Chapter 1: Whole-of-Government Environment Expenditure and New Measures
Whole-of-Government Environment Expenditure
The Howard Government believes that effective environmental policies require a whole-of-government approach and the active involvement of all sectors of the community. These efforts are creating a stronger, more strategic response to the challenge of environmental sustainability than ever before.
Achieving the Government's environmental goals requires resources, backed by a concerted and coordinated approach across the Commonwealth. The Department of Environment and Heritage and the Department of Agriculture, Fisheries and Forestry-Australia are at the forefront of delivering the Howard Government's environment and sustainability policies.
These efforts are supported by many other Commonwealth portfolios, including significant expenditure by the Departments of Education, Science and Training; Industry, Tourism and Resources; Transport and Regional Services; Defence; Foreign Affairs and Trade; Family and Community Services; and the Treasury and Attorney General's portfolios. This whole-of-government approach taken by the Howard Government has lifted environmental spending to new benchmarks - see Chart 1.1 and Table 1.1.
Chart 1.1: Whole-of-Government environment-related estimated expenditure
Note: see cautions in Changes in Reporting above in relation to precise inter-year comparison of expenditure.
The Commonwealth's environmental spending supports a broad range of initiatives including on-ground environmental protection and repair, research and development, collation and provision of data, taxation concessions and incentives, and overseas development assistance.
The Howard Government leads by example. By implementing environmentally responsible actions, this Government is working hard to continually improve the environmental performance of Government operations. Best practice environmental management approaches extend to the management of Commonwealth land and water, including the more than three million hectares of Defence lands.
Chart 1.2: Major portfolio contributions to environment expenditure, 2003-04 (see Table 1.1)
In 2001, the Prime Minister established the Sustainable Environment Committee of Cabinet to provide increased opportunities for whole-of-government consideration of environmental sustainability issues. This valuable initiative is complemented by the work of the Ministerial Oversight Committee on Energy, which oversees the development of Australia's long-term energy policy.
Commonwealth environment and natural resource management agencies are at the forefront of cooperative approaches across agencies and Ministers. Two key agencies, the Australian Greenhouse Office and National Oceans Office, report to more than one portfolio Minister, which helps to ensure that their work encompasses interests and actions across the sustainability agenda.
The Government's flagship natural resource management programmes - the Natural Heritage Trust and the National Action Plan for Salinity and Water Quality - are delivered jointly by Environment Australia and Agriculture, Fisheries and Forestry -Australia - see Table 1.1. This reflects the Howard Government's view that environmental protection, sustainable agricultural production and natural resource management will be most effectively addressed when seen as complementary, rather than as conflicting goals. Chart 1.3 illustrates the significant contribution made by these two portfolios and the overall growth in their total environment expenditure since 1996 to record levels in 2003-04.
Table 1.1: Major Portfolio contributions to environmental expenditure 2002-03 to 2006-07(1)
(1) Care needs to be exercised when comparing estimates for 2002-03 and estimates for forward years and when making comparisons between this edition and previous editions of the Environment Budget Statement. From 1 July 2003 the Government will discontinue the Capital Use Charge (CUC). The Commonwealth introduced, as part of the accrual budgeting reforms in 1999-2000, a CUC. The CUC was paid annually by general government sector agencies on their net assets. The CUC is an internal government transaction and therefore, does not affect the budget balances as the payment is offset by a departmental appropriation.
The discontinuation of the CUC has the overall impact of lowering estimates of expenditure for programmes in 2003-04 and beyond. It does not have any impact on actual programme funding, as it is an accounting adjustment. In the 2002-03 Budget, the estimated total CUC and dividends for all agencies was $6.5 billion. This is equivalent to 3.8 per cent of the total estimates of the Commonwealth general government expenditure of $170.2 billion. Using this proportional percentage, as a rough guide, the CUC portion of the 2002-03 environmental expenditure would be around $54 million. This is likely to be an understatement as the provision of environmental services frequently requires a higher proportion of capital stock (eg in National Parks, to support Antarctic research, and to conduct surveillance of illegal fishing) than general government services. For example, the environment elements of the environment portfolio alone have a CUC of over $46 million for 2002-03.
There has also been a significant change in the way in which direct and indirect environmental expenditures are accounted for under Australia's foreign aid programmes, which means that it is not appropriate directly to compare estimates published for 2002-03 and previous years with those for 2003-04 and beyond.
- Estimates for 2002-03 and previous years are not directly comparable with 2003-04 as these estimates were derived using a revised and more rigorous methodology. In 2003-04, the Government will provide an estimated $95 million for activities that directly address environment problems in developing countries together with an additional $225 million of indirect expenditure. These figures now incorporate aspects of expenditure related to water supply, fisheries and agriculture not identified as environmental outlays in previous years.
- Forward estimates for some agencies are not readily available at this stage - this has resulted in a decline in outyear estimates.
- This estimate comprises funding for the output within Customs that provides environmental services as part of the activities associated with civil maritime surveillance.
Chart 1.3: Agriculture Fisheries and Forestry - Australia and Environment and Heritage portfolios, environment funding, 1995-96 to 2004-05
New measures
This table describes new Budget measures and outlines actual resourcing applied to each measure. The Government's total environment-related expenditure in these activities exceeds the amount shown in the table below.
Table 1.2: Howard Government environment-related
new measures,
2003-04 to 2006-07
- This contributes to the maintenance of the climate record which is essential to monitoring and modelling long term climate change. Accurate weather forecasting is also fundamental to the ability of the Bureau of Meteorology to model pollution and related hazard events.
Distinctively Australian
The Howard Government will invest an additional $13.3 million over the next four years in a new heritage initiative, Distinctively Australian, a new approach to the identification, management and promotion of our national heritage.
Funding for the initiative is conditional on the passage by Parliament of the new legislation. Existing funding for the Australian Heritage Commission of $39.3 million will also be available to support this initiative on the passage of the new legislation.
Distinctively Australian is based upon the Government's new heritage legislation that is currently before Parliament. It will establish the National Heritage List, comprising the places of Australia's greatest national significance. The funding provided through Distinctively Australian will protect our nationally significant heritage places and more deeply engage all Australians in experiencing our nationally significant heritage places, stories, anniversaries and people.
The initiative will provide a stronger sense for all Australians of what it means to be Australian and a stronger sense of shared values with fellow Australians. The listing of places on the National Heritage List will also provide increased heritage tourism and employment in surrounding regions, leading to regional social and economic benefits.
Sydney Harbour Federation Trust - returning foreshores to the people
The Government will rehabilitate and return historic Sydney harbour sites - some of Australia's most beautiful and significant foreshore lands - to the people of Australia by 2012.
A net investment of $115.5 million over eight years will be used to decontaminate and rehabilitate foreshore lands, conserve buildings and infrastructure, and return these lands to the community as national heritage assets.
The sites include defence land at Middle Head-Georges Heights, the former Army Maritime School at Chowder Bay, Woolwich Dock, Cockatoo Island, the former Marine Biological Research Station at Watsons Bay, the former Artillery School at North Head, the Macquarie Lightstation at Vaucluse and Snapper Island.
Great Barrier Reef coastal wetland protection programme
A new $16 million ($8 million from the Commonwealth over five years is provided in this Budget, and the Queensland Government has been invited to match this investment) Great Barrier Reef coastal wetland protection programme will protect and restore the wetlands in catchments adjacent to the reef lagoon. The Government is committed to improving the water quality of the Great Barrier Reef and in turn protecting the biodiversity, tourism and fishing values of the planet's largest World Heritage Area. The wetlands adjacent to the Great Barrier Reef play an important role in filtering the water entering the reef lagoon so that it is free of harmful sediments.
Additional funding of $15 million from the Natural Heritage Trust will provide even greater protection for Queensland wetlands including these important coastal wetlands along the Great Barrier Reef.
National Oceans Office - leading oceans management
Australia is a world leader in the sustainable management of its oceans with the world's first nationally coordinated policy for its marine area of 16 million square kilometres - almost twice the size of its mainland. More than 80 per cent of the area's species are unique to the region, and marine industries generate more than $30 billion annually.
An additional $18.2 million over two years has been committed to the Commonwealth National Oceans Policy. The funding will be used to finalise and implement the first regional marine plan for the two million square kilometres of ocean that comprise the South-east Marine Region. It will also support the development of a northern regional marine plan in the Torres Strait. These two marine plans and the Government's commitment to investigate new frameworks for regulation will reduce conflict between demands for ocean resources, and increase certainty for industry, conservation and the community in using and protecting the marine environment.
Surveillance and protection in the Southern Ocean
Illegal fishing in Australia's Fishing Zone at Heard and McDonald Islands is threatening the sustainability of the fisheries in the area, particularly the sought after Patagonian Toothfish.
In 2003-04 the Government will provide $12 million to enhance Australia's patrol capability in the Southern Ocean. The Government's recent decision to increase surveillance and enforcement in Australia's Fishing Zone at Heard and McDonald Islands will assist in ensuring the long-term sustainability of Patagonian Toothfish stocks and dependent and associated species.
World class weather forecasting
The brutal drought and bushfires of 2002-03 highlighted the importance of accurate and timely weather monitoring and forecasting.
The Government will continue to support Australia's world-class weather forecasting services. Funding of $31.2 million over four years will ensure greater public access to the Bureau of Meteorology's databases. This funding will also enhance rural and marine services and upgrade the national weather observing network for drought monitoring, water resources assessments, El Niño predictions, and seasonal climate outlooks. This contributes to the maintenance of the climate record which is essential to monitoring and modelling long term climate change. Accurate weather forecasting is also fundamental to the ability of the Bureau of Meteorology to model pollution and related hazard events.
Shipping support for Australia's Antarctic programme
It is vital to Australia's economic, security and environmental interests that we continue to maintain a strong presence in Australia's Antarctic territory.
The Government will continue to support Australia's territorial and scientific interests in the Antarctic. Funding of $69.6 million over four years will enable the RSV Aurora Australis to deliver supplies to Australia's stations in the Antarctic and it will support scientific programmes in the Southern Ocean, the Antarctic continent and the sub-Antarctic islands.
Confidential marine incident reporting system
The Government has committed $0.7 million to establish a confidential reporting system to report marine safety incidents. The system will support the operations of the Australian Transport Bureau, which investigates incidents such as the 1999 Laura D'Amato oil spill in Sydney Harbour.
The reporting system will enhance marine safety and environmental protection.
Australian Biological Resources Study (ABRS) - furthering our biodiversity knowledge base
As one of the 17 most biologically diverse nations on earth, it is essential that we fill the many gaps in our knowledge about our biodiversity if we are to adequately manage and protect it. The Australian Biological Resources Study provides the taxonomic knowledge necessary for the conservation and sustainable use of Australia's biodiversity, with an increasingly comprehensive and authoritative print and Internet-based database.
The Government has committed $12.4 million over four years to maintain the currency of the Australian Biological Resources Study's biodiversity knowledge base, further our knowledge of micro-organisms, and communicate that knowledge to land managers and other clients. There will be an increasing emphasis on online delivery.
Enhanced environment protection
The Government, with the support of the Australian Democrats and Senator Lees, will provide funding of $15.8 million over four years to implement and enhance a range of activities relating to the national standards for air quality, fuel quality, the management and control of chemicals, pollutants, hazardous waste and ozone depleting substances.
The ongoing development of national standards and increased
emphasis on compliance and enforcement of these standards is
the most effective way for the Commonwealth to protect the environment
surrounding the 17 million people -
87 per cent of Australians - who live in our cities
and towns. This will achieve the right balance between urban
developments and environmental protection as well as make a
significant contribution to improving the health of urban Australia.
Urban environment initiatives - Sustainable Cities
From 2003-04, the Howard Government will provide funding of $24.2 million over five years for a range of urban environment initiatives, developed in collaboration with the Australian Democrats and Senator Lees. The Government will give priority to initiatives that address water quality, public information, air quality, renewable energy, chemicals, and waste management.
Specific activities to be supported include: water efficiency labeling and performance standards, improved water quality in local government areas, Year of the Built Environment, Green Buildings, the National Pollutant Inventory, Environmental Education in Schools, a Green Car Rating Scheme, cycling facilities, Air Quality Research and Data Collection, the Photovoltaics Rebate Scheme and a Chemicals Monitoring Database.
Disaster mitigation for Australia
The Howard Government has offered to provide an additional $68.5 million over five years for a new Disaster Mitigation Australia Package that will help redress the adverse impacts of natural disasters in Australia. Mitigation aims to reduce risk, damage and the economic, social and environmental losses from natural disasters (including bushfires, cyclones, storms, floods, earthquakes and landslides), and it aims to achieve safer, more sustainable communities.
The funding is conditional on the availability of matching funding from State and Territory Governments and the implementation by State, Territory and Local governments of more effective statutory land use planning, development and building controls.
This money is in addition to the $14.9 million in 2003-04 and $9.6 million in 2004-05 for the highly successful Regional Flood Mitigation programme, which funds projects to reduce the impact of flooding in rural, regional and outer metropolitan communities across Australia. The programme will be extended with an additional $9.6 million a year in 2005-06 and 2006-07.
Responsible radioactive waste storage
The Government is pursuing an environmentally and economically responsible approach to radioactive waste by establishing a national repository for the safe disposal of Australia's low level radioactive waste.
As part of the Government's commitment to the responsible storage of hazardous wastes, the Government has committed $2.9 million over four years for the establishment of a national repository at a remote site near Woomera, South Australia.
International centre of excellence - water resources management
To promote world recognition of Australia as a leader in water resources management, the Government will establish an International Centre of Excellence in Water Resources Management. The Centre will develop formal networks with overseas counterparts, enable the international exchange of staff and researchers, conduct collaborative research, disseminate expertise and support innovative approaches to research and teaching.
The Government has committed $6.7 million over three years to support the Centre.