AGS ANNUAL REPORT 2010–2011

CEO's review

This year has seen some highly positive outcomes for AGS, despite significant challenges.

AGS’s work this year again covered all aspects of government policy, programs and legislation. We performed legal work for more than 160 government agencies across a wide spectrum of legal areas.

In the latter part of 2010 we provided substantial constitutional advice concerning the federal election and subsequent hung parliament. In early 2011, we assisted several government agencies following the natural disasters in eastern Australia. We continued to advise on key policy areas – health, education, climate change, water, taxation and gambling reforms.

We also continued to represent the Commonwealth and assist the First Law Officer with significant constitutional matters before the High Court. Some of the services we provided are highlighted in the articles that feature throughout this report.

We exceeded our corporate plan profit target for 2010–11 with a profit of $6.08 million. However revenue for the year was below plan and below that of the previous year. That we met our target reflects our ability to manage our business well, cut costs and make efficiency gains when needed.

Our annual client survey delivered excellent results. Our overall client satisfaction rating was 78% – an increase of 5% on last year. Clients’ comments in the survey were highly gratifying and underlined a sound understanding of the depth of AGS’s talent and an appreciation for our client service.

This year we undertook a substantial restructure of our legal practice together with a review of our internal governance structures and our corporate services. We believe these organisational changes will bring about major benefits to AGS and to our clients.

The restructure of our legal services into 3 national practice groups (the Office of General Counsel, AGS Commercial and AGS Dispute Resolution) will better enable us to draw on all of our resources, regardless of location, to meet client needs. We will be better placed to meet the challenges of our changing market and to remain strong and sustainable into the future.

I wish to thank all who worked hard throughout the year to make the restructure a reality. Change is never easy, but as we go forward we will see the benefits of our efforts.

The government legal services market remains difficult. As in previous years, we experienced a substantial reduction in work as a result of various factors, including a greater reliance by agencies on in-house counsel. We expect this will continue and the challenges in the market will be even greater in the coming year. From a whole-of-government perspective, we remain concerned about the potential for adverse consequences for the Commonwealth’s ability to conduct major litigation.

AGS’s Corporate Plan 2011–14 aims to address the challenges facing us. It includes strategies for strengthening our market position, providing a consistently high standard of solutions-focused advice for clients and operating our business more efficiently.

We, and our clients, welcomed the Attorney-General’s reassurance in February that the outcomes of the Blunn–Krieger Review would not adversely affect our structure, governance or role. It was heartening to hear the Attorney-General’s obvious support for AGS and the role we play for government.

We now look ahead with interest to forthcoming changes to the procurement of legal services and to assisting the Government to achieve the most efficient and effective means for the delivery of legal services.

I extend my thanks to our shareholder Ministers and to the AGS Advisory Board for their guidance this year, and to all our clients for their continuing support and commitment to AGS.

I thank also my AGS colleagues for their high-quality work and commitment over the past year.

We look forward in 2011–12 to continuing to provide our clients with the best possible legal services and through them supporting the Attorney-General as First Law Officer and the Government as a whole.

Ian Govey
Chief Executive Officer