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Seventy-five million over 10 years will be provided to deliver a significant increase in environmental flows down the Murray River.
The Federal Government and the New South Wales and Victorian Governments will provide a total of $375 million to implement water efficiency projects and carry out riverine works. This will benefit the environmental condition of the Murray and Snowy Rivers and key alpine rivers. Significant environmental and economic benefits will be achieved from this initiative, including:
Beginning in 2001-02, $1.2 million over four years will be provided to promote mutually beneficial partnerships between the mining industry and Aboriginal communities, and to encourage them to build on recent achievements in providing training, employment and business opportunities in remote areas.
The Government budgeted $17 million for the Petroleum Products Freight Subsidy Scheme from 1999-2004. Of this amount, it is expected that the scheme will contribute around $3.5 million in 2001-02.
The scheme reimburses oil companies and other fuel distributors the costs incurred above a specified level for transporting petrol, diesel, aviation gasoline and aviation turbine fuel to more than 100 remote communities. The aim of the scheme is to benefit consumers in these locations by reducing the freight costs. Administrative expenses ($200,000 per annum) are also paid on a pro rata basis to oil companies to compensate for expenses incurred in participation in the Scheme.
The Government will provide $596.4 million over five years ($6.4 million in 2000-01) to provide additional resourcing and infrastructure to strengthen Australia's defence against the introduction of exotic pests and diseases, including foot and mouth disease.
This funding will be used to implement a heightened quarantine inspection regime to cover 100 per cent of all goods and mail entering Australia and the vast majority of all passengers entering Australia via airports and seaports. Increased monitoring of airline and ship waste disposal will also be maintained. Infrastructure costs at international airports and mail facilities required to implement the increased inspection regime will also be met by the Government.
The Government will provide $46.7 million from 2001-02 to 2004-05 to maintain quarantine-related activities at the higher level of resourcing established following the 1996 Nairn report: Australian Quarantine - A Shared Responsibility. The additional funding will enable the Import Risk Analysis Programme, Border Processing Programme, animal and plant health activities, the Quarantine Awareness Campaign and the Quarantine Exports Advisory Council to continue at their current capacity.
The Government provided an additional $8.5 million in 2001-02 in the last Budget for both the Border Processing Programme and the Import Risk Analysis components of the Nairn funded activities.
An additional $6.2 million per annum towards their services is cost recovered from Australian Quarantine Inspection Service clients.
The Government will provide $17.4 million from 2001-02 to 2003-04 to extend the Rural Financial Counselling Services programme. The programme assists businesses in rural Australia, particularly farm businesses, to deal with a range of financial pressures and adjustment issues by providing free financial advice on request.
Funding for each counselling service typically comprises a 50 per cent contribution from the Commonwealth, and 25 per cent each from the State Government and the local community.
The Government will provide $26.4 million from 2001-02 to 2004-05 for the Agricultural Development Partnerships programme, a programme that will provide assistance for structural adjustment which is targeted to specific agricultural industries and regions experiencing significant problems affecting farm profitability and sustainability.
In 1997, the Commonwealth committed to a national industry-government strategy for plantations in partnership with industry and State Governments. Titled Plantations for Australia: the 2020 Vision. Its aim is to treble Australia's plantation estate between 1996 and 2020. Plantation establishment rates are exceeding the target rate of 80,000 hectares per annum with annual investment of up to $300 million in rural areas annually. These resources are being established on a scale to supply future value-adding industries in regional Australia, with significant income training, employment and social benefits in the targeted areas of south-west Western Australia, Tasmania and the Green Triangle (south-west Victoria - south-east South Australia).
(See also the Commonwealth Flood Assistance Package for central and northern NSW and southern Queensland on page 72.)
The Government is providing $18 million in 2000-01 to assist dairy farmers in northern New South Wales who have been adversely affected by recent heavy rains and floods. The grants of up to $15,000 per applicant will enable eligible dairy farmers to buy fodder or to replant improved pasture damaged by rain or flooding. The cost will be absorbed from within existing funds allocated for the November 2000 floods.
The Government has agreed an additional $142.4 million in assistance to the dairy industry, targeted at those farmers and communities hardest hit by the price reductions for market milk that followed industry deregulation by State Governments on 1 July 2000. The additional funding will provide for $99.5 million of individual payments to current dairy farmers who meet hardship criteria, up to $20 million in discretionary payments to farmers, including lessors, and an additional allocation of $20 million to the Dairy Regional Assistance Programme (see page 64).
The assistance package is designed to complement the $1.8 billion Dairy Structural Adjustment Package, already delivering assistance to dairy farmers throughout Australia, and will be funded by an extension of the retail levy on milk.
The Government will provide $23.1 million over four years, (including $4 million in 2000-01) as exceptional circumstances assistance to nominated shires in the south-eastern wheat belt of Western Australia.
(See also Backing Australia's Ability on page 51.)
The Government will provide $20.7 million over four years to support Australian agribusinesses in gaining the business skills and resources required to successfully commercialise new agribusiness products, technologies and services.
The objectives of the programme are to accelerate efforts in helping Australian agribusinesses improve their capacity to successfully develop new, innovative, high value products, services and technologies that will generate additional medium-term commercial outcomes for the benefit of Australia.
The Government is currently providing about $83 million over two years to implement a comprehensive package of assistance for canegrowers throughout Australia. The package is in response to a unique combination of adverse circumstances, including damage to crops from cyclones and flooding compounded by sustained low world sugar prices. Its key elements comprise income support payments for cane growers in severe financial hardship, interest rate subsidies for loans and financial counselling assistance.
The Government will provide $3 million ($1.5 million in each of 2000-01 and 2001-02) for the development of a National Food Industry Strategy. The aim is to develop a strategic framework to underpin the future growth of an innovative and globally competitive Australian processed food and beverage industry.
The scope of the Strategy includes processed foods, beverages and ingredients, and value-added horticultural produce, but will not address specific agricultural commodity or structure issues. The Strategy will take a through chain approach, encouraging linkages between producers through the food production chain to retailers.
Under the Shipbuilding Innovation Scheme, shipbuilders registered under the relevant legislation are entitled to the payment of a benefit at the rate of 50 per cent of eligible research and development expenditure, up to a total of 2 per cent of eligible production costs of a bountiable vessel. Eligible research and development expenditure includes adaptive engineering directed at product and process innovation in the shipbuilding industry. The Shipbuilding Innovation Scheme has a budgeted amount of $51.5 million over five years, concluding in 2004-05, of which $10.1 million has been committed for 2001-02.
The shipbuilding bounty terminated on 31 December 2000 but phase-out arrangements continue for three years to cover contracts in place at that date, consistent with the Government's commitments. The bounty provides for the payment of a maximum of 3 per cent of the eligible production costs incurred in the construction of a vessel. The Government has allocated $23 million for the three-year phase-out period to 2003, of which approximately $12 million will be provided in 2001-02. This programme provides transitional support to the Australian shipbuilding industry while international measures are being implemented to phase out subsidies to the industry.
The Tasmanian Freight Equalisation Scheme helps shippers to offset the transport-cost disadvantage associated with moving non-bulk goods across Bass Strait. The scheme benefits the Tasmanian manufacturing industry by reducing the cost of importing raw materials and machinery from the mainland, and the cost of exporting manufactured or processed goods to the mainland. It is expected that $65 million in assistance will be provided to shippers during 2000-01, representing an increase of around $5 million over the 1999-2000 levels of assistance and that $65.6 million in assistance will be provided to shippers during 2001-02.
The Bass Strait Passenger Vehicle Equalisation Scheme provides a rebate of up to $300 for each return trip for a driver with a passenger vehicle travelling by sea across Bass Strait.
Since its introduction in 1996, there has been a 90 per cent increase in passenger vehicles being carried between the mainland and Tasmania. The latest estimates for 2000-01 indicate that TT-Line will carry some 140,000 passenger-vehicles on the Spirit of Tasmania and the high-speed catamaran Devil Cat. It is expected that $16.5 million in rebates will be provided to passengers in 2000-01. In 2001-02, it is estimated that $17.4 million in rebates will be provided to passengers.
The Bass Strait Passenger Vehicle Equalisation Scheme was extended from 1 March 2001. This was to provide a rebate of up to $150 each way to passengers travelling by commercial air service between King Island and the mainland whilst transporting an eligible passenger vehicle by sea. The rebate is extended to passengers travelling by air as the shipping service is unable to carry passengers.
The Government will provide additional funding to the Australian Maritime Safety Authority (AMSA) of $3.7 million in expenses over four years to maintain and improve the capability to respond to search and rescue incidents. This funding will increase the number of aircraft available to assist in search and rescue operations, including three dedicated aircraft with contractual commitments to provide guaranteed response times.
The Government will also provide a capital investment of $1.7 million in 2001-02 to increase the capabilities of AMSA to respond to search and rescue incidents in Australia. Funding will be used to purchase Forward Looking Infra Red equipment to locate distress beacons. This equipment will be installed in a selection of aircraft available to respond to search and rescue incidents, and the programme will involve an increase in the number of search and rescue units. As the majority of new operators will be in regional locations, implementation is expected to increase job opportunities in regional areas, promote the maintenance of transport links by improving the financial viability of regional aircraft operators, and increase search and rescue services.
The Remote Air Service Subsidy (RASS) Scheme subsidises five air operators to provide regular services to around 200 remote communities in Queensland, South Australia, Western Australia, and the Northern Territory.
The Government has doubled the scheme's funding over the four years from 2000-01 to 2003-04, investing an additional $5.2 million in it over that period. The additional funding is allowing an upgrading of RASS services to ensure all communities receive a regular passenger service and expansion of the scheme to include additional eligible communities.
Following a joint tender process with Australia Post in late 2000, new 3 ½ year RASS contracts were established on 1 January 2001. Under the new contacts, operators must provide a full regular public transport service as soon as possible, carrying passengers as well as mail and essential supplies.
The focus is now on identifying more communities that meet the updated eligibility criteria and, within the RASS budget limits, bringing as many of them as possible onto the scheme.
The Government has maintained capped prices for control tower services at selected regional and general aviation aerodromes. It has done this by extending the existing location-specific pricing subsidy for a further two years (2001-02 to 2002-03) at the current level of $7 million each financial year. By permitting charges to be capped at affordable levels, this measure will enable the aerodromes to stay operational, benefiting local communities through the operation of flying training schools and the continued provision of air services.
In the 1999-2000 Budget, a two-year subsidy of $18 million ($11 million in 1999-2000 and $7 million in 2000-01) was agreed, to be recovered by the Government through an increase in the duty on aviation fuels. Extension of the location-specific pricing subsidy for an additional two years will maintain the level of services to regional Australia.
The Automotive Competitiveness and Investment Scheme (ACIS) is designed to encourage investment and innovation in the Australian automotive industry. Commencing on 1 January 2001, the scheme will provide $2 billion over five years.
The automotive industry in Australia is predominantly located in Victoria, South Australia and New South Wales, with many firms in regional areas. The scheme will assist these firms to become more competitive in an increasingly liberalised trade environment.
The Government has committed $14 million to the Regional Tourism Programme over the period 1999-2003, of which $4 million will be provided in 2001-02. The programme aims to improve the capability of organisations, businesses and individuals to deliver quality tourism products and services in regional Australia.
The Package represents continued Government support, particularly as a regional initiative, for textiles, clothing and footwear (TCF) industries. It has been designed to promote investment in innovation and research and development to improve the competitiveness of Australia's TCF industries. This is in preparation for the more internationally competitive trade environment, after 2005.
The most significant component is the TCF Strategic Investment Programme, with funding of $679 million over five years from 2000-01 to promote an increase in investment by the TCF industries in capital plant and equipment; research and development, including innovative product development; and assistance for regional re-configuration.
Complementing the Strategic Investment Programme, the Government has recently introduced three new TCF programmes: the Technology Development Fund; the Market Development Programme; and the National Framework for Excellence in TCF Education and Training These three programmes, funded at over $30 million, will help strengthen the TCF industries' employment potential and underpin regional development.
The Government is facilitating a number of proposals from private investors to locate space ports in Australia. These projects, currently proposed for Woomera and Christmas Island, have considerable potential to inject new investment in the order of $1 billion and create hundreds of jobs in regional areas of Australia.