketing, visitors, and environmental systems.


(f) Accountability and Reporting

The Council will provide the Minister with an annual report8 that includes:

key achievements corporate governance arrangements reporting of legislative compliance9 an annual financial report10 an assessment of performance against the Business Plan.

The Council will provide the Minister with regular reports on the implementation of the Ministerial Directions and will report on current Alpine Sector KPIs developed from the 2012 Plan. Other reports will be prepared as required.

The Council will immediately notify the Minister if it believes matters have arisen that may prevent or significantly affect the achievement of its financial targets or objectives within the corporate plan11.

8 The annual report is based on a year-end date of 30 June. 9 This will include compliance with the Alpine Resorts (Management) Act 1997, Freedom of Information Act 1982, the Financial Management Act 1994, the Protected Disclosures Act 2012, Public Administration Act 2004 and the Privacy and Data Protection Act 2014. 10 This will be audited by the Victorian Auditor-General’s Office (VAGO) and prepared in accordance with the Directions of the Minister for Finance under the Financial Management Act 1994. 11 This is in accordance with section 32 of the Alpine Resorts (Management) Act 1997.


Business Plan 2019/20

The Business Plan details the activities that will be delivered by the Council in 2019/20 across the four main undertakings:

Strategic Positioning of the Victorian Alpine Resorts Co-ordination and Collaboration across stakeholders in the Victorian Alpine Resorts Knowledge and Understanding of the Victorian Alpine Resorts and critical factors that may

impact them Governance of the Council

The focus of activities will be on the overseeing and implementing activities to meet Council’s statutory obligations, implementation of the new Alpine Resorts Strategic Plan and implementing activities consistent with Ministerial Directions issued on 23 March 2018.

The Strategic Priorities Overview is shown below (Figure 2). Several of the projects or programs are of an on-going nature and as such, the performance targets, shown in the following tables, have been adjusted to reflect the current status.

Figure 2: Strategic Priorities for 2019/20: Overview


Activities and Performance Targets 2019/20

Strategic Positioning Activities The 2019/20 year will focus on working with ARMBs and agencies on implementation of the new Alpine Resorts Strategic Plan and leading climate adaptation planning.

ACTIVITY SOURCE OF ACTION

ARMA Section Nos, other Act, Ministerial

Direction or 2019 Plan.

PERFORMANCE TARGETS

Alpine Resorts Strategic Plan 2019 Sec. 18(ad) &33F

Revise Alpine Resort Management Board (ARMB) Master Plan Framework to reflect priorities of the new Alpine Resorts Strategic Plan 2019 (2019 Plan)

Framework reviewed and implemented by 31 December 2019

Monitor and report on the implementation of the 2019 Plan

Progress reports produced bi-annually

Develop a collaborative approach between Visit Victoria, RDV and DELWP on key alpine-related projects using existing Tourism Destination Action Plans and Regional Partnership resources

Alpine-related projects are co-ordinated and referenced in regional planning funding priorities

Strategic Plan Cross Government Taskforce

Establish a cross government taskforce as part of the implementation of the 2019 Plan to investigate the viability of the green season to support economic and commercial outcomes for the resorts in the longer-term

Taskforce is established and initial reports and findings available by March 2020

Climate Adaptation Planning Lead the development of climate adaptation planning for the alpine sector by identifying gaps in knowledge and better communicating the impacts of climate change in the alpine and regional context

Ministerial Directions

Clear subject based communications pieces are produced and made available to the sector as required

Monitor the sector’s adaption to the impacts of climate change


Ensure the 2019 Plan is referenced in revised ARMB master plans and corporate plans by 30 June 2020

Victorian Alpine Resorts Development Program (VARDP)

Sec. 18(d)

Implement revised VARDP policy referencing the Climate Change Act 2017


VARDP projects incorporate reference and response to addressing climate change impacts

Alpine Resort Management Boards Support ARMBs to develop corporate plans that align with and support delivery of the 2019 Plan and desired biodiversity and natural resource planning outcomes

Ministerial Directions Biodiversity Strategy 2037

Draft corporate plans reviewed in conjunction with DELWP, by 31 December 2019.


Co-ordination and Collaboration Activities

In 2019/20 the Council will continue to facilitate co-ordination and collaboration between ARMBs, government and industry.



Direction or 2019 Plan

PERFORMANCE TARGETS

Co-ordination and Collaboration in Reporting

Provide the Minister with uniform reports for ARMBs


Uniform reports are provided in accordance with the Minister’s timelines

Manage the All Resort Season Pass Program All Resort Season Passes are produced

Monitor and report on the implementation of the recommendations of the ‘Business Systems and Services Review of Victoria’s Northern Resorts’


Reports to the Minister are provided in accordance with Ministerial Directions

Finalise and implement the six-yearly review of 2019-2025 site rental arrangements under the ARC/VSA Agreement to inform the Minister’s determination of an industry-wide ceiling.

ARC/VSA Agreement

Report to Minister provided to enable Ministerial determination prior to 31 October 2019.

Co-ordination and Collaboration with Industry, Government and Key Stakeholders

Provide secretariat support to the Alpine Resorts Industry Advisory Group (ARIAG)

Secretariat support is provided to ARIAG

Monitor the commitment to and report on the ‘Stakeholder Engagement Plan’s ‘Improvement/Action Plan by ARMBs and the Council


Six-monthly reports are provided to the Minister

A framework for stakeholder engagement is developed by 31 December 2019

Develop a framework with Traditional Owners to facilitate on-going engagement, the development of partnership plans and understanding of connection to country in alpine areas

2019 Plan A framework is developed in partnership with Traditional Owners by June 2020

Co-ordinate the staging of an Industry Conference to reflect contemporary industry needs and outcomes of the 2019 Plan

Conference conducted by May 2020

Investigate the likely impact of Vail Resorts entering the Victorian market

Report produced by February 2020

Prepare industry overview and background papers for the Minister and DELWP

Sec. 18(a)&(c) Reports are prepared as required

Undertake a review of the 2002 Alpine Resorts Leasing Policy on behalf of Land Management Policy Division (LMP)

2019 Plan Review is undertaken and a report prepared for LMP by March 2020


Knowledge and Understanding Activities

Knowledge and understanding activities will continue to centre on data collection and reporting of visitation numbers and visitor satisfaction at the Victorian Alpine Resorts for both the winter and green season to assist industry decision making.




PERFORMANCE TARGETS

Winter Research Program Sec. 18(ab)

Manage the conduct of winter visitor satisfaction and vehicle season pass surveys.

Vehicle season pass surveys and visitor satisfaction surveys are conducted during the winter season and reports prepared

Manage the collection, collation and dissemination of weekly winter visitation numbers.

Winter visitation numbers are disseminated on a weekly basis and reported annually

Manage the collection, collation and dissemination of snowfall and snow depth data.

Snowfall and snow depth data is collated and reported annually

Produce the Winter End of Season Report and Fact Sheet

The Winter End of Season Report and Fact Sheet are made available

Summer Research Program Sec. 18(ab)

Manage the conduct of the annual summer visitation survey, following a review of methodology

Summer visitation surveys are completed

Produce the summer end of season report Summer Report is made available

Economic Significance Study Analysis Sec 18(ab) Update annual key GSP and employment numbers from 2016/17 Economic Significance study

Annual updated data made widely available

Carrying Capacity Study Sec 18(ab) Investigate the benefits of undertaking an alpine resorts ‘carrying capacity’ study focusing on emergency management, the environment, potable water and waste water management, etc in conjunction with the NSW Office of Environment and Heritage (as a key input to the review of the Alpine Resorts Planning Scheme.)

Preliminary report produced by February 2020


Corporate Governance Activities The corporate governance activities ensure that Council’s functions and proceedings are undertaken in accordance with good management practice, the requirements of the Alpine Resorts (Management) Act 1997, Public Administration Act 2004 and Standing Directions for the Minister for Finance 2016.




PERFORMANCE TARGETS

Planning

Develop a Corporate Plan, including yearly business plan

Sec. 30(1) The Corporate Plan is delivered to the Minister by 31 July in each year

Prepare an annual and forward look budget

Sec. 30(3)(c) An annual budget and forward look are included in Corporate Plan

Reporting

Engage external auditors (VAGO) FMA VAGO is engaged

Prepare an annual report FMA The Annual Report is completed within Parliamentary timeframes

Supporting Delivery

Manage and provide Secretariat support to Council and its committees.

Support is provided to Council and its committees

Oversee the budget and management of accounts

Sec. 33 Financial reports are prepared for all Audit & Risk Management Committee and Council meetings

Governance Policy PAA 2004

Implement and review policies for compliance with government requirements

Governance policies updated as required and reviewed annually

Conduct annual ARCC Member Performance Reviews

Reviews are conducted

Risk Management 2016 Standing Directions

Maintain and review a risk management policy, strategy and register

Risk Management Strategy and associated documents are regularly reviewed by the Audit & Risk Management Committee

Financial Management Compliance 2016 Standing Directions

Implement and monitor financial management practices for statutory and governance compliance

Compliance with Standing Directions for the Minister for Finance 2016 achieved


Financial Plan

Overview

The Council is funded by periodical payments from the ARMBs12. Annual contributions are defined in the Council’s Corporate Plan as approved by the Minister.

For 2019/20, Council proposes that consistent with arrangements approved in previous years, the majority of funds contributed by ARMBs will be apportioned between Falls Creek, Mount Buller & Mount Stirling and Mt Hotham ARMBs, based on averaging resort ‘visitor days’ over the previous three years. Nominal amounts will be contributed by the Southern ARMB to cover associated Council member expenses and other direct expenses. Formal Directions for the payment of ARMB contributions will be sought from the Minister.

Council expenditure allows for payments to members of the Council, member superannuation and expenses, costs associated with on-going research projects, support to ARIAG, meeting expenses and a range of administrative functions, secretariat costs.

Secretariat staff, facilities and corporate support are provided by the Land Management Policy division of the Department of Environment, Land, Water and Planning on an at-cost fee for service basis13.

Contingencies have also been made to meet Ministerial expectations for further projects that may arise from Council’s work previously undertaken in accordance with 2018 Ministerial Directions.

Budget Assumptions

The budget is based on the following assumptions:

Council member fees remain fixed at the current rate by the Minister, in accordance with the Appointment and Remuneration Guidelines issued by the Department of Premier and Cabinet.

Superannuation payments for Council members and staff will be 9.5 per cent. Executive and administration support accommodation and corporate support supplied by DELWP at

cost. The allocation of a 0.6 FTE Project Support Officer and a Chief Finance Officer are provided by

DELWP at no cost to the Council under the current MoU. Additional contributions from the ARMBs are approved. Future contributions will be adjusted by the Treasurer’s ‘Annual Rate’.

Financial Key Performance Indicator

Council’s adopted financial Key Performance Indicator of ‘working capital maintained equivalent to 5 per cent of annual budgeted income’, will continue to be met in respect of the ‘Operating’ income.

12 Section 38 (1)(af) of the Alpine Resorts (Management) Act 1997, states that one of the ARMBs’ functions is ‘to contribute to and support the operation of the Council’. 13 With the exception of the salary and on-costs of the 0.6 FTE Project Support Officer position


THIS PAGE IS INTENTIONALLY BLANK


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Appendices

Appendix 1: Alpine Resorts (Management) Act 1997: S. 1A Object

The object of the Act is to make provision in respect of alpine resorts ---

a) for the development, promotion, management and use of the resorts on a sustainable basis and in a manner that is compatible with the alpine environment, having regard to:

i) environmental and ecological considerations, in particular, climate change: and ii) economic considerations; and iii) cultural heritage considerations, in particular, indigenous cultural heritage

considerations; and

b) for the use of the resorts: i) primarily for alpine recreation and tourism; and ii) in all seasons of the year; and iii) by persons from varied cultural and economic groups.’’


Appendix 2: Council Statutory Functions and Obligations

Statutory Functions The statutory functions of the Council are set out in detail in Section 18 of the Act. Prescriptive functions are: to review and co-ordinate the implementation of the Alpine Resorts Strategic Plan to monitor the development and implementation of Strategic Management Plans for each alpine

resort to co-ordinate, in conjunction with Tourism Victoria, established under the Tourism Victoria Act 1992,

the overall promotion of alpine resorts Broad functions are: to plan for and facilitate the establishment, development, promotion, management and use of alpine

resorts in accordance with the object of this Act to undertake research into alpine resort issues to liaise with and encourage the co-operation of all State and local government authorities,

industries, communities and other persons involved in the development, promotion, management and use of alpine resorts

to make recommendations to the Minister on matters related to the provision and improvement of services and facilities in alpine resorts

to make recommendations to the Minister on any matter relating to alpine resorts in respect of which the Minister has asked for recommendations

to attract investment for the improvement of alpine resorts to carry out any other function conferred on the Council by or under this or any other Act The Council has no on-ground operational responsibilities within alpine resorts and works collaboratively with the ARMBs for whole-of-industry benefit. Each ARMB is directly responsible to the Minister. Obligations

The Council has obligations created by the Act as well as responsibilities to act in accordance with other legislation.

The Council: is a body corporate with perpetual succession; has a common seal; may sue and be sued in its common name; may acquire, hold and dispose of real and personal property; may do and suffer all acts and things that a body corporate may, by law, do and suffer; and in carrying out its functions and powers, acts on behalf of the Crown.

Council is also required to establish a ‘general account’ and ensure that all monies received are paid into this account.

In carrying out its functions and powers the Council is subject to the general direction and control of the Minister.


Appendix 3: Council Members and Terms of Office as at 1 July 2019

MEMBER START FINISH

Ms Arianne Rose Council Chairperson, GIC appointee 01/01/2016 29/03/2021

Mr Allan Bawden Chairperson Southern ARMB 01/01/2016 31/12/2019

Dr Jenny Brereton GIC appointee 30/03/2018 29/03/2021

Mr Christopher Eddy GIC appointee 30/03/2018 29/03/2021

Ms Julia Hunter GIC appointee 30/03/2018 29/03/2021

Dr Jacqueline Jennings Chairperson Mount Buller and Mount Stirling ARMB 30/04/2017 29/03/2021

Mr Ian Maxfield GIC appointee 30/03/2018 29/03/2021

Ms Maxine Morand Chairperson Mount Hotham ARMB 30/03/2018 29/03/2021

Ms Joanne Shannon Chairperson Falls Creek ARMB 30/03/2018 29/03/2021

Alpine Resorts Co-ordinating Council (Council) Alpine Resort Management Board (ARMB) Governor in Council (GIC)


Appendix 4: Membership of Council Committees as at 1 July 2019

AUDIT AND RISK MANAGEMENT COMMITTEE

Mr Allan Bawden (Committee Chairperson) Chairperson Southern ARMB

Ms Arianne Rose Council Chairperson, GIC appointee

Ms Joanne Shannon Chairperson Falls Creek ARMB

STRATEGIC PLANNING COMMITTEE

Mr Christopher Eddy (Committee Chairperson) GIC appointee

Dr Jenny Brereton GIC appointee

Ms Julia Hunter GIC appointee

Mr Ian Maxfield GIC appointee

Ms Arianne Rose Council Chairperson, GIC appointee

A Member representing the ARMB Chairpersons ARMB Chairperson (rotating attendance)

CO-OPERATION COMMITTEE

Dr Jacqueline Jennings (Committee Chairperson) Chairperson Mount Buller and Mount Stirling ARMB

Mr Allan Bawden Chairperson Southern ARMB

Ms Maxine Morand Chairperson Mount Hotham ARMB

Ms Joanne Shannon Chairperson Falls Creek ARMB

and by standing invitation

Mr Mark Bennetts CEO Mount Buller and Mount Stirling ARMB

Ms Gail Conman CEO Southern ARMB

Mr Jon Hutchins CEO Mount Hotham ARMB

Mr Stuart Smythe CEO Falls Creek ARMB

The Council Chairperson is an ex officio member of all Council Committees, whether or not expressly appointed as a member.


Appendix 5: Council Secretariat Staff

STAFF MEMBER

TITLE FULL TIME EQUIVALENT

FUNDING

Ian Swan Executive Officer 1.0 Council

Alex Shilton Principal Policy Officer 1.0 Council

Natalie Baran Senior Project Officer 0.8 Council

Glen Forster Senior Policy Officer 0.8 Council

Shanaugh Lyon Project Officer 0.5 Council

Cassie Elder Project Support Officer 0.6 DELWP

From time to time temporary agency staff or short-term secondments from DELWP may be required for specific projects. The Council currently utilises the services of external consultants to provide Chief Finance and Accounting Officer services and any other specialist services expertise, as required.


Appendix 6: Victorian Government’s Alpine Sector KPIs

GOALS/STRATEGIC OBJECTIVES TARGET/KPI

Economic (Financial) Goal 1. Trend increase in real Gross State Product attributable to resorts to be at least 2% p.a. For 2012–17.

2. Trend increase in regional jobs attributable to resorts to be at least 2% p.a. For 2012–17.

3. Five-year alpine public investment program funded

4. All ARMBs meet government approved corporate plan financial targets.

Increase visitation (SO1) 5. Trend growth in visitor numbers to be at least 2% per annum for 2012–17.

6. Average annual winter occupancy rates for 2016–20 to be at least 20% higher than 2010–15.

Improve efficiency and accountability (SO2)

7. Trend ARMB real unit costs decline at 1% p.a.

8. ARMB CSOs identified, agreed with government and funded.

Environmental Goal Respect the alpine environment (SO4)

9. Renewable energy to comprise at least 30% of resorts’ total energy use by 2020.

10. Trend decrease in average annual solid waste disposed per visitor day to be at least 4% p.a.

11. Habitat protection programs in government approved corporate plans implemented.

Social Goal Facilitate access, equity and diversity (SO5)

12. Visitor household income profile approaches state profile.

13. Visitor ethnicity profile approaches state profile.

14. Increased number of beds available through central booking services.

15. Range of on-mountain services increases.

Cultural Goal 16. Indigenous employment opportunities created.

17. Events celebrating resort heritage increase.

Cross Cutting Strategic Objectives Build partnerships (SO3) Improve regulatory framework (SO6)

18. ARMBs implement formal stakeholder consultation programs.

19. Planning timelines meet council norms.

20. Lease inequities removed.

Source: Alpine Resorts Strategic Plan 2012, Council, December 2012

alpine resorts co-ordinating council corporate plan … · alpine industry context the following is...

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