Agriculture, Fisheries and Forestry
Sugar Industry Reform Programme 2004
The Government will provide $444.4 million over five years (including $82.6 million in 2003-04) to assist reform and restructure of the Australian sugar industry. This package incorporates and extends measures from the 2002 Sugar Industry Reform Package including income support, exit grants and funding for regional adjustment. The interest rate relief component of the 2002 package will not be continued. Existing resources of $78.8 million under the Sugar Industry Reform Package will be used to partially fund the new package.
The package includes grants to sustain the industry through a transition phase, to encourage sugar regions to diversify their economic base, and to assist sugar farms to rationalise, restructure or diversify. An advisory network will be established to oversee the reform process.
Other measures to assist growers and harvesters include income support for eligible recipients and assistance with financial viability assessments. Re-establishment grants and retraining assistance will be available to growers and harvesters who wish to leave the industry, and sugar farm families will have access to crisis counselling. Eligible sugar farmers will have the option of being able to access the Age or Service Pension without the existing gifting rules applying to the transfer of their farm to the next generation.
Table 3: Sugar Industry Reform Programme 2004 — Summary of measures
- These payments will be funded from resources allocated to the Regional Partnerships Programme
Sugar Industry Reform Programme 2004 — sustainability grants
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 73.1 | - | - | - |
| Department of Transport and Regional Services | - | - | - | - |
| Total | 73.1 | - | - | - |
The Government will provide $146.1 million over two years (including $73 million in 2003-04) for grants to sugar growers and sugar mills to sustain them through this transitional phase of reform and restructuring in the sugar industry.
The sustainability grants will be paid through the industry payment system in Queensland and existing contract arrangements in the other states. The distribution between growers and millers will differ between regions and between states, consistent with local arrangements. The grants will be paid in two tranches: the first in June 2004 and the second in January 2005, with the latter subject to satisfactory progress being demonstrated in relation to industry reform.
Funding of $73 million in 2003-04 will be sourced from current resourcing for the Departments of Agriculture, Fisheries and Forestry and Transport and Regional Services.
Sugar Industry Reform Programme 2004 — advisory group network
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 2.6 | 1.8 | 2.6 | 0.5 |
The Government will provide $8 million over five years (including $0.5 million in 2003-04) to establish an advisory group network comprising a five-member Industry Oversight Group and several regional groups to oversee the implementation of the sugar industry reform process. The Industry Oversight Group will also be responsible for making recommendations to the Minister for Agriculture, Fisheries and Forestry on priorities for regional industry and community projects.
Sugar Industry Reform Programme 2004 — regional and community projects
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 15.0 | 35.0 | 25.0 | - |
The Government will provide $75 million over three years for a competitive grants programme for projects which promote rationalisation, aggregation or diversification in the sugar industry, and for projects for community development.
The Minister for Agriculture, Fisheries and Forestry will allocate grants on the recommendation of the Industry Oversight Group. Funds will be allocated for projects that are consistent with regional plans for the sugar industry or which encourage economic diversification within a region.
Sugar Industry Reform Programme 2004 — income support
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 15.0 | .. | .. | - |
The Government will provide $20.6 million over four years (including $5.5 million in 2003-04) for income support to eligible cane growers and harvesters. Income support will be available for twelve months, at a rate equivalent to the Newstart Allowance, and will be subject to an income and assets test — with farm assets excluded. Recipients of income support are required to undertake financial viability assessments, which will be administered by Centrelink.
Funding includes $3.5 million over four years to Centrelink to meet administration costs.
Sugar Industry Reform Programme 2004 — financial viability assessments
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 10.4 | 3.2 | - | - |
The Government will provide $15.2 million over three years (including $1.6 million in 2003-04) to assist growers, harvesters and mills to develop business plans.
Funding will include $5.6 million for recipients of income support. Sugar growers and harvesters not in receipt of income support will be able to access business planning assistance at a cost of $7.2 million. Cooperative and single site mills will also be able to access assistance of $0.1 million each, at a cost of $1.2 million.
This funding includes $1.2 million over three years for Centrelink to administer the grower and harvester component of this measure. The Department of Agriculture, Fisheries and Forestry will administer the cooperative and single site mill component.
Sugar Industry Reform Programme 2004 — restructuring grants
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 17.9 | 20.0 | 2.6 | - |
The Government will provide $40.5 million over three years for grants to encourage farmers electing to remain in the industry to improve farm productivity. The grants will be provided to farmers according to the land area they use to grow sugar cane and will be capped at $15,000 per grower.
Funding includes $1.4 million to Centrelink to meet administration costs.
Sugar Industry Reform Programme 2004 — re-establishment grants
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 62.6 | 24.1 | 9.5 | .. |
The Government will provide $96.2 million over four years for one-off re-establishment grants to encourage and support unviable growers and harvesters who wish to leave the sugar industry. Re-establishment grants for growers are a form of sugar industry exit grants under the Sugar Industry Reform Package and are tax-free for growers who undertake to exit agriculture. Growers will be eligible for one-off grants of up to $100,000 if they exit the industry in 2004-05, up to $75,000 in 2005-06, and up to $50,000 in 2006-07.
Harvesters for whom sugar cane harvesting is the primary source of income will be eligible for a one-off re-establishment grant of up to $50,000 in any of the three years. Grants will be conditional on the harvester undertaking to leave the sugar industry. All growers and harvesters who access the re-establishment grant will be eligible to access retraining assistance under current Government programmes.
Funding includes $1 million over four years for Centrelink to meet administration costs.
Sugar Industry Reform Programme 2004 — retraining and employment assistance
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Employment and Workplace Relations | 2.1 | 1.6 | 0.9 | - |
| Department of Agriculture, Fisheries and Forestry | 0.8 | 0.8 | 0.8 | - |
| Department of Education, Science and Training | - | - | - | - |
| Total | 2.9 | 2.4 | 1.7 | - |
The Government will provide $7 million over three years to assist the retraining and re-employment of growers who exit the industry and sugar industry workers who lose their jobs as a result of the reform process. Retraining and employment assistance will be delivered through current programmes administered by the Departments of Employment and Workplace Relations, Education, Science and Training, and Agriculture, Fisheries and Forestry. Funding for Department of Education, Science and Training programmes will be fully absorbed from within existing resourcing.
This funding includes $0.1 million for the Department of Agriculture, Fisheries and Forestry to be paid to Centrelink to meet administration costs.
Sugar Industry Reform Programme 2004 — administration
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 2.7 | 1.9 | 1.7 | - |
The Government will provide $7.6 million over four years (including $1.3 million in 2003-04) for the Department of Agriculture, Fisheries and Forestry to administer the Sugar Industry Reform Programme 2004.
Sugar Industry Reform Programme 2004 — intergenerational transfer
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Family and Community Services | 2.6 | 3.7 | 5.9 | 6.7 |
| Department of Veterans’ Affairs | 0.6 | 0.8 | 1.2 | 1.3 |
| Total | 3.2 | 4.5 | 7.1 | 8.0 |
| Related capital ($m) | ||||
| Department of Veterans’ Affairs | - | - | - | - |
The Government will provide $23.3 million over five years (including $0.4 million in 2003-04 of which $0.2 million is capital funding) to assist eligible sugar farmers to access the Age or Service Pension without the existing gifting rules applying to the transfer of their farm to the next generation. Cane growers will be given a three-year window of opportunity to gift their sugar cane farm and apply for the pension without the normal gifting rules being applied.
Funding includes $2.4 million for Centrelink to meet administration costs.
Sugar Industry Reform Programme 2004 — crisis counselling
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Family and Community Services | 2.7 | 1.0 | 0.6 | 0.4 |
The Government will provide $5 million over five years (including $0.3 million in 2003-04) for financial counselling and family support services for families in sugar growing regions. Counselling services will be delivered through existing programmes administered by the Department of Family and Community Services.
Sugar Industry Reform Programme 2004 — reprioritisation of funding
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | -24.4 | -22.0 | -0.2 | - |
The Government will reallocate funding of $78.8 million over four years (including $32.2 million in 2003-04) from the 2002 Sugar Industry Reform Package to partially fund the Sugar Industry Reform Programme 2004.
Agriculture — Advancing Australia — extension
The Government will provide funding of $236 million over four years to continue the Agriculture — Advancing Australia package of measures. This package continues the Government’s commitment to helping Australian primary producers to become more competitive, sustainable and profitable.
The package includes measures to assist eligible primary producers obtain income support, improve their business skills, access financial counselling, pursue new export opportunities and adjust to import competition.
These measures are in addition to programmes from previous Agriculture — Advancing Australia packages, which will continue, including the Farm Management Deposits scheme, which provides tax advantages to farmers who save money in profitable years for use during periods of reduced income, and Exceptional Circumstances assistance, which provides income support and interest rate relief to farmers affected by drought.
Table 4: Agriculture — Advancing Australia — Summary of measures
Note: Total funding for FarmHelp is $136.9 million over five years, including $2 million in 2008-09.
Agriculture — Advancing Australia — FarmHelp
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 41.7 | 49.6 | 31.3 | 12.3 |
The Government will provide $136.9 million over five years (including $2 million in 2008-09) to continue the FarmHelp programme. The programme assists those eligible primary producers who are experiencing financial hardship by providing income support for up to one year, financial assistance to obtain professional advice and training, and a re-establishment grant.
This funding includes $21.1 million over five years for Centrelink to administer elements of the FarmHelp programme.
Agriculture — Advancing Australia — FarmBis
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 13.6 | 17.7 | 17.8 | 17.6 |
The Government will provide $66.7 million over four years to continue the FarmBis programme, which helps primary producers to manage risk and make productive and profitable changes to their farm businesses. FarmBis provides subsidies for eligible primary producers to obtain training in areas such as business and leadership skills, marketing and natural resource management.
The FarmBis programme will continue to be delivered in cooperation with the States, which provide matching funding.
Agriculture — Advancing Australia — Rural Financial Counselling Service
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 5.9 | 5.9 | 5.8 | 5.8 |
The Government will provide $23.3 million over four years to continue the Rural Financial Counselling Service Programme. This funding will be used to assist rural communities to employ financial counsellors. The counsellors provide advice to farm families who are in financial difficulty and help them to make better decisions about their future business directions.
Agriculture — Advancing Australia — International Agricultural Cooperation Programme
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 1.6 | 1.6 | 1.6 | 1.6 |
The Government will provide $6.4 million over four years to continue the International Agricultural Cooperation Programme, formerly Farm Growth Through Export Growth. This funding will promote rural exports by building upon existing and implementing new bilateral (government-to-government) frameworks, facilitating contact with potential international customers and providing technical assistance to targeted trading partners.
Agriculture — Advancing Australia — Industry Partnerships
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 4.7 | - | - | - |
The Government will provide $4.7 million in 2004-05 for an Industry Partnerships programme to assist agricultural industries that are subject to import competition or adjustment and regulatory pressures. This funding will develop training products, and provide support for trade missions and industry workshops.
Other measures in the Agriculture, Fisheries and Forestry portfolio
Agricultural Development Partnership — reprioritisation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | -4.6 | - | - | - |
The Government will wind down the Agricultural Development Partnership (ADP) Programme from 30 June 2004 to reflect a lower uptake of the programme. Existing agreements with the States will not be affected. The ADP Programme funds projects to achieve better market orientation by industries in regions experiencing problems affecting farm profitability and sustainability.
The Government will reallocate $2.2 million in 2004-05 from the ADP Programme to the Quarantine — Safeguarding Australia programme. A further $2.4 million in 2004-05 will be reallocated to the National System for the Prevention and Management of Marine Pest Incursions Programme.
See also the related expense measures titled Quarantine — Safeguarding Australia and Marine Pest Incursions — National Management System Programme in the Agriculture, Fisheries and Forestry portfolio.
Aquaculture Industry Action Agenda — continuation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 1.0 | - | - | - |
The Government will provide $1 million in 2004-05 to continue activities under the Aquaculture Industry Action Agenda. Initiatives under the Action Agenda will encourage aquaculture production and the development of aquaculture projects in Indigenous communities.
This funding is in addition to the $2.5 million provided in the 2003-04 Budget measure Aquaculture Industry Action Agenda.
Artesian basin rehabilitation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 8.2 | 8.4 | 8.5 | 8.7 |
The Government will provide funding of $42.7 million over five years (including $8.9 million in 2008-09) to continue the Great Artesian Basin Sustainability Initiative.
The programme provides grants to the States to restore artesian pressure and reduce water wastage through the capping of old, free-flowing bores and replacing wasteful earth bore drains with pipes.
The Great Artesian Basin covers one fifth of Australia and extends across New South Wales, Queensland, South Australia and the Northern Territory. Part of this funding will complete the rehabilitation of the Carnarvon Artesian Basin in Western Australia.
Avian influenza — enhanced quarantine arrangements
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 6.2 | - | - | - |
The Government will provide $8.3 million over two years (including $2.1 million in 2003-04) to the Australian Quarantine Inspection Service for enhanced border controls to prevent entry of avian influenza (bird flu) into Australia.
The funding will provide for screening of all passengers and baggage from avian influenza affected countries until 30 June 2005. Additional awareness campaigns will be conducted at Australian airports and surveillance increased in northern Australia.
The funding period is consistent with medical and veterinary advice that protection against the current outbreak will require enhanced border controls until the end of the next influenza season.
Building a National Approach to Animal and Plant Health — extension
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 5.0 | 5.9 | 5.4 | 5.3 |
The Government will provide $21.6 million over four years to continue the Building a National Approach to Animal and Plant Health Programme.
This funding will enhance Australia’s response to emergencies and biosecurity threats in the agricultural and food sectors by improving national animal and plant health infrastructure and industries’ disease prevention and awareness capabilities.
Douglas Shire Ethanol Project — reprioritisation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | -0.4 | -1.6 | - | - |
The Government has revised the level of funding for the Douglas Shire Ethanol Project to reflect delays in its implementation. Of the total reduction of $2 million over two years, the Government will reallocate $0.4 million in 2004-05 to the Quarantine - Safeguarding Australia Programme and $1.3 million in 2005-06 to the Marine Pest Incursions — National Management System Programme.
See also the related expense measures titled Quarantine — Safeguarding Australia and Marine Pest Incursions — National Management System Programmes in the Agriculture, Fisheries and Forestry portfolio.
Drought assistance — Exceptional Circumstances assistance
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 35.3 | 10.8 | - | - |
| Department of Health and Ageing | 1.1 | 0.2 | - | - |
| Department of Family and Community Services | 1.0 | 0.5 | - | - |
| Total | 37.4 | 11.5 | - | - |
The Government will provide $72.7 million over three years (including $23.8 million in 2003-04) to primary producers in regions that have been declared eligible for Exceptional Circumstances assistance. Overall, the Government expects to provide $880.9 million in Exceptional Circumstances assistance over the period 2002-03 to 2005-06.
Exceptional Circumstances assistance comprises interest rate subsidies and income support to assist viable farm businesses and farm families who have been adversely affected by exceptional climatic events, such as drought. Eligible recipients are also provided with a health care concession card and access to Youth Allowance.
Exceptional Circumstances drought assistance is a cross-portfolio measure between the Departments of Agriculture, Fisheries and Forestry, Health and Ageing, and Family and Community Services. Funding for the Department of Agriculture, Fisheries and Forestry includes $1 million over two years for Centrelink to administer elements of Exceptional Circumstances assistance.
Drought assistance — interim income support
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 0.6 | - | - | - |
The Government will provide $0.6 million in 2004-05 to primary producers in regions that have been declared eligible for interim income support since December 2003. Overall, the Government expects to provide $74.3 million in interim support over the period 2002-03 to 2005-06.
Once a fully completed application for a particular region is received by the Australian Government and is deemed to show a prima facie case for an Exceptional Circumstances declaration, interim income support is made available to eligible primary producers on conditions equivalent to the Exceptional Circumstances Relief Payment.
Access to interim income support is available for up to six months while the Exceptional Circumstances application is assessed by the National Rural Advisory Council. Should the Government declare Exceptional Circumstances in that region, interim income support ceases and standard Exceptional Circumstances assistance arrangements commence.
Forest Industry Structural Adjustment Package (Western Australia)
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | - | 8.7 | - | - |
The Government will provide $15 million over two years to meet its commitment under the Regional Forest Agreement to a development assistance programme for the Western Australian forest industry. The programme will assist the industry, and communities dependent on the industry, to adjust to changes in timber availability.
Provision for funding of $6.3 million in 2004-05 has already been included in the forward estimates.
Forest Industry Structural Adjustment Package — reallocation of funds
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 0.7 | - | - | - |
The Government will reallocate $0.7 million from 2003-04 to 2004-05 within the Forest Industry Structural Adjustment Package. This funding will be provided to the Forest Industry Structural Adjustment Programme for South-east Queensland, which aims to develop the Queensland native forest timber industry and generate sustainable employment.
Livestock export trade — response to the Keniry Report
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 4.3 | 2.4 | 2.3 | 2.3 |
The Government will provide $11.3 million over four years to implement its response to the Keniry Report on Australia’s livestock export trade. This includes the licensing of exporters, implementing a new Australian Livestock Export Code, and increasing Australian Quarantine and Inspection Service audits and inspections at all points of the trade.
The Government will also station a veterinary counsellor in the Middle East, and encourage technical cooperation in importing countries to improve animal welfare practices and handling procedures.
Marine Pest Incursions — National Management System Programme
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 1.4 | 1.3 | 1.0 | - |
The Government will provide $3.7 million over three years to develop a single national management system to address risks to Australia’s natural resources and associated industries arising from the introduction of exotic marine pests.
Murray-Darling Basin Commission — additional contribution
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 5.8 | 9.6 | 9.5 | 8.5 |
The Government will provide an additional $67 million over four years to the Murray-Darling Basin Commission to fund capital works, administration and education activities, and to establish a ‘renewals annuity’ for capital replacement and major cyclical maintenance. Funding of $33.5 million over three years will be absorbed within the existing resourcing of the Natural Heritage Trust.
This funding is in addition to $19.5 million over four years allocated to the Murray-Darling Basin Commission and already included in the forward estimates.
The Commission is responsible for managing assets such as dams and weirs, overseeing salinity mitigation works, and providing strategic direction and support for natural resource management initiatives in the Murray-Darling Basin.
National Landcare Programme — extension
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | - | - | 40.0 | 40.0 |
The Government will provide $80 million over two years to extend the National Landcare Programme until 30 June 2008. The programme aims to build the awareness, skills and capacity of landholders and local communities to adopt improved natural resource management practices.
Provision for funding of $39.3 million in 2004-05 and $40.2 million in 2005-06 has already been included in the forward estimates.
National Landcare Programme — reprioritisation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | -2.0 | -2.0 | - | - |
The Government will reduce administrative overheads in the National Landcare Programme. Of the total reduction of $4 million over two years, the Government will reallocate $1 million in 2004-05 to the Aquaculture Industry Action Agenda and $1 million in 2004-05 to the Quarantine — Safeguarding Australia Programme.
See also the related expense measures titled Aquaculture Industry Action Agenda — continuation and Quarantine — Safeguarding Australia in the Agriculture, Fisheries and Forestry portfolio.
Quarantine — Safeguarding Australia
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Agriculture, Fisheries and Forestry | 3.5 | - | - | - |
The Government will provide $5.5 million over two years (including $2 million in 2003-04) to expedite the risk analysis undertaken in relation to potential imports to Australia.
This funding will also be used to promote better understanding of Australia’s science-based quarantine system amongst our trading partners, and to fund the legal defence against any aspect of our quarantine system that is challenged in the World Trade Organisation.
This funding is in addition to the $46.7 million over four years provided in the 2001-02 Budget measure, Continuation of Nairn funding for quarantine activities.