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2001-02 Budget Paper No. 2

Part 3: Capital Measures since the 2000-01 MYEFO

Table 1: Capital Measures since the 2000-01 MYEFO

Table 1: Capital Measures since the 2000-01 MYEFO (continued)

Table 1: Capital Measures since the 2000-01 MYEFO (continued)

Table 1: Capital Measures since the 2000-01 MYEFO (continued)

Table 2: Capital Measures up to the 2000-01 MYEFO

Agriculture, Fisheries and Forestry

Pricing Review of the Department of Agriculture Fisheries and Forestry

Capital ($m)

Explanation

The Government will provide access to a $13 million line of credit through an equity injection in 2001-02 to the Department of Agriculture, Fisheries and Forestry as an outcome of the pricing review, to assist in undertaking internal reforms designed to achieve future efficiencies. Given the line of credit is provided as a potential reserve, the measure does not have an impact on the fiscal balance.

See also the related expense measure Pricing review of the Department of Agriculture, Fisheries and Forestry in the Agriculture, Fisheries and Forestry portfolio.

Attorney-General's

Protection of the National Information Infrastructure

Capital ($m)

Explanation

The Government has provided funding in 2001-02 to enhance Australia's capability to protect the nation's National Information Infrastructure from unauthorised access and use. Part of this funding, $0.1 million has been provided to the Department of Defence for capital improvements.

See also related expense measure titled Protection of the National Information Infrastructure in the Attorney-General's portfolio.

Australia's response to Foot and Mouth Disease and other Quarantine Risks

Capital ($m)

Explanation

The Government will provide funds to enable the Australian Customs Service to make infrastructure changes to accommodate staff at the airports and to purchase specialised x-ray and audio-video equipment to enhance their detection and investigation activities. This measure will help finance the increased cost of inspecting passengers, mail and cargo at Australia's borders to mitigate the risks of introducing disease, including Foot and Mouth Disease, into Australia.

See related expense and revenue measures titled Australia's Response to Foot and Mouth Disease and Other Quarantine Risks, in the Agriculture, Fisheries and Forestry portfolio.

Communications, Information Technology and the Arts

Australian Broadcasting Corporation - East Perth Building Works

Capital ($m)

Explanation

The Government will provide a loan of up to $21 million in 2002-03 to the Australian Broadcasting Corporation to assist the Corporation to finance the purchase of new office and studio facilities in East Perth. These will replace inadequate buildings and facilities at the existing Adelaide Terrace site. The total cost of the building works is estimated to be $28.5 million. The Australian Broadcasting Corporation will meet the remaining $7.5 million cost from cash reserves ($1.9 million) and a diversion of its planned capital expenditure ($5.6 million). It is expected that $6.9 million of the total cost will be spent in 2000-01.

The East Perth premises will provide modern, digitally equipped facilities, enhancing the Australian Broadcasting Corporation's capacity to meet the challenges of a modern media environment. The current facilities at Adelaide Terrace will be sold and the proceeds used to assist the Australian Broadcasting Corporation's conversion to digital technology. The Joint Standing Committee on Public Works has approved the Perth Accommodation Project.

The figures beyond 2001-02 in the above table represent depreciation of the asset.

Deferral of the further sale of the Commonwealth's shareholding of Telstra Corporation

Capital ($m)

Explanation

The Government has announced that the further privatisation of Telstra would be dependent on the achievement of satisfactory service levels, as recommended in the Telecommunications Service Inquiry. This involves the deferral of sales of further tranches of Telstra shares.

The sale of Telstra affects the Commonwealth's investment in financial assets, and for this reason, it is shown as having a zero impact on fiscal balance.

See also the related expense measures Deferral of the further sale of the Commonwealth's shareholding of Telstra Corporation - sale costs in the Finance and Administration portfolio.

National Gallery of Australia Building Refurbishment and Enhancement

Capital ($m)

Explanation

The National Gallery of Australia will invest $42.9 million on building refurbishment and enhancement. The Government will provide a loan of $20.7 million over two years commencing in 2002-03 to assist the Gallery in financing this initiative.

The building works will improve the environment for the storage and display of the national collection of artworks and provide a safer and more accessible environment to encourage understanding, knowledge and enjoyment of the visual arts.

Cross Portfolio

Revision to the Capital Use Charge

Capital ($m)

Explanation

The Government will reduce the Capital Use Charge levied on agencies' net assets from 12 percent to 11 percent from 1 July 2001 to reflect recent movements in domestic capital and equity markets.

This measure has no impact on the fiscal balance as it only impacts on payments within the General Government sector.

Defence

Defence asset sales

Capital ($m)

Explanation

The Government has agreed to a programme of Defence asset sales including property, plant and equipment of $504.2 million in 2001-02, $345.0 million in 2002-03, $244.9 million in 2003-04 and $288.3 million in 2004-05. All property sales will be undertaken in accordance with Commonwealth property principles. From these sales, $241.0 million in 2001-02, $131.3 million in 2002-03, $135.0 million in 2003-04 and $140.5 million in 2004-05 will be allocated to Defence, which is in addition to the forward estimates and in addition to White Paper funding increases.

Certain properties will be leased back and Defence will be provided with rental supplementation in respect of commercial rent rates charged. See the related expense measure titled Supplementation for commercial rents also in the Defence portfolio.

Employment, Workplace Relations and Small Business

Equal Opportunity for Women in the Workplace Agency on-line services

Capital ($m)

Explanation

The Government will provide $1.2 million over 2001-02 and 2002-03 to enable the Equal Opportunity for Women in the Workplace Agency to acquire information technology, including software, to support on-line lodgment of employer reports and information services. This will reduce compliance costs and the paperwork burden on businesses meeting obligations under the Equal Opportunity for Women in the Workplace Act 1999.

See also the related expense measure titled Equal Opportunity for Women in the Workplace Agency on-line services in the Employment, Workplace Relations and Small Business portfolio.

Environment and Heritage

Townsville Aquarium - Reef Headquarters

Capital ($m)

Explanation

The Government will provide capital funding of $3.1 million in 2001-02 to the Great Barrier Reef Marine Park Authority for the refurbishment of the Authority's Townsville Aquarium - Reef Headquarters. This additional funding will enhance the facility for visitors and ensure that health and safety standards are maintained.

Additional work generated by the measure will create employment opportunities in the region.

See also the related expense measure Townsville Aquarium - Reef Headquarters in the Environment and Heritage portfolio.

Family and Community Services

Helping Parents to Return to Work

Capital ($m)

Explanation

The Government will provide funding of $11.1 million over two years to Centrelink for the development of computer software required for the implementation of the Australians Working Together package.

See also the related capital measure titled Help to Participate in the Family and Community Services portfolio, and the related expense measure titled Helping Parents to Return to Work in the Family and Community Services portfolio.

The Department of Family and Community Services will absorb the cost of this measure.

Help to Participate

Capital ($m)

Explanation

The Government will provide funding of $5.8 million in 2001-02 to Centrelink for the development of computer software required for the implementation of the Australians Working Together package.

See also the related capital measure titled Helping Parents to Return to Work in the Family and Community Services portfolio, and the related expense measure titled Help to Participate in the Family and Community Services portfolio.

Finance and Administration

Construction of new chancery facilities in Colombo and New Delhi

Capital ($m)

Explanation

The Government will construct new facilities for Australia's overseas representation in Colombo, Sri Lanka and New Delhi, India. Current facilities are old, in need of major refurbishment and suffer from overcrowding.

The facilities will be funded from reserves held by the Department of Finance and Administration. The costs of the new facilities will be recovered over time through charges on the occupying agencies.

Sale of Sydney Airports Corporation Limited

Capital ($m)

Explanation

Following consideration of the report prepared by the Office of Asset Sales and Commercial Support on the options for the future ownership of the Sydney Airports Corporation Limited, the Government has decided to sell Kingsford Smith Airport.

The sale of Kingsford Smith Airport affects the Commonwealth's investment in financial assets, and for this reason, it is shown as having a zero impact on fiscal balance.

See also the related expense measures Sale of Kingsford Smith Airport - sale costs and Scoping study for the future ownership of Sydney Airports Corporation Limited in the Finance and Administration portfolio.

Foreign Affairs and Trade

Improving security within the Australian Intelligence Community

Capital ($m)

Explanation

The Government will provide additional funding to the Australian Security Intelligence Organisation, the Australian Secret Intelligence Service and the Office of National Assessments to undertake physical security improvements within these agencies. The Department of Defence will absorb and the Attorney-General's Department will offset the cost of implementing security enhancements.

See also the related expense measure titled Improving security within the Australian Intelligence Community in the Foreign Affairs and Trade portfolio.

Replacement of secure diplomatic communications network

Capital ($m)

Explanation

The Government will provide additional funding of $35.9 million over three years to contribute to the replacement of the secure diplomatic communications network. This measure will fund software and infrastructure costs for the Secure Australian Telecommunications and Information Network.

The network will support secure messaging, office automation and network services between Australia (covering 12 Commonwealth agencies) and Australian Government posts overseas.

Health and Aged Care

HealthConnect: a Health Information Network for Australia - Development Phase

Capital ($m)

Explanation

In order to lay the foundations necessary for building a robust system of health information exchange, this measure provides capital of $0.2 million in 2001-02 for the purchase of computing infrastructure for the implementation site. Together with $15.8 million in a related expense measure and $2.5 million of previously committed funding, the total Commonwealth contribution will be $18.5 million over two years. States and Territories will provide matching contributions to the total Commonwealth funding.

See also the related expense measure HealthConnect: a Health Information Network for Australia - Development Phase in the Health and Aged Care portfolio.

Investment to upgrade the Health Insurance Commission technical infrastructure to improve service

Capital ($m)

Explanation

This measure provides for an investment in the Health Insurance Commission's information systems infrastructure. It will result in an enhancement of the Health Insurance Commission's ability to meet community and consumer expectations of high-quality cost-effective claims management, while minimising the potential for fraud and over-servicing.

This investment is funded through the savings described in the related expense measure, Investment to upgrade the Health Insurance Commission technical infrastructure to improve service in the Health and Aged Care portfolio, and a draw-down of the Health Insurance Commission's cash reserves of $15 million in 2001-02.

Immigration and Multicultural Affairs

New social security arrangements between Australia and New Zealand

Capital ($m)

Explanation

The Department of Immigration and Multicultural Affairs will incur capital expenditure to develop and enhance the Integrated Client Services Environment system. This system is expected to face an increased workload arising from the new bilateral social security arrangements agreed between Australia and New Zealand in early 2001.

See also the related expense and revenue measures, New social security arrangements between Australia and New Zealand, in the Immigration and Multicultural Affairs and the Family and Community Services portfolios.

Unauthorised boat arrivals - review of processing and detention arrangements

Capital ($m)

Explanation

The Government has agreed to capital works spending over 2000-01 and 2001-02 to improve the administrative processing of unauthorised boat arrivals. This measure will fund enhancements to infrastructure (including security perimeter fencing and facility upgrade and completion costs) at the detention facilities at the Woomera and Villawood centres.

This measure reflects the outcome of a review of these arrangements (announced in the 2000-01 Budget).

See also related expenses measure, Unauthorised boat arrivals - a review of processing and detention arrangements in the Immigration and Multicultural Affairs portfolio.

Industry, Science and Resources

Backing Australia's Ability - R&D Start

Capital ($m)

Explanation

This measure is part of the Govertnment's commitment to provide $534.9 million over five years to continue the R&D Start Program. The programme is designed to assist Australian industry undertake research and development and commerialisation of new ideas.

Of this total, $54 million will be provided in the form of loan funding of $8 million in 2002-03 and $15 million in each of 2003-04 and 2004-05.

The provision of loans affects only the composition of the Commonwealth's financial assets. As such this measure has a zero impact on fiscal balance.

See also the related expense measures title Backing Australia's Abililty - 175 per cent Premium Rate - R&D Tax Concession and Backing Australia's Ability - R&D Start and the related revenue measure title Backing Australia's Ability - 125 per cent effective life write-off for R&D plant in the Treasury portfolio.

Support for the Commercialisation of Production Technology in the
Light Metals Sector

Capital ($m)

Explanation

The Government will ensure that CSIRO can continue its work with the light metals sector to commercialise new production technology. The technology has been jointly developed to date in partnership with the Australian Magnesium Corporation. CSIRO's continuing role will focus on the final late-stage research and development phase.

This measure will ensure that the Government (through CSIRO) retains an interest in the intellectual property rights and future financial benefits resulting from the commercialisation of this technology. The Government will facilitate this work through a $50 million loan to CSIRO in 2001-02.

Transport and Regional Services

Improvements in search and rescue arrangements

Capital ($m)

Explanation

The Government will provide capital of $1.7 million in 2001-02 to increase the capabilities of the Australian Maritime Safety Authority. Funding will be used to purchase Forward Looking Infra Red equipment providing night search capabilities and specialised equipment to locate distress beacons. This equipment will be installed in a selection of aircraft available to respond to search and rescue incidents.

See also related expense measure titled Improvements in search and rescue arrangements in the Transport and Regional Services portfolio.

Aviation industry compliance

Capital ($m)

Explanation

The Civil Aviation Safety Authority will undertake capital works totaling $11.8 million over four years for the development of new information technology systems in the Civil Aviation Safety Authority. The new systems will enable the Authority to implement updated regulations aimed at improving aviation safety.

Further information

See also related expense measure titled Aviation industry compliance in the Transport and Regional Services portfolio and the related revenue measure titled Aviation industry compliance in the Treasury portfolio.

Australian Rail Track Corporation - equity funding

Capital ($m)

Explanation

The Government will provide an equity injection of $111.0 million for the Australian Rail Track Corporation to fund rail track initiatives in New South Wales. This funding is provided for in the Contingency Reserve because it is subject to a business case being agreed with the Government.

As the injection of equity outside the General Government sector only affects the composition of the Commonwealth's investment in financial assets, this measure has no impact on the fiscal balance.

See also the related expense measure titled Savings from the Upgrade of Mainline Interstate Railway Track Programme in the Transport and Regional Services portfolio.

Commonwealth Place

Capital ($m)

Explanation

The Government will provide a capital injection of $5 million in 2001-02 to the National Capital Authority to fund additional work for the construction of Commonwealth Place which will be located in the heart of the Parliamentary Zone in Canberra. Commonwealth Place will become a significant national public place for Australians to participate in events and ceremonies. This funding is in addition to $3 million allocated for this project in 2000-01, and will be used to construct the amphitheatre, a formal walkway, a restaurant, a café and offices for Reconciliation Australia.

Treasury

Fitout of the Australian Bureau of Statistics new national office building

Capital ($m)

Explanation

The Government has provided the Australian Bureau of Statistics with a loan of $13.2 million to partially fund the fitout cost of its new national office accommodation. The fitout is expected to cost $27.8 million. The new accommodation will be completed prior to March 2002.

Provision for this funding has already been included in the forward estimates.

Veteran Affairs

Output Pricing Review - Conversion of Loan to Equity

Capital ($m)

Explanation

The Government has endorsed the outcomes of a pricing review for the Department of Veterans' Affairs. The review identified areas where savings could be made and areas where additional investment in the department's business was required in order to achieve further efficiencies.

Further equity funding of $8 million, by the conversion of an existing loan to equity in 2000-01 has improved the department's equity and current ratio. As the conversion of a loan to equity is a financing transaction only there is no impact on the fiscal balance.

Output Pricing Review - Review of efficient delivery of Outputs

Capital ($m)

Explanation

The Government has endorsed the outcomes of a pricing review for the Department of Veterans' Affairs (DVA). The review identified areas where additional investment in DVA business was required in order to achieve further efficiencies.

In order for the department to manage the reforms to their business, equity funding of $5.5 million in 2001-02 and $2.2 million in 2002-03 is provided. As equity funding will be partly used to extinguish liabilities, there is no impact on the fiscal balance in 2000-01.

See also related expense measure Output Pricing Review - Review of Efficient Delivery of Outputs in the Veterans' Affairs portfolio.