A number of factors have contributed to the financial results over the five year period:
Expenses have increased with increases in demand for cost recovered services
Administration of the legislation was strengthened over the period, particularly to manage the introduction (2011-12 and 2012-13) and repeal (2013-14 and 2014-15) of the equivalent carbon price
The majority of licences and permits issued are of two year duration which can skew the revenues and therefore accentuate annual balances from year to year
Explain impact on balance management strategy
The cumulative balance presented relates to the financial years 2010-11 to 2015-16 only. Surpluses and deficits are managed through the Ozone Protection and Synthetic Greenhouse Gas Special Account.
7B. NON-FINANCIAL PERFORMANCE
Outcome measures:
The import, export and manufacture licensing system has enabled Australian to comply with its Montreal Protocol obligations to phase out ozone depleting substances and to have in place a licensing and quota system. Australia’s obligations and outcomes are reported annually to the United Nations Environment Program.
The end use permit scheme in the refrigeration and air conditioning and fire protection industries has contributed to Australia meeting its Kyoto Protocol obligations by reducing direct emissions of synthetic greenhouse gases and reduced indirect emissions from electricity consumption by improving the energy performance of refrigeration and air conditioning equipment. A study by the Expert Group, commissioned by the Department in 2014 showed 24.67 Mt CO2e direct greenhouse gas emissions have been avoided as a result of the regulatory controls in the period 2003 to 2013.
Output Measures:
Outputs under this activity are generally not targets, rather a reflection of “demand” in accordance with the requirements of the ozone legislation, for example:
Import, export and manufacturing licences
Number of and time taken for issue of licences required for the import/export/manufacture of ozone depleting substances or synthetic greenhouse gases
Number of and time taken for assessment and approval of quarterly reports – compulsory reporting of imports 4 times per annum for all holders of a licence
The Department has implemented a number of efficiencies related to import licensing including the automation of assessment of the majority of quarterly reports and related invoicing which will impact on resource level requirements. The Department will implement streamlining measures as a result of the Program Review. The implications of streamlining changes will be taken into account in a subsequent review of cost recovery arrangements.
