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• Overview
• Regional Australia: A Partnership for Stronger Regions
• Regional Budget Highlights
• Infrastructure
• Industry sector-specific initiatives
• Fostering business
• Environmental sustainability
• Health and aged care
• Regional programmes
• Regional infrastructure
• Industry and science
• Industry sector-specific initiatives
• Fostering business
• Building capacity
• Promoting investment
• Australia's non-self-governing territories

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REGIONAL AUSTRALIA:

A PARTNERSHIP FOR STRONGER REGIONS

STATEMENT BY
THE HONOURABLE JOHN ANDERSON, MP
DEPUTY PRIME MINISTER
MINISTER FOR TRANSPORT AND REGIONAL SERVICES

AND

THE HONOURABLE WILSON TUCKEY, MP
MINISTER FOR REGIONAL SERVICES, TERRITORIES AND
LOCAL GOVERNMENT

14 MAY 2002

© Commonwealth of Australia 2002

ISBN 174092702 8

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from AusInfo. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Legislative Services, AusInfo, GPO Box 1920, Canberra ACT 2601.

Printed by CanPrint Communications Pty Ltd

Contents

Overview

Regional Australia: A Partnership for Stronger Regions

Regional Budget Highlights

Infrastructure

Roads

Support for regional air services

Tasmanian Equalisation

HIsmelt Technology

Industry sector-specific initiatives

National Food Industry Strategy

Fostering business

TradeStart

Diesel Fuel Rebate Scheme

Environmental sustainability

Natural Heritage Trust

Environmental management systems

Health and aged care

Better treatment for cancer patients - radiation oncology

Palliative care in the community

Capital assistance for aged care

Regional programmes

Sustainable Regions Programme

Strengthening regional economic and social opportunities

Regional infrastructure

HIsmelt technology

Syngas technology

Wodonga rail bypass and freight transfer centre

Gold Coast light rail feasibility study

Support for regional air services

Commonwealth roads programme

Roads to Recovery Programme

Black Spot Programme

A stronger Tasmania

Northern Mallee Pipeline - Stage 7 South

Improvement of major infrastructure in the Torres Strait

Social Bonus initiatives in telecommunications

NTN - Local Government Fund

NTN - Remote and Isolated Island Fund

NTN - Building Additional Rural Networks (BARN)

Television Black Spots - Alternative Technical Solutions Programme

Regional Equalisation Plan

Defence infrastructure

Industry and science

National Innovation Awareness Strategy

Geoscience Australia

Biotechnology Online Education Resource

Gene Technology Information Service

Rural and Regional Communications Programme

Biotechnology Australia website

Bureau of Rural Sciences social sciences programme

New Industries Development Programme

Industry sector-specific initiatives

National Food Industry Strategy

Beef Expo 2003

Gracemere Exhibition Centre

FarmBis

Regional Tourism Programme

See Australia

Holiday Incentive Programme

Shipbuilding Innovation Scheme

Shipbuilding bounty

Post-2000 Textiles, Clothing and Footwear Assistance Package

Automotive Competitiveness and Investment Scheme

Fostering business

Reduction in Australian Quarantine Inspection Service export programme fees and charges

New Exporter Programme

TradeStart

Regional Business Development Analysis

Small Business Assistance Programme

Extension of the Diesel Fuel Rebate Scheme to retail and hospitality businesses

Giving cooperatives the option to frank dividend payments

Bass Strait Passenger Vehicle Equalisation Scheme

Tasmanian Freight Equalisation Scheme

Business Entry Point

Building capacity

Prime Minister's Community Business Partnership

AAA-Farm Management Deposits Scheme

Regional Solutions Programme

Backing Australia's Sporting Ability

Promoting self reliance for Indigenous people

Indigenous Communities/Mining Industry Regional Partnerships Programme

Regional Women's Unit

National Rural Women's Secretariat

Promoting investment

Revamped Invest Australia

Major Projects Facilitation

Feasibility Study Fund

Investment Guide for Regional Australia (Inside Intelligence)

Strategic Investment Coordination

Export Market Development Grant extension

Supplier Access to Major Projects Programme

Action agendas

Enhanced Project By-Laws Scheme

AusIndustry

Australia's non-self-governing territories

Indian Ocean Territories funding for Government services and infrastructure

New freight and passenger facilities at Rumah Baru on West Island, Cocos (Keeling) Islands

Service delivery to the Jervis Bay Territory

Sustaining our productive natural resources and environment

Prevention

Government and Livestock Industry Cost Sharing Deed in Respect of Emergency Animal Diseases

Building a National Approach to Animal and Plant Health

Enhancing animal health infrastructure

Red Imported Fire Ant Eradication Programme

Northern Australia Quarantine Strategy

Australia's response to foot and mouth disease and other quarantine risks

ChemCollect

Conservation

Incentives for Environmental Management Systems in Agriculture

Conservation covenants

Corporatisation of the Snowy Mountains Hydro-electric Authority: Commonwealth funding for implementation of environmental flows

Management of Australia's land and inland water resources

Natural Heritage Trust

Great Barrier Reef Marine Park Authority

Care and development of the Great Barrier Reef Marine Park

Management of aquaculture impacts

Townsville Aquarium - Reef Headquarters

Energy and greenhouse

Launceston Woodheater Replacement Programme

Energy Efficiency Best Practice Programme

Australia Greenhouse Office

Renewable Remote Power Generation Programme

Greenhouse Gas Abatement Programme

Diesel and Alternative Fuel Grant Scheme

Bush for Greenhouse

Natural disasters

Regional Flood Mitigation Programme

Natural Disaster Relief Arrangements

Natural Disaster Risk Management Studies Programme

Delivering better regional services

Service delivery

Centrelink service to regional Australia

Financial Assistance Grants

Rural Transaction Centres Programme

More Accessible Government

Remote Communities Liaison Service

Petroleum Products Freight Subsidy Scheme

Employment

Community Development Employment Projects

Regional Assistance Programme

Area Consultative Committees

Australians Working Together

Job Network

Family services

Baby bonus

Family and Community Network Initiative

Stronger Families and Communities Strategy

Family relationships

Men and Family Relationships Programme

Family Relationships Education Programme

Partnerships Against Domestic Violence

Reconnect

Flexible and innovative child care services

Jobs Education and Training Programme

Health and aged care

Better treatment for cancer patients - radiation oncology

Croc Festivals - support for Indigenous youth

Medical Specialist Outreach Assistance Programme

Palliative care in the community

Aged care

Capital assistance for aged care in rural and remote Australia

Increased residential aged care subsidies

Review of pricing arrangements for residential aged care

More aged care nurses and training for personal care workers

Community Aged Care Packages

Carers of older Australians

Support for carers of people with dementia

Support for ageing carers of people with disabilities

Higher Education Contribution Scheme reimbursement

Workforce Support for Rural General Practitioners Programme

New General Practitioner Registrars

Medical rural bonded scholarships

Medical Specialist Outreach Assistance Programme

Rural Retention Programme

Practice Incentive Programme Rural Incentives

Rural Women's General Practitioner Service

Rural clinical schools

University departments of rural health

Rural Australia Medical Undergraduate Scholarship Scheme

Royal Flying Doctor Service

Rural and Remote General Practice Programme

Divisions of General Practice Programme

Rural Undergraduate Support and Coordination Programme

John Flynn Medical Scholarships

Advanced Specialist Training Posts in Rural Areas

Support for medical families in rural and remote communities

Additional practice nurses for rural Australia

Rural nursing scholarships

Nursing and midwifery education initiatives

Extended Community Visitors Scheme and Advocacy

Aged Care Adjustment Grants for Small Rural Facilities

Subsidisation of the accreditation fee for small residential aged care facilities

Multipurpose Services Programme

Targeted Capital Assistance

Enhanced Rural and Remote Pharmacy Package

Services and support to Indigenous Australians

Access to Medicare

The Primary Health Care Access Programme

National Strategic Framework for Aboriginal and Torres Strait Islander Health - Framework for Action by Governments

Aged care

Preventing substance abuse

After-hours primary medical care services

More Allied Health Services Programme

Bush nursing, small community and regional private hospitals

Rural Chronic Disease Initiative

National Radiotherapy Single Machine Unit Trial

Regional Health Services Programme

Expanded Medicare Easyclaim facilities

National Palliative Care Strategy

Mental Health: More Options, Better Services

National Mental Health Strategy: Rural Activities

Just Ask, Lifeline's Rural Mental Health Information Service

National Suicide Prevention Strategy

Mental Health Integration Projects

Support for Commonwealth - State/Territory Disability Agreement

Recognising and improving the capacity of people with a Disability

Concessions for Commonwealth Seniors Health Card Holders

Veterans' programmes

Education and training

Boosting rural veterinary services

Review of Australia's veterinary profession to address the shortage of rural-based large livestock veterinarians

Higher education places for regional universities and campuses

Expand the geographic coverage of Enterprise and Career Education Foundation work placement coordinators

Australians Working Together - increased education and training assistance for Indigenous students

Increased Assistance for Isolated Children

Country Areas Programme

Connecting Tasmanian schools

Indigenous Education Programmes

Citizenship Visits Programme

Communications and information technology

Trials in Innovative Government Electronic Regional Services

Untimed local calls

Mobile phones on highways

Mobiles for Towns Over 500 Programme

National Communications Fund

Regional Mobile Phone Programme

Internet Assistance Programme

The Universal Service Obligation and the Digital Data Service Obligation

Commercial Radio Blackspots Programme

SBS television rollout

Extension of SBS Television to transmission areas with 5,000 to 10,000 people

ABC regional and local programming

Television Black Spots Programme

Second Remote Commercial Television Service Subsidy

Regional Communications Partnership

ABC Local Radio Self-Help Rebroadcasting Subsidy Scheme for cyclone-incident areas in northern Australia

ABC Minor Extensions Programme

SBS Self-Help Retransmission Subsidy Scheme

Regional emergency communications

Tax

Inspector-General of Taxation

Weather

Improved rural weather services

Web access to current weather data

Upgrade of the weather radar network

Improved historical climate record

Online meteorological information for rural users

Interacting with the regional and rural Australia on climate issues

Access to flood and rainfall information

Crime prevention

Expanding the capacity of Crime Stoppers

Northern Territory Juvenile Diversion Scheme and Aboriginal Interpreter Service

National Crime Prevention Programme

Additional resourcing for native title

Arts

Young and Emerging Artists Programme

National media based youth arts festival

Contemporary Music Touring Programme

Heritage Collections

Australian Museums and Galleries Online

OzeCulture Grant Programme

Regional Arts Fund

Playing Australia

Visions of Australia

Festivals Australia

National Arts and Museums Regional Volunteer Skills Project

Major Federation Fund

Federation Cultural and Heritage Projects Programme

Adjusting to economic and technological change

Sustainable Regions Programme

South-west Forests Structural Adjustment Package

Wide Bay Burnett Structural Adjustment Package

Exceptional circumstances drought assistance to the northern wheatbelt of Western Australia

Exceptional circumstances drought assistance to Western Australia and Queensland

Farm Help

Regional assistance

Rural Financial Counselling Service

Dairy Regional Assistance Programme

Agricultural Development Partnerships

Overview

Regional Australia: A Partnership for Stronger Regions

The hallmark of this Government since it came to office in 1996 has been its determination to build a strong and vibrant nation that can face its future with confidence.

Our economic management and reform agenda has created an economy that has entrenched low inflation, seen interest rates reach an all-time low, opened up new export opportunities, encouraged investment and created hundreds of thousands of new jobs.

This has been achieved in an uncertain and volatile international environment that has been rocked by major shocks such as the Asian economic downturn and more recently, the unpredictable and extreme actions of those who seek to achieve their aims through terror.

This Government recognises that we owe much of our current economic success to the efforts of those who live in rural and regional Australia, and that our continued national prosperity will depend significantly on the strength of our regions.

We also recognise that regional Australia has borne much of the brunt of economic reform, and that while many areas are now seeing and experiencing the real benefits of the modernisation of our economy, others continue to struggle.

To help meet the unique challenges facing our remote, rural and regional communities, we have sought to develop a new partnership between government, regional communities and the private sector. A key philosophy of our approach is to support local ideas and aspirations, so that communities can lead their own development and realise their own future.

We have listened to what regional Australians have had to say through major forums such as the Regional Australia Summit, the Northern Australia Forum, and an extensive series of local consultations. We have responded by developing policies that, for the first time, recognise and reflect that different communities face different challenges and have different needs.

To meet those needs, we have delivered innovative and flexible new programmes such as Regional Solutions, Rural Transaction Centres, and measures to help specific communities overcome the difficulties posed by globalisation and structural change to their traditional industries.

We have also invested strongly in the building blocks of social and economic development through major initiatives in health (for example More Doctors: Better Services), education and training (New Apprenticeships), telecommunications (Networking the Nation), and sustainable environmental management (National Heritage Trust and the National Action Plan for Salinity and Water Quality).

This Government has taken a `whole of government' approach to addressing the concerns of regional Australia, ensuring that Federal Government activity in our regions is well coordinated, as a crucial step in delivering what communities need.

In August last year, the Government reinforced its commitment to this `quiet revolution' in our approach to regional development through the Stronger Regions: A Stronger Australia statement. The statement articulates the approach we will take over the decade, in partnership with regional communities, to:

• strengthen regional economic and social opportunities;
• sustain our productive natural resources and environment;
• deliver better regional services; and
• adjust to economic and technological change.

This regional Budget statement outlines Federal Government measures over the coming financial year to help meet these aims, building on our solid record of achievement in delivering practical initiatives that are making a real difference in regional Australia.

This Budget delivers on our election promises and continues the work that must be done to build strong and vibrant regions.

All measures that will have an impact in regional Australia are outlined in this statement, but the following provides a small sample of initiatives that will help address critical and immediate needs.

The Government will continue to invest heavily in transport infrastructure, recognising its importance to the future development of local and regional economies.

For example, in 2002-03 we will spend $1.7 billion on the nation's roads. This includes a further instalment on the innovative Roads to Recovery Programme, major spending on untied local roads grants, and funding to extend the Black Spot Programme to reduce crashes at sites and sections of roads with a poor safety history.

We will help to address Tasmania's unique transport requirements by providing $26.7 million in 2002-03 for the Bass Strait Passenger Vehicle Equalisation Scheme and $71 million for the Tasmanian Freight Equalisation Scheme.

The Government has increased funding for the passenger vehicle scheme, which helps to reduce the cost of transporting passenger vehicles to and from Tasmania, by $8.3 million or a massive 45 per cent. Funding for the freight equalisation scheme will help Tasmanian industries ship products across Bass Strait, recognising that they do not have the option of transporting goods to mainland Australia by road or rail.

We will continue our programme to repair and replenish Australia's natural environment through a $1 billion, five-year extension of the Natural Heritage Trust.

The trust has been very successful in raising awareness and understanding within the Australian community of environmental issues. Since its inception in 1996, almost 400,000 Australians have been involved in more than 11,800 environmental and natural resource management projects.

This additional Budget funding reflects lessons that have been learnt over the last six years, with funding being directed towards activities under four key programmes ~ landcare, bushcare, rivercare and coastcare. It brings our total funding for the Natural Heritage Trust to $2.5 billion and represents an 11-year commitment to the conservation of our unique and precious natural environment.

The provision of quality health care services in regional communities remains one of our highest priorities, particularly for those facing the most difficult of life circumstances.

To this end, we are providing nearly $73 million over four years for better treatment for cancer patients, with a particular emphasis on regional communities. This funding will increase the availability of radiotherapy services for patients living in regional areas, provide for up to six new regional radiotherapy centres, and provide for measures to ensure there are sufficient staff to treat patients.

Australians living in rural and regional areas will also benefit significantly from other broader community health care measures outlined in this Budget, including a four-year $55 million palliative care initiative to enable people to receive treatment in a dignified manner and in a setting of their choice.

The Government has boosted its spending on aged care to $5.6 billion in 2002-03, an increase of half a billion dollars over the 2001-02 Budget allocation. More than 40 per cent of aged care places are located in remote, rural and regional areas of Australia ~ this is greater than the proportion of people aged 70 years and over who live in these areas.

Australia's food processing and horticulture industries are critical to many regional economies and to the overall health of this country. These industries are facing significant global change.

To ensure the Australian food industry becomes a major player in the global food production system, the Government is committing $102.4 million over five years to implement a National Food Industry Strategy.

The main elements of this joint government-industry initiative are: the establishment of a National Food Industry Council; measures to encourage product and service innovation; the development and implementation of an international food trade initiative; and measures to build more competitive supply chains and improve national food safety and quality systems.

More than 225,000 people are already employed within Australia's food industry. This strategy will stimulate investment, create export opportunities, and deliver economic growth and more jobs to rural and regional areas.

Many more important measures are described in the pages that follow. They demonstrate this Government's recognition of the important contribution our regions make to the economic and social wellbeing of this nation. They also demonstrate our continued commitment to ensuring a sustainable long-term future for the communities of regional Australia.

Regional Budget Highlights

Infrastructure

Roads

The Federal Government will deliver $1.7 billion for our nation's roads, including a $200 million further instalment on the innovative Roads to Recovery Programme, a four-year $180 million extension of the Black Spot Programme to help eliminate crash sites, and major spending on untied local roads grants.

The spending on Roads to Recovery is the largest funding injection into local roads by any Commonwealth Government, and is in addition to untied local roads funding provided to councils through the Financial Assistance Grants Scheme.

Support for regional air services

As part of its ongoing support for regional airlines, the Federal Government will provide $13 million in 2002-03 to support regional air services and general aviation.

Regional airlines will continue to be exempted from enroute charges imposed by Airservices Australia, saving the industry $6 million in 2002-03. In addition, the Government will spend $7 million in 2002-03 to help Airservices Australia provide reasonably priced tower services at regional and general aviation airports.

Tasmanian Equalisation

The Federal Government will provide $26.6 million in 2002-03 for the Bass Strait Passenger Vehicle Equalisation Scheme, boosting funding by $8.3 million or 45 per cent. This scheme helps reduce the cost of transporting passenger vehicles to and from Tasmania.

As Tasmanian industries do not have the option of transporting goods to the mainland by road or rail, the Government will provide funding of $71 million for the Tasmanian Freight Equalisation Scheme to help ship products across Bass Strait.

HIsmelt Technology

A $125 million investment under the Strategic Investment Coordination process will be paid to Rio Tinto to commercialise and develop HIsmelt technology. The incentive, to be paid over three years from 2004-05, will be used to develop multi-user infrastructure to secure the commercialisation and development of HIsmelt technology at Kwinana in Western Australia.

This project will generate additional infrastructure investment in the Kwinana region, and may include a co-generation power plant, an industrial gas plant, waste water recycling infrastructure and raw material handling infrastructure.

Industry sector-specific initiatives

National Food Industry Strategy

Assistance worth $102.4 million over five years will develop and implement a National Food Industry Strategy. The strategy will help position Australia as a significant player in the global food production system, creating new investment, export opportunities and jobs, largely in regional areas.

The main elements of this joint government-industry initiative are: the establishment of a National Food Industry Council; measures to encourage product and service innovation; the development and implementation of an international food trade initiative; and measures to build more competitive supply chains and improve national food safety and quality systems.

Fostering business

TradeStart

A $21.5 million extension of the successful TradeStart programme will be committed over four years to ensure more small and medium-sized companies in regional Australia get the support they need to succeed in international markets. Ten new offices will be opened, bringing the total number of TradeStart offices in regional Australia to 34.

Diesel Fuel Rebate Scheme

To help reduce business costs in regional and remote areas of the country, eligibility for the Diesel Fuel Rebate Scheme will be extended to retail and hospitality businesses where there is no access to commercial supplies of electricity and the electricity generated is for their own use.

Environmental sustainability

Natural Heritage Trust

The Natural Heritage Trust was established by the Federal Government in 1996 to repair and replenish Australia's natural capital infrastructure.

The Government will provide a further $1 billion to extend the trust for a further five years from 2002-03, bringing total funding since 1996 to more than $2.7 billion. This represents more than 11 years commitment to funding on-ground actions to conserve and repair Australia's unique environment.

Environmental management systems

The Federal Government will provide funding of $25 million over five years for the Incentives for Environmental Management Systems (EMS) in Agriculture programme, to support primary producers in adopting an environmental management system.

Fifty per cent of the costs of eligible EMS expenditure, up to a maximum of $3,000 for each primary producer on taxable incomes up to $35,000 per annum, will be reimbursed. The programme will be funded from within the Natural Heritage Trust.

Health and aged care

Better treatment for cancer patients - radiation oncology

Funding of nearly $72.7 million over four years will be provided under the Better Treatment for Cancer Patients - Radiation Oncology initiative. The initiative will place an emphasis on cancer patients in regional communities; funding will increase the availability of radiotherapy services, provide up to six new regional radiotherapy centres, and support measures that ensure there are sufficient staff to treat patients.

Palliative care in the community

Regional Australia will benefit significantly from $55 million over four years towards palliative care. The funding will improve capacity in the primary care workforce; enhance, coordinate and support health and other support systems; develop better reporting and information systems; build evidence on funding and service delivery; improve access to medications and raise awareness in the wider community.

Capital assistance for aged care

More than 40 per cent of aged care places are located in remote, rural and regional areas of Australia. $5.6 billion will be spent on aged care, an increase of $500 million over last year's budget allocation.

Regional programmes

The Federal Government will spend $113.2 million on programmes to support regional communities, including Regional Solutions, Rural Transaction Centres, Sustainable Regions and Regional Assistance.

Sustainable Regions Programme

The Sustainable Regions Programme is assisting selected regions undergoing major economic, social or environmental change. Funding of $36.2 million for 2002-03 will assist these regions to plan for the future, build capacity for strategic and informed decision making at the regional level and contribute to the implementation of projects that can make a real difference to economic opportunity and quality of life.

Strengthening regional economic and social opportunities

Regional infrastructure

HIsmelt technology

The Government will provide $125 million over three years from 2004-05 to Rio Tinto under the Strategic Investment Coordination process to commercialise and develop HIsmelt technology. The incentive will be used to develop multi-user infrastructure to secure the commercialisation and development of HIsmelt technology at Kwinana, Western Australia.

The HIsmelt project will generate additional industrial infrastructure investment in the Kwinana region. Such infrastructure may include a co-generation power plant, an industrial gas plant, waste water recycling infrastructure and raw material handling infrastructure. Phase one of the HIsmelt project will provide direct employment for 325 people during the construction period and provide 60 positions during operation.

Syngas technology

The Government will provide $85 million over two years from 2002-03 to Methanex Corporation under the Strategic Investment Coordination process to develop multi-user infrastructure on the Burrup Peninsula in Western Australia, and to undertake research and development into advanced syngas technology in partnership with industry and Australian research bodies.

The Methanex syngas and methanol project will bring forward public and private sector infrastructure investment in the Pilbara region. Such infrastructure may include: offshore gas processing facilities; water supply; port infrastructure and facilities; de-salination facilities; electricity generation facilities; and a gas pipeline to the King Bay/Hearson Cove industrial estate.

The Methanex syngas and methanol project will provide direct employment for 1,000 people during the construction period and provide 150 full-time positions during operation with an ongoing requirement for contract maintenance labour. In 2005, the peak year of construction of the first syngas and methanol train, Access Economics estimates that overall employment in Australia would increase by 5,700. Much of the overall employment impact would occur in Western Australia, and to a lesser extent, the Pilbara region.

Wodonga rail bypass and freight transfer centre

The Government will spend $20 million over the next two years to build a rail bypass of Wodonga and an intermodal freight terminal serving the border region. The Government will contribute $15 million in 2002-03 and $5 million in 2003-04 towards the $50 million cost of the project. The Victorian Government will contribute the remainder of the cost.

Construction of the Wodonga rail bypass is expected to begin later this year, with completion scheduled for late 2004.

The project involves relocating the existing railway line from Wodonga's central business district, eliminating 12 level crossings and reducing traffic congestion. This will increase the efficiency of interstate freight operations on the important Sydney-Melbourne rail corridor.

Gold Coast light rail feasibility study

The Federal Government will spend $650,000 in 2002-03 on the feasibility study for the proposed Gold Coast light rail system, with the Queensland Government to contribute a similar amount.

Modern light rail systems have been the catalyst for new development and revitalisation in cities where they have been introduced. Light rail helps reclaim cities for the people, by reducing their dependence on cars. The study is expected to be completed by December 2003 and will be managed by the Gold Coast City Council and the Queensland Government. A consultant is expected to be appointed in late June 2002.

Support for regional air services

As part of its ongoing support for regional airlines, the Federal Government will provide $13 million in 2002-03 to support regional air services and general aviation.

Regional airlines will continue to be exempted from the enroute charges imposed by Airservices Australia. This will save the industry $6 million in 2002-03. The exemption applies to all regional airline aircraft and aeromedical aircraft with a maximum take-off weight of 15 tonnes or less. It came into effect on 1 January 2002.

In addition, the Government will spend $7 million in 2002-03 to help Airservices Australia provide reasonably priced tower services at regional and general aviation airports. These airports handle 1.5 million passengers a year and are an essential part of the national air transport system.

Tower services will continue to be subsidised at Albury, Coffs Harbour, Launceston, Hobart, Mackay, Maroochydore, Rockhampton, Tamworth, Archerfield, Bankstown, Camden, Jandakot, Moorabbin, Parafield and Essendon. The tower charges at these airports will continue to be $7.42 per landed tonne (including GST), even though the actual cost of running the towers is much higher.

Airservices Australia will continue to cap charges for general aviation users at Cairns, Coolangatta, and Canberra.

Commonwealth roads programme

The Federal Government will spend $1.7 billion in 2002-03 across all categories of roads, with record sums in New South Wales and Victoria and boosted spending elsewhere due to the Roads to Recovery Programme and Black Spot Programme.

Most of the money is allocated to projects in non-urban areas.

The Government has stepped up its funding under Roads of National Importance category roads under which it shares the cost of the major road improvements. The Pacific Highway is one such route and includes the largest road project under way in rural Australia - the $350 million Yelgun-Chinderah deviation south of Tweed Heads. It should open to traffic by September 2002.

Thousands of road projects are being funded on local roads under the Roads to Recovery Programme. Of the $1.2 billion available over four calendar years, $200.2 million will be paid to local councils in 2002-03. The 720 councils around Australia also share $441.4 million in untied local road grants. Both programmes allow councils to spend this Commonwealth money according to local priorities they set themselves.

Roads to Recovery Programme

The Federal Government will deliver a total of $1.2 billion for local roads under the Roads to Recovery Programme - a special assistance package to Australia's 720 local government areas to boost their roads spending above that provided through rate revenue or other sources. It is the largest funding injection into local roads by any Commonwealth Government, and is in addition to Commonwealth assistance for roads through the Financial Assistance Grants Scheme.

Originally, programme expenditure of $300 million was planned in 2002-03. Yearly allocations will be re-profiled so that the Commonwealth will spend $200 million on Roads to Recovery in 2002-03, and increase expenditure on the programme from $150 million to $250 million in 2004-05.

The commitment to spend a total of $1.2 billion on the Roads to Recovery Programme by 2004-05 remains.

State or Territory	Previous estimate 2002-03 $m	Current estimate 2002-03 $m	Previous estimate 2004-05 $m	Current estimate 2004-05 $m
New South Wales	85.0	56.7	42.5	70.8
Victoria	62.5	41.7	31.25	52.1
Queensland	62.5	41.7	31.25	52.1
Western Australia	45.0	30.0	22.5	37.5
South Australia	25.0	16.7	12.5	20.8
Tasmania	10.0	6.7	5.0	8.3
Northern Territory	5.0	3.3	2.5	4.2
Australian Capital Territory	5.0	3.3	2.5	4.2
Total	300.0	200.0	150.0	250.0

An additional sum of $2.2 million has been allocated in 2002-03 for Roads to Recovery Programme expenditure on Indian Ocean Territories and unincorporated areas of States not under direct council administration.

Black Spot Programme

The Federal Government has committed to extend the road safety Black Spot Programme by providing a further $180 million over four years towards reducing crashes at sites and sections of road with a poor safety history. The National Black Spot Programme will now continue until 30 June 2006.

Black Spot Programme funding for 2002-03 will be $45 million nationally - an increase on the average annual allocation of around $38 million during the past six years. Each State and Territory will receive an annual Black Spot allocation according to population and proportion of casualty crashes.

Half the programme funds will be reserved for reducing road trauma in rural areas.

The Black Spot Programme has been found to be instrumental in reducing road trauma, which costs the Australian community $15 billion a year.

A stronger Tasmania

The Government will provide $3.2 million to contribute to the development of the Warner Creek Dam and the Northern Midlands Water Project in Tasmania.

When completed, the Warner Creek Dam, also known as the Meander River Dam, will provide a reliable irrigation supply to agricultural users of the region, providing opportunities for economic growth and potential benefits through environmental flows. The Federal Government will provide $2.6 million towards construction of the dam, on a matching basis with Tasmania, to meet the shortfall in private investment, subject to a feasibility study into the viability of the dam.

The Commonwealth will provide a further $0.6 million to the Northern Midlands Water Project, on the Macquarie River, which aims to provide a reliable source of irrigation water allowing landholders to diversify and increase productive value of agriculture in the region.

Northern Mallee Pipeline - Stage 7 South

The Government will provide $4 million in 2002-03 to extend the Northern Mallee Pipeline to cover the Patchewollock and Cannie Ridge Districts of the existing pipeline project area in north-western Victoria. The extended pipeline will replace the existing open channel stock and domestic water supply system and aims to provide a more secure stock and domestic water supply to a further 100,000 hectares of farmland. The Commonwealth funding is subject to a matching contribution from the Victorian Government.

Water supply security will allow farm businesses to better plan and manage their operations. The water savings achieved as a result of the pipeline provide regional and community benefits in terms of improved river health, water quality and increased tourism opportunities.

This measure will be funded from within the resources of the Natural Heritage Trust.

Improvement of major infrastructure in the Torres Strait

The Federal Government is providing $15.3 million over three years from 2001-02 for the second stage of the Torres Strait major infrastructure programme with $5.1 million allocated in 2002-03. The programme has already produced substantial and permanent improvements to water supplies, sewerage, roads and other essential services throughout the region and this funding will allow it to be extended to other Torres Strait Islander communities.

Social Bonus initiatives in telecommunications

The Networking the Nation Board is responsible for allocating funding under several initiatives. The Social Bonus initiatives relate to funding from the second tranche of the sale of Telstra. The NTN - General Fund dates from the original T1 sale in 1997. This is a five-year competitive grants programme and funds are to be approved for projects by 2001-02. Funding is being provided for a range of projects which vary widely in scale and scope for activities that address a range of barriers to accessing to telecommunications infrastructure and services. These include IT training, mobile phone towers, satellite phone programme, community networks and strategy development plans. Funding has been allocated to each State and Territory according to the populations residing outside the capital cities.

The Social Bonus initiatives, which are administered by the NTN Board include:

NTN - Local Government Fund

Since 1999-2000 the Local Government Fund is providing around $45 million to support local governments in regional, rural and remote areas using telecommunications to deliver improved services and benefits to their communities. Funding was allocated on a State/Territory basis.

NTN - Remote and Isolated Island Fund

The Remote and Isolated Island Fund has been allocated $20 million from 1999-2000 over five years. The fund is assisting to meet the telecommunications needs of people in remote and isolated island communities, such as the Torres Strait, the Cocos (Keeling) Group, Christmas, Norfolk, King, Flinders, Kangaroo and other islands.

NTN - Building Additional Rural Networks (BARN)

$69.4 million is being provided over five years from 1999-2000 to support the development of new regional networks and new networks services and products, with an emphasis on adopting innovative solutions and leading-edge technologies. BARN is benefiting regional and rural communities by supporting improvements in the cost and quality of telecommunications services in those areas.

Television Black Spots - Alternative Technical Solutions Programme

There will be $3.9 million in funding in 2002-03 to meet the costs of improving television reception for 34 eligible applicant communities in regional Australia that cannot be assisted under the Television Black Spots Programme (TVBSP). This programme is to be called the Television Black Spots - Alternative Technical Solutions Programme (TVBS-ATS) - see the Communications and Information Technology section.

Regional Equalisation Plan

The Government introduced a Regional Equalisation Plan in 2000-01 to assist the rollout of digital television and datacasting services to Australians living in regional and remote Australia. Over 13 years, up to $260 million in financial assistance will be provided to assist commercial television broadcasters with its introduction. An estimated $26 million in assistance has been identified under the plan for 2002-03.

Commonwealth assistance under the plan represents 50 per cent of the estimated capital and operating costs to regional commercial broadcasters in converting to digital. This assistance will be made available predominantly in the form of rebates on annual licence fees paid by the broadcasters. To ensure the timely delivery of digital broadcasting and datacasting services in different parts of regional and rural Australia, these licence fee rebates will be supplemented by a small grants programme for broadcasters in some single-service licence areas.

Defence infrastructure

In 2002-03, the Department of Defence plans to invest $340 million on facilities and bases. An estimated $230 million of the capital investment will be spent in regional areas including the Northern Territory, Townsville, Eden and the south-east Queensland and Hunter (New South Wales) regions.

Industry and science

National Innovation Awareness Strategy

The National Innovation Awareness Strategy ($35 million over five years from 2001-02) will increase science and innovation awareness, and encourage young entrepreneurs across Australia. Questacon's Smart Moves will specifically target science awareness in regional schools for 2002-03.

Geoscience Australia

Geoscience Australia is Australia's national geoscience research and information agency. Geoscience Australia serves the Government and helps the community make appropriate and informed decisions about the use of resources, the management of the environment and the safety and wellbeing of its citizens. Its scientific activities cover three broad areas: onshore, offshore and spatial information.

Onshore activities enhance mineral exploration and environmental land-use planning through the production of geoscientific maps, databases and information systems and conducting regional geological and mineral systems research.

Offshore activities identify potential hydrocarbon areas and new prospective basins in Australia's offshore territories, mapping the outer limits of Australia's jurisdiction under the UN Convention on the Law of the Sea, studies of the marine environment and estuarine health studies.

Spatial information activities provide fundamental spatial data of Australia from national mapping, remote sensing and geodesy. The activity also includes the maintenance of fundamental gravity and seismic networks and the coordination of the implementation of the Commonwealth Policy on Spatial Data and Access and Pricing.

Biotechnology Online Education Resource

The Biotechnology Online Education Resource allows students and teachers, including those in regional areas, to access the latest information on biotechnology and also access resources to assist in teaching this topic. Professional development for teachers for the resource has being trialed throughout 2001-02. The resource will be updated in 2002-03 and professional development activities will continue. Funding for the resource for 2002-03 will be about $100,000.

Gene Technology Information Service

With funding of $100,000 in 2002-03, the Gene Technology Information Service, in partnership with the University of Melbourne, includes a free call 1800 631 276 number that provides balanced and factual information on biotechnology and contact with Commonwealth Government officers and scientists. This service also provides fact sheets, conference exhibition set-up and coordinates speakers on gene technology for various council and community meetings and conferences.

Rural and Regional Communications Programme

The major focus in 2002-03 will be to improve networks between partner agencies. Approximate funding for the programme in 2002-03 is $10,000.

Biotechnology Australia website

The major focus in 2002-03 will be to improve networks and coordination between partner agencies and develop best practice communications activities. Funding for 2002-03 will be $0.9 million. It involves all government agencies involved in rural communications of biotechnology including Agriculture, Forestry and Fisheries Australia, Environment Australia, CSIRO (several divisions), Office of Gene Technology Regulator, National Health and Medical Research Council, State and Territory Governments' agricultural departments, rural R&D corporations, and Cooperative Research Centres. Approximate funding for the programme in 2002-03 is $35,000.

Bureau of Rural Sciences social sciences programme

The Bureau of Rural Sciences, within the Agriculture, Forestry and Fisheries portfolio, provides nationally focused scientific advice to the Federal Government as a foundation for evidence-based policy on agricultural food, fisheries and forestry industries and the natural resources they rely on. At the interface between science and policy, the bureau analyses, assesses and packages science for decision makers.

In 2002-03, the BRS social sciences programme will spend $1.5 million and will revise the Country Matters: Social atlas of rural and regional Australia, based on the 2001 Census data; produce a toolkit for the Murray-Darling Basin Commission on best- practice community engagement with government; and deliver the second phase of Servicing Regional Australia with a methodology that identifies hot spots of communities particularly vulnerable to adverse effects of changes in structural arrangements.

New Industries Development Programme

The New Industries Development Programme is part of the Federal Government's commitment to ensure that innovation continues to drive economic growth and Australia's capacity to commercialise new products and technologies. The programme focuses on commercialisation of new agribusiness products and technologies as well as strengthening commercial links to enhance the prospects for the economic and social revitalisation of regional Australia.

Industry sector-specific initiatives

National Food Industry Strategy

The Federal Government is providing $102.4 million over five years, including $17.5 million for 2002-03 to implement a National Food Industry Strategy. In the face of significant global change in the food industry, the Government and industry have agreed to a strategy to ensure the Australian food industry continues to provide a significant contribution to economic growth, exports, employment and investment with a particular focus on rural and regional areas.

The food processing and horticulture industries make a significant contribution to the economies of rural and regional areas through employment, business and service opportunities. These industries employ more than 225,000 people with more than half of the firms and 40 per cent of the employees located in rural and regional areas. It is often the case that a large manufacturing operation is located in a small town with less than 1,000 people.

The focus of the strategy is to ensure that by 2007, the Australian food industry will be a significant global player with a sustainable and profitable role in the global food product system. The key elements of the five-year, $102.4 million, strategy commencing in July 2002 are:

• the establishment of a high-level industry council, the National Food Industry Council, to oversee the development of the industry and the implementation of the strategy;
• a product and service innovation strategy aimed at enabling superior innovation performance by Australian based firms which will build on research and development activities and infrastructure and establish a Food Innovation Grants Programme;
• a food trade initiative to develop and implement an international food market entry strategy with a focus on market access, trade development and promotion; and
• a strategy to build more competitive supply chains and improve national food safety and quality systems.

In developing the strategy, an extensive programme of regional meetings and forums was held. The strategy will provide significant benefits to rural and regional areas by stimulating new investment and exports, delivering growth and increased employment in the food industry, and by supply chain links back through to agriculture.

Beef Expo 2003

The Federal Government is providing $2.2 million in funding in 2002-03 to go toward the staging and managing of Beef Expo 2003 in Rockhampton. The Expo's objective is to promote and market the achievements of the Australian beef cattle industry to national and international visitors at a world-class, professionally-staged event.

Gracemere Exhibition Centre

Commonwealth funding of $3.5 million is to go toward the design and construction of a new exhibition centre at the Gracemere saleyards near Rockhampton. The funding will provide a state-of-the-art venue for the display and auction of stud cattle. The centre will be pivotal to the success of Beef Expo 2003 and will continue to provide economic benefits to the region during non-expo periods through livestock sales and the staging of cultural events, boosting rural tourism.

FarmBis

FarmBis, part of the Agriculture - Advancing Australia (AAA) package, will receive funding of $31.9 million in 2002-03. FarmBis promotes sustainability and self-reliance through using and developing the business management skills of the farm management team and communicating the benefits of continuous learning. The Federal Government and State Government component assists farmers to attend training activities in business and natural resource management.

Regional Tourism Programme

The Government has committed $14 million to the Regional Tourism Programme over 2001-02 to 2005-06. The funding includes an additional $8 million being provided in this Budget over the four years to 2005-06. The programme aims to improve the capability of organisations, businesses and individuals to deliver quality tourism products and services in regional Australia.

Funding is provided through the Regional Tourism Programme for the development of tourism attractions, facilities and services, including tourism projects that complement other regional industries and build on our natural and cultural heritage. Projects also funded include industry leadership initiatives, those that raise industry standards, and those developing regional niche markets and establishing websites for regional tourism organisations.

See Australia

The domestic tourism initiative, See Australia, is a partnership between the Commonwealth, States and Territories and industry, to encourage stronger growth in domestic tourism, much of which occurs in regional Australia. The Federal Government provided $8 million towards the initiative over the two years to 30 June 2002. State and industry contributions increased the total funds available under the initiative to approximately $17 million. An additional $8 million over the period 2002-03 to 2005-06 ($1.5 million in 2002-03) will continue the work of See Australia. State and Territory governments and industry contributions to the initiative will again be sought.

Holiday Incentive Programme

During the 2001-02 year, the Government provided funds through the Holiday Incentive Programme, to help the tourism industry overcome the effects of the Ansett collapse and the September 2001 terrorist attacks in the USA. The programme formed part of a $20 million assistance package to the tourism industry, announced by the Federal Government in October 2001. A rebate of $150 was offered to people undertaking domestic holidays under certain prescribed conditions. A significant proportion of domestic tourism occurs in regional Australia. The programme provided more than 29,000 households with the rebate, giving a major boost to tourism throughout regional Australia at a time when the industry was experiencing some difficulties.

Shipbuilding Innovation Scheme

The Shipbuilding Innovation Scheme provides assistance to shipbuilders registered under the Bounty (Ships) Act 1989 with funding of $10.8 million in 2002-03. The scheme provides up to 50 per cent of eligible research and development expenditure incurred, up to a total of 2 per cent of eligible costs of construction or modification of bountiable vessels. The eligible research and development activities must be carried on during the period 1 July 1999 to 30 June 2004.

The scheme affects the regional economies of North Queensland, South Australia, Western Australia and Tasmania. These regions benefit from innovative and internationally competitive shipbuilding industry.

Shipbuilding bounty

Assistance from the shipbuilding bounty is an entitlement paid under the Bounty (Ships) Act 1989 as a percentage of eligible construction costs incurred in the construction or modification of a bountiable vessel. The ships bounty ended on 31 December 2000 but phase-out arrangements will continue for three years to cover contracts in place at that date. This is consistent with the Government's commitment to provide transitional support to the Australian shipbuilding industry while international measures are being implemented to phase out subsidies to the industry. The bounty is available for vessels constructed in Australia at a rate of 3 per cent of eligible costs incurred in the construction or modification of a bountiable vessel. The Federal Government is providing $11 million in the 2002-03 financial year and $3 million in 2003-04.

The shipbuilding industry is concentrated in regional Western Australia, northern Queensland and Tasmania.

Post-2000 Textiles, Clothing and Footwear Assistance Package

This 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 in preparation for the more internationally competitive trade environment after 2005.

The most significant component is the TCF Strategic Investment Programme, with funding of $678 million over five years from 2000-01, including $130.4 million in 2002-03. The programme promotes an increase in investment by the TCF industries in capital plant and equipment; research and development, including innovative product development; and assistance for regional reconfiguration.

Automotive Competitiveness and Investment Scheme

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 provides approximately $2.8 billion in benefits over five years, covering production and investment by vehicle producers and investment by component producers and other participants in the industry. The automotive industry in Australia is predominantly located in Victoria, South Australia and New South Wales, with many firms in regional areas. ACIS will assist these firms to become more internationally competitive in an increasingly liberalised trade environment.

Fostering business

Reduction in Australian Quarantine Inspection Service export programme fees and charges

The Government reduced Australian Quarantine and Inspection Service export fees and charges by 40 per cent from 1 November 2001. The fee reduction involved an additional Government contribution to AQIS' operations of $29.8 million per annum.

The reduction in export fees and charges aims to increase the competitiveness of Australia's exporters and to benefit commodity industries through lower charges.

New Exporter Programme

The Government has committed itself to doubling the number of exporters by 2006. Exporters are more profitable, innovative and better employers than non exporters, and with more than 184,000 businesses in rural and regional areas, achieving the Government's goal of doubling the number of exporters could make an enormous economic contribution to regional Australia.

Austrade will take a leading role in achieving this goal, through the New Exporter Programme which will reach out to a diverse range of businesses at various stages of development. Austrade will assist companies to maximise their export capability.

TradeStart

The Government's successful TradeStart programme ensures small and medium companies in regional Australia get the support they need to succeed in international markets. The Government will commit $21.5 million over four years to extend and expand the TradeStart export assistance network.

Tradestart operates as a partnership between the Government's trade agency Austrade and local partners - including chambers of commerce, private sector organisations, and State and Territory Governments. By leveraging Austrade's knowledge of international markets with its partners' local expertise, TradeStart has proven a cost-effective and highly efficient way of helping companies into export.

Subject to negotiations with local partners, the new offices will be in Dubbo, Penrith, Sutherland (NSW), Emerald (Qld), Bunbury (WA), Geelong, Mildura (Vic.), Port Lincoln (SA) and the Adelaide-based Australian Wine Export Council, plus one other location.

The 10 new offices are in addition to the 24 TradeStart offices opened since 1996: Coffs Harbour, Wagga Wagga, Bathurst, Nowra, Tamworth, Gosford, Rockhampton, Cairns, Bundaberg, Toowoomba, Southport, Ballarat, Wangaratta, Bendigo, Berri, Mt Gambier, Whyalla, Geraldton, Carnarvon, Kununurra, Albany, Darwin, Alice Springs and Launceston.

As many regional and rural communities depend on small business for the strength of their economies, a greater export focus will bring real benefits to the regions. Regional exporters account for more than half of Australia's exports and in regional Australia, one in four jobs depends directly on exports.

Regional Business Development Analysis

The Federal Government is undertaking a Regional Business Development Analysis to identify impediments to growth and the effectiveness of current Commonwealth Government assistance for regional businesses. The research and analysis will draw on the expertise of business, communities and governments and will develop options for achieving sustainable regional industries, businesses and jobs, and removing growth impediments.

The work will also examine the issues of encouraging new industries to regions; attracting and retaining skilled people, executives and professionals; attracting investment; improving access to finance for small and medium enterprises; and accelerating new business and investment proposals.

Small Business Assistance Programme

The Government is committed to introducing a new Small Business Assistance Programme, which will provide benefits for all small businesses including those in rural and regional Australia. The programme will provide resources for:

• the development of small business incubators;
• the promotion of an enterprise culture in the small business sector;
• referral and support services for small business on relevant government programmes and initiatives; and
• other activities that promote small business development.

A new Small Business Assistance Programme (SBAP) will be introduced to combine the Small Business Enterprise Culture Programme (SBECP) and small business incubator initiatives with funding of $9 million in 2002-03. The SBAP will also expand referral and support services for small business.

The SBAP will provide funding for the development of small business incubators and the promotion of an enterprise culture in the small business sector, as well as other activities that promote small business development. Under the SBECP, priority was given to projects in regional areas and approximately 67 per cent of projects funded under the SBECP have been in regional areas. Approximately 60 per cent of funding for small business incubators was allocated in regional areas. Referral and support services for small business are also an important initiative for regional areas providing information on relevant government programmes and activities. These services provide a link between government departments and agencies at all levels, as well as links with local media, peak bodies, associations, advisers and experts in their region.

Extension of the Diesel Fuel Rebate Scheme to retail and hospitality businesses

This measure extends eligibility for the Diesel Fuel Rebate Scheme to retail and hospitality businesses, where there is no access to commercial supplies of electricity, and the electricity generated is for their own use. It is effective from 1 July 2002 and was announced by the Government on 30 October 2001.

It is expected that this measure will reduce the costs of these businesses in regional and remote areas. To reduce administrative complexity associated with confining the rebate to small retail/hospitality businesses, the extended scheme will include all such businesses with funding of $12.8 million for 2002-03.

Giving cooperatives the option to frank dividend payments

On 27 August 2001, the Government announced that cooperatives would be provided with an option to frank dividend payments to members as an alternative to having these payments treated as deductions from assessable income, effective from 1 July 2002. Cooperatives that do not choose to frank dividends will continue to be able to treat dividend and rebate payments as deductions from the cooperative's assessable income.

With funding of $5 million in 2002-03, this amendment will benefit those rural and regional Australians who are shareholders of cooperatives with franking credits. Cooperatives generally have franking credits where they have elected to retain profits to expand the cooperative's business.

Bass Strait Passenger Vehicle Equalisation Scheme

The Federal Government will spend $26.6 million in 2002-03 on the Bass Strait Passenger Vehicle Equalisation Scheme, an increase of $9.1 million, or 52 per cent from 2001-02 levels.

From 1 September 2002, the Government will:

• replace the existing seasonal rebate with a rebate of $150 each way. The rebate will apply all year round;
• increase the rebate for motorhomes and vehicles towing a caravan to $300 each way. At present, motorhomes and vehicles with caravans only receive the same rebate as a car. This initiative doubles the rebate for motorhomes and vehicles with caravans during the high season and triples their rebate during the low season; and
• enable eligible drivers with a disability who are unable to travel by sea to access the reduced passenger vehicle fare available under the scheme by shipping their vehicle and flying across Bass Strait.

The scheme has been an enormous success since its introduction in 1996. The number of passenger vehicles shipped across Bass Strait has more than doubled, from 63,000 vehicles in 1995-96 to more than 127,000 vehicles in 2000-01.

Tasmanian Freight Equalisation Scheme

The Federal Government will spend $71 million in 2002-03 helping Tasmanian industries ship products across Bass Strait. The funding, provided under the Tasmanian Freight Equalisation Scheme, will help Tasmanian firms compete in mainland markets by reducing their cost disadvantage. The scheme recognises that Tasmanian industries do not have the option of transporting goods to mainland Australia by road or rail.

About 1,450 shippers, ranging from small businesses to large companies, benefit from the scheme.

The scheme covers northbound shipments of eligible goods produced in Tasmania for use or sale on the mainland, and southbound shipments of equipment and raw materials of Australian origin used as inputs to the Tasmanian mining, manufacturing, agricultural, fishing and forestry industries.

The Government's funding for both schemes is demand driven and the total cost is uncapped.

Business Entry Point

The Business Entry Point (BEP) is developed and coordinated by the Department of Industry, Tourism and Resources. BEP is the Federal Government portal for the business community. It provides free online government services and information for Australian businesses, 24 hours a day, seven days a week. It is particularly convenient for business in regional Australia as it can save the necessity of travelling or reliance on postal services for obtaining and lodging information. This includes information on business start-up, available assistance, taxation, licensing and legislation. Transactions such as taxation compliance and licence applications can also be accessed through the BEP website. The site is continuously refined and progressively offers more online transactions in response to Australian business needs.

BEP's information is drawn from all levels of government. All State and Territory Governments actively support and participate in the BEP initiative.

Building capacity

Prime Minister's Community Business Partnership

The Government will continue the Prime Minister's Community Business Partnership for an additional three years from 2002-03. The partnership will contribute to a culture of corporate and individual social responsibility by providing leadership and support to business. Partnerships between business and communities will be encouraged across the whole of Australia to strengthen community cohesion and support innovative approaches to social issues.

AAA-Farm Management Deposits Scheme

The objective of the AAA-Farm Management Deposits Scheme is to encourage eligible primary producers to become financially self reliant by improving their financial risk and cash flow management practices. The scheme, which commenced operating in April 1999, provides a tax-linked financial risk management option to eligible primary producers to help deal with uneven income streams resulting from fluctuations in market and climatic conditions. The scheme allows taxable primary production income from profitable years to be set aside to improve cash flow management during more difficult years. It complements other risk management strategies available to primary producers such as developing fodder and water reserves, financial planning and diversifying the production system. As at 31 December 2001, more than 23,000 primary producers had more than $1 billion invested in the scheme.

Regional Solutions Programme

The Regional Solutions Programme is an innovative Commonwealth Government initiative helping regional, rural and remote communities find local solutions to local challenges. Some $22.6 million has been allocated to the programme for 2002-03.

Regional Solutions is based on flexibility and the belief that the `one size fits all' approach is not the answer for community capacity building in regional Australia. The programme provides grants to communities to plan and put into action development projects that will lead to stronger local economies and improved access to services.

Projects funded under the Regional Solutions Programme are run by the community for the community. The programme works with rural and regional communities that want to undertake projects to respond to economic challenges in their local community or region, or to build on their underlying strengths.

Grants of between $1,000 and $500,000 are available to not-for-profit community organisations or local governments (or local government agencies) based (or with a significant presence) in regional, rural or remote areas for:

• community planning;
• local project implementation;
• community adjustment initiatives;
• local industry development;
• resource people to work for a community or region; or
• regionally-based and community-oriented enterprise or infrastructure projects.

Backing Australia's Sporting Ability

In April 2001, the Government launched its new plan for sport, Backing Australia's Sporting Ability - a More Active Australia. The plan has four major policy objectives, one of which is to increase grassroots participation for sport at all ages. This will result in more sport being played, particularly by school children, in rural areas where sporting groups are often a vital factor in the cohesion of local communities.

To achieve these goals, the Government has budgeted record levels of financial support for the period 2001 to 2005, with an additional $38.8 million allocated in 2002-03 for increasing grassroots participation. The Australian Sports Commission, as the Government's peak sports body, has primary responsibility for meeting these objectives.

Promoting self reliance for Indigenous people

Employment outcomes and service delivery for Indigenous Australians will be improved through Indigenous-specific elements of the Australians Working Together Package announced in the 2001-02 Budget. These measures are:

• developing Community Participation Agreements negotiated between ATSIC and remote Indigenous communities;
• finding more jobs for Indigenous people by contracting certain Community Development Employment Project organisations to take the role of Indigenous Employment Centres;
• assisting Indigenous students to stay at school or undertake vocational training; and
• improving access to Centrelink services for remote Indigenous communities.

Some $15.1 million has been allocated for these measures in 2002-03.

Indigenous Communities/Mining Industry Regional Partnerships Programme

Beginning in 2001-02, $1.2 million over four years is being provided to promote mutually beneficial partnerships between the mining industry and Indigenous communities, and to encourage them to build on recent achievements in providing training, employment and business opportunities in remote areas.

Regional Women's Unit

The Federal Government has a Regional Women's Unit which aims to address the needs of regional, rural and remote communities, ensuring that women's perspectives are taken into account in the development of policies and programmes affecting regional Australia.

The unit also provides the secretariat for the Regional Women's Advisory Council, appointed by the Government to advise on key issues facing regional Australia and to ensure that the Government is aware of the views, aspirations and needs of regional and rural women.

The Regional Women's Advisory Council is now focusing on how existing Commonwealth Government programmes, such as the Stronger Families and Communities Strategy, can be used more effectively to address pressing social issues facing regional communities. The Council will report to the Government in August 2002.

National Rural Women's Secretariat

The new National Rural Women's Secretariat, being established through the Office of the Status of Women, will provide the opportunity for rural women's organisations to work collaboratively to provide broad and representative advice on women's issues and circumstances to government. Being established under a coalition model, the new Secretariat will be a conduit for information exchange between government and the rural women's sector.

Promoting investment

Revamped Invest Australia

In December 2000 the Government decided to review the Commonwealth's inwards investment promotion and attraction efforts. Dr Ian Blackburne was appointed to conduct the review and presented his report to the Prime Minister in August 2001. In response, the Government decided that investment promotion and attraction will in the future be delivered through a revamped Invest Australia, which will become an autonomous agency within the Industry, Tourism and Resources portfolio. The new Invest Australia will also incorporate the investment promotion and attraction activities of other Commonwealth agencies. $11 million has been allocated to the revamped Invest Australia for 2002-03.

The new arrangements will more actively involve the States and Territories. To formalise the increasingly close Commonwealth-State/Territory relationship, the Government intends to create a new National Investment Advisory Board. In addition, an immediate priority of the revamped Invest Australia will be to develop a whole-of-nation strategy for promoting and attracting foreign direct investment into Australia, and ensure that it is implemented effectively and efficiently. Developing the strategy will be done in partnership with the States and Territories.

The following projects are part of Invest Australia's programme.

Major Projects Facilitation

From July 2001 to April 2002 seven projects in regional areas were granted Major Project Facilitation (MPF) status. If all projects proceed as planned, they will generate additional capital expenditure of $6.3 billion and some 960 full time jobs. A further project previously granted MPF status successfully completed the approvals processes necessary to proceed. If this project proceeds as planned, it will generate $430 million in investment and create 80 full-time direct jobs.

Upon granting of MPF status by the Minister for Industry, Tourism and Resources, Invest Australia provides the proponent of a major project with information, advice and support to achieve prompt decisions on necessary government approvals. It also identifies the sequence and timings for the key approvals and the relevant government programmes that may assist the project.

Feasibility Study Fund

Invest Australia administers the Feasibility Study Fund, which is designed to attract prospective investors to establish or expand business operations in Australia through new innovative projects. As at April 2002, there are two active studies in progress in regional Australia, with the potential to generate $158 million in investment and 170 new permanent jobs. In addition, four studies were completed between July 2001 and April 2002 for projects in regional Australia. Three of these projects are seeking investment and have the potential to generate more than $98 million in investment and 125 new permanent jobs.

Investment Guide for Regional Australia (Inside Intelligence)

Invest Australia has prepared a guide, Inside Intelligence: Building An Investors' Guide, an innovative business tool designed especially to empower rural, remote and regional towns and areas to seek out and reach their potential. Using a step-by-step approach to identify investment opportunities and strengths, the guide recognises and builds on the knowledge that already exists within a community. The guide delivers a practical, low-cost process that regional communities can conduct with the assistance of existing resources and volunteers.

Strategic Investment Coordination

The Government acknowledges that in some circumstances there may be a need for specific incentives to be provided to secure strategic investments for Australia. The underlying rationale of the Strategic Investment Coordination process is to attract to Australia projects with significant net economic and employment benefits that would have otherwise located offshore. Proposals for incentives need to address in detail the Strategic Investment Coordination criteria.

Export Market Development Grant extension

The Government will commit $1.6 million over four years to double the minimum grant under the Export Market Development Grant scheme, which provides assistance to small and medium Australian-based companies trying to break into export markets. The minimum grant will be increased from $2,500 to $5,000.

Supplier Access to Major Projects Programme

The Supplier Access to Major Projects (SAMP) Programme gives effect to the Government's commitment to the Australian Industry Participation Framework signed by Commonwealth, State and Territory Industry Ministers in April 2001. Funding for the programme was extended by another year with funding of $3.1 million for 2002-03 provided in the Budget.

The SAMP Programme provides funding for technical specialists to work with the developers of major projects to identify and negotiate opportunities for Australian industry to participate in those projects. Since its commencement in 1997-98, the SAMP Programme has facilitated increased Australian industry participation in 49 major projects in which Australian industry has secured contracts worth $678 million that might otherwise have gone to overseas suppliers.

Action agendas

The Department of Industry, Tourism and Resources has policy responsibility for the development and implementation of action agendas. Action agendas provide a framework for industry and the Government to take a partnered approach to addressing impediments to industry growth and maximising opportunities for development.

Action agendas provide the opportunity to develop a coordinated approach that facilitates the upgrading of physical infrastructure and review planning and approval processes across State and local governments.

Enhanced Project By-Laws Scheme

The Enhanced Project By-laws Scheme (EPBS) is an industry development tool that aims to lower costs for investment, encourage the adoption of innovative technology, assist industry to be more competitive and facilitate Australian industry participation in domestic and global supply chains. Project proponents importing capital equipment not made in Australia, or where the imported version is technologically superior, may be granted duty concessions under the scheme.

To be eligible for the EPBS, a project must have expenditure on eligible goods of $10 million or more. The EPBS, which takes effect from 1 July 2002, applies to projects within the mining, resource processing, agriculture, food processing and packaging, manufacturing and gas supply sectors. The scheme is estimated to cost $46 million in its first year.

While the EPBS is not exclusively targeted at regional areas, some regions which have significant manufacturing, resource processing and gas supply industries, will benefit from an increase in capital investment. Mining and agriculture sectors would also benefit from the broader definition of goods eligible for duty free entry.

AusIndustry

AusIndustry is the Federal Government's business unit within the Department of Industry, Tourism and Resources. AusIndustry has been established to help Australian businesses become more innovative and internationally competitive. Many of the programmes delivered by AusIndustry are specifically designed to encourage innovation as a key growth strategy.

AusIndustry is committed to providing excellent, cost-effective and user friendly services. Through its State, Territory and 14 regional offices which commenced operations in December 2001, AusIndustry delivers around 30 programmes with a total value of about $2 billion to some 8,000 customers annually.

Australia's non-self-governing territories

Indian Ocean Territories funding for Government services and infrastructure

The isolated communities of Christmas Island and the Cocos (Keeling) Islands are wholly dependent on the Federal Government for funding of Government services. This includes services normally provided by State and local governments, such as education, health and housing.

In response to the recommendations of the Commonwealth Grants Commission Report on Indian Ocean Territories 1999, the Government has committed about $52 million recurrent funding for 2002-03 to ensure that service delivery standards are, so far as practicable, the same as those of comparable communities on the mainland.

The Government has also committed capital funding of $15.7 million in 2002-03 to upgrade infrastructure requirements for the delivery of mainland-equivalent services. This will help foster the social and economic capacity of these communities as well as facilitating and maintaining their links with the rest of Australia and the wider world economy.

New freight and passenger facilities at Rumah Baru on West Island, Cocos (Keeling) Islands

A new all-weather freight and passenger facility will be built at Rumah Baru to replace the existing jetty, improving the safety, efficiency and reliability of freight and passenger transfers on the Cocos (Keeling) Islands. Work on the new facilities will start in 2002-03 and is expected to take two years to complete.

Service delivery to the Jervis Bay Territory

The Federal Government provides most of the State and local government-type services to Jervis Bay Territory at a standard comparable with that of the adjoining Shoalhaven region of New South Wales. An annual expenditure in the order of $4.4 million, with net outlays of $3.5 million, ensures service delivery through arrangements primarily with the Australian Capital Territory, Shoalhaven City Council and the Wreck Bay Aboriginal Community Council.

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