Home | Search | Site Map | Help

Chapter 2: Budget Overview

New and additional measures in the 2001-02 Budget

This section describes new measures in the 2001-02 Budget and summarises Commonwealth Government expenditure on the environment and environment-related activities. More detailed information is presented in Chapter 3: Strategic Directions and Chapter 4: Key Environment Activities.

New measures announced since the 2000-01 Budget and included in Budget Paper No. 2. - Budget Measures 2001-02 are listed below. These measures are agreed by the Government and may be funded by new resources or may be funded from existing resources of the Environment and Heritage portfolio.

The Government will provide $1.24 billion for new measures over the four years commencing 2001-02. The two most important, the further extension of the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality, account for $1.14 billion of the $1.24 billion. Twelve new measures, with a combined value of $100 million over four years, will also be funded.

In addition, the Government will provide an extra $233 million for the Natural Heritage Trust in each of 2005-06 and 2006-07 and a further $120 million for the National Action Plan for Salinity and Water Quality between 2005-06 and 2006-07.

Table 2.1 lists measures announced since the 2000-01 Budget and included in the Budget Paper No. 2 - Budget Measures 2001-02.

Table 2.1: New measures

Title of Measure - all measures are funded under the Environment and Heritage portfolio unless stated otherwise	2001-02 $m	2002-03 $m	2003-04 $m	2004-05 $m
Extension of the Natural Heritage Trust - jointly by EA and AFFA(a)	-	100.0	233.0	233.0
National Action Plan for Salinity and Water Quality - jointly by EA and AFFA(b)	65.0	150.0	190.0	170.0
Queensland East Coast Trawl Restructure Programme(c)	-	-	-	-
Wildlife Programmes and Biodiversity Conservation Responsibilities(d)	1.6	1.4	1.4	1.2
Administration of the Fuel Quality Legislation(e)	0.9	1.7	2.4	2.9
National Pollutant Inventory	1.2	1.3	1.3	1.3
Domestic Greenhouse Policy Development(f)	6.2	6.1	6.0	6.0
Greenhouse International Policy and Reporting, and Greenhouse Sinks(f)	5.3	5.4	5.5	5.6
Sydney Harbour Federation Trust(g)	14.0	-	-	-
Conservation of Rural and Regional Historic Hotels	5.0	-	-	-
Goondiwindi Serpentine Water Park	5.0	-	-	-
Management of Aquaculture Impacts	0.5	0.5	0.4	0.4
Townsville Aquarium - Reef Headquarters	4.9	0.5	0.5	0.5
Funding to offset the shortfall in revenue related to the Environmental Management Charge	0.5	0.6	0.3	0.3
Total	110.1	267.5	440.8	421.2

- denotes nil

(a) The figures do not include interest earned by the Natural Heritage Trust of Australia.

(b) The Government provided $5 million in 2000-01 to the National Action Plan for Salinity and Water Quality.

(c) The Government provided $10 million in 2000-01. This measure is being fully absorbed within the existing resourcing of the Environment and Heritage portfolio.

(d) Fifty per cent of the funds for this measure are being absorbed within the existing resourcing of the Environment and Heritage portfolio.

(e) This measure is fully absorbed within the existing resourcing of the Environment and Heritage portfolio.

(f) These measures are funded through reordering of priorities within the Australian Greenhouse Office.

(g) This measure has been funded from the Federation Fund allocation.

In addition the Minister for the Environment and Heritage has decided that the following measures are to be funded from existing allocations. Table 2.2 lists those measures that are not in Budget Paper No. 2 - Budget Measures 2001-02 and are funded by reprioritising existing allocations.

The additional measures total $17.4 million over four years, consisting of $6.2 million in 2001-02, $3.9 million in both 2002-03 and 2003-04 and $3.4 million in 2004-05.

Table 2.2: Additional measures funded from within existing allocations

Title of Measure	2001-02 $m	2002-03 $m	2003-04 $m	2004-05 $m
Implementation of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)(a)	5.0	-	-	-
Gene technology assessments	0.2	0.2	0.2	0.2
Dioxin management	1.0	1.5	1.5	1.0
Cultural Heritage Projects Programme(b)	-	2.2	2.2	2.2
Total	6.2	3.9	3.9	3.4

- denotes nil

(a) The Government has indicated that it will consider the ongoing funding required to administer the EPBC Act in the context of the 2002-03 Budget.

(b) This measure is in addition to funds already allocated. Total funding in 2001-02 is $5.9 million.

To fund measures from existing portfolio resources (listed in Table 2.1 and Table 2.2), equivalent savings of $31.4 million have been made. Savings over the four years include a budget reinstatement of offsets from an earlier budget ($16 million), a planned extension to Waterwatch Australia not undertaken ($3.8 million), operational efficiencies in Parks Australia ($3.2 million) and funding of the Urban Stormwater Initiative through the Natural Heritage Trust in 2001-02 ($1 million). A further $7.4 million savings is achieved from 16 programmes through efficiency measures and reductions in programme funding.

Descriptions of new and additional measures

Managing and protecting Australia's natural resources and wildlife

The sustainable and integrated management of Australia's land and inland water resources is the Government's key environmental priority. Two major new measures, the Natural Heritage Trust extension and the National Action Plan for Salinity and Water Quality, will help achieve this.

The Government is extending the successful Natural Heritage Trust with additional funding of over $1 billion from 2002-03 to 2006-07, in addition to the $1.5 billion already committed from 1996-97 to 2001-02. This will represent over 11 years' commitment to funding on-ground action to conserve and repair Australia's unique environment. The Trust is leading the world in terms of government delivery of integrated environmental and sustainable agriculture outcomes.

From its inception in 1996-97 the Natural Heritage Trust has been funded from proceeds of the partial sales of Telstra. The extension of the Trust will, for the first time, be funded from consolidated revenue. The Commonwealth Government will seek contributory funding from the States in addition to the Commonwealth funds for the Trust extension.

As at 30 April 2001, $1.17 billion had been approved for more than 10,300 projects through programmes such as Landcare, Bushcare, Coasts and Clean Seas and Endangered Species.

The funding estimate for the Natural Heritage Trust in 2001-02 is $275 million.

The Government's strategy when it established the Trust required that a minimum balance of $300 million remain in the Trust Reserve from 2001-02. Each year, the ongoing interest from this balance will be allocated towards the purposes of the Trust Reserve. This interest will augment the new funding.

Funding to the Trust in 2002-03 will be in the order of $266 million. This comprises $100 million from the extension of the Trust, $130 million from the existing Trust allocation which has been rescheduled from 2000-01 and 2001-02 to allow better project development outcomes, and an estimated $37 million in interest from the Natural Heritage Trust of Australia Reserve.

Funding from 2003-04 to 2006-07 will be $233 million per year plus approximately $20 million interest per year.

The overall direction and types of activities funded under the extended Trust will build on the original Trust outcomes and will be consistent with the objectives of the Natural Heritage Trust of Australia Act 1997. The Trust will continue to be jointly managed through the Environment and Heritage and Agriculture, Fisheries and Forestry portfolios.

In October 2000, the Prime Minister announced the National Action Plan for Salinity and Water Quality, involving a Commonwealth funding commitment of $700 million over seven years to address salinity and water quality issues in 21 priority catchments. This funding will be matched by the States resulting in a total package of $1.4 billion. The funding under the National Action Plan is in addition to Natural Heritage Trust funding.

The National Action Plan will be based on integrated catchment/regional management plans in line with the recommendations of the mid-term review of the Natural Heritage Trust. The management plans will set targets for the maintenance and improvement of the natural resources within these catchments, particularly in relation to salinity, water quality and biodiversity.

In 2001-02 spending will be $65 million, with the funds jointly managed by the Agriculture, Fisheries and Forestry and the Environment and Heritage portfolios. In 2000-01 work commenced on airborne geophysical mapping to identify salinity deposits and likely areas affected.

To address the problem of overfishing in Queensland fisheries, the Government provided $10 million in 2000-01 towards the $20 million Queensland East Coast Trawl Restructure Programme, a restructuring package under the East Coast Trawl Fishery Management Plan. Commonwealth funding is matched by Queensland Government contributions.

The programme includes a structural adjustment package for fishing operators for the surrender of their fishing licences and to provide fair and equitable treatment for small, family-run operations. The programme supports a management plan that will reduce and cap the level of fishing in sensitive ecosystems and help the industry to economic and ecological sustainability. The reduction in fishing pressure on the Great Barrier Reef will protect fish stocks and the sea floor environment.

To enhance Australia's capacity to meet its domestic and international biodiversity conservation responsibilities, the Government will provide $5.5 million over four years for wildlife programmes and biodiversity conservation responsibilities.

Protection of threatened species will be improved through promoting implementation of recovery plans, developing an international protocol for the conservation of endangered seabirds and further developing databases that identify potential impacts of projects on nationally threatened species and ecological communities.

The package will support changes to wildlife trade provisions and support key advisory bodies including the Biological Diversity Advisory Committee. It will enable Australia to participate in key international fora such as the Convention on International Trade in Endangered Species of Wild Flora and Fauna, the Convention on Migratory Species of Wild Animals and the Convention on Biological Diversity, and contribute to the development and implementation of the Global Biodiversity Information Facility.

Managing the impacts of transport fuel and chemicals

The Government is focusing on fuel quality and vehicle emissions and is providing $8 million over four years from 2001-02 for the monitoring and compliance programme under the Fuel Quality Standards Act 2000. The Administration of Fuel Quality Legislation package will ensure there are uniform national standards for fuel supplied in Australia, and will protect Australians from emissions from unclean and impure fuel. Clean fuel is necessary for vehicles meeting new stringent emission control standards.

The National Pollutant Inventory (NPI) will be extended by the provision of $5.1 million over four years. The NPI provides information on the types and amounts of pollutants emitted to the air, land and water in Australia. This information is available to all sectors of the community, industry and government. Benefits include better decision making, environmental management and planning, especially through waste minimisation and cleaner production programmes.

Meeting the challenge of climate change

The Government will provide $24.2 million over four years for domestic greenhouse policy development. The funding will support the analysis and development of cost-effective greenhouse gas abatement policies for Australia, including the reduction of emissions from key energy supply and transport sectors. This will continue the implementation of commitments under the National Greenhouse Strategy.

The Government will provide $21.7 million over four years for greenhouse international policy and reporting, and greenhouse sinks initiatives. It will enable the Australian Greenhouse Office (AGO) to continue Australia's involvement in the development of the international climate change agenda. The funding is to evaluate progress towards Australia's commitments under the United Nations Framework Convention on Climate Change and targets under the Kyoto Protocol.

The two measures are funded through reordering priorities within the Australian Greenhouse Office.

Protecting Australia's cultural and historic heritage

The Government is redefining its involvement in heritage management in Australia to ensure that places with national and international significance are protected for future generations.

The Government will provide $14 million funding in 2001-02 to the Sydney Harbour Federation Trust for security, maintenance of sites and development of plans for the management of the Trust's six Harbour sites. Development of the plans will involve extensive public consultation as well as assessments and surveys for site remediation and environmental management, building works and for the natural and cultural values to be considered in planning for future uses. Funding will also provide for administration of essential maintenance and repair works, safety and security of Trust properties, and services and facilities to enable public access.

The Government will provide $5 million in grants in 2001-02 to restore and preserve historic hotels in rural and regional Australia. The grants will be paid only to hotels without gaming machines, and the social, economic and regional benefits of restoration will be taken into account.

The Government will provide a $5 million grant to develop the Goondiwindi Serpentine Water Park, a natural heritage and recreational facility at Serpentine Lagoon at Goondiwindi, Queensland. This will provide a recreational venue to replace Boobera Lagoon which will be closed to powerboats when a declaration under the Aboriginal and Torres Strait Islander Heritage Protection Act 1984 comes into effect in 2002.

Protecting the Great Barrier Reef and its Marine Park

The Government will provide $1.7 million over four years from 2001-02 for the management of aquaculture impacts. This will enable the Great Barrier Reef Marine Park Authority (GBRMPA) to implement, efficiently and easily, regulations for the management of aquaculture, particularly prawn farming, in areas adjacent to the Great Barrier Reef Marine Park.

Funding of $6.4 million over four years will allow the refurbishment and an ongoing operational subsidy for the Townsville Aquarium - Reef Headquarters. This will enhance visitor facilities and ensure that health and safety standards are maintained.

The Government will provide funding of $1.7 million over four years to the GBRMPA to offset a shortfall in revenue from the Environmental Management Charge (EMC). Through the EMC, visitors are contributing to the maintenance of the Great Barrier Reef environment. However, concessional visitor charges have resulted in lower than anticipated revenue.

Additional measures

In 2001-02, $5 million will be provided for the implementation of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). This will ensure that the Department of the Environment and Heritage is able to effectively implement the EPBC Act and develop on-line systems to provide environmental information to the community and to industry, reducing its compliance costs. Funding is initially $5 million in 2001-02. The Government will consider funding in the 2002-03 Budget after an assessment of servicing the EPBC Act.

To ensure that gene technology is developed in an environmentally safe way, $0.8 million over four years is being provided to support the statutory role of the Minister for the Environment and Heritage in providing environmental advice to the Gene Technology Regulator under the Gene Technology Act 2000.

To meet its commitment to manage the impacts of dioxins and related toxic combustion by-products, the Government will provide $5 million over four years, commencing in 2001-02. The Government is currently working with the States and Territories to develop a national dioxins programme.

The Cultural Heritage Projects Programme will foster partnerships of local government and community based organisations and individuals so that they can better work together to conserve and restore significant Australian cultural heritage sites. In each of 2002-03, 2003-04 and 2004-05, $2.2 million will be provided.

Summary of Commonwealth environment expenditure

Commonwealth environment expenditure undertaken by the Environment and Heritage and the Agriculture, Fisheries and Forestry portfolios is shown in Table 2.3.

Table 2.3: Environment expenditure by EA and AFFA

Description	2000-01 $m	2001-02 $m	2002-03 $m	2003-04 $m	2004-05 $m
Environment and Heritage portfolio(a)
Outcome 1: The environment, especially those aspects that are matters of national environmental significance, is protected and conserved	587.5	696.1	460.3	407.3	355.1
Outcome 2: Australia benefits from meteorological and related science and services (Bureau of Meteorology)	9.3	9.2	9.1	9.0	9.0
Outcome 3: Australia's interests in Antarctica are advanced (Australian Antarctic Division)	103.2	100.7	102.5	104.9	106.7
Agriculture, Fisheries and Forestry portfolio	182.1	260.8	na	na	na
Natural Heritage Trust extension - joint EA/AFFA initiative(b)	-	-	100.0	233.0	233.0
Total	882.1	1066.8	671.9	754.2	703.8

(a) Figures in Table 2.3 present estimated expenditure for environment outcomes on an accrual basis with outyear estimates in outturn prices (the prices expected in future years). The figures include corporate overheads, which have been allocated across outputs and outcomes.

(b) The Natural Heritage Trust extension funds have not yet been divided between EA and AFFA. The figures do not include interest earned by the Natural Heritage Trust of Australia.

The Commonwealth's environment expenditure for all portfolios by environmental theme is summarised in Table 2.4. The expenditure listed in Table 2.3 is also included in totals in Table 2.4. The breakdown of these figures is provided in more detail in Appendix 2.

Table 2.4: Environment expenditure (all portfolios) by theme

Description	2000-01 $m	2001-02 $m	2002-03 $m	2003-04 $m	2004-05 $m
The Atmosphere
Atmosphere	28.9	26.7	22.9	17.6	17.7
Greenhouse	117.4	245.8	238.7	188.6	135.0
Meteorology	11.3	11.3	11.2	9.0	9.0
Biodiversity	154.6	150.8	62.6	25.2	25.6
Parks and reserves	93.0	70.6	57.7	57.2	58.4
Coasts and Oceans	156.8	152.4	111.1	71.0	71.1
Human Settlements
Environmental Assessments and Approvals	14.4	15.1	9.0	8.2	8.3
Industry	120.0	140.7	104.5	89.1	63.7
Inland Waters	121.8	89.8	57.9	16.5	10.5
The Land	241.8	248.7	361.4	324.5	247.4
Natural and Cultural Heritage	65.9	63.8	16.3	16.3	6.0
Antarctica	103.2	100.7	102.5	104.9	106.7
Integrated Measures	(a)299.3	(b)307.6	96.8	97.0	94.2
Natural Heritage Trust Extension - Joint EA/AFFA Initiative(c)	-	-	100.0	233.0	233.0
Total	1528.4	1624.0	1352.6	1258.1	1086.6

(a) This figure includes approximately $200 million for Australia's overseas aid programme.

(b) This figure includes approximately $210 million for Australia's overseas aid programme. There are no estimates available for this activity for the years beyond 2001-02.

(c) The Natural Heritage Trust extension funds have not been allocated across EA and AFFA or to individual programmes. The figures do not include interest earned by the Natural Heritage Trust of Australia.

Summary of Natural Heritage Trust expenditure

Natural Heritage Trust estimated expenditure on programmes is summarised in Table 2.5. Programme expenditure figures are also provided in Appendix 2.

Table 2.5: Natural Heritage Trust funding^(a)

Description of Programme	1996-97 $m	1997-98 $m	1998-99 $m	1999-00 $m	2000-01 $m	2001-02 $m	2002-03 $m	Total $m
Air Pollution in Major Cities	1.3	1.5	2.4	2.9	5.0	4.1	1.3	18.5
Australia's Oceans Policy	-	-	-	1.5	4.8	8.5	5.2	20.0
Bushcare	3.7	22.2	50.2	81.6	100.0	(b)83.8	4.8	346.3
Coasts and Clean Seas	-	8.6	20.2	28.1	33.0	24.4	2.4	116.8
Endangered Species	2.0	2.1	6.9	5.8	5.6	5.5	-	27.8
Farm Forestry Programme	-	2.8	6.5	11.9	14.5	9.2	2.3	47.2
FarmBis: Advanced Property Management Planning	0.4	0.3	2.6	5.6	5.9	-	0.1	15.0
Fisheries Action	-	1.7	2.2	3.2	3.1	2.1	0.7	13.0
Landcare Tax Credits	-	-	0.5	0.4	2.9	4.9	49.2	57.9
Murray-Darling Basin 2001	3.8	27.5	35.0	43.0	50.7	35.0	22.8	217.7
National Feral Animal Control	3.7	3.1	1.6	2.0	5.2	2.7	0.9	19.2
National Land and Water Resources Audit	1.3	2.4	11.8	9.8	11.4	5.4	2.4	44.4
National Landcare(c)	10.2	30.1	48.5	48.8	63.5	31.2	14.2	246.5
National Reserve System	0.4	2.9	11.2	11.4	32.2	(b)20.0	6.0	84.2
National River Health	0.1	1.6	1.7	2.6	7.6	1.8	-	15.4
National Rivercare	-	5.9	14.3	19.1	24.4	14.9	4.4	82.9
National Weeds	2.1	1.3	1.6	0.9	4.6	4.8	13.2	28.5
National Wetlands	0.5	1.6	1.6	3.8	5.7	3.8	0.1	17.1
Riverworks Tasmania	1.8	2.6	0.3	4.2	-	-	-	8.8
Waste Management Awareness	0.2	0.6	0.7	1.0	2.4	1.1	-	6.0
Waterwatch Australia	0.2	2.2	2.4	3.1	2.9	2.6	-	13.4
World Heritage	4.7	10.7	10.0	8.6	9.7	8.9	-	52.5
Total	36.3	131.4	232.1	299.4	395.1	274.7	129.9	1499.0
NHT Extension	-	-	-	-	-	-	100.0	100.0
NHT Reserve interest	-	-	-	-	-	-	36.6	36.6
Total	36.3	131.4	232.1	299.4	395.1	274.7	266.5	1635.6

- denotes nil

(a) This table shows estimates proposed to the Natural Heritage Trust Ministerial Board for approval. Due to rounding, some columns and rows may not add exactly to totals. The Natural Heritage Trust estimates may vary in the future within overall totals. New measures are expressed in outturn prices and other expenditure and revenue figures are expressed in 2000-01 prices. For 1996-97 to 2001-02, interest from the Reserve is included in programme funding.

(b) This figure includes part of the expenses reported in Appendix 2 under Cape York Peninsula.

(c) Natural Heritage Trust funding only. The National Landcare Programme also receives appropriations under the Natural Resources Management (Financial Assistance) Act 1992. In 2000-01, this amounted to $36.8 million and will be $38.5 million in 2001-02.