For the second straight year we saw an increase in total revenue, but that increase was only 3% compared with over 20% in the previous year. Moreover, revenue in the second half of the year was significantly less than in the first half as property market activity was affected by higher interest rates.
Expenditure also increased for the second year in a row, but by nearly 5% compared with less than 1% in 2004/05. While in part this is because the depreciation for our investment in IRIS is now on the books, the other significant factor is the staff resources we are now having to put into preparation for title registration. Nearly 10% of the total strength of the department is now engaged in preparation for title registration. For managerial and professional staff the proportion working on title registration is even higher, at over 25%. Over the coming several years we will need to increase the number of staff working on title registration even further, while at the same time maintaining the full extent of our deeds registration services. Achieving greater efficiency improvements with existing services is an important objective for the department. This will allow us to free up the resources needed for title registration and contain pressure for fee increases if revenues weaken.
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