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PUBLIC TRANSPORT AUTHORITYannual report 2006/07

REPORTING PRINCIPLESFulfilling the Government’s Visionfor Western AustraliaThe Public Transport Authority (PTA) is required todemonstrate in its annual report that it contributesto the State Government’s vision for WesternAustralia: “The best opportunities for current andfuture generations”. The vision is set out in theSeptember 2006 document Better Planning: BetterFutures which establishes strategic outcome goalsunder the fi ve headings:Better ServicesJobs and Economic DevelopmentLifestyle and the EnvironmentRegional DevelopmentGovernance and Public SectorImprovementIn this report, the PTA fulfi ls this reportingobligation by identifying the relevant strategicoutcomes and the contribution the PTA has madeto them in 2006/07 through:• Operational reports which show theeffectiveness and effi ciency of the PTA’stransport services – see pages 5-38• Compliance Reports – see pages 48-53• Audited key performance indicators report –see page 61• Audited fi nancial report – see page 80Measuring Effectiveness andEfficiencyTo make its contribution to the Government’svision for Western Australia, the PTA has adoptedtwo outcomes:1. Accessible, reliable and safe public transportsystem2. Protection of the long-term functionality of therailway corridor and railway infrastructureThe PTA’s indicators of success in achieving thefi rst of these outcomes are based on patronageand service provision, accessibility, reliability,customer satisfaction, safety and cost-effi ciency.Its indicators of success in achieving the second ofthese outcomes are based on quality managementof the railway corridor and residual issues of the railfreight network. Note that the rail freight networkwas leased to private sector operators in 2000.The OrganisationThe Public Transport Authority is responsiblefor the following transport services in WesternAustralia:• rail, bus and ferry services in themetropolitan area under the Transperthbrand;• public transport services in regional centres;• road coach and rail passenger services toregional areas under the Transwa brand; and• school buses.In addition to these transport services, it isresponsible for designing and building transportinfrastructure, principally through its entityNew MetroRail which is extending the Perthmetropolitan rail network, and for protectingthe long-term viability of Western Australia’sfreight rail corridor and infrastructure.The PTA’s PurposeTo increase the use of public transport throughthe provision of customer-focused, safe andcost-effective passenger transport services.The PTA’s AimTo make public transport an attractive andsustainable choice for connecting people andplaces.The PTA’s valuesThe people of the PTA:• value and respect customers, suppliers andeach other;• are committed to safety;• encourage each other to reach their fullpotential;• are honest and exhibit high levels of integrity,openness and ethical behaviour;• recognise and reward achievement, initiativeand innovation;• strive for continuous improvement ineverything they do; and• are environmentally responsible.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

CONTENTSChief Executive Offi cer’s Overview 2Transperth 5Regional Town Bus Services 26School Bus Services 29Transwa 32PTA People 39Senior Management Structure 45The PTA Executive 46Compliance Reports 48Compliance Statements 53Electoral Act 1907 – Section 175ZE 54Explanation of Major CapitalExpenditure Variations 56Independent Audit Opinion 58Certifi cation of Key Performance Indicators 60Audited Key Performance Indicators 61Financial Statements 77Financial Statements Index 78Certifi cation of Financial Statements 79Notes to the Financial Statements 84Contact Details 123Roof construction at Esplanade Station, part of the new SouthernSuburbs Railway.To the Hon. Alannah MacTiernan MLAMinister for Planning and InfrastructureIn accordance with Section 61 of the FinancialManagement Act 2006, I submit for yourinformation and presentation to Parliament theAnnual Report of the Public Transport Authority ofWestern Australia for the year ended 30 June 2007.The report has been prepared in accordance withthe provisions of the Financial Management Act2006.Reece WaldockChief Executive Offi cerPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/071

CHIEF EXECUTIVE OFFICER’S OVERVIEWThis has been a milestoneyear for the Public TransportAuthority, with Transperthachieving 100 million boardingsacross its bus, train and ferryservices for the fi rst time.The overall metropolitanpassenger growth rate slowedto 2.4% compared with3.7% last year, largely due todisruptions to bus services inthe central and southern areasof Perth for most of the yearthrough work on the SouthernSuburbs Railway. This point is demonstrated by thedisparity between the growth of 4.8% for trainsand only 1.1% for buses. Nonetheless, most of ourcustomers have chosen to ride out this diffi cultperiod and we look forward to their contributionto robust growth across all services in the future,in particular supporting our new Southern SuburbsRailway which will provide a truly competitiveoption to car travel.The growth of our business is being underpinnedby four key factors:• strong government investment in publictransport infrastructure• continuing high petrol prices• accelerated housing and commercialdevelopment in public transport corridorsfuelled partially by the economic boom• a growing acceptance that climate change isman-made and that there is a clear need toreduce our impact on the environmentIn these circumstances, people are realising thatpublic transport is not just for those who haveno choice, but is a critical part of our future as asociety.The economic boom has sparked rapiddevelopment in the central city area, whereconstruction has not kept up with demand foroffi ce and retail space. Over the next fi ve to sixyears, the number of people working in the centralcity is expected to increase by a further 20,000to 30,000, placing enormous pressure on theroad system and parking facilities. Without doubt,bus and train services will be the major meansby which these pressures are overcome. I amconfi dent the PTA can rise to the challenge andstay ahead of demand for transport services.This year, we took a big step towards meetingthis growing demand by ordering another 15three-car train sets, to be delivered over twoand a half years from late 2008. This order is inaddition to the new rolling stock purchased forthe Southern Suburbs Railway. The new B-Seriestrains are quieter, offer improved accelerationand comfort, have a practical see-through designand feature regenerative breaking for improvedenergy effi ciency. We are also expecting deliveryof another 306 Compressed Natural Gas (CNG)buses, with Euro 4 environmental rating, overthe next four years. Specialised CNG “fast fi ll”refuelling facilities are being set up at the PTA’sTransperth bus depots across the metropolitanarea to support the expanded bus fl eet.There seems to have been a general acceptanceover the past 12 months, not least by the FederalGovernment, that climate change is man-made.This follows the release of many high-level studieson the issue. During the same period, supportin Perth for the Southern Suburbs Railway hasskyrocketed to 92%. It is notable that this fi gurerefl ects responses from people across the city, notjust in those areas where there will be a directtransport benefi t from the railway. People want railand public transport in general to help safeguardthe future. I believe climate change, combined withever-increasing petrol prices, is playing a major rolein encouraging people to question the viability oftheir cars for commuting to work and changingthe way they think about public transport.The development of Perth around major publictransport corridors is another factor drivingincreasing passenger numbers. Developmentin the southern corridor in particular hasaccelerated dramatically since work on therailway commenced. The PTA is participatingin this process by planning for transit orienteddevelopments around key railway stations suchas Murdoch, Cockburn and Wellard. These higherdensity mixed-use developments will ensure the2 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

“PUBLIC TRANSPORT ISNOT JUST FOR THOSE WHOHAVE NO CHOICE, BUT ISA CRITICAL PART OF OURFUTURE AS A SOCIETY.”stations become destination stations, not just originstations. People will travel to them for employment,shopping and other activities.I’m sure people are frustrated by delays incompletion of the Southern Suburbs Railway.At this time, all the major construction work isalready fi nished, including the 1.3km long tunnelunder the central city area, but there have beensome unavoidable hold-ups with control systemsand signalling. This is the biggest, most complexcivil construction project ever undertaken inWestern Australia. There is always a risk of delaysin a project of this magnitude, particularly duringa boom when the construction industry is underenormous pressure and demands for skilledlabour are extremely strong. However, the projectremains under tight budgetary control. Whenit is fi nished during the 2007/08 fi nancial year,Perth will have 180km of dual track electrifi edrail with a fully integrated feeder bus service thatwill contribute to sustainable development andmeet the requirements of growth in the southernsuburbs. With support for the railway growing, weare confi dent it will be an unqualifi ed success andwill increase our daily Transperth train patronage toabout 160,000 boardings.In planning to operate the Mandurah Line, thePTA has recruited more than 200 people duringthe year, increasing our workforce by 17% to1,236 full-time equivalent staff. Many of the newemployees are railcar drivers or transit offi cers.This successful recruitment drive has positioned usfor a smooth transition to include the new Perth toMandurah service into the Transperth system.Transperth passengers have been very quick toembrace our exciting new SmartRider smartcardbasedticketing system since its full implementationacross the public transport network in March2007. After just three months, SmartRider alreadyaccounted for 55% of Transperth’s boardings.This compares with only 50% share for the oldMulti-Rider discounted travel system after it hadbeen in operation for many years. I am hopefulthe SmartRider system will reach 75% coverageof train, bus and ferry journeys over the next fewyears.The PTA and the West Australian FootballCommission (WAFC) took a big step towardseasing traffi c and parking problems on AustralianFootball League match days at Subiaco, byintroducing a joint ticketing arrangement for the2007 season and beyond.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/073

CHIEF EXECUTIVE OFFICER’S OVERVIEW“TRANSPERTHPASSENGERS HAVEBEEN VERY QUICKTO EMBRACEOUR EXCITINGNEW SMARTRIDERSMARTCARD-BASEDTICKETING SYSTEM”The WAFC makes a contribution towards coveringthe cost of the many extra public transportservices provided for the football and, in return,football patrons travel to and from matches withpublic transport provided for in their membershipcost. Joint ticketing has been operating for sometime for Western Force rugby matches at Subiacoand special events at Burswood. Keen support frompatrons ensures this practical arrangement is hereto stay.I am pleased to report that our customersatisfaction level remains high at 83% across allTransperth services, a slight improvement onlast year. This is particularly pleasing because theincrease was from a high level and there wasconsiderable disruption to bus services because ofworks on the Southern Suburbs Railway during theyear.A strong organisation such as the PTA is only everas good as its people. Once again our staff haveexcelled in a year of solid achievement for theorganisation. We continue to value the views of ourpeople, as shown in a raft of initiatives developedin response to last year’s organisation-wideopinion poll. The initiatives cover issues such asimproved selection procedures, teamwork, training,involvement in decision-making and balancebetween work and life commitments. Together,we can look forward to another fruitful year in2007/08, in which major events will include:• commencement of services on the SouthernSuburbs Railway• roll-out of the Southern Corridor BusNetwork to complement the new rail service• introduction of the Rockingham City CentreTransit System• delivery of 65 new compressed natural gasbuses• a new customer information system on trainstations• new train stations at Victoria Park andKelmscottThe management and future planning of publictransport in Western Australia is a criticalfunction to our State’s sustainable future. Asmore questions and challenges emerge on futureworld energy sources, climate change and thedetrimental health and economic affects of traffi ccongestion, public transport in Perth is placed toplay a greater role in connecting our community.Reece WaldockChief Executive Offi cer4 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

TRANSPERTHTransperth is the brand and operating name of thepublic transport system in metropolitan Perth.The Transperth system consists of a bus network,a fully electrifi ed suburban train system and a ferryservice. The system is managed by the TransperthBranch of the Transperth, Regional and School BusServices Division.Transperth bus and ferry services are providedunder commercial contract arrangements, whileTransperth train services are provided by thePTA’s Transperth Train Operations Division.Passenger information is provided throughinformation offi ces and a call centre. Theinformation offi ce at Perth station is operatedby Transperth Train Operations while all otherinformation offi ces are operated by Transperthcontractor, Serco.OBJECTIVES AND OUTCOMESThe objectives and outcomes for Transperth for 2006/07 were:OBJECTIVEPrepare for the opening of the Southern SuburbsRailway (SSR)Improve facilities to clear crowds from SubiacoOvalIntroduction of the Customer Information System(CIS), a component of the PTA’s new train controlsystem designed to provide passengers withaccurate, up-to-date and timely information.Continue the installation of the Recording andPassenger Information Dissemination System(RAPID) to A-series railcar sets.OUTCOMECompleted a plan, with community input, to modifythe bus route network in the southern corridorand parts of the south-eastern corridor to provideeffective feeder services to the new railway.Developed bus and train timetables for the newservices.Completed support arrangements to commenceoperations on the new stations (including trainingof new passenger staff, ticketing assistants, securityarrangements and cleaning).Carried out an initial public information campaign.Established a customer service branch within theTransperth Train Operations division to furtherimprove customer relations in anticipation ofsouthern rail line operations and new City Stationarrangements.Constructed a new six-car platform at WestLeederville station to allow integration of Subiacospecial events services with SSR.To allow operation of six-car trains, a special eventssiding was completed at Daglish station and themain platform at West Leederville station wasextended.Installation of equipment commenced in May 2007with completion planned for December 2007.RAPID installed on 19 A-series railcar sets duringthe year. The program is expected to be completedin 2009/10.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/075

TRANSPERTHOBJECTIVEImprove passenger safetyIntroduce the SmartRider ticketing system toreplace the MultiRider systemReplace existing ticket vending machines at trainstationsDevelop a bus feeder network for the SouthernSuburbs RailwayEncourage the use of public transport for specialeventsDevelop a more rigorous approach to measuringon-time runningContinue to pursue patronage growth, highpassenger satisfaction and a high level of on-timerunningOUTCOMETransit Offi cers (previously Transit Guards) trainedin the use of oleoresin spray to help deter antisocialbehaviour.Successfully implemented in March 2007.Deployed 98 Passenger Ticketing Assistants tomonitor the fare-gates at “closed” stations.Three machines being trialled at Perth andBayswater stations.A comprehensive review of the bus route networkin the southern corridor and parts of the southeasterncorridor was carried out to modify thenetwork and integrate it with the new train lineand a conceptual bus network was developed.The community consultation process to obtainfeedback on the conceptual bus network was thelargest ever undertaken by Transperth with over2,600 people attending 32 community displays.Amendments were made to the conceptualnetwork based on community feedback.An agreement was entered into with the WestAustralian Football Commission (WAFC) withrespect to joint ticketing for all Australian FootballLeague (AFL) matches at Subiaco Oval. Under theagreement membership of an AFL club includesentry to matches at Subiaco Oval and transport tothe ground on Transperth Services.Other major events for which public transportwas organised for the fi rst time were the 2007Australian Surf Life Saving Championships and theRed Bull Air Race.A new fully automated train control system wasimplemented. The GPS Reporter functionality ofthe SmartRider ticketing system was used to checkthe reliability of bus and ferry services.Continuing the trend over the past seven years,fare-paying boardings on the Transperth systemincreased by 3.2% while total boardings rose2.4%*. Despite the pressure on capacity due tothe continuing patronage growth, the overall levelof satisfaction in 2007 as shown by the PassengerSatisfaction Monitor increased to 83.0% comparedwith 82.8% in 2006. The introduction of veryprecise methods of checking service performanceshowed a decline in the proportion of bus andtrain services running on-time.*Total boardings = fare-paying boardings, free travel on passes, free travel on Central Area Transit services in Perth, Fremantle and Joondalup andfree travel on services within the Perth Free Transit Zone, plus transfers between services.6 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

KEY SERVICE MEASURES1. Patronage and Services Provided120,00088,121 90,57890,00060,00094,98598,526 100,92661,98057,407 60,05354,349 55,50430,00002002/03 2003/04 2004/05 2005/06 2006/072004/05 and 2005/06, train passenger placekilometres increased by 23.1% and total systemcapacity by 9.3%. In 2006/07, the intensive use ofthree- and six-car trains resulted in train passengerplace kilometres recording a growth rate of 6.2%which helped to increase total system capacity by3.3%. The contribution of the bus network to theincrease in passenger place kilometres over the pastfi ve years has been modest due to the relativelylow rate of increase in bus service kilometres overthis period.2. Access to Public TransportTransperth: Patronage (million)Fare-paying boardingsTotal boardings70.6%74.1% 74.0%In 2006/07, total boardings on Transperth servicesrecorded an increase of 2.4% and exceeded 100million for the fi rst time. Fare-paying boardingsincreased by 3.2%.Total boardings are fare-paying boardings, freetravel on passes, free travel on Central Area Transitservices in Perth, Fremantle and Joondalup andfree travel of services within the Perth Free TransitZone, plus transfers between services.8,0006,0004,0002,0005,537.7 5,647.3 5,843.96,387.9 6,595.72004/05 2005/06 2006/07Transperth: Access to servicesProportion of Property Street Addresses (PSA) inthe Perth Public Transport Area which are within500 metres of a Transperth stop providing anacceptable level of serviceThe graph seeks to highlight the relative easewith which the community can access Transperthservices. The ease of access is represented by theproportion of property street addresses withinthe Perth Public Transport Area that are withinwalking distance of a Transperth stop providing anacceptable level of service.3. Reliability02002/03 2003/04 2004/05 2005/06 2006/07Transperth: Passenger place kilometres (million)Passenger place kilometres is based on servicekilometres and the average capacity of the fl eetand represents the total capacity provided onthe Transperth bus, train and ferry network.The expansion of the train network throughthe establishment of new stations at Clarkson,Greenwood, and Thornlie and the introductioninto service of three- and six-car trains were themain factors that led to the expansion of capacityon the Transperth system after 2004/05. Between92.9%96.4%98.0%92.8%89.3%98.0%91.5%94.4%98.0%91.7%86.9%98.0%85.9%86.4%100.0%2002/03 2003/04 2004/05 2005/06 2006/07Transperth: Service reliability by modeProportion of services meeting on-time targetsBUS TRAIN FERRYPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/077

TRANSPERTHDuring 2006/07, Transperth adopted moreprecise methods of gathering data to measureservice reliability on all modes. From January2007, bus and ferry on-time running wasmeasured using the SmartRider ticketing system’s“GPS Reporter” functionality. This resulted in asignifi cant reduction in the proportion of busservices meeting the on-time target in 2006/07.Ferry services achieved a 100% result. On trains,the on-time module of the new train controlsystem was brought into operation from January2007 and resulted in a higher proportion ofservices not meeting the target, 13.6% in 2006/07compared with 5.6% in 2004/05. Note that theresult in 2005/06 was affected by the SouthernSuburbs Railway works program.4. Passenger Satisfaction5. Passenger Safety98%96%99%99%95%100%99%97%100%98%98%100%98%98%99%2002/03 2003/04 2004/05 2005/06 2006/07Transperth: Passenger safetyProportion of respondents who generallyfeel safe on-board during the dayBUS TRAIN FERRYNote: Measures relating to customer perception of safety at othertimes and at stations/interchanges are shown in sections dealingwith individual modes.100%75%50%86.6%84.5%85.6%82.8%83.0%The Passenger Satisfaction Monitor assessescustomer perception of safety during the day andat night-time, on-board bus, train and ferry, and atbus and train stations and ferry jetties. The graphshows that nearly all passengers feel safe on-boardTransperth vehicles during the day.25%6. Efficiency0%2002/03 2003/04 2004/05 2005/06 2006/07$1.20Transperth: Customer satisfaction overallAn independent market research fi rmcommissioned by Transperth carries out anannual Passenger Satisfaction Monitor to assessthe level of satisfaction/dissatisfaction amongpatrons in respect of various aspects of all theservices provided by Transperth. The graphshows the proportion of respondents whoexpressed satisfaction with the overall levelof service on Transperth bus, train and ferryservices, calculated as the weighted averageacross all modes.$0.90$0.60$0.30$0$0.54$0.63$0.73$0.84$0.932002/03 2003/04 2004/05 2005/06 2006/07Transperth: Total cost per passenger kilometreThe increase in the cost per passenger kilometreover fi ve years to 2006/07 was primarily due to:• Expansion of the urban train network throughextension of the Northern Suburbs line toClarkson (commissioned in October 2004), theopening of the Thornlie Line (August 2005),the commissioning of 93 additional railcars andthe capital charges and pre-implementationoperating costs associated with the Southern8 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Suburbs Rail. Transperth capital charges (interest,depreciation and Capital User Charge) increasedfour-fold to $177.9 million over fi ve years to2006/07. Capital charges represent 40% of thetotal operating cost. The increase was primarilyattributed to train operations,• Improvements in security in trains and stations,and• Increased costs of labour, fuel and maintenancefor the provisions of bus services.During 2006/07, Transperth train operationsrecruited 243 railcar drivers, customer serviceand passenger ticketing assistants and other trainsystem support personnel in readiness for thecommissioning of the Southern Suburbs Rail, and theimplementation of fare gate management at stationsin conjunction with the SmartRider roll out.Operating costs for provisions of security andcustomer service and maintenance of the railcarfl eet doubled over the period to 2006/07 to$33.5 million and $22.1 million respectively.Since 2002/03 passenger kilometres increasedby 84.5 million to 622.2 million in 2006/07. TheTransperth train system increased by 73.4 millionpassenger kilometres (36.5%) to 271.6 million,refl ecting the expansion of the network and theintroduction of 93 new railcars.With the introduction of SmartRider, which providedimprovements to information on zonal travel,student and concession fare average trip length wasrecalibrated, resulting in reduction of average triplength on buses. The effect of this recalibration on buspassenger kilometres was a reduction in passengerkilometres of 3.4% compared with 2005/06.7. Expenditure and Revenue$750.0$600.0$450.0$300.0$150.0$291.6$213.4$346.5$232.9$415.8$265.7$514.2$303.3$577.1$350.2In 2006/07, total expenditure on the Transperthsystem increased by 12.2% and operatingexpenditure (which excludes capital charges onlong-lasting infrastructure) by 15.5%. While totaland operating expenditure on the bus systemrose by 1.1% and 4.8% respectively, the trainnetwork recorded a signifi cant increase in costs.Total expenditure on trains rose 22.9% due to the200% increase in the Capital User Charge. Thisaccounted for over half of train capital charges in2006/07. Train operating expenditure increased by35.0% primarily due to the recruitment of staff forthe “closed” train stations, an integral feature ofthe new SmartRider ticketing system, and for theSouthern Suburbs Railway.$125.0$100.0$75.0$50.0$25.0$83.1$76.9$85.4$78.6$90.3$82.6$95.1$87.3$02002/03 2003/04 2004/05 2005/06 2006/07Transperth: Revenue ($ million)Fare revenue Total revenue$103.6$92.9In addition to fares paid by users, fare revenueincludes funding for the Perth Central Area Transit(CAT) service and contributions for specifi cservices which are paid to Transperth in lieu offares. In 2006/07, fare revenue increased by 6.4%due to higher fares (an overall average increase of4%), and a 3.2% increase in fare-paying boardings.Total revenue, increased by 8.9% in 2006/07, andincludes fare revenue and sundry income, e.g.advertising, infringements, rent, etc. Note thatsundry income tends to fl uctuate.Joint ticketing revenue more than doubled in2006/07 to $1.5 million, largely as a result ofarrangements with the WA Football Commission.$02002/03 2003/04 2004/05 2005/06 2006/07Transperth: Expenditure ($ million)Operating expenditureTotal expenditurePUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/079

TRANSPERTHREVIEW OF PERFORMANCE1. Service ReliabilityDuring 2006/07, Transperth changed the method ofgathering data for its reliability performance, whichhad a signifi cant effect on the outcomes in thisannual report.Trains: The service reliability target for Transperthtrain services is for 95% of services to arrive withinthree minutes of the scheduled time. In 2006/07,86.4% of services met the on-time arrival targetcompared with 86.9% in 2005/06. The reducedon-time performance was due to delays caused bytraining of new drivers, infrastructure works speedrestrictions, wet weather and heat restrictions.Increased patronage resulting in longer “dwell” timesat stations during peak periods also contributed todelays.Train service reliability has previously been manuallydetermined from train control logs. However, theimplementation of a new train control system duringthe year resulted in a fully automated and moreprecise reliability assessment. Consequently, a higherproportion of trains than previously were loggedmarginally outside the three-minute tolerance.Transperth Train Operations team members work togetherto deliver outstanding service for customers.The move to the automated capture of servicereliability is likely to have a permanent effect onreliability statistics. In addition, the introductionof services on the Southern Suburbs Railway willincrease the average journey time. For both thesereasons, the PTA will review its on-time parameterswith a view to aligning them with other railnetworks in Australia and with its bus services.Buses: The service reliability target for Transperthbus services is for buses to arrive at or depart froma terminus or travel through a mid-route timingpoint within four minutes of the scheduled time.Until January 2007, on-time performance wasmonitored by inspectors from Transperth’sService Performance Unit performing physicalchecks at various locations on the bus network.In January 2007, following the full roll-out of thenew SmartRider ticketing system, Transperth beganusing the SmartRider system’s “GPS Reporter”functionality to check on-time running based ona random sample of 1% of trips in each of thebus contract areas. The method provides a moreaccurate indication of service reliability.In 2006/07, an average of 85.9% of bus servicesmet the service reliability target compared with91.7% in 2005/06. However, on-time runningduring the fi rst six months averaged 92.6%, basedon physical checks, while the average was 81.5%during the period from January 2007 when theSmartRider system’s “GPS Reporter” functionalitywas used. The move to a more precise capture ofservice reliability is likely to see the reporting offewer bus services operating within the four-minuteon-time tolerance period.No other public transport authority in Australia hasthe technology and capacity to provide this preciselevel of automated checking of bus services.Ferries: The service reliability target for theTransperth ferry services is for services to arrivewithin three minutes of the scheduled time.Previously, random checks were carried out byinspectors. In March 2007, Transperth beganusing the SmartRider system’s “GPS Reporter”functionality to monitor on-time running on theferry service. Regardless of the change in recordingmethod, 100% of services met the service reliabilitytarget throughout 2006/07.10 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

“IN 2006/07, PATRONAGE ONTHE TRANSPERTH SYSTEMEXCEEDED 100 MILLIONFOR THE FIRST TIME.”2. Trends in PatronageIn 2006/07, annual patronage on the Transperthsystem exceeded 100 million for the fi rst time. Totalboardings* increased by 2.4% from 98.526 millionto 100.926 million, while initial boardings#recorded an increase of 3.4% from 71.845 millionto 74.260 million. Fare-paying boardings rose 3.2%from 60.053 million to 61.980 million.Over the past fi ve years, total boardings haveincreased by 15% and fare-paying boardings by14%, or at an average annual rate of 3.2%. Between2003/04 and 2006/07, total boardings on busincreased at an average annual rate of 3.1% whileon train an average growth rate of 4.7% wasrecorded. The average rate of increase in fare-payingboardings was 2.3% on bus and 6.3% on train.In 2006/07, the ferry service, (which contributesaround 0.5% to total patronage), recorded a highrate of growth (over 8%) in both total and farepayingboardings for the second year in successionfollowing four years of declining patronage.Total capacity provided on the Transperth systemexpressed in terms of passenger place kilometrescontinued to increase. In 2006/07, Transperthprovided total capacity amounting to 6,595.7 millionpassenger place kilometres, an increase of 3.3% fromthe 6,387.9 million recorded in 2005/06.On a per capita basis, public transport usagewithin the Perth metropolitan area increasedfrom 48.1 to 48.7 initial boardings. This increaseof 1.3% compares with an increase in populationof 2% in the Perth Statistical Division.During 2006/07, Transperth successfullyundertook a number of marketing initiativesto encourage the use of public transport toaccess special events. For the fi rst time, theWest Australian Football Commission (WAFC)signed up to joint ticketing with Transperth for allAFL matches at Subiaco. This agreement allowspatrons to travel to football games on publictransport at no additional cost. Other majorevents for which public transport was organisedfor the fi rst time were the 2007 Australian SurfLife Saving Championships and Red Bull Air Race.3. Disability AccessTransperth aims to provide wheelchair accessto all facilities and services, and made furtherprogress toward achieving this objective duringthe year.Trains: All Transperth trains are accessible bypeople in wheelchairs. The current status ofaccessibility of train stations is shown in the table.*Total boardings = fare-paying boardings, free travel on passes, free travel on Central Area Transit services in Perth, Fremantle and Joondalup andfree travel on services within the Perth Free Transit Zone, plus transfers between services.#Initial boardings = fare-paying, free travel on passes, free travel on Central Area Transit services in Perth, Fremantle and Joondalup and freetravel on services within the Perth Free Transit Zone.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0711

TRANSPERTHTrain station disability accessINDEPENDENT ACCESS* PARTIAL ACCESS † LIMITED ACCESS † TOTAL STATIONS2002/03 8 34 14 562003/04 11 33 12 562004/05 15 31 12 582005/06 16 31 12 592006/07 23 26 10 59* Complies with the Disability Standards for Accessible Public Transport and Guidelines under the Disability Discrimination Act 1992† Assistance available from Transperth customer service staffBuses: Transperth continued its long-termprogram of increasing the number of accessiblebuses within its fl eet through the purchase of 65new low-fl oor accessible Compressed NaturalGas buses as part of the Daimler Chrysler BusSupply Agreement. At 30 June 2007, the number ofaccessible buses was 616 in the total fl eet of 1,114buses (55%) compared with 550 in the then fl eetof 1,058 buses (52%) at 30 June 2006.Preference is given to operating accessible buseswhenever possible, so that in off-peak periods mostbuses in service are accessible. During peak periods,when service demand is high, both accessible andnon-accessible buses are fully committed. Accessiblebuses therefore accounted for over 66% of servicekilometres during 2006/07 compared with 61% in2005/06.An additional 48 Compressed Natural Gas buseswill be procured over the term of the bus supplycontract to allow for the transfer of 44 existingdiesel metropolitan route buses from Perth tomajor regional towns in Western Australia, partof a program to introduce accessible buses intomajor country centres over a four-year period from2007/08. The additional buses will also allow for theintroduction of four accessible buses to start theRockingham City Centre Transit System (RCCTS).The RCCTS, which is due to commence servicecoinciding with the Southern Suburbs Railway, willbe a shuttle service from the Rockingham trainstation, through the City Centre, to the Rockinghamforeshore.Transperth continued its program of upgradingaccessibility at bus stations. During the year, workcommenced on providing tactile paving, hazardidentifi cation and improved pavement access atWellington Street and Mirrabooka bus stationsto meet the new Disability Standards for AccessiblePublic Transport Amendment 2004 (No. 1).Ferries: The bulk of Transperth’s ferry servicesare provided by the Shelley Taylor-Smith, which is anaccessible vessel. While the two primary jetties inoperation during the year, at Barrack Street in Perthand Mends Street in South Perth, are accessible,work on improving accessibility at the BarrackStreet Jetty to meet the new Disability Standards forAccessible Public Transport Amendment 2004 (No. 1)was completed during the year. A new accessibleramp was also being developed at year’s end atBarrack Street to provide passengers easier accessto the vessel. A more accessible fl oating jetty wasbeing designed for Mends Street, with constructionwork expected to commence in late 2007/08.4. Service CoverageTransperth aims to ensure the maximum numberof people in the community have ready access toits services. Service coverage is measured in termsof the proportion of Property Street Addresses(PSAs) within the Perth Public Transport Area(PPTA) which are less than 500 metres from aTransperth stop (bus, train, or ferry) providing anacceptable level of service. An acceptable level ofservice (ALS) is defi ned as an hourly service duringthe day with at least three trips per hour (i.e. at 20-minute intervals) in the peak fl ow direction in themorning and afternoon peaks.In 2006/07, the proportion of PSAs within500 metres of an ALS stop was 74%, relativelyunchanged from the proportion in 2005/06. In2004/05, the proportion was 70.6%.5. Passenger SatisfactionTransperth’s annual customer survey, the PassengerSatisfaction Monitor, showed that, on a system-widebasis, 83.0% of respondents expressed satisfactionwith the overall level of service compared with82.8% in 2006. (Details of satisfaction ratingsfor train, bus and ferry services are included inindividual mode reports from page 14.)12 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

SMARTRIDER PROJECT AND SYSTEM TICKETINGThe SmartRider ticketing system was successfullyimplemented in March 2007, making the PTA thefi rst public transport authority in Australia touse smartcard technology for ticketing purposes.An extensive press, outdoor, on-line, radio andtelevision marketing campaign was conductedto provide the public with comprehensiveinformation about the new system.The SmartRider system uses a credit card-sizedplastic card containing an embedded microchipand antenna. Passengers’ fares are deducted fromthe stored value on the cards as they tag-onand tag-off the system. Passengers no longerneed to buy multiple zonal tickets for trips ofvarying length to different parts of the Transperthnetwork. SmartRider provides more convenientticketing for passengers and, as an additionalbenefi t, it provides valuable planning informationon travel patterns, patronage and demand, whichenables Transperth to serve the community moreeffectively.Following the control group trial whichcommenced in October 2005, SmartRider wasissued to seniors, who became the fi rst regularusers of the new ticketing system. In September2006, the student MultiRider, which was used byprimary and secondary school students for travelduring the school year at the special student fare,was replaced by the student SmartRider. TheSmartRider became available to all Transperthpatrons on 14 January 2007. Patrons couldstill use MultiRiders, however the sale of thesetickets at existing outlets ceased on 31 January2007. From 1 February 2007, MultiRiders wereavailable only from SmartRider retail outlets. TheMultiRider was withdrawn from sale on 4 March2007. The validation of MultiRiders ceased on8 April 2007 and users were allowed to transferunused value to a SmartRider.In July 2006, cash tickets accounted for 48.2% ofsystem-wide fare-paying boardings, MultiRider for47.7% and SmartRider (used by seniors) for 4.1%.By March 2007, the proportions had changed tocash 46.0%, MultiRider 10.9%, and SmartRider43.1%. The share of SmartRider in total farepayingboardings increased to 57.7% in June 2007while cash tickets accounted for 42.3%.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0713

TRANSPERTHTRANSPERTH TRAINSDESCRIPTION OF SERVICESTransperth Train Operations (TTO) operates anelectrifi ed suburban train system with more than867 services on an average weekday and in excessof 5,488 services weekly.At 30 June 2007, the system covered 101.7kilometres of track with 59 stations on fi ve lines,and a fl eet of 189 railcars which can be coupledin confi gurations of two, three, four or six railcartrains.The train network consists of the Joondalup Line(33.2km), the Fremantle Line (19.0km), the MidlandLine (16.0km), the Armadale Line (30.5km) and theThornlie Line (3.7km).THE YEAR’S DEVELOPMENTS• Major construction works were carried out onthe suburban rail network during the year:– The New MetroRail (NMR) projectcontinued focus on delivering the newSouthern Suburbs Railway. Substantial workswere carried out during the year includingpreparing for the move from the “build”stage to “operational and maintenance”.The NMR construction project is covered inmore detail on page 19.– A special events siding was built adjacent tothe Daglish train station on the FremantleLine to allow for the use of six-car trains toclear crowds from Subiaco Oval. The sidingcommenced operations in May 2007.– The siding at nearby West Leedervilletrain station was improved by the additionof a connection to the main line at thesouth end. A new six-car platform wasconstructed to service the improved sidingin readiness for the opening of the SouthernSuburbs Railway. The main platform at WestLeederville was also in the process of beingextended to accommodate six-car trains atyear’s end.– A comprehensive community consultationprocess was conducted for the Daglish andWest Leederville projects.Mechanical tradesperson Andrew Churchman checks forfaults at the Claisebrook railcar depot.• Station upgrades were completed at GrantStreet and Loch Street on the Fremantle Line.The fi rst stage of a major rebuild of KelmscottStation on the Armadale Line was completed.• Further work was completed along theArmadale Line in the $70 million program toreplace timber sleepers with concrete ones onthe whole suburban rail network.• Contracts were awarded for the provision ofan underfl oor railcar wheel lathe at Nowergupand associated infrastructure works to ensurefast turnaround of railcars and provide theability to machine wheels during the inter-peakperiod without affecting peak period passengerservices.• Programs to upgrade passenger information andimprove passenger safety continued during theyear:– Installation began of the CustomerInformation System (CIS), a componentof the PTA’s new train control system atexisting terminal and bus/rail interchangestations, as well as at all stations on the newMandurah Line. CIS provides passengerswith accurate, up-to-date and timely14 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

New-style passenger information signage.information on train services. It uses acombination of electronic displays and publicaddress announcements. The station displaysinclude information to enable bus drivers tobetter coordinate bus departures with trainarrivals. The installation of the equipmentcommenced in May 2007 with completionplanned for December 2007.– A program to modernise passengerinformation signage on train stations wassubstantially completed during the year. Thenew signs are more legible, consistent andinformative. The program will be completedduring 2007/08 with the renewal of signs atPerth Station.– The Recording and Passenger InformationDissemination (RAPID) system was installedon 19 A-series* railcar sets (out of a totalA-series fl eet of 48 railcar sets). RAPIDincorporates the latest in digital technology,increases the number of railcar securitycameras, provides passenger informationdisplays in the railcars and providesimproved message announcements. It isenvisaged that the upgrade program will becompleted in 2009/10.– The Transit Guard position was re-titled“Transit Offi cer” and, for improvedeffectiveness, these staff were decentralisedfrom Perth to each of the train lines. Thisresulted in better quality customer serviceas well as improved staff morale as theoffi cers developed specifi c knowledge ofthe lines and associated customer needs.– Following the introduction of SmartRider,selected larger stations became “closed”stations where passengers are required topass through fare gates to enter and exit.During the year, 98 Passenger TicketingAssistants were recruited to staff thesefare gates and assist passengers. In addition,a new light, compact, hand-held smartcardreader (HSR) was developed for use byTransit Offi cers to check SmartRider cards.– A new customer service branch wascreated within Transperth Train Operationsto further improve customer service inanticipation of the increase in the customerbase which will follow the opening of theSouthern Suburbs Railway.* Transperth’s fi rst series of electric trains.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0715

TRANSPERTH• During the year, Transperth Train Operationsrecruited and trained 105 new railcar drivers,mostly for deployment on the SouthernSuburbs Railway. The training programconsisted of approximately two monthstheoretical training in the class room and ona driving simulator, followed by over threemonths of on-the-job supervised in-cabtraining.• The “Adopt a Station” program and the“Right Track” program for school studentswere launched on the Armadale Line. The“Adopt a Station” program seeks to encouragecommunity ownership of the station to assistin reducing incidents of vandalism. The “RightTrack” program, which is designed for studentsin years 5 to 12, addresses issues of trespass,vandalism and anti-social behaviour at trainstations and on trains.• Three new cash ticket vending machines(TVM) went on trial at Perth and Bayswatertrain stations. The new machines provide atouch screen display and can be confi gured toaccept coins, debit cards and notes in paymentof fares. The existing button-based machinesonly accept coins.COST OF THE SERVICEThe total cost of providing train services(inclusive of capital charges) increased 22.9%from $262.3 million to $322.3 million. Operatingcosts (excluding capital charges) rose from$106.9 million to $144.3 million, i.e. by 35.1%.Between 2005/06 and 2006/07, the Capital UserCharge increased by over 200% and accountedfor over half of PTA’s total capital charges in2006/07. The increase in operating costs waslargely due to expenditure on recruiting andtraining train crews for the new railway and newPassenger Ticketing Assistants to be deployed atthe “closed” stations which is an integral part ofthe new SmartRider ticketing system.PATRONAGEPatronage on Transperth train services recorded asubstantial increase for the third year in succession.In 2006/07, fare-paying boardings rose 7.9% to22.659 million from 21.002 million in 2005/06,while total boardings recorded a 4.8% increase to35.758 million from 34.133 million.The signifi cant increase in fare-paying boardingsin 2006/07 followed an increase of 6.3% in2004/05 and 4.8% in 2005/06. This rapid growthin patronage occurred following the expansion ofthe train fl eet and the increasing use of three- andsix-car trains in 2006/07. The convenience of parkand ride resulting from the 786 parking bays atClarkson train station and 609 bays at Greenwoodtrain station also helped to attract more patrons tothe network resulting in fewer transfer boardings.For total boardings (which includes transfers),the rate of increase continued at the rate of theprevious three years.Average boardings per service kilometre alsoincreased in 2006/07, reversing the decliningtrend seen during the past three years. Between2005/06 and 2006/07, fare-paying boardings perservice kilometre increased from 2.581 to 2.695,i.e. by 4.4%, compared with the decline of 7.7%between 2004/05 and 2005/06. Total boardings perservice kilometre increased from 4.194 to 4.253(1.4%) between 2005/06 and 2006/07 while therehad been a decline of 8.1% between 2004/05and 2005/06. These changes were largely a resultof service kilometres only increasing by 3.3% in2006/07 compared with the 13.6% increase in2005/06.18.831.418.831.120.032.721.034.122.735.82002/03 2003/04 2004/05 2005/06 2006/07Transperth trains: Patronage (million)Fare-paying boardingsTotal boardings16 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

PASSENGER SATISFACTIONThe Transperth Passenger Satisfaction Monitor2007 showed that a signifi cant proportion of userscontinued to be satisfi ed with the train system,although the proportion fell to 87% from 89% in2006 and 92% in 2005. The table shows that thelevel of satisfaction with key service attributeswas high. However, in the case of three specifi cattributes, the level of dissatisfaction was signifi cant– 18% were dissatisfi ed with availability of seats,13% with the number of trains during peak timesand 10% with respect to the ease of (or lack of)access to ticket purchasing facilities.100%75%50%25%92.0% 90.0%92.0%89.0% 87.0%0%2002/03 2003/04 2004/05 2005/06 2006/07Transperth trains: Customer satisfaction overallThe importance rating of the service characteristicsof Transperth’s train services (other than passengersafety) and the level of satisfaction/dissatisfactionfor each key service characteristic are shown in thetable.PASSENGER SAFETYIn the Passenger Satisfaction Monitor, train userswere asked: “How safe do you generally feelfrom personal interference or threat from otherpassengers …?”The graph on page 18 shows the proportion ofrespondents who “always or usually feel safe” at thespecifi ed times/locations on the train network.The results for the past fi ve years show that theproportion of train passengers who generally feltsafe on-board trains and at station/interchangesduring the day has remained high. However, theproportion of train users who generally felt safeon-board at night continued to fall, from 79% in2004 to 75% in 2005 and 74% in 2006 and 71%in 2007. There was also a signifi cant decline, from63% in 2006 to 58% in 2007 in the proportionof respondents who generally felt safe at station/interchanges at night.Passenger rating of characteristics of Transperth train servicesSERVICECHARACTERISTICIMPORTANCE RATINGSATISFACTION RATING2006 2007 2006 2007Cost of fares 70% 74% 68% (6%) 64% (9%)Speed of the trip 66% 73% 92% (4%) 91% (4%)Punctuality of the train service 71% 69% 87% (8%) 88% (6%)Cleanliness on board 55% 61% 85% (5%) 86% (5%)Availability of seats 53% 60% 78% (16%) 74% (18%)Number of trains during peaktimes52% 56% 81% (13%) 81% (13%)Number of trains during the day 57% 53% 81% (5%) 86% (5%)Easy access to ticket purchasingfacilities – 46% – 82% (10%)Note: Dissatisfaction level shown in parenthesis.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0717

TRANSPERTH“THE PTA IS FIRMLY COMMITTEDTO ENSURING THAT ALLPASSENGERS FEEL SAFE ON THETRAIN NETWORK AT ALL TIMES.”96%73%90%59%95%79%95%62%97%75%95%The PTA is fi rmly committed to ensuring thatall passengers feel safe on the train network atall times. The centralised monitoring of digitisedCCTV coverage at all stations via a state-of-theartmonitoring centre manned 24 hours a daycontinued during the year.62%Transit Offi cers were trained in the use of oleoresinspray which was then issued to them. This spray isdeterring some people from anti-social behaviourand allows potentially dangerous situations to bebetter controlled.98%74%96%63%98%71%96%2002/03 2003/04 2004/05 2005/06 2006/07Transperth trains: Passenger safety perceptionsOn-board (daytime) On-board (night-time)At station/interchange (daytime)At station/interchange (night-time)58%To address the issue of achieving full Transit Offi cerstaffi ng, a very active recruiting program wasundertaken during the year and a website wasdeveloped to assist in this program.PLANNED MAJORINITIATIVES FOR 2007/08• Continue recruitment of additional staff toservice customer needs on the new SouthernSuburbs Railway.• Commence operation of additional pay ’n’display car parks at Clarkson, Greenwood andThornlie, improving security at these locations.• Continue rollout of Recording and PassengerInformation Dissemination (RAPID) system intothe A-series railcars,• Complete installation of a wheel lathe atNowergup,• Complete installation of Customer InformationSystem.18 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

NEW METRORAIL PROGRESSWork continued on construction of the SouthernSuburbs Railway, the centrepiece of the NewMetroRail project. Construction of the railwaywas nearly complete at year’s end, and testing,commissioning and handover were underway.The Southern Suburbs Railway comprises 72 routekilometres of double-track railway between Perthand Mandurah, eleven stations, 770 metres oftwin tunnels under the Perth CBD, 18 bridges andstructures, signifi cant road and civil works, a 25kvelectrical traction power overhead wiring system,signalling and communications and two electricalpower feeder stations.The New MetroRail project also involves thedesign, construction and maintenance of 93 newB-series electric railcars, the last of which wasdelivered in July 2006 and all of which are operatingsuccessfully on the Joondalup Line between Perthand Clarkson and are stored and maintained at anew depot located at Nowergup.Total expenditure in 2006/07 was $276.21 million,bringing total expenditure on the New MetroRailProject to $1,559.6 million (98.1% of the total budget).The target date for commencement of services onthe Southern Suburbs Railway was 29 July 2007.There were delays in completion of a number ofcritical areas of the infrastructure and the interfaceworks between major contracts. There were anumber of claims from contractors for extensionsof time, delays and extra cost. A number of theseclaims are being disputed through the courts.In May 2007, it was announced that the 29 July2007 completion date for the Southern SuburbsRailway was unachievable. At year’s end, acompletion date had not been determined eventhough the indication was that the works would besubstantially completed by October.The major highlights of the New MetroRail projectduring 2006/07 were:• The last nine of 93 B-series railcars was put intoservice in July 2006.• The twin bored tunnels below the CBDwere completed in October 2006 while theunderground William Street and EsplanadeStations were substantially completed.• Laying of the mainline railway track betweenPerth and Mandurah was completed inDecember 2006. At year’s end approximately80% of the overhead wiring along the line hadbeen erected, along with associated electrical,signalling and communications equipment.• Construction of the nine stations betweenCanning Bridge and Mandurah was completed.• The fi rst stage of a public safety awarenessprogram was completed, in which all primary andsecondary schools within two kilometres of therailway were visited to make the students awareof electrical safety on the railway.• In October 2006, the Public Transport Authority’sinternal auditors undertook an audit ofNew MetroRail and found high standards ofadministration, contract and fi nancial managementof the packages and project management.• In November 2006, the Offi ce of Rail Safetyundertook a Compliance Audit of themanagement of the New MetroRail Projectwithin the scope of its annual audit of the PublicTransport Authority. As with previous audits, theCompliance Audit found a strong commitment torail safety within New MetroRail.• Ongoing community consultation by NewMetroRail has resulted in resolution of a signifi cantnumber of claims for damage or adverse impactarising from the construction works.• Overall public support of the Southern SuburbsRailway continued at a very high level of 92%compared with 87% recorded in November 2006and 84% recorded in May 2006 in the independentopinion poll undertaken during May 2007.• Documentation of the construction of theSouthern Suburbs Railway is being recorded ina commemorative book, release of which willfollow the opening of the railway.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0719

TRANSPERTHTRANSPERTH BUSESDESCRIPTION OF SERVICESDuring 2006/07, the Transperth bus systemoperated 320 standard timetabled bus routesand 436 school routes. On a typical weekday thisinvolved operating 9,327 standard services and436 school services. Accessible buses are alwaysused on 55 of the standard routes. A bus servicefrequency of 20 minutes or better is providedall day on most major corridors, with higherfrequencies in peak periods.Transperth bus services were operated by threecontractors under 11 contracts in 2006/07:• Path Transit (Marmion-Wanneroo and Morleycontracts, with the Joondalup Central AreaTransit contract forming part of the Morleycontract).• Swan Transit (Canning, Kalamunda, Midland,Southern River, Claremont, and Belmontcontracts).• Southern Coast Transit (Rockingham, Fremantle-Cockburn, and Perth Central Area Transitcontracts, with the Fremantle Central AreaTransit contract forming part of the Fremantle-Cockburn contract).The Midland contract was re-tendered andawarded to Swan Transit with effect from 27January 2007.The auditing of each of Transperth’s buscontractors’ safety management systems continuedduring the year to ensure that they met AS 4901 –OSH Management Systems.THE YEAR’S DEVELOPMENTSAs part of planning for the introduction ofSouthern Suburbs Railway, Transperth carried outa comprehensive review of the bus route networkthroughout the southern corridor and parts ofthe south-eastern corridor of Perth with a viewto modifying the bus route network to integrateit with the new train line. A conceptual bus routenetwork was developed, identifying service levelsand frequencies, using principles successfullyestablished for the northern suburbs bus network.Feedback on the proposed changes was animportant stage in the planning process to ensurethat the proposed bus network met communityneeds. The consultation process began with 22meetings held with key stakeholders followed bybroader community engagement. The communityconsultation process was centred on a series ofpublic displays at key locations throughout thesouthern corridor and parts of the south-easterncorridor. In addition a consultation webpage wasdeveloped on the Transperth website, outliningproposed changes to the bus route network andproviding an avenue for feedback via an onlineform.The consultation process for the southern suburbsbus network was the largest ever carried out byTransperth with over 2,600 people attending 32community displays. Amendments were madeto the conceptual bus route network based oncommunity feedback.In December 2006, Transperth bus services inthe Kwinana/Cockburn area were relocated fromthe temporary bus station facility at GatewayShopping Centre to the new Cockburn Centralbus/train interchange. The temporary facility atthe shopping centre, which had operated since1999, had provided a public transport hub allowingpassengers using feeder services to access the mainline service operating along the Kwinana Freewayto Perth.The new bus station, which is the bus componentof the future Cockburn Central train/businterchange, will provide bus services to the areauntil the Southern Suburbs Railway opens and thenetwork of feeder services commences.Total service kilometres operated by the Transperthbus network continued to increase. In 2006/07,the network covered 49.961 million kilometres, anincrease of 1.7% over the 49.146 million kilometresrecorded in 2005/06, which was itself an increase of1.2% compared with the previous year.Total capacity provided by the bus networkincreased for the second year with 3,592.5 millionpassenger place kilometres being provided in2006/07 compared with 3,559.8 million passengerplace kilometres in 2005/06, an increase of 0.9%,following the increase of 0.4% in the previous year.20 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

At 30 June 2007, Transperth operated 293 gas-powered buses in its fl eet of 1,114 buses.The lower rate of increase in passenger placekilometres compared with the rate of increasein service kilometres is due to the increasingproportion of Compressed Natural Gas (CNG)buses in the fl eet which have a slightly lower averagecarrying capacity compared with diesel buses.At 30 June 2007, Transperth operated 293 gaspoweredbuses in its fl eet of 1,114 buses. A further306 new gas buses are due to be delivered by June2011 under the existing Bus Supply Agreement. InDecember 2006, a permanent CNG refuelling facilityat Fremantle depot began operations, replacing thetemporary facility that had been in service since May2005. CNG refuelling operations commenced atRockingham bus depot in June 2007. The laying of ahigh pressure pipeline for the Welshpool bus depotCNG facility commenced during the year. This facilityis scheduled to be commissioned in April 2008.Inspections were carried out at depots with CNGcapability to identity the work required to ensurethe workshops met all occupational safety and healthstandards that meet AS2746 – “Working areas forgas fuelled vehicles”.COST OF THE SERVICEThe total cost of operating Transperth bus servicesincreased by 1.1% from $251.2 million in 2005/06to $254.0 million. Operating expenditure increasedfrom $195.8 million to $205.3 million, i.e. by 4.8%.The increase in operating costs was primarily drivenby increases in the cost of fuel, labour and security.PATRONAGEPatronage continued to grow on Transperth’s busservices in 2006/07 although at a lower rate ofincrease.Fare-paying boardings increased from 38.650million in 2005/06 to 38.886 million in 2006/07, i.e.by 0.6%. This compares with an increase of 4.5%in 2005/06. Total boardings recorded an increaseof 1.1% from 63.891 million in 2005/06 to 64.623million in 2006/07.The decline in the rate of growth in bus fare-payingboardings was due to a combination of factors –the loss of the Kwinana Freeway busway duringmost of 2006/07, increasing traffi c congestion inpeak periods, the lack of bus priority measures onmajor roads resulting in non-competitive traveltimes and the low rate of increase in servicekilometres over the past few years.35.256.336.359.037.061.938.663.938.964.62002/03 2003/04 2004/05 2005/06 2006/07Transperth buses: Patronage (million)Fare-paying boardingsTotal boardingsPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0721

TRANSPERTHThese factors had a major impact on total farepayingboardings in the southern contract areas,where boardings fell by 1.2% overall, due to a 2.0%decline in Fremantle-Cockburn and no change inthe Rockingham-Mandurah contract area. A similarimpact was felt in the Canning contract area in2005/06 when fare-paying boardings fell by 1.9%but this area saw some stabilisation of patronageduring 2006/07.Bus patronage in the northern suburbs was affectedby provision of additional parking bays following theopening of train stations at Clarkson in October2004 and Greenwood in January 2005.A total of 786 parking bays were provided atClarkson and 609 at Greenwood, which gave morepeople in the northern suburbs the opportunityto travel by train without using feeder buses, thatis by using the increased Park ‘n’ Ride facilities.The additional parking bays were quickly takenup, resulting in increased fare-paying boardings ontrains but with a commensurate drop on buses. Thiscontributed to the containment of growth in busboardings in the northern suburbs, with an increaseof 1.9% in 2006/07 compared with 3.5% in 2005/06.Boardings on the Circle Route also fell in 2006/07.While this popular service has generally enjoyedhigh rates of growth in previous years (e.g. 6.5% in2005/06), there is an indication that delayed busesand a marginal increase in journey times due toincreasing traffi c congestion are affecting patronage,particularly in peak periods on major roads suchas South Street and Stirling Highway. This wasrefl ected in the 0.7% decline in fare-paying boardingsrecorded in 2006/07.The most positive growth area for fare-payingboardings on the Transperth bus network wasthe Claremont and Belmont contract areas whichshowed an increase of 4.8% in 2006/07 following anincrease of 6.1% in 2005/06. These contract areasare seeing the accrued benefi t of actions some yearsbefore, whereby route rationalisation has resultedin more direct routes and reduced journey times.However, the challenge of traffi c congestion is likelyto impact on these inner city contract areas incoming years unless improved bus priority can beestablished at “pinch points”.The rate of growth in bus service kilometres overthe past fi ve years has been limited. Overall, between2002/03 and 2006/07, bus service kilometresincreased by 4.6%. Service kilometres increased by1.7% in 2006/07 following an increase on 1.2% in2005/06.Average boardings on buses declined in 2006/07 dueto service kilometres increasing at a higher rate thanpatronage (1.7% compared with 0.6%). Fare-payingboardings per service kilometre which had reached0.786 in 2005/06 declined to 0.778 in 2006/07 (1.0%),while total boardings per service kilometre fell from1.300 to 1.293 (0.5%), between 2005/06 and 2006/07.PASSENGER SATISFACTIONThe Transperth Passenger Satisfaction Monitor 2007showed that the proportion of bus users who weresatisfi ed with the bus system overall increased to81% from 80% in 2006.Passenger rating of characteristics of Transperth bus servicesSERVICECHARACTERISTICIMPORTANCE RATINGSATISFACTION RATING2006 2007 2006 2007Cost of fares 62% 65% 72% (6%) 70% (9%)Punctuality of the bus 73% 64% 79% (10%) 76% (12%)Number of buses on weekdays 66% 63% 71% (18%) 72% (17%)Speed of the trip 54% 62% 85% (6%) 84% (7%)Cleanliness on board 53% 59% 87% (4%) 89% (3%)Driver’s manner 54% 55% 89% (2%) 90% (2%)Driver’s handling of the bus 55% 53% 89% (3%) 90% (4%)Number of buses during peak times – 47% – 75% (15%)Note: Dissatisfaction level shown in parenthesis.22 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

The table on page 22 shows that there was asignifi cant level of dissatisfaction with the numberof buses on weekdays (17%) punctuality of services(12%), and the cost of fares (9%).100%75%50%25%84.0%82.0% 82.0%The importance rating of the service characteristicsof Transperth’s bus services (other than passengersafety – see table below) and the level ofsatisfaction for each key service characteristic areshown.PASSENGER SAFETY80.0% 81.0%0%2002/03 2003/04 2004/05 2005/06 2006/07Transperth buses: Customer satisfaction overallIn the Passenger Satisfaction Monitor, bus userswere asked: “How safe do you generally feelfrom personal interference or threat from otherpassengers …?”The graph shows the proportion of respondentswho “always or usually feel safe” at the specifi edtimes/locations on the bus network.The results for the past fi ve years show that almostall bus passengers generally felt safe on-board busesand at station/interchanges during the day.It is noteworthy that there was a signifi cantincrease in the proportion of respondents whogenerally felt safe on-board buses at night to 83%from 78% in 2006. The proportion of respondentswho felt generally safe at night at the station/interchanges also increased, although at a lowerrate from 66% to 68%.Over recent years, Transperth has introduced thefollowing measures to promote passenger safetyon the bus network:• Two security offi cers are deployed Monday toSaturday each week at each major bus stationbetween 7am and the last bus.• Mobile patrols are deployed on each of thethree major sectors – north, south and east –on busy nights of the week.• There is centrally monitored CCTV at all busstations.• CCTV has been installed on new buses in thefl eet.PLANNED MAJORINITIATIVES FOR 2007/08• Implementation of the SSR bus feedernetwork• Acquisition of a further 72 new CNG busesfor the bus fl eet• Completion of works to ensure that all CNGworkshops achieve the standard requiredto meet AS2746 – “Working Areas for GasFuelled Vehicles”.66%68%67%66%68%84%95%98%99%86%97%85%95%99%98%78%95%83%95%98%2002/03 2003/04 2004/05 2005/06 2006/07Transperth buses: Passenger safety perceptionsOn-board (daytime) On-board (night-time)At station/interchange (daytime)At station/interchange (night-time)PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0723

TRANSPERTH“SINCE 2004/05, PATRONAGE ONTRANSPERTH’S FERRY SERVICEHAS INCREASED BY AROUND 18%.”TRANSPERTH FERRIESDESCRIPTION OF SERVICESTwo vessels operate between the City (BarrackStreet) and South Perth (Mends Street) providing80 services on an average weekday, Septemberto April, and 60 services on an average weekdayduring winter from May to August.The Transperth ferry service has been operated bya Transperth contractor since 1995. The service iscurrently provided under contract by Captain CookCruises.PATRONAGEFerry patronage continued its upward trend in2006/07. Fare-paying boardings increased by 8.4%from 401,000 in 2005/06 to 435,000 in 2006/07,while total boardings recorded an increase of 8.5%from 502,000 to 545,000. Since 2004/05, patronageon Transperth’s ferry service has increased byaround 18%.On a per kilometre basis, fare-paying boardingswhich had increased to 11,620 in 2005/06 rose to12,598 in 2006/07, i.e. by 8.4% and total boardingsincreased by 8.6%, from 14,547 to 15,799.0.3840.4770.3720.4650.3690.4600.4010.5020.4350.5452002/03 2003/04 2004/05 2005/06 2006/07Transperth ferries: Patronage (million)Fare-paying boardingsTotal boardings24 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Passenger rating of characteristics of Transperth ferry servicesSERVICECHARACTERISTICIMPORTANCE RATINGSATISFACTION RATING2006 2007 2006 2007Cleanliness on board 69% 80% 99% (0%) 97% (0%)Cost of fares 64% 70% 90% (1%) 92% (2%)Punctuality of the ferry service 54% 66% 92% (2%) 92% (1%)Number of ferries during the day 59% 62% 67% (17%) 77% (9%)Shelter at the jetty 62% 55% 79% (16%) 80% (14%)Availability of seats on the ferry 50% 54% 100% (0%) 100% (0%)Easy access to ticket purchasingfacilities – 52% – 92% (4%)Speed of trip 55% 50% 98%(0%) 96% (1%)Note: Dissatisfaction level shown in parenthesis.PASSENGER SATISFACTIONThe Transperth Passenger Satisfaction Monitor2007 showed that a very high proportion ofpassengers continued to express satisfaction withTransperth’s ferry service overall, continuing thetrend over the past fi ve years.100%75%50%25%97.0% 95.0% 96.0% 96.0% 96.0%PASSENGER SAFETYIn the Passenger Satisfaction Monitor, ferry userswere asked: “How safe do you generally feelfrom personal interference or threat from otherpassengers …?”The graph shows the proportion of respondentswho “always or usually feel safe” at the specifi edtimes/locations on the ferry services.The results for the past fi ve years show thatalmost all ferry passengers generally felt safe onboardthe ferry during the day and at night. Whilealmost all users felt safe at the jetty during day, theproportion of users who felt safe at the jetty atnight fell signifi cantly from 97% to 89%.0%2002/03 2003/04 2004/05 2005/06 2006/07Transperth ferries: Customer satisfaction overall99%100%100%100%100%100%99%82%100%100%100%92%100%100%100%97%99%90%98%89%The importance rating of the service characteristicsof Transperth’s ferry service (other than passengersafety) and the level of satisfaction for each keyservice characteristic are shown in the table.2002/03 2003/04 2004/05 2005/06 2006/07Transperth ferries: Passenger safety perceptionsOn-board (daytime)At jetty (daytime)On-board (night-time)At jetty (night-time)PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0725

REGIONAL TOWN BUS SERVICESThe PTA has seven intra-town bus servicesand eight town school services operating in15 major regional towns throughout the State.In addition, the PTA provides four inter-townregional bus services.In Broome, a trial school bus service within the townshipproved successfulIn past years, the PTA has also beenresponsible for the administration of threesmall regular passenger transport (RPT)services operating in the outer part of thePerth metropolitan area in a complementarycapacity to Transperth services. Two of theseservices were transferred to Transperthmetropolitan services at the end of the 2006calendar year. The performance of all three ofthe services has been included in the regionaltown bus services fi gures for 2006/07 inkeeping with the reporting method adopted inprevious years.OBJECTIVES AND OUTCOMESOBJECTIVEConduct fi eld visits and audit all contractors’performances and passenger boardings.Continue with a programmed approach ofreviewing regional bus services.Develop solutions for regional transport problemsin consultation with local communities.OUTCOMEA standardised reporting format has beenintroduced to maintain passenger andoccupational safety records. Service audits ofcontractors were carried out in Albany, Bunbury,Busselton, Carnarvon, Collie, Dunsborough,Geraldton, Manjimup and Port Hedland.Improved service levels in regional towns wherenew suburbs have been developed and anincrease in residents - Albany, Bunbury, Busselton,Collie, Dunsborough, Geraldton and Broome.Safely transporting students attending leavers’facilities in the South West around Busselton/Dunsborough which resulted in Police and thelocal Shires having to deal with the lowest numberof misdemeanours for many years, even with the16% increase in student attendance.Working with the Offi ce of Crime Preventionto establish funding and services for specialisedleavers’ week transport support for the Busselton/Dunsborough area.26 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

THE YEAR’S DEVELOPMENTSA comprehensive review of public bus services inthe Busselton and Dunsborough areas was carriedout. Following the review, the level of service inBusselton was increased to six days a week (withan increase in the number of services during theday), and regular bus services were introducedbetween Busselton and Dunsborough. In addition,improvements were made to the school busservices operating in the area.A program to progressively install the TransperthWayfarer MultiRider system in regional townservice buses commenced late in the fi nancialyear. The equipment became available followingthe introduction of the SmartRider ticketingsystem on the Transperth network during2006/07. Installation of the MultiRider machineswas completed in Kalgoorlie and an assessmentof installation requirements commenced inGeraldton.During the year, a school bus service within theBroome township was trialled and proved to besuccessful, resulting in the service being madepermanent and the service being increasedfrom two to three services twice a day. The newBroome school service and the well-establishedKarratha school bus service were both tenderedin the second half of the year and two seven-yearcontracts were still to be awarded at year’s end.Regional PTA staff played a high profi le role in theplanning, co-ordination and implementation of bustransport for School Leavers’ Week celebrationsin Busselton, Dunsborough and Yallingup duringNovember 2006. Feedback from the localcommunity, police service, students and parentswas very complimentary in relation to the successof this project.Service audits (involving the checking of passengerand occupational safety records) were carriedout on contractors in Albany, Bunbury, Busselton,Carnarvon, Collie, Geraldton and Manjimup.COST OF THE SERVICETotal expenditure on regional bus services was$12.1 million in 2006/07, which represented anincrease of 14% over expenditure of $10.6 millionin 2005/06. Expenditure on intra-town servicesrose from $10.2 million to $11.6 million, anincrease of 14%, while the cost of inter-townservices increased by 13.9% from $0.459 millionto $0.523 million.PATRONAGETotal boardings on regional bus services increasedby 0.4% from 2.297 million in 2005/06 to2.306 million in 2006/07. Fare-paying boardingsincreased by 3.3% from 1.897 million to 1.960million.On intra-town services, while total boardingsshowed an increase of 0.3% from 2005/06,fare-paying boardings reached a four yearpeak of 1.954 million, a 3.3% increase from the2005/06 level. Patronage on inter-town servicesrecorded signifi cant gains in percentage terms(20% for both total boardings and fare-payingboardings), however, given the minor nature ofthe contracted inter-town services, the actualnumbers were quite small.2.2901.8372.3111.8002.2751.8212.2921.8922.3001.9542002/03 2003/04 2004/05 2005/06 2006/07Regional intra-town bus services:Patronage (million)Total boardingsFare-paying boardingsPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0727

REGIONAL TOWN BUS SERVICES0.0020.0020.0030.0020.0030.0020.0050.0050.0060.0062002/03 2003/04 2004/05 2005/06 2006/07Regional inter-town bus services:Patronage (million)Total boardingsFare-paying boardingsPASSENGER SATISFACTIONCustomer surveys were carried out to identifypossible changes to various services, for exampleBusselton and Dunsborough for a Tuesday serviceand a link between the two towns. Due toregional distances it is diffi cult to undertake regular,comprehensive surveys to ascertain independentoutcomes.PLANNED MAJORINITIATIVES FOR 2007/08• A four-year program will commence in 2007/08to replace buses in regional centres withthe “cascading” of 44 diesel low-fl oor 2002model Mercedes buses from the Transperthfl eet. The aim is to improve the standard andcomfort of country bus services through theintroduction of accessible buses to regionaltown communities. The program will also helpto reduce the average age of the regional busfl eet to around 12 years.• Service reviews scheduled for 2007/08 are:– Bunbury: Review of the operationaleffi ciency of major service enhancementsintroduced during 2003/04. The reviewwill also look at timetables in Bunbury,with a view to improving connectiontimes between Bunbury City Transit (BCT)services, and between BCT and other trainand bus services in the area.– Albany and Geraldton: Review of the townservice boundaries to ensure equity instudent fares.– Port Hedland: Review of school bus servicesand the fare structure for Port Hedland andSouth Hedland passengers.• Services will be introduced to two new subdivisionsin Geraldton.• The “school special” bus service in Kununurrawill be tendered during 2007/08.28 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

SCHOOL BUS SERVICESThe school bus network comprises 688 schoolbuses servicing mainstream schools, 117 schoolbuses servicing special education schools, centresand units and seven Regular Public Transportservice arrangements.In 2006/07, these services were used by 26,200students per school day around the State, usingpredominantly contracted orange school buses.Alternatively, where eligible students could notbe accommodated on a school bus, their parents/carers were paid a conveyance allowance to helpmeet some of the costs incurred by them ingetting their children to their nearest appropriateschool.The total cost of managing the 812 school buscontracts/services and providing the conveyanceallowance totalled $70.826 million in 2006/07.Transport assistance was also provided to studentsattending special education schools principally inlarge regional towns and in metropolitan Perth.All orange school buses are operated by privatecontractors. Three contract/service models wereused in 2006/07 to provide student transportsupport:Composite Rate Model (CRM) Contracts (20-30years in duration): 694 contractsDavid Till and Walter McArthur take time out from their busy school businspection schedule.Fixed term Contracts (Tendered over 1-15 yearssince 1995): 111 contractsRegular Passenger Transport (Licence arrangementwith fare subsidy): 7 contractsThe Composite Rate Model is an average costmodel which was implemented in January 2004 andprovides for contractor payments, with the costelements of the payment model being reviewedover a three-year cycle by an independent reviewpanel.OBJECTIVES AND OUTCOMESOBJECTIVEProvide transport assistance for eligible studentsto assist them to attend their nearest governmentor non-government school offering theappropriate year of study.Ensure the transport assistance provided tostudents is appropriate, safe, cost effective and fairin its application.Ensure that all service contracts are managedeffectively and effi ciently in accordance withagreements made between the Minister, thePTA and individual contractors and/or theirrepresentatives.OUTCOME812 “orange” school bus contracts were managedand conveyance allowances to entitled studentstotalling $70.826 million were paid.Continued to manage the introduction of seatbelts on government-funded orange school buses.Conducted two safety inspections on every schoolbus in the fl eet during the year.Special education bus routes in metropolitanPerth and regional towns were reviewed.School bus routes that serve the fringes ofmetropolitan Perth were reviewed.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0729

SCHOOL BUS SERVICESREVIEW OF PERFORMANCE$1001. Total Services ProvidedIn 2006/07, student passenger place kilometres fellby 4.8% due to the reduction in the number ofschool days in the year from 187 in 2005/06 to 181in 2006/07.$75$50$25$78.55$81.96$89.621,000$02004/05 2005/06 2006/07750843.0 847.0806.3School Bus Services: Operating cost per1000 student passenger place kilometres50025002004/05 2005/06 2006/07School Bus Services:Student passenger place kilometres2. Service ReliabilityThe service reliability measure covers ruralmainstream services and Education Support schoolbuses operating in the Perth metropolitan area. Thereliability measure is arrival less than 10 minutesbefore school starts and departure less than 10minutes after school fi nishes.In 2006/07, service reliability was maintained at97%, which was unchanged from the previous year.100%75%50%25%0%82%3. Cost of the Service97% 97%2004/05 2005/06 2006/07School Bus Services: Service reliabilityThe operating cost per 1000 student passengerplace kilometres increased by 9.34% in 2006/07.This was due to higher wage and fuel costs.THE YEAR’S DEVELOPMENTSSchool bus routes were reviewed to maximiseservice delivery and effi ciencies in metropolitanPerth.The 50 cent student fare was introduced on orangeschool bus services operating in the Upper Swan/Gnangara and Mandurah areas within the PerthPublic Transport Area. This was done for equityreasons to ensure that all school students paidthe fare to school if they resided in a designatedpublic transport area. In a number of areas, theintroduction of the 50 cent fare was deferred untilTerm 3, 2007 so that duplication of services withTransperth could be removed.Seven new Education Support Bus services wereintroduced in the Rockingham area to meetpopulation growth.School bus routes in Serpentine, Waroona andBullsbrook were reviewed to maximise servicedelivery and effi ciencies.The Busselton/Dunsborough Town Public TransportArea and the collection of fares on school buseswithin this area were implemented.Progress continued on the project to fi t seatbeltson all Government-funded school buses by 2015.This included a tender being awarded in January2007 to Omnibus Services to retrofi t 42 ClassB and Class C buses with belted seats. Throughnormal bus replacement, 125 new buses withseatbelts already fi tted entered the fl eet and 14further buses were retrofi tted during the year.30 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

A total of 139 buses (over 17% ofthe school bus fl eet) had seat beltsfi tted by 30 June 2007 – 42 class Abuses, 16 class B buses, 35 class Cbuses, and 46 class D buses.In March 2007, the PTA pursuedfurther best practice by moving tohave drivers’ seats also fi tted withADR68 lap-sash seatbelts.The new Tendered Rate Model(TRM) contract was developed fornew school bus services as partof PTA’s strategy to replace over100 fi xed-term orange school buscontracts that were either expiringor had recently expired. At 30 June2007, of the 50 TRM contracts that had beentendered during the year, 28 were awarded andthe others were at various stages of evaluation andaward.PLANNED MAJORINITIATIVES FOR 2007/08• Continue installation of seatbelts on allGovernment-funded school buses by December2015 in accordance with Government policy.– Complete retrofi tting the remaining 28buses under Omnibus Services contract.– Implement a student seatbelt compliancecommunication strategy through theDepartment of Education and Training.– Commence replacing the aging school busfl eet in the RPI “grouped” services that feedinto Bunbury from surrounding rural areas,with new buses with belted seats.• Continue the review and, where required,effi ciency rationalisation of school bus routes.– Introduce the 50 cent student fare onservices in the Kalamunda, Forrestdale,Armadale and Baldivis areas to continuethe equity process of applying fares toall children residing in the Perth PublicTransport Area and using buses.Students from Melville Senior High School know to stand for adults whenusing the 50 cent fare– Develop a new service contract forDepartment of Education and Trainingfunded transport assistance for EnglishSecond Language students (deferred from2006/07).– Relocate/review bus education supportservices over the next two fi nancial yearsto the new Kim Beazley Learning Centresites in Atwell (2008) and Success (2009).– Place the Bunbury RPT school bus serviceunder long-term contract for futureeffi ciency gains when the service is latertendered.– Continue re-tendering expiring contractsunder the TRM contract (approximately 50contracts).• Continue liaison with the Department ofEducation and Training to review the studenttransport assistance policy with regard to:– integration of students with special needsinto mainstream schools,– compulsory school attendance to Year 12(2008),– integration of vocational studies into schoolcurriculum through increased usage ofTAFE facilities,– transport provision when school facilitiesare opened or closed.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0731

TRANSWATranswa is the brand and operating name of thepublic transport system operated by the PTAwhich provides road and rail passenger servicesto regional centres in the southern half ofWestern Australia.OBJECTIVES AND OUTCOMESTranswa’s purpose is to provide a customerfocused,safe and cost effective public transportservices to regional Western Australia.Transwa monitors its performance against keyaspects such as customer satisfaction, on-timerunning and patronage.Its objectives and outcomes for 2006/07 were:Maintenance supervisor Dave Hillman at Transwa’s Kewdale Depot.OBJECTIVETranswa to provide customer-focused passengertransport services for regional Western Australia.Transwa to provide safe and cost effectivepassenger transport services for regional WesternAustralia.Transwa services to arrive within acceptableparameters set for punctuality.OUTCOMEResults of the current Passenger SatisfactionMonitor showed increasing levels of satisfaction bycustomers.Recruitment processes were changed to attractand employ staff with strong customer serviceskills.There were very few accidents or securityincidents on Transwa services.A comprehensive Safety Management Plan wasdeveloped which will further improve safety overthe coming years.Transwa maintained a high level of on-timerunning during the year delivering the followingresults:Prospector (77%), Australind (92%),AvonLink (99%), MerredinLink (89%) andRoad Coaches (96%).32 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

REVIEW OF PERFORMANCE1. Service ReliabilityTranswa has a number of key performanceindicators in relation to the on-time performanceof its train and coach services. These are:ProspectorAustralindAvonLinkMerredinLink90% of services to arrive within15 minutes of schedule90% of services to arrive within10 minutes of schedule95% of services to arrive within10 minutes of schedule95% of services to arrive within10 minutes of scheduleRoad Coaches 95% of services to arrive within10 minutes of scheduleThe road coaches continued to perform to target– 96% of services arriving within 10 minutes of thescheduled arrival time which is consistent with thehigh level of reliability over the last four fi nancialyears.The on-time running performance of theProspector continued to improve on previousyears’ results, with better mechanical reliabilityof the railcars. Further improvement in on-timerunning is expected with the extension of thecrossing loops (passing places) on the Perth-Kalgoorlie railway and replacement of the fi nalsections of wooden sleepers. These works arescheduled to commence in October 2007.95%95%95%95%96%90%89%44%73%77%90%97%99%99%99%52%89%89%87%88%65%88%92%The on-time running of the Australind increased to92% from 88% because of improved track conditions.On-time running of the AvonLink and MerredinLinkservices remained consistently high at 99% and 89%respectively.2. Trends in PatronageTotal patronage on all Transwa services increasedby 1% in 2006/07 compared with the previousyear. The main growth occurred on train services,predominantly the Prospector service.3. Service Coverage600,000500,000400,000300,000200,000100,000The total passenger place kilometres* for roadcoaches increased slightly due to service deviationsresulting from road closures because of fl oods in theEsperance area.The total passenger place kilometres* for railservices increased due to an increase in the numberof railcars used on the Prospector service and theprovision of additional AvonLink services on Sundaysas part of the “Spring in the Avon” campaign.200150488,78302002/03 2003/04 2004/05 2005/06 2006/07140.4487,625Transwa: Total Patronage160.4489,635173.32502,171174.04506,546174.39100133.5133.5113.1124.45130.31RoadCoachesProspector AvonLink MerredinLinkTranswa: On-Time Running PerformanceAustralind2002/03 2003/04 2004/05 2005/06 2006/075002002/03 2003/04 2004/05 2005/06 2006/07Transwa: Total Passenger Place Kilometres (millions)Road CoachesRail* The average seat capacity multiplied by the kilometres travelled while in servicePUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0733

TRANSWA4. Passenger SatisfactionTranswa continued to maintain a high level ofcustomer satisfaction. The percentage of passengerswho were satisfi ed or very satisfi ed overall was89% in 2006/07.7. Revenue and ExpenditureThere was a 6.9% increase in revenue due toincreased passenger numbers and an increase inthe number of full fare paying customers.100%75%85%88%87%88%89%$6.89$7.22$8.14$8.94$9.7350%25%0%2002/03 2003/04 2004/05 2005/06 2006/072002/03 2003/04 2004/05 2005/06 2006/07Transwa: Revenue (million)Transwa: Customer Satisfaction5. Passenger SafetyTranswa’s commitment to safety, including acontinuous review of safety systems, proceduresand processes, was refl ected in there being nosignifi cant incidents which compromised passengersafety during the year.6. EfficiencyThere was a slight rise in the cost of providingTranswa services in 2006/07. The rise in the averagecost per passenger place kilometre for rail serviceswas largely due to increased maintenance of theAustralind railcars.The average cost per passenger place kilometre forroad coaches was unchanged from 2005/06.0.150.250.190.320.220.320.190.360.190.37$1.45$1.56$1.51$1.75$2.16Australind$28.58$0.10$0.10$0.20$0.12$0.14AvonLink$35.54$0.10$0.08MerredinLink$2.14$2.11$2.63$2.82$3.17ProspectorTranswa: Revenue (million) by service$41.11 $41.83$3.20$3.45$3.80$4.15$4.19RoadCoaches2002/03 2003/04 2004/05 2005/06 2006/07A 5.6% increase in expenditure was mainly due togeneral cost pressures and increased maintenanceof the Australind railcars.$44.162002/03 2003/04 2004/05 2005/06 2006/07Transwa: Average Cost per passenger kilometre2002/03 2003/04 2004/05 2005/06 2006/07Transwa: Expenditure (million)Road CoachesRail34 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

SERVICE INFORMATIONThe Prospector and Australind trains continued tobe well patronised and this is expected to improvefurther in 2007/08, particularly for the Prospectorwith the running of more multi-car sets whichwill add to the overall seat capacity. The EasternGoldfi elds Railway upgrade (see below) will havean adverse short-term effect on this scenario.In 2006/07 the “Spring in the Avon” Sundaydepartures of the AvonLink proved to be asuccessful innovation. The seven departuresaveraged 96% capacity. With the assistance of theToodyay and Northam communities, Transwa willrepeat the exercise in September and October2007 with a total of eight Sunday departures aspart of its overall marketing strategy. However, theAvonLink and MerredinLink services were againpoorly patronised during the year. Other marketingactivities are under consideration to improve thissituation.Transwa road coaches continued to perform wellalthough there were slight reductions in patronageon some routes. Detailed analysis of these routes isbeing undertaken to ascertain what measures couldbe taken to increase patronage.IN THE FUTUREDuring the year Transwa started a concertedcampaign to promote the Transwa brand in themarketplace, with poster campaigns on Transperthtrains, a full “wrap” of a Transperth bus and targeteddestination advertising for train and coach services.The campaign will continue in 2007/08.Customer service will be further improved withupgrades to Transwa’s on-line booking facility and bybringing more of Transwa’s booking agents on-line.The refurbishment program of the Australindtrain will continue in 2007/08 with the outcomesbeing improved service reliability, greater comfortthrough refurbished railcars (including new seats)and increased amenity through upgraded toiletsand buffets.Upgrading of the Eastern Goldfi elds Railwaybetween Perth and Kalgoorlie, which will involveincreasing the length of six crossing loopsand replacement of old wooden sleepers, willcommence in late October 2007. The crossingloop project will create more places where longfreight trains can pull off the main line to allow theProspector to pass. While there will be some serviceimpacts during the work, these improvements willimprove the on-time running performance of theProspector. The track upgrade has been jointlyfunded by Westnet Rail (track operator), Pacifi cNational (freight operator), the State Governmentand the Federal Government (Auslink program).TRANSWA TRAINSTranswa operated 62 scheduled train services everyweek during 2006/07 covering four distinct services.Between Perth and Bunbury, the Australind trainoperated 28 services per week. The Prospectoroperated 18 times a week (nine services each way)between East Perth and Kalgoorlie. The AvonLinkoperated 10 services a week from Northamand Toodyay to Midland on weekdays and theMerredinLink provided an all stops service betweenEast Perth and Merredin and return each Monday,Wednesday and Friday (six services per week).These services operated over approximately onemillion service kilometres.The train fl eet consists of 14 railcars made up ofseven Prospector railcars, two AvonLink railcars andfi ve Australind railcars.Transwa employed 17 railcar operators based inPerth and Bunbury.The on-board services on the Australind wereprovided by eight Bunbury based staff while acontractor provides the on-board services on theProspector, AvonLink and MerredinLink.133.50 133.50113.10124.45130.312002/03 2003/04 2004/05 2005/06 2006/07Transwa Trains: Total Passenger Place Kilometres(millions)PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0735

TRANSWATHE YEAR’S DEVELOPMENTSThe reliability of the Prospector train continuedto be a source of concern, though the serviceachieved some signifi cant gains in serviceabilityin 2006/07. Transwa continued to work inclose partnership with the manufacturer of theProspector trains, United Group Rail, to ensurethat issues affecting reliability were dealt withexpeditiously.90%89%44%Prospector73%77%90%97%99%99%99%AvonLinkMultiple carsets were used during periods of highdemand which saw patronage increase by 7.4%during 2006/07. Optimum utilisation of railcars willcontinue in 2007/08.The Australind train was part way through amajor refurbishment program which began in thelatter part of the 2005/06. This program is beingimplemented in stages to ensure the continuityof daily services. Work carried out in 2006/07included upgrading of toilets, new carpets andimproved lighting in the carriages, improvedexternal visibility and improvements to the tractionand car power supply systems.While this refurbishment program is underway, theAustralind will be limited in its capacity, as railcarsare taken out of service temporarily. It is expectedthat this will continue to affect overall patronagenumbers until the program is completed. Theprogram will be substantially completed during2007/08.52%89%89%MerredinLink87%88%65%88%92%AustralindTranswa Trains: On-Time Running Performance2002/03 2003/04 2004/05 2005/06 2006/07The AvonLink service was bolstered by theinnovative “Spring in the Avon” Sunday departuresduring September, October and November 2006.A highlight of the initiative was the very high levelof customer satisfaction with the service. Morethan 97% of passengers surveyed were pleasedwith their experience and 85% said that theywould undertake the journey again. The supportfor the AvonLink in general improved, with 13%improvement in patronage in 2006/07 (includingthe “Spring in the Avon” patronage).1. PatronagePatronage on Transwa train services increasedby 4.5% compared with the previous year, whichequates to nearly 10,000 additional passenger trips.Signifi cant patronage increases were achieved onthe Prospector (7.4%) and AvonLink (13%). TheAvonLink fi gures include the “Spring in the Avon”patronage of 945 passengers which accountsfor 5.8% of the growth. A 2% increase in theAustralind patronage was particularly pleasingbecause it occurred despite limited railcaravailability due to the refurbishment program.The MerredinLink declined by just over 800passenger trips (10%).153,24487,54116,281154,04485,40716,242127138,74188,29115,1228,213152,69186,13316,2168,054155,69092,47918,3297,2392002/03 2003/04 2004/05 2005/06 2006/07Transwa trains: PatronageAustralind Prospector AvonLink MerredinLink36 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Owen Gonzalves at the helm of a Transwa road coach2. Passenger SatisfactionAgain in 2006/07, Transwa rail services achievedcommendable levels of customer satisfaction. TheAustralind and AvonLink/MerredinLink trains ledthe way with 91% and 87% respective satisfactionamong their customers. The Prospector satisfactionlevels improved to 85%.78%88%83%89%92%87%78%82%94%77%85%91%87%TRANSWA COACHESThe Transwa road coach service is a vital transportlink to many small communities in the southernhalf of Western Australia. Transwa operates roadcoach services on a comprehensive network whichextends to Kalbarri, Geraldton and Meekatharra inthe North, Augusta, Pemberton and Albany in theSouth West and Esperance in the South East.During the year, Transwa operated 144 separateroad coach services each week and employed34 road coach drivers for its fl eet of 22 fi ve-starcoaches.2002/03 2003/04 2004/05 2005/06 2006/07140.40160.40173.32 174.04 174.39Transwa trains: Passenger SatisfactionProspector Australind AvonLink & MerredinLinkINFRASTRUCTUREPlanning is underway to complete the upgradeof all train stations to high level platforms.Construction of new stations at Meckering andDoodlakine was nearing completion at year’s end.2002/03 2003/04 2004/05 2005/06 2006/07Transwa road coaches: Total Passenger PlaceKilometres (millions)PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0737

TRANSWATHE YEAR’S DEVELOPMENTSA consistent maintenance program coupled with agood performance of the coaches led to Transwacoach services achieving their punctuality target.Safety for Transwa passengers is paramount, andthe coach services again provided a safe travellingenvironment with only six minor incidents involvingpassengers in approximately 232,000 journeys.Some modifi cations were undertaken to operatingconditions at the East Perth coach depot, involvingchanges to the cleaning, fuelling and servicescheduling, which enhanced the service-effi ciency ofthe coaches.95% 95% 95% 95% 96%231,717231,805239,2682. Passenger SatisfactionThe level of customer satisfaction of Transwa coachservices remained high at 93%. This was primarilya refl ection of drivers’ commitment to safety andcustomer service, in conjunction with the comfortand cleanliness of the coach fl eet.239,0772002/03 2003/04 2004/05 2005/06 2006/07Transwa road coaches: Patronage232,80990%94%90% 91%93%2002/03 2003/04 2004/05 2005/06 2006/07Transwa road coaches: On-Time Performance1. PatronageTranswa coach services patronage dropped 2.6%due to a number of contributing factors includingthe Esperance fl oods in January 2007, and thedecline in the rural population. The reasons fora major downturn in patronage on services toAlbany and Geraldton are the subject of furtherinvestigation. A review of services will enableTranswa to put in place strategies to positivelyimprove patronage on these services.2002/03 2003/04 2004/05 2005/06 2006/07Transwa road coaches: Passenger SatisfactionINFRASTRUCTUREPreliminary discussions were held prior to thecommencement of planning for a road coachfl eet replacement program. The fi rst part of theprogram will establish design guidelines for thecoaches and set a timeline for the replacement ofthe existing fl eet.38 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

PTA PEOPLEPassenger Ticketing Assistant Ray Strelciunas.As at 30 June 2007, the PTA had 1,236 full-timeequivalent employees. This was an increase of 183(17.3%) on the previous year.Strategic People ManagementThe People Reference Group, a consultative groupwhich represents staff from across the organisation,continued to provide advice directly to the PTAExecutive on key people strategies. This includedsignifi cant input into new corporate initiatives,leadership matters and internal communication.Set against the backdrop of an ageing populationand a lower birth rate, the PTA is experiencingmajor growth and change with the expansion ofservices and associated increase in patronage.Global issues such as security, and the skills andlabour shortages for engineers and tradespeopleare also impacting the organisation.The age profi le of PTA staff and their years ofexperience are depicted in the graphs below:32%Age Profi le of PTA Employees at 30 June 20076O.50%0 to 5years18%1%9.70%5 to 10years5%3.20%10 to 15years19%25%5.40%15 to 20yearsunder 25between 25 & 35between 35 & 45between 45 & 55between 55 & 65over 652.10%20 to 25years19.10%over 25yearsPTA Staff: Years of Service as at 30 June 2007PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0739

PTA PEOPLEWith over half of the PTA’s workforce aged 45years and over, 21% of employees with over 20years of service and 22% female representation, thePTA continued the concerted workforce planningeffort to ensure it has the required capability anddiversity to meet its current and future businessobjectives.The PTA implemented an enhanced GraduateProgram to ensure it has the workforce requiredfor the future and to identify and develop futureleaders. Seven graduates were recruited in2006/07 and ten graduates are planned to berecruited in 2007/08. Forward target numbers wereset which will bring the total number of graduatesto 2% of the total workforce by 2010. Theprogram is available to students from a broad rangeof disciplines and is widely advertised at careerexpos and university career fairs.Equal OpportunityThe PTA is an equal opportunity employercommitted to fostering and supporting a workenvironment in which all individuals can realisetheir maximum potential. The Equity and DiversityManagement Plan 2007-2009 builds on thestrategies outlined in the 2004-2006 plan to meetcorporate objectives and to promote fl exibility andequity for staff and to achieve greater workforcediversity.During the year, the continued growth of thePTA workforce was taken as an opportunity tosignifi cantly improve the diversity profi le of theorganisation.Key strategies included a review of the recruitmentprocess to ensure there are no barriers toemployment for target groups and the promotionand accommodation of fl exible workplacestrategies where possible.There was continued attention to the distributionof women throughout the PTA, particularly insenior management positions. Representationobjectives for Indigenous Australians and Peoplewith Disabilities remained a priority with anincreased focus on improving youth representationto meet future capability requirements.The key equal employment initiatives implementedin 2006/07 were:Equal opportunity outcomesOBJECTIVE ACTION OUTCOMEHarassment-free workenvironmentAttraction andretention of staff toensure diversityImproved outcomes foryouthImproved outcomes forIndigenous AustraliansReviewed and updated policies ongrievance resolution, equity andworkplace bullying.Analysis of exit questionnairefeedback, particularly from EqualEmployment Opportunity groupmembers.A formal review of both the Graduateand Traineeship programs resulted inrecommended improvements to thestructure of both programs.Identifi cation of formal and informalIndigenous networks to promoteand communicate job opportunitiesavailable at the PTA.Improved awareness andunderstanding of relevant legislationand internal procedures.Data analysis has identifi edopportunities to enhance retentionrates and attraction opportunities.Increase in number of Graduatesand Trainees participating in the PTAprograms.Greater community networkingand an increase in the number ofIndigenous applicants.40 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Workforce PlanningA number of strategies were developed in the PTA’s“Building Capability: Workforce Planning StrategyReport V2 - 2006 to 2008” to continue to addressthe challenges of succession management, attraction,recruitment retention and development and thesestrategies are progressively being implemented.The key issues identifi ed through the collectionof qualitative and quantitative data that requireattention include:• Training opportunities including an emphasis onleadership training and future management of amultigenerational workforce;• Offer and promote development opportunitiesincluding career paths especially in operationalareas;• Succession management to address forecasts ofsenior management skills shortages through theimplementation of the Accelerated LeadershipDevelopment Program.• Knowledge transfer to facilitate the sharing ofskills, knowledge and experience. 50 mentoringpartnerships were established, with activeparticipation and support from the ExecutiveTeam;• Offer fl exible work practice options topromote work/life quality to increase workforceparticipation in diversity groups; and• Phased Retirement options as a retention strategyfor managing our mature age workforce.Performance and Development PlansThe Performance and Development Plan (PDP)process ensures a link between the strategic andoperational plans, and the key tasks and projectsbeing carried out by individuals. A revised process forsalaried staff and new format for wages employeesresulted in a marked increase in the PDP usage rateduring the year. Training in the PDP process andperformance management was delivered on-line,utilising fl exible, self-paced courses.Leadership TrainingThe fourth intake of supervisors and managerscommenced Front Line Management training in2006/07. The training includes work-based projectsrelating to operational issues. Participants receive aCertifi cate IV in Business (Frontline Management),on completion, ensuring that PTA managers holdnationally-recognised qualifi cations.To address forecasts of senior management skillsshortages, the PTA implemented a robust successionmanagement process with the establishmentof the Accelerated Leadership DevelopmentProgram. A pool of 66 potential successors wasidentifi ed and these people each completed a 360feedback process based on the State Government’sLeadership Capability Profi le. Development wasplanned based on individual results in conjunctionwith managers. Participants were also providedwith a workplace mentor to facilitate the sharingof skills, knowledge and experience. Fifty mentoringpartnerships were established, with activeparticipation and support from the Executive Team.Developing a Learning OrganisationThe PTA continued to coordinate employee accessto a wide range of professional developmentcourses. It also continued its Study AssistancePolicy which provides signifi cant support with feesand paid time off for employees to pursue bothundergraduate and postgraduate qualifi cations.The policy includes provision for a Chief ExecutiveScholarship fund of $20,000 per annum, and onescholarship was awarded in 2006/07.Employee EngagementIn response to the views of employees expressedin an organisation-wide opinion poll in June 2006,the PTA adopted a large program of initiatives andimprovements. The views of salaried and wagesemployees differed somewhat, which is refl ected inthe program.These initiatives and improvements relate to:Salaried employeesFair and impartialselection processCross-divisionalteamworkPerformancemanagementTrainingWages employeesOpportunities to learnand developInvolvement in decisionsAcknowledgement forsuggestionsFreedom fromdiscrimination andharassmentWork/life balancePUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0741

PTA PEOPLERadio Lollipop, Clean up Australia Day, RSPCAMillion Paws Walk, Activ Foundation City to Surf, RedCross Blood Drive and the Salvation Army ChristmasAppeal.Healthy LivingRailcar Maintenance Supervisor John ChurchmanTwo important employee engagement projectswere conducted during the year specifi callyamong the 263 urban railcar drivers – the PTA’slargest individual work group. The projects wereintended to improve leadership and inter-personalcommunications.A review of the communications climate wasconducted during April and May. The purpose ofthe review was to determine if any improvementin driver engagement had resulted from a raft ofcommunications initiatives during the previous 18months. The external consultant who conductedthe review reported marked improvements incommunications throughout the organisation. Theoverall tone of discussions with drivers was positive.The level of positive engagement between driversand the organisation had risen signifi cantly, andthere was a noticeably higher level of mutual trustand respect.The second project was an employee opinion pollamong the railcar drivers. A total of 145 driversparticipated, and 61% said they were satisfi edwith their job and 59% said they were positivelymotivated in their work.The results of both projects are being used toformulate a plan of additional actions to furtherimprove the engagement of drivers.PTA people are encouraged to participatein charity-related activities on behalf of theorganisation. During the year, about 150 staffparticipated in the Asthma Foundation Bike Hike,The PTA continued to provide access toprofessionally-delivered fi tness assessment andtraining for employees through its Health andLifestyle Program. This program was complementedwith health promotion information and activityprograms such as gym circuits and pilates. Therewas a 37% increase from previous programs in staffparticipation in the pathology and lifestyle assessmenttesting in 2007.The health promotion program “Cycling 100” wasinitiated for employees at Claisebrook and Nowergupdepots. The program is designed to establish healthybehavioural patterns through a commitment to aminimum of six months of cycling. The PTA versionof “Cycling 100” is based on a pilot project runby Department of Environment and modifi ed toaccount for the shift patterns at the two depots.There was an overwhelming response to the initiative.More than 160 participants signed up to completethe 60 kilometres per week for the duration of theprogram. Participants undergo a cardiovascular riskassessment and fi tness test at the start and end of theprogram to measure their progress. By the end of theprogram, it is expected that the participants will haveexperienced signifi cant physiological and psychologicalbenefi ts while collectively travelling over 200,000kmon their bikes.Competency-Based TrainingThe PTA is a Registered Training Organisation(RTO) whose purpose is to provide quality trainingand assessment services for the PTA in compliancewith the Australian Quality Training Framework andestablished best practice guidelines. The PTA RTOis scoped to issue Certifi cates II and III in Transportand Distribution (Rail Operations) from the TDT02Transport and Distribution Training Package.A number of initiatives were undertaken by the RTOin 2006/07. These included:• Managing the $1.5 million training contract forTransperth Train Operations• Delivering and administering re-qualifi cationtraining for a number of operational areas42 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

• Coordinating the Business Traineeship programand the Apprenticeship program• Implementing and managing the Janisondatabase to facilitate the centralisation oftraining records across the organisation• Launching PTA On-line in June 2006 to provideonline learning opportunities for all staff• Developing competency profi les for 92% of allwages employees in the illustrated divisions48.39%32.26%NETWORK & INFRASTUCTURECompetency Profi les51.61%TRANSWACompetency Profi lesCompleteNot Complete67.74%CompleteNot CompleteTRANSPERTH TRAIN OPERATIONSCompetency Profi les0.49%8.18%99.51%TOTAL COMPLETEDCompetency Profi lesCompleteNot Complete91.82%CompleteNot CompleteIn 2006/07, the RTO team coordinated, developed,delivered and reviewed competency-based andenterprise specifi c training and assessment programsfor the following:• Transit Offi cer training (new employees and requalification)• Urban Railcar Driver training (new employees andre-qualifi cation)• Urban Railcar Driver Recognition of PriorLearning• Customer Service Assistants training• Passenger Ticketing Assistants training• Train Control Recognition of Prior Learning• Car Park Attendants training• Control Monitoring Room Operators training• PTA Radio Procedures training• Emergency Management Manual awareness• Oleoresin capsicum spray training• Counter-terrorism training• SmartRider refresher training• Revenue Protection training for CHUBB guards• Authorised persons training for Transperth Bussecurity contractorsTraining SummaryCompetency-BasedTraining 2006/07PTAStaffContractStaffNumber of CoursesDelivered 49 8Number of PeopleTrained 481 96Total Training Days 818 20Labour RelationsOperational divisions continued implementation of theinitiatives provided for in the fi ve current enterpriseagreements. Pay rates for operational work groups, inparticular railcar drivers, were “disaggregated” fromJuly 2006, ensuring greater equity through linkingindividual employee wages directly to actual timeworked. Disaggregation means that shift and weekendpenalties are not averaged across the entire group but,instead, the full penalties and loadings are paid to theindividuals who actually work the shifts. Disaggregationin other areas will occur after further consultation withaffected employees.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0743

PTA PEOPLEFrom January 2007, Transperth Train Operationsdivision implemented a new system for deploymentof security and customer service personnel onthe urban rail system. Known as the X Plan, thesystem provides Transit Offi cers particularlywith a more team-based approach. The offi cersnow work predominantly on a single train linerather than across all lines, giving greater “lineownership”. X Plan rosters provide better worklifebalance while simultaneously signifi cantlyimproving operational effi ciency and effectiveness.The implementation of initiatives in the enterpriseagreements and the X Plan together led to areduction in the level of industrial disputation withrelevant unions.Transit Guards adopted the title “Transit Offi cers”and “Senior Transit Offi cers” in March 2007 tomore accurately refl ect their responsibilitiesand authority. This change of title refl ected arenewed focus on their primary function, whichis to maintain safety and security on trains andstations, particularly at night, requiring these offi cerson occasion to seize, search, arrest, detain andprosecute offenders.A new group of employee, Passenger TicketingAssistant (PTA), was introduced into the urban railsystem in January 2007. The role of the PTAs is toassist commuters at stations, mainly during daylighthours, by providing advice on timetables, trainschedules and train tickets. The PTAs also serve arevenue protection function by checking tickets andissuing fare evasion infringements at fare gates.RecruitmentDuring the fi nancial year 2006/07 there wassignifi cant recruitment activity in the TransperthTrain Operations Division (TTO) aimed atstaffi ng the Southern Suburbs Railway system andincreasing TTO staff numbers from around 700 toover 900. Some of the key recruitment processesincluded:• three Transit Offi cer pooled recruitmentprocesses (One involving a major marketingcampaign which launched a Transit Offi cerrecruitment website)• two Railcar Driver pooled recruitment process• Transit Supervisors pool• A Passenger Ticketing Assistant pooledrecruitment process• A Customer Service Assistant pooledrecruitment process• Operations Depot Managers for Mandurah andNowergup• Depot Masters for Claisebrook, Nowergup andMandurah• Administration staff for Claisebrook Depot• Driver Coordinators• Customer Service Supervisor• Passenger Service ManagersAn extensive press campaign ran from Saturday12 May 2007 to 2 June 2007 inclusive promotingthe theme “As a Transit Offi cer, you’ll getserious training” in the West Australian and localcommunity newspapers targeting the southern andsouth-east metropolitan area.The PTA conducted a total of 191 recruitmentprocesses and reviewed 14 Breach of StandardsClaims in 2006/07. Six breach claims were resolvedby the PTA without referral to Offi ce of PublicSector Standards Commission (OPSSC). Onebreach claim was still undergoing an investigationwith the OPSSC at year’s end. Of the remaining 7claims, the OPSSC found that there was no Breachof Standards and all selection panel decisions wereupheld.Compliance with Human ResourceManagement StandardsSpecifi c reference is made to the standards inrelevant human resource policies and informationfor candidates applying for positions with thePTA, such as Application Kits and at RecruitmentInformation Sessions. Employees are also madeaware of their rights in all recruitment, selection,appointment and grievance management processesand at inductions for all new employees. A reviewof the Recruitment, Selection and Appointmentpolicy for the PTA was undertaken during theyear, and several changes being made to improvecompliance in this area.Monitoring of PTA’s compliance with the Standardsincluded the use of checklists and audits byrecruitment staff as well as analysis of mattersraised through formal or informal claims of aBreach of Standards.44 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

SENIOR MANAGEMENT STRUCTURECEOPublic TransportAuthorityExecutiveAssistantLegal Offi cerExecutiveDirector,Safety & StrategicDevelopmentManager,CorporateCommunicationsExecutiveDirector,Finance &ContractsExecutive Director,Transperth System,Regional & SchoolBus ServicesManager,Corporate Issues& ComplianceExecutive Director,People &OrganisationalDevelopmentServiceAgreementGeneral Manager,TranswaGeneral Manager,Transperth TrainOperationsServiceAgreementGeneral Manager,Network &InfrastructureProject Director,New MetroRailDirector,City ProjectNew MetroRailPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0745

THE PTA EXECUTIVEReece WaldockMark BurgessKim StonePat ItalianoHugh SmithReece WaldockChief Executive OfficerReece has 23 years experience instrategic management with particularexpertise in organisational reform. Heheld a number of senior executiveroles within the Department ofCommerce and Trade and Departmentof Transport from the early 1990sthrough to the end of 2000. InDecember 2000, following the sale ofthe rail freight business of The WesternAustralian Government RailwaysCommission, Reece acted in theposition of Commissioner of Railwaysuntil the Railways Commission wasextinguished on 30 June 2003.With the creation of the PublicTransport Authority on 1 July 2003,Reece acted in the position of ChiefExecutive Offi cer Public TransportAuthority, to which he was appointedon 17 August 2004. Prior to his careerwith the public sector in WesternAustralia, Reece held a number ofsenior management roles with BHP.Mark BurgessExecutive Director TransperthSystem, Regional and School BusServicesMark has gained extensive logistic,transport and people managementskills through 21 years in theArmy and ten years managing theTransperth system. He joined thePTA at its formation after six yearswith the Department of Transportand the Department for Planning andInfrastructure.Mark is responsible for managing,coordinating and marketing theTransperth system, comprisingcommercial bus contractors, acommercial ferry contractor and theurban passenger rail services. He isalso responsible for regional townbus services and school bus servicesthroughout Western Australia.His focus is on delivering quality, reliable publictransport services through more than 925transport service contracts across the State.Kim StoneGeneral Manager, TranswaKim joined the PTA in August 2004 after two years’secondment from the Department for Planning andInfrastructure as Director of School Bus Reform.He had previously been Director of Coastal andFacilities Management in the Department ofTransport for four years. Kim has worked in boththe State and Federal Government arenas inaddition to a number of roles in the private sector,including running his own management consultingbusiness. His background is in engineering andmanagement.Kim is responsible for managing Transwa’sregional rail and road coach network as well asimplementing the strategic elements of PTA’scorporate plan which apply to Transwa. He is alsoresponsible for the delivery of key performanceindicators in the areas of customer service,maintenance and revenue building within Transwa.Pat ItalianoGeneral Manager, Transperth TrainOperationsDuring his 34 year career in public transport, Pathas gained considerable experience in businessmanagement, audit and operational expertisewithin an integrated urban passenger transitenvironment.Pat is responsible for promoting and managing thedelivery of passenger rail services to high customerservice standards and is committed to ensuring thesuccessful integration and delivery of services onthe Southern Suburbs Railway line.Hugh SmithGeneral Manager, Network andInfrastructureHugh launched his engineering career at BritishSteel in the United Kingdom and joined theWestern Australian Government Railways (WAGR)in 1972 as an Assistant Engineer at the MidlandWorkshops, where he subsequently held seniormanagement positions in design and production.He was appointed General Manager of the UrbanPassenger Division in 1994.46 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

In this role he was responsible for developingstrategies for customer focus, reliability ofservices and improved on-time running of trains.Following the sale of WAGR’s freight business inDecember 2000, Hugh was appointed GeneralManager, Network and Infrastructure in anorganisation focused exclusively on passengertransport and customer service.Peter KingExecutive Director, Finance andContractsPeter is a Fellow of the CPA Australia and ChiefFinance Offi cer of the PTA.His professional interest is in the areas ofstrategic fi nancial management, businessperformance, procurement and cost effectiveservice delivery. He has 23 years’ seniormanagement experience in fi nancial policy andas Chief Finance Offi cer in the West AustralianPublic Sector including senior management rolesin Treasury and Finance, Justice, and Health.Peter joined PTA on secondment in September2006 and was appointed to the Executive inJune 2007.Cliff GillamExecutive Director, People andOrganisational DevelopmentCliff is an industrial relations, human resourcesand organisational development professionalwith 17 years experience in The WesternAustralian Public Sector. He holds post-graduatequalifi cations in the arts, business, publicpolicy and management, and is a Fellow of theAustralian Human Resources Institute. Highperformance organisations achieve excellencethrough a genuine commitment to their people,sustained attention to their developmentand well formulated strategies to ensureeffective leadership is underpinned by targetedrecruitment aimed at long term sustainability inhuman capital. Along with his responsibility forstrategic people management, Cliff oversees thedelivery of functional human resource servicesfor the PTA’s people.He was appointed to the Executive in May2004.Sue McCarreyExecutive Director, Safety andStrategic DevelopmentSue joined the Western AustralianGovernment Railways in June 2002 asthe Director of Policy. A law degreeand post-graduate qualifi cations inpolicy and administration provide Suewith expertise in government policyand administration, including legalframeworks and the mechanics ofgovernment.Her role includes making the linkbetween high level policy andoperations within the agency anddriving strategic change in safety, policydevelopment and business management.Prior to joining the PTA, Sue worked ina number of government administrationroles within the Department ofEducation and Training including policydevelopment and review, strategicplanning, Commonwealth-State relations,and she spent time as a school principal.Richard MannProject Director, City Project, NewMetroRailRichard came to New MetroRail withmore than 10 years’ experience inproject and contract management atgovernment and semi-governmentlevel. He joined the then Main RoadsDepartment in 1988 after graduating inengineering, and spent the next 14 yearspredominantly in WA’s north-west. Hereturned to Perth as Manager of TermContracts (Metro Region) where hewas responsible for the maintenanceof all of Main Roads’ metropolitanareaassets including the Northbridgetunnel. He was seconded to the PTA(then WAGR) in April 2002 to help thePerth City Rail Advisory Committeeprepare its second report, includingrecommendations on the alignment ofthe Perth-Mandurah line through thecity. When the report was fi nished andits recommended alignment adopted byGovernment, Richard stayed on to headthe City Project.Peter KingCliff GillamSue McCarreyRichard MannPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0747

COMPLIANCE REPORTSCOMPLAINT ANDCOMMENT HANDLINGThe Public Transport Authority welcomes feedback,including complaints, from its passengers.It treats all comments and complaints with a highpriority and has in place information systemsto log and track complaints, provides responsesto customers whenever requested, and has anauditable trail of actions where improvements areidentifi ed as necessary.Although complaints and comments come from avariety of sources including commercial fi rms andother Government departments or may not relatedirectly to passengers’ experiences the greatestnumber come directly from customers.The primary means of passengers registeringcomments or complaints is through the PTACommentLine on telephone number 13 16 08.This well-advertised telephone number takescomments on any aspect of PTA business, registersit on the CommentLine system, and forwards thecomments/complaints to the appropriate areaof the PTA for action. The other key methodfor passengers to register complaints is throughthe Transperth website. Additionally passengersoccasionally submit comments, commendationsor complaints in writing. Generally, complaintsreceived via the PTA CommentLine telephonenumber and the website are responded to withinseven days. In 2006/07, the PTA CommentLinedealt with 15,242 comments, of which 9,139 werecomplaints.In early 2007, an independent audit was conductedinto the comment and complaint handling process.The audit identifi ed that the PTA has a verystrong process, but also noted opportunities forimprovement. Based on this audit, the PTA beganimplementing revised procedures from the start of2007/08.SUBSTANTIVE EQUALITYAll Transperth operational staff, such as bus drivers,Passenger Ticketing Attendants and Transit Offi cers,all receive comprehensive customer service training,with periodic refresher training.This customer service training includes disabilityawareness, awareness of anti-discriminationrequirements and, most importantly, PTA values.The fi rst value is “we value and respect ourcustomers, suppliers and each other”.Operational staff understand that each customeris valued and that they must act with courtesy andrespect. Customers are afforded the opportunityto provide feedback on the level of service offeredby our staff through the PTA CommentLine (1316 08), and PTA management and supervisors usethis feedback to constructively counsel staff andtrain them if their customer service performance isinadequate.The PTA encourages a strong focus on customerservice via monthly and annual customer serviceawards. Transwa’s operational staff understandthat each customer is valued and that they mustact with courtesy and respect. Customers areprovided the opportunity to provide feedback onthe level of service offered by our staff throughthe PTA’s CommentLine (13 16 08) and Transwamanagement and supervisors use this feedback tocounsel, coach and train staff. Additional feedbackis also gained from Transwa’s annual passengersatisfaction survey.SAFETYThe strong focus on safety as a core value ofthe organisation continued during the year.Representatives of the safety teams from acrossthe PTA had a strategic safety planning day andidentifi ed six key focus areas which formed theHealth, Safety and Environment (HSE) StrategicDirections for the year. This document is updatedannually and endorsed by the Executive Safety andEnvironment Management Committee to ensure acontinued focus on strategic safety management.48 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

RAIL SAFETY1. AccreditationA major step was undertaken in overhauling thesafety management system to meet the newrequirements to AS 4292 and the anticipatednational changes to rail safety requirements,including fatigue management, risk management andsafety cultural programs.2. Compliance Inspections andReportingThe annual rail safety compliance audit wasconducted by the Offi ce of Rail Safety inNovember 2006 and a report was issued on 27November 2007. The Rail Safety Audit found threenon-compliances and 27 observations, comparedwith seven non-compliances and 23 observationsthe previous year. All non-compliances andobservations were closed out at 30 June 2007.3. Inquiries and InspectionsThere was one investigation involving CategoryA incidents requested by the Offi ce of Rail Safetyunder Section 39(3) of the Rail Safety Act. Theincident involved a collision between a passengertrain and a person in a wheel chair at CarlisleStation in April 2007.4. Notifiable OccurrencesDuring the year there were 16 Category A and627 Category B incidents reported to the Offi ceof Rail Safety during 2006/07. This compares with18 Category A and 587 Category B incidents in2005/06.OCCUPATIONAL SAFETYAND HEALTHSeveral safety and health programs wereintroduced during 2006/07, including the launch ofthe HSE Handbook for employees; introduction ofthe Safety Topic of the Month campaign and launchof the “Safety STAR (Stop; Think; Assess; Respond)”marketing and hazard management program. Theseinitiatives complement the organisation’s long-termsafety cultural change program.The functioning of safety committees was improvedby the implementation of a new procedureand structural framework. Safety and HealthRepresentatives attended introductory andrefresher training courses as they were elected orre-elected.1. TrainingTraining in safety and health continued to be apriority, with many managers and supervisorscompleting a two-day training course on theiroccupational safety and health responsibilities.A contingent of PTA’s safety and healthrepresentatives, as well as several supervisors,managers and safety coordinators, also attendedthe 2006 WorkSafe Forum where they heardfrom and questioned a panel of safety experts andpresenters on various topics.Several new in-house training programs weredeveloped this year, including a half- and full- daycorporate Health Safety and Environment (HSE)inductions for administrative and operationalstaff respectively, as well as a full-day, interactivetraining course in conducting HSE investigations.PTA coordinated two one-day workshops onHuman Factors in Transport, which were facilitatedby Dr Matthew Thomas of the Centre for SleepResearch, University of South Australia. Theworkshops included attendees from PTA, as wellas representatives from key contractors, serviceproviders and other stakeholders, including theOffi ce of Rail Safety. Training was also initiatedacross the organisation on bullying, violence andaggression.2. OSH Reporting SystemThe PTA’s OSH reporting system, which waslaunched on 1 July 2004, enables the organisationto capture reported hazards, near-misses andincidents, and facilitates interrogation of data toanalyse trends.Several improvements and additions were made tothe system in 2006/07, including an action registerto track high-level actions arising from audits andinvestigations and a health assessment form whichenables electronic capture and notifi cation of healthassessment results and review requirements for allemployees.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0749

COMPLIANCE REPORTSTwo trials were also begun of paper-based hazardreport forms that are entered into the electronicsystem by a central contact, to enable fi eld-basedstaff to contribute to the proactive reporting andcontrol of hazards. These trials will be evaluatedduring 2007/08 for consideration of roll-out to thewider organisation.Planning and preliminary development wascompleted for the re-design of the electronicincident report form in the 2007/08 fi nancial year.3. Injury ManagementInjury prevention and injury management continuesto be a focus for the PTA.Previously implemented changes to the PTA’s injurymanagement procedures, including more transparentsystems of work, proved to be helpful whenmanaging long-term claims and reducing confl ictduring the management of claims. To support thecontinued development of injury management, areview of all procedures was conducted to ensurethey were current and met the requirements ofregulation and codes of practice.Despite a signifi cant increase in the number ofhours worked, due to an increase in the number ofemployees, PTA’s 2006/07 injury frequency rates arethe lowest in 3 years. The lost-time injury frequencyrate for the organisation for the year was 44.45per million hours worked compared to 61.02* in2005/06. The average duration for employees withlost-time injuries returning to work increased slightlythis year to 20.81 days from 14.65 in 2005/06 dueto 4 long term injuries. In addition to these claims,proactive management of smaller issues that wereprogressing to claims reduced the number of claimsthat were made.4. Health Assessment StandardsOn July 1 2004, the National Transport Commissionintroduced the National Standard for HealthAssessment of Rail Safety Workers. The Standardapplies to all rail safety workers as defi ned in theRail Safety Act. It relates to health assessments andprocedures for monitoring the health and fi tness ofworkers to perform rail safety duties.Regular updates continued to be provided acrossthe organisation this year, to ensure the currency ofsafety critical health assessments was maintained. Toassist with this goal, a project transferring all healthassessment records from the PTA’s human resourcesrecords system to a custom-built section of theSafety reporting system was completed in 2006/07.The new arrangement resulted in a reduction in thenumber of health assessments not completed bytheir due date.5. Testing for Alcohol andOther DrugsRandom and “for cause” testing of employees andcontractors for alcohol and other drugs continuedthroughout the year as part of the organisation’salcohol and other drugs management program.The PTA’s positive results for illicit substanceswere again below the industry average. Of the 714random tests conducted, 11 positive results due toillicit substances were recorded. Only one of theillicit positive results was for a direct PTA employee,the remaining 10 were for contractors. No illicitpositive results were recorded following “for cause”(post-incident) tests. The organisation continuesto monitor trends in alcohol and other drug useto ensure that its awareness sessions refl ect thesetrends, thus maintaining relevance and maximisingtheir impact.51.6761.0244.456.86%5.32%1.54%1.88%2004/05 2005/06 2006/07PTA: Lost-Time Injury Frequency Rate* Adjusted due to time lost post 30 June 2006PositivesNon-IllicitPositives*IllicitPositivesIndustryBenchmark(illicit)Alcohol and Other Drugs Positive ResultsProfi le 2006/07* non-illicit positives include over-the-counter or prescribedmedications (supported by doctor’s letter)50 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

DISABILITY ACCESS ANDINCLUSION PLAN (DAIP)OUTCOMESThe PTA continued to strengthen its relationshipswith Disability Support Agencies to improve accessto public transport for people with disabilities. TheDAIP for 2007-2012 was released in June for publiccomment. See section “Accessibility for People withDisabilities” for additional information.RECORDKEEPINGIn 2006/07, the PTA commenced a recordkeepingimprovement program, resulting in thedevelopment and approval of the PTA’s Retentionand Disposal Authority, development andimplementation of a File Plan and Thesaurusand development of recordkeeping policies andprocedures. The evaluation of the effectivenessand effi ciency of the recordkeeping system willbe undertaken in 2008, once these initiativeshave been embedded in the agency as standardrecordkeeping practices.In the recordkeeping improvement program, thedevelopment of a training and information programwas identifi ed as a key strategy in improvingcorporate knowledge and understanding and theapplication of good recordkeeping practices. Anintegral part of the program will be recordkeepingawareness training. The PTA purchased acommercial training package for recordkeepingawareness training, which will initially be introducedto administrative employees at the Public TransportCentre. The package will be rolled out to at least90% of employees at this location within 12 monthsof its implementation.Pending formalisation of the new training andinformation program, the PTA continued deliveringits existing recordkeeping information and trainingin 2006/07.This was provided through:• presentations for new PTA employees andinformation provided in the Induction Manual• information sessions at the invitation of businessareas• informal training and information sessionswhere staff are consulted or interviewedrelating to recordkeeping activities• regular notices on the intranet newsletter“Transnews”• one-to-one and group training in the use of therecords management system (for new staff andat a recent system upgrade)The PTA will also formalise methods for measuringand evaluating effi ciency and effectiveness of thePTA’s recordkeeping system. This will be modelledon the quality management framework forISO9001:2000.SUSTAINABILITYThe PTA fi ve-year Sustainability Action Plan wassubmitted in February 2005. The plan outlines anumber of priority areas to maximise sustainabilityduring the planning, development and operations ofits integrated public transport system. The plan alsoencourages PTA staff to actively participate in theactivities that make a contribution towards a betterfuture. These activities include energy conservation,recycling, fundraising, travel by public transport, andoccupational safety and health.In 2006/07, the PTA continued to work withrelevant external parties to identify opportunitiesto maximise sustainability during the developmentand planning of transport services. This included:• Transit Oriented Development (TOD) planning• Integration of infrastructure for pedestrians andcyclists• Protection and restoration of local air, water,soils, fl ora and fauna• Services to assist people with disabilitiesHighlights of the implementation of the PTA’sSustainability Action Plan’s priorities for 2006/07include:• First PTA report to the Western AustraliaGreenhouse Gas Inventory• Establishment of a Green Transport Team todevelop a Green Transport Plan for the PTA• Participation in the development of thePremier’s Climate Change StatementPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0751

COMPLIANCE REPORTS• Full implementation of the paperlessSmartRider ticket system in Transperth• Implementation of the environmentalmanagement system training program andrelated E learning• Appointment of a Cycling Coordinator toestablish an employee cycle-to-work program• Implementation of an environmental inductionprogram• Implement recommendations of the energyaudit and building greenhouse rating conducedin 2005/06• Implemented recommendations of a wateraudit and worked with Water Corporation toidentify improvement strategies including thetrial of waterless urinals• Participation in the “Clean Run” program• Continued biodiesel trials• Employee participation in the Business Clean-upAustralia DayMany objectives and priorities of the SustainabilityAction Plan are integrated into other PTA initiatives,for example:• Accessibility for People with Disabilities• SmartRider• Gas Buses• Building Better Station program• New MetroRail• Disability Access and Inclusion PlanGREENHOUSE EMISSIONREDUCTION ACTIVITIESDuring 2006/07, the PTA:• Continued implementation of its SustainabilityAction Plan• Assisted the Department for Planning andInfrastructure in its research project intohydrogen-powered buses• Completed delivery of its new (B-series)suburban railcars which use re-generativebrakes to improve energy effi ciency by over20% (implements a similar principle whichapplies to hybrid cars)• Continued purchase of gas buses which reducegreenhouse gas emissions by 12%HIGH LEVEL OF URBAN AIRQUALITYThe PTA continued its program to replace dieselfuelledTransperth buses with compressed naturalgas buses.A total of 109 Transperth diesel buses were testedthrough the “Clean Run” program, including ninebuses from the biodiesel fl eet. The result of thetests were used to confi rm the suitability of thecurrent maintenance program and will be usedto identify high emission buses for additionalpreventative maintenance.All pre 1996 Transperth buses passed theemission testing requirements set by the FederalGovernment.PRICING POLICYGovernment continued to maintain publictransport fares at an affordable level by restrictingfare increases to the change in CPI. In accordancewith government policy student fares were held at50 cents.Transwa fares are established by the StateGovernment to ensure affordability for regionalWestern Australians. For the 2006/07 fi nancial year,fares were held at 2005/06 levels.Transperth fare information is provided atwww.transperth.wa.gov.au.Transwa fare information is provided atwww.transwa.gov.au.52 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

COMPLIANCE STATEMENTSStatement of Compliance with Public Sector StandardsPTA’s human resource management policies and practices are subject to ongoing review and, inaccordance with section 31 (1) of the Public Sector Management Act, comply fully with the Public Sectorstandards in Human Resource Management.Statement of Compliance with relevant written lawEnabling LegislationPTA is established under the Public Transport Authority Act 2003, an Act to establish a State agencyresponsible for providing public passenger transport services anywhere in the State and performingfunctions under other Acts, such as management of railway land corridors under the Rail Freight SystemAct 2000 and the construction of railways under various railway enabling Acts and the management ofgovernment railways under the Government Railways Act 1904. Currently the Minister responsible for PTAis the Minister for Planning and Infrastructure.Legislation impacting on the PTA’s ActivitiesIn the performance of its functions PTA complies with all written relevant laws of Western Australia andwhere relevant, reports on an annual basis in accordance with the following key legislation:Financial Management Act 2006; Electoral Act 1907; Equal Opportunity Act 1984; Superannuation andFamily Benefi t Act 1938; Heritage of Western Australia Act 1990; Freedom of Information Act 1992; StateSupply Commission Act 1991; Public Sector Management Act 1994; Disability Services Act 1993 (Cth);Rail Safety Act 1998; Railways (Access) Act 1998; State Trading Concerns Act 1916; Occupational Safety &Health Act 1984; Environmental Protection Act 1986; and Public Interest Disclosure Act 2003.Other various Agreements/Acts and written laws impact on the PTA’s activities from time to time.In the fi nancial administration of PTA, we have complied with the requirements of the FinancialManagement Act 2006. We have also complied with every other relevant written law and exercisedcontrols to provide reasonable assurance that the receipt and expenditure of moneys, the acquisitionand disposal of public property and the incurring of liabilities have been in accordance with legislativeprovisions.As at the date of signing we are not aware of any circumstances which would render the particularsincluded in this statement misleading or inaccurate.Reece WaldockAccountable AuthorityPeter KingChief Financial Offi cer30 August 2007 30 August 2007PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0753

ELECTORAL ACT 1907 – SECTION 175ZEIn compliance with section 175ZE of the Electoral Act 1907, the PTA is required to report on expenditureincurred during the fi nancial year in relation to advertising agencies, market research organisations, pollingorganisations, direct mail organisations and media advertising organisations.The details of the report are:2007$Expenditure with Advertising Agencies:Abbott & Co Printers 5,875Bunbury Key Management Pty Ltd 2,804Buspak Advertising Group 39,070CISWA 1,700Concept Media 6,912Creative Page 9,516Defi nition 41,560Design Graphic Management 4,520Discus Digital Print 60,865Exposure Print Strategies 46,345Gatecrasher Advertising 244,320Graduate Careers Australia 6,000Image Source 345,480Information Radio 7,800Jason Signmakers 1,544,134Key 2 Design 131,515Market United Pty Ltd 157,545Raw Image 13,210Swan Television 59,085Wilson Sign Solutions 2,1852,730,441Expenditure with Market Research Agencies:Patterson Market Research 52,079Taylor Nelson Sofres 309,105361,184Expenditure with Polling Agencies:Expenditure with Direct Mail Agencies:NilNil54 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007$Expenditure with Media Advertising Agencies:Advance Press Pty Ltd 783,225Australia’s Golden Outback 1,636Artsource 10,250Australia’s South West 2,364Countrywide Publications 17,386Evoke Media 1,490Great Aussie Holidays 8,436Marketforce Limited 214,590Media Decisions 1,062,014Picton Press 5,481Rare Creative Thinking 195,208Rural Press Regional Media 3,500State Law Publisher 2,923The Artists Foundation 6,700Toodyay Tourist Community Inc 1,640The Write Idea 1,3102,318,153TOTAL EXPENDITURE 5,409,778PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0755

EXPLANATION OF MAJOR CAPITAL EXPENDITUREVARIATIONS 2006/07(a) Budgeted estimates and actual results for 2006/07Budget Actual Variation Comments$000 $000 $000Metropolitan and regional passenger servicesBus acquisition program 37,277 32,367 4,910 Project schedulingSmartcard ticketing system 6,661 3,626 3,035 Project delayedRockingham city centre transit system 8,600 5,793 2,807 Project schedulingStation facilities improvements 13,231 10,479 2,752 Project schedulingReplacement cash ticket vendingmachines (TVM’s) at railway stations 5,003 2,591 2,412 Project delayedWheel lathe acquisition and facility 2,684 1,227 1,457 Project schedulingSafer rail initiative 1,444 50 1,394 Project delayedPerway track and associated works 5,119 3,921 1,198 Project schedulingAccessible public transport upgradeprogram 2,150 968 1,182 Project schedulingEMU railcar modifi cations 2,717 1,857 860 Project delayedBus priority projects 1,090 308 782 Project schedulingConcrete resleepering projects 8,700 9,868 (1,168) Project schedulingOther 60,821 55,540 5,281 Project schedulingCorporateGeraldton Southern Rail Corridor 1,300 1,116 184 Project completeNorth Quay Rail Loop 300 168 132 Project completeNew MetroRail 306,829 276,212 30,617 Project delayedTotal 463,926 406,091 57,83556 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

(b) Major uncompleted worksEstimated Estimatedtotal cost total costprevious current Estimatedyear (as year (as cost toper budget) per budget) complete Year ofDescription of work $000 $000 $000 completion CommentsBus acquisition 398,309 413,227 161,582 2010/11 Additional CATbus acquisition45 New EMU railcars 0 160,000 128,584 2010/11 ERC approvalcurrent yearStation facilities improvements 49,168 66,718 53,659 2012/13 Project costescalationsConcrete resleepering project 60,060 60,060 37,343 2010/11New MetroRail 1,613,173 1,613,173 37,166 2007/08Bus priority projects 26,330 26,330 26,022 2012/13Kewdale freight complexredevelopment 0 14,500 13,402 2009/10 ERC approvalcurrent yearReplacement cash ticket vendingmachines (TVM’s) at railway stations 15,400 15,400 12,809 2008/09Split and replace radio system 12,215 12,215 11,116 2011/12Accessible public transport upgradeprogram 8,577 8,577 5,934 2012/13Rockingham transit system 10,800 15,008 4,607 2007/08 Project costescalationsSmartcard ticketing project 29,152 29,152 4,035 2007/08(c) Major completed worksTotal cost$000Buildings 7,534Land 1,320Rollingstock 24,815Rail infrastructure 171,157Plant, equipment and motor vehicles 1,575Bus infrastructure 14,501Bus acquisitions 46,395Total 267,297PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0757

INDEPENDENT AUDIT OPINIONAUDITOR GENERALINDEPENDENT AUDIT OPINIONTo the Parliament of Western AustraliaPUBLIC TRANSPORT AUTHORITY OF WESTERN AUSTRALIAFINANCIAL STATEMENTS AND KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007I have audited the accounts, financial statements, controls and key performance indicatorsof the Public Transport Authority of Western Australia.The financial statements comprise the Balance Sheet as at 30 June 2007, and the IncomeStatement, Statement of Changes in Equity and Cash Flow Statement for the year thenended, a summary of significant accounting policies and other explanatory Notes.The key performance indicators consist of key indicators of effectiveness and efficiency.Chief Executive Officer’s Responsibility for the Financial Statements and KeyPerformance IndicatorsThe Chief Executive Officer is responsible for keeping proper accounts, and the preparationand fair presentation of the financial statements in accordance with Australian AccountingStandards (including the Australian Accounting Interpretations) and the Treasurer’sInstructions, and the key performance indicators. This responsibility includes establishingand maintaining internal controls relevant to the preparation and fair presentation of thefinancial statements and key performance indicators that are free from materialmisstatement, whether due to fraud or error; selecting and applying appropriate accountingpolicies; making accounting estimates that are reasonable in the circumstances; andcomplying with the Financial Management Act 2006 and other relevant written law.Summary of my RoleAs required by the Auditor General Act 2006, my responsibility is to express an opinion onthe financial statements, controls and key performance indicators based on my audit. Thiswas done by testing selected samples of the audit evidence. I believe that the audit evidenceI have obtained is sufficient and appropriate to provide a basis for my audit opinion. Furtherinformation on my audit approach is provided in my audit practice statement. Refer"http://www.audit.wa.gov.au/pubs/Audit-Practice-Statement.pdf".An audit does not guarantee that every amount and disclosure in the financial statementsand key performance indicators is error free. The term “reasonable assurance” recognisesthat an audit does not examine all evidence and every transaction. However, my auditprocedures should identify errors or omissions significant enough to adversely affect thedecisions of users of the financial statements and key performance indicators.Page 1 of 24th Floor Dumas House 2 Havelock Street West Perth 6005 Western Australia Tel: 08 9222 7500 Fax: 08 9322 566458 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Public Transport Authority of Western AustraliaFinancial Statements and Key Performance Indicators for the year ended 30 June 2007Audit OpinionIn my opinion,(i) the financial statements are based on proper accounts and present fairly thefinancial position of the Public Transport Authority of Western Australia at30 June 2007 and its financial performance and cash flows for the year ended onthat date. They are in accordance with Australian Accounting Standards(including the Australian Accounting Interpretations) and the Treasurer’sInstructions;(ii) the controls exercised by the Authority provide reasonable assurance that thereceipt, expenditure and investment of money, the acquisition and disposal ofproperty, and the incurring of liabilities have been in accordance with legislativeprovisions; and(iii) the key performance indicators of the Authority are relevant and appropriate tohelp users assess the Authority’s performance and fairly represent the indicatedperformance for the year ended 30 June 2007.COLIN MURPHYAUDITOR GENERAL31 August 2007PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0759

CERTIFICATION OF KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007I hereby certify that the performance indicators are based on proper records, are relevantand appropriate for assisting users to assess the Public Transport Authority’s performance, andfairly represent the performance of the Public Transport Authority of Western Australia for thefi nancial year ended 30 June 2007.R WaldockAccountable Authority30 August 200760 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007To make its contribution to the Government’s goal,‘To enhance the quality of life and wellbeing of allpeople throughout Western Australia’, the PTA hasadopted two outcomes:1. Accessible, reliable and safe public transportsystem2. Protection of the long-term functionality of therail corridor and railway infrastructureIt aims to achieve the fi rst of these outcomesthrough the:• Metropolitan and Regional Passenger Services –these include– Perth Metropolitan Train, Bus and FerryServices of Transperth; and– Regional Town Bus Services;• Country Passenger Rail and Road CoachServices of Transwa; and• Regional School Bus ServicesThe indicators of success in achieving thisoutcome and running these services are based onthe use of public transport, accessibility, reliability,customer satisfaction, safety and cost effi ciency.The PTA aims to achieve the second outcome -protection of the long-term functionality of thefreight rail corridor and railway infrastructure- through its quality management of the railcorridor and residual issues for the rail freightoperations which were leased to private sectoroperators in 2000.Links to the Government Strategic GoalThe links to the Government Strategic Goal are presented in the table below:GOVERNMENTSTRATEGIC GOALTo enhance the quality of lifeand wellbeing of all peoplethroughout Western Australia.PTA OUTCOMESAccessible, reliable and safepublic transport systemProtection of the long termfunctionality of the rail corridorand railway infrastructureSERVICES1. Metropolitan and regionalpassenger services2. Country passenger rail androad coach services3. Regional school bus services4. Rail corridor and residualfreight issues managementPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0761

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007MEASURING PERFORMANCEOUTCOME 1:Accessible, reliable and safe public transport systemEFFECTIVENESSINDICATORSThe PTA’s effectiveness in providing an accessible,reliable and safe public transport system ismeasured using the following key effectivenessindicators for:1. Use of public transport2. Accessible public transport3. Service reliability4. Level of overall customer satisfaction5. Customer perception of safety6. Level of notifi able safety incidents1. USE OF PUBLIC TRANSPORTThe use of public transport is measured bycomparing the annual number of passengerscarried with the number of service kilometres.Service kilometres are kilometres operated onscheduled passenger services and exclude “nonproductiverunning” i.e. travelling from the depot tocommence a service trip, and travelling back aftercompleting a service trip.The measure indicates the extent to whichservices provided, as represented by the numberof kilometres operated, are being utilised. Anincreasing trend in the indicator will generally signifythat patronage is rising at a rate greater than therate of increase in service kilometres operated andrepresents an improvement in effectiveness as wellas an increase in the use of public transport.This effectiveness indicator is applied to eachmode of public transport. The indicator is basedon total boardings on Transperth services andincludes fare-paying boardings plus free travel andtransfers. Transfers are boardings which occureither between services within the same mode orbetween modes during the specifi ed free transfertime.Transperth Bus Services1.23 1.271.301.291.302003/04 2004/05 2005/06 2006/07 TARGET2006/07Passengers per service kilometreThe result for 2006/07 was below the targetfor the year and lower than the 2005/06 result.The 2006/07 target was not achieved becausewhile total boardings exceeded the target by0.5%, service kilometres were 1.3% above target.The target of 1.30 was based on total boardingsof 64.290 million and service kilometres of49.298 million. The results for 2006/07 were totalboardings 64.623 million and service kilometres49.962 million, which resulted in averageboardings of 1.29 for 2006/07.62 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Total boardings in 2006/07 recorded an increase of1.1% compared to the 3.3% increase in 2005/06.The decline in the rate of increase in totalboardings was due to a combination of factors:• In the southern suburbs the loss of the KwinanaFreeway busway during 2006/07 adverselyaffected patronage in the Fremantle-Cockburnand Rockingham-Mandurah contract areas; and• In the northern suburbs the availability ofparking bays at the new train stations inClarkson and Greenwood gave patrons theopportunity to travel by train without usingfeeder buses.These negative trends were partly offset by thepositive result in the Claremont and Belmontcontract areas where route rationalisation andreduced journey times resulted in total boardingsincreasing by 4.8% in 2006/07 following an increaseof 3% in 2005/06.Increased traffi c congestion and the lack ofadequate bus priority measures on major roadsresulting in non-competitive travel times werethe main factors contributing to the reduction inthe rate of growth in bus boardings in 2006/07 ascompared to previous years.Compared to 2005/06, total boardings increased by4.8% following an increase of 4.5% in 2005/06. Therapid growth in patronage was due to:• the expansion of the train fl eet;• the increasing use of three-car and six-car trainsin 2006/07; and• the availability of parking bays at the new trainstations in Clarkson and Greenwood.Regional Town Bus ServicesIn order to provide a more meaningful result inreporting the performance of regional town busservices, the effectiveness indicator for passengersper service kilometre has been separated intointra-town and inter-town components.Intra-town services operate within rural townboundaries, while inter-town services run betweenregional centres.a. Intra-Town Bus Services1.0310.969 0.966 0.9710.932Transperth Train Services4.64 4.564.194.254.11 2003/04 2004/05 2005/06 2006/07 TARGET2006/07Passengers per service kilometre2003/04 2004/05 2005/06 2006/07 TARGET2006/07Passengers per service kilometreThere was an improvement in 2006/07 result ascompared to 2005/06.The 2006/07 result was above the target setfor the year due to total boardings and servicekilometres exceeding target by 5.3% and 1.7%respectively.For regional intra-town services, the result for2006/07 exceeded the target set for the year andimproved on the previous year performance.The increase in passengers per service kilometrefor 2006/07 compared to target was mainly due tothe strong performance of the services in Bunbury,Port Hedland, Albany, Carnarvon, Kalgoorlie, Collie,Esperance and Manjimup.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0763

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007b. Inter-Town Bus Services0.0160.0080.016 0.017 0.0162003/04 2004/05 2005/06 2006/07 TARGET2006/07After a decline in patronage over four years since2000/01, total boardings on the ferry service haveincreased with high rates of growth in 2005/06(9.1%) and 2006/07 (8.5%).While the ferry service has always been popularwith tourists, the turn-around in patronage appearsto be due to the increasing number of commutersfrom South Perth seeking the relative convenienceof a fast ferry trip instead of the congested freeway.Transwa Train ServicesPassengers per service kilometre0.2790.2650.272 0.273 0.274The 2006/07 result was slightly better than boththe target set for 2006/07 and the previous year’sperformance.Transperth Ferry Services13.16 13.0614.5515.8016.382003/04 2004/05 2005/06 2006/07 TARGET2006/07Passengers per service kilometreThe 2006/07 result was slightly below target andslightly above the 2005/06 result.2003/04 2004/05 2005/06 2006/07 TARGET2006/07Passengers per service kilometreTranswa Road Coach Services0.072 0.074 0.074 0.072 0.078The 2006/07 result was below target. In setting thetarget the reduction in service kilometres followingthe termination of the Coode Street service inComo, was over-estimated and the reduction inpatronage was under-estimated. The target assumedtotal boardings of 524,000, service kilometres of32,000 and a target effectiveness indicator of 16.38.However, actual total boardings were 545,357and service kilometres were 34,519 for 2006/07,resulting in the passenger per service kilometre of15.80.2003/04 2004/05 2005/06 2006/07 TARGET2006/07Passengers per service kilometreThe result for 2006/07 was below target becauseof a lower patronage than estimated.64 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2. ACCESSIBLE PUBLICTRANSPORTAccessibility to public transport, in terms ofservice coverage, is measured as the proportionof Property Street Addresses (PSAs) within thePerth Public Transport Area (PPTA) which arewithin 500 metres of a Transperth stop providingan acceptable level of service. The PPTA defi nesthe core operational areas for Transperth services.“Acceptable Service Level” (ASL) is defi ned asan hourly service during the day with at leastthree trips per hour (i.e. at 20 minute intervals)in the peak fl ow direction in the morning and/orafternoon peaks, excluding dedicated school busservices.The indicator uses PSA data from Landgate(formerly Department of Land Information) andservice information and stop location data fromthe Transperth Route Information System (TRIS).The measure demonstrates the extent to whichthe PTA meets its accessibility standards in thePerth metropolitan area.70.6%74.1% 74.0%70.0%2004/05 2005/06 2006/07 TARGET2006/07The proportion of street addresses within the PPTAwhich are within 500 metres of a Transperth stopproviding an acceptable level of serviceThis is a new measure and comparative data for actuals 2003/04is not available.The 2006/07 result demonstrated that thePTA met its accessibility target in the Perthmetropolitan area.There was an increase in both Property StreetAddresses (PSA) and the stop count within thePPTA by 1.7% and 5.9% respectively in 2006/07.Consequently PSAs, less than 500 metres froman ASL stop, increased by 1.6% from 524,054 to532,271 while PSAs, less than 500 metres from anon-ASL stop, increased by 2.5 % from 147,906 to151,548.3. SERVICE RELIABILITYAccording to an independent survey whichmeasured customer satisfaction, service reliabilityis regarded as one of the most signifi cantcharacteristics of a quality service. Service reliabilityis essentially a combination of two main factors,punctuality and consistency.Services are considered to be punctual if theyarrive within a defi ned period of time after thescheduled arrival time. This parameter is referredto as ‘on-time arrival’ and is shown in the table foreach operation.‘ON-TIME ARRIVAL’OPERATIONPARAMETERMetropolitan andRegional Passenger ServicesTransperth Trains 3 minutesTransperth Buses 4 minutesTransperth Ferries 3 minutesCountry Passenger Railand Road Coach ServicesTranswa RailProspector15 minutesAustralind10 minutesAvonLink10 minutesMerredinLink 10 minutesRoad Coaches10 minutesRegional School Bus ServicesRegional school busservicesDrop off no less than10 minutes beforeschool starts and pickup within 10 minutesof school endingThe ‘on-time arrival’ measure demonstrates theextent to which the PTA meets its service reliabilitystandards.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0765

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007Transperth Train Services89.30%94.38%86.93% 86.40%95.00%2003/04 2004/05 2005/06 2006/07 TARGET2006/07Percentage of services arriving within‘on-time arrival’ parameterThe 2006/07 result was below target because ofon-time running delays for the metropolitan trainservices as a result of:• Works and infrastructure changes on the networkand preparation for Southern Suburbs Railway;• Weather issues and increased dwell times duringpeak periods as result of increased patronage; and• New drivers undergoing training on the system.In January 2007, Transperth began using theSmartRider system’s “GPS Reporter” functionalityto check on-time running based on a randomsample of 1% of trips in each of the bus contractareas. This method provides a more accurateindication of service reliability.In 2006/07, on-time running during the fi rst sixmonths averaged 92.6% (based on the physicalchecks) but the average fell to 81.5% during thefollowing six months, when “GPS Reporter” wasused and allowed a more precise capture ofservice reliability. No other factors caused theresult to fall.Transperth Ferry Services98% 98% 98% 100% 98%Transperth Bus Services92.75% 91.50% 91.71%85.93%90.00%2003/04 2004/05 2005/06 2006/07 TARGET2006/07Percentage of services arriving within‘on-time arrival’ parameterThe 2006/07 results refl ected excellent on-timerunning for the ferry service.2003/04 2004/05 2005/06 2006/07 TARGET2006/07Percentage of services arriving within‘on-time arrival’ parameterThe 2006/07 result was below both the target forthe year and the 2005/06 result.Until December 2006, bus on-time running wasmonitored by Transperth inspectors carrying outphysical checks at various locations. The target for2006/07 was based on the results of these physicalchecks.In 2005/06 the on-time arrival parameter wasnot reported as the data provided was based onestimates. The result shown above for 2005/06 istherefore unaudited.The method of measuring on-time runningchanged for ferries during 2006/07. From July2006 to February 2007, Transperth inspectorscarried out a prescribed number of physicalchecks to monitor on-time running. In March2007, Transperth began using “GPS Reporter” tomonitor more accurately on-time running on theferry service.66 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Transwa Rail ServicesIndicators of the ‘on-time arrival’ performance forTranswa rail services are reported separately foreach service.c. AvonLink97% 99% 99% 99%95%a. Prospector89%90%73%77%2003/04 2004/05 2005/06 2006/07 TARGET2006/0744%Percentage of services arriving within‘on-time arrival’ parameter2003/04 2004/05 2005/06 2006/07 TARGET2006/07Percentage of services arriving within‘on-time arrival’ parameterThe graph shows constant good performance inthis service over the last three fi nancial years.This has been mainly due to the short journey timeon predominantly dual track.In spite of an improvement compared to 2005/06,the 2006/07 result was below the target, primarilydue to delays as a result of track works andcrossing of freight trains.Further improvement in on-time running isexpected with the extension of crossing loops andreplacement of wooden sleepers. This work isscheduled to commence midway through 2007/08.d. MerredinLink52%89% 89%95%b. Australind2004/05 2005/06 2006/07 TARGET2006/0788%88%92%90%Percentage of services arriving within‘on-time arrival’ parameter65%The service was introduced in 2004/05, hence no comparative datafor actual 2003/04.2003/04 2004/05 2005/06 2006/07 TARGET2006/07The 2006/07 target was not achieved because ofdiffi culties with the crossing of freight trains andmechanical problems with the new railcars.Percentage of services arriving within‘on-time arrival’ parameterThere was an improvement in the results for2006/07 as compared to last year and the targetfor 2006/07 was exceeded.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0767

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007Transwa Road Coach Services95% 95% 95% 96% 95%2003/04 2004/05 2005/06 2006/07 TARGET2006/07Transwa road coach services on-time running wasconsistent throughout 2006/07 compared with theprevious fi nancial years. It exceeded the target for2006/07.Regional School Bus ServicesThis effectiveness indicator measures school bustimetable reliability for rural mainstream servicesand Special Education School buses operatingin the metropolitan area. The on-time arrivalparameter is to arrive at school no less than 10minutes before school starts and departing within10 minutes of school ending.95%Percentage of services arriving within‘on-time arrival’ parameter82%97% 97%90%2003/04 2004/05 2005/06 2006/07 TARGET2006/07Drop off before school starts and pick upwhen school fi nishesThis effectiveness indicator is calculated using arandom sample which ties in with the inspectionprogram.The result for 2006/07 was above target.YearNumber ofobservations forcompliance with‘on-time’ arrivalObservationsthat werecompliant2004/05 517 4522005/06 1,188 1,1562006/07 1,086 1,048The sample error estimates were within theacceptable tolerance level at the 95% confi dencelevel.The improvements were related to clearerstandards in new contracts and strongercompliance.4. LEVEL OF OVERALLCUSTOMER SATISFACTIONThe percentage of patrons who, overall, weresatisfi ed with the services measures the publicperception of the organisation’s performancein providing a high-quality and attractive publictransport service.The measure for Transperth services is derivedfrom an extensive annual survey conducted byindependent pollsters. The survey, known as the‘Passenger Satisfaction Monitor’ (PSM), providesan objective, unbiased view over time of patrons’overall satisfaction with the system, e.g. safety, ontimerunning, courtesy of staff, service frequencyand station amenities. The information is used byTransperth to develop strategies for improvingservice performance and infrastructure.The pollsters interview a large sample ofpassengers. Interviewers are assigned to variousservices and transit station locations over a fourweek period covering the working week andweekend. This is the most comprehensive publictransport survey of passengers in Australia.68 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Transperth Train ServicesFor the rail PSM, a total of 800 rail patrons weresurveyed. The overall sample comprised of:• Adults aged 18 years or over resident withinthe Perth Metropolitan area;• Current users of Transperth train services(excluding school students); and• Patrons who travel on trains at least once perfortnight.The sample error estimates were within + or - 6%at the 95% confi dence level.The sample error estimates were within + or - 2 to3% at the 95% confi dence level.82% 82% 80% 81% 82%2003/04 2004/05 2005/06 2006/07 TARGET2006/07% of respondents either“Very satisfi ed” or “Satisfi ed”90% 92%89% 87%92%The results showed that the number of users whoexpressed overall satisfaction with Transperth busoperations increased from 80% in 2005/06 to 81%in 2006/07.2003/04 2004/05 2005/06 2006/07 TARGET2006/07% of respondents either“Very satisfi ed” or “Satisfi ed”The results for 2006/07 showed that there wassome dissatisfaction expressed by respondentsdue to the trains being overcrowded during peakperiods and not being on time. The overall rate ofsatisfaction was 87%.Transperth Bus ServicesFor the Transperth bus PSM, a total of 3,064bus patrons were surveyed. The overall samplecomprised of:• Adults aged 18 years or over resident withinthe Perth Bus Contract region;• Current users of Transperth bus services(excluding school students); and• Patrons who travel on bus at least once perfortnight.However, the target of 82% was not achieveddue to one contract area, Morley, recording asignifi cantly lower level of satisfaction (70% in2006/07 compared to 75% in 2005/06) and asignifi cantly higher level of dissatisfaction (25%as compared to 19%) which affected the overallaverage result.Transperth Ferry ServicesFor the ferry PSM, a total of 202 ferry patronswere surveyed. The overall sample comprised of:• Adults aged 18 years or over resident withinthe Perth Metropolitan area; and• Patrons who were users of Transperth Ferryservices and used it more than once a fortnightfor Perth residents and whilst visiting for nonresidentvisitors to Perth. School students wereexcluded from the sample.The sample error estimates were within + or -10%at the 95% confi dence level.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0769

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 200795% 96% 96% 96% 96%2003/04 2004/05 2005/06 2006/07 TARGET2006/07% of respondents either“Very satisfi ed” or “Satisfi ed”The results showed that, overall customers werehighly satisfi ed with the service.Transwa Train and Road CoachServicesAn independent passenger satisfaction survey isundertaken annually for each service: Australind,Prospector, Avonlink, MerredinLink and RoadCoaches.In 2007, a total of 936 country services patronswere surveyed via a self-completion questionnaire.The sample error estimates were within + or – 3to 5% at the 95% confi dence level.5. CUSTOMER PERCEPTIONOF SAFETYSafety perceptions are an important factor in thepublic deciding whether to use public transport.The PTA is continuing to invest capital funds insecurity-related infrastructure and has increasedits security staff to ensure that customers can seethe tangible measures being taken to increase theirsafety.Customer perceptions of safety are measuredthrough data gathered in the Passenger SatisfactionMonitor (PSM) which distinguishes between ontrainand on-bus and at stations, at night and duringthe day for the Transperth train and bus services.Transperth Train Services95%95%96%96%97%95%97%98%98%97%StationsOn-board trains88% 87% 88% 89% 90%Customer perception of safety – Daytime2003/04 2004/05 2005/062006/07 TARGET 2006/07The daytime results for the 2006/07 were close totargets.2003/04 2004/05 2005/06 2006/07 TARGET2006/07% of respondents either“Very satisfi ed” or “Satisfi ed”62%62%63%58%65%79%75%74%71%80%In 2006/07, overall satisfaction with countrypassenger services increased slightly to 89%,compared to 88% in 2005/06, with 46% ofpassengers indicating they were very satisfi ed and43% satisfi ed.StationsOn-board trainsCustomer perception of safety – Night-time2003/04 2004/05 2005/062006/07 TARGET 2006/0770 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

The on-stations and on-board at night time resultsfor 2006/07 PSM were lower than target and theprevious year’s results.The PSM reported that a higher proportion ofrail patrons, compared to that of the previousyear, perceived security to have improved and thatTransperth was perceived to be ‘doing something’to address security concerns.Transperth Bus Services97%95%95%95%95%99%99%98%98%99%compared to 66% the previous year. Thisimprovement was attributed to the increasedsecurity personnel at bus stations. However, 30% ofrespondents indicated that they ‘don’t feel very safe’at that time as compared with 27% the previousyear.There was a signifi cant improvement in theperception of safety on-board buses at night-time- 83% of users indicated they ‘always or usually feelsafe’ as compared to 78% the previous year.Transperth had taken a number of measuresto address the security concerns including anincrease in the security personnel at bus stations/interchanges which may explain the signifi cantimprovement in 2006/07 result.6. LEVEL OF NOTIFIABLEOCCURRENCESAt bus stations/interchangesOn-board busesCustomer perception of safety – Daytime2003/04 2004/05 2005/062006/07 TARGET 2006/07The 2006/07 PSM survey showed that customerperceptions of safety during the daytime at busstations and interchanges remained high at 95%(which was on target) and on-board buses at 98%(slightly below target) respectively.68%67%66%68%67%At bus stations/interchanges2003/04 2004/05 2005/062006/07 TARGET 2006/07The night-time result for bus stations/interchangeswas above target. 68% of respondents indicatedthey ‘always or usually feel safe’ at that time,86%85%78%83%On-board buses85%Customer perception of safety – Night-timeRail SafetyRailway safety incidents are recorded and notifi edto the Offi ce of Rail Safety. These incidents aretermed ‘notifi able occurrences’ and are defi nedin the Rail Safety Regulations 1999 as Category‘A’ (serious injury, death, or signifi cant damage)or Category ‘B’ (incidents that may have thepotential to cause a serious accident) andAustralian Standard “Railway Safety Management”4292 - 2006. Notifi able occurrence reporting is alegislated requirement under the Rail Safety Actfor the accredited owner and operator of a railsystem and therefore form part of the PTA’s safetymanagement system. These do not cover busoperations.The performance measure for Category ‘A’ and‘B’ occurrences is expressed as the number ofoccurrences per million passenger boardings andper million train kilometres. A low rate of incidentsindicates that sound safety procedures and controlsexist and are operating effectively throughout therail system.The benchmark values for Category ‘A’ andCategory ‘B’ incidents are calculated on theprojected estimations of the number of futurepassenger boardings and train kilometres.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0771

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007There were 16 Category ‘A’ notifi able incidents forthe year 2006/07 compared to 18 in the previousyear.0.31Category Aoccurrences per millionpassengers boardingCategory ‘A’ incidents per million passengerboardings were down compared with 2005/06.There were 627 Category ‘B’ notifi able incidentsfor the year 2006/07 compared to 587 in theprevious year.5.350.24Category Aoccurrences per milliontrain kilometresNotifi able occurrences – rail safety12.760.5618.270.472003/04 2004/05 2005/062006/07 Benchmark 2006/0717.740.3014.001.2423.280.9852.122.2067.601.7066.081.2160.00PTA has undertaken a number of initiatives asoutlined below to combat level crossing incidents:• Red light cameras: The PTA is working withthe WA Police to install red light cameras onselected level crossings. The police will managethe infringement and issuing of fi nes process aspart of their existing infringement system;• Level crossing audits: In conjunction with MainRoads Western Australia, the PTA will continueto undertake an audit of all level crossings toidentify defi ciencies in signs and road markings;and• National level crossing behaviour review:The PTA is working with the AustralasianRailway Association (ARA) on a review ofvarious education campaigns to evaluate theireffectiveness.Regional School Bus Services SafetyAccidents attributable to all causes are notifi ed tothe School Bus Team Leader Vehicle Inspector inthe PTA. The performance measure is expressed asthe number of notifi able occurrences (accidents)reported during the school year. A low number ofoccurrences incidents indicates that sound safetyprocedures and controls exist and are being adheredto throughout the regional school bus fl eet.16Category Boccurrences per millionpassengers boardingCategory Boccurrences per milliontrain kilometresNotifi able occurrences – rail safety8121372003/04 2004/05 2005/062006/07 Benchmark 2006/07The Category ‘B’ incidents per passenger boardingsand train kilometre were lower for 2006/07compared to 2005/06.The 2006/07 results for both Category ‘A’ and ‘B’were higher than the benchmark. This was partlydue to the amount of work being carried out onthe rail system during the year and an increase inlevel crossing incidents.2003/04 2004/05 2005/06 2006/07 TARGET2006/07School bus services notifi able occurrences(accidents) reported each school yearThere were 13 ‘on-road’ recorded school busaccidents comprising of 10 minor and 3 majoraccidents during the year.Approximately 69% of the accidents occurredthrough no fault of the school bus driver.72 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

EFFICIENCY INDICATORSCOST PER PASSENGERKILOMETREThis effectiveness indicator measures the costeffi ciency of providing passenger services,expressed as the cost of carrying one passengerone kilometre.Passenger kilometres are currently based onthe zonal distribution of passenger trips and anassumed average trip length for each zone.The indicator measures the cost effi ciency of theservices, i.e. the trend in the cost of carrying onepassenger over one kilometre. A declining trendindicates that the resources used to provide theservices are being utilised in a cost effi cient manner.Transperth Train Services$0.70$0.91$1.05$1.19$1.25• recruitment of transit offi cers, drivers andcustomer service staff for Mandurah Line;• provision of security services for the new SSRstations;• set-up of depots and offi ces on Mandurah Line;and• an increase in capital user charge due to theNew MetroRail (NMR) debt being funded byequity offset by a decrease in interest chargesfollowing the repayment of the NMR debt inSeptember 2006.The increase in passenger kilometres was due tothe following:• an increase of 8% in initial boardings; and• the use of a more accurate average trip lengthfor the school trip (50 cent fare) of around11.3km estimated from SmartRider boardingsdata in 2006/07. Previously the average schooltrip length had been assumed at 10 km. Thenew average trip length was used in thecalculation and therefore contributed to theincrease in train passenger kilometres.Transperth Bus Services2003/04 2004/05 2005/06 2006/07 TARGET2006/07$0.61 $0.63$0.69$0.73$0.65Average cost per passenger kilometreThe 2006/07 result was better than target for theyear due to passenger kilometres being 3.1% abovetarget and total costs (which include expenditureassociated with SSR) being $11.2 million belowbudget.The average cost in 2006/07 was higher thanin 2005/06 in spite of an increase of 9.2% inpassenger kilometres. This was due to total costsincreasing by 22.9% from $262.2 million in 2005/06to $322.3 million in 2006/07. In preparation forthe Southern Suburbs Railway opening in 2007/08,expenditure for 2006/07 was higher than 2005/06on account of:2003/04 2004/05 2005/06 2006/07 TARGET2006/07Average cost per passenger kilometreIn 2006/07 the average cost per passengerkilometre was higher than the target for 2006/07and the 2005/06 actual. That was due to areduction of 3.7% in passenger kilometres between2005/06 and 2006/07 while total costs increased byjust 1.1% from $251.2 million to $254 million overthe same period.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0773

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007The decline in passenger kilometres was due tothe change in the relative share of initial boardingsaccounted for by concession passengers andstudents paying the student fare of 50 cents duringthe school year.In 2005/06, concession passengers on the bussystem accounted for 62.7% of initial boardingsand their average trip length was 8.8 kilometres.Students paying the 50 cent fare accounted for8.8% of initial boardings and their average triplength was assumed at 8.5 kilometres in theabsence of ticketing and survey data.In 2006/07, the share of concession passengersin initial boardings fell to 55.7% and their averagetrip length fell to 8.4 kilometres. The student sharein initial boardings increased to 13.1% while theaverage trip length for the school trip fell to 7.1kilometres. This reduction in the average schooltrip length was based on boardings data from theSmartRider ticketing system which became availablein 2006/07.Transperth Ferry Services$1.59 $1.62$1.49$1.40 $1.38The average cost per passenger kilometres in2006/07 fell by 6% compared to 2005/06 eventhough total costs increased by 4.2% from$734,000 to $765,000. The average cost waslower in 2006/07 due to the increase of 11.1%in passenger kilometres as a result of the 8.3%increase in initial boardings.Transwa Rail Services$0.32 $0.32$0.36 $0.37$0.332003/04 2004/05 2005/06 2006/07 TARGET2006/07Average cost per passenger kilometreThe average cost per passenger kilometre for2006/07 exceeded target by 15.6% due to theincrease in expenditure for the maintenance ofAustralind and Prospector trains.Transwa Road Coach Services$0.19$0.22$0.19 $0.19$0.202003/04 2004/05 2005/06 2006/07 TARGET2006/07Average cost per passenger kilometreThe result in 2006/07 was marginally higher thanthe target but signifi cantly lower than 2005/06.In 2006/07, while total boardings and passengerkilometres both exceeded target by 4.1% and 9.6%respectively, total costs exceeded the budget by10.7%. As a result, the average cost for 2006/07was higher than target. The increase in total costswas due to higher operating costs.2003/04 2004/05 2005/06 2006/07 TARGET2006/07Average cost per passenger kilometreThe average cost was slightly lower than target dueto a reduction in passenger kilometres as a result oflower patronage.74 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Regional School Bus ServicesThe cost effi ciency measure for school bus servicesmeasures the cost of funding student placekilometres provided to meet student requirements.$69.84$78.55$81.96$89.62 $89.442003/04 2004/05 2005/06 2006/07 TARGET2006/07Cost per 1000 student place kilometresThe 2006/07 results was slightly higher than targetand the variance was not material. However, whencompared to 2005/06 actual, the cost for 2006/07was higher due to:• the reduction in place kilometres from847,082,000 in 2005/06 to 806,261,000 in2006/07, partly due to the decrease in theactual number of service days from 189 in2005/06 to 181 in 2006/07;• change in transfer of overhead expenditure to afull cost recovery method in 2006/07; and• additional costs in respect of theimplementation of seatbelts on governmentcontracted school buses in accordance withgovernment policy.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0775

AUDITED KEY PERFORMANCE INDICATORSFOR THE YEAR ENDED 30 JUNE 2007OUTCOME 2:Protection of the long-term functionality of the railcorridor and railway infrastructureEFFECTIVENESSINDICATORThe most signifi cant issue for this outcome is themanagement of the long-term lease of the railfreight infrastructure to WestNet Rail Pty Ltd.WestNet Rail manages and operates the rail freightinfrastructure under the terms of the RailwayInfrastructure Lease. Under the Lease, WestNetRail is the ‘accredited owner’ of the infrastructureas defi ned in the Rail Safety Act 1998. WestNetRail’s holding company Australian Railroad Groupwas acquired during the year by a Babcock andBrown Company. WestNet Rail retains all of its legalresponsibilities under the lease agreement.Under the terms and conditions of the RailwayInfrastructure Lease, an independent inspectionof the railway infrastructure is carried out everyfi ve years. The fi rst independent inspection wascompleted in June 2005.The results of this inspection did not indicate anycause for concern and confi rmed that the railcorridor and infrastructure was being satisfactorilymaintained.COST EFFICIENCYThe cost effi ciency for the management of thelong-term lease of the rail freight infrastructureto WestNet Rail is monitored using the total costof managing the rail corridor and residual freightissues.$51,206$53,354$47,0562003/04 2004/05 2005/06 2006/07 TARGET2006/07Cost of managing rail corridor andresidual freight issues management - ’000sCompared to 2005/06, the total costs in 2006/07increased as a result of an increased equity positionwhich resulted in a higher capital user charge offsetby a reduction of interest due to the repayment ofthe freight debt.The 2006/07 cost was lower compared to targetdue to a change in accounting policy for recognisingthe Freight Network lease income on a straightline basis rather than on a schedule recognising thepresent value principles.$49,723$53,50576 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

financial statements

FINANCIAL STATEMENTS INDEXIncome Statement 80Balance Sheet 81Statement of Changes in Equity 82Cash Flow Statement 83NOTES TO THE FINANCIAL STATEMENTS 841 Australian equivalents to InternationalFinancial Reporting Standards 842 Summary of signifi cant accountingpolicies 843 Judgement made by management inapplying accounting policies 934 Key sources of estimation uncertainty 935 Disclosure of changes in accountingpolicy and estimates 946 Employee benefi t expense 987 Supplies and services 988 Depreciation and amortisation expense 989 Finance costs 9910 Grants and subsidies expense 9911 Capital user charge 9912 Other expenses 9913 User charges and fees 9914 Land rationalisation lease revenue 10015 Operating lease revenue 10016 Commonwealth grants andcontributions 10017 Interest revenue 10018 Other revenue 10019 Net gain/ (loss) on disposal ofnon-current assets 10120 Income from State Government 10121 Restricted cash and cash equivalents 10222 Inventories 10223 Receivables 10224 Amounts receivable for services 10225 Act of Grace Payments 10226 Infrastructure, property, plant,equipment and vehicles 10327 Intangible assets 10528 Impairment of assets 10529 Payables 10530 Borrowings 10531 Provisions 10632 Other current liabilities 10733 Derivatives 10734 Deferred income – operating leases 10835 Equity 10936 Notes to the Cash Flow Statement 11037 Commitments 11138 Contingent liabilities and contingentassets 11239 Remuneration of members of theAccountable Authority and senioroffi cers 11340 Financial instruments 11441 Supplementary fi nancial information 11742 Events occurring after the balancesheet date 11743 Explanatory Statement 11744 Schedule of income and expensesby service 12145 Remuneration of auditor 12246 Correction of error in applyingAASB 117 Leases 12278 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

CERTIFICATION OF FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007The accompanying fi nancial statements of the Public Transport Authority of Western Australiahave been prepared in compliance with the provisions of the Financial Management Act 2006from proper accounts and records to present fairly the fi nancial transactions for the fi nancial yearending 30 June 2007 and the fi nancial position as at 30 June 2007.At the date of signing we are not aware of any circumstances which would render any particularsincluded in fi nancial statements misleading or inaccurate.R WaldockAccountable AuthorityP KingChief Financial Offi cer30 August 2007 30 August 2007PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0779

INCOME STATEMENTFOR THE YEAR ENDED 30 JUNE 2007NOTES2007$0002006$000COST OF SERVICESExpensesEmployee benefi t expense 6 79,736 68,874Supplies and services 7 131,710 98,828Depreciation and amortisation expense 8 85,546 92,477Finance costs 9 62,734 100,047Grants and subsidies 10 249,176 243,341Capital user charge 11 130,340 65,052Energy and fuel 8,883 8,128Land rationalisation expense 4,492 6,223Loss on disposal of non-current assets 19 1,031 83Other expenses 12 9,113 10,933Total cost of services 762,761 693,986IncomeRevenueUser charges and fees 13 105,029 98,727Land rationalisation lease revenue 14 83 83Operating lease revenue 15 5,383 5,383Commonwealth grants and contributions 16 0 210Interest revenue 17 2,341 1,084Other revenue 18 21,999 21,613Total revenue 134,835 127,100Total income other than income from State Government 134,835 127,100NET COST OF SERVICES 627,926 566,886INCOME FROM STATE GOVERNMENTService appropriation 20 649,238 559,824Resources received free of charge 20 2,056 41Contribution - Other Government Agencies 20 17,594 7,592Total income from State Government 668,888 567,457SURPLUS/(DEFICIT) FOR THE PERIOD 40,962 571The Income Statement should be read in conjunction with the accompanying notes.80 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

BALANCE SHEETAS AT 30 JUNE 2007NOTES2007$0002006$000ASSETSCurrent AssetsCash and cash equivalents 36 52,182 1,146Restricted cash and cash equivalents 21 638 694Inventories 22 10,263 7,646Receivables 23 14,270 12,584Total Current Assets 77,353 22,070Non-Current AssetsAmounts receivable for services 24 311,338 224,040Infrastructure, property, plant, equipment and vehicles 26 3,313,331 2,847,108Intangible assets 27 438 735Total Non-Current Assets 3,625,107 3,071,883TOTAL ASSETS 3,702,460 3,093,953LIABILITIESCurrent LiabilitiesPayables 29 64,652 98,877Borrowings 30 222,823 1,122,678Provisions 31 21,880 17,389Other current liabilities 32 727 753Derivatives 33 1,294 996Deferred income operating lease 34 5,466 5,466Total Current Liabilities 316,842 1,246,159Non-Current LiabilitiesBorrowings 30 635,343 598,794Provisions 31 4,781 4,139Deferred income operating lease 34 231,118 236,584Total Non-Current Liabilities 871,242 839,517Total Liabilities 1,188,084 2,085,676NET ASSETS 2,514,376 1,008,277EQUITYContributed equity 35 2,168,892 939,871Reserves 35 263,029 26,913Accumulated surplus 35 82,455 41,493TOTAL EQUITY 2,514,376 1,008,277The Balance Sheet should be read in conjunction with the accompanying notes.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0781

STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2007NOTES2007$0002006$000Balance of equity at start of period 1,008,277 593,932CONTRIBUTED EQUITYBalance at start of period 939,871 530,424Capital contribution 1,316,946 424,947Distributions to owners (87,925) (15,500)Balance at end of period 35 2,168,892 939,871RESERVESAsset Revaluation ReserveBalance at start of the period 26,913 0Revaluation of land 12,316 26,913Revaluation of buildings 7,447 0Revaluation of rolling stock 176,241 0Revaluation of bus infrastructure 20,065 0Revaluation of buses 20,047 0Balance at end of the period 35 263,029 26,913ACCUMULATED SURPLUSBalance at start of period 41,493 63,508Net adjustment on transition to AIFRS 0 (3,854)Change in accounting policy or correctionof prior period error 0 (18,732)Restated balance at start of period 41,493 40,922Surplus/(defi cit) for the period 40,962 571Balance at end of period 35 82,455 41,493Balance of equity at end of period 2,514,376 1,008,277Total income and expense for the period (a) 277,078 27,484(a) The aggregate net amount attributable to each category of equity is: surplus $40,962k plus gains fromasset revaluation reserve $236,116k (2006: surplus $571k plus gains from assets revaluation reserve$26,913k).The Statement of Changes in Equity should be read in conjunction with the accompanying notes.82 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

CASH FLOW STATEMENTFOR THE YEAR ENDED 30 JUNE 2007NOTES2007$0002006$000CASH FLOWS FROM STATE GOVERNMENTService appropriation 561,940 480,341Contribution - Other Government agencies 17,594 7,592Capital contributions 1,316,946 424,947Net cash provided by State Government 1,896,480 912,880Utilised as follows:CASH FLOWS FROM OPERATING ACTIVITIESPaymentsEmployee benefi ts (81,183) (65,831)Supplies and services (140,459) (114,990)Finance costs (72,495) (101,388)Grants and subsidies (253,477) (234,193)Capital user charge (130,340) (64,682)GST payments on purchases (81,669) (92,173)Other payments (7,548) (6,917)ReceiptsUser charges and fees: Transwa 11,115 10,000User charges and fees: Transperth train operations 27,241 26,851User charges and fees: Transperth buses 76,351 68,000Interest received 2,291 833GST receipts on sales 13,843 9,806GST receipts from taxation authority 68,807 79,665Other receipts 10,816 10,801Net cash used in operating activities 36 (556,707) (474,218)CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of non-current physical assets 1,081 299Purchase of non-current physical assets PTA (125,096) (93,344)Purchase of non-current physical assets New MetroRail (301,472) (483,907)Net cash used in investing activities (425,487) (576,952)CASH FLOWS FROM FINANCING ACTIVITIESProceeds from borrowings 258,000 631,361Repayment of borrowings (1,118,024) (488,175)Other repayments (3,282) (7,749)Net cash provided by fi nancing activities (863,306) 135,437Net increase/(decrease) in cash held 50,980 (2,853)Cash and cash equivalents at the beginning of the period 1,840 4,693CASH AND CASH EQUIVALENTS AT THE ENDOF THE PERIOD 36 52,820 1,840The Cash Flow Statement should be read in conjunction with the accompanying notes.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0783

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20071 Australian equivalents to International Financial Reporting StandardsGeneralThe Public Transport Authority of Western Australia (PTA) fi nancial statements for the year ended 30 June2007 have been prepared in accordance with Australian equivalents to International Financial ReportingStandards (AIFRS), which comprise a Framework for the Preparation and Presentation of Financial Statements(the Framework) and Australian Accounting Standards (including the Australian Accounting Interpretations).In preparing these fi nancial statements the PTA has adopted, where relevant to its operations, new and revisedStandards and Interpretations from their operative dates as issued by the AASB and formerly the UrgentIssues Group (UIG).Early adoption of standardsThe PTA cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unlessspecifi cally permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’.No Standards and Interpretations that have been issued or amended but are not yet effective have been earlyadopted by the PTA for the annual reporting period ended 30 June 2007.2 Summary of significant accounting policiesa) General StatementThe fi nancial statements constitute a general purpose fi nancial report which has been prepared in accordancewith the Australian Accounting Standards, the Framework, Statements of Accounting Concepts and otherauthoritative pronouncements of the Australian Accounting Standards Board as applied by the Treasurer’sInstructions. Several of these are modifi ed by the Treasurer’s Instructions to vary application, disclosure, formatand wording.The Financial Management Act and the Treasurer’s Instructions are legislative provisions governing thepreparation of fi nancial statements and take precedence over the Accounting Standards, the Framework,Statements of Accounting Concepts and other authoritative pronouncements of the Australian AccountingStandards Board.Where modifi cation is required and has a material or signifi cant fi nancial effect upon the reported results,details of that modifi cation and the resulting fi nancial effect are disclosed in the notes to the fi nancialstatements.b) Basis of PreparationThe fi nancial statements have been prepared on the accrual basis of accounting using the historical costconvention, modifi ed by the revaluation of land, buildings, rollingstock, vessels, buses, infrastructure and fi nancialasset at fair value through profi t and loss (foreign exchange contracts), which have been measured at fair value.The accounting policies adopted in the preparation of the fi nancial statements have been consistently appliedthroughout all periods presented unless otherwise stated.The fi nancial statements are presented in Australian dollars and all values are rounded to the nearest thousanddollars ($’000).84 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

The judgements that have been made in the process of applying the PTA’s accounting policies that havethe most signifi cant effect on the amounts recognised in the fi nancial statements are disclosed in note 3‘Judgements made by management in applying accounting policies’.The key assumptions made concerning the future, and other key sources of estimation uncertainty at thebalance sheet date that have a signifi cant risk of causing a material adjustment to the carrying amountsof assets and liabilities within the next fi nancial year are disclosed at note 4 ‘Key sources of estimationuncertainty’.c) Reporting EntityThe Public Transport Authority of Western Australia is the reporting entity and there are no other related oraffi liated bodies.d) Contributed EquityUnder UIG 1038 “Contributions by Owners Made to Wholly-Owned Public Sector Entities” transfers inthe nature of equity contributions must be designated by the Government (the owner) as contributions byowners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributionsin the fi nancial statements. Capital contributions (appropriations) are designated as contributions by ownersby TI 955 ‘Contributions by Owners made to wholly Owned Public Sector Entities’ and have been crediteddirectly to Contributed Equity.Transfer of net assets to and from other agencies are designated as contributions by owners where thetransfers are non-discretionary and non-reciprocal. (See note 35 ‘Equity’)e) IncomeRevenue recognitionRevenue is measured at the fair value of consideration received or receivable. Revenue is recognised for themajor business activities as follows:Sale of goodsRevenue is recognised from the sale of goods and disposal of other assets when the signifi cant risks andrewards of ownership control transfer to the purchaser.Rendering of servicesRevenue from services is recognised on delivery of the service to the client except for the following:i) Cash fares collected by contractors delivering bus services to PTA are accounted for at the time thecontract for services invoice is approved for payment.ii) Fares for MultiRider sales are accounted on a regular basis (at least weekly) when cash is receivedfrom sales agents. Unused MultiRider travel entitlements are not recognized as liabilities in the fi nancialstatements. Transperth MultiRider tickets have been discontinued since April 8, 2007 and are no longervalid.InterestRevenue is recognised as the interest accrues.Lease IncomeLease income from operating leases is recognised as income on a straight-line basis over the term of the lease(see notes 15 and 34).PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0785

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007Service AppropriationsService Appropriations are recognised as revenues at nominal value in the period in which the PublicTransport Authority of Western Australia (PTA) gains control of the appropriated funds, which is at the timethose funds are deposited into PTA’s bank account or credited to the holding account held at Treasury.Grants, donations, gifts and other non-reciprocal contributionsRevenue is recognised at fair value when PTA obtains control over the assets comprising the contributions,usually when cash is received.Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value.Contributions of services are only recognised when a fair value can be reliably determined and the serviceswould be purchased if not donated.InfringementsInfringements are recorded on a cash basis.GainsGains may be realised or unrealised and are usually recognised on a net basis. These include gains arising onthe disposal of non-current assets and some revaluations of non-current assets.f) Borrowing CostsAll borrowing costs are recognised as expenses in the period in which they are incurred (see Note 3).g) Infrastructure, Property, Plant and Equipment and VehiclesCapitalisation/Expensing of assetsItems of infrastructure, property, plant and equipment and vehicles costing over $5,000 are recognised asassets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of infrastructure,property, plant and equipment and vehicles costing less than $5,000 are immediately expensed direct to theIncome Statement (other than where they form part of a group of similar items which are signifi cant in total).Initial recognition and measurementAll items of infrastructure, property, plant and equipment and vehicles are initially recognised at cost.For items of infrastructure, property, plant and equipment and vehicles acquired at no cost or for nominalcost, the cost is their fair value at the date of acquisition.Subsequent measurementAfter recognition as an asset, the revaluation model is used for the measurement of land, buildings,infrastructure, rollingstock, vessels and buses, and the cost model for plant and equipment and motor vehicles.Land, buildings and infrastructure are carried at fair value less accumulated depreciation on buildings andinfrastructure and accumulated impairment losses. Plant and equipment and motor vehicles are stated athistorical cost less accumulated depreciation and accumulated impairment losses.Where market-based evidence is available, the fair value of land and buildings is determined on the basis ofcurrent market buying values determined by reference to recent market transactions. When buildings arerevalued by reference to recent market transactions, the accumulated depreciation is eliminated against thegross carrying amount of the asset and the net amount restated to the revalued amount.86 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Where market-based evidence is not available, the fair value of land and buildings is determined on the basisof existing use. This normally applies where buildings are specialised or where land use is restricted. Fair valuefor existing use assets is determined by reference to the cost of replacing the remaining future economicbenefi ts embodied in the asset, i.e. the depreciated replacement cost. Where the fair value of buildings isdependent on using the depreciated replacement cost, the gross carrying amount and the accumulateddepreciation are restated proportionately.The revaluation of land controlled by PTA including metropolitan and regional corridor land, not subjectto commercial lease is provided independently on an annual basis by Landgate (Valuation Services) andrecognised with suffi cient regularity to ensure that the carrying amount does not differ materially from theassets fair value at the balance sheet date.The revaluation of land and buildings which are commercially leased were independently valued at fair valuebased on the capitalised value of current leases. Independent valuations are provided annually.Buildings, bus infrastructure, rollingstock, vessels and buses have been revalued at fair value using depreciatedreplacement cost by independent valuers, engineering and management professionals. Valuations are providedevery 3 to 5 years.Infrastructure is revalued, at least once every fi ve years, to its fair value based on depreciated replacement cost.Construction in progress is recognised at cost.The most signifi cant assumptions in estimating fair value are made in assessing whether to apply the existinguse basis to assets and in determining estimated useful life. Professional judgement by the valuer is requiredwhere the evidence does not provide a clear distinction between market type assets and existing use assets.DepreciationAll non-current assets having a limited useful life are systematically depreciated over their estimated usefullives in a manner which refl ects the consumption of their future economic benefi ts.Land is not depreciated. Depreciation on other assets is calculated on the straight line basis, using rates whichare reviewed annually. Expected useful lives for each class of depreciable asset are:Class of assetBuildingsRollingstockInfrastructurePlant and equipmentBusesMotor vehiclesVesselsOffi ce equipmentSoftwareUseful life30 to 50 years30 years15 to 75 years10 to 15 years7 to 18 years5 to 10 years10 years3 to 5 years3 to 5 yearsAssets under construction are not depreciated until they are available for use.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0787

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007h) Intangible AssetsCapitalisation/Expensing of assetsAcquisitions of intangible assets costing over $5,000 are capitalised and internally generated intangible assetscosting $5,000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over theiruseful life. Costs incurred below this threshold are immediately expensed directly to the Income Statement.All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired atno cost or for nominal cost, the cost is their fair value at the date of acquisition. Computer software that isnot an integral part of the relevant hardware is treated as an intangible asset.The cost model is applied for subsequent measurement requiring the asset to be carried at cost less anyaccumulated amortisation and accumulated impairment losses.Amortisation for intangible assets with fi nite useful lives is calculated for the period of the expected benefi t(estimated useful life) on the straight line basis using rates which are reviewed annually. All intangible assetscontrolled by the PTA have a fi nite useful life and zero residual value.i) Computer softwareSoftware that is an integral part of the related hardware is treated as property, plant and equipment.Software that is not an integral part of the related hardware is treated as an intangible asset and iscapitalised and amortised on a straight line basis over the periods of the expected benefi t, which variesfrom 3 to 5 years. Software costing less than $5,000 is expensed in the year of acquisition.ii) Web site costsCosts in relation to web sites controlled by PTA are charged as expenses in the period in which theyare incurred.i) Impairment of AssetsProperty, plant and equipment, infrastructure and intangible assets are tested for any indication of impairmentat each balance sheet date. Where there is an indication of impairment, the recoverable amount is estimated.Where the recoverable amount is less than the carrying amount, the asset is considered impaired and iswritten down to the recoverable amount and an impairment loss is recognised. As the PTA is a not-for-profi tentity, unless an asset has been identifi ed as a surplus asset, the recoverable amount is the higher of an asset’sfair value less costs to sell and depreciated replacement cost.The risk of impairment is generally limited to circumstances where an asset’s depreciation is materiallyunderstated, where the replacement cost is falling or where there is a signifi cant change in useful life. Eachrelevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation refl ectsthe level of consumption or expiration of asset’s future economic benefi ts and to evaluate any impairmentrisk from falling replacement costs.Intangible assets with an indefi nite useful life and intangible assets not yet available for use are tested forimpairment at each balance sheet date irrespective of whether there is any indication of impairment.The recoverable amount of assets identifi ed as surplus assets is the higher of fair value less costs to selland the present value of future cash fl ows expected to be derived from the asset. Surplus assets carried atfair value have no risk of material impairment where fair value is determined by reference to market basedevidence. Where fair value is determined by reference to the depreciated replacement cost, surplus assetsare at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested forindications of impairments at each reporting date.Refer to note 28 ‘Impairment of Assets’ for the outcome of impairment reviews and testing.88 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

j) LeasesThe PTA’s rights and obligations under fi nance leases, which are leases that effectively transfer to PTAsubstantially the entire risks and benefi ts incident to ownership of the leased items, are initially recognisedas assets and liabilities equal in amount to the present value of the minimum lease payments determinedat the inception of the lease. The assets are disclosed as plant, equipment and vehicles under lease, and aredepreciated to the Income Statement over the period during which PTA is expected to benefi t from use ofthe leased assets. Minimum lease payments are allocated between fi nance costs and reduction of the leaseliability, according to the interest rate implicit in the lease.Finance lease liabilities are allocated between current and non-current components. The principal componentof lease payments due on or before the end of the succeeding year is disclosed as a current liability, and theremainder of the lease liability is disclosed as a non-current liability.The PTA has entered into a number of operating lease arrangements where the lessor effectively retains theentire risks and benefi ts incident to ownership of the items held under the operating leases. Equal instalmentsof the lease payments are charged to the Income Statement over the lease term as this is representative ofthe pattern of benefi ts to be derived from the leased assets.An arrangement comprising a series of lease transactions involving the legal form, but not the economicsubstance of a lease is accounted for as one linked transaction rather than as a lease. See note 26(x).k) Prepaid Lease RevenueThe sale of the Westrail Freight Business on 17 December 2000 included an operating lease of the freightnetwork infrastructure for 49 years between The Western Australian Government Railways Commission(WAGR) – now Public Transport Authority (PTA) and Westnet Rail Pty. The lease rentals were fully prepaid on17 December 2000, and credited to deferred operating lease revenue. 133 grain receival sites were leased fora 99 year period in two tranches in 2003 and 2004. The rental for sites was prepaid and credited to deferredincome operating lease (see note 1(e)).l) Financial InstrumentsThe PTA has three categories of fi nancial instruments:• Loans and receivables (includes cash and cash equivalents, receivables);• Non-trading fi nancial liabilities (includes borrowings, payables); and• Financial asset at fair value through profi t and loss (foreign exchange contracts).Initial recognition and measurement of fi nancial instruments is at fair value which normally equates to thetransaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method.The fair value of short-term receivables and payables is the transaction cost or the face value because thereis no interest rate applicable and subsequent measurement is not required as the effect of discounting is notmaterial.When a foreign exchange contract (FEC) is entered into, no amount is recognised through the IncomeStatement or the Balance Sheet. When the FEC are utilised, the differences between the prevailing spot rateand the original or revised FEC rate are recognised through the Income Statement.At balance sheet date the fair value change in the remaining FEC balance is recognised in the IncomeStatement creating a derivative asset or liability. This is calculated by comparing the original FEC rate and thecurrent forward rate.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0789

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007m) Cash and Cash EquivalentsFor the purpose of the Cash Flow Statement, cash and cash equivalents (and restricted cash and cashequivalents) assets comprise of cash on hand and short-term deposits with original maturities of threemonths or less that are readily convertible to a known amount of cash and which are subject to insignifi cantrisk of changes in value, and bank overdrafts.n) Accrued SalariesAccrued salaries (refer to note 29 ‘Payables’) represent the amount due to staff but unpaid at the end of thefi nancial year, as the end of the last pay period for that fi nancial year does not coincide with the end of thefi nancial year. Accrued salaries are settled within a few days of the fi nancial year end. The PTA considers thecarrying amount approximates net fair value.o) Amounts Receivable for Services (Holding Account)The PTA receives funding on an accrual basis that recognises the full annual cash and non-cash cost ofservices. The appropriations are paid partly in cash and partly as an asset (Holding Account receivable) that isaccessible on the emergence of the cash funding requirement to cover items such as leave entitlements andasset replacement. See also note 20 ‘Income from State Government’ and note 24 ‘Amounts receivable forservices’.p) InventoriesInventories are measured at the lower of cost and net realisable value. Costs are assigned by the methodmost appropriate to each particular class of inventory. Inventory recorded using the inventory control systemis valued at the weighted average cost and the remainder is valued on a fi rst in fi rst out basis.Inventories not held for resale are valued at cost unless they are no longer required, in which case they arevalued at net realisable value. See note 22 ‘Inventories’.q) ReceivablesReceivables are recognised and carried at original invoice amount less an allowance for any uncollectibleamounts (impairment).The collectability of receivables is reviewed on an ongoing basis and any receivables identifi ed as uncollectibleare written off. An allowance for uncollectible amounts is raised when there is objective evidence that PTAwill not be able to collect the debts.The carrying amount is equivalent to fair value as they are generally settled within 30 days. See note 2(l)‘Financial Instruments’ and note 23 ‘Receivables’.r) PayablesPayables, including accruals not yet billed, are recognised when PTA becomes obliged to make futurepayments as a result of a purchase of assets or services.The carrying value is equivalent to fair value as they are generally settled within 30 days. See note 2(l)‘Financial Instruments’ and note 29 ‘Payables’.90 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

s) BorrowingsAll loans are initially recorded at cost, being the fair value of the net proceeds received. Subsequentmeasurement is at amortised cost using the effective interest rate method. See note 2(l) ‘FinancialInstruments’ and note 30 ‘Borrowings’.t) ProvisionsProvisions are liabilities of uncertain timing and amount and are recognised where there is a present legal,equitable or constructive obligation as a result of a past event and when the outfl ow of resources embodyingeconomic benefi ts is probable and a reliable estimate can be made of the amount of the obligation.Provisions are reviewed at each balance date. See note 31 ‘Provisions’.(i) Provisions - Employee Benefi tsAnnual Leave and Long Service LeaveThe liability for annual and long service leave expected to be settled within 12 months after the endof the balance sheet date is recognised and measured at the undiscounted amounts expected to bepaid when the liabilities are settled. Annual and long service leave expected to be settled more than 12months after the end of the balance sheet date is measured at the present value of amounts expectedto be paid when the liabilities are settled. Leave liabilities are in respect of services provided byemployees up to the balance sheet date.When assessing expected future payments consideration is given to expected future wage and salarylevels including non-salary components such as employer superannuation contributions. In addition, thelong service leave liability also considers the experience of employee departures and periods of service.The expected future payments are discounted using market yields at the balance sheet date on nationalgovernment bonds with terms to maturity that match, as closely as possible, the estimated future cashoutfl ows.All annual and unconditional long service leave provisions are classifi ed as current liabilities as the PTAdoes not have an unconditional right to defer settlement of the liability for at least 12 months after thereporting date.Sick LeaveLiabilities for sick leave are recognised when it is probable that sick leave paid in the future will begreater than the entitlement that will accrue in the future.Past history indicates that on average, sick leave taken each reporting period is less than the entitlementaccrued. This is expected to continue in future periods. Accordingly, it is unlikely that existingaccumulated entitlements will be used by employees and no liability for unused sick leave entitlements isrecognised. As sick leave is non-vesting, an expense is recognised in the Income Statement for this leaveas it is taken.SuperannuationThe Government Employees Superannuation Board (GESB) administers the following superannuationschemes.Employees may contribute to the Pension Scheme, a defi ned benefi t pension scheme now closed tonew members, or to the Gold State Superannuation (GSS) Scheme, a defi ned benefi t lump sum schemenow also closed to new members.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0791

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007The PTA has no liabilities under the Pension or the GSS Schemes. The liabilities for the unfundedPension Scheme and the unfunded GSS Scheme transfer benefi ts due to members who transferredfrom the Pension Scheme, are assumed by the Treasurer. All other GSS Scheme obligations are fundedby concurrent contributions made by the PTA to the GESB. The concurrently funded part of the GSSScheme is a defi ned contribution scheme as these contributions extinguish all liabilities in respect of theconcurrently funded GSS Scheme obligations.Employees commencing prior to 16 April 2007 who are not members of either the Pension or theGSS Schemes became non-contributory members of the West State Superannuation Scheme (WSS).Employees commencing employment on or after 16 April 2007 became members of the GESB SuperScheme (GESBS). Both of these schemes are accumulation schemes. The PTA makes concurrentcontributions to GESB on behalf of employees in compliance with the Commonwealth Government’sSuperannuation Guarantee (Administration) Act 1992. These contributions extinguish the liability forsuperannuation charges in respect of the WSS and GESBS schemes. See also note 2(u) ‘Superannuationexpense’.The GESB makes all benefi t payments in respect of the Pension and GSS schemes and is recouped bythe Treasurer for the employer’s share.(ii) Provisions - OtherEmployment On-CostsEmployment on-costs, including payroll tax and workers’ compensation insurance, are not employeebenefi ts and are recognised separately as liabilities and expenses when the employment to which theyrelate has occurred. Employment on-costs are included as part of ‘Other Expenses’ and are not includedas part of the PTA’s ‘Employee benefi ts expense’. The related liability is included in ‘Employment on-costsprovision’ (see notes 6 and 31).Public LiabilityProvision is made to cover for all outstanding public liability claims before 1 July 2006 worth less than $1million. The amount of the provision is the estimated outstanding value of the claims as at the balancesheet date.Workers’ CompensationProvision is made to cover for all outstanding claims from periods before 1 July 1997 and any previousyears fund contribution assessments based on claims experience. The amount of the provision is theestimated outstanding value of claims plus any actuarial assessments of the previous years adjusted fundcontribution as at the balance sheet date.Contaminated SitesProvision is recognised for the sites that are classifi ed as contaminated – remediation requiredor possibly contaminated – investigation required, and where the PTA has a liability in respect ofinvestigation or remediation expenses. Estimates are based on the present value of expected future cashoutfl ows.u) Superannuation ExpenseThe following element is included in calculating the superannuation expense in the Income Statement:i) Defi ned contribution plans – Employer contributions paid to the GSS, the West State SuperannuationScheme (WSS), and the GESB Super Scheme (GESBS).92 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

The superannuation expense does not include payment of pensions to retirees, as this does not constitutepart of the cost of services provided in the current year.The GSS Scheme is a defi ned benefi t scheme for the purposes of employees and whole-of-governmentreporting. However, apart from the transfer benefi t, it is a defi ned contribution plan for agency purposesbecause the concurrent contributions (defi ned contributions) made by the agency to GESB extinguishes theagency’s obligations to the related superannuation liability.v) Resources Received Free of Charge or for Nominal CostResources received free of charge or for nominal cost which can be reliably measured are recognised asrevenues and as assets or expenses as appropriate, at fair value.w) Comparative FiguresComparative fi gures are, where appropriate, reclassifi ed to be comparable with the fi gures presented in thecurrent fi nancial year.x) Foreign Currency TranslationTransactions denominated in a foreign currency are translated at the rates in existence at the dates of thetransactions. Foreign currency receivables and payables are translated at exchange rates current at balancesheet date. Exchange gains and losses are brought to account in determining the result for the year.3 Judgement made by management in applying accounting policiesThe judgements that have been made in the process of applying accounting policies that have the mostsignifi cant effect on the amounts recognised in the fi nancial statements include:• The PTA has made a determination to expense all borrowing costs associated with the construction ofcapital projects such as New MetroRail as allowed by the alternative accounting treatment under AASB123 ‘Borrowing Costs’.4 Key sources of estimation uncertaintyThe key assumptions made concerning the future, and other key sources of estimation uncertainty at thereporting date that have a signifi cant risk of causing a material adjustment to the carrying amounts of assetsand liabilities within the next fi nancial year include:Discount rates used in estimating provisionsThe PTA is using market yields on national government bonds with terms to maturity that match, as closelyas possible, to the estimated future cash outfl ows to discount the estimated value of the provisions forannual and long service leave. Fluctuations in the government bond yields may impact the provision forannual and long service leave.Estimating useful life of key assetsThe useful lives are estimated having regard to such factors as asset maintenance, rate of technical andcommercial obsolescence, asset usage. The useful lives of key assets are reviewed annually.The estimated useful life of Freight Network Infrastructure is based on the term of the freight lease.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0793

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20075 Disclosure of changes in accounting policy and estimatesChange in accounting policyThe PTA recognises the annual rental from a prepaid 49 years operating lease as revenue on a straight-linebasis.In its fi nancial statements for periods beginning before 1 July 2006, PTA recognised the annual rental froma prepaid 49 years operating lease as revenue, together with an associated interest expense, in accordancewith net present value principles.This change in accounting policy was due to applying AASB 117(50) Leases which requires operating leaseincome to be recognised on a straight-line basis over the term of the lease unless other systematic basis ismore representative of the time pattern in which use benefi t derived from the asset is diminished.The benefi ts of the use of the assets are constant over time. Accordingly straight-line recognition has beenadopted.The change in accounting policy was recognised retrospectively in accordance with the transitionalprovisions of the standard, and comparatives have been restated. See Note 46 ‘Correction of error inapplying AASB 117 Leases’.Initial application of an Australian Accounting StandardThe PTA has applied the following Australian Accounting Standards and Australian AccountingInterpretations effective for annual reporting periods beginning on or after 1 July 2006:1. AASB 2005-9 ‘Amendments to Australian Accounting Standards [AASB 4, AASB 1023, AASB 139& AASB 132]’ (Financial guarantee contracts). The amendment deals with the treatment of fi nancialguarantee contracts, credit insurance contracts, letters of credit or credit derivative default contracts aseither an “insurance contract” under AASB 4 ‘Insurance Contracts’ or as a “fi nancial guarantee contract”under AASB 139 ‘Financial Instruments: Recognition and Measurement’. The PTA does not currentlyundertake these types of transactions, resulting in no fi nancial impact in applying the Standard.2. UIG Interpretation 4 ‘Determining whether an Arrangement Contains a Lease’ as issued in June2005. This Interpretation deals with arrangements that comprise a transaction or a series of linkedtransactions that may not involve a legal form of a lease but by their nature are deemed to be leases forthe purposes of applying AASB 117 ‘Leases’. At balance sheet date, the PTA has not entered into anyarrangements as specifi ed in the Interpretation, resulting in no impact in applying the Interpretation.3. UIG Interpretation 9 ‘Reassessment of Embedded Derivatives’. This Interpretation requires anembedded derivative that has been combined with a non-derivative to be separated from the hostcontract and accounted for as a derivative in certain circumstances. At balance sheet date, the PTA hasnot entered into any contracts as specifi ed in the Interpretation, resulting in no impact in applying theInterpretation.The following Australian Accounting Standards and Interpretations are not applicable to the Authority asthey have no impact or do not apply to not-for-profi t entities:2005-1 ‘Amendments to Australian Accounting Standard’ (AASB 139 – Cash fl ow hedge accounting offorecast intragroup transactions)2005-5 ‘Amendments to Australian Accounting Standards [AASB 1 & AASB 139]’94 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2006-1 ‘Amendments to Australian Accounting Standards [AASB 121]’2006-3 ‘Amendments to Australian Accounting Standards [AASB 1045]’2006-4 ‘Amendments to Australian Accounting Standards [AASB 134]’2007-2 ‘Amendments to Australian Accounting Standards arising fromAASB Interpretation 12 [AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 &AASB 139]’ – paragraph 9UIG 5 ‘Rights to Interests arising from Decommissioning, Restoration and Environmental RehabilitationFunds’UIG 6 ‘Liabilities arising from Participating in a Specifi c Market – Waste Electrical and Electronic Equipment’UIG 7 ‘Applying the Restatement Approach under AASB 129 Financial Reporting in Hyperinfl ationaryEconomies’UIG 8 ‘Scope of AASB 2’Future impact of Australian Accounting Standards not yet operativeThe PTA cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretationunless specifi cally permitted by TI 1101 ‘Application of Australian Accounting Standards and OtherPronouncements’. Consequently, the PTA has not applied the following Australian Accounting Standards andAustralian Accounting Interpretations that have been issued but are not yet effective. These will be appliedfrom their application date:1. AASB 7 ‘Financial Instruments: Disclosures’ (including consequential amendments in AASB 2005-10‘Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]’). This Standard requires new disclosuresin relation to fi nancial instruments. The Standard is considered to result in increased disclosures, bothquantitative and qualitative of the PTA’s exposure to risks, enhanced disclosure regarding componentsof the PTA’s fi nancial position and performance, and possible changes to the way of presenting certainitems in the fi nancial statements. The PTA does not expect any fi nancial impact when the Standard isfi rst applied. The Standard is required to be applied to annual reporting periods beginning on or after1 January 2007.2. AASB 2005-10 ‘Amendments to Australian Accounting Standards (AASB 132, AASB 101, AASB 114,AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023, & AASB 1038)’. The amendmentsare as a result of the issue of AASB 7 ‘Financial Instruments: Disclosures’, which amends the fi nancialinstrument disclosure requirements in these standards. The PTA does not expect any fi nancial impactwhen the Standard is fi rst applied. The Standard is required to be applied to annual reporting periodsbeginning on or after 1 January 2007.3. AASB 101 ‘Presentation of Financial Statements’. This Standard was revised and issued in October2006 so that AASB 101 has the same requirements as IAS 1 ‘Presentation of Financial Statements’ (asissued by the IASB) in respect of for-profi t entities. The PTA is a not-for-profi t entity and consequentlydoes not expect any fi nancial impact when the Standard is fi rst applied. The Standard is required to beapplied to annual reporting periods beginning on or after 1 January 2007.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0795

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20074. AASB 2007-4 ‘Amendments to Australian Accounting Standards arising from ED 151 and OtherAmendments (AASB 1, 2, 3, 4, 5, 6, 7, 102, 107, 108, 110, 112, 114, 116, 117, 118, 119, 120, 121, 127,128, 129, 130, 131, 132, 133, 134, 136, 137, 138, 139, 141, 1023 & 1038)’. This Standard introducespolicy options and modifi es disclosures. These amendments arise as a result of the AASB decision that,in principle, all options that currently exist under IFRSs should be included in the Australian equivalentsto IFRSs and additional Australian disclosures should be eliminated, other than those now consideredparticularly relevant in the Australian reporting environment. The Department of Treasury and Financehas indicated that it will mandate to remove the policy options added by this amending Standard. Thiswill result in no impact as a consequence of application of the Standard. The Standard is required to beapplied to annual reporting periods beginning on or after 1 July 2007.5. AASB 2007-5 ‘Amendment to Australian Accounting Standard – Inventories Held for Distribution byNot-for-Profi t Entities (AASB 102)’. This amendment changes AASB 102 ‘Inventories’ so that inventoriesheld for distribution by not-for-profi t entities are measured at cost, adjusted when applicable for anyloss of service potential. The PTA does not have any inventories held for distribution so does notexpect any fi nancial impact when the Standard is fi rst applied. The Standard is required to be applied toannual reporting periods beginning on or after 1 July 2007.6. AASB Interpretation 4 ‘Determining whether an Arrangement Contains a Lease [revised]’. ThisInterpretation was revised and issued in February 2007 to specify that if a public-to-private serviceconcession arrangement meets the scope requirements of AASB Interpretation 12 ‘Service ConcessionArrangements’ as issued in February 2007, it would not be within the scope of Interpretation 4. Atbalance sheet date, the PTA has not entered into any arrangements as specifi ed in the Interpretationor within the scope of Interpretation 12, resulting in no impact when the Interpretation is fi rst applied.The Interpretation is required to be applied to annual reporting periods beginning on or after 1 January2008.7. AASB Interpretation 12 ‘Service Concession Arrangements’. This Interpretation was issued in February2007 and gives guidance on the accounting by operators (usually a private sector entity) for publicto-privateservice concession arrangements. It does not address the accounting by grantors (usuallya public sector entity). It is currently unclear as to the application of the Interpretation to the PTA ifand when public-to-private service concession arrangements are entered into in the future. At balancesheet date, the PTA has not entered into any public-to-private service concession arrangementsresulting in no impact when the Interpretation is fi rst applied. The Interpretation is required to beapplied to annual reporting periods beginning on or after 1 January 2008.8. AASB Interpretation 129 ‘Service Concession Arrangements: Disclosures [revised]’. This Interpretationwas revised and issued in February 2007 to be consistent with the requirements in AASB Interpretation12 ‘Service Concession Arrangements’ as issued in February 2007. Specifi c disclosures about serviceconcession arrangements entered into are required in the notes accompanying the fi nancial statements,whether as a grantor or an operator. At balance sheet date, the PTA has not entered into any public-toprivateservice concession arrangements resulting in no impact when the Interpretation is fi rst applied.The Interpretation is required to be applied to annual reporting periods beginning on or after 1 January2008.96 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

9. AASB 2007-6 ‘Amendments to Australian Accounting Standards arising from [AASB 123] [AASB 1,AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]’. The revisionof AASB 123 necessitates consequential amendments to the pronouncements listed above. Theamendments principally remove references to expensing borrowing costs on qualifying assets, asAASB 123 was revised to require such borrowing costs to be capitalised. This Standard is applicable toannual reporting periods beginning on or after 1 January 2009, with early adoption permitted for annualreporting periods beginning on or after 1 January 2005 but before 1 January 2009, provided AASB 123 isalso adopted for the same period. This Standard is applied when AASB 123 is applied. The PTA has notyet adopted the AASB 123 and will continue expensing the borrowing costs until the standard comesinto force.10. AASB 2007-7 ‘Amendments to Australian Accounting Standards [AASB 1, AASB 2, AASB 4, AASB 5,AASB 107 & AASB 128]’. These amendments follow the issuance, in April 2007, of AASB 2007-4Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments. That Standardimplemented the AASB’s decision that, in principle, all options that currently exist under InternationalFinancial Reporting Standards should be included in the Australian equivalents to IFRSs and additionalAustralian disclosures should be eliminated, other than those considered particularly relevant in theAustralian reporting environment.In addition to editorial amendments, this Standard removes the encouragement in paragraph Aus12.1of AASB 107 to adopt a particular format for the cash fl ow statement, as it is no longer relevant dueto the amendments made to AASB 107 by AASB 2007-4. The superseded implementation guidanceaccompanying AASB 4 is also deleted. The Department of Treasury and Finance has indicated that it willmandate to remove the policy options added by the AASB 2007-4 amending Standard. This will resultin no impact as a consequence of application of the Standard. The Standard is required to be applied toannual reporting periods beginning on or after 1 July 2007.The following Australian Accounting Standards and Interpretations are not applicable to the PTA as theywill have no impact or do not apply to not-for-profi t entities:AASB 8 ‘Operating Segments’AASB 1049 ‘Financial Reporting of General Government Sectors by Governments’AASB 2007-1 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 11[AASB 2]’AASB 2007-2 ‘Amendments to Australian Accounting Standards arising from AASB Interpretation 12[AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 & AASB 139]’ – paragraphs1 to 8AASB 2007-3 ‘Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6,AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038]’Interpretation 10 ‘Interim Financial Reporting and Impairment’Interpretation 11 ’AASB 2 – Group and Treasury Share Transactions’PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0797

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20072007$0002006$0006 Employee benefit expenseWages and salaries (i) 65,960 56,407Superannuation - defi ned contribution plans (ii) 6,547 5,541Long service leave (iii) 1,266 1,855Annual leave (iii) 5,963 5,07179,736 68,874i) Includes the value of the fringe benefi t to the employee plus the fringe benefi t tax component.ii) Defi ned contribution plans include West State, GESB Super and Gold State (contributions paid).iii) Includes a superannuation contribution component.Employment on-costs such as workers’ compensation insurance and payroll tax are included at note 12‘Other Expenses’. The employment on-cost liability is included at note 31 ‘Provisions’.7 Supplies and servicesConsultants and contractors 85,876 61,762Communications 987 1,618Consumables 6,964 5,648Travel 6,524 7,047Materials 15,589 12,506Other 15,770 10,247131,710 98,8288 Depreciation and amortisation expenseDepreciationBuildings 3,034 3,306Freight Network Infrastructure 6,608 6,380Rollingstock 17,347 13,165Railway infrastructure 31,465 41,573Plant, equipment and motor vehicles 953 1,244Bus infrastructure 4,011 4,215Vessels 112 112Buses 19,316 18,248Total depreciation 82,846 88,243AmortisationIntangible assets 401 640Leased railcars 2,299 3,594Total amortisation 2,700 4,234Total depreciation and amortisation 85,546 92,47798 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007$0002006$0009 Finance costsInterest expense on Western Australian Treasury Corporation loans 60,806 99,748Interest expense on Commonwealth loans 248 269Net change in fair value of fi nancial assets designated at fair valuethrough profi t and loss 1,648 0Finance lease fi nance charges 32 3062,734 100,04710 Grants and subsidies expenseBus operators 164,654 159,918Ferry services 589 558Regional bus services 11,688 11,038Student fare concessions 3,902 3,191Grant to local government 0 1,165School bus services 68,343 67,471249,176 243,34111 Capital user charge 130,340 65,052The charge was a levy applied by Government for the use of its capital. In 2006/07, the fi nal year in which thecharge was levied, a single payment was made equal to the appropriation for 2006/07.12 Other expensesEmployment on-costs (i) (136) 346Payroll tax 4,172 3,741Workers’ compensation 2,921 3,156Notional charge for land information provided by Landgate 2,048 41Advice on Building Cost Index provided by Department of Housing and Works 8 0Contribution to Stubbs Terrace cycle path to City of Subiaco 100 0Contribution to Main Roads WA for the South Street bus lane 0 3,000Contribution to City of Joondalup for car parking 0 6499,113 10,933(i) Includes workers’ compensation insurance and payroll tax relating to annual and long service leave. The corresponding liability is includedat note 31 ‘Provisions’. Superannuation contributions accrued as part of the provision for leave are employee benefi ts and are not included inemployment on-costs.13 User charges and feesTransperth system revenue 94,007 88,424School bus services revenue 1,295 1,042Country passenger operations revenue 9,727 9,261105,029 98,727PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/0799

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20072007$0002006$00014 Land rationalisation lease revenueRental income from land rationalisation 83 83A 99 year operating lease for 118 grain receival sites was entered into with Co-operative Bulk Handling(CBH) in 2003. Rental Income for 99 years of $7.45 million was received in full at the commencement ofthe lease, and is accounted for as revenue over the 99 year lease period, with the prepaid portion shown asdeferred income (see Note 34).A further 99 year operating lease for 15 grain receival sites was entered into with CBH in 2004. RentalIncome for 99 years of $775,000 was received in full at the commencement of the lease, and is accountedfor as revenue over the 99 year lease period, with the prepaid portion shown as deferred income(see Note 34).15 Operating lease revenueRental income from Freight Network Infrastructure 5,383 5,38316 Commonwealth grants and contributionsDepartment of Environment and Heritage 0 2100 21017 Interest revenueInterest Revenue 2,341 1,084Interest revenue is received quarterly from Department of Treasury and Finance calculated on the dailybalance held on the interest bearing bank account.18 Other revenueRents and leases 7,576 7,157Advertising income 3,911 3,465Parking and infringements 2,254 1,872Foreign Exchange Gain 0 1,260External works 4,474 1,222Marketing 1,548 658Liquidated damages 0 44Land sales 0 2,899Contribution from Town of Victoria Park 0 750SmartRider card sales 964 43Miscellaneous 1,272 2,24321,999 21,613100 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007$0002006$00019 Net gain/ (loss) on disposal of non-current assetsCost of disposal of non-current assetsBuildings 290 0Land 0 50Buses 1,716 387Other 143 168Proceeds from disposal of non-current assetsBuildings 359 0Land 0 339Buses 759 183Other 0 0Net gain/(loss) on disposal of non-current assets (1,031) (83)20 Income from State GovernmentAppropriation received during the year:Service appropriations (i) 649,238 559,824Resources received free of charge (ii)Landgate 2,048 41Department of Housing and Works 8 02,056 41Contribution - Other Government AgenciesDepartment for Planning and Infrastructure:Funding for CAT bus replacement and new CAT depot 992 7,592Grant for the North Greenbushes project 13,150 0Main Roads WA - New MetroRail additional bridge and road works 3,452 017,594 7,592668,888 567,457(i) Service appropriations are accrual amounts refl ecting the full cost of services delivered. The appropriation revenue comprises a cashcomponent and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increasein leave liability during the year.(ii) Where assets or services have been received free of charge or for nominal consideration, the PTA recognises revenues (except where thecontribution of assets or services is in the nature of contributions by owners, in which case the PTA shall make a direct adjustment to equity)equivalent to the fair value of the assets and/or the fair value of those services that can be reliably determined and which would have beenpurchased if not donated, and those fair values shall be recognised as assets or expenses, as applicable.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07101

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20072007$0002006$00021 Restricted cash and cash equivalentsContractors’ deposits 508 459Railway Servants’ Benefi t Fund 130 235638 694Contractors’ deposits are held by the PTA as security for contractor performance according to the termsand conditions of the contracts established with each contractor. Generally, the contracts require that thesedeposits must be maintained intact by the PTA for repayment to the contractor on successful performanceof contract conditions.The Railway Servants’ Benefi t Fund is to be used only for the purpose of providing welfare to staff.22 InventoriesCurrentInventories not held for resale:Maintenance spares - at cost 10,263 7,777Less provision for obsolescence 0 (131)10,263 7,64623 ReceivablesCurrentReceivables 6,579 3,122Allowance for impairment of receivables (47) (104)GST receivable 6,819 8,942Other receivables – external works 323 6413,674 12,024Prepayments 596 56014,270 12,58424 Amounts receivable for servicesNon-current 311,338 224,040311,338 224,040This asset represents the non-cash component of service appropriations. It is restricted in that it can only beused for asset replacement or payment of leave liability.25 Act of Grace PaymentsFive Act of Grace payments made pursuant to authorisationsgiven under Section 80(1) of the Financial Management Act 2006.(2006: 11payments) 37 223102 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

26 Infrastructure, property, plant, equipment and vehicles2007 2007 2007 2007 2006 2006 2006 2006Cost$000At FairValue$000Accumulateddepreciation$000Carryingamount asat 30 June2007$000Cost$000At FairValue$000Accumulateddepreciation$000Carryingamount asat 30 June2006$000Owned Assets:Land (i) 0 213,620 0 213,620 0 199,984 0 199,984Buildings (ii) 0 164,754 111,383 53,371 0 54,925 6,611 48,314Freight NetworkInfrastructure (iii) 0 300,885 23,850 277,035 0 300,885 17,242 283,643Rollingstock (iv), (x) 0 933,124 333,964 599,160 0 391,611 28,791 362,820Railwayinfrastructure (v) 0 925,364 106,890 818,474 0 745,721 73,459 672,262Plant, equipmentand motor vehicles 7,738 0 3,571 4,167 0 7,061 3,409 3,652Bus infrastructure (vi) 0 173,815 81,535 92,280 0 74,177 12,451 61,726Vessels (iv) 0 1,850 1,850 0 0 576 464 112Buses (iv) 0 529,676 314,626 215,050 0 225,287 55,647 169,640Leased Assets: (vii)Railcars 68 0 12 56 0 65,828 10,782 55,046Constructionin progress (viii) 1,040,118 0 0 1,040,118 989,909 0 0 989,909(ix)(ix)TOTAL 1,047,924 3,243,088 977,681 3,313,331 989,909 2,066,055 208,856 2,847,108(i) Land controlled by the PTA has been revalued as at 1 July 2006 by Landgate (Valuation Services) and Burgess Rawson. The valuations wereperformed during the year ended 30 June 2006 and recognised at 30 June 2007. The fair value was determined by reference to market values.See note 2g.To ensure the valuations provided by Valuation Services were compliant at 30 June 2007 with the fair value requirements under AASB 116,Valuation Services provided the Department of Treasury and Finance (DTF) with information that tracked the general movement in the marketvalue of land and in building construction costs from the 1 July 2006 (the date of valuation) to 31 March 2007. DTF reviewed the informationand determined that the valuations provided by Valuation Services (as at 1 July 2006) were compliant with fair value requirements for 30 June2007 reporting without further adjustment by reference to market values based on existing use.Land and buildings which are commercially leased were independently valued on the capitalised value of current lease by Burgess Rawson. Thevaluations were performed during the year ended 30 June 2006 and recognised at 30 June 2007.(ii) Buildings have been revalued in accordance with independent valuations by Burgess Rawson. The methodology adopted was depreciatedreplacement cost. The effective date of valuation is 30 June 2007.(iii) Freight network infrastructure was recognised at fair value on the 1 July 2003 based on the value of the unearned income on the prepaidoperating lease of the asset.(iv) Rollingstock, vessels and buses have been revalued by PTA’s engineering and management professionals and Third party vendors based ondepreciated replacement cost with a modern equivalent asset capable of delivering the same service potential. The effective date of valuation is30 June 2007.(v) Railway infrastructure was last revalued on the 1 July 2003. Railway infrastructure is scheduled for revaluation in 2007/08.(vi) Bus infrastructure has been revalued in accordance with independent valuations by Ralph Beattie Bosworth. The methodology adopted hasbeen depreciated replacement cost. The effective date of valuation is 30 June 2007.(vii) For leased assets the fair value has been deemed to be their cost as at 30 June 2007.(viii) Construction in progress is valued at cost.(ix) In the current year PTA adopted the gross basis of accounting for accumulated depreciation. On the establishment of PTA on 1 July 2003the net basis of accounting for accumulated depreciation was used.(x) Some rollingstock is subject to an arrangement, involving a series of leases, prepayment and deposit transactions. The arrangement isaccounted for as one linked transaction in accordance with its economic substance. The arrangement (i) does not restrict PTA’s use of rollingstock, (ii) has a term of between 13 and 19 years, and (iii) includes options allowing PTA to purchase the rollingstock on certain specifi ed dates.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07103

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007Reconciliations of the carrying amounts of infrastructure, property, plant, equipment and vehicles at thebeginning and end of the current fi nancial year are set out below.CarryingCarryingamount atamount atthe start of Revaluation the end of2007 the year Additions Transfers Increments Disposals Depreciation the yearOwned Assets:Land 199,984 1,320 0 12,316 0 0 213,620Buildings 48,314 0 934 7,447 (290) (3,034) 53,371Freight NetworkInfrastructure 283,643 0 0 0 0 (6,608) 277,035Rollingstock 362,820 0 77,506 176,241 (60) (17,347) 599,160Railway infrastructure 672,262 124 177,633 0 (80) (31,465) 818,474Plant, equipment andmotor vehicles 3,652 344 1,127 0 (3) (953) 4,167Bus infrastructure 61,726 1,430 13,070 20,065 0 (4,011) 92,280Vessels 112 0 0 0 0 (112) 0Buses 169,640 0 46,395 20,047 (1,716) (19,316) 215,050Leased assetsLeased Railcars 55,046 0 (52,691) 0 0 (2,299) 56Constructionin progress 989,909 402,108 (351,899) 0 0 0 1,040,118(i)TOTAL 2,847,108 405,326 (87,925) 236,116 (2,149) (85,145) 3,313,331(i) On the 28 June 2007 the PTA recognised transferred assets to Main Roads WA for road and construction works of the Mt Henry’s bridge.CarryingCarryingamount atamount atthe start ofthe end of2006 the year Additions Revaluation Disposals Depreciation the yearOwned Assets:Land 173,121 0 26,913 (50) 0 199,984Buildings 34,479 17,141 0 0 (3,306) 48,314Freight NetworkInfrastructure 239,436 50,587 0 0 (6,380) 283,643Rollingstock 270,061 106,005 0 (81) (13,165) 362,820Railway infrastructure 607,534 106,308 0 (7) (41,573) 672,262Plant, equipment andmotor vehicles 3,939 989 0 (32) (1,244) 3,652Bus infrastructure 65,487 501 0 (47) (4,215) 61,726Vessels 224 0 0 0 (112) 112Buses 162,123 26,152 0 (387) (18,248) 169,640Leased assetsLeased Railcars 58,640 0 0 0 (3,594) 55,046Constructionin progress 744,133 245,776 0 0 0 989,909TOTAL 2,359,177 553,459 26,913 (604) (91,837) 2,847,108104 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007$0002006$00027 Intangible assetsSoftware - at cost 2,641 2,602Accumulated amortisation (2,203) (1,867)438 735Reconciliations of the carrying amounts of intangibles at the beginning and end of the current fi nancial yearare set out below.Carrying amount at start of the year 735 754Additions 104 621Amortisation expense (401) (640)Carrying amount at end of the year 438 73528 Impairment of assetsThere are no indications of impairment of property, plant and equipment, infrastructure and intangible assetsat 30 June 2007.PTA held no goodwill or intangible assets with an indefi nite useful life during the reporting period and atbalance sheet date there were no intangible assets not yet available for use.29 PayablesCurrentTrade payables 3,041 8,952Accrued expenses - operational 46,813 65,871Accrued expenses - salaries 3,948 2,162Accrued expenses - interest 9,812 21,221Other payables 1,038 67164,652 98,87730 Borrowings(a) CurrentWestern Australian Treasury Corporation Loans 222,440 1,119,396Finance lease liability (i) 0 2,899Commonwealth Loans 383 383222,823 1,122,678(b) Non-CurrentWestern Australian Treasury Corporation Loans 631,851 594,920Commonwealth Loans 3,492 3,874635,343 598,794(i) Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.The carrying amounts of non-current assets leased as security are:Railcars 0 36,841PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07105

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20072007$0002006$00031 ProvisionsCurrentEmployee benefi ts provisionAnnual leave(a) 8,007 6,980Long service leave(b) 6,226 5,69914,233 12,679Other provisionsPublic liability provision 460 443Workers compensation 3,774 3,075Contaminated Sites 2,284 0Employment on-costs(c) 1,129 1,1927,647 4,71021,880 17,389Non-CurrentEmployee benefi ts provisionLong service leave(b) 3,616 3,752Deferred salary scheme 42 303,658 3,782Other provisionsContaminated Sites 842 0Employment on-costs(c) 281 3571,123 3574,781 4,139a) Annual leave has been classifi ed as current as there is no unconditional right to defer settlement for atleast 12 months after balance sheet date. Assessments indicate that actual settlement of liabilities willoccur as follows:Within 12 months of balance sheet date 5,319 4,141More than 12 months after balance sheet date 2,688 2,8398,007 6,980b) Long service liability has been classifi ed as current where there is no unconditional right to defersettlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement ofthe liabilities will occur as follows:Within 12 months of balance sheet date 885 709More than 12 months after balance sheet date 8,957 8,7429,842 9,451c) The settlement of annual and long service leave liabilities gives rise to the payment of employment oncostsincluding payroll tax and workers’ compensation premiums. The provision is the present value ofexpected future payments. The associated expense is included under note 12 ‘Other expenses’.106 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007$0002006$000Movements in Other ProvisionsMovements in each class of provisions during the fi nancial year, other than employee benefi ts, are set outbelow.Public liability provisionCarrying amount at the start of the year 443 557Additional provisions recognised 1,288 705Payments/other sacrifi ces of economic benefi t (1,271) (819)Carrying amount at the end of the year 460 443Workers’ compensation provisionsCarrying amount at the start of the year 3,075 3,318Additional provisions recognised 2,952 3,155Payments/other sacrifi ces of economic benefi t (2,253) (3,398)Carrying amount at the end of the year 3,774 3,075Employment on-cost provisionCarrying amount at the start of the year 1,549 1,166Additional provisions recognised 385 988Payments/other sacrifi ces of economic benefi t (524) (605)Carrying amount at the end of the year 1,410 1,549Contaminated Sites ProvisionCarrying amount at the start of the year 0 0Additional provisions recognised 3,126 0Payments/other sacrifi ces of economic benefi t 0 0Carrying amount at the end of the year 3,126 0Provision has been established to cover for the costs related to 15 contaminated sites.32 Other current liabilitiesContractors’ deposits 508 459Payments held in suspense 89 59Railway Servants’ Benefi t Fund 130 235727 75333 DerivativesForeign exchange contracts 1,294 9961,294 996The PTA has an exposure to changes in foreign exchange rates resulting from the bus replacement program.This program requires payment for bus chassis to be made in Euros. The PTA uses forward exchangecontracts in Euros to hedge the risk.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07107

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007The PTA has also used forward exchange contracts in Swiss Francs (CHF) in order to hedge the risk ofchanges in foreign exchange rates for the purchase of ticket vending machines.At the balance sheet date the net fair value of these contracts was a liability of $1,294k (2006 - $996k)comprising assets of $28,057k (2006 - $13,630k) and liabilities of $29,351k (2006 - $14,626k).At balance sheet date, the details of outstanding foreign exchange contracts are:2007$000Sell Australian Dollars2006$0002007 2006Average Exchange RateBuy EuroMaturity0-6 months 588 8,469 0.5418 0.54301,288 0.543122,636 0.61856-12 months 6,157 0.5445Buy CHFMaturity0-6 months 4,839 0 0.8904 02007$0002006$00034 Deferred income – operating leasesCurrent:Freight Network Infrastructure prepaid operating lease 5,383 5,383Co-operative Bulk Handling 99 year lease 83 835,466 5,466Non-Current:Freight Network Infrastructure prepaid operating lease 223,384 228,767Co-operative Bulk Handling 99 year lease 7,734 7,817231,118 236,584236,584 242,050108 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007$0002006$00035 EquityEquity represents the residual interest in the net assets of the PTA. The Government holds the equity interestin the PTA on behalf of the community. The asset revaluation reserve represents that portion of equityresulting from the revaluation of the non-current assets.Contributed EquityBalance at start of year 939,871 530,424Capital contributions (i) 1,316,946 424,947Distribution to owner (ii), (iii) (87,925) (15,500)Balance at end of year 2,168,892 939,871Asset Revaluation ReserveBalance at start of year 26,913 0Revaluation of land 12,316 26,913Revaluation of buildings 7,447 0Revaluation of Rollingstock 176,241 0Revaluation of bus infrastructure 20,065 0Revaluation of buses 20,047 0Balance at end of year 263,029 26,913Accumulated surplus/(defi cit)Balance at start of year 41,493 63,508Net adjustment on transition to AIFRS (iv) 0 (3,854)Change in accounting policy or correction of prior period error (v) 0 (18,732)Restated balance at start of period 41,493 40,922Result for the period 40,962 571Balance at end of year 82,455 41,493(i) Capital contributions received during the year have been designated as contributions by owners and are credited directly to equity in theBalance Sheet.(ii) Transfer of assets to Main Roads WA for road and construction works of the Mt Henry’s bridge ($87,925 million).(iii) Proceeds from DPI for sale of land not previously recognised by PTA ($2.8 million) and transfer of Miller’s Way and Spencer Road bridgeassets to Main Roads WA as part of New MetroRail project ($12.8 million).(iv) Adjustment on adoption of AASB 132 Financial Instruments – Presentation and AASB 139 Financial Instruments – Recognition andMeasurements.(v) Refer to note 46.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07109

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20072007$0002006$00036 Notes to the Cash Flow Statementa) Reconciliation of cashCash at the end of the fi nancial year as shown in the Statement of Cash Flow is reconciled to the relateditems in the Balance Sheet as follows:Cash and cash equivalents 52,182 1,146Restricted cash and cash equivalents (refer to note 21) 638 69452,820 1,840b) Financing facilitiesThe PTA has a short-term liquidity facility of $200 million (2005/06: $200 million) with the WesternAustralian Treasury Corporation.Amounts drawn from this facility at June 30 118,000 30,000The Western Australian Treasury Corporation has provided a facility of $US 76.5 million(2006: $US 85 million) to the PTA to meet contingent obligations under a lease agreement that mayeventuate during the life of the lease. As at 30 June 2007, none of this facility has been drawn (2006: Nil).c) Reconciliation of net cost of services to netcash flows provided by/(used in) operating activitiesNet cost of services (627,926) (566,886)Non-cash items:Depreciation and amortisation expense 85,546 92,477Loss/(gain) on sale of property,plant and equipment 1,031 83Resources received free of charge 2,056 41Other non-cash adjustments (23) (238)Sale of land by Department for Planning and Infrastructure 0 (2,728)(Increase)/ Decrease in assets:Current receivables (3,809) 7,622Current inventories (2,617) (178)Other current assets (14,427) 15,304Increase/ (Decrease) in liabilities:Current payables (13,026) (1,556)Current provisions 4,490 640Other current liabilities 14,699 (14,565)Deferred income operating lease (7,361) (764)Non-current provisions 641 1,016Non-current deferred operating lease revenue 28,753 (12,827)Adjustment to Freight Lease Income (26,857) 8,125Change in GST receivables/payments 2,123 216Net cash used in operating activities (556,707) (474,218)110 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007$0002006$00037 Commitmentsa) Capital expenditure commitments, being contracted capital expenditure additional to the amountsreported in the fi nancial statements, are payable as follows:Within one year 115,102 274,977Later than one year and not later than fi ve years 273,300 156,823Later than fi ve years 7,164 9,650395,566 441,450The capital commitments include amounts for:Railway Infrastructure 30,499 269,490Bus Infrastructure 13,945 14,790Railcars 138,709 6,670Plant, equipment and motor vehicles 19,254 13,000Buses 193,159 137,500b) (i) Finance lease commitments:Minimum lease payment commitments in relation to fi nance leases are payable as follows:395,566 441,450Within one year 0 2,904Later than one year and not later than fi ve years 0 0Minimum fi nance lease payments 0 2,904Less future fi nance charges 0 (5)Present value of fi nance lease liabilities 0 2,899The present value of fi nance leases payable is as follows:Within one year 0 2,899Later than one year and not later than fi ve years 0 0(ii) Non-cancellable operating lease commitments:0 2,899Commitments for minimum lease payments are payable as follows:Within one year 793 924Later than one year and not later than fi ve years 356 1841,149 1,108c) Other expenditure commitments contracted for at the reporting date but not recognised asliabilities, are payable as follows:Within one year 308,547 274,128Later than one year and not later than fi ve years 882,383 877,355Later than fi ve years 871,528 984,6752,062,458 2,136,158PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07111

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20072007$0002006$000The other expenditure commitments include amounts for:Land and building maintenance 22,637 14,112Transperth train operations 232,668 211,198Railway infrastructure 4,800 14,141Railcars and road coaches 3,321 7,216Buses and support services 624,803 646,566School bus services 1,173,096 1,236,748Miscellaneous 1,133 6,1772,062,458 2,136,158The commitments are all inclusive of GST.38 Contingent liabilities and contingent assetsContingent LiabilitiesIn addition to the liabilities included in the fi nancial statements, there are the following contingent liabilities:Litigation in progressQuantifi able ContingenciesLeighton Contractors Pty Ltd, the contractor engaged by the PTA to design and construct the City portionof the Southern Suburbs Railway, has commenced Supreme Court actions against the PTA. Two of the actionsrelate to contractual disputes between the PTA and Leighton Contractors, on Leighton Contractors’ allegedentitlements under the rise and fall and contaminated material provisions of the contract. The estimated valueof these two claims is $64 million. The PTA has denied all liability and is vigorously defending the action.The amount that has been claimed by John Holland Pty Ltd, the contractor engaged by the PTA to constructa package of three stations on the Southern Suburbs Railway, but rejected by PTA, which is now subject todispute, is $6.89million. PTA is defending the claims.The amount that has been claimed by RailLink Joint Venture, the contractor engaged by the PTA to constructthe civil, rail and structures portion of the Southern Suburbs Railway, but rejected by PTA, which is nowsubject to dispute, is $2.62million. PTA is defending the claims.PTA has issued indemnities to parties to Cross Border lease transactions for the fi nancial obligations andperformance of the lessees and deposit takers. In the event of default by the lessees or deposit takers to payfor obligations when due or perform functions required of them PTA as issuer of the indemnity is requiredto meet the liabilities, losses, costs and charges of the indemnity and to other parties to the contracts. Inthe event of default the maximum obligation at 30 June 2007 is $18.9 million for lessee obligations and$26.3 million for deposit taker obligations. There have been no notifi cations of default.PTA has entered into an agreement with the City of Wanneroo which will require the PTA to pay $3 millionto the City of Wanneroo plus the increase in CPI from the quarter ending September 30, 2003 to the datethe Government of Western Australia approves the allocation of funds to PTA to extend the passengerrailway line north of Clarkson.112 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Unquantifi able ContingenciesAs at 30 June 2007, PTA has a number of claims lodged against it by several contractors engaged inconstruction of the Southern Suburbs Railway. One signifi cant claim is from Leighton Contractors onallegations of misleading and deceptive conduct in relation to the contracts work insurance effected by thePTA pursuant to the contract. PTA has denied liability and is defending the claim. It is not possible to estimatethe amount of any eventual payments in relation to these claims at balance sheet date.PTA has issued indemnities to Cross Border lease parties in respect to taxation resulting from changes inlaw, taxation administration determinations or as a result of loss of railcars which result in loss of economicbenefi ts to parties to the leases or result in increased costs. There are no notifi cations of adverse taxationcircumstances. It is not possible to estimate the amount of any payments that may arise from theseindemnities at balance sheet date.Contaminated sitesUnder the Contaminated Sites Act 2003, the PTA is required to report known and suspected contaminatedsites to the Department of Environment and Conservation (DEC). In accordance with the Act, DEC classifi esthese sites on the basis of the risk to human health, the environment and environmental values. Where sitesare classifi ed as contaminated – remediation required or possibly contaminated – investigation required, thePTA may have a liability in respect of investigation or remediation expenses.During the year the PTA reported 43 suspected contaminated sites to DEC. Two sites previously reportedhave been classifi ed contaminated – remediation required. Of the 43 sites reported during the year the PTAhas professional advice that 13 sites are contaminated and will be classifi ed as contaminated – remediationrequired. A provision has been recognised to cover for remediation of the 15 sites. The PTA is unable to assessthe outcome of the classifi cation process for the remaining 30 sites, and accordingly, it is not practicable toestimate the potential fi nancial effect or to identify the uncertainties relating to the amount or timing of anyoutfl ows. Whilst there is no possibility of reimbursement of any future expenses that may be incurred in theremediation of these sites, the PTA may apply for funding from the Contaminated Sites Management Accountto undertake further investigative work or to meet remediation costs that may be required.39 Remuneration of members of the Accountable Authorityand senior officersRemuneration of Member of the Accountable AuthorityThe number of members of the Accountable Authority, whose total of fees, salaries, superannuation andother benefi ts for the fi nancial year, fall within the following bands are:$ 2007 2006320,001 - 330,000 1 0260,001 - 270,000 0 12007$0002006$000The total remuneration of the members of the Accountable Authority is: 330 266The superannuation included here represents the superannuation expense incurred by the PTA in respect ofthe member of the Accountable Authority.No member of the Accountable Authority is a member of the Pension Scheme.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07113

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007Remuneration of senior officersThe number of senior offi cers other than senior offi cers reported as members of the Accountable Authority,whose total of fees, salaries, superannuation and other benefi ts for the fi nancial year, fall within the followingbands are:$ 2007 20060 - 100,000 1 0100,001 - 110,000 0 1120,001 - 130,000 2 0130,001 - 140,000 1 4140,001 - 150,000 2 1150,001 - 160,000 2 4160,001 - 170,000 1 0180,001 - 190,000 2 011 102007$0002006$000Total remuneration of the senior offi cers is: 1,567 1,414The superannuation included here represents the superannuation expense incurred by the PTA in respect ofSenior Offi cers, other than the Senior Offi cers reported as a member of the Accountable Authority.No Senior Offi cers are members of the Pension Scheme.40 Financial instrumentsa) Financial Risk Management Objectives and PoliciesFinancial instruments held by the PTA are cash and cash equivalents, foreign exchange contracts, borrowings,fi nance lease, receivables and payables. The PTA has exposure to a variety of fi nancial risks. The PTA’s overallrisk management program focuses on managing the risks identifi ed below.Credit riskThe PTA trades only with recognised, creditworthy third parties. The PTA has policies in place to ensurethat sales of products and services are made to customers with an appropriate credit history. In addition,receivable balances are monitored on an ongoing basis with the result that the PTA’s exposure to bad debt isminimal. There are no signifi cant concentrations of credit risk.Liquidity riskThe PTA has appropriate procedures to manage cash fl ows including drawdowns of appropriations bymonitoring forecast cash fl ows to ensure that suffi cient funds are available to meet its commitments.The PTA has a short-term liquidity facility of $200 million on which it can draw down to fund temporarycash shortfall.114 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

Cash fl ow interest rate riskThe PTA’s exposure to market risk for changes in interest relates primarily to the long-term debt obligations.The PTA’s borrowings are all obtained through Western Australian Treasury Corporation (WATC) and areat fi xed rates with varying maturities. The risk is managed by WATC through portfolio diversifi cation andvariation in maturity dates. The PTA earns interest on the daily balance of its bank account.Foreign exchange risksThe PTA is exposed to foreign exchange risk arising from currency exposure to the Euro and Swiss Francs.Forward contracts transacted with WATC are used to manage these risks. The purpose of the foreigncurrency contracts is to protect against the risk that eventual dollar outfl ows in respect of purchases inforeign currency may be adversely affected by changes in exchange rates.b) Financial Instrument disclosuresInterest Rate Risk ExposureThe following table details the PTA’s exposure to interest risk as at the balance sheet date:WeightedFixed interest rate maturityaverageeffective Variable 1 or less More Noninterestinterest than 1 to 5 than interestNotes rate % rate (i) 1 year years 5 years bearing Total2007 $000 $000 $000 $000 $000 $000Financial AssetsCash and cash equivalents 36 5.98 52,182 0 0 0 0 52,182Restricted cash and cashequivalents 36 5.98 638 0 0 0 0 638Receivables 23 0 0 0 0 14,270 14,270Amounts receivable forservices 24 0 0 0 0 311,338 311,33852,820 0 0 0 325,608 378,428Financial LiabilitiesPayables 29 0 0 0 0 64,652 64,652Other current liabilities 32 0 0 0 0 727 727Derivatives 33 0 0 0 0 1,294 1,294WATC Loans 30 6.39 0 222,440 374,783 257,068 0 854,291Commonwealth Loans 30 5.93 0 383 1,525 1,967 0 3,8750 222,823 376,308 259,035 66,673 924,839PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07115

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007WeightedFixed interest rate maturityaverageeffective Variable 1 or less More Noninterestinterest than 1 to 5 than interestNotes rate % rate (i) 1 year years 5 years bearing Total2006 $000 $000 $000 $000 $000 $000Financial AssetsCash and cash equivalents 36 5.55 1,146 0 0 0 0 1,146Restricted cash and cashequivalents 36 5.55 694 0 0 0 0 694Receivables 23 0 0 0 0 12,584 12,584Amounts receivable forservices 24 0 0 0 0 224,040 224,0401,840 0 0 0 236,624 238,464Financial LiabilitiesPayables 29 0 0 0 0 98,877 98,877Other current liabilities 32 0 0 0 0 753 753Derivatives 33 0 0 0 0 996 996WATC Loans 30 6.05 0 1,119,396 324,783 270,137 0 1,714,316Commonwealth Loans 30 5.93 0 383 1,542 2,332 0 4,257Lease Liabilities 30 6.35 0 2,899 0 0 0 2,8990 1,122,678 326,325 272,469 100,626 1,822,098(i) Variable interest rates represent the most recently determined rate applicable to the instrument at balance sheet date.Fair ValuesAll fi nancial assets and liabilities recognised in the balance sheet, whether they are carried at cost or fairvalue, are recognised at amounts that represent a reasonable approximation of fair value unless otherwisestated in the applicable notes.Credit Risk ExposureThe PTA’s credit risk on fi nancial assets, which have been recognised in the Balance Sheet, is generally thecarrying amount, net of any provision for doubtful debts.Concentrations of credit risk on fi nancial assets are primarily related to property rental agreements andother miscellaneous revenue.Except for securities held to ensure the performance of contractor guarantees or warrantees, amountsdue from major debtors are not normally secured by collateral. However the creditworthiness of debtorsis regularly monitored. Securities held to ensure the performance of contractor guarantees or warranteesinclude Bank Guarantees, Personal (Directors) Guarantees or cash. The value of securities held is dependanton the nature, including the complexity and risk, of the contract.116 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007$0002006$00041 Supplementary financial informationLosses through theft, defaults and other causesLosses of public moneys and public and other propertythrough theft and default 4 7Revenue written off 5 24Gifts of public propertyGifts of public property provided by PTA 0 09 3142 Events occurring after the balance sheet dateThe PTA has not identifi ed any signifi cant events after balance sheet date that would require adjustment ordisclosure to be made.43 Explanatory Statementa) Significant variations between estimates and actual results for thefinancial yearDetails and reasons for signifi cant variations between estimates and actual results are detailed below.Signifi cant variations are considered to be those greater than 10% or $1 million.2007 2007Actual Estimate Variance$000 $000 $000Revenue from ordinary activities 134,835 125,647 9,188Cost of Services 762,761 797,426 34,665Net Cost of (Surplus from) Services 627,926 671,779 43,853RevenueRevenue was $9.2 million (7.3%) above the estimate. The positive variations include the following signifi cantitems:i) MultiRider, SmartRider and cash fares increased by $8.8 million as a result of increased patronage;ii) Increase in revenue from External works of $5.0 million;iii) Advertising revenue increased by $2.3 million from changed contractual arrangements;iv) Increase in rental revenue of $2.1 million;PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07117

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007v) Increase in interest revenue of $1.6 million; andvi) Service contribution revenue $1.5 million due to joint ticketing of various sporting and entertainmentevents.vii) This is offset by a reduction in the lease income from the prepaid freight network of $14.4 million dueto a change in accounting policy of amortising the deferred lease income to straight line method.Total cost of servicesCost of services for the year was $34.6 million (4.3%) below estimate.There were several signifi cant positive and negative variations that contributed to this overall variation.These variations include:i) Reduced interest of $23.3 million due to lower than budgeted interest rate and delay in Capital worksprogram and a reduction of $7.0 million on notional interest due to a change in accounting policy ofamortising the deferred lease income to straight line method;ii) Reduced depreciation of $7.5 million mainly due to delay in the start of the Southern Suburbs Railway;iii) Reduced grants and subsidies of $10.0 million mainly due to delay in implementation of school busesseatbelts;iv) Reduced grant to Local Government of $9.0 million due to deferral of asset transfers to LocalGovernments by New MetroRail because construction was not completed at 30 June 2007; offset byv) Increased Transperth bus costs of $7.0 million mainly due to remedial works related to contaminatedsites, settlement of long service leave as a result of an amendment to the Long Service Leave Act 1958,security and maintenance contracts;vi) Increase in land rationalisation expenses $3.8 million mainly due to clean up of contamination,investigation and remediation at Kewdale;vii) Increased infrastructure costs of $2.0 million mainly due to concrete re-sleepering on the Midland lineand painting of station structures at Warwick station;viii) Foreign exchange loss of $1.6 million on Euros for the purchase of bus chassis and Swiss Francs for thepurchase of ticket vending machines;ix) Increased costs related to external works $1.4 million; andx) Loss of $1.0 million mainly due to disposal of CAT buses.b) Significant variations between actual revenues and expenditures for thefinancial year and revenues and expenditures for the immediately precedingfinancial yearDetails and reasons for signifi cant variations between actual results with the corresponding items of thepreceding year are detailed below. Signifi cant variations are considered to be those greater than 10% or$1 million.118 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

2007 2006Actual Actual Variance$000 $000 $000Employee benefi t expenses 79,736 68,874 10,862Supplies and Services 131,710 98,828 32,882Depreciation and amortisation expense 85,546 92,477 (6,931)Finance costs 62,734 100,047 (37,313)Grants and subsidies expense 249,176 243,341 5,835Capital user charge 130,340 65,052 65,288Land rationalisation expense 4,492 6,223 (1,731)Loss on disposal of non-current assets 1,031 83 948Other expenses 9,113 10,933 (1,820)User charges and fees 105,029 98,727 6,302Interest revenue 2,341 1,084 1,257Employee benefi t expenseIncrease in employee benefi t expense due to increase in transit guards and train drivers in preparationfor the opening of the Southern Suburbs line to Mandurah, and the increase in salary and wage rates inaccordance with EBA arrangements.Supplies and Servicesi) External works costs of $1.3 million for project costs recovered from third party.ii) Increased remediation works on fuel line leakage, AS1940 compliance and provision for contaminatedsites $4.2 million.iii) Increased security costs relating to special events and NightRider $1.0 million.iv) Write off of concept or discontinued capital works $4.7 million.v) Increased maintenance of EMU railcars and security $8.6 million.vi) Increased maintenance of Prospector and Australind railcars $2.4 million.vii) Increase costs in preparation for the opening of the Southern Suburbs Railway in 2007/08 includingprovision of security services for new stations not yet operational, set up costs for new depot and offi ces,advertising and promotion.Depreciation and amortisation expenseDecrease in depreciation of $6.9 million is mainly due to depreciation in the prior year on stations and traincontrol system no longer used.Finance costsi) Decrease in Finance costs of $37.3 million is mainly due to repayment of the New MetroRail debt of$913 million.ii) Foreign exchange loss of $1.6 million on Euros for the purchase of bus chassis and Swiss Francs for thepurchase of ticket vending machines.PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07119

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007Grants and subsidies expenseIncreased Transperth bus contract costs mainly due to fuel, labour and settlement of long service leave as aresult of an amendment to the Long Service Leave Act 1958.Capital user chargeThe capital user charge is based on the average net assets multiplied by 8%. The variance is mainly due to therepayment of the New MetroRail (NMR) debt - $913 million and this year’s NMR capital works being fundedby an equity injection from DTF.Land rationalisation expenseDecrease in expenditure due to lower land rationalisation activity.Loss on disposal of non-current assetsIncrease in loss on disposal of non-current assets is mainly due to the disposal of the Central Area Transitbuses.Other expensesDecrease expenditure due to 2005/06 contribution to Main Roads WA - $3.0 million and City of Joondalup -$0.6 million offset by 2006/07 notional charge for services provided by Landgate ($2.0 million).User charges and feesIncrease due to fare increase by 10 cents and increased patronage on the Transperth system including the fullyear impact of the Thornlie line.Interest revenueIncrease due to maintaining a higher cash balance in the bank as a result of the timing of the drawdown ofcapital user charge funding and the actual payment of the capital user charge.120 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

44 Schedule of income and expenses by serviceMetropolitan and Country passenger Rail corridorregional passenger rail and road Regional School and Residualservices coach services Bus Services Freight Issues Total2007 2006 2007 2006 2007 2006 2007 2006 2007 2006$000 $000 $000 $000 $000 $000 $000 $000 $000 $000COST OF SERVICESExpensesEmployee benefi t expenses 65,566 55,664 9,783 9,650 3,568 2,139 819 1,421 79,736 68,874Supplies and Services 107,316 77,161 17,766 15,458 1,511 1,503 5,117 4,706 131,710 98,828Depreciation and amortisation expense 71,344 79,614 6,742 5,744 3 14 7,457 7,105 85,546 92,477Finance costs 55,261 84,726 4,482 4,521 207 0 2,784 10,800 62,734 100,047Grants and subsidies 176,931 172,679 0 0 72,245 70,661 0 1 249,176 243,341Capital user charge 102,063 46,964 2,005 3,574 1 11 26,271 14,503 130,340 65,052Energy and fuel 6,272 5,992 2,611 2,133 0 1 0 2 8,883 8,128Land rationalisation expense 0 0 0 0 0 0 4,492 6,223 4,492 6,223Loss on disposal of non-current assets 976 (84) 9 113 0 3 46 51 1,031 83Other expenses 5,412 7,914 767 636 197 139 2,737 2,244 9,113 10,933Total cost of services 591,141 530,630 44,165 41,829 77,732 74,471 49,723 47,056 762,761 693,986IncomeUser charges and fees 93,968 88,356 9,728 9,261 1,333 1,110 0 0 105,029 98,727Land rationalisation lease income 0 0 0 0 0 0 83 83 83 83Operating lease revenue 0 0 0 0 0 0 5,383 5,383 5,383 5,383Commonwealth grants and contributions 0 210 0 0 0 0 0 0 0 210Interest revenue 0 0 0 0 0 0 2,341 1,084 2,341 1,084Other revenue 10,654 9,022 47 25 51 39 11,247 12,527 21,999 21,613Total income other than income fromState Government 104,622 97,588 9,775 9,286 1,384 1,149 19,054 19,077 134,835 127,100NET COST OF SERVICES 486,519 433,042 34,390 32,543 76,348 73,322 30,669 27,979 627,926 566,886INCOME FROM STATE GOVERNMENTService Appropriation 493,988 427,658 33,314 33,149 80,868 75,286 41,068 23,731 649,238 559,824Resources received free of charge 0 0 0 0 0 0 2,056 41 2,056 41Contribution - Other Government Agencies 4,444 7,592 0 0 0 0 13,150 0 17,594 7,592Total income from State Government 498,432 435,250 33,314 33,149 80,868 75,286 56,274 23,772 668,888 567,457Surplus/(defi cit) for the period 11,913 2,208 (1,076) 606 4,520 1,964 25,605 (4,207) 40,962 571PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07121

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 20072007$0002006$00045 Remuneration of auditorRemuneration to the Auditor General for the fi nancial year is as follows:Auditing the accounts, fi nancial statements and performance indicators 135 14146 Correction of error in applying AASB 117 LeasesDue to incorrect application of AASB 117 Leases on adoption of AIFRS, income from a prepaid operatinglease was overstated (see note 5). The error has been corrected as shown below:Income statement for the year ended 30 JuneIncrease/(decrease) in operating lease revenue (14,407) (13,981)(Increase)/decrease in fi nance costs 7,046 5,856Increase/(decrease) in surplus/(defi cit) for the period (7,361) (8,125)Statement of Changes in Equity for the year ended 30 JuneIncrease/(decrease) in accumulated surplus at start of period (26,857) (18,731)Increase/(decrease) in surplus/(defi cit) for the period (7,361) (8,125)Increase/(decrease) in accumulated surplus for the period (34,218) (26,856)Balance Sheet as at 30 JuneCumulative (increase)/decrease in deferred income operating lease (34,218) (26,856)Cumulative increase/(decrease) in accumulated surplus (34,218) (26,856)122 PUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07

CONTACT DETAILSPrincipal OfficeStreet Address:Public Transport Authority of Western AustraliaPublic Transport CentreWest ParadeEast Perth WA 6004Postal Addrress: PO Box 8125Perth Business CentrePerth WA 6849Australian Business Number: 61 850 109 576TelephoneGeneral administration enquiries (08) 9326 2000 (Offi ce hours only)Transperth Infoline 13 62 13Transwa Booking Centre 1300 6622 05(Prospector, Australind, AvonLink and Country Road Coach Services)Publications available to the publicFor copies of publications available to the general public, please contact:Manager, Corporate CommunicationsPh: 08 9326 2764Fax: 08 9326 2755Freedom of Information Act Information Statement inquiries should be directed to:Manager, Corporate Issues and CompliancePh: 08 9326 2368Fax: 08 9326 2936Internet address: www.pta.wa.gov.auPUBLIC TRANSPORT AUTHORITY ANNUAL REPORT 2006/07123