Industry, Tourism and Resources

Australia-China Natural Gas Technology Partnership Fund

Expense ($m)

	2004-05	2005-06	2006-07	2007-08
Department of Industry, Tourism and Resources	-	-	-	-

The Government will contribute funding of $7.5 million over the nine years from 2006-07 to 2014-15 to the Australia-China Natural Gas Technology Partnership Fund. The Western Australian Government will contribute $7.5 million and $10 million will be provided by the liquefied natural gas industry.

This measure implements the Government’s commitment to contribute to this fund as part of Australia’s successful bid to supply liquefied natural gas to the Guangdong project in China. The fund will support a range of activities including joint research studies, training and development and personnel exchanges between Australia and China.

This measure is being fully absorbed within the existing resourcing of the Industry, Tourism and Resources portfolio.

Australian Magnesium Corporation

Expense ($m)

	2004-05	2005-06	2006-07	2007-08
Department of Industry, Tourism and Resources	-	-	-	-

In August 2001, the Australian Government agreed to support the development of the Australian Magnesium Corporation’s (AMC’s) Stanwell Magnesium Project by guaranteeing loans to the project of up to $100 million.

Work on the Stanwell Magnesium Project ceased in June 2003 due to significant project cost overruns. As a consequence, the Government has decided to finalise its involvement with AMC and recognise in 2003-04 its commitment to meet a $90 million loan guarantee payment to the ANZ Banking Group.

While this recognition will have an impact of $90 million on the fiscal balance in 2003-04, actual payment to the ANZ Bank (with a corresponding impact on the underlying cash balance) is not required until 2005-06 at the earliest, consistent with the Government’s contractual obligations.

Under the agreed exit arrangements AMC will return to Government some funds and the proceeds from the sale of non-core assets, with details to be finalised in 2004-05 following further discussion with AMC and the Queensland Government.

Axiss Australia — extend funding

Expense ($m)

	2004-05	2005-06	2006-07	2007-08
Department of Industry, Tourism and Resources	3.8	3.8	-	-

The Government will provide $7.6 million over two years to continue the operations of Axiss Australia, which promotes Australia as a financial services centre in the Asia-Pacific region.

On 1 July 2003, Axiss Australia was merged with Invest Australia, the Government’s inward investment promotion agency.

National Measurement Institute — co-location

Expense ($m)

	2004-05	2005-06	2006-07	2007-08
Department of Industry, Tourism and Resources	4.0	-	-	-

The Government will provide funding of $4.0 million in 2004-05 to relocate the National Standards Commission from North Ryde, Sydney, to the site of the new National Measurement Institute in West Lindfield, Sydney. Funding will meet relocation costs including the dismantling and reconstruction of sensitive scientific laboratory equipment. The North Ryde property will be sold with proceeds returning to the Budget.

The Government announced the establishment of the National Measurement Institute in the 2003-04 Budget, merging the National Standards Commission, the National Measurement Laboratory and the Australian Government Analytical Laboratories into a single organisation.

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