Gary Nairn (Eden-Monaro, Liberal Party, Special Minister of State) Share this | Hansard source

I am pleased to bring what has been a lively debate on Appropriation Bill (No. 3) 2006-2007 and Appropriation Bill (No. 4) 2006-2007 to a close. I would like to thank all of those members who have made a contribution. The debate has touched on a wide range of issues of interest to members, including the general state of the economy and issues emerging in members’ electorates as well as more general policy issues such as policies to address climate change. The additional estimates bills seek appropriation authority from the parliament to meet requirements that have arisen since the last budget. The total appropriation being sought through the additional estimates bills this year is somewhat in excess of $1.8 billion and arises from changes in the estimates of program expenditure and from policy decisions taken by the government since the last budget.

The initiatives for which funding is sought in these bills reflect the government’s continuing commitment to maintaining stability in our region, enhancing our national security, investing in families, investing in a more skilled and dynamic workforce, investing in alternative transport fuels and providing additional assistance to those suffering the effects of the drought and those receiving structural adjustment payments following measures to protect the Great Barrier Reef Marine Park.

I will now take an opportunity to outline the more significant measures contained in the bills. Australia must be prepared to respond and help where necessary with respect to stability in our region. The appropriation bills provide funding to substantially strengthen the Australian Federal Police’s capacity to respond to international crises, particularly in our region. An additional $64.7 million will be provided to the AFP to fund Australian police deployments in East Timor, including the contribution to the United Nations integrated mission in East Timor, and to expand the international deployment group by about 114 personnel in 2006-07. The expansion will allow the AFP to respond more quickly and comprehensively to crisis situations and will help to strengthen law enforcement capabilities across our region.

The increase in the AFP deployment complements the initiative to increase the size of the Australian Army. An additional $46.2 million will be provided to deliver stage 1 of the Enhanced Land Force initiative to increase the size of the Australian Army by one light infantry battalion. This will ensure that we have the capability to act in a manner commensurate with our regional responsibilities and to contribute to coalitions in areas further afield. In addition, it is proposed to provide $49.6 million to implement a number of innovative recruitment and retention initiatives to ensure the Australian Defence Force is able to attract and retain the people that are essential to the maintenance of our defence capabilities. It is also proposed to provide $139.4 million for Operation Astute to restore peace and stability in East Timor, plus $49.7 million to acquire protective equipment to enhance the security and effectiveness of deployments to Iraq and Afghanistan. These provisions will ensure that the government can continue to provide the right mix of law enforcement and military responses to emerging challenges in the region.

With respect to investing in our families, we are committed to educating children and families and legislating and regulating to reduce the dangers lurking on the internet. The appropriation bills propose funding to create a national filter scheme to provide every Australian family with a free internet filter as part of a comprehensive package of measures to crack down on the scourge of internet pornography. The National Filter Scheme is the centrepiece of the government’s Protecting Australian Families Online package, which is the single biggest commitment to protecting families online in the history of the internet in Australia. This is not only in respect of pornography but also for young people being contacted on the internet. The filter will assist in protecting young children with respect to so-called chat rooms. The Department of Communications, Information Technology and the Arts will be provided with $34.9 million in 2006-07 to commence implementation of the initiative, which also includes measures to provide Australian libraries with free filters so that computer corners at libraries across Australia will be child friendly.

One of the biggest skills challenges we face as a nation is to improve the basic skills of our workforce. Almost a third of Australians aged between 25 and 64 are without year 12 or an equivalent qualification. The government’s Skills for the Future investment program will help build a more highly skilled and responsive workforce to support Australia’s long-term economic growth. As part of this program, the Department of Education, Science and Training will be provided with $38.6 million to support people aged 25 years and over who do not have year 12 or an equivalent qualification. Each year, up to 30,000 vouchers valued at up to $3,000 will be made available to individuals in this group to undertake accredited literacy, numeracy, basic education and vocational certificate II courses. These work skills vouchers represent a major investment in closing the gap between the skills rich and the skills poor in our community and are a symbol of the government’s commitment to individual advancement and economic opportunity. The department will also be provided with $15 million to promote career opportunities under the Skills for the Future initiative.

The government’s energy white paper established a balanced framework for supporting alternative transport fuels. To capitalise on Australia’s liquefied petroleum gas resources and to accelerate investment in alternative fuels as well as provide motorists with more and cheaper fuel options, the government has introduced measures to encourage consumers to purchase new LPG vehicles and to convert existing vehicles to use LPG. An additional $136.1 million will be provided to the Department of Industry, Tourism and Resources to implement the initiative, under which individuals who purchase a new factory-fitted, LPG-powered vehicle for private use will receive a rebate of $1,000, while individuals who convert their car to LPG for private use will receive a rebate of $2,000.

Australia is currently in the grip of the worst drought on record and, more than ever, farmers are struggling. The appropriation bills propose funding for additional assistance to farmers suffering the effects of this drought. An additional $12 million will be provided to the Department of Agriculture, Fisheries and Forestry to support primary producers in regions that have been declared eligible for exceptional circumstances assistance and an additional $14 million to support primary producers in regions that have been declared eligible for interim income support. In areas that have been exceptional circumstances declared for more than three years a further $17.3 million will be provided as taxable grants of up to $5,500 for eligible farmers to obtain professional business and planning advice. The department will also be provided with $30.9 million to assist former and current tobacco growers to move into other business activities.

The government is committed to providing structural adjustment assistance to people in the fishing and fishing-dependent industries who are affected by rezoning in the Great Barrier Reef Marine Park. The government will provide an additional $84 million for the Great Barrier Reef structural adjustment package, including $27.4 million to enhance the package. Enhancements include changes to ensure that the assistance covers the approved full cost of restructuring a business, a further 20 per cent increase in payments for approved applications for business restructuring assistance, extension of the provision of financial and relationship counsellors to the region for a further 12 months and measures to expedite the assessment of applications.

I wish to emphasise that the capacity of government to respond effectively to areas of need, such as in the areas I have just outlined, is only possible because of our continuing strong management of the economy and ongoing economic reform. The 2006-07 Mid-Year Economic and Fiscal Outlook reported that the economic and fiscal outlook for Australia remains sound, although the economy is being affected by a severe drought. Since 1996, the economy has enjoyed a long period of sustained growth. In 2006-07, it is forecast to grow by 2½ per cent. During this sustained period of growth the unemployment rate has fallen to 30-year lows, while inflation remains moderate. The consumer price index fell by 0.1 per cent in the December quarter 2006, to be 3.3 per cent higher than a year ago. The December quarter outcome was the first fall since the March quarter 1999 and reflected a sharp fall in petrol prices. In the period ahead the CPI is expected to grow at a moderate rate, reflecting the unwinding of high fruit and fuel prices and an easing in underlying inflationary pressures. The fiscal outlook continues to remain sound. The government expects an underlying cash surplus of $11.8 billion for 2006-07, which is marginally stronger than the 2006-07 budget forecast. Surpluses are also forecast over the forward years.

These projected underlying cash surpluses emphasise Australia’s sound fiscal outlook at a time when many of the major advanced economies are continuing to experience significant deficits. The continuation of the government’s sound economic management will ensure that Australians continue to benefit from the higher standard of living that comes with low inflation, solid and sustainable wage growth, very high levels of labour force participation and the lowest unemployment rate in 30 years. I note that the OECD’s recent economic survey of the Australian economy commented that Australia’s recent macroeconomic performance continues to be impressive and that living standards have steadily improved since the beginning of the 1990s and now surpass all G7 countries except the United States.

Commonwealth net debt was eliminated earlier this year, falling from a peak of 18.5 per cent of GDP in 1995-96. Net worth is projected to be positive for the first time in 2008-09. The government transferred $18.6 billion to the Future Fund last month. That amount consisted of the first instalment of the 2005-06 budget surplus of $10 billion and a further $8.6 billion, which was the first instalment received by the government from the sale of Telstra. This amount is a significant contribution by the government to the Future Fund to help meet the government’s superannuation liabilities. By addressing superannuation liabilities, the Future Fund will strengthen the government’s financial position and help reduce pressures on the budget at a time when the government will be facing the spending challenges of an ageing population.

At the commencement of the debate, the honourable member for Melbourne moved an amendment to the second reading motion. The government does not support the proposed amendment. The reasons for that should be quite clear. I have already dealt with many of the specific issues that were raised in the amendment. The people of Australia have enjoyed unprecedented economic prosperity, thanks largely to the government’s impressive macroeconomic management. Through its commitment to sound financial management, the government has put the budget in surplus, retired government net debt and commenced saving for its future obligations. This will free the next generation of Australians to meet their own challenges, unencumbered by the legacy of past Labor governments, which spent way beyond their means. The government stands by its achievements in economic policy and workplace relations. We reject the unfounded assertion that the budget documents fail the test of transparency and accountability. These bills are important pieces of legislation, underpinning the government’s programs and reforms and deserve widespread support. I commend the additional estimates bills to the House.

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