Statement of Corporate Intent2009/10 - Landgatefile/POL...Statement of Corporate Intent 2009/10 ... increasing customer satisfaction through high standards for product and service

Statement of Corporate Intent2009/10

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Statement of Corporate Intent 2009/10

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// INTRODUCTION

Landgate, Western Australia’s land information authority, is widely recognised for its secure land titles system, its comprehensive land and property information base and its spatial expertise. Building on this sound reputation, Landgate is well positioned to expand its business locally, nationally and overseas.

Since its inception, Landgate has established a clear direction and defined strategic objectives and targets for future growth. This Statement of Corporate Intent sets out how Landgate will address both the opportunities and challenges during 2009/10.

Landgate continues to enhance its services to the community and is extending the range of products and services available online. It is also laying the ground work for expansion of commercial opportunities and further investment in the business.

SLIP Enabler1, the online system that links government agency systems and creates a single access point to real time land and geographic information, has received critical acclaim. This includes the prestigious Western Australian Premier’s Awards for Excellence in Public Sector Management and the Asia Pacific Spatial Excellence Award (APSEA). Landgate intends to realise the potential that SLIP offers through further expansion of services into national and international markets.

Within the spatial information industry the demand for better and faster information continues to grow at an ever increasing rate. Landgate recognises that to maintain a competitive edge in this market, it is imperative to pursue opportunities associated with location based services.

Making the most of Landgate’s capabilities takes on increased significance within the current environment of global economic slowdown and the resultant financial market uncertainty.

Landgate will undertake a program of consolidation and development. It will place a focus on its marketing activities by implementing new and improved processes, developing products for new and existing markets and increasing its market share. It will also build capacity with targeted capital investment and increase internet delivery performance and reliability.

A new portfolio in the Asset Investment Program is Landgate’s “iLand” program. This major new program will revolutionise the way Landgate does business, generating greater operational efficiency and long term benefits, and will ensure Landgate is prepared for electronic conveyancing.

Landgate is implementing plans to offset the cyclical nature of the property market and the current slow market conditions. It will continue to invest in innovation, research and development and to pursue strategic alliances to bring new products to market.

There is no doubt that the coming 12 months will be a demanding time for business, however, Landgate faces the year confident that it has the right strategies in place for ongoing success.

Katrina Burton

CHAIR

1 SLIP is the mechanism the Western Australian Government uses to deliver cross-government spatial initiatives to government agencies, the public and industry. SLIP Enabler is Landgate’s web based technology that delivers SLIP.

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// TABLE OF CONTENTS

Introduction 3

Executive Summary 5

Part A - Overview of Landgate 7

Our Business 7

Strategic Objectives 8

Guiding Principles 9

Organisational Profile and Structure 9

Part B - Major Initiatives and Planned Achievements 11

1. Financial Outcomes 11

2. Business Innovation 12

3. Customers and Stakeholders 16

4. People and Leadership 19

Part C - Asset Investment 20

Part D - Business Management 23

Part E – Financial Statements and Business Targets 24

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// EXECUTIVE SUMMARY

In accordance with the Western Australian Land Information Authority Act 2006, this Statement of Corporate Intent (SCI) is an agreement between Landgate and the Minister for Lands. The SCI covers Landgate’s third full year of operation and details targets and performance measures for the financial year 2009/10.

In 2009/10, Landgate is well positioned to capitalise on the previous period of reform and investment, whilst continuing its transformation for future growth in the next decade. Landgate’s range of online products and services, and expanded distribution networks, are expected to provide additional commercial revenues. Landgate will continue to focus on developing and expanding markets, and increasing customer satisfaction through high standards for product and service delivery.

SLIP Enabler has been delivering online, real time access to spatial information in a seamless, cross-government manner for a number of years. SLIP Enabler was successfully launched to industry Australia wide in 2008. Landgate will look for opportunities to further expand its use in the national and international arena. SLIP Enabler links government and industry systems together to create a single, online access point to the vast amount of land and property information. This allows development of cross-government solutions to meet specific business needs. SLIP Enabler is an increasingly valuable tool for both government and industry as the issues of climate change, water management and sustainable agriculture continue to increase in importance.

At the same time, Landgate will continue to deliver world class services in its core business of land titling, land valuation, surveying, mapping and other geographic information, and invest further in data capture and improvement.

Landgate will also commence the implementation of its “iLand” program. iLand is a new portfolio in the Asset Investment Program with expected initial expenditure of $4.5 million. iLand will ensure that Landgate is prepared for the introduction of electronic conveyancing and pave the way for improved processes more suited to online delivery. iLand will also fundamentally change the Authority’s land information systems and work practices, generating greater operational efficiency and long term benefits for customers. A business case will be prepared in 2009/10 for the further development of the whole iLand program which will be submitted separately to the Estimates and Economic Review Committee (EERC). Landgate will continue to engage in innovative recruitment practices to attract new employees, along with flexible working arrangements – including options to assist older workers to phase their retirement. Younger employees are being sought through graduate, cadetship and traineeship programs. These programs are initially targeting geospatial and valuation students, but will be expanded to incorporate other skill sets. Strategies will also be implemented to further increase work opportunities for Indigenous Australians.

The Authority will build on its investment in innovation and research and development to position Landgate for growth and commercial sustainability in the next decade providing ongoing business viability through diversification and expansion. The Innovation Program has tapped into the Authority’s spatial expertise to develop innovative products and services that are contributing to Landgate’s objective of diversifying and offsetting the cyclical nature of the property market. The program, which is unique for the pubic sector, is modelled on best practice in the private sector and puts a strong focus on the involvement and collaboration of staff. Following a successful first year of operation in 2008, it is being expanded to allow clients and the general public to put forward innovative ideas for consideration.

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Alliances and partnerships will be pivotal to Landgate’s future directions, most particularly in bringing products and services to market in a timely and customer orientated manner. The ability to attract specific capabilities and reduce the time to bring new products to market presents significant challenges. Greater engagement and cooperation with other organisations will assist in delivering Landgate’s strategic objectives and derive maximum value from our data.

Despite the current environment of global economic slowdown, and the prospect of lower economic growth, Landgate is in a sound financial position for these circumstances. Landgate’s financial projections for 2009/10 are for a total income of $132.6 million, expenditure of $125.4 million and an after tax profit of $5.1 million. Landgate expects to invest $15.6 million of capital into assets, infrastructure, data, product development and iLand.

Meeting the targets and measures in this 2009/10 SCI will enhance Landgate’s long-term viability and its ability to serve its customers and meet the needs of Western Australia.

* Earth is Art Image | Reef Wallabi

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// PART A - OVERVIEW OF LANDGATE

Information in Part A is provided in accordance with the Land Information Authority (Policy Instruments) Regulations 2006, clause 4(f), ‘nature and scope of the functions that are to be performed’.

// Our Business

The Authority is the State’s primary provider of land information and carries out the following functions on behalf of the State:

Operation of the land titles register, covering all freehold and Crown land parcels in Western • Australia. The register provides an open, secure and transparent system for transacting in land. During 2007/08, Landgate registered land transfers to the value of well over $44 billion and mortgages against land to the value of $69 billion.

Operation of the valuation rolls, which provide independent and impartial land valuations used • by the State and local government for taxation and rating.

Provision and sale of digital and hardcopy information about land, including maps, surveys, • aerial photography, satellite imagery and property sales information. This information is used by the public and private sectors, and the community for purposes such as emergency management, agriculture, planning, infrastructure, land development and land care.

Consultancy and services in land information and administration, including international • projects.

What is land information?

Land information includes physical, social and economic information relating to land. Land can be defined through points (e.g. coordinates), lines (between points), surfaces or three-dimensional spaces that occur on, above or below the surface of the earth.

Landgate’s information includes:

the location of land (and land features);•

the boundaries of land (natural, legal and administrative);•

the ownership and use of land;•

the value of land; and,•

the shape and features of land (including the built environment).•

Landgate’s information is gathered through a variety of means, including the valuation of land and property, the registration of interests in land, cadastral and geodetic surveys, mapping programs, aerial photography and satellite remote sensing.

Land is critical to human activity. Information about land enables government, business and the community to operate, plan and make informed decisions.

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Some land information products and services provided by Landgate.

// Strategic Objectives

Landgate’s commercial activities will earn a fair return for the State on its land information asset, with profits reinvested into revitalising systems, including the further development of iLand, improving data quality and infrastructure, expanding business innovation and introducing new commercial products and services.

Landgate’s statutory objectives are set out in the Land Information Authority Act 2006. These include the provision of certain land information functions for the State on a not-for-profit basis.

Landgate’s strategic objectives are outlined in its five year strategic plan and drive its major initiatives for 2009/10. Landgate’s strategic objectives are:

Key land information will be available online and innovative capacity enhanced.•

Our people, systems and services will be a critical link in networked government and aligned • to business needs.

We will be self-sustaining and positioned to deliver a financial return to the State.•

Throughout the journey we will excel for our customers and contribute to the community in • which we live and work.

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// Guiding Principles

Act in a cost effective manner• - Meet government requirements and community expectations for the effective and efficient delivery of government services.

Act on prudent commercial principles• – Apply commercial disciplines to our internal operations and decision-making, including making sound economic decisions based on long-term sustainability and the management of risk, responding to customer and market needs and acting in a competitively neutral manner.

Support the sustainable economic, social, and environmental management and •development of the State – Support sustainable outcomes for Western Australia.

// Organisational Profile and Structure

Landgate is recognised as a leading information provider in the knowledge economy known for its integrity, ingenuity and excellence.

Mission

Landgate is committed to providing access to land information anywhere, anytime to promote a strong and sustainable Western Australia. Vision

A future where the use of land information knows no bounds.

Values

Landgate is an organisation of people who act with honesty, integrity, respect and openness. We work as one team that reflects the diversity of the Western Australian community. We value:

excellence• in everything we do;

creativity• in what we do and how we do it;

growth and learning• for our business and our people;

celebration and recognition• of what we do and how we do it, and our people; and

sustainability and a sustaining work environment• for the State and our people.

Business Conduct

In conducting our business we will:

use our ingenuity and passion to imagine what is possible;•

work with customers to understand what is needed;•

act with integrity to promise what is achievable; and•

deliver what is promised.•

Our business decisions will specifically consider:

the integrity of the Land Titles Register and Valuation Rolls;•

the needs of government users of land information; and•

the development of the State’s spatial information industry.•

We will act in a business-like manner, work with others for mutual benefit and be a fair and responsible provider of information.

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Structure

To achieve business outcomes and develop a commercial focus, Landgate is structured along the following lines:

Information Services - data collection and registration, valuations, geographic and survey • services.

Information Access - customer access to data, development of commercial products and • services and market development.

Information Management - information management, information technology, records and • information systems.

Business Services - financial, workforce, legal and infrastructure services.•

Strategic Business Directions – innovation and research and development, strategic policy, • business planning and reform, workforce planning and development and corporate affairs.

Landgate International – international consultancy, professional advice and solutions for land • administration and land information.

The Authority is governed by a Board of Management appointed by the Minister for Lands, and includes the Chief Executive.

The members of the Board are:

Ms Katrina Burton Chair Mr Peter Cooke Board member

Mr Paul White Board member Ms Gail Curtis Board member

Ms Sue Thomas Board member Mr Mike Bradford Chief Executive

Landgate also houses independent offices such as the Commissioner of Titles, Registrar of Titles and Valuer General, which perform statutory functions under the Transfer of Land Act 1893, Strata Titles Act 1985, Valuation of Land Act 1978 and other Acts. Staff designated to perform these offices are not subject to the direction or control of the Board or the Chief Executive when exercising their independent statutory functions, but are accountable to the Chief Executive for the performance of their administrative functions.

Figure 1: Landgate’s Organisational Structure

MINISTER

BOARD AUDIT AND RISK MANAGEMENT

COMMITTEE

CHIEF EXECUTIVE

LANDGATE INTERNATIONAL

INFORMATION SERVICES

INFORMATION ACCESS

INFORMATION MANAGEMENT

BUSINESS SERVICES

STRATEGIC BUSINESS

DIRECTIONS

INTERNAL AUDIT AND RISK MANAGEMENT

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// PART B - MAJOR INITIATIVES AND PLANNED ACHIEVEMENTS

Part B is provided in accordance with Section 4(a) of the Land Information Authority (Policy Instruments) Regulations 2006, which require Landgate’s Statement of Corporate Intent to include an outline of major initiatives for achieving strategic objectives.

The major initiatives and planned achievements for the period 2009/10 are outlined below. They are aligned with Landgate’s four key focus areas:

Financial Outcomes;1.

Business Innovation;2.

Customers and Stakeholders; and 3.

People and Leadership.4.

1. // Financial Outcomes

Landgate will be financially self-sustaining and will deliver a financial return to the State. Landgate’s financial targets for 2009/10 have been adjusted to reflect the current decline in the property market. A return to moderate growth in the property market is expected towards the end of the currency of this SCI. Landgate will seek to reduce its dependence on the property cycle to minimise the effect on revenue.

Profitability

Landgate will generate a profit on turnover of 7.0% during 2009/10.

Profit on turnover is a measure of earnings, before interest and taxation, divided by total customer revenue. Customer revenue includes all revenue, but excludes the government appropriation that Landgate receives for government and not-for-profit services.

Return

Landgate will deliver a return on fixed assets of 13.8% during 2009/102.

Return on fixed asset is a measure of earnings before interest and taxation, over total fixed assets. Fixed assets represent Landgate’s investment in the form of IT systems and other equipment that Landgate uses in its operations. Return on fixed assets provides a better measure of operational performance than a return on total assets, as the latter includes cash assets which inherently produce a more modest return.

Asset Investment

Landgate will invest $17.4 million in capital programs during 2009/10. In compliance with new government financial reporting standards, $15.6 million will be capitalised and $1.8 million will be expensed via the Income Statement.

The programs will renew Landgate’s IT infrastructure, continue its transformation to automated online services, including iLand, and improve the quality of its land information. These programs will build Landgate’s capacity to deliver a range of valuable products and services to both a general wholesale and to a specialist retail market through online channels.

New business will deliver a return on investment of between 6% and 27%, depending on the investment category (e.g. government or commercial services).

The asset investment program is discussed in Part C. Specific business initiatives and projects are described below.

2 This is lower than Landgate’s estimated Weighted Average Cost of Capital due to the predicted ongoing softening of the property market and ongoing progress on structure reform to diversify revenue sources that are decoupled from the property market.

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2. // Business Innovation

Rapid technological developments and associated customer demand for real time information and 3D imagery is leading to new business opportunities. Innovation is a key growth factor in knowledge-based industries – with commentators predicting that 70% of job categories and products that will exist in the year 2020 are yet to be created. As Western Australia’s primary and authoritative source of land information, Landgate is uniquely positioned for business growth as well as enabling the growth of the spatial industry.

Innovative solutions to products, services and business efficiencies remain crucial for the ongoing commercial sustainability of Landgate within an ever changing technological and information centric landscape. Innovation has been placed at the centre of new and cutting edge developments that will assist the Authority’s cultural and commercial development.

This section provides:

an overview of the Authority’s innovation strategy;•

a summary of online products and services; and •

a summary of planned business improvement activities.•

Innovation Program

Landgate is systematically investing in innovation and research and development to capture new ideas for products and services, research and development and business efficiencies. The Innovation Program, launched in 2008, continues to assist in developing new markets, expanding existing markets and streamlining business processes.

The program is modelled on best practice in the private sector and focuses strongly on the involvement and collaboration of staff across the Authority, fostering a culture where innovation is part of every day activity. This is facilitated by ongoing high level communication, consultation and training to ensure staff engagement and an intranet portal where staff can share and discuss ideas. In addition, an online collaboration portal was made available to Landgate’s customers and other stakeholders in 2008/09.

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Figure 2 – Innovation Framework

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Innovative solutions to products, services and business efficiencies remain crucial for the ongoing commercial sustainability of Landgate. The Innovation Program is assisting the Authority to develop innovative products and services that are contributing to Landgate’s objective of diversifying and offsetting the cyclical nature of the property market. Examples of the wide range of innovative staff ideas that are being progressed include: working with the emerging professional group of geo-demographers, introducing mobile self help booths in existing Landgate locations and for use at events, developing an electronic advice of valuations (rating & taxing) product, and the Earth is Art series.

Landgate will also invest in research and development through the Cooperative Research Centre for Spatial Information, educational facilities and private organisations, increasing the range and depth of opportunities for future products and services. Reciprocal relationships with these organisations, through the Program, will also add value to Landgate’s existing products.

The program’s performance measures were expanded in 2008/09. These measures now include: the number of collaboration portal ideas submitted and progressed; expenditure; participation rates; return on investment; time to market; staff feedback and customer perceptions. With benchmark measures established, the program will look to improve upon these in 2009/10.

Online Products and Services

Landgate will continue to expand its internet delivery of services. In 2009/10 it is expected that the uptake of web-based products and services will be progressed through:

10% growth in the number of online account customers; •

15% growth in online customers from the general public; and•

50% growth in revenue generated through broker transactions.•

Landgate’s focus on online service delivery is aimed at sustained growth within the general public market and growing market share in existing professional and government markets, through targeted new product releases, cross-selling, promotional campaigns and improved account management. Within 2009/10 there are a number of specific initiatives in this area including:

Sophisticated predictive valuation tools and customised mapping services will be offered • through Landgate’s online shop. Already offering a comprehensive range of property, mapping and imagery products, the online shop has demonstrated sustained growth through the continued release of market driven and customer defined products.

Landgate will increase capacity to service the high value, highly specialised personalised • mapping market. Improvements in business processes and the provision of standard mapping products online, will release in-house expertise to service this growth market.

The potential of SLIP was being recognised nationally and internationally in 2008/09 with • the “Spatially Enabling Government” industry award at the Asia Pacific Spatial Innovation Conference and top honours at the 2008 Western Australia Premier’s Awards for Excellence in Public Sector Management.

Significant expansion plans include:

delivery of services for new and emerging focus areas of health; infrastructure and coastal -vulnerability;

providing commercial services; and -

working with SLIP Enabler development partners to expand the delivery of online information -services across Australia. The 2009/10 focus areas will be delivery of services that support Landgate’s third party data providers and data integrators and contribute to the National Spatial Data Infrastructure agenda.

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The Interest Enquiry service, in relation to the disclosure of rights and restrictions on land at • the time of sale, will be a major growth area for Landgate. Local and State Governments will be strongly encouraged to add relevant information to the Interest Enquiry service. This will provide the basis for new market-driven products that have already been identified by key customer groups.

Expanding the delivery of Landgate’s current and future products and information through • third party service providers (brokers and value added re-sellers). Landgate will continue to wholesale its products and information, leveraging off these providers’ customer bases, resulting in the penetration of Landgate products and services into new local and national markets and establishment of new revenue streams.

Product offerings targeting the property components of accounting services (including self • managed superannuation funds) and financial planning will leverage the growth seen in the financial planning and accountancy sectors in 2008/09. Having increased the uptake of existing statutory products in these non-traditional markets, the introduction of products tailored to meet specific market needs will continue to consolidate and grow Landgate’s revenues. Importantly, growth in these sectors is not reliant on activity in the property market and helps diversify Landgate’s revenue base.

The release of a suite of online carbon accounting tools to meet the burgeoning demand for • carbon accounting services in Australia. Designed specifically for forest carbon sink projects, the suite of tools leverage the Authority’s professional expertise and extensive archive of satellite imagery. These services have been developed in collaboration with industry and will be delivered online and through industry partners.

The re-packaging and improved delivery of land information and services to agribusiness and • natural resource management sectors will increase Landgate’s market share in these existing markets. Adding in the new carbon accounting products will generate further growth in these sectors.

In keeping with global trends Landgate will offer 3D mapping and imagery services. Employed • in regional and town planning and design, these services will address a growing need within State and Local Governments and the land development sector.

Promotional campaigns to educate the community on the availability and use of land information • to make better informed decisions when purchasing property will continue.

Business Improvement

Landgate’s focus on improving its business systems and work processes will continue to deliver internal efficiencies and better services to customers. A complete review of all Landgate products will deliver significant cost savings by targeting non-performing products for decommissioning. The Product Development Plan will identify opportunities for both end-to-end product development processes for new markets and opportunities to work with commercial partners to manage the delivery of successful products into the market. Landgate will focus its business development efforts in the areas of better defining target markets and building business associations.

During 2009/10 Landgate will structurally align itself to facilitate business expansion through the creation of a Business Development Unit. This team will focus on researching and developing new business opportunities and partnering opportunities to grow and meet the future needs of our customers and ensure the financial sustainability of the Authority.

Business initiatives include:

National Electronic Conveyancing System (NECS). NECS is planned to be implemented in • Western Australia in 2010/11 and has been agreed in principle by the Council of Australian Governments. Work has already commenced and will be progressed through 2009/10. This system will revolutionise, and to an extent, standardise how land is conveyed throughout Australia. Our customers will benefit from improved business processes and consistent legislation that will allow interoperability for the industry on a national basis. Changes to the Transfer of Land Act 1893 are critical for full implementation of the system.

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From a Landgate perspective, the interfaces between NECS and iLand will provide for more • efficient internal business processes that culminate in automated registration of land dealings. Landgate’s move into third party services will also complement NECS, in that, these providers will also provide retail services to the conveyancing industry.

A 3D model of Western Australia. In partnership with a major spatial industry partner, • Landgate will launch a commercial service delivering a 3D model of Western Australia for use by professional customers in government and industry. The quality and range of the data will provide the foundation for a world leading service that will have extensive application in regional planning.

Real-Time Positioning (RTP) will deliver centimetre-level positioning services to improve • regional infrastructure and resource projects and to agricultural areas for precision agriculture. This program leverages Landgate’s current investment in 26 Continuously Operating Reference Stations (CORS).

The office of the Western Australian Land Information System (WALIS) will work with strategic • industry partners to deliver improved land information and currency for key land information data sets. A restructured process for the capture and delivery of the State’s imagery, aerial photography and mapping data will be implemented providing cost savings for the State through economies of scale. This process will utilise key technologies, people and processes, such as the State Land Information Capture Program (SLICP) and SLIP Enabler.

Further development of the iLand program to deliver an integrated suite of business solutions • (processes, structure, legislation and systems) that facilitate realisation of Landgate’s strategic goal of delivering integrated land information across the State. The iLand program will initially target improvements in Registration Services, and specifically plan and document lodgement processes.

Specific activities for 2009/10 include:

- delivery of generic fee payment solutions;

- online transaction lodgement;

- auto examination of documents;

- delivery of a workflow and status tracking solution;

- commencement of core systems integration; and

- simplification of strata processes.

Implementation of an Intellectual Property (IP) Framework that addresses all aspects including • raising awareness of IP across the Authority, strategies for protecting, managing and exploiting and commercialising the Authority’s IP.

IT initiatives include:

increasing Landgate’s internal processing capacity and reducing its business risk by continuing • the move from large enterprise level servers to a more cost effective platform;

protecting Landgate’s core IT services with a flexible and robust security system;•

delivering a scalable storage solution to service the storage and delivery requirements for • Landgate’s new generation products and services;

upgrading the currency of software and operating system support to ensure Landgate’s • business services are supported and meet customer needs; and

commencing the implementation of the records management system for electronic • documents.

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3. // Customers and Stakeholders

Providing Customer Value

Building on the positive results from the 2008 Customer Satisfaction Survey, Landgate will continue to excel for its customers, and work with them to understand their business and improve their outcomes. As well as consolidating its relationship with existing customer groups Landgate will identify and grow new market opportunities and develop relationships with those customers.

Landgate will use information gathered from its customer groups to provide the major drivers to business strategy development. This approach is critical to achieving the Authority’s objective of becoming a more customer and market-driven organisation. Key customer values will be reflected in the approach Landgate takes to its service delivery particularly with respect to known customer requirements for information availability, timing, accuracy, access and reliability of service.

During 2009/10, Landgate will:

use its complaints management system to identify customer service gaps and to drive service • improvements across the Authority. Landgate’s service performance will be monitored and reported against its Customer Service Charter;

implement a customer information management system that gathers key data about our • customers and builds our knowledge about our customers’ businesses, their targets and their information needs. This will also assist in formulating messages that will help existing and potential customers understand the products available from Landgate and the benefits that these will provide for them;

utilise the new Landgate Cloisters customer facility to engage with our customers on a more • personal level through targeted presentations, information sessions, facilitation of settlements, displays of products and services, product launches and hosting forums for major stakeholders. This facility will cement Landgate’s presence in the Perth CBD and will become a recognised centre for the land information industry;

continue to educate and engage our customers (current and potential) on Landgate’s products • and services through targeted media campaigns, training and promotional events and account management;

work with our existing and potential customers and undertake targeted market research to • ensure that new product development and promotion is based on identified market demands and addresses customer needs;

engage key industry and stakeholder groups through Landgate’s account management team • and Customer Service Council, to foster strong relationships and consult on key issues and business directions;

work with government agencies and industry to make sure that the SLIP services continue to • be developed to meet their needs; and

continue to develop an expanded distribution model through third party land information • distributors to maximise market penetration for products, particularly into specialised professional or industry areas.

Delivery of Government Services

Landgate’s delivery of its registration, valuation and geographic information services will continue to meet the expectations of its customers and the State Government.

This component of Landgate’s business is, in the most part, subject to regulated fees and charges, based on cost recovery, for the services provided. These regulated fees and charges represent the full cost to Landgate for providing these services, where transaction volumes remain within the long term trend, and are reviewed on an annual basis. Fees are subject to Government and Parliamentary scrutiny. Traditionally this is the non-discretionary part of the business – basic requirements are prescribed by legislation, both in terms of what is provided and how it is priced.

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While statutory products and services represent the majority of Landgate’s revenue and business activities, the ability of the organisation to influence the property market and generate additional business is quite limited. Transaction levels have always followed the property cycle and the valuation cycle for rating and taxing. Landgate is developing plans to minimise the impact of these cycles on its business. The initial focus of this initiative has been search activity, which has been identified as potentially having independent drivers that are not related to the property cycle. Work on this initiative will continue with the financial, insurance and professional services customer segments identified as high potential areas.

Landgate will achieve all performance targets set in the State Budget for 2009/10 and in the Chief Executive’s performance agreement with the Premier. These measures and targets deal with the quality, quantity, timeliness, effectiveness and cost efficiency of service delivery for registration, valuation and geographic information.

Landgate’s outputs are summarised as follows:

delivery of timely and accurate land registrations;•

capture and delivery of new imagery as part of the cyclical program covering the State. 2009/10 • will see the widespread adoption of new capture technologies and processes to support an enhanced delivery of the spatial data required by government, industry and the community for sound decision making in the face of climate change and economic uncertainty;

ninety five per cent of deposited plans and strata plans to be lodged electronically;•

conduct general valuations for 26 regional local governments, based on gross rental value;•

complete a general valuation across the State based on unimproved value; and•

a statutory requirement to provide valuations for all pastoral leases on State land.•

Strategic Alliances and Partnerships

Strategic business alliances and partnerships are important to Landgate’s future success as they provide opportunities to expand into new markets, increase speed to market and to build Landgate’s capacity. Landgate’s objective is to have ten industry partnerships in place by the end of 2009/10.

In 2009/10, Landgate will be operating in the national and international land information market through direct commercial partnerships. It will be applying its new expertise in building partnerships to deliver commercially successful products through the channels opened by these partnerships. This expertise includes;

development of commercially sound business models that establish a place for Landgate in • selected national markets;

increasing timeliness to market for new products by aligning with partners that provide synergies • in product development and delivery and by improving internal business processes;

expanding market share by targeting key third party land information brokers and resellers that • have well-developed market relationships and those who are seeking new products that can be built from Landgate’s data sets across land tenure, valuation, imagery and mapping;

leveraging Landgate’s existing products into new markets through strategic alliances. Landgate • will utilise its SLIP Enabler to provide access for partners and clients to its data sets and products; and

expanding international consultancy projects. Landgate is increasingly recognised internationally • as a leader in the areas of land administration, satellite remote sensing and land information products and services. The purpose of Landgate International is to market Landgate’s systems, products and consultancy capacity to the global commercial market. For the potential in the international market to be realised, Landgate International will grow its business based on a pro-active account management approach with key customers (e.g. countries or regions) and continue to build influential relationships and networks.

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Landgate will continue its existing relationship with Curtin University of Technology and the Cooperative Research Centre for Spatial Information to build expertise and business opportunities focussed on achieving Landgate’s strategic objectives.

Data Improvement and Integration

A program of data quality improvements has been in place to ensure that Landgate’s 14 fundamental datasets, which are essential to providing government, industry and the public with land information and property services, are fit for purpose. In 2009/10 Landgate will embark on a range of innovative and collaborative cross-government and community based initiatives that will improve data quality by leveraging existing systems, including SLIP Enabler and emerging online technologies to capture and maintain key data.

Initiatives and projects for 2009/10 include:

providing direct access to partner agencies and utilising ‘crowd sourcing’ technologies to help • maintain the topographic database for the State. This will also allow Landgate to continue to grow the products and markets for location based services;

making all titles available digitally (there are approximately 40,000 remaining paper titles) and, • through collaboration with land owners, all deeds will be converted to the Torrens title system;

continuing to enhance the quality of key valuation data by improving data accuracy, facilitating • web access and improving the utilisation of geographic information systems (GIS) and spatial display of valuation data;

improving the accuracy of the street address database through automatic validation and • feedback. Street address is a primary search key and is critical for emergency services, transport services and utilities;

providing the State’s valuation rolls online; and•

making native title datasets available for download through SLIP Enabler.•

* Earth is Art Image | Meandering Medusa

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4. // People and Leadership

Landgate recognises that its people are vital to its future success. Landgate will build an engaged, capable and enterprising workforce. It will develop its staff in commercial, technical and communication skills. With the recovery of the tight conditions in the Western Australian labour market, Landgate expects to improve its recruitment and retention of skilled staff, with the possible exception of geospatial staff who remain in high demand. During 2009/10 Landgate will;

implement strategies for workplace improvement identified from the 2008/09 employee • engagement survey;

maintain levels of employee engagement that will continue to exceed industry benchmarks; •

introduce a succession planning and knowledge sharing framework that involves Landgate’s • staff, fixed term contractors and sub-contractors;

deliver an on-line recruitment system;•

expand programs to improve the commercial and communication skills of management and • staff;

increase the effectiveness of Landgate’s cadetship and graduate programs through improved • links with the Curtin University of Technology;

provide staff with the training and opportunities to be involved in international consultancy • projects; and

establish an alliance with Swan TAFE, City of Swan and local community and recruitment • organisations to train Indigenous Australians with the core skills for job opportunities at Landgate and the City of Swan.

Landgate will also continue its programs that contribute to the community. These include the School Community Industry Link Program (SCIL) where Landgate staff mentor students from local schools. There is also targeted fund-raising for community organisations such as the Red Cross Blood Bank, local bush fire brigades and the State Emergency Services.

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// PART C - ASSET INVESTMENT

This part of the SCI provides an outline of capital expenditure in accordance with Section 4(e) of the Land Information Authority (Policy Instruments) Regulations 2006.

In 2009/10, Landgate will undertake an Asset Investment Program (AIP) totaling $15.6 million. In compliance with the Financial Reporting Standards, total investment in capital will be $17.4 million, of which $15.6 million will be capitalised and $1.8 million will be expensed via the Income Statement.

The program will continue the development of infrastructure and IT assets, create new business infrastructure, improve the quality of our land information and the roll-out of new commercial products and services. The program will also fund the further development of iLand, with a key focus in 2009/10 being to re-engineer existing business processes to eliminate inefficiencies, simplify processes and take into consideration new ways of working (e.g. online, mobile) and to commence the changes necessary for the introduction of NECS.

The AIP is a key enabler in maintaining the integrity of Landgate’s systems, data and building infrastructure and funding future demands and new opportunities at no extra cost to government.

The investment will strategically position Landgate to offer online goods and services that generate a return from the State’s land information asset and deliver effective systems for core operations in land registration, valuation and geographic information.

The objectives of the program are to:

fund capital requirements from operating surpluses• 3;

provide high quality ‘fit-for-purpose’ land information;•

maintain an up-to-date and efficient operating environment;•

streamline processes supporting the State’s land market;•

grow the State’s spatial information industry; and•

expand and develop Landgate’s online shopfront for land information.•

Landgate’s AIP for 2009/10 is represented as follows:

Asset Replacement• – $4.25 million is planned for the provision of ongoing replacement and upgrades of Landgate’s facilities, IT hardware and third party software. The program includes upgrades to power, air conditioning and security systems as part of planned building maintenance. An amount of $2 million has been proposed for the refurbishment and reconfiguration of the Midland building to maximise the economic usage of the facility. Information technology assets such as servers, storage devices, PCs, monitors and printers will also be replaced according to a rolling program and major software components will be upgraded as license conditions dictate.

Business Infrastructure• – expenditure of $4.0 million is planned for the upgrades of major internal business systems in 2009/10. This includes the development of infrastructure critical to support new (iLand) and existing core systems that contribute to Landgate achieving its objectives of improving speed to market of commercial new products and services. The program for the year also includes increasing the capacity for data storage, and investment in new service management infrastructure.

3 Where this is not feasible, the appropriate mix of short and long term borrowing will be applied in accordance with operational and strategic funding needs.

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Data Quality Improvement• – $0.32 million is provided for the management and improvement of the core datasets for which Landgate is the custodian. These datasets underpin Landgate’s and the State’s land information and associated services, and are crucial to the operations of government and industry. A significant amount of data quality improvement projects have been completed, however, there is a continuing need for this data to be made available in formats that can be fully integrated with data held by other agencies.

Commercial Products & Services• – $2.5 million is provided for Landgate’s business initiatives. Primary activities include the development of web-enabled delivery and business solutions. These currently represent approximately 17 per cent of Landgate’s revenue. Streamlined land market services will result in significant operational efficiencies through e-commerce, benefiting the users of title, registration and valuation services.

In addition to these projects, the program includes plans for initiatives and investments in innovation, and research and development. This investment reflects Landgate’s desire to improve and expand the Authority’s commercial products and services into non-traditional and new and innovative areas, ensuring Landgate’s future commercial viability.

iLAND (Core Systems Renewal Program)• – An initial $4.5 million has been allocated for 2009/10 to commence implementation of iLand. The key purpose of iLand is to deliver an integrated suite of business solutions (processes, structure, legislation and systems) that facilitate realisation of Landgate’s strategic objectives. The iLand program will initially target improvements in Registration Services, and specifically, plan and document lodgement processes (refer Business Improvement for more detail). iLand is a multi-year program, initially funded for $4.5 million, with funding for the remaining years subject to a separate Asset Investment Project submission, which will be developed in 2009/10.

Some initial cost savings will be realised in 2009/10 and these savings will increase exponentially in the following years.

ASSET INVESTMENT ESTIMATES AND PROPOSED FUNDING SOURCES

Project Description $000’s

Asset Replacement 4,250

Business Infrastructure 4,031

Data Quality Improvement 315

Commercial Products & Services and Innovation 2,500

iLand 4,500

TOTAL 15,596

Proposed Funding Sources

Service Appropriations 0

Holding Account 654

Internal Funds and Balances 14,942

TOTAL 15,596

Note: This table shows the capitalised amount of the Asset Investment Program. In 2009/10 Landgate’s total investment in capital programs will be $17.4 million. Government is now requiring reporting to comply with the Australian Equivalents to International Financial Reporting Standards AASB138 Intangible Assets, therefore, $15.6 million will be capitalised as shown in the table and $1.8 million will be expensed via the Income Statement.

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// FUNDING SOURCES 2009/10 (000’S)

Internal Funds and Balances 14,942

Holding Account654

// ASSET INvESTMENT PROjECTS 2009/10 (000’S)

iLand 4,500

Commercial Products and Services 2,500

Data Quality Improvement 315

Asset Replacement 4,250

Business Infrastructure 4,031

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// PART D - BUSINESS MANAGEMENT

This part of the SCI is in accordance with Section 4(j) of the Land Information Authority (Policy Instruments) Regulations 2006 and addresses ‘the types of information that the Authority is to give to the Minister in an annual or half-yearly report or otherwise.’

Dividend Policy

Landgate’s projections do not provide for a dividend to government for the first five years of operation. This is considered necessary to place Landgate on a firm financial footing. It will enable Landgate to internally generate funds required to achieve the level of capital investment required to better position itself in terms of service delivery and achieve future revenue forecasts. There is an expectation that Landgate will be in a position to pay dividends after 2012/13.

Borrowings

Landgate’s Asset Investment Program is funded principally from cash reserves and retained earnings together with the application of the depreciation holding account and appropriations from government. Where this is not feasible, the appropriate mix of short and long term borrowing will be applied in accordance with operational and strategic funding needs.

Accounting Policy

Landgate’s financial statements are prepared on the accrual basis of accounting using the historical cost convention. They are general purpose financial reports prepared in accordance with the Australian Accounting Standards, Statement of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board as applied by the Treasurer’s Instructions. Details of Landgate’s significant accounting policies can be found in the notes accompanying the financial statements in the Authority’s Annual Report.

Performance Reporting

Landgate’s Board of Management is provided with monthly reports that monitor performance against business targets, along with information on the financial position and capital expenditure. The Minister will be provided with such information through:

a half-yearly report covering the first six months of the financial year, in accordance with the i. requirements of Section 80 of the Land Information Authority Act 2006; and

an annual report prepared in accordance with the provisions of the ii. Financial Management Act 2006 and Treasurer’s Instructions.

In addition, the Board and Chief Executive will advise the Minister of any significant variations in the performance of Landgate.

Community Service Obligations

Community Service Obligations are services that are not otherwise commercially viable, and result from the Government’s desire to satisfy the broader economic, environmental and social needs of the community. Functions that Landgate performs that fall within this category include State-wide surveying and mapping programs, the collection and maintenance of fundamental land information, and the provision of access to government geographic information. Landgate is currently funded to undertake these functions through a direct appropriation of recurrent funds from the annual State Budget (rather than through a community service obligation payment administered by the Department of Treasury and Finance).

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// PART E – FINANCIAL STATEMENTS AND BUSINESS TARGETS

Financial Outcomes

2009/10

Forecast

Economic Assumptions

Growth

Statutory Services- volume Growth % 3.2%

Statutory Services- Fees Growth % 4.8%

Other Land Info Services- Revenue Growth % 39.2%

valuation Services- Revenue Growth % 25.1%

Performance Indicators

Return on Fixed Assets % 13.8%

Return on Equity (Before Income Tax) % 8.3%

Return on Equity (After Income Tax) % 5.8%

Debt to Equity % 40.9%

Profit (Before Income Tax) on Turnover (excl Govt. Revenue) 7.0%

Financial Outcomes ($000’s)

Operating Profit (Before Income Tax) $7,274

Operating Profit (After Income Tax) $5,091

Capital Expenditure4 $17,399

Accruals from/to State Government ($000’s)

Payroll Tax & Other Duties $3,719

Income Tax Equivalents $2,183

Total $5,902

Revenues from State Government $28,155

Net Revenue from State Government $22,253

4 As noted in Part C, total investment in capital programs in 2009/10 will be $17.4 million, of which $15.6 million will be capitalised and $1.8 million will be expensed via the Income Statement.

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Business Targets

2009/10

Forecast

KeyEfficiencyIndicators

Access to Land Information

Average Cost per Land Registration Action $32.68

Quantity 2,213,987

Average Cost per Land Information Action $46.34

Quantity 637,563

Valuations

Average Cost per Valuation $14.44

Quantity 1,505,920

Access to Government Geographic Information

Average Cost per Key Result Area $290,167

Quantity 6

Key Effectiveness Indicators

Access to Land Information

The extent to which the currency and relevance of Land Information Databases meet the needs of the Western Australian community

100%

Claims against registered interests as a result of fraud, negligence or errors, settled by the Crown

Nil

Valuations

International standards for accuracy and uniformity of rating and taxing values are met:

Median Ratio Test:

- Gross Rental Value >92.5%

- Unimproved Value >92.5%

- Rural Unimproved Value >80.0%

Coefficient of dispersion:

- Gross Rental Value < 7%

- Unimproved Value < 15%

- Rural Unimproved Value < 25%

Adjustments to Rating and Taxing values as a result of Objections and Appeals as a percentage of total values in force

< 0.2%

Access to Government Geographic Information

Useability of WALIS land information is determined by user awareness, acceptance and reuse.

Awareness:

Increase in first time participants at WALIS functions 5%

Increase in repeat participants at WALIS functions 15%

Acceptance:

Increase in the number of first time customers accessing land information from WALIS 35%

Re-use:

Increase in the number of return customers accessing land information from WALIS community members

35%

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Financial OutcomesThis part of the SCI is in accordance with Section 4(h) of the Land Information Authority (Policy Instruments) Regulations 2006 and addresses ‘estimates of income and expenditure’

2009/10

Forecast

$000’s

Revenue

Statutory Land Information Services 75,694

Other Land Information Services 16,664

Valuation Services 11,140

Interest Earned on Cash Balances 988

Total Revenue from other than State Government 104,486

Revenue from State Government

- Service Appropriations 27,726

- Resources Received Free of Charge 429

Total Revenue from State Government 28,155

REVENUE 132,641

Expenditure

Employee Benefit Expenses 65,215

Supplies and Services 26,750

Accommodation 11,920

Depreciation 9,382

Payroll Tax 3,719

Other Operating Costs 8,381

EXPENDITURE 125,367

NET PROFIT/LOSS 7,274

Income Tax Equivalents 2,183

AfterTaxProfit/Loss 5,091

Dividend to Government % -

CHANGE IN EQUITY 5,091

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* Earth is Art Imagery is taken by Landgate and available to purchase on www.landgate.wa.gov.au/earthisart

P.O Box 2222, Midland 6936, Western AustraliaPhone: (08) 9273 7373Email: [email protected]: www.landgate.wa.gov.au

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