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Aquaculture Council of Western Australia Inc

17th Annual Report

2004/05
17th ACWA Annual Report 2004-2005

ACWA Board of Directors

Director Experience and Special Responsibilities


Chair Mr Steve Parsons Operations Manager and joint owner of Great Southern Marine Hatcheries Pty
Appointed Oct Ltd for the past 7 years. Previously worked in the commercial diving industry
2004 for 15 years and has also experienced time with the both pearling and tuna
farming industries. Steve is currently a member of WAAAA (Western
Australian Abalone Aquaculture Association) and serves as the WA
representative on the FRDC (Fisheries Research & Development
Commission) Abalone Sub-Committee.

Vice Mr. Rick Scoones Has an MSc in Zoology and about 20 years of experience in the aquaculture
Chair Appointed Oct and fishing industries. He is an independent aquaculture consultant with
2003 specialties in research, environmental issues and administration of
aquaculture, and has expertise in pearl oysters, abalone, scallops, marron and
ornamental fish. He has held positions on the ACWA Board since its inception
in 1987, including five years as Chairman from 1995 to 2000.

Director Mr. Glenn Dibbin Has extensive experience in Mussels Aquaculture in Australia over the past
Appointed Oct 21 years. He is founding partner in Blue Lagoon mussels, Western Australia’s
2004 leading mussel producer. Serves as Chair of Western Australia Mussel
Producers Association. Previously worked in Western Australia in the Scallop,
Crayfish And Prawn Commercial Fishing Industry.

Director Mr. Dan Sampey Graduated majoring in Geology and Chemistry from University of WA.
Appointed Oct Worked as an exploration Geologist /Geochemist. For 15 years owned and
2004 ran a geochemical laboratory, exploration contracting service and Consultancy
in the mining industry (up to 300 employees). Between 1970-75 Lectured at
WAIT (precursor of Curtin Uni) in Applied Geochemistry. Initiated and help
guide the discovery and delineation of the Esperance lignite deposit. Director
of several public mining companies and subsidiaries. In 1979 started
experiments on growing marron. Since 1997 Secretary of the Marron
Growers Association. of WA

Director Mr Murray Konarik General Manager of the MG Kailis Group Seafood Division, working across all
Appointed Oct aspects of the business from catching/resource management to the sale of a
2003 diverse range of seafood product to the international and domestic markets.
Prior to joining the Group worked as a Chartered Accountant in public practice
for eight years.

Director Dr. Bruce Phillips Currently an Adjunct Professor with the Muresk Institute, of Curtin University
Appointed Oct of Technology in Western Australia. From 1992-1996 was the Chief Scientist
2004 with AFMA and was involved in developing a research program for all
Commonwealth managed fisheries, including trawl fisheries, finfish, sharks,
tuna and prawns. Prior to this he spent 28 years as s scientist with the
CSIRO.

Director Ms Bronwyn Has been associated with the commercial fishing and aquaculture industries
Harries for in excess of 25 years. Managing Director of Cape Seafarms Pty Ltd which
Appointed Oct is to establish a commercial prawn farm operation at Heron Point, Exmouth
2004 – 1 year Gulf. Bronwyn has been a member of ACWA almost since inception, has
term. been an active board member for many years and Chair for four years.

Director Mr Shane Executive Director of Southseas Abalone Limited and SAM Abalone Pty Ltd –
McLinden an operating abalone farm in Port Lincoln S.A.; executive director of Two
Appointed Oct Rocks Abalone Pty Ltd – a company undertaking a significant research
2003 project. Director of the Australian Abalone Growers Association Inc and

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17th ACWA Annual Report 2004-2005

Director of WA Abalone Aquaculture Association. B. Engineering (UWA);


Diploma of Company Directorship.

Director Mr Greg Jenkins Greg Jenkins has worked in the aquaculture industry in Australia since 1981.
Appointed Oct During this time he has worked on pilot farms for freshwater prawns in remote
2004 areas of Far North Queensland and the Kimberley, WA; as the company
biologist for a large wild-capture prawn company in Shark Bay; and as a
Research Biologist and Hatchery Manager with a private R & D company in
Western Australia investigating the aquaculture potential of marine finfish.

Greg has been employed at the WA Maritime Training Centre since 1991 and
as Manager of Aquaculture Research and Development since 1994 has led
the development of the Aquaculture Development Unit's facilities and
programs. Greg is Chair of the WA Sustainable Development of Marine
Fishfarming Forum; Vice-Chair of the WA Fish Foundation;
Secretary/Treasurer of the WA Marine Fish-farming Association; a Board
Member of the WA Fisheries Research Advisory Board and the Aquaculture
Council of WA and a member of the National Steering Committee for Inland
Saline Aquaculture.

Executive Mr Dan Machin Executive Officer of ACWA since Feb 2004. Has 14 years experience in
Officer aquaculture industry development. Over this time he has held both senior and
middle management positions in aquaculture businesses (Ireland & Greece)
and in government, and has provided him with a strong technical knowledge.
Dan has BSc. (zoology and botany); Diploma in Business, MSc. in
Aquaculture.

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17th ACWA Annual Report 2004-2005

Table of Contents

Quick reference table of ACWA activities 2004-2005 .............................................................................4


Chairman’s Report ................................................................................................................................13
Directors Report....................................................................................................................................16
ACWA’S Business Programs................................................................................................................17
Aquaculture for Profit ........................................................................................................................17
Aquaculture for People .....................................................................................................................21
Aquaculture for Tomorrow.................................................................................................................22
Corporate Services ...........................................................................................................................22
Appendix 1: ACWA Financial Report ....................................................................................................25
Appendix 2: Summary of ACWA’s Key Submissions & Media................ Error! Bookmark not defined.

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17th ACWA Annual Report 2004-2005

Quick reference table of ACWA activities 2004-2005


Aquaculture for People

Project Strategy Status

Member & Industry Maintain an up to date website Achieved


Communication ACWA maintained an updated
website lodging 12 new pages
under three new sections.

Undertake Website Redevelopment to improve In progress


efficiency and effectiveness of industry Completed Functional
consultation and communication. Specifications and tenders ($35k
to $85k). The Minister agreed to
fund this program for $20k in
Nov 2004. The $20k was not
adequate to complete the job,
ACWA developed a staging plan
for the website’s development,
also interstate government
partnerships for the project and
other commercial arrangements
that will see stage 1 operational
in 6 months

The funding was not made


available until end of January
2005. ACWA went out for new
round of tenders. In March 2005
ACWA contracted the winning
tender.

Member & Industry Schedule regular deputations to the Minister Four deputations with the
Communication Minister.
Member & Industry Attend the Aquaculture Development Council Attended all ADC meetings for
Communication (ADC) meetings 2004/05. ACWA provided an
industry issue paper for each
meeting.
Member & Industry Hold a minimum of 10 Board meeting per Held 10 board meetings
Communication annum and one AGM, AGM held on 27 October 2004

Member & Industry Arrange and regular meetings with DoF to Ongoing
Communication progress aquaculture industry management Commenced in January 2005,
and compliance issues seven (7) meetings held.

Develop a draft Memorandum of


Understanding (MOU) with the
Department of Fisheries
Member & Industry Publish 4 editions of ACWA news October 2004 Published.
Communication Ceasing publication as members
wanted monthly updates. In
additional, ACWA current format
was making a loss.

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17th ACWA Annual Report 2004-2005

Project Strategy Status

Member & Industry Publish ACWA digest bimonthly newsletter for On going
Communication members to facilitate timely two-way 4 Editions published.
communication between industry and the
ACWA board.
Human Development Develop and Implement Industry Leadership In progress.
Training Program
Applied for and awarded a
Department of local Government
and Regional Development
“Building and empowering
sustainable communities fund”

Attended all meetings of the


Challenger TAFE Co-
management Training
stakeholder Working Group.

Sought funding from the Minister


to facilitate business leaders
attendance.

Negotiated the training program


with leadership training
providers.

Liaised with other agri-business


sectors associations to co-host
the leadership training with to
build intersector social capital.

Developed EOI process for


industry.

To improve the benefits ACWA


is aligning this project to
Farmbis and the leadership and
Environmental Management
System Seafood Industry
Competency Standards, to
enable course to be accredited
by Registered training
Organisation and be used as
part gaining qualifications by
participants.

Also ACWA is looking for


synergies with the Co-
management training package
being developed in Western
Australia, as part of the building
industry’s capacity Integrated
Fisheries Management program.

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17th ACWA Annual Report 2004-2005

Project Strategy Status

Industry Promotion Prepare a paper & presentation for ABARE Achieved


Outlook 2004.
Prepared presentation on the
Marron Industry, the paper was
co-authored with Dr Greg
Maguire.

Industry Promotion Secure World Aquaculture 2012 Bid Ongoing.

ACWA meet with WAS, NAC at


WAS 2005, Bali.

Made arrangements for John


Cooksey to visit Perth in
January 2006.

ACWA with the Perth


Convention Bureau have
developed a budget, Project &
Budget schedule for event from
2006 to 2012, plus sponsorship
program for the event.

Invited Federal & State


Minister’s to WAS 2005, Bali.
Industry Promotion Coordinate, setup and man the ACWA, Achieved
WAMPA and DoF Stand for Mussel Fest
Over 600 people visited the
booth
Industry Promotion Coordinate, setup and implement a new Achieved
industry display for WA Onshow exhibition. Over 1600 people visited the
booth, and at peak time 500
people an hour past the booth.
Industry Promotion Provide regular media releases and interviews. On going
Five releases and five radio
interviews provided
Industry Promotion Assist DoF develop a industry events plan Completed
Human Capital Promote Brussels Food Expo Achieved.

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17th ACWA Annual Report 2004-2005

Aquaculture for Profit

Project Strategy Status

Representation See page 14 of the Annual Report On-going


Implementation Strategy Set up the project Steering Committee and Achieved
Industry Development, provided it with executive support.
Investment and Marketing
Solutions project. Set up Industry Reference Group.
Achieved
Coordinate industry comments for the draft and
final reports.
Achieved
Coordinate Regional Development Commission
Involvement. Achieved

Circulate final report to the Minister, ADC, RDC


and industry, local parliament members. Achieved

Undertake contract management and


reconciliation report, total worth $55,000 to be Achieved
delivered by December 2004.

Achieved
Minister Deregulation of Coordinate the provision of an industry Achieved
Aquaculture Working representative.
Group
Provide comment on the Terms of Reference. Achieved
State Election Lobby for bipartisan support for the Achieved
recommendations of the Aquaculture Review. Refer to election platforms of
Labor and the Coalition.
Members Saving Decrease business cost to members. Ongoing
Programs Developed ACWAcard though
Improve membership value membership of Shop rite. This
provides members with access
to discounts on food, travel,
electrical goods and
pharmaceuticals.

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17th ACWA Annual Report 2004-2005

Project Strategy Status

Commercial Loan for Obtain Government support for Innovation Achieved


Abalone Aquaculture investment loan for Bremer Bay Abalone
Precinct farms. Lobbied the Minister of
Fisheries, Minister for State
Development, Premier,
Department of Industry and
Resources and Department of
Fisheries; and the ADC.

Prepared on submissions and


undertook delegations to various
Ministers.

Facilitated the securing of


$800,000 commercial loan with
assistance from WAAAA, ADC,
DoF and the Minister.

Facilitated the payment of the


Loan with Bayside and Minister
of Fisheries.
Off target Spray Drift Host Seminar & workshop on responsible agri- Achieved
impacts on Aquaculture, chemical use
Human and Environmental
Health Obtain Government to set a drafting of priority
for Bio-security and Agriculture Management Achieved
Bill to close loop holes in the legislation.

Obtain Government to review administration


and investigation of adverse impacts. Achieved

Provide guideline to industry to manage risk

Secure $8000 event sponsorship Achieved

Draft template neighbour agreement.


Achieved
Draft a report and circulate to participant and
members of parliament. Achieved

Conduct post-workshop seminar survey


Achieved

Achieved

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17th ACWA Annual Report 2004-2005

Project Strategy Status

Training Provide input on industry training needs to the Provided a submission to Agri-
following committees: food skills council.

• Agri-Food Skills Council Attended all meetings of these


groups.
• Challenger TAFE Maritime Industry
Training Advisory Group

• Curtin University Aquaculture review


committee.

• WAFIC OHS & training sub-committee


Industry Collaboration Assist industry to develop cooperative Ongoing
marketing arrangements and generically brand
product where appropriate. Developed a proposal for
strategic branding of AMWING
pearls. Presented this to the
ADC. The ADC did not support
the proposal.

Facilitated the marron industry


development planning project
with SWDC and the ADC.

Department of Fisheries Prepare a business plan for Small Scale Achieved.


ADO exit strategy industry education and development.

Policy and Legislation Key issues advocated : On going.

1. Aquaculture Leases See page 14 of the Annual


2. Risk based environmental reporting on Report
licence conditions
3. Aquaculture long term Licences
4. DPI planning Bulletin for land based
Aquaculture.
5. Exemption Application fees for
Aquaculture Broodstock
6. Industry Comment on Aquaculture &
pearling applications
7. Cockburn Mussel Leases
8. Albany Port Mussel Leases
9. Aquaculture Licence Conditions
10. Live Sand Rock & Coral Policy
11. Food Safety Standards
12. State Marine Planning
13. Natural Resource Management
Groups, Strategic and Investment
Plans. Need for marine reference
groups.
14. Advocacy for specific ACWA members.

See Appendix 1: for a complete list of


submissions.

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17th ACWA Annual Report 2004-2005

Project Strategy Status

Aquaculture Development Represent industry at the ADC Achieved


Council
(MAC) Provide a background paper to EO of the ADC
detailing industry issues affecting the
development of Aquaculture industry in WA.
Achieved
Provide a presentation and paper on ACWA
and the Strategic Allocation of the ADC
resources.
Achieved
Provide a paper on Aquaculture Industry’s
position on the strategic allocation of the
remaining 20% of its budget.

Participate in ADC abalone industry Achieved


development planning day.

Aquaculture for Tomorrow

Project Strategy Status

Abalone EMS & Contract manage the consultant. Achieved


Environmental Code of
Practice. Coordinate industry comment & feedback.
Achieved
Assist the DoF develop an Animal Welfare On going
Animal Welfare policy.
Provided comment on the
National Aquaculture Council
revision of the animal welfare
code of practice.
Environmental Explore opportunities for WA based industries Ongoing
Management Systems to participate in ESD case studies.
Facilitated two (2) companies to
enrolled in the National
Aquaculture Council EMS case
Develop training initiatives in EMS for studies.
businesses.
In progress

Attended NAC EMS workshop


implementing EMS programs
throughout industry.

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17th ACWA Annual Report 2004-2005

Project Strategy Status

Develop food safety plans relevant to industry In progress


Food Safety sectors as required by the New Food
Regulations developed by ANZFA. With SQMI program developed
a training program that will
combine OHS, EMS and Food
safety into a two day training
program. This will be
implemented over the next 24
months.

Corporate Services

Project Strategy Status

Project Strategy Status


Strategic and Business Plans Implement Minister Achieved
Recommendation No. 6 review
ACWA operations with due New business plan has been
consideration to Exhibit 2 of the developed for 2005-2008.
Lendich report.

Reviewed after the operational plan


of the ADC was determined in
March 2005 to ensure no overlap.

Develop new ACWA constitution


and discussion paper on rationale
for the changes. The changes will
enable ACWA to broaden it member
base.

Develop a discussion paper on new


member’s subscription rates,
including the new proposed classes
of members.
Peak Body Funding – Levy Prepare levy discussion paper for Achieved
release at the 2004/05 Annual
General Meeting. The paper will
need to address constitutional and
business model changes.

Seek legal advice from DoF and Achieved in November 2004.


SSO on the levy model. Advice received at the end of
March 2005.
Develop a discussion paper on Achieved
electorates for ACWA board
positions.

Seek the new Minister views on Achieved


levy.

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17th ACWA Annual Report 2004-2005

Achieved

Achieved

Achieved
Assoc. Secretariat Provide WAMPA, WASQAP, YPA, Achieved.
AMWING & WAAAA with secretariat
support

Finance, Database and Office On going.


management, EO support
Advocacy for Co-funding Obtain a new co-funding agreement On-going
agreement between industry and with the Minister of Fisheries to
the Minister. maintain an independent, effective Secure a commitment for 2004/05
and representative peak bodies that
can be relied upon to represent the Progressed the levy implementation
substantive views of a wide range program.
of constituents.
Entered into negotiation over future
DBIF arrangements.

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17th ACWA Annual Report 2004-2005

Chairman’s Report
At the risk of being accused of plagiarism I would like to remind you of some comments from last years
Chairman’s report.

“Global factors are placing pressure on market prices in many sectors and operational issues such as low
rainfall, higher fuel prices and transport costs, etc”

Some things have not changed; it has been a tough year in aquaculture from a WA perspective, labour
shortages, ever increasing fuel and material costs, seemingly onerous monitoring and regulation costs,
consistently higher environmental hoops to jump through, systemic tardiness within government, cheap imports
and the ongoing battle to gain public opinion and investment funds. And that is just at a local level, it does not
take into account international pressures. The usual villains of cheap labour and/or subsidised producers, over
supply, lower environmental standards, the impact of higher energy demands from China, unfavourable
exchange rates all make their impact on the ability of aquaculture producers to function as a viable entity.

No matter what our Prime Minister believes, the level playing field is not something that exists in real terms.

However, whilst we are unable to do a lot about many of the international issues - except to attempt to take
advantage of them, ACWA has been able been able to influence many of the local issues facing aquaculturists
in WA. We consider that 2005 has been a year of consolidation and laying of foundations after the release of the
Lendich & Ciffolili Reports in 2004. ACWA will continue to push for the implementation and bipartisan support of
the recommendations throughout 2006 and beyond.

Over the past 12 months ACWA has been actively pursuing a number of issues which have directly impacted on
our members and which we believe have resulted in positive outcomes through ACWA’s involvement.

ACWA was instrumental in ensuring the drafting of the Biosecurity and Agriculture Management (BAM) Bill which
will see the use of pesticide in WA brought into the 21st century. ACWA’s Getting the Drift seminar & workshop
was also catalytic in bringing about the Pesticide Advisory Committee’s review of legislation and adverse
impacts management. This will have clear benefits to all aquaculturists involved with marron, yabbies and inland
fisheries. For our efforts ACWA is also sitting on the Overarching Reference Group that is overseeing the
strategic development of the BAM Bill, as such are in the best position to ensure industry’s interests are
protected

Long term leases or the lack of them have been a constant hindrance to aquaculture ventures and their
development, especially our mussel farmers. ACWA has worked with WAMPA, the ADC and DoF to deliver a
commitment from the Fremantle Port Authority to draft a long term head lease and sub-lease agreement for
areas in Cockburn Sound. It has also been over 550 days since it became feasible for aquaculture leases to be
issued in coastal waters – we now have a commitment from DoF for this to happen by December 2005. ACWA
has also commenced negotiations on behalf of the GSAA with the Albany Port Authority to extend its leases
from 5 to 21 years to ensure parity across the State.

Gaining access to sites is often a battle of hearts and minds, despite being only a small user of resources. As
highlighted at the last years AGM, the Natural Resource Management (NRM) process is the largest, government
funded, community based social engineering program. The NRM groups are extremely well resourced and will
play a key role in formulating community views on the industry. Over the past 12 months ACWA’s has ensured
that all the NRM groups have implemented marine reference groups that include aquaculture representatives.
This will enable us to get our side of the story out into the community. Through groups such as SCRIPT (South
Coast Regional Initiative Planning Team) aquaculture has a presence and voice on issues that can impact on
aquaculturists in southern WA. ACWA has also lobbied successfully for representation on the State Marine
Planning Reference Group. This group will be part of the process of setting up a marine planning policy for the
State.

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17th ACWA Annual Report 2004-2005

In 2005/06 will see the ten-year-old Fish Resources Management Act (FRMA) receive a much needed overhaul.
This will take shape as an amendment bill and possibly a Parliamentary Committee. ACWA will ensure that all
the elements of the Ciffolilli Review are included.

Communication is always critical. ACWA has redeveloped its website to enable it become a primary point of
focus for the dissemination of information to our members and the public. We expect the current redevelopment
of the site to lift our ability to service the industry to even higher levels with the use of e-mail, fax and SMS
gateways.

Given the funding uncertainty, due to the shrinking DBIF as a result of lower Fisheries GVP and increasing
competing strategic uses of the fund, ACWA needs to broaden its member base to maintain and grow its
members services. This was the basis for the proposed constitutional and subscription fee schedule changes
that will be considered at this year’s AGM.

To assist ACWA to grow its membership drive we have sought ways of increasing the direct benefits to ACWA
members. These include discounted subscriptions to the Austasia Aquaculture Magazine, Fish Farm
International and Englehart Agri-business Consulting. Members will also be eligible for the ACWA Shoprite
discount card.

Another goal for ACWA is to foster its industry leaders to provide relevant skills to nurture the volunteer base
within the ranks of the sector associations. ACWA has gained funding for an aquaculture leadership program
that will take place in early 2006. So any future leaders out there please contact Dan for details.

In addition, over this year, ACWA has met its targets towards a poll on an industry levy. ACWA published and
circulated for comment its business plan and levy discussion paper. Delays on advice of their content from the
State Solicitor’s office and the new Minister meant that the levy poll was not conducted in May 2005 as
expected. ACWA is still awaiting advice from the new Minister of Fisheries on his position on the need for an
industry levy.

The Dept of Fisheries WA has a new Minister after the last election in the form of The Hon Jon Ford MLC,
Minister for Fisheries; Kimberley; Pilbara and Gascoyne. The Minister is bullish about aquaculture and its role
in regional and seafood supply development. One of the first moves by the Minister was to form an Aquaculture
Working Group, headed by Mick Murray MLA and supported by Steve Nel and Peter Millington. Its purpose is to
look at bureaucratic issues surrounding aquaculture and subsequently look at ways in which they can be
reduced.

Prior to the State election, ACWA worked tirelessly to ensure the Department of Fisheries implemented the new
board of the Aquaculture Development Council (ADC), so as to not risk a six month delay following the election.
This has seen one of the Review's primary recommendations carried out.

The new ADC will be working with ACWA to implement the findings of the WA Industry Development Investment
Attraction and Strategic Marketing Plan. This excellent work was completed by Russell Barnett, Australian
Venture Consultants and Jacqui Porter, BrainCells. A special thanks must be given to the steering and industry
reference group whose efforts ensured the depth and focus of the plan - a plan which has already guided the
strategic allocation of resources in both Government, the ADC and ACWA.

The outlook for aquaculture in WA, I believe is one of guarded optimism. The fundamental framework for a
vibrant, profitable and sustainable industry is being put in place, but there is no place for complacency.

In the last 12 months we have seen successes such as the launch of Marine Produce Australia, producers of
Black Tiger Prawns and Saltwater Barramundi, commercialisation of the marron pedigree and the first
commercial harvest of farm grown abalone by Bayside Abalone in Bremer Bay.

The goal now is to sustain and grow these developments. We are not inherently better at this than anybody else
in the world and indeed many investors see little reason to invest here, when they can achieve far more in the
short term in developing countries with cheap labour, cheap land and few controls. I believe that this is a mistake
on their part. Aquaculture will only succeed in the long term where it is seen as a sustainable and productive
industry, which is supported by a development and regulatory framework laying out the roles of industry,

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17th ACWA Annual Report 2004-2005

government and community. This is something we are on the way to achieving in WA, but it is not something that
we can do by ourselves.

Where there are expectations of us that far exceed that of our competitors and even that of the communities we
live in, there has to be more government support, both in terms of services and financial assistance. For
example many testing regimes also benefit our local communities and these costs should be shared.
Governments these days are looking to hive off services they previously offered as a community service. At the
same time as they place ever more onerous monitoring & testing regimes on our businesses, they are allowing
more & more imports of dubious origin into the country to compete against our own products, with few apparent
controls in place. Just another example of the “level” playing field that we have to deal with.

Also the communities that we live within must be made to understand that aquaculture can be both
environmentally and economically sustainable and given the chance, be a valuable member of their community.
Aquaculture has the potential to create jobs in regional areas, improve marine environments, provide sustainable
production, restore degraded marine populations and be the ‘canary’ of our marine and freshwater
environments. The misinformed must not be allowed to control the agenda. For example, a relatively small group
using guerilla tactics to push their point of view has hijacked the issues surrounding the proposed tuna farm in
Esperance. It is up to proponents and organisations like ACWA to present a united face and reasoned argument
based on provable facts to counter these claims and show that aquaculture can be and is an acceptable
member of the community.

Finally, I would like to acknowledge the efforts of people who without their knowledge and contributions ACWA
would be unable to retain and expand its role in servicing the needs of the aquaculture industry in WA.

Firstly I’d like to thank my fellow board members who keep us all honest and who have kept ACWA alive over
many years and through many challenges.

Special thanks go to Murray Konarik whose commitment and expertise gave the board that extra depth that is so
often required by organisations such as ours. Unfortunately his expertise is also required elsewhere and Murray
has to leave us. ACWA has been fortunate to co-opt Stephen Hood who also works for MG Kailis and who has
vast experience through his industry involvement and through his role on the Ministerial Advisory Council the
ADC. Stephen will be a valuable addition to the board. So we welcome Stephen onboard.

After years of valuable service, due to ACWA funding constraints ACWA has had to discontinue Val Sheahan’s
contract. This is a direct result of ACWA’s need to restructure its human resources. Val has been a key team
member and assisted ACWA for over a decade to achieve its goals. Val will be truly missed although having
taken up a position with WAFIC we do not lose her presence entirely.

Our Volunteers-Carolyn Jenour and Kate Crass whom have been invaluable to ACWA in our time of need. We
wish both Carolyn & Kate well in their choice of careers.

And last, but certainly not least, our thanks go to our Executive Officer, Dan Machin. Dan had some fairly large
shoes to fill, but I wouldn’t accuse Dan of having big feet as he is proving to be very nimble when it comes to
dealing with issues that confront industry. I believe Dan’s depth of knowledge in the workings of government, his
own hands on experience in aquaculture and his unwaveringly positive outlook on life has raised the profile of
ACWA to another level. ACWA’s ability to work with the government, community, and industry and to service the
needs of its members is a key component of Dan’s work and I believe he has carried this out admirably. I am
sure I speak for the board as well, that we look forward to working with Dan over the next 12 months. They will
be interesting times.

Steve Parsons
Chairman
21 October 2005

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17th ACWA Annual Report 2004-2005

Directors Report

Your directors present their report on the Aquaculture Council of Western Australia Inc. for the financial year
ended 30 June 2005.

Directors

The following people were Directors of ACWA during the financial year and up to the date of this report:

Chair Ms Bronwyn Harries Director Mr Murray Konarik

Vice Mr. Rick Scoones Director Dr. Bruce Phillips


Chair

Director Mr. Glenn Dibbin Director Mr Steve Parsons

Director Mr. Dan Sampey Director Mr Shane McLinden

Director Mr Greg Jenkins

REVIEW OF OPERATIONS

Overview
In the year to June 30 2005, income and expenses was $193,797.62 and $183,042.93 respectively. . Of the
income $8045.45 was attributable to member’s subscriptions and $5250 from secretariat services purchased by
four sectors associations (AMWING, YPA, WAAAA and WAMPA). The remaining $180,502.17 came from
Getting the Drift Seminar, and various projects undertaken and managed by ACWA totaling $55,502.17 and a
$125,000 Minister of Fisheries through the Development and Better Interest fund peak industry body.

Consequently, the ACWA has finished the year with a net income $10,754.69, this sum does not include
$37,855.00 of deferred income for projects that will be achieved in 2005/06 (Appendix 1). Despite this positive
position, ACWA has challenging outlook, with the reduction of DBI peak industry funding to $80,000 for 2005/06,
with the Council needing to raise $45,500 p.a of income to provide full service program to members over
2005/06 and beyond.

Principal Activities
The principal activities during the financial year ended 30 June 2005 comprised of the representation and
promotion of the Western Australian Aquaculture Industry.

Results
The net profit/loss of $10,754.69

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17th ACWA Annual Report 2004-2005

ACWA’S Business Programs


Aquaculture for Profit
Progress was made during the year towards our goal of creating a world best practice environment for
aquaculture industry development in Western Australia. The focus of year was to ensure the fundamentals of
tenure (leases and long term licences), site access and spray drift were delivered by government. The journey
of course is a perpetual one and much still needs to be achieved.

Aquaculture Development and Legislative Review


ACWA worked tirelessly to ensure the implementation of Aquaculture review recommendations during 2004/05.
Given the 4 year time frame to complete the review, there is no time for contingency, as such ACWA was
concerned about the outcome of the State election and that it could risk the progress of the reform agenda. It
was on this basis, ACWA worked to ensure that there was bipartisan support for the Review’s recommendations.
In addition, ACWA lobbied to make certain that the new ADC was in place prior to the State election so that the
reform agenda was able to be progressed. This included facilitate industry nominations for the ADC, and
ensuring the DoF provided the Cabinet minute for the final meeting prior to calling of the Election.

WA Aquaculture Implementation Strategy (5 year Plan) Industry Development, Investment and marketing
Solutions
The Western Australian aquaculture industry needed a clear strategy and architecture in terms of both industry
development and strategic marketing. To date, this has been a major deterrent to securing the $160-200 million
of private investment needed to bring the industry to fruition and to meet its projected targets. Western
Australian aquaculture projects compete for investment capital with aquaculture projects in other parts of
Australia and indeed for projects in other sectors. Without the implementation of a coherent and achievable
industry development and strategic marketing plan, Western Australian aquaculture projects will continue to lose
investment capital to Eastern States counterparts and other industries, leaving it to languish in its current state of
uncertainty and questionable investment potential.
The completion of stage 1 of Investment Attraction and marketing Implementation strategy have been an integral
part in formulating the industry’s and government focus and define critical roles and responsibilities in bringing
the WA aquaculture industry to fruition. ACWA would like to that all the industry reference group and Steering
Group members in their efforts to bring this project to completion.

Aquaculture Leases for Coastal Waters


Regrettably another year has past and aquaculture leases application have not been made available to the
aquaculture industry. To date industry has waited 1 year and 188 days since gazettal of the FRMA amendments
that would enable leases to be issued.

Over the past 12 months ACWA has consistently lobbied the Minister of Fisheries, the DoF Fisheries Executive
Director, and its Aquaculture Program, plus the ADC regarding this industry development priority. The outcome
of these efforts is that the DoF has committed to November 2005 the application for leases will be issued.

Cockburn Mussel Industry Leases


ACWA has been working with WAMPA, the ADC and DoF to gain security of tenure for the lease sites in North
and South Kwinana Grain Terminal and Southern Flats is achieved.

Over the year we gained a commitment from ADC to contract a lawyer or pay the Fremantle Port Authority to
draft the head lease and lease documentation. The DoF also has waived the lease fees until the leases are
resolved. This year’s program ACWA has worked with WAMPA to submit an application for Southern Flats
extension.

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17th ACWA Annual Report 2004-2005

Long Term Licences


Despite government’s support and agreement on long term licences as a key area of importance in investment
attraction, the ACWA has not been able to get Department of Fisheries to commit to a timeline. This is despite a
formal recommendation on the matter requested by ACWA through the ADC.

Natural Resource Management (NRM) Groups


The NRM program is the largest coastal and marine community based project in Australia. The program has the
potential to significantly shape opinions and views of many people in regional communities. In fact, the South
Coast Regional Initiative Planning Team (SCRIPT) showed that it has the ability to significantly impact the
communities understanding of aquaculture. Such actions run the risk of communities, based on biased
information, deciding not to support the allocation of sites for aquaculture purposes. This access is critical to the
emerging WA aquaculture industry. This risk is real, especially when the groups are well resourced and
ideologically driven against any economic development. It is on this basis the aquaculture industry seeks your
influence to ensure official checks and balances are placed in the structures and the process.

Through the year ACWA learned to navigate its way through the NRM program. In the first six months, ACWA
lobbied to ensure that NRM process set up marine reference groups around the State, which culminated with its
invitation to Marine facilitators planning workshop. In addition, ACWA provided submissions to all 6 NRM groups
Strategic Investment Plans and discussion papers to ensure that the industry was presented in an accurate light
and that specific strategic projects were identified. ACWA also requested it be represented on the NRM Joint
Steering Committee as an industry representative.

State Marine Planning Policy


ACWA has successfully lobbied to ensure that it’s represented on the State marine Planning Key Stakeholder
reference Group.

Spray Drift
On March 22 & 23 ACWA hosted the “Getting the Drift” seminar and workshop to assit is in its lobbying and
awareness-raising efforts. The Getting the Drift seminar was a critical step in creating focus on this key issue to
the aquaculture industry, but, more importantly, it demonstrated to government that both industry and the public
wanted changes in how pesticide use was legislated and managed in WA.

Legislative Changes
In late June ACWA was advised by Department of Agriculture that the drafting of the Biosecurity and Agriculture
Management Bill is underway. This advice made good Minister Kim Chance’s long standing promise that the
Biosecurity and Agriculture management Bill was a legislative priority. The Bill now has had its drafting rating
moved from “BB”, where it has been for 7 years, to “AA”, the highest priority. The Minister’s goal is to have the
Bill ready for its first reading in parliament in September 2005.

The Bill will provide the head powers for a series of yet-to-be drafted regulations that should see arrangements
such as mandatory sensitive neighbour notification and mandatory training for chemical users implemented.
ACWA has been asked to join the Over-arching Reference Group which will work with the State Solicitors’ Office
and other industry groups to finalise the Bill and the regulations. As such, ACWA will be in the best position to
protect aquaculture’s interests.

Policy Changes
Given that Western Australia has no inter-departmental adverse impacts investigation protocol, ACWA is
pleased to see that following the Getting the Drift seminar Dr Margaret Stevens, chair of the Pesticide Advisory
Committee (PAC), decided to implement a review of pesticides policy, legislation and administrative
arrangements.

The aim of the review is to recommend the best approach to the development of a modern, consolidated
legislative basis for the control of the use of pesticides, and to write a discussion paper setting out the policy and
administrative arrangements which will underpin the new legislative framework for the control of the use of
pesticides in Western Australia. To ensure that the aquaculture industry’s interests are catered for ACWA has
been invited by the Department of Health, to be one of the industry reference group members.

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17th ACWA Annual Report 2004-2005

Interim Measures
Whilst the aquaculture industry has been given assurances that the legislation, regulations and the PAC review
will be completed and implemented in 12 months ACWA has called for the implementation of fundamental
interim arrangements, especially in the areas of awareness-raising and adverse-impacts investigations, as the
current arrangements will continue to conspire against the development of vulnerable industries.

ACWA has raised this matter with Minister of Fisheries, Hon Jon Ford, Minister for Agriculture, Hon Kim Chance
and Minister for the Environment, Dr Judy Edwards. On 30 June ACWA met with Dr Edwards. Minister
Edwards was very interested in this issue. She stated she would ensure the matter would be raised at the
Ministerial Council on Health, Environment and Industry Sustainability at its meeting on 9 August.

ACWA’s provided publication useful tips on steps aquaculturist can use do to better manage the risks on their
own property, and Getting the Drift seminar reports.

ACWA would like to thank the following people in their assistance, Peter Rutherford (DoAg), Anne-Marie Penna
(Conservation Council WA) Rick Scoones, Dr. Brian Jones (DoF), Warren Moore, Dr Mark Gibberd, CURTIN.
And the Marron Growers Association, Yabby Producers Association, the Forest Products Commission,
Department of Fisheries and Chemcert for their generous sponsorship.

Planning Bulletin for land based Aquaculture


Regulatory risk posed by local government is considerable Aquaculture ventures, especially in the Southern,
Great Southern and Goldfields and Esperance regions. The delays in processing applications places
considerable angst and uncertainty for applicants that impacts on investor confidence. To address this ACWA
drafted a Planning Bulletin for consideration of the Department for planning and infrastructure.

Submissions on Government Policy & Fisheries Management papers, leases, licences, variations and
translocation applications
ACWA provided a total of 66 letter and submissions over the 2004/05 year, see Appendix 1 for a summary.

Key Policy Officer Relations


ACWA has maintained relationships and networks with the following Ministerial and Departmental policy officers:
The Minister of Fisheries, the Minister of Health, the Minister of the Environment, Minister for Planning and
Infrastructure; Department of Premier & Cabinet, Department of Environment, Department of Conservation and
Land Management, Department for Planning and Infrastructure; Department of Fisheries (Aquaculture program,
community relations, research, legal); Department of Health.

Industry Performance Statistics


To improve the situation ACWA has been trying to obtain online reporting implemented by the Department to
improve the efficiency and effectiveness. This will be pursued as part to the 2005/6 proposed FRMA
amendment Bill and Parliamentary inquiry into the FRMA. In 2005/06 the Aquaculture production returns will be
able to be lodged quarterly inline with Business Activity Statements (BAS).

Environmental Monitoring (EM) and reporting


Given the costs of compliance with EMP at the early stage of a project’s development ACWA has been working
with DoE and DoF to develop an EMP that is commensurate with the environmental risks of the stages of a
project development. In addition, ACWA has been advocating the need for DoE to improve the efficiency and
effectiveness by standardising licence conditions, make provision for online records and provide pro-forma EM
plans for species sectors.

Research
Requested the DoF to investigate the actual levels of trace of heavy metal analysis in Calcium nitrate.

Broodstock Exemption Fees


ACWA successfully lobbied for the reduction of the Exemption application fee from $1250 to $250.

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17th ACWA Annual Report 2004-2005

Marron Pedigree Commercialisation


ACWA, with the Marron Growers Association and the DoF developed commercialisation scenarios, which
resulted in the proposed EOI process. ACWA agreed to sit on the EOI selection committee, and provided
comment DoF selection criteria.

Albany Port Authority


Commenced negotiations with the Albany Port Authority to extend its leases from 5 to 21 years.

Department of Fisheries Aquaculture Development Officer exit strategy


ACWA developed, based on industry survey, a business plan for small scale industry development and
education program for the next three years. This program will see the development of an industry based
extension service.

Abrolhos Island Management Advisory Committee (AIMAC)


Given the significant presence of aquaculture business on the Abrolhos Islands ACWA commenced advocating
for the need for a permanent position for Aquaculture on the AIMAC. The Minister has agreed in principle to
this, however, ACWA needs to secure a timeline to complete this position.

Representation
Positions Held By Directors and Executive of ACWA On Behalf Of The Organisation And Other Associations

Board Member Committee & Working Group


Western Australian Representative FRDC Abalone Sub-Program
Steve Parsons WAAAA Committee
South Coast Regional Initiative Planning Team (SCRIPT) Marine Reference Group*
ACWA Finance subcommittee*
Rick Scoones ACWA Industry Promotion subcommittee*
WA Fishing Industry Council (WAFIC) Native Title Subcommittee*
National Aquaculture Council board member*
WAFIC board member*
WAFIC Research & Development Sub-Committee*
Bronwyn Harries
ACWA Industry Promotion subcommittee*
WAFIC Industry Profile Committee*
ACWA Finance subcommittee*
Chair - Australian Abalone Association
Shane McLinden Seafood Enterprises Alliance
South Australian Abalone Growers Rep on South Australia Aquaculture Council
State Fisheries Research Advisory Board (FRAB)
Seafood Quality Management Initiative (SQMI) steering committee
FRDC Rock Lobster Post-Harvest Program
Stephen Hood Chair - Midwest TAFE Marine Industry Advisory Council
Curtin Uni Aquaculture Course Review Committee
Rock Lobster Industry Advisory Committee R&D Sub-committee
Joint Trawl Ministerial Advisory Committee
Seafood Quality Management Initiative (SQMI) steering committee
Australian Shellfish Quality Assurance Advisory Committee
Glenn Dibbin
WAFIC Representative Cockburn Sound Management Committee
Chair - WA Mussel Producers Association
FRDC Rock Lobster Post-Harvest Program
Bruce Phillips
FRDC Rock Lobster Enhancement and Aquaculture Sub-Program
State Fisheries Research Advisory Board (FRAB)*
Greg Jenkins Challenger TAFE Centre Industry Advisory Committee on Training
ACWA Industry Promotion subcommittee*
Secretary of Marron Growers Association
Dan Sampey
Management Committee for the Marron Genetic Research Program

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17th ACWA Annual Report 2004-2005

Executive Officer Committee & Working Group


Fish Resources Management Act Amendment Bill working Group*
Marine Protected Area Compensation Working Group*
Overarching Reference Group for the Biosecurity & Agriculture Management Bill*
Regulation Reference Group for the Biosecurity & Agriculture Management Bill*
Challenger TAFE Co-management Training Working Group*
Steering Committee of Improve Marron stocks tenders*
ACWA Industry Promotion subcommittee*
Aquaculture Environmental Monitoring Conditions Working Group*
Dan Machin WAFIC Occupational Health and Safety & Training Sub-committee*
ACWA Finance subcommittee*
CURTIN Univ Aquaculture Course review committee*
National FRDC ESD working group*
Plantagenet Community Consultative Group*
FRDC Marron Project Steering committee*
FRDC Aquatic Animal Health FRDC Sub-programme*
Vice Chair, Shellfish Industry Council of Australia
Challenger TAFE Centre Industry Advisory Committee on Training*

* denotes representation made on behalf of ACWA.

Aquaculture for People


Events

Mussel Festival 2005


This event was held on Sunday 17 March, 2004. The ACWA and the Western Australian Mussel Producers
Association presented and staffed a shared display booth. The key messages were the promotion of the mussel
sector, ecological sustainable development and the new mussel code of practice.

Getting the Drift – Seminar and Workshop


The Getting the Drift seminar brought together a group of nine expert speakers and examined practical
measures for agri-chemical users to reduce the risks of spray drift, as well as the current status of research,
legislation and regulation, and incident management issues concerning off-target spray drift.

The seminar was open to the public, and the resulting 75 participants represented a range of 42 industry and
business sectors, government departments and community interest groups.

Training

Leadership Training
ACWA is pleased to announce that the Department of Fisheries has contributed $5000 for ACWA to arrange for
leadership training for 10 leaders in WA industry. It is ACWA’s intention to seek another $5000 from Dept. of
Local Government from its: Building and empowering sustainable communities fund”. This training will take
place in 2005/06.

Promotion & Communication

WA Onshow
Over 1600 people visited the booth, and at peak time 500 people an hour past the booth. The theme of the
booth was Aquaculture the Blue revolution – building sustainable regional Western Australian communities.

World Aquaculture 2012 Conferences and Exhibitions

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17th ACWA Annual Report 2004-2005

EO attended WAS 2005, Bali to arrange the visit of John Cooksey in January 2006.

ACWA News
ACWA has published on one edition of ACWA news in 2004/05.

ACWA website
To ensure ACWA is able to improve the efficiency and effectiveness of industry consultation and communication,
the board undertook to redevelopment its website over second half of 2004/05. The new site will be launched in
October 2005. The aim is to make the site a gateway to information, in particular products and services. The
new site will provide online directories to hatcheries, equipment suppliers, consultants, jobs board. In addition,
there will be member only area were additional resources and details on ACWA activities and submissions will
be posted.

Media releases
ACWA continues to provide regular with a total of ten (10) media releases and interviews.

ADC Industry Issue Papers


Provided background papers to all of the Minister Advisory Committee, the Aquaculture Development Council
(ADC) meetings.

Aquaculture for Tomorrow


Abalone Environmental Code of Practice
The ACWA assisted WAAAA in the development of its Environmental Code of Practice along similar lines to that
developed for the mussel and black pearl sectors.

Animal Welfare
DoF has commenced consulting with industry with regard to legislation for fish welfare. The ACWA position was
that Codes of Practice need to be voluntary and not enshrined in the legislation. ACWA provided comment to
the DoF on its position paper.

Corporate Services

The ACWA board has developed a new strategic plan and operational plan for 2005 to 2008. The plan focuses
on improving member’s services – through improved communication networks, training and representation. The
plan will result in improving ACWA’s ability to move its private to public fund ratio from 1:10 to 1:1.

Membership
ACWA direct membership represents 272 people involved in the Western Australian Aquaculture Industry.
These businesses are responsible for over 90% of the current and prospective aquaculture industry GVP.

Aquaculture Sector Associations Number of


Members
Marron Growers Association Inc 137
Yabby Producers Association Inc 9
Silver Perch Association Inc 15
Western Australian Mussel Producers Association Inc 7
Great Southern Aquaculture Association Inc 14
Western Australian Abalone Association Inc 11
Marine Fishfarmers Association Inc 8
Kimberley Aboriginal Aquaculture Corporation 17
AMWING Pearl Producers Association 15

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17th ACWA Annual Report 2004-2005

Table 1: Memberships numbers of Aquaculture Sector Association


members of the Aquaculture Council of Western Australia.

Flowing from the need of ACWA to broaden its member base a ACWA has prepared discussion papers on
constitutional changes, the new electorate system for board positions, and membership fee schedules. These
papers are commended to the members for their consideration at a Special General Meeting.

Discount programs
The Aquaculture Council of Western Australia as part of its commitment to reduce costs to its members has
negotiated the following discounts:

• Shoprite ACWAcard
• 20% off Fish Farm International.
• $40 discount on Austasia Aquaculture Magazine
• $25/h discount on Englehart Consulting, business consultants, specialising in agribusiness.

Database management
ACWA has implemented a new SQL based system that holds contact details of industry members, Ministers,
Shadow ministers, key policy advisors and departmental staff. Note that the member registry is kept in
confidence.

Industry Levy
ACWA prepared discussion papers on levy business plan and required constitutional changes. Ultimately, to
provide the level of service detailed in the business plan ACWA needs to secure $172,000 per annum in base
funding. The levy, if supported by all sectors, in its current form allows for $41,075 to be raised. ACWA is
seeking a better understanding of the peak industry body funding arrangements for ACWA, under the DBI
funding, given the ACWA BDIF contribution will be reduced to $80,000 in 2005/06.

Significant changes in the State of Affairs

In the opinion of the directors, there were no significant changes in the state of affairs of ACWA that occurred
during the financial year, not otherwise disclosed in this report.

Matters subsequent to the end of the financial year

Except as disclosed in the financial report, no other matter or circumstance has arisen since 30 June 2005 that
has significantly affected, or may significantly affect:

1. the operations of ACWA in future years


2. the results of those operations in future years, or
3. the state of affairs of the company in future years.

Likely Developments and expected results of operations

Further information on likely developments in the operation of the Council and expected results of those
operations have not been included in this report because the directors believe it would likely result in
unreasonable prejudice to ACWA.

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17th ACWA Annual Report 2004-2005

Meetings of Directors
The number of meetings ACWA held during the financial year ended 30 June 2005 and the number of meeting
attended by each director are set out below.

Number of Directors Number of Directors


meeting held During the meeting attended during
financial Year the financial Year

Chair Mr Steve Parsons 10 9


Appointed
Vice Chair Mr. Rick Scoones 10 5
Appointed
Director Mr. Glenn Dibbin 10 8
Appointed
Director Mr. Dan Sampey 10 6 (available for 8)
Appointed
Director Mr Murray Konarik 10 7
Appointed
Director Dr. Bruce Phillips 10 6
Appointed
Director Ms Bronwyn Harries 10 9
Appointed
Director Mr Shane McLinden 10 5
Appointed
Director Mr Greg Jenkins 10 10

We commend our report to you and look forward to playing a part in pursuing aquaculture industry in Western
Australia.

Steve Parsons
Chairman
On behalf of the Board of Directors of ACWA

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17th ACWA Annual Report 2004-2005

Appendix 1: ACWA Financial Report

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17th ACWA Annual Report 2004-2005

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