It is with considerable pleasure that I report Landcom's achievement of a net after tax profit of $31.2 million during the 2009-2010 financial year.

This result is $5.8 million better than forecast in the Corporation's Statement of Intent and has enabled us to return to the Government $64.4 million by way of dividends and income tax equivalent payments. There has been an equally satisfactory achievement of most of our non-financial targets as is evidenced in the balance of this year's Annual Report. It is noteworthy that since corporatisation in 2002, our returns to Treasury have exceeded $660M; Landcom is self-funding and adheres strictly to the principles of competitive neutrality.

Fortunately, Australia has avoided the worst of the effects of the global financial crisis, but in its wake there has been a significant structural change in our industry; development finance is now subject to more stringent loanto-value ratios and higher pre-sales requirements. Potential development partners and builders are now looking to Landcom to absorb a larger share of risk and to contribute a greater degree of equity funding than has been the case in recent years.

Landcom has responded positively, and this has enabled the Corporation to engage in a diverse range of strategic and complex projects which have added significantly to the State's economic activity. In our partnered projects and in developments such as Oran Park, we invested more than $100 million in infrastructure works which contributed in no small measure to sustaining the industry during a general downturn in activity.

While Landcom is now heavily involved in urban renewal and the design and construction of new town centres, we continue to develop broad acre land and to create places which are  seen as the benchmark for sustainability and excellent community facilities; the building of social capital in our developments is seen as a crucially important element. And although Landcom is not responsible for land supply, our work makes a tangible contribution; we often unlock privately owned land by providing trunk services in close proximity, thereby encouraging early development.

That our close and effective partnerships with private sector developers and builders are both a mutually desirable and efficient delivery mechanism is beyond question; risks are shared, capital exposure is limited and a twoway transfer of knowledge and skill abounds. Through Landcom, the private sector is often able to participate in projects to which it might not otherwise have access. This is particularly so in respect to developments involving government-owned land or those that may otherwise be deemed to be too risky or complex in nature.

Although the provision of low cost housing is not one of Landcom's legislated responsibilities, we are acutely conscious of the difficulties faced by moderate income families who want to buy their own home. In its endeavours to address the affordability problem, Landcom continues to innovate and to develop a diverse range of products and housing designs that aim to meet the moderate income market. Indeed, it was the ready availability of entry level products that enabled Landcom to meet much of the demand from first home buyers seeking to take advantage of the generous Commonwealth and State Government grants.

For some eight years now, the Board has engaged in programs to evaluate its own performance. This year we  arranged some independent one-on-one interviews with a broad cross-section of builders, developers, contractors, consultants and other industry representatives to ascertain their views about the organisation; what was good and what needed to change or to be improved for us to achieve the status of an organisation of excellence.

The candour and quality of the responses were very encouraging and led to Landcom embarking upon a business improvement program which has involved the entire staff. Such has been the success of the program that we have progressively shared the results with the survey participants, who appear genuinely pleased to have been involved in what is an ongoing program.

Looking ahead, the Board envisions an expanded role for Landcom in implementing much of the Government's plan for transit-oriented developments. Over the past 15 years, the Corporation has gathered to itself a valuable reservoir of development skill and knowledge which is daily evidenced in the performance of its people. We are excited by the prospect of being able to assist the Government with the work of its proposed Metropolitan Development Agency.

Landcom's results during the past year are directly attributable to the vision of the Managing Director, Mr Sean O'Toole, the excellent support and direction of the Senior Executive Team and the outstanding work of the staff who, although stretched, have again performed with distinction. The Board joins me in thanking them all most sincerely.

Last, my thanks go to my fellow directors, whose advice and support I value greatly; they make a most significant contribution to the direction, growth and wellbeing of the enterprise. After eight years of distinguished service, Ms Gae Raby has retired from the Board of Directors; her contribution has been invaluable and she will be missed greatly by us all.

 
William Kirkby-Jones AM
Chairman