Table 6: Results of Dairy Service Levy Poll 2007 Option Levy Rate Votes Percentage of votes cast Voters Percentage of valid ballots A Increase by 15% 777,563 4.07 161 3.28 B CURRENT 12,163,043 63.66 3077 62.73 C ZERO 6,164,925 32.27 1667 33.99 Total 19,105,531 100.00 4905 100.00 Dairy Australia forwarded the results of the poll and the recommendation to maintain the levy at its current rate to the Minister for Agriculture, Fisheries and Forestry, Mr Peter McGauran, who on 27 March determined that the current levy rate would continue. RISK MANAGEMENT The assumption of risk by Dairy Australia is a necessary part of the activities undertaken to achieve Company and industry objectives and its role as Trustee for the Dairy Structural Adjustment Fund. However, the Board is committed to the identification, assessment and management of these risks. The Board’s committee structure forms an important part of the risk management process. The Board receives regular reports on specific business areas where significant business risk or exposure might exist through the Audit and Risk Management Committee. RISK MANAGEMENT PLAN In addition, Dairy Australia recognises that risk management is an intrinsic part of each manager’s day-to-day activity. Each business group is individually responsible for ensuring that there are appropriate systems and structures in place to manage risk. During the year, Dairy Australia reviewed its Risk Management Plan and updated its Risk Records; that is the record detailing each identified risk and the controls and processes in place for managing that risk. A number of internal audit reviews were completed during the financial year and there is an ongoing review process which aims to link improved efficiency and performance with conformance with legislation, the Constitution, the funding deed, and other business and professional guidelines. INSURANCE An appropriate insurance program was maintained by the Company throughout the year providing cover against identified, insurable risks. As provided under the Constitution, the Company indemnifies Directors and senior officers for loss arising from a claim by reason of a wrongful act committed by them in their capacity as Director or officer unless the liability arises from conduct involving a lack of good faith. During the year, the Company paid a premium in respect of an insurance contract insuring its Directors and senior officers against liability of this nature. In accordance with normal commercial practices, under the terms of the insurance contracts, the nature of the liabilities insured against and the amount of premiums paid were confidential. OTHER REPORTING REQUIREMENTS In June 2007, Dairy Australia prepared and submitted to the Minister a five-year Strategic Plan 2008-12 and an Annual Operating Plan 2007-08. TRIPLE BOTTOM LINE Dairy Australia continues to develop and improve reporting processes and systems to enable it to report on its activities using the triple bottom line concept, endorsed and used by the Australian Government, through monitoring and reporting on its social, economic and environmental performance for the industry’s sustainability. All Dairy Australia’s activities integrated social, economic and environmental objectives to achieve sustainable outcomes for the dairy industry. By doing this, it aimed to address the triple bottom line to achieve economic prosperity, environmental quality and social wellbeing, both internally and externally, wherever possible. As many projects contribute to more than one benefit, the proportion of expenditure (Table 6) has been allocated on the basis of the primary benefit. For example: o Economic: farm productivity research and international trade and marketing projects; o Social: nutrition research and promotion of the health benefits of dairy produce through projects such as ‘dairygood for life’; and o Environmental: sustainability projects such as ‘Dairying for Tomorrow’, environmental management systems and water use efficiency research. Table 7: Triple bottom line expenditure 2006/07 Economic Social Environmental 55 20 25
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