This measure brings to a close the long running debate over the site and essential nature of a National Museum of Australia.
The idea of a National Museum of Australia has been around since federation. In 1975 a committee of Inquiry set up by the Whitlam Government recommended the building of a low profile museum with three themes/galleries (Aboriginal Australia, Social History and the Environment) at Yarramundi Reach in Canberra. The Act to establish a National Museum was passed in 1980. Although an invaluable collection was subsequently formed, links forged with Aboriginal, Torres Strait Islander and other communities, and travelling tours and open days organised, it was not until 1993 that the first money was pledged for the construction of permanent facilities. The Keating Government committed $3 million for preliminary design work on a National Museum at Yarramundi Reach and pledged $26 towards its construction, conditional on the private sector providing the remainder of the anticipated $60 million. In its October 1994 Creative Nation document, however, the Keating Government described a Museum without any permanent exhibition at Yarramundi Reach and signalled the building of a Gallery of Aboriginal Australia, not necessarily as part of the National Museum, at Acton Peninsula in Canberra. In the March 1996 Federal election campaign the Coalition promised to go ahead with a full three-gallery Museum, stating that its preferred site was Yarramundi Reach. In Government the Coalition set up an Advisory Committee on the question of the site. In December 1996 that Committee recommended the Acton site and the Government committed $750 000 for design work on that site. Although many commentators believed the Acton site does not lend itself well to the 'museum without walls' concept which had been proposed for the more expansive Yarramundi site, most commentators appeared pleased that it appeared to going ahead as a unified museum.
This Budget's allocation ensures that building of the National Museum at the Acton site will commence in this financial year. With no separate forward estimates being given, it is, however, unclear how much the Government is planning to commit to the overall project.
Funding for future years will be provided from the Federation Fund.
The above measures do not represent an increase in Government support to the film industry (the first two measures simply continue funding), but they do represent a Government commitment to the continued existence of the three bodies. This is significant as the Minister for Communications and the Arts, Senator Alston, had indicated in a press release on 6 February 1997 that the Government would be considering the recommendations of the January 1997 Review of Commonwealth Assistance to the Film Industry report by David Gonski 'in the context of the Budget'. The Gonski Report supported continued Commonwealth assistance to the film industry and the continued 'many door' approach to supporting film production, but did receive many submissions calling for mergers between such film funding bodies as the Australian Film Finance Corporation, the Australian Film Commission and Film Australia and did suggest replacing the tax concession schemes with new Film Licensed Investment Companies (FLICs). In this Budget the Government appears to be supporting Gonski's recommendation in favour of maintaining the existing film agencies and existing level of funding, and not supporting the setting up of FLICs.
The decrease in the ABC's budget is largely a consequence of the 1996 Budget decision to reduce funding by $55 million in 1997-98 following the conclusion of the triennial agreement with the previous government. The sale or wind-up of Australia Television was also a decision of last year's Budget.
The January 1997 Mansfield Review of the ABC recommended revised funding and structural arrangements for ABC orchestras with the medium term goal of complete divestment. Under this budget measure, the ABC's base funding for orchestral services will be permanently transferred to a subsidiary company, Symphony Australia. The latter organisation is funded through Sub-program 1.3.
The additional funding for Radio Australia is to provide English language and Tok Pisin radio services through the Asia Pacific Region from 1 July 1977. These will be partly funded by reductions to the running costs of the National Transmission Agency (Sub-program 3.2) associated with the reduction in Radio Australia broadcasts, as well as reduced discretionary capital works by the same Agency.
The ABC Board has announced that 700 staff will be lost over the next year, with Radio National and Classic FM to share a $1 million funding cut. There will be reduced Radio Australia services and cancelled comedy, art and sport TV programs. However, there will be no cuts to news, current affairs, regional networks or Triple J. ABC Television in Sydney and Melbourne will lose 290 positions, while Radio Australia will be cut by 75 positions.
Since 1989, Australia Post has been required to operate as a Government Business Enterprise; this entails an obligation to operate commercially and efficiently so as to make a 'reasonable' return on assets while at the same time fulfilling specific Community Service Obligations (CSOs). These CSOs ensure that all Australians have reasonable and equitable access to a letter service which meets their postal needs. It involves delivering letters at a uniform price-currently 45 cents-from anywhere to everywhere in Australia, even when the delivery cost is higher than the price charged. According to Australia Post's 1995-96 Annual Report, the estimated cost of these CSOs is $72 million. At present, Australia Post does not receive any direct taxpayer support for undertaking this CSO; instead the Australian Postal Corporation Act 1989 reserves to Australia Post the delivery of domestic letters up to 250 grams. This reserved service arrangement assists Australia Post in bearing the costs of its CSOs while still delivering a commercial return on overall operations.
Since 1993-94, Australia Post has made substantial payments to its owners, the Commonwealth over and above its normal dividends. Between 1993-94 and 1995-96, it made capital repayments to the Government of $400 million; the Department of Communications and the Arts Portfolio Budget Statements 1997-98 show another $50 million estimated capital repayments for 1996-97. Normal dividend payments have also been significant: in 1994-95, dividend payments to the Commonwealth amounted to $120 million (some 50% of after tax operating profit), while in 1995-96 the corresponding figure was $143 million representing some 60% of after-tax operating profit.
In announcing the $80 million special dividend requirements to apply to Australia Post in both 1997-98 and 1998-99, the Minister for Communications and the Arts, Senator Alston stated that these payments will help to rebalance the significant build-up of retained profits over a number of years. The payments are also seen by the Government as a means of strengthening Australia Post's incentive to continue to improve its efficiency and to optimise its internal allocation of capital. At 30 June 1996, the Australian Postal Corporation's total equity amounted to $880.5 million, of which $462.2 million represented accumulated profits.
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