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2003-04 Budget

> Home > Budget Paper No. 2

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Transport and Regional Services

Airservices Australia - extension of the Location Specific Pricing Subsidy

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 7.0 - - -

The Government will provide funding of $7 million in 2003-04 to continue the Location Specific Pricing Subsidy for Airservices Australia to provide air traffic control services at some regional and general aviation airports. The purpose of the subsidy is to limit the effect of location specific pricing on smaller airports with limited ability to meet the real costs of air traffic control services due to less traffic. Fourteen airports currently benefit from this subsidy. Continuation of the subsidy enables affordable air traffic control services to continue to be provided at these airports.

This subsidy will continue to be funded by the excise and customs duty on aviation gasoline and aviation turbine fuels.

See also the related revenue measure titled Aviation fuel excise - extension of excise collection for the Location Specific Pricing Subsidy and related expense measure titled Australian Competition and Consumer Commission - cessation of cost recovery for airport regulation in the Treasury portfolio.

Auslink development and national transport regulation

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 3.8 2.5 2.6 2.6

The Government will provide $11.5 million over four years to support the National Transport Commission and the National Transport Advisory Council, and to continue work on the integrated land transport planning framework, AusLink.

Australian Capital Territory sawmills

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services - - - -

The Government is to provide a one-off payment of $1 million in 2002-03 to the ACT Government to assist the ACT softwood sawmills to upgrade equipment to enable the use of alternatively sourced logs for processing. This will assist in maintaining timber processing operations after the loss of the primary source of logs in the Canberra bushfires in January 2003.

Australian Transport Safety Bureau - new safety functions

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 3.2 3.3 3.3 3.4

The Government will provide funding of $13.2 million over four years for the Australian Transport Safety Bureau to undertake the new role of interstate rail safety investigation, to establish a confidential marine safety occurrence reporting system, and to undertake aviation research and data analysis in accordance with Australia's obligations under International Civil Aviation Organisation requirements.

These initiatives will contribute to maintaining and improving Australia's transport safety.

See also the related capital measure titled Australian Transport Safety Bureau - new safety functions in the Transport and Regional Services portfolio.

Bushfire - aerial firefighting assistance

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 5.5 - - -

The Government provided $5.5 million in the additional estimates for 2002-03 to assist State and Territory governments with their aerial firefighting efforts. This funding met up to half the transportation and leasing costs for the three Erickson Aircrane helitankers to be used nationally.

The Government subsequently provided an additional $2.65 million in 2002-03. Funding of $2.1 million was provided to Victoria to meet up to half the transportation and leasing costs for two more Erickson Aircrane helitankers to be used nationally. Operating costs of the helitankers were met by the states. Funding of $0.3 million and $0.25 million was provided to Western Australia and South Australia respectively, recognising that the use of fixed wing aircraft is required in these states due to the large distances that need to be covered.

The Government will provide up to $5.5 million to assist States and Territories to meet their aerial firefighting needs for the 2003-04 fire season. Consistent with current natural disaster management responsibilities, State and Territory governments will be responsible for meeting the remaining costs.

Future funding levels will be determined following continuing negotiations with State and Territory governments and with regard to the outcome of the National Inquiry into Bushfire Prevention and Mitigation.

Bushfire Appeals - contributions to New South Wales, Victoria and the Australian Capital Territory

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services - - - -

In 2002-03, the Government contributed $1 million to the 2002 NSW Bushfire Appeal, $1 million to the Victorian Bushfire Appeal and $0.5 million to the Canberra Bushfire Recovery Appeal. These appeals were established by the respective State and Territory governments to assist those affected by the severe 2002-03 bushfires.

Civil Aviation Safety Authority - supplementary funding to cover the shortfall in aviation fuel excise revenue

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Civil Aviation Safety Authority 6.5 - - -

The Government will provide additional funding of $6.5 million in 2003-04 to the Civil Aviation Safety Authority (CASA) to supplement a shortfall in its revenue from aviation fuel excise following changes in the aviation industry which have resulted in lower fuel consumption.

This measure will enable CASA to maintain its regulation of the safety of civil air operations in Australia and the operation of Australian aircraft overseas at existing levels.

See also the related revenue measure titled Aviation fuel excise - excise increase to provide supplementary funding for the Civil Aviation Safety Authority in the Treasury portfolio.

Disaster Mitigation Australia Package

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 6.2 13.2 6.9 6.7

The Government will provide funding of $68.5 million over five years including $16.3 million in 2007-08 to establish a new Disaster Mitigation Australia Package. This funding will be used to support cost-effective mitigation policies and reduce the economic and social costs of natural disasters to individuals, communities and governments, especially in rural and regional Australia.

The package will include the establishment of a Disaster Mitigation Programme to support cost-effective mitigation activity based on nationally consistent data, research and disaster risk assessments. The package will also include the continuation of the Regional Flood Mitigation Programme in 2005-06 and 2006-07, for which $19.2 million has already been included in the forward estimates.

The provision of Commonwealth funding to the package will be conditional on matching funding from States and Territories and the introduction of more effective statutory land use planning, development and building controls by other governments.

Melbourne Airport - additional quarantine infrastructure

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 7.7 - - -
Department of Agriculture, Fisheries and Forestry -3.9 - - -
Australian Customs Service -3.9 - - -

The Government will re-allocate funding of $7.7 million in 2003-04 ($3.9 million from each of the Australian Customs Service and Department of Agriculture, Fisheries and Forestry - which incorporates the Australian Quarantine Inspection Service) to undertake infrastructure works at Melbourne Airport to facilitate increased quarantine intervention. This is part of the Government's $600 million package, announced in the 2001-02 Budget, in response to foot and mouth disease and other quarantine risks. This funding will complete the programme of works at international gateway airports.

National Airspace Reforms - supplementary funding

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 2.1 - - -

The Government will provide additional funding of $2.1 million in 2003-04 to implement the National Airspace System. This system was adopted in 2002 as the Government's preferred model of airspace management, based on the US airspace system and consistent with International Civil Aviation Organisation airspace classifications.

National Highway and Roads of National Importance Programme - additional funding

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services - - 25.0 -

The Government will provide increased funding of $25 million in 2005-06 to the National Highway and Roads of National Importance Programme. The additional funding will improve road access, road safety and road transport efficiency for regional communities.

Regional office network

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 0.9 0.9 0.9 1.0

The Government will provide additional funding of $3.8 million over four years to assist the Department of Transport and Regional Services to maintain its network of regional offices.

See also the related capital measure titled Regional office network in the Transport and Regional Services portfolio.

Regional Partnerships

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services - - - -

From 1 July 2003, the Government will incorporate a range of its regional programmes into a new integrated programme to be called Regional Partnerships. The new programme will support initiatives in Australia's regions in four key areas: strengthening growth and opportunities; improving access to services; supporting planning; and assisting structural adjustments for communities. On top of existing allocations, funding will be boosted by $61.8 million over three years from 2004-05 to 2006-07. Provision for this funding has already been included in the forward estimates.

Sydney Airport Noise Amelioration Programme

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 9.9 6.3 0.6 0.1

The Government will provide additional funding of $17 million over four years for the Sydney Airport Noise Amelioration Programme. This funding will allow completion of noise insulation on remaining residences and public buildings, and seismic upgrading work on blocks of units.

See also the related revenue measure titled Sydney Airport Noise Levy - extension in the Transport and Regional Services portfolio.

Weipa electricity generation compensation package

Expense ($m)
  2003-04 2004-05 2005-06 2006-07
Department of Transport and Regional Services 2.2 2.2 2.2 2.2

The Government will provide funding of $8.8 million over four years to the Weipa community to compensate it for the loss of access to the Diesel Fuel Rebate for electricity generation that was available to the previous electricity provider, Comalco Limited, following transfer of responsibility to a new local government.


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