Appendix A:
Policy decisions taken since the 2003-04 Budget

Capital measures

Agriculture, Fisheries and Forestry

Wheat Export Authority — operating loan

Capital ($m)

	2003-04	2004-05	2005-06	2006-07
Wheat Export Authority	-	-	-	-

The Government has provided a loan of up to $1.0 million to assist the Wheat Export Authority in meeting ongoing operational expenses prior to the introduction of a levy by the Authority on wheat exports. The levy was introduced from 1 October 2003. The loan is to be repaid from levy revenue by 30 June 2006.

The provision of loans from the Budget, and their repayments, affects only the composition of the Australian Government’s financial assets. As such this measure has no impact on the fiscal balance.

Attorney-General’s

Australian Customs Service — equity injection

Capital ($m)

	2003-04	2004-05	2005-06	2006-07
Australian Customs Service	-	-	-	-

The Government will provide an equity injection of up to $43 million to the Australian Customs Service to address a funding shortfall in 2003-04. This shortfall results from higher than expected costs in several programmes, including the Cargo Management Re-engineering programme. The additional resourcing will allow the Australian Customs Service to meet operational requirements in 2003-04.

This funding is an interim measure with any further funding to be decided following the completion of a comprehensive review in 2003-04 of agency activity and resourcing levels.

The provision of a capital injection is a financial transaction within the general government sector and consequently has no direct impact on the fiscal balance. Expenditure of the funds will impact on the fiscal balance and provision for this expenditure has been made in the contingency reserve.

Education, Science and Training

Our Universities — Higher Education Loans Programme (HELP) extension

Capital ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Education, Science and Training	-	-	-	-
Related revenue(a) ($m)
Department of Education, Science and Training	-	-	0.1	0.2

1. A positive number for revenue indicates an increase in the fiscal balance.

 

From January 2005, the Government will allow higher education institutions to set student contribution amounts, payable through HECS-HELP and FEE-HELP loan arrangements, for teaching and administrative support provided while students undertake industry work experience as part of their studies.

The types of support that institutions will need to provide in order to be eligible to charge students under these arrangements will be specified under ministerial guidelines.

Under accepted accounting practice, loans to students are treated as financial assets and therefore do not impact on the fiscal balance. Payment by students of the indexation component under the Higher Education Loans Programme is treated as interest revenue and impacts the fiscal balance from 2005-06.

Radioactive waste management facility — security and access road construction

Capital ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Education, Science and Training	4.8	-	-	-

The Government will provide capital funding of $4.8 million in 2003-04 to build a national radioactive waste management repository. This is in addition to the $0.5 million provided at the 2003-04 Budget and will enable construction of an access road and additional security at the final site, 20km east of Woomera, South Australia.

This purpose-built waste management facility will hold waste generated by the Australian Nuclear Science and Technology Organisation, the Commonwealth Scientific and Industrial Research Organisation and the Department of Defence.

The facility will also hold waste generated by non-Australian Government organisations, including State and Territory agencies and industry.

Foreign Affairs and Trade

Export Finance and Insurance Corporation — divestment of short term export credit business

Capital ($m)

	2003-04	2004-05	2005-06	2006-07
Department of Foreign Affairs and Trade	-	-	-	-

The Government has divested the Export Finance and Insurance Corporation’s short-term credit insurance business for exporters to Gerling NCM following an 18-month service delivery alliance. Sale proceeds of $2.5 million will be remitted to the Government during 2003-04 as a return of capital.

This measure will have no impact on the fiscal balance as the Government’s equity in the short-term business is being returned following the sale, affecting only the composition of the Commonwealth’s financial assets, not the total amount.

The Government has also established a short-term credit insurance facility on the National Interest Account to support exporters in significant instances where private sector support is not available.

Further information can be found in the press release of 14 August 2003 issued by the Minister for Trade.

Transport and Regional Services

National Capital Authority — additional funding

Capital ($m)

	2003-04	2004-05	2005-06	2006-07
National Capital Authority	0.6	-	-	-

The Government will provide $0.6 million in 2003-04 to cover the cost of additional works involved in the construction of Commonwealth Place and Reconciliation Place.

Commonwealth Place and Reconciliation Place are both major projects in the Parliamentary Zone of the National Capital designed to be accessible to all Australians so that they can more fully understand and appreciate the collective experience and rich diversity of this country.

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