The Agriculture, Forestry and Fishing function covers outlays on: land management; water resources; rural adjustment designed to improve farm productivity, profitability and sustainability; quarantine services; diesel fuel rebates for primary producers; contributions to research and promotion, price support arrangements and subsidies (including where the cost of services provided by departments and agencies is borne by Government in whole or in part); efforts to conserve, extend or rationalise exploitation of forest resources; forest pest and disease control activities; forest firefighting and fire prevention services; freshwater, ocean and coastal fishing and fish farming; and research into fish management and related problems of the fish industry. Outlays on sport fishing are classified to 8. Recreation and Culture.

A large proportion of outlays in this function correspond to various levies and charges collected by Government on behalf of industry. These industry contributions are classified as revenue, ie not offsets within outlays (see Other Taxes, Fees and Fines in Statement 5).

Outlays in other functions also assist agricultural industries, eg outlays on transport infrastructure and services, and by agencies such as the Commonwealth Scientific and Industrial Research Organisation. In addition, taxation legislation provides concessional treatment of research and development costs, and for the averaging of income from primary production.

This function includes outlays of the following portfolios:

• Environment;
• Industry, Science and Tourism; and
• Primary Industries and Energy.

As shown in Chart 1, the major impact on function outlays over the period between 1988-89 and 1998-99 was the 1990-91 peak in wool outlays associated with the management of the wool stockpile and associated debt. The increase for Natural Resources Development from 1997-98 results from the commencement of the Natural Heritage Trust.

The increase in 1994-95 principally reflects additional outlays to the rural sector on exceptional circumstances drought assistance. Outlays decreased from 1997-98 and are expected to continue to decline as assistance to the dairy industry through the Domestic Market Support Scheme is terminated.

Outlays predominantly relate to wheat. The wheat levy funds the trading and value adding activities of the Australian Wheat Board, with the Government providing a matching contribution for research and development of up to 0.5 per cent of the Gross Value of Production.

Outlays consist of contributions to the dairy industry for promotion, administration, market support, and research and development. Payments to the Australian Dairy Corporation and the Australian Dairy Research and Development Corporation are funded primarily through dairy levies, with the Government providing a matching contribution for research and development of up to 0.5 per cent of the Gross Value of Production.

Outlays consist of contributions to the meat industry for promotion, research and development and control of cattle diseases. Payments to the Australian Meat and Livestock Corporation and the Australian Pork Corporation for promotion, administrative and operational expenses are funded primarily through industry levies, with the Government providing a matching contribution for research and development of up to 0.5 per cent of the Gross Value of Production.

Industry levies fully pay for the activities of the Australian Wine and Brandy Corporation. The Australian Horticultural Corporation is funded through industry levies and Government matching grants.

6. General Assistance not Allocated to Specific
   Industries

This classification includes funding for Agriculture Advancing Australia (AAA) (announced in the 1997-98 Budget as the Integrated Rural Policy Package). The AAA aims to promote a self-reliant, productive rural sector supported by targeted Government measures which focus on building the skills and capacity of rural industries and communities to manage effectively in an uncertain environment.

The Australian Quarantine and Inspection Service (AQIS) conducts inspection services for the export and import of animals, animal products, plants and plant products, and the quarantine surveillance of arriving vessels, persons and goods.

The Diesel Fuel Rebate Scheme provides for a rebate of excise or customs duty on diesel fuel used for eligible primary production activities.

This classification includes outlays for a range of programmes to address issues in the rural sector, including the Farm Family Restart Scheme and programmes addressing animal diseases and chemical usage.

This classification covers water, land and forest management programmes primarily within the Department of Primary Industries and Energy, and includes the Government's contribution towards the Murray-Darling Basin Initiative. Land and water programmes are now integrated within the National Landcare Programme under the Natural Resource Management (Financial Assistance) Act 1992.

This classification comprises running costs for the Department of Primary Industries and Energy.