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Budget Paper 2


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Industry, Science and Resources

Extension of the Shipbuilding Production Bounty

Expense ($m)

Explanation

This measure honours the Government’s 1998 election commitments set out in Making Industry Stronger and A Stronger Tasmania to extend the Shipbuilding Production Bounty to support the development of a stronger and more sustainable Australian shipbuilding industry.

The Government extended the Shipbuilding Production Bounty from 1 July 1999 to 31 December 2000. The Bounty will be payable at a reduced rate of 3 per cent of eligible production costs, with a run down period over three years to 2003.

Further Information

For a vessel to be eligible for the Bounty, final contracts need to be in place by 31 December 2000 and the vessel delivered by 31 December 2003. Ships exported to New Zealand are ineligible.

Parliament recently passed the Bounty (Ships) Amendment Act 1999, which allows for the extension of the Shipbuilding Production Bounty. Only shipbuilders registered under the Act are eligible.

Establish Printing Industry Competitiveness Scheme

Expense ($m)

Explanation

The Government will allow book printers to claim 4 per cent of the purchase price of all paper inputs used in the production of eligible books completed on or after 1 January 1999 but before 1 July 2003.

This measure meets the Government’s 1998 election commitment to the printing industry, set out in Making Industry Stronger, to address the imbalance where average duty of 4 per cent is payable by Australian printers on paper products, while the importation of competing books is tariff free. The Print Industry Competitiveness Scheme will encourage new investment in the industry and secure jobs.

Further Information

To minimise compliance and administrative costs, payment of a lower across the board rate of 4 per cent (average duty paid) on all paper purchases, whether duty is payable or not, is proposed. Book printers will be required to keep records of the use of paper inputs and may claim back 4 per cent of the purchase price, whether or not the paper was actually imported.

Upgrade Tasmanian sporting facilities

Expense ($m)

Explanation

The Government will fund the upgrade of York Park in Launceston ($5.0 million in 1998-99) and Bellerive Oval in Hobart ($5.0 million in 1998-99) to ensure that international, national, and other major sporting events continue to be held in Tasmania. This meets the Government’s 1998 election commitment set out in A Stronger Tasmania.

The upgrade of these facilities will contribute to developing a stronger, sustainable and internationally competitive Australian sport and recreation industry. This will increase the ability of York Park and Bellerive Oval to attract major Australian and international events (eg cricket test matches) and greater tourist numbers through more widely available, high quality sporting facilities.

Support domestic tourism campaign

Expense ($m)

Explanation

The Government will support a comprehensive (Commonwealth/State/industry) domestic tourism "attitudinal change" campaign to help build a stronger, sustainable and internationally competitive Australian tourism industry. This meets the Government’s 1998 election commitment announced in Australia Bound.

With a focus on the diversity, quality and accessibility of Australian tourism, the campaign aims to increase the level of expenditure on domestic tourism activities and employment, particularly in regional Australia by using strategies to reach and motivate target markets.

Further Information

The campaign will be industry-driven and Commonwealth support is contingent upon contributions from States, Territories and industry. An initial $2.0 million was allocated in 1998-99, with the remaining $6.0 million to be provided in 1999-2000.

Introduce Shipbuilding Innovation Scheme

Expense ($m)

Explanation

The Government will provide assistance to registered shipbuilders at a rate of 50 per cent of innovation expenditure for up to a total of 2 per cent of eligible production costs. The measure is designed to develop a stronger, sustainable and internationally competitive Australian shipbuilding industry by encouraging product research and development and design innovation.

The assistance provided in this measure meets the Government’s 1998 election commitments set out in Making Industry Stronger and A Stronger Tasmania.

The Shipbuilding Innovation Scheme applies to eligible Research and Development (R&D) activities carried out by registered shipbuilders. Eligible R&D expenditure includes adaptive engineering directed at product and process innovation in the shipbuilding industry.

Further Information

Eligible costs may be claimed, provided they are incurred after 30 June 1999 and prior to 1 July 2004, and providing the vessel is completed before 1 July 2004. There will not be any payment on ships exported to New Zealand.

Parliament recently passed the Bounty (Ships) Amendment Act 1999, which allows for the introduction of the Shipbuilding Innovation Scheme. Funding for the measure will be offset from R&D START. See the related expense measure under the Industry, Science and Resources portfolio titled Reallocation in R & D START funding.

Reallocation in R & D START funding

Expense ($m)

Explanation

Following the Government's decision to introduce the Shipbuilding Innovation Scheme from within existing allocations, the Government agreed to reallocate funds from the R&D START Programme, which also provides funding for innovation.

The assistance provided and reallocation of funds meets the Government’s 1998 election commitments set out in Making Industry Stronger.

See also the related expense measure under the Industry, Science and Resources portfolio titled Introduce Shipbuilding Innovation Scheme.

Reversal of 1998-99 Budget decision to offset the Australian Geological Survey Organisation's offshore petroleum programme

Expense ($m)

Explanation

Funds of $21 million have been identified in the departmental expenses of the Department of Industry, Science and Resources, which will be used, in part, to fund the Australian Geological Survey Organisation’s offshore petroleum programme.

Further Information

See the related Industry, Science and Resources revenue measure titled Non-recovery for the the Australian Geological Survey Organisation’s offshore petroleum programme, and also the 1998-99 Budget measure under the Primary Industries and Energy portfolio titled Offsets for Australian Geological Survey Organisation’s offshore petroleum programme.

Department of Industry, Science and Resources - use of departmental expenses to partially offset election commitments and other measures

Expense ($m)

Explanation

The Department of Industry, Science and Resources will offset departmental expenses for election commitments, lapsing programmes and other Budget measures.

These savings are possible as a result of efficiencies and reprioritising.

Funding for the Australian Sports Commission

Expense ($m)

Explanation

The Government will guarantee support for sport and recreation by continuing the current funding arrangements for the Australian Sports Commission (ASC) from 2000-01 and provide additional funding of $1.8 million to assist Australia’s Paralympic athletes prepare for the Sydney 2000 Paralympics. This measure honours the Government’s election commitments in its policy statement The Winning Advantage, including those for athlete preparation for the Sydney Olympics and Paralympics.

The funding will enable maintenance of the national sports network developed by the ASC in consultation with all the States and Territories and with national sporting organisations.

Further Information

The ASC expects to obtain a further $26.6 million in revenue over the four years to 2002-03 from non-budget sources. The revenue is likely to come from contributions and fees for the delivery of programmes and services to national sporting organisations and government agencies.

Tough on Drugs in Sport

Expense ($m)

Explanation

The Government will fund initiatives to enhance current activity to deter the use of banned performance enhancing drugs. The major elements of the initiative include:

This measure meets the Government’s election commitment set out in Tough on Drugs – Strengthening the Fight and A Winning Advantage to combat the illegal use of drugs in sport.

Further Information

The $1.1 million cost of the international drugs in sport symposium is to be absorbed by the Department of Industry, Science and Resources. See the related expense measure titled Department of Industry, Science and Resources – use of departmental expenses to partially offset election commitments and other measures.

Maintain Commonwealth Scientific and Industrial Research Organisation funding

Expense ($m)

Explanation

The Government will provide additional funding in the forward years to maintain CSIRO’s funding at 1999-2000 levels.

Establish National Strategy for Biotechnology

Expense ($m)

Explanation

The Government will fund the establishment of:

Biotechnology Australia will develop a national strategy for biotechnology, a public awareness programme to provide information about biotechnology and gene technology, provide training in the effective management of intellectual property and secure better access to genetic resources and gene collections. It will also support a new Council of Ministers on Biotechnology.

The regulation of gene technology and its applications will operate in close collaboration with existing systems for the regulation of food, agricultural and veterinary chemicals, industrial chemicals and therapeutic goods.

This measure delivers on the Government’s election commitment in Primed for Growth.

Further Information

A new Council of Ministers on Biotechnology will be established, consisting of the Ministers for Agriculture, Fisheries and Forestry, Education, Training and Youth Affairs, the Environment and Heritage, Health and Aged Care and Industry, Science and Resources.

Negotiations with the States and Territories will be continued to secure their support and active involvement in the establishment of the statutory office on gene technology and its operations.

Funding for the statutory Gene Technology Office is provided for a two year establishment phase, with cost recovery to be applied once the system is fully operational.

Regional Minerals Programme - Northwest Tasmania

Expense ($m)

Explanation

The Government will provide resources for infrastructure development in north-west Tasmania, to implement the study currently underway within the Regional Minerals Programme. This measure will meet the Government’s 1998 election commitment announced in Minerals to Market.

Extension of Country of Origin Awareness Campaign

Expense ($m)

Explanation

The Government will assist consumers by extending the existing community awareness campaign on country of origin labelling. The major activity will be a community awareness campaign, primarily focused around a ‘look for labels’ message.

The campaign will seek to establish a greater marketing advantage in country of origin labels, encouraging Australian firms to voluntarily include such labels as part of their marketing strategy, rather than as a consequence of a legislative requirement.

This measure meets the Government’s election commitment set out in A Fair Deal.

Restoration of Urangan Pier

Expense ($m)

Explanation

The Government will provide funding toward the restoration of Urangan Pier in Hervey Bay, Queensland.

Restoration of Urangan Pier will contribute to a more innovative and competitive regional tourism industry as well as facilitate the growing level of tourism between Hervey Bay and the World Heritage-listed Fraser Island.

This measure delivers on the Government’s election commitment in National Action Plan for Tourism.

Enhancement of Regional Tourism Programme

Expense ($m)

Explanation

The Government will fund an expansion of the Regional Tourism Programme aimed at both international and domestic markets.

This measure implements the Government’s undertaking in its tourism policy statement Australia Bound. The additional funding will improve the capability of organisations, businesses and individuals to deliver higher quality tourism products and services in regional Australia through:

 Boosting Australia's Innovation and Science Culture

Expense ($m)

Explanation

The Science and Technology Awareness Programme is designed to raise community awareness of science and technology issues, to make science and technology interesting to children and to encourage them to undertake a science-based career. The programme includes the Australia Prize which is an international award for an outstanding achievement in a selected area of science and technology promoting human welfare.

The Government will review the Programme for report back in the 2000-01 Budget. Funding of core elements of the programme will be continued pending the review. Funding of $0.8 million for the Australia Prize has been continued for 2000-01, reflecting the significant lead times and the need to call for nominations well in advance.

This measure delivers on the Government’s election commitment in A Vision for Excellence.

Continuation of funding for the Pooled Development Funds Programme

Expense ($m)

Explanation

The Government will provide funding to administer the Pooled Development Funds Programme until 2002-03. The Programme contributes to the development of a stronger, sustainable and internationally competitive Australian industry by developing the market for patient equity capital, including venture capital, for growing small to medium enterprises.

This measure is to meet the Government’s election commitment announced in Making Industry Stronger. The taxation impact of the measure is described in the Revenue Measures section of this Budget Paper.

Funding for waste management plan implementation

Expense ($m)

Explanation

The Government will provide an extra $5 million to enable timely implementation of ANSTO’s Waste Management Action Plan (WMAP) at the Lucas Heights site in Sydney. The Plan provides a comprehensive programme for management of radioactive waste arising from operations at the Lucas Heights Science and Technology Centre (LHSTC), including the upgrade of the existing low level liquid effluent treatment facility.

Australian Institute of Marine Science infrastructure refurbishment

Expense ($m)

Explanation

The Government will increase funding to the Australian Institute of Marine Science (AIMS) to allow it to complete urgently required refurbishment to bring ageing research facilities up to Occupational Health and Safety Standards. Total funding for this measure is $5.5 million, including $2.1 million to be provided from AIMS funding in 2003-04, which will enable the refurbishment of the existing facilities and allow completion of the refit of the RV Lady Basten.

 Enhancing Value Chains for Action Agenda Sectors

Expense ($m)

Explanation

The Government will extend existing programmes to achieve a whole-of-industry approach to pursuing market opportunities in Australia and overseas. This approach will contribute to creating a stronger, more sustainable and internationally competitive Australian industry.

The programme builds on the achievements of the Supply Chain Partnerships Programme (SCPP) and the Business Networks Programme (BNP) and will involve engaging teams of facilitators, accredited under the SCPP and the BNP, to work with Action Agenda industry sectors to identify impediments to growth relating to value chains.

The Government will provide funding to these facilitation teams to develop and implement industry sector demonstration projects. These projects will link companies with complementary skills and capabilities with their respective suppliers and customers, to develop solutions to identified impediments. Industry will co-fund the implementation phase of the projects.

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Past Last Updated: Tuesday 11th May, 7:30 pm AEST