Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Appropriation Bill (No. 4) provides additional funding to agencies for:

• expenses in relation to grants to the states under section 96 of the Constitution and for payments to the territories and local government authorities; and
• non-operating purposes such as equity injections and loans.

The total additional appropriation being sought in Appropriation Bill (No. 4) 2008-2009 is $1.04 billion.

The principal factor contributing to the additional requirement since the 2008-2009 budget is a proposed increase of $791.2 million in payments to the states, territories and local government authorities, the more significant of which I now outline.

The government proposes an additional appropriation of $300 million for the Department of Infrastructure, Transport, Regional Development and Local Government for the Regional and Local Community Infrastructure Program. Of this amount, $250 million will be distributed to local councils, with council and shire allocations based on a formula that recognises need and population growth. The balance of $50 million will be invested in larger-scale local projects such as new sports stadiums, entertainment precincts and cultural centres that require a larger Commonwealth contribution of $2 million or more. Funding under this element will be allocated on a nationally competitive basis, with projects assessed by the Department of Infrastructure, Transport, Regional Development and Local Government.

An amount of $227.1 million is proposed for the Department of Agriculture, Fisheries and Forestry for drought assistance under the Exceptional Circumstances Interest Rate Subsidy program, of which:

• $213.5 million will be provided for assistance for primary producers in regions that have been declared eligible for exceptional circumstances assistance; and
• $13.6 million will be provided for continued support for small businesses with up to 100 employees that are dependent on business from farmers in regions declared eligible for exceptional circumstances assistance.

An additional $17.5 million is proposed for the Department of Education, Employment and Workplace Relations to improve access to childcare and early childhood services for Indigenous Australians. This funding will contribute to the establishment and operation of 15 new children and family centres in urban areas and will expand the government’s contribution to the establishment and operation of 20 centres in rural and remote communities that have Indigenous populations.

An amount of $17.5 million is proposed for the Department of Families, Housing, Community Services and Indigenous Affairs to further clarify roles and responsibilities in the disability sphere between the Commonwealth, states and territories by transferring relevant Disability Assistance Package funds. Of the total amount, $12.6 million is transferred from the additional respite services for older carers to the states and territories, while $4.9 million is transferred from targeted support funding, which will enable clients who are no longer suited to business services employment to transfer to state and territory run day service programs.

An amount of $334.9 million is provided for the Department of the Environment, Water, Heritage and the Arts for the Water for the Future package. Of this amount, $301.6 million will be made available by reclassifying administered expense appropriations provided for this program in Appropriation Act (No. 1), and $33.4 million is brought into 2008-09 from 2007-08 and 2009-10 for the Living Murray Initiative. Of the overall amount:

• $152.4 million will be provided as an administered asset item to fund the purchase of water entitlements. This reclassification is based on advice from the Australian National Audit Office that water entitlements are intangible assets and should be funded by a non-operating appropriation; and
• $182.5 million will be provided as a payment to the states, territories and local government item to permit direct program payments to the states.

Turning to other appropriations in the bill, the government will provide the Special Broadcasting Service Corporation with a loan of $15 million, to be repaid over five years, to advance sports broadcasting rights payments and infrastructure works.

Finally, a reallocation of appropriation is proposed between agencies implementing the COAG endorsed Standard Business Reporting program. The Department of the Treasury will receive capital funding of $11.8 million, matched by reductions in the Standard Business Reporting funding of other agencies, to reflect the actual implementation costs and workload share between agencies following an internal review of the program.

The remaining amounts that appear in Appropriation Bill (No. 4) relate to estimates variations, minor reclassifications and other minor measures.

Similar changes proposed for the Advance to the Finance Minister in bill No. 3 are proposed for Appropriation Bill (No. 4). As outlined in the second reading speech for bill No. 3, the changes will:

• restore the limit of the advance in Appropriation Act (No. 2) to $380 million, upon commencement of Appropriation Act (No. 4); and
• prevent appropriations for the same expenditure from both the advance and the bill.

I commend the bill to the House.

Debate (on motion by Mr Randall) adjourned.