Cross Portfolio

Asia Pacific Economic Cooperation 2007

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Various Agencies	47.9	87.3	71.0	0.1
Related capital ($m)
Various Agencies	7.0	3.1	-	-
Related revenue ($m)
Department of Immigration and Multicultural and Indigenous Affairs	0.1	0.2	0.4	0.4

The Government will provide $216.3 million over four years (including $10.1 million in capital funding) for Australia’s hosting of the Asia Pacific Economic Cooperation (APEC) forum in 2007. The funding will cover organisational, logistical and security measures associated with APEC meetings and events to be held throughout 2007. This will be partly offset by additional revenue of $1.1 million over four years, from the sale of APEC Business Travel Cards, for the Department of Immigration and Multicultural and Indigenous Affairs.

APEC is the largest forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. The APEC Leaders’ meeting, to be held in Sydney, will be one of the most important international meetings hosted by Australia. The APEC programme includes hosting Ministerial, Senior Officials’ and business meetings across a range of portfolios throughout 2007.

Australia-United States Free Trade Agreement

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Various Agencies	27.7	26.5	26.2	26.5
Related capital ($m)
Various Agencies	3.5	1.0	-	-

The Government will provide $85.4 million over five years (including $11.4 million in 2004-05) to enable Government departments and agencies to implement the revised Commonwealth Procurement Guidelines issued by the Minister for Finance and Administration on 1 December 2004. The new Guidelines took effect from 1 January 2005 and incorporate new rules and procedures required by the Government Procurement chapter of the Australia-United States Free Trade Agreement (AUSFTA).

Funding of $37.8 million over five years (including $7.6 million in 2004-05) will also be provided to the Department of Health and Ageing to assist it in meeting the Australian Government’s commitments in relation to the pharmaceutical provisions of the AUSFTA. The commitments involve establishing an independent review mechanism in the Pharmaceutical Benefits Scheme (PBS) listing process, providing hearings for sponsor companies before the Pharmaceutical Benefits Advisory Committee (PBAC), and improving PBS listing processes, including greater transparency.

In addition, the Government will provide $8.6 million over five years (including $1.5 million in 2004-05) to the Australian Customs Service to enable it to implement and monitor binding rules of origin requirements, and ensure compliance with the rules by importers and exporters.

The funding includes $5.8 million in capital (including $1.3 million in 2004-05) to be provided to the Australian Customs Service and the Department of Health and Ageing.

Connection to FedLink

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Various Agencies	1.2	0.9	0.9	0.9
Related capital ($m)
Various Agencies	0.1	-	..	..

The Government will provide $4.2 million over five years (including $0.2 million in 2004-05) to enable eighteen small agencies to connect, and maintain a connection, to FedLink, the Australian Government’s secure virtual private network. The network facilitates secure electronic communications among Government departments and agencies.

Efficiency dividend — increase in the rate from 1 per cent to 1.25 per cent

Expense ($m)

	2005-06	2006-07	2007-08	2008-09
Various Agencies	-38.9	-93.5	-149.8	-163.2

The Government will increase the rate of the efficiency dividend from 1 per cent per annum to 1.25 per cent per annum from 2005-06 to 2007-08. This will result in savings of $445.4 million over four years.

The efficiency dividend applies to the operational costs of most Australian Government agencies and certain programmes, and reduces the level of funding provided each year to ensure efficiencies that should be able to be realised by public sector managers are returned to the Budget.

The efficiency dividend will also apply to the civilian and non-operational areas of Defence, which were previously exempt, and will be phased in at the rate of 0.25 per cent per annum, commencing in 2005-06.

The measure was announced on 7 October 2004 as part of the Government’s election commitment Recognising Senior Australians — Their Needs and Their Carers.

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