Home > Mid-Year Economic and Fiscal Outlook > Appendix A: Policy Decisions taken since the 2012‑13 Budget > Resources, Energy and Tourism

Appendix A: Policy Decisions taken since the 2012-13 Budget (Continued)

Expense Measures (Continued)

Resources, Energy and Tourism

Advanced Lignite Demonstration Program — establishment

Expense ($m)
	2011-12	2012-13	2013-14	2014-15	2015-16
Department of Resources, Energy and Tourism	‑	‑	‑	‑19.0	19.0

The Government will provide $45.0 million over four years ($1.0 million in 2012‑13, $7.0 million in 2013‑14, $18.0 million in 2014‑15 and $19.0 million in 2015‑16) to establish the Advanced Lignite Demonstration Program. The Victorian Government will also contribute $45.0 million to the program. The program will be jointly administered by the two governments and will fund the development and deployment of emerging technologies to improve the economic recovery of brown coal as well as reduce emissions from coal‑fired electricity generation.

The cost of this measure will be met from within the existing resourcing of the National Low Emissions Coal Initiative but with $19.0 million deferred from 2014‑15 to 2015‑16.

Further information can be found in the joint press release of 3 August 2012 issued by the Minister for Resources and Energy and the Victorian Government Minister for Energy and Resources.

Contract for Closure program — cessation

Expense ($m)
	2011-12	2012-13	2013-14	2014-15	2015-16
Department of Resources, Energy and Tourism	‑	‑	‑	‑	‑

The Government has ceased Contract for Closure negotiations. The Contract for Closure program aimed to negotiate the closure of up to 2,000 megawatts of highly emissions‑intensive coal‑fired electricity generation capacity by 2020. Following negotiations with eligible generators, the Government could not be satisfied that entering into arrangements under the program would achieve the necessary value for money outcome.

Savings from this measure are from a provision previously made in the Contingency Reserve beyond 30 June 2016.

Further information can be found in the press release of 5 September 2012 issued by the Minister for Resources and Energy.

Department of Resources, Energy and Tourism — departmental funding

Expense ($m)
	2011-12	2012-13	2013-14	2014-15	2015-16
Department of Resources, Energy and Tourism	‑	9.0	10.5	‑	‑

The Government will provide $24.7 million over three years from 2011‑12 in supplementary funding to the Department of Resources, Energy and Tourism primarily to assist in the delivery of priority activities, including Australian Renewable Energy Agency programs and policy advice on coal seam gas, uranium and energy security (including the National Energy Security Assessment).

The cost in 2011‑‑12 was met through a redirection of funding from the Radioactive Waste Management program ($1.4 million) and the National Low Emissions Coal Initiative ($3.8 million), with the remainder met through a reduction in funding from the Low Emissions Technology Demonstration Fund.

Low Emissions Technology Demonstration Fund — reduction in funding

Expense ($m)
	2011-12	2012-13	2013-14	2014-15	2015-16
Department of Resources, Energy and Tourism	‑	‑	‑	‑	‑100.0

The Government will reduce funding for the Low Emissions Technology Demonstration Fund by $100.0 million in 2015‑16. The reduction in funding follows a decision not to proceed with funding for the Dual Gas Project in Victoria after the project operator did not meet the conditions of its funding deed.

The Low Emissions Technology Demonstration Fund helps Australian firms to demonstrate the commercial potential of low emissions technologies. The program will now provide funding of $60.0 million over two years from 2013‑14.

Savings from this measure will be redirected to support other Government priorities.

Further information can be found in the press release of 27 July 2012 issued by the Minister for Resources and Energy.

Tourism Industry Regional Development Fund — establishment

Expense ($m)
	2011-12	2012-13	2013-14	2014-15	2015-16
Department of Resources, Energy and Tourism	‑	8.5	11.0	9.5	7.0

The Government will provide $48.5 million over four years to establish a Tourism Industry Regional Development Fund. The Fund will support tourism industry development projects in regional Australia by providing grants of up to $250,000, with funding to be matched by grant recipients.

The cost of this measure will be partially met by redirecting funding from the Asia Marketing Fund — establishment measure from the 2012‑13 Budget.

Further information can be found in the joint press release of 20 June 2012 issued by the Acting Prime Minister and Treasurer, the Minister for Home Affairs and the Minister for Tourism.

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