Louise Emmett, Leslie Nielson and Anita Talberg
Science, Technology, Environment and Resources
On 3 December 2007, Prime Minister Rudd signed the instrument of
ratification of the Kyoto Protocol. Supporting this commitment, the
Government s Climate Change strategy is built on three priorities:
reducing Australia's greenhouse gas emissions; adapting to those
impacts of climate change that we cannot avoid; and helping to
shape a global solution. Expenditure totals $2.3 billion over four
years with the majority of programs honouring election promises.
Expenditure breakdown under revenue and expense measures by
Department is available in Budget Paper No.2 pp. 105 107.
Budget commitments such as the renewable energy fund of $500
million and the
$90 million Green Building Fund have generally been well received,
although organisations such as the Climate Institute and the
Australian Conservation Foundation said the Federal Government
should have gone further by cutting tax subsidies for polluting
activities such as car use.[1]
The Opposition has claimed that spending on climate change
programs over the next two years has actually been reduced and that
no provision has been made for
the introduction of an emissions trading scheme.[2] In fact, the Budget makes
clear that money has been set aside for the implementation of such
a scheme, as explained shortly.
There has also been criticism of the delay in expenditure in
Climate Change programs which, it is claimed, will give the
impression that there is no need for immediate action.[3] For example, under the
Renewable Energy Fund less than half the funds will be spent by
2012. As well, critics have noted that funding for Clean Coal
technology is much larger than for renewables[4] and starts immediately even though,
they claim, the technique of carbon capture and storage remains
speculative. They also argue that this technology should be funded
by major polluters rather than by government.[5] Other commentators have noted that
while many departments have been cut, including Prime Minister and
Cabinet which loses 22 positions, the Department of Climate Change,
not surprisingly, increases by 140 to 250.[6]
Table 1 summarises expenditure under Tackling
Climate Change 2007 08 to 2011 12.
In Budget 2008 09, the Government has invested $21.8 million in
the establishment of the new Department of Climate
Change. The new department will coordinate the Government's
response to climate change, including development of an Emissions
Trading Scheme, increased activity following the ratification of
the Kyoto Protocol, and participation in ongoing international
climate change negotiations.
The Government will provide $68.8 million over five years to
design and implement a domestic emissions
trading scheme in Australia. Most such schemes are of the 'cap
and trade' variety in which the total emissions of a particular
area or set of industries are limited and the scheme participants
are issued with permits to emit certain quantities. Those
participants with emissions that are less than their permitted
amount can sell their unused permits to others. Those participants
emitting more than their permitted amounts must buy extra permits.
The European Unions' Emissions Trading Scheme is the most prominent
example of the cap and trade approach.
The Minister for Climate Change, the Hon. Penny Wong MP, has
stated that Australia will have a national cap and trade emissions
trading scheme starting in 2010. Such schemes are complex and
require careful design and planing. The above funds are necessary
to ensure that the design of an effective Australian emissions
trading scheme takes place
The Government will provide $2.3 million over two years to the
Garnaut Climate Change Review to examine the impacts of climate
change on the Australian economy. The review is due to report to
governments by 30 September 2008.
Sustainable Homes
The Government has provided funding for a series of programs to
help make Australian homes more environmentally sustainable. The
Government will provide $300 million over five years (including
$46.3 million in 2012 13) under the Green
Loans program to subsidise the provision of low interest loans,
of up to $10,000 per home, for the installation of green
technologies to improve water and energy efficiency including solar
hot water, insulation, rainwater tanks and grey water recycling.
Funding also covers refunds for home energy and water audits and
free 'green renovation packs'.
The Government will provide $7.9 million over four years for the
Hot Water
System Phase Out of inefficient hot water systems and the
development of nationally consistent greenhouse performance
standards for domestic hot water products. The cost of this measure
will be met by the Department of the Environment, Water, Heritage
and the Arts.
The Government will bring forward funding of $45 million from
2010 11 ($27.4 million) and 2011 12 ($17.7 million) to 2008 09
($25.6 million) and 2009 10 ($19.4 million) to meet the increased
demand for household rebates under the Solar
Homes and Communities Plan, formerly known as the Photovoltaic
Rebate Program. This provides for rebates of up to $8,000 for the
installation of solar power panels in homes and grants for up to
half the cost of a 2 kilowatt system for up to 400 community
buildings a year.
The Lower
Emission Plan for Renters program will provide $150 million
over five years (including $2 million in 2012 13) to provide
partial rebates to owners of private sector rental homes for the
cost of installing insulation.
To help Australians implement practical actions to save water
and reduce greenhouse emissions the Government will provide $3
million over three years to establish a One Stop
Green Shop. The aim of the initiative is to link schools,
businesses and families to all Commonwealth, State and local
government household energy, water and other resource efficiency
programs.
The Government will provide $14 million over four years to the
Energy
Efficiency of Electrical Appliances program. This measure
expands the current 6-star Energy Rating Label to a 10-star system
and introduces Greenhouse and Energy Minimum Standards.
Sustainable Communities
To encourage local communities to be more sustainable, the
Government will provide funding under four programs. An additional
$25 million will be provided over four years to extend the Solar
Cities program by three years. The Solar Cities program is
designed to trial alternative energy options in particular, solar
power. It is a partnership approach that involves all levels of
Government, the private sector and the local community. Solar
Cities consortia are working with industry, businesses and their
local communities to rethink the way they produce and use
energy.
The existing Solar Cities are Adelaide,
Townsville, Blacktown,
Alice Springs and Central
Victoria. During 2007 the ALP made an election commitment
to expand the Solar Cities program to include
Perth and Coburg.
The additional funding will provide $13.9 million to set up a
solar city in Perth and $4.9 million to do the same for Coburg,
Victoria. As new funding, $6.2 million will be provided under this
program to contribute to the new
$15 million Green Precincts program. (A further
$8.8 million from Water for the Future-National Water Security Plan
for Cities and Towns brings the total for Green Precincts to $15
million.)
Australian schools will receive assistance under the National
Solar Schools Program to install solar panels and for energy
and water efficiency improvements. The Government will provide
$480.6 million over eight years to provide grants of up to $50,000
to all Australian schools. Funding for this measure will be
provided in part from the redirection of funds from the Green
Vouchers for Schools program (See: Responsible Economic
Management-Green Vouchers for Schools in Budget Paper No. 2 p.
350). This measure will provide savings of $334.3 million over four
years to partially offset the Government s election commitment
National Solar Schools Plan. The Government will also provide
$250,000 in 2008 09 from the Department of the Environment, Water,
Heritage and the Arts for the installation of solar water heating
panels for the Deception
Bay Pool in Caboolture Shire, Queensland.
Clean Businesses
Four programs totalling $260 million are providing financial
assistance to businesses to implement energy efficiencies. Over
four years, $90 million will be provided under the Green
Building Fund to assist Australian business by subsidising 50
per cent of the cost of retro-fitting and retro-commissioning
existing commercial office buildings, up to a maximum of $200,000
per building. Priority is to be given to large buildings (over
5000m2) and funds will be awarded on a competitive basis.
Australian manufacturers will be assisted by $75 million over
four years under the Retooling
for Climate Change program to improve their production
processes, energy and water efficiency and to reduce their carbon
emissions. Up to a third of the cost of each project will be
provided through grants of between $10,000 and $500,000 to small
and medium-sized companies.
Under the Climate
Ready Program, $75 million is provided over
four years in a new competitive grants program to assist small and
medium enterprises to develop and bring to the market new products
that save energy and water and reduce pollution.
The Clean
Energy Innovation Centre is a sector specific centre of the
Enterprise Connect network- $20 million is
provided to assist small and medium businesses to improve services
in the clean energy sector.
Clean Energy
The Government will not proceed with the introduction of the
Clean Energy Target announced in the Mid-Year Economic and Fiscal
Outlook 2007 08. Instead, the original target (of 30,000
gigawatt-hours of electricity a year generated from low emissions
sources by 2020) will be replaced with the expanded Renewable
Energy Target of 45,000 gigawatt-hours of electricity a year from
renewable sources by 2020.
Under the Renewable
Energy Target Expansion program, the Government will provide
$15.5 million over five years for the Office of the Renewable
Energy Regulator to expand the current Mandatory Renewable Energy
Target to reach the level of 45,000 gigawatt-hours of electricity a
year to be generated from renewable energy sources by 2020. The
target is in addition to a baseline level of renewable energy
generation estimated to be around 16,000 gigawatt-hours annually.
The target will assist in the transition towards an Emissions
Trading Scheme and will be phased out between 2020 and 2030 as the
Emissions Trading Scheme matures.
The Government is developing the Emissions
Trading Scheme in cooperation with states and territories
through the Council of Australian Governments (COAG) Working Group
on Climate Change and Water. The Office of the Renewable Energy
Regulator will also work with the states and territories in order
to introduce a national approach to feed-in tariffs.
Under the Energy
Innovation Fund the Government will provide $150 million over
four years to support the development of clean energy technologies.
This includes $50 million for the Australian Solar Institute in
Newcastle, $50 million for photovoltaic research and development,
and $50 million for general clean energy research and
development.
Support of $500 million over eight years
will be provided for a National
Clean Coal Fund. Initiatives in this include:
- $50 million for a national carbon mapping and
infrastructure plan;
- $75 million for a National Clean Coal Research
Program;
- $50 million for a pilot coal gasification plant in
Queensland;
- $50 million to demonstrate carbon capture and
storage;
- $50 million for a large scale post combustion capture
plant in the Latrobe Valley in Victoria;
- $15 million to fund Australia's involvement in the
FutureGen Alliance; and
- $20 million for the Australia‑China Clean Coal
Co-ordination Group.
Provision of $499.7 million over seven years is made to
establish a Renewable
Energy Fund (including $101.0 million in 2012 13, $100.9
million in 2013 14 and $70.3 million in
2014 15). The Fund will provide grants, on a competitive basis, of
between $10 million and $75 million to develop, commercialise and
deploy renewable energy in Australia. This measure includes $15
million over four years for the Second Generation (Gen 2) Biofuels
Technology Research and Development program.
The Government will provide $500 million over five years from
2011 12 to establish a
Green Car
Innovation Fund for the development and manufacture of
low emission vehicles. A total of $2 billion in investment will be
generated through industry matching the Government's contribution
on a one-to-three dollar basis.
The Government will provide $150 million over three years
(including $0.4 million in capital funding in 2008 09) to the
Adaption to
Climate Change program, focusing on countries in
Australia's region where communities are at risk from the impacts
of climate change. Funding of $15 million in 2008-09 will be met
from within the existing resourcing of AusAID.
The Government will provide $0.2 million in 2000 09 to fund the
application of Climate Change Adaptation Strategies in the
Serpentine Jarrahdale Shire and the City of Mandurah, Western
Australia. This project will act as a pilot for other local
government areas across Australia looking for ways to deal with the
impact of climate change.
Farming
The Government will provide $60 million over four years under
the Climate
Change Adaptation Partnerships Program to assist farmers in
responding and adapting to the impacts of climate change, and
preparing for an emissions trading scheme. Provision of $55 million
over four years is made under the Climate
Change Adjustment Program to assist farmers to respond to
climate change through the provision of professional advice and
training grants. Re-establishment grants will also be available to
eligible farmers who choose to leave their farm and $10 million for
the Rural Financial Counselling Service.
Forestry
Funding totalling $20 million will be directed to five
priorities to assist in securing the future of Australia s forestry
industry: addressing forestry skills shortages; boosting the export
of forest products; building a forestry industry database;
addressing the importation of illegally logged timber; and
preparing forest industries for climate change.
The Forestry Adaptation Action Plan receives $8 million to
enable it to assess the capacity of forests to sequester
carbon.
Savings and Cancellations
In Budget Paper No.2, under the heading Responsible Economic
Management , the Government has listed the following redirection of
funding and savings. These include:
Asia-Pacific
Partnership on Clean Development and Climate.
The Government will not proceed with funding for the Asia-Pacific
Partnership on Clean Development and Climate program. The Budget
includes $0.2 million in capital savings in 2007 08 and savings
of
$50 million over four years Budget Paper No. 2 p. 341.
Green
Vouchers for Schools funding will be redirected to the new
National Solar Schools Plan savings of $334.3 million over four
years. Budget Paper No. 2 p. 350.
Greenhouse
Gas Abatement Program $4.2 million will be re-directed the new
Renewable Energy, Clean Business, Energy Innovation and
National Clean Coal Funds. The Government will also
reprofile $4.2 million in funding from 2007 08 into 2010 11 and
2011 12 ($2.1 million in each year), to align with the funding
requirements of the Australian Coal Mine Methane Reduction
Program, which is funded from the Greenhouse Gas Abatement
Program. This measure will provide savings of $4.2 million
over two years from 2008 09. Budget Paper No. 2 p. 351.
Asia-Pacific Network for Energy Technology The Government will
not proceed with funding announced in the Mid-Year Economic and
Fiscal Outlook 2007 08 providing savings of
$5 million. Budget Paper No. 2 p 380.
Low
Emissions Technology and Abatement program
funding is reduced provide savings of $2.2 million in 2007 08.
Budget Paper No. 2 p 401.
Low
Emissions Technology Demonstration Fund Savings of $90 million
over 12 years will be provided under this program through
reductions from 2007 08 to 2018 19. The Government will fund the
previously announced projects, but any new projects in this sector
will be funded through the National Clean Coal Fund or the
Renewable Energy Fund. .
Funds will also be moved across years to better reflect the
profile of expected expenditure in this program. $410 million over
12 years remains in the program to meet expected grant payments for
the six announced projects. Responsibility for the program has now
been transferred to the Department of Resources, Energy and
Tourism. Budget Paper No 2 p. 402.
Renewable
Remote Power Generation Program funding will be reduced in 2007
08 and 2008 09. providing savings of $42 million. Budget Paper No.
2 p. 420.
Sustainable
Regions Program Offsetting savings of $23.3 million over two
years will by redirected from the Sustainable Regions program.
Funding for the program was scheduled to cease in 2008 09. Budget
Paper No. 2 p. 422.
Table 1. Tackling Climate
Change
|
Program
|
2007
08
($m)
|
2008
09
($m)
|
2009
10
($m)
|
2010
11
($m)
|
2011
12
($m)
|
Total
($m)
|
|
Adaptation to Climate
Change
|
0
|
20.7
|
49.4
|
65.0
|
0
|
135.1
|
|
Australia s Farming Future
Climate Change Adaptation Partnerships Program
|
0
|
15.0
|
15.0
|
15.0
|
15.0
|
60.0
|
|
Australia s Farming Future
Climate Change Adjustment Program
|
0
|
15.0
|
15.0
|
15.0
|
10.0
|
55.0
|
|
Climate change adaptation
strategies for the Serpentine Jarrahdale Shire and the City of
Mandurah (Peel-Kwinana Growth Corridor), Western Australia
contribution
|
0
|
0.2
|
0
|
0
|
0
|
0.2
|
|
Climate Change and
Productivity Research Program
|
0
|
6.0
|
5.0
|
4.0
|
0
|
15.0
|
|
Clean Business Australia
Climate Ready Program
|
0
|
13.1
|
22.6
|
23.8
|
15.5
|
75
|
|
Clean Business Australia
Green Building Fund
|
0
|
22.5
|
37.5
|
15.0
|
15.0
|
90.0
|
|
Clean Business Australia
Retooling for Climate Change
|
0
|
10.9
|
21.8
|
24.5
|
17.8
|
75.0
|
|
Deception Bay Pool
contribution
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Department of Climate
Change establishment
|
0
|
5.5
|
5.4
|
5.4
|
5.5
|
21.8
|
|
Emissions Trading Scheme
design and implementation
|
12.4
|
16.0
|
15.6
|
15.5
|
9.4
|
68.9
|
|
Energy Efficiency of
Electrical Appliances
|
0
|
2.0
|
4.1
|
4.0
|
3.9
|
14.0
|
|
Energy Innovation Fund
|
0
|
40.9
|
51.2
|
36.3
|
21.7
|
150.1
|
|
Green Car Innovation
Fund
|
0
|
0
|
0
|
0
|
100.0
|
100.0
|
|
Green Loans
|
0
|
17.4
|
60.2
|
88.1
|
87.9
|
253.6
|
|
Hot Water System phase out
development and implementation
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Low Emission Plan for
Renters establishment
|
0
|
10.5
|
37.5
|
50.0
|
50.0
|
148
|
|
National Clean Coal
Fund
|
15.0
|
34.8
|
108.6
|
124.5
|
97.8
|
380.7
|
|
National Solar Schools
Plan
|
9.0
|
74.6
|
119.7
|
107.2
|
50.8
|
361.3
|
|
One Stop Green Shop
establishment
|
0
|
1.0
|
1.0
|
1.0
|
0
|
3
|
|
Renewable Energy Fund
|
0
|
0
|
55.5
|
71.0
|
101.0
|
227.5
|
|
Renewable Energy Target
expansion
|
1.3
|
5.7
|
8.4
|
8.7
|
10
|
34.1
|
|
Solar Cities and Green
Precincts
|
1.0
|
8.0
|
8.0
|
8.0
|
0
|
25
|
|
Solar Homes and
Communities Plan
|
0
|
25.6
|
19.4
|
-27.4
|
-17.7
|
-0.1
|
|
Garnaut Climate Change
Review contribution
|
1.6
|
0.7
|
0
|
0
|
0
|
2.3
|
|
Preparing Australia s
Forestry Industry for the Future
|
0
|
5.9
|
6.9
|
7.2
|
0
|
20.0
|
|
Climate Change and
Forestry Adaptation Action Plan
|
$8.0 million over three
years unprofiled
|
8.0
|
|
Clean Energy Innovation
Centre
|
$20 million over four
years unprofiled
|
20.0
|
|
TOTAL
|
$68.30
|
$380.0
|
$695.8
|
$689.8
|
$621.60
|
2343.5
|
Source: Budget Paper No.2, pages 108 119.
Back to top
Louise
Emmett
Science, Technology, Environment and Resources Section
The
Caring for our Country Program was announced on 14
March 2008 in a joint media release by the Hon Peter Garrett MP,
Minister for the Environment, Heritage and the Arts and the Hon
Tony Burke MP, Minister for Agriculture, Fisheries and Forestry.
The program will deliver an integrated approach with $2.25 billion
over five years to restore Australia s environment and build on
improved land management. The new program covers four previously
existing programs: the National Heritage Trust, the National
Landcare Program, the Environmental Stewardship Program and the
Working on Country program. Regional bodies are guaranteed only 60
per cent of historical average funding under this new program.
The Shadow Minister for Environment, Heritage, the Arts and
Indigenous Affairs, Dr Sharman Stone has criticised the cuts in
funding saying that the total catchment and regional focus will
contract back to a piecemeal approach.[7]
In February 2008, the Auditor General found that the information
reported on the Natural Heritage Trust was insufficient to make an
informed judgement as to the progress of the programs towards
outcomes. The Auditor General found that there was little evidence
as yet that the programs are adequately achieving the anticipated
national outcomes or giving sufficient attention to the radically
altered and degraded Australian landscape highlighted in the 1996
Australia State of the Environment Report.[8] He found that achievement of some
outcomes would be a long term process potentially over two hundred
years at current progress.[9]
Table 1 Expenditure for this
measure
|
Program
|
2007
08
($m)
|
2008
09
($m)
|
2009
10
($m)
|
2010
11
($m)
|
2011
12
($m)
|
2012
13
($m)
|
Total
($m)
|
|
Caring for our Country
|
0
|
428.2
|
440.1
|
465.7
|
453.5
|
459.3
|
2246.8
|
Source: Derived from data
in Australian Government, Part 2 Expense Measures , Budget
Paper No. 2:Budget Measures 2008 09, Commonwealth of
Australia, Canberra 2008, p. 163.
Six national priorities are
covered by the new program:
-
Australia s national reserve system
-
Biodiversity and natural icons (including weeds, feral animals and
threatened species)
- Coasts
and aquatic habitats
-
Sustainable farm practices and Landcare
-
Natural resource management in remote and northern Australia
and
-
Community skills, knowledge and engagement.
Caring for our Country is targeted to:
- rescue
the Great Barrier Reef ($200 million over five years) and the
endangered
Tasmanian Devil ($10 million over five years)
-
protect and repair Australia s fragile coastal ecosystems ($100
million over five years)
-
improve water quality in the Gippsland Lakes ($5.3 million over
three years)
- fight
the Cane Toad menace ($2 million over two years)
-
implement the Tuggerah Lakes Estuary Management Plan ($20 million
over five years)
- employ
additional Indigenous Rangers ($90 million over five years)
- expand
the Indigenous Protected Areas network ($50 million over five
years) and
- assist
Indigenous Australians enter the carbon trading market ($10 million
over five years).
This measure will provide savings
of $15 million in 2008 09 and $13 million in 2009 10 from the
amalgamation of previous programs, and will provide additional
funding of $7 million in 2011 12 and $12 million in 2012 13
for the program. Net savings of $9 million have been identified
over the five years from 2008 09 to 2012 13 (see Table 2).
Provision for Caring for our
Country was included in the forward estimates under the
existing Natural Heritage Trust, National Landcare Program,
Environmental Stewardship Program and Working on Country
program.
Table 2 Expense ($m)
|
Program
|
2007
08
($m)
|
2008
09
($m)
|
2009
10
($m)
|
2010
11
($m)
|
2011
12
($m)
|
Total
($m)
|
|
Caring for our Country
|
0
|
-15.0
|
-13.0
|
0
|
7.0
|
- 21.0
|
Source: Australian
Government, Part 2 Expense Measures , Budget Paper No. 2:Budget
Measures 2008 09, Commonwealth of Australia, Canberra 2008, p.
163
Back to top
Louise Emmett
& Anita Talberg
Science, Technology, Environment and Resources Section
The Government s $12.9 billion 10-year water plan identifies
securing water supplies and taking early action on the
Murray-Darling as key priorities (see Tables 1 and 2).
The
Water for the Future Program was announced at the
4th Annual Australian Water Summit, Sydney Convention
and Exhibition Centre, 29 30 April 2008. Water for the
Future identifies four key priorities: taking action on
climate change, using water wisely, securing water supplies and
supporting healthy rivers.
As
part of this funding, the 2008/09 Budget will provide:
- $1 billion for the National Urban Water and Desalination
Plan
- $250 million for the National Water Security Plan for Cities
and Towns and
- $250 million for the National Rainwater and Greywater
Initiative.
Outlays on these programs will be low at first the National
Urban Water and Desalination Plan will start with just $14 million
next year and then grow to a total of
$808 million over the four budget years. (It will reach one billion
two years after that.) Likewise there will be a slow start on the
National Rainwater and Greywater Initiative, with just $19 million
to be spent next year and $176 million over the four years. Savings
and redirection of funds include the reprofiling[10] of $45 million for the
Murray-Darling (Table 2), deferral of $5 million from 2007 08 to
2016 17 for the Bureau of Meteorology (Table 3), the cessation of
funding from 2008 09 for the Community Water Grants program worth
$74 million over four years (Table 4), and rainfall enhancement
technology.[11]
Critics have commented on the subsidisation of state desalination
plants[12] and have
asked for more detail and further funding for infrastructure,
particularly for irrigation.[13]
National Urban Water and Desalination Plan
In towns or cities with more than 50,000 inhabitants,
desalination, water recycling and stormwater harvesting will be
encouraged by the provision of $1.0 billion over
six years (including $192 million in 2012 13). The funds will be
provided through grants and refundable tax offsets of up to 10 per
cent of project costs, capped at a maximum of
$100 million per project.
This measure includes funding for a Centre of Excellence in
desalination technology in Perth ($20 million), a Centre of
Excellence in water recycling in Brisbane ($20 million), the
Glenelg to Adelaide water recycling project ($30.2 million) and the
Geelong Shell water recycling project ($20 million).
National Water Security Plan for Cities and Towns
The program will provide $254.8 million over five years for
governments and local water authorities to minimise water loss,
invest in more efficient water infrastructure, refurbish older
pipes and water systems, and fund practical projects to save
water.
National Rainwater and Greywater Initiative
This initiative will provide $250 million over six years
(including $50 million in 2012 13 and $24 million in 2013 14) to
provide rebates of up to $500 for up to 500,000 homes towards the
cost of installing rainwater tanks or new piping for greywater use.
Funding of $3 million will also be made available in 2008 09 to
provide up to $10,000 to every surf life saving club in Australia
for the installation of a rainwater tank, or as a contribution
towards a larger water saving project.
Murray-Darling Taking early action
The Murray-Darling Basin is seen as a major priority in this
year s Budget. The Government will bring forward $400 million in
funding to take urgent action in the
Murray-Darling Basin through water efficiency measures in
irrigation systems and increasing funds available to purchase water
for environmental flows. The $400 million is part of the
Government's
$12.9 billion Water for the Future program and includes
$177.2 million for water buybacks and $222.8 million for urgent
infrastructure projects. In the Water for the Future
statement on 29 30 April 2008, the Government has announced that it
will invest at least $3 billion in restoring the balance in the
Murray Darling Basin. The Government intends to purchase water to
put back in the rivers.
Water Efficiency Western Australia
The Government will bring forward $35 million to 2007 08 (from
2011 12) to make an initial contribution to the Harvey Water Piping
Project in Western Australia. The remaining contribution of $14
million is expected to be provided in 2008 09, from within existing
funding for the Program.
Table 1 Expenditure for Water for
the Future
|
Program
|
2007
08
($m)
|
2008
09
($m)
|
2009
10
($m)
|
2010
11
($m)
|
2011
12
($m)
|
Total
($m)
|
|
National Rainwater and
Greywater Initiative
|
0
|
19.0
|
38.0
|
59.0
|
60.0
|
176
|
|
National Urban Water and
Desalination Plan
|
0
|
14.0
|
158.0
|
244.0
|
392.0
|
808
|
|
National Water Security
Plan for Cities and Towns
|
10.0
|
39.8
|
55.0
|
75.0
|
75.0
|
254.8
|
|
Taking early action
|
96.2
|
110.0
|
193.8
|
0
|
-400
|
0.0
|
|
Water efficiency Western
Australia
|
35.0
|
0
|
0
|
0
|
-35.0
|
0.0
|
|
TOTAL
|
141.2
|
182.8
|
444.8
|
378
|
92
|
1238.8
|
Source: Australian
Government, Part 2 Expense Measures , Budget Paper No. 2:Budget
Measures 2008 09, Commonwealth of Australia, Canberra
2008, p 159 161.
In Budget Paper No.2, under the heading Responsible Economic
Management , the Government has listed the following redirections
of funding and savings:
Murray-Darling
The Government will re-profile[14] $45 million in funding from 2007 08 to 2016 17,
and
$26 million in funding from 2008 09 to 2015 16, to reflect the
expected changes to expenditure arising from delays in establishing
the Murray-Darling Basin Authority. The new Authority was
originally scheduled to be established in 2007 08, but will now be
established in 2008 09. The final arrangements for bringing
together the Authority and the Murray-Darling Basin Commission will
be considered by COAG in July 2008.
Table 2 Expense ($m)
|
Program
|
2007
08
($m)
|
2008
09
($m)
|
2009
10
($m)
|
2010
11
($m)
|
2011
12
($m)
|
Total
($m)
|
|
Murray Darling Basin
Authority
|
-45.0
|
-26.0
|
0
|
0
|
0
|
-71.0
|
Source: Australian
Government, Part 2 Expense Measures , Budget Paper No. 2:Budget
Measures 2008 09, Commonwealth of Australia, Canberra
2008, p. 426
Bureau of Meteorology
From 2007 08 to 2016 17, $5 million from previously committed
funding will be deferred to reflect the change in expenditure
arising from delays in the Bureau of Meteorology establishing its
water functions under the Water Act 2007. The Bureau was
scheduled to receive a $28.8 million (including $5.1 million in
capital) increase in funding in 2007 08 to meet the Government s
commitments on water. Implementation delays have reduced the
necessary amount by $5 million.
Table 3 Expense ($m)
|
Program
|
2007
08
($m)
|
2008
09
($m)
|
2009
10
($m)
|
2010
11
($m)
|
2011
12
($m)
|
Total
($m)
|
|
Bureau of Meteorology
|
-5.0
|
0
|
0
|
0
|
0
|
-5.0
|
Community Water Grants
Funding for the Community Water Grants program will
cease from 2008 09 resulting in savings of $73.6 million over four
years. New measures, such as the National Rainwater and
Greywater Initiative, and Green Loans will help
households with water-saving and energy- saving projects.
Table 4 Expense ($m)
|
Program
|
2007
08
($m)
|
2008
09
($m)
|
2009
10
($m)
|
2010
11
($m)
|
2011
12
($m)
|
Total
($m)
|
|
Community Water Grants
|
0.0
|
-41.5
|
-26.5
|
-1.9
|
-3.7
|
-73.6
|
Source: Australian
Government, Part 2 Expense Measures , Budget Paper No. 2:Budget
Measures 2008 09, Commonwealth of Australia, Canberra 2008
p. 382
Back to top
Nilufar
Jahan
Economics Section
Economic viability and competitiveness are major concerns for
agricultural producers in Australia. This paper outlines the
measures proposed in the 2008 09 Budget intended to guide
Australian agriculture to meet future challenges.[15] See Appendix A for discussion on
these challenges.
Measures to assist farmers to adopt and mitigate the effect of
climate changes
The government will provide $130 million over four years to the
Australia s Farming Future initiative to facilitate farmers in
adapting and mitigating the effect of climate change.[16] The initiative aims to
deliver three programs:
- Climate Change Adaptation Partnership Program ($60 million over
four years) this program will develop practical demonstrations to
improve the sector s response to climate change
- Climate Change and Productivity Research Program ($15 million
over four years) this program will finance research on managing
emissions and adaptation, and
- Climate Change Adjustment Program ($55 million over four years)
this program intends to provide professional advice, training and
re-establishment grants to primary producers.
The government has also allocated a further $69 million,
including around $31 million in additional funding for designing
and implementing an environmentally effective and economically
responsible greenhouse gas emissions trading scheme.
Another $20 million has been provided over four years for forest
industries on climate change adaptation, boosting exports and to
address industry specific issues.
Transitional Income Support Program
The Budget also introduces a Transitional Income Support Program
that is expected to commence on 16 June 2008 and would continue
until 30 June 2009 at an estimated cost of $14.5 million over three
years.[17] This
income support is designed to support farm families who are in
financial difficulty and to assist those who are considering
leaving agricultural farming anticipating that farmers may consider
changing to other businesses. This Transitional Income Support
Program will complement the $5500 Climate Change Adjustment Program
Advice and Training Grant.
Regional Food Producers Innovation and Productivity
Program
The government announced a new $35 million Regional Food
Producers Innovation and Productivity Program, to assist Australia
s regional food producers in becoming more competitive through
productivity and innovation improvements. In response to a growing
global food crisis, the Budget attempts to meet the challenging
future by assisting Australian agriculture to be more competitive
in terms of innovation. The Budget also provides more than $168
million to the Commonwealth s rural research and development
corporations and a further $15 million for the National Weeds and
Productivity Research Program for farm productivity.
The forestry value adding industries are expected to be provided
with $9 million to continue their investment programs. The
government will provide an additional $4.4 million over the next
three years for the Fisheries Research Program, with $1.9 million
invested in 2008 09.
The government, in partnership with industry, will develop new
technologies, processing or production methods and boost export
market development. Regionally based food processors will receive
assistance that includes dollar-for-dollar grants and support to
help the processed food industry become globally competitive.
Appendix A: Future Challenges
The Budget proposal may be viewed against the following
background of the challenges to be faced in the future:
- Productivity growth in Australia s broadacre (1.5 per cent per
annum) and dairy industries (1.2 per cent per annum) is highly
variable on a year-to-year basis[18]
- Globally, agricultural commodity prices started rising in 2006
and the trend continued in 2007 and 2008. The surge in prices has
been led primarily by dairy and grains, but prices of other
commodities, with the exception of sugar, have also increased
significantly.[19]
High price events, like low price events, are very usual in
agricultural markets, but what distinguishes the current rise is
rather the concurrence of the hike in all over the world
prices
- Further, the Australian Bureau of Agriculture and Resource
Economics (ABARE) reported that due to future climate changes,
production could decline by 2 to 6 per cent by 2030 and by 5 to 11
per cent by 2050, relative to 2006 output.[20] These forecasted changes are expected
to have significant implication for key agricultural trade and
rural Australia. The most recent drought in 2006 still continues to
affect large parts of rural Australia, and some farmers may be
relying on Exceptional Circumstances assistance to keep afloat,
and
- International prices of cereal have risen, fuelling domestic
food price inflation in many parts of the world, including
Australia.
These facts show that Australia s agricultural sector faces a
number of pressures and challenges, including climate variability,
declining terms of trade, rising fuel prices, appreciating
Australian dollar and increasing international competition.
Continual empirical research which links primary producers,
researchers and policy makers is required if Australia is to remain
internationally competitive in this sector. The $35 million
Regional Food Producers Innovation and Productivity Program will
assist in this regard by emphasing the related process of
industrialisation, product differentiation and increased vertical
integration in agriculture.
Back to top
Matthew
James
Science Technology Environment and Resources Section
Introduction
Scientists do not seem to have done very well out of the Budget.
The word science does not appear in the Budget speech, although
innovation does in an emphasis on wider issues. While science
agencies face tighter times, there have been a few new programs
announced to favour those organisations that may have previously
faced budget restrictions. The Commonwealth Scientific and
Industrial Research Organisation (CSIRO) and the Australian Nuclear
Science and Technology Organisation (ANSTO) see a modest reduction
in their allocations, but there is a separate new program to retain
mid-career scientists in Australia through the Australian Research
Council (ARC).
According to the
2008 09 Science and Innovation Budget Tables, Australian
Government support for the sector through the budget and other
appropriations has risen from $6203 million in 2007 2008 to $6371
million in 2008 2009, but drops as a percentage of total government
expenditure from 2.63 to 2.56 per cent. In January, the Minister
for Innovation, Industry, Science and Research,
Senator Kim Carr, announced a wide ranging review of Australia's national
innovation system. The Review is being conducted by an Expert
Panel.
In its response to the Budget, the Australian Academy
of Science says that:
There must also be intellectual infrastructure
developed so that we are equipped to produce the new technologies
required by future generations. The Education Fund of $11 billion
has the potential to provide that in part, but only if the other
research and development sectors such as CSIRO, Geoscience
Australia, ANSTO etc. are kept strong.[21]
The
Federation of Australian Scientific and Technological Societies
(FASTS) states that:
A few days ago the Prime Minister said, to
boost our global economic competitiveness we must simultaneously
boost long-term productivity growth. That is our central narrative
on the economy. But no narrative on long-term productivity growth
is credible without reinvigorated policy and funding in higher
education, research, knowledge transfer and science and mathematics
teaching at all levels.[22]
Science Agency Funding
CSIRO funding is set to change from $663.160 million in 2007
2009 to $675.790 million in 2008 20009, a rise of just 1.9 per cent
and below the CPI. Under the budget measure of Responsible Economic
Management , the agency receives a cut of $9.486 million in 2008
2009 followed by similar amounts over the next three years, to
total $39.813 million over the full period.[23] With external income, the total CSIRO
budget will rise 16.1 per cent from $1030.1 million to $1196.3
million in 2008 2009. Also affected with cuts are the Healthy
Active Australia program ($1.2 million) and the Research Vessel
Southern Surveyor ($3 million). CSIRO staffing will drop from 5700
to an estimated 5615 in the year ahead. If combined with $23.6
million under the increased efficiency dividend, CSIRO faces a loss
of $63 million over the next four years.
The CSIRO National Research
Flagships program is to continue to expand, although no
specifics are stated in the Budget. A further thrust is building
major partnerships through targeted partnering, alliances and
ventures, along with developing science hubs through co-locations.
CSIRO remains involved in several American legal proceedings
concerning wireless technology licensing and the Budget statements
says that the revenue and costs concerned are considered
unquantifiable.
Annual appropriations for ANSTO fall from $185.714 million in
2007 2008 to $174.715 million, but cash reserves increase net
resourcing by almost 46 per cent. ANSTO loses $7.315 million under
Responsible Economic Management and a further $11.3 million of the
former Nuclear Collaborative Research Program.[24] Shortly after the Budget, ANSTO
announced a restructure and the confirmed loss of around 80 staff
in the future.[25]
Perhaps not coincidentally, but on the day of the Budget,
ANSTO announced the re-commissioning start of the new OPAL
research reactor, following a ten-month long unexpected shut down.
ANSTO attributes the embarrassing problem to a combination of
factors including inadequate design and fuel manufacturing
techniques.
Establishment of the Future-Fellowships scheme sees an initial
budget measure provision of $10.7 million, set to substantially
rise in the subsequent three years to reach in total $326.207
million over the full period.[26] At the same time, the new government has acted to
cancel the Research Quality Framework management program and
redirect funds to an Excellence
in Research Australia (ERA) initiative. The Australian
Government
announced on 21 December 2007 that it would not be proceeding
with the former Government s Research Quality Framework (RQF)
project. The RQF aimed to rate all publicly funded research
institutions and award block grants according to a new formula. The
ERA initiative will assess research quality using a combination of
metrics and expert review by committees comprising experienced,
internationally-recognised experts. ARC programs see a slight
budget rise.
There is also an allocation of $209 million over four years to
double the number of Australian Postgraduate Awards for PhD or
Masters by Research students. However, there is no increase in the
value of scholarships for students, despite
claims that the support level is set too low.[27]
The CRC resource budget rises from $126.755 million in 2007 2008
to $182.782 million in 2008 2009. However, in the previous Budget
the expected 2007 2008 estimate was $212.288 million, indicating
that the allocation was seriously underspent in this past
year.[28]
The intellectual property protection agency sees a healthy 9.8
per cent increase in funding from $5.638 million to $6.191 million
which, when combined with special accounts, sees total net
resourcing rise from $213.079 million to $245.432 million in 2008
2009.[29] Staff
numbers at IPA should rise from 910 to 968 during the financial
year ahead.
AIMS has obtained a significant contract with a future income
stream for a study of marine eco-systems in northwest Australia,
that will increase its revenue, staff numbers and expenditures. Its
appropriation from government will increase from $26.6 million to
$27.7 million in the year ahead but, despite that, its total
funding falls from $30 million to $27.7 million because of
reduction in other income sources.[30]
GA s budget for 2008 2009 will decrease by $10.1 million to
$166.4 million, mainly owing to decreased funding from prior year
budget measures, i.e. pre-competitive data and petroleum promotion
$3.1 million; carbon capture and storage (CCS) $0.4 million; and a
decrease in Section 31 receipts of $3.8 million.[31] The agency s role in CCS was
outlined in the 2007 2008 Budget, when $9.3 million was provided
over four years to implement a national regulatory and legislative
framework for CCS, and for regulatory oversight.[32]
Back to top
Rosemary
Polya
Science, Technology, Environment and Resources Section
Introduction
Overall, health research funding increased by $123 million in
the Budget. At the same time, there was little attention paid in
the Budget to novel sciences of emerging importance to food
production and health, namely nanotechnology, biotechnology and
gene technology. Indeed, there were cuts made to some areas, such
as the cancellation of the National Nanotechnology Strategy and the
scheduled closure of the Australian Office of Nanotechnology in
June 2009. The novel sciences will be catered for, in part, within
various departmental programs, CSIRO and research grants schemes.
For example, the Office of the Gene Technology Regulator comes
under the Department of Health and Ageing portfolio. See the
science funding section for more detail.
Matters related to food security also attracted the Rudd
Government s attention. There will be new funding allocated for
weeds research and a fruit fly strategy. The alcopops excise for
ready to drink beverages containing spirits carries the intention
to reduce health problems associated with binge drinking. See the
health and tax reform sections of this brief for further discussion
of the alcopops tax.
NHMRC
The Budget increased the
National Health and Medical Research Council s administered
appropriation for research by $123 million in the last financial
year to $617 million. Additionally, there is $3.8 million
non-research funding allocated for The National Institute of
Clinical Studies. The government s efficiency dividend of $1.147
million will not result in staff redundancies. [33]
Activities during 2008 09 will include the establishment of a
permit system for the import and export of human embryonic stem
cell lines developed from human embryo clones. This will be a
cooperative project with the Australian Customs Service. Measures
that demonstrate the benefits of health research to society will
also be developed and ethics assessment in multi-centre research
facilities will be harmonised.
The National Nanotechnology Strategy
The
National Nanotechnology Strategy, established by the Howard
Government in July 2007, will cease on 30 June 2009. This will save
the government $11.7 million.[34]
Australian trade unions have expressed concerns about the
safety of items produced by nanotechnology. [35] The OECD recently
reported on risks arising from nanoparticles, which are superfine
particles, the largest being a billionth of a metre wide. [36] Nanoparticles are used
in various foods, packaging, health products, cosmetic preparations
and other consumer goods with little or no regulatory oversight.
Under the National Nanotechnology Strategy, a
Health, Safety and Environmental (HSE) Working Group was to be
set up so as to coordinate regulatory issues relating to
nanotechnology. [37] With the demise of the strategy, it is yet to be
established how such functions will be managed by the government. A
Friends of the Earth (FoE) report recommended the oversight of
health and environmental aspects of nanotechnologies.[38] In March 2008 it was
reported that the Minister for Innovation, Industry, Science and
Research,
Kim Carr, had undertaken to develop a regulatory framework for
nanotechnology. [39]
The Shadow Minister for Innovation, Industry, Science and
Research, Eric Abetz, protested about the end of the strategy, in a
January 2008 press release
Labor slashes nanotechnology research .[40]
There have also been concerns expressed by scientists about the
cancellation of the nanotechnology strategy.
Mike Ford, associate director of the University of Technology
Sydney's Institute for Nanoscale Technology, said the decision
could leave Australia out of the game on nanotechnology compared to
the US, Europe and Japan.[41]
Biotechnology
The
National Biotechnology Strategy, which was established in July
2000, was funded by the Howard Government until 2007 08. No further
funding has been identified for the strategy in the Portfolio
Budget Statements 2008 09 for the Department of Innovation,
Industry, Science and Research. [42] In July 2004, $20 million was provided for both
the strategy and Biotechnology Australia up to and including 2007
08. The peak biotechnology body,
AusBiotech, argues in its submission to the current National
Innovation System Review:
the national coordinating biotechnology agency
should be strengthened to give it decision-making responsibilities,
its own budget and dedicated, senior staff. As well as providing a
coherent policy framework across government, this would also ensure
that government funding programs are channeled appropriately
through to the industry.[43]
An evaluation of both the strategy and of Biotechnology
Australia is awaiting government consideration.
The green paper arising from the review is not due for
completion until July 2008. [44] The white paper arising from the review is due in
October 2008 and an industry spokesperson from
AusBiotech stated in response to the Budget that the paper
would inform the government s direction on innovation for the 2009
10 Budget and that AusBiotech was disappointed with the government
s decision to discontinue the Commercial Ready and Commercial Ready
Plus programs .[45]
There remains, however, provision for biotechnology related matters
in programs in the Department and other portfolios.
Funding for the National Stem Cell Centre was allocated up to
2010 11 by the Howard Government. The Rudd Government s total
estimate of available resources for the Centre in 2008 09 is $226
774 compared to $240 797 in 2007 08. The anticipated target for
activity for the Centre is that it undertakes five commercial
agreements, including Centre-owned intellectual property.
Food
The
alcopops excise measure, Excise and customs duty
increased rates on other excisable beverages , was introduced
from 27 April 2008. [46] By applying the same excise as spirits, that is, $66.67
per litre of alcohol content, the government anticipates $3.1
billion will be raised for preventative health investments. The
states are estimated to gain $281.5 million from GST payments.
However, similar drinks
containing wine have not attracted budgetary attention.[47] The measure has proved
controversial, with some people asserting that it is primarily a
revenue-raising device. On the other hand, Health Minister Roxon
has argued the excise is part of the government s strategy to
tackle harm caused by excessive alcohol consumption. It remains to
be seen whether legislation supporting this measure will be passed,
given that the
Opposition Leader Dr Nelson has vowed to block it. [48]
The alcopops increase in excise is
but one strategy being examined to remedy concerns about youth
drinking.[49] For
example, the
Health Ministers resolved on 2 May 2008 to ask FSANZ to
consider the provision of warning labels on packaged alcohol,
mindful of new alcohol guidelines to be issued by the National
Health and Medical Research Council. FSANZ has carriage for
developing food standards, alcohol being regulated as a food in the
Australia New Zealand
Food Standards Code.[50],[51] COAG will
receive a response in December 2008. In 2000, FSANZ rejected an
application, A359, for warning labels to be mandatory on
alcohol products on grounds that actions already in place, namely,
controlling prices, advertising and availability, were effective
and that Australian alcohol mortality rates were decreasing in the
1990s. The Senate Standing Committee on Community Affairs is
currently examining the Family First Bill,
The Alcohol Toll Reduction Bill 2007.[52]
FSANZ will be resourced at $26.2 million in 2008 09. Its Science
Strategy 2006 09 will continue to review risk assessment processes
and collection of data. Its average staffing complement will remain
the same.
Weeds and Food Security
The Shadow Minister for Environment, Heritage, the Arts and
Indigenous Affairs recently asked in a press release
Got any money for weeds man? The Budget answered with $15.3
million allocated to address this problem.[53] This funding consists of $0.3 million
for fireweed research over two years and $15 million over four
years for general weed reduction within the new National Weeds
and Productivity Research Program measure. The fireweed
research funding was found by cancelling the Defeating the Weed
Menace program which had this same amount allocated to it for
2007 08. Now these monies will be spread over two years for the new
program.
The Rudd Government was fulfilling
an election promise against a backdrop of the CRC of Australian
Weed Management failing to secure funding from the Howard
Government in 2006 to continue to secure its operations after June
2008. [54],[55] The CRC will close,
the Rudd Government preferring to establish a new nationwide
program. It has been estimated that weeds cost Australia $4 billion
each year, much of this comes from their effect on agricultural
productivity and hence Australia s food security.
Biosecurity and Food Security
The Quarantine
Research and Preparedness Plan provides $5.4 million over four
years for activities such as a model for on-farm biosecurity
planning, enhancement of diagnostic capabilities for plant pests
and diseases, and plans for dealing with pests, diseases and
contaminants in agriculture, fisheries and forestry.[56] The plan also includes
funds for the establishment of a national fruit fly strategy. There
is, however, no mention of any provision in the Budget for funding
dung beetle research and thereby help to control bush fly
populations.
Some dung beetle funding has been provided in the past by the
Commonwealth under the Natural Heritage Trust and the National
Landcare Program. The current drought, however, has reduced dung
beetle populations, thereby increasing bush fly numbers. A 1990s
analysis calculated that for every dollar spent on dung beetle
programs
$112 was saved through production that would otherwise have
been lost. Bush flies can be a significant problem for
agriculture.[57]
There is also a
link between bush flies and trachoma in Aboriginal
children.[58]
Budgeting for a National Fruit Fly Strategy is
particularly welcome this year, as Victoria has suffered the
highest recorded number of fruit fly incursions. There are
fears that Victoria could lose its fruit fly-free status and
this could curtail Australian trade in Asian markets. [59] A
draft National Fruit Fly Strategy was prepared by
Plant Health Australia, an industry-government consortium, in 2007
and is awaiting consideration by the Primary Industries Ministerial
Council. [60] Their national
committee for the fruit fly strategy project finalised its
recommendations in December 2007. [61] The Commonwealth s Office of the
Chief Plant Protection Officer
stock-take had estimated that from 2003 08
$128 million had been spent on fruit fly-related activities and
projects. [62],[63]
This figure did not include costs incurred by farmers. The
committee was mindful of the influence of climate change on fruit
fly populations and the likelihood that two important post-harvest
disinfestation treatments fenthion
and dimethoate
would no longer be used. Both are currently being reviewed by the
Australian Pesticides and Veterinary Medicines Authority (APVMA)
under their Existing Chemicals Review Program to address safety
concerns where used in food-producing applications.[64],[65] The national fruit fly
strategy committee, chaired by Professor Nairn, had recommended
that a further $5 million per year be spent and that this was
shared equally by the Commonwealth, state governments and industry.
This
spending will be in addition to the estimated $25
million spent by governments and industry on fruit fly projects
per year. [66],[67]
Under
the
Securing the future: protecting our industries from biological,
chemical and physical risks continuation measure $4.9
million has been allocated for 2008 09 only. [68] The 2007
08 budget estimate was $2.97 million. The measure pertains to both
entry point quarantine control and post border control. The purpose
is to to minimise the costs to industry and governments caused by
established pests and disease incursions . The funding covers a
member contribution to Plant Health Australia, national
preparedness, intelligence gathering and to improve responses to
risks. Findings by the Australia s Quarantine and
Biosecurity Review panel which must report to the Minister of
Agriculture Fisheries and Forestry by 30 September 2008 may
influence next year s funding for this important area. [69]
[9]. ibid., p.
20.
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