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Transport and Regional Services

Airservices Australia — extension of the Location Specific Pricing subsidy

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 7.0 - - -
  1. A positive number for revenue indicates an increase in the fiscal balance.

The Government will provide $7 million in 2004-05 to continue the Location Specific Pricing subsidy for Airservices Australia to provide terminal navigation services at some regional and general aviation airports.

The purpose of the subsidy is to limit the effect of location specific pricing at smaller airports where low traffic limits the ability to meet the real costs of air traffic control services. Fourteen airports currently benefit from this subsidy. The subsidy is being continued for 2004-05 only to enable Airservices Australia to move towards longer term pricing arrangements for its terminal navigation services by 1 July 2005.

This subsidy will continue to be funded by the existing excise and customs duty arrangements until 31 October 2005.

AusLink — grant to the Australian Rail Track Corporation

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services - - - -

The Government will provide a grant of $450 million to the Australian Rail Track Corporation (ARTC) in 2003-04 for investment in new rail infrastructure projects on the interstate rail system, including improvements and rail realignments on parts of the NSW north coast line to Brisbane. This is in accordance with the ARTC charter to develop interstate rail freight and will improve rail’s ability to compete with road freight.

AusLink — National Land Transport Network

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 88.4 108.7 421.7 427.1

The Government will provide an additional $1.487 billion over five years (including $432.5 million in 2008-09) for land transport projects, for new information technology infrastructure and to implement reform of national land transport planning, funding and decision making through AusLink.

Funding of $1.44 billion over five years will be allocated to land transport projects within the new defined National Land Transport Network.

The funding includes $265 million per annum indexed from 2006-07 to offset the impact of the abolition of the Fuel Sales Grants Scheme. This will be allocated to improve roads in outer metropolitan, rural and remote areas on the National Land Transport Network.

The National Land Transport Network will identify critical road and rail links of national importance. The Australian Government will share funding responsibility for projects within the network with States, Territories and the private sector.

The Department of Transport and Regional Services will be provided with an additional $46.8 million over six years to administer the AusLink programme. This includes an additional $1.2 million to be provided in 2003-04. This funding also includes capital expenditure of $8.5 million for new information technology infrastructure.

AusLink will incorporate the existing National Highway and Roads of National Importance programmes.

See also the related expense measure titled AusLink — redirection of funds from the Fuel Sales Grants Scheme in the Treasury portfolio.

AusLink — Roads to Recovery

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services - 300.0 300.0 300.0

The Government will provide $1.2 billion over four years from 2005-06 to continue the Roads to Recovery programme.

Roads to Recovery will fund local and regional land transport infrastructure within the AusLink framework. Of the available funds, $200 million will be allocated by formula for local roads, continuing current arrangements. The remaining $100 million will be allocated to councils on a competitive basis for local land transport infrastructure of regional importance.

Further information can be found in the Joint Press Release of 22 January 2004 from the Minister for Transport and Regional Services and the Minister for Local Government, Territories and Roads.

Australian Transport Safety Bureau — aviation safety investigations

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 2.0 2.1 2.1 2.1

The Government will provide funding of $8.2 million over four years for the Australian Transport Safety Bureau to increase the number of aviation safety investigations conducted annually.

The Transport Safety Investigation Act 2003 provides for the Australian Transport Safety Bureau to undertake independent investigation of accidents and incidents involving civil aircraft, international and interstate shipping, and trains on the defined interstate rail network.

Bass Strait Passenger Vehicle Equalisation Scheme — capping

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services - - - -

The Government will cap funding under the Bass Strait Passenger Vehicle Equalisation Scheme for services on the Sydney-Devonport route at a total of $8 million per annum covering all operators. The scheme will not be extended to any new routes.

This measure has no impact on the fiscal balance as the current forward estimates cover the expected cost of the scheme for the Sydney-Devonport route.

Civil Aviation Safety Authority — financial viability

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Civil Aviation Safety Authority - - - -
  1. A positive number for revenue indicates an increase in the fiscal balance.

The Government will provide additional funding of $29.2 million over four years to the Civil Aviation Safety Authority to assist it to maintain its long term financial position.

The Authority’s ongoing financial position has been weakened by changes in the aviation industry which have resulted in lower fuel consumption (part of the Authority’s budget funding is directly linked to aviation fuel excise collections). The Government considered the financial position of the Authority in the 2003-04 Budget and agreed to increase aviation fuel excise for one year. The Government has now decided to maintain the existing rate of aviation fuel excise.

The additional funding also includes $3.2 million in 2004-05 pending the identification of structural changes, including reduced costs, to ensure the sustainability of the Authority’s financial position without impacting on its capacity to regulate the safety of civil air operations in Australia and of Australian aircraft.

The increased funding for the Authority does not impact on the fiscal balance because the Authority was projecting losses in those years.

Commonwealth Regional Information Service — funding

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 3.3 - - -

The Government will provide funding of $3.3 million in 2004-05 to the Commonwealth Regional Information Service to enhance access to information on Australian Government programmes and services for people in regional Australia. This will include preparation and distribution of a booklet to households.

Conditional business credits — heavy vehicles

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 1.2 0.4 - -

The Government will provide $1.7 million over two years to develop, publish and disseminate emissions performance criteria, including emissions based maintenance models for heavy diesel vehicles. Operators of these vehicles will be required to meet these emissions performance benchmarks to gain access to on-road business credits.

Green Vehicles Guide — promotion

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 1.1 0.2 0.1 0.1

The Government will provide an additional $1.5 million over four years to promote the Green Vehicles Guide.

The Guide provides consumers with information on the carbon dioxide and noxious pollutant emissions from vehicles, with the aim of facilitating better informed purchase decisions.

Maritime Search and Rescue

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Australian Maritime Safety Authority 4.1 4.6 4.1 4.1

The Government will provide an additional $18.9 million over four years to the Australian Maritime Safety Authority to enhance maritime search and rescue capability throughout Australia.

A dedicated search and rescue service in Darwin will be contracted from the start of 2005, using a twin turbine-engine aircraft to improve coverage across northern Australia. Funding (including capital) over two years will also be provided to develop a drop system suitable for deploying rescue equipment from this type of aircraft.

The Government will also provide funding to improve communication and coordination between the Authority’s Rescue Coordination Centre and other search and rescue agencies throughout Australia, including state and territory police. This includes capital funding over the two years for improved communication equipment and upgrading of the Centre’s facilities.

The Government will also provide funding over four years to assist the Authority to meet the increased regulatory requirements of the Civil Aviation Safety Authority for search and rescue operations, including increased training, medical testing and the development of standard operations manuals for operators.

Motor Vehicle Standards Act 1989 — administration

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 2.0 - - -

The Government will provide an additional $3.1 million in 2004-05 (including $1.1 million capital funding) for the administration of the Motor Vehicle Standards Act 1989.

This funding includes $2 million to enable the Department of Transport and Regional Services to improve its audit and compliance programme to ensure that the quality and integrity of vehicles entering the Australian market meet Australian standards. It will also improve the Department’s ability to undertake research on vehicle safety standards.

This funding also includes $1.1 million for information technology systems to support these activities.

National Aerial Firefighting Strategy — Australian Government contribution

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 5.5 5.5 5.5 -

The Government will provide $16.5 million over three years to assist state governments to fund aerial firefighting equipment.

The funding will be provided to the National Aerial Firefighting Centre, which has responsibility for the national coordination of leasing and allocation of aerial firefighting resources. Consistent with current natural disaster management responsibilities, state governments will be responsible for meeting the remaining costs.

This measure will involve funding of $5.5 million in each year from 2004-05 to 2006-07. Provision for this funding has already been included in the contingency reserve.

National Capital Authority — legal settlement

Expense ($m)
2004-05 2005-06 2006-07 2007-08
National Capital Authority - - - -

The Government will provide $1.4 million in 2003-04 to the National Capital Authority (NCA) to meet the legal costs and settlement costs arising from a challenge to an NCA administrative decision made in 1995.

Norfolk Island — funding for work on Kingston Pier

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 3.1 - - -

The Government will provide $3.1 million for the urgent stabilisation and refurbishment of Kingston Pier, Norfolk Island. The work will address safety concerns, protect an important historical asset and ensure that an important component of the Island’s infrastructure remains useable by the community.

Northern Territory local roads — additional funding

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 1.0 - - -

The Government will provide an additional $1 million in 2004-05 to the Northern Territory for local roads in unincorporated areas. This funding is in addition to that provided for local roads in the Northern Territory through the Roads to Recovery Programme.

Regional Partnerships Programme — additional funding

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 13.0 13.4 13.0 33.1

The Government will provide an additional $77.6 million over four years (including $5.1 million capital funding) to support initiatives in Australia’s regions through the Regional Partnerships Programme.

This funding includes an additional $72.5 million to expand assistance currently available under the Regional Partnerships Programme to promote regional business development and investment activities, assist structural adjustment, and improve services and infrastructure for towns with populations of less than 5,000 people. It will also enhance the role of the Area Consultative Committees, which facilitate Australian Government consultation with local communities.

The additional projects funded will address a number of the recommendations in the Regional Business: A Plan for Action report by the Regional Business Development and Analysis Panel presented to the Australian Government in 2003.

This funding also includes $5.1 million over four years for the Department of Transport and Regional Services for information technology systems to support administration of the Regional Partnerships Programme.

Regional Partnerships Programme — Beaudesert Shire Railway

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 0.6 - - -

The Government will provide additional funding of $0.6 million in 2004-05 to the Regional Partnerships Programme for assistance to the Beaudesert Shire Railway Support Group. This assistance will be provided as a grant to meet costs incurred by the Beaudesert Shire Railway.

Remote Air Services Subsidy Scheme — extension of funding

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 1.5 1.6 1.8 2.8

The Government will provide $7.7 million over four years to continue an expanded Remote Air Services Subsidy Scheme. The scheme provides a subsidy to air service operators to provide regular weekly air transport services for the carriage of passengers and goods, such as fresh food, medical supplies and spare parts, to isolated communities in remote areas of Australia.

In 2000-01, the Government provided an additional $5.2 million over four years to expand service availability from 190 to 250 remote communities. The new funding will enable air service operators to continue providing the expanded service.

South Australian local roads — additional funding

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 4.3 9.0 13.0 -

The Government will provide an additional $26.3 million over three years to councils in South Australia for local roads.

This funding is in addition to that provided for local roads in South Australia through Untied Local Road Grants and the Roads to Recovery Programme. The measure is an interim response to the Report of the House of Representatives Standing Committee on Economics, Finance and Public Administration, Rates and Taxes: A Fair Share for Responsible Local Government.

Tasmanian Freight Equalisation Scheme — inclusion of wheat shipments

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 1.9 2.0 2.0 2.0

The Government will provide an additional $7.8 million over four years to extend eligibility for assistance under the Tasmanian Freight Equalisation Scheme to containerised wheat shipments.

Assistance for both bulk and containerised wheat shipments is currently provided by the Tasmanian Wheat Freight Scheme which ceases on 30 June 2004. Assistance under the Tasmanian Freight Equalisation Scheme will be provided to containerised wheat shipments only. This funding includes provision for the higher rebate payments as well as increased costs associated with administration of the scheme. The Tasmanian Freight Equalisation Scheme assists in alleviating the comparative freight cost disadvantage incurred by shipping of non-bulk goods carried between Tasmania and the mainland.

Transport and Logistics Centre of Excellence

Expense ($m)
2004-05 2005-06 2006-07 2007-08
Department of Transport and Regional Services 2.0 2.0 - -

The Government will provide $4 million over two years to establish a Transport and Logistics Centre of Excellence.

The Centre, which will receive matching contributions from the New South Wales Government, will support the development of a national education and training network for the transport and logistics sector.


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