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During the year the ACCC concluded
its review of the Hunter Valley Access
Undertaking 2013 Annual Compliance
Assessment, which resulted in a change
to the cost allocation methodology and
timing of cost recoveries by the Group,
with a resulting reduction in revenue
from 1 January 2013 to 30 June 2016.
The final outcome will not be known until
the ACCC reviews the 2014, 2015 and
2016 Annual Compliance Assessments.
However, a full provision has been made
for the estimated amount repayable as at
30 June 2016. The adverse revenue and
profit and loss impact of the provision
for the year of this decision amounts to
$69.5 million. Refer also to notes 4 (viii),
5(a) and 6(e). The resulting revenue
reduction is recoverable in future years.
The Hunter Valley Access Undertaking
expired at 30 June 2016 with the parties
being unable to conclude the terms of
the replacement Undertaking. As a result,
the ACCC has approved a six month
extension of the current Undertaking
to enable the parties to continue
negotiations of the new Undertaking.
There were no other significant changes
in the state of affairs of the Group during
the year.
SIGNIFICANT EVENTS
AFTER THE BALANCE
DATE
Both the Interstate and Hunter Valley
business units were affected by
protected industrial action during August
2016. Unions issued notices of action
as part of negotiations underway for
the NSW Enterprise Agreement which
covers 528 staff in NSW.
The action took the form of work bans
and most significantly a series of 24 hour
stoppages which caused major disruption
to ARTC passenger, coal and freight
operator customers. The Agreement
was put to a vote of employees in mid-
August 2016 and a majority of employees
voted to approve the Agreement.
The protected industrial action ceased
after this vote. At the time of signing,
the Agreement has been lodged at the
Fair Work Commission for certification
under the Fair Work Act.
It is the opinion of the Directors of
the Group that no other event has
arisen that would significantly affect
the operation of the Group, the result of
those operations, or the state of affairs
of the Group in future financial years.
LIKELY DEVELOPMENTS
AND EXPECTED RESULTS
OF OPERATIONS
Likely developments and the expected
results of operations of ARTC are
contained in the Chief Executive
Officer’s and Chairman’s Report.
DIVIDENDS -
AUSTRALIAN RAIL TRACK
CORPORATION LTD
On 2 November 2015 the Group
made a payment of $26.8 million to
the shareholder as the final dividend
for the 2014/15 financial year.
On 29 April 2016, the Group made
a payment of $64.5 million to the
shareholder as an interim dividend.
The final dividend for the 2015/16
year will be determined upon finalisation
of the accounts targeting payment in
October 2016.
DIRECTORS’ REPORT (CONTINUED)
42