Bill Shorten (Maribyrnong, Australian Labor Party, Minister for Financial Services and Superannuation) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

There are two additional estimates bills this year: Appropriation Bill (No. 3) and Appropriation Bill (No. 4).

The additional estimates bills seek appropriation authority from the parliament for the additional expenditure of money from the Consolidated Revenue Fund. These funds are sought in order to meet requirements that have arisen since the last budget as well as to take into account impacts on Australia's economic and fiscal outlook that have arisen as a result of the European sovereign debt crisis and instability on the global financial markets. The total additional appropriation being sought through additional estimates bills 3 and 4 this year is a little over $3.1 billion.

The recent Mid-Year Economic and Fiscal Outlook identified several impacts on the Australian economy that have implications for Australia's near-term outlook.

Since last year's budget, the European sovereign debt crisis has had an increased impact on international growth and overall market stability. Despite the pressures this has placed on the Australian economic and fiscal outlook, Australia continues to outperform the developed world in economic growth, low unemployment, resources investment and strong public finances. The government remains on track to deliver a budget surplus in the 2012-13 financial year.

Turning now to Appropriation Bill (No. 3); the total appropriation being sought in this bill is $2.8 billion. This proposed appropriation arises from: changes in the estimates of program expenditure; variations in the timing of payments; forecast increases in program take-up; reclassifications; and policy decisions taken by the government since the last budget.

I now outline the major appropriations proposed in the bill.

The government will provide $1.3 billion in appropriations across several agencies to support its commitment to a Clean Energy Future for Australia.

The government will provide $1 billion to the Department of Climate Change and Energy Efficiency to provide cash payments to highly emissions-intensive coal-fired power stations to assist their transition to a carbon price.

The Department of Climate Change and Energy Efficiency will be provided with $106 million to complete remaining complex inspections and rectification services under the Home Insulation Safety Plan.

The Department of Climate Change and Energy Efficiency will receive $37 million for the establishment of the Clean Energy Regulator, which will administer the carbon-pricing mechanism. The regulator will be responsible for monitoring and assessing the emissions data as well as enforcing compliance with the carbon-pricing mechanism.

The government will provide a further $100,000 in 2011-12 for the Department of Finance and Deregulation to conduct gateway reviews of the establishment and operation of the Clean Energy Regulator.

The government will also provide the Department of Climate Change and Energy Efficiency with $6 million to assist the delivery of information about the implications of a carbon price on small businesses and other community organisations.

The government will provide the coalmining industry, through the Department of Resources, Energy and Tourism, with $222 million to assist the most emissions-intensive coalmines to transition to a carbon price. The assistance includes a Coal Sector Jobs Package and a Coal Mining Abatement Technology Support Package.

The Department of Sustainability, Environment, Water, Population and Communities will receive $36 million to establish a Biodiversity Fund. This fund will support the establishment, restoration, protection and management of biodiverse carbon stores, for example, reforestation and revegetation in areas of high conservation value, including wildlife corridors, and action to prevent the spread of invasive species across connected landscapes. The department will also be provided with $2 million as part of a package to support the Tasmanian forest industry as it transitions to a more sustainable and diversified industry.

The government will provide $49 million to the Department of Sustainability, Environment, Water, Population and Communities to support the management of extractive industry activities, especially coal seam gas and major coalmining developments. This initiative aims to build scientific evidence and understanding of the impacts on water resources of coal seam gas extraction and large coalmines.

AusAID will receive $30 million in official development assistance as part of Australia's contribution to the Horn of Africa as it deals with drought and famine. This humanitarian assistance will be provided through various organisations, such as the United Nations High Commissioner for Refugees, the World Food Program and other non-government organisations.

AusAID will also receive $10 million of funding to implement the International Mining for Development Centre, provide scholarships through the Australian Mining Awards program and build administrative capacity in Africa.

The Department of Human Services will be provided with $36 million to facilitate payments to assist households in meeting the additional costs associated with a carbon price. This funding supports the government's commitment to helping families with children, the aged, pensioners and people with a disability adjust to the carbon-pricing mechanism. The government will also provide support to other income support recipients and low-income earners.

The Department of Agriculture, Fisheries and Forestry will receive supplementary appropriations to support businesses within the live cattle exports industry. The government will provide $24 million of assistance to businesses affected by the temporary suspension of live cattle exports to Indonesia and to improve animal welfare outcomes. The assistance will include a combination of assistance payments and the subsidisation of low-interest loans to support businesses directly affected by the interruption in trade.

The Department of Agriculture, Fisheries and Forestry will also be provided with $30 million to extend the Carbon Farming Initiative to include two new programs, Carbon Farming Futures and the Indigenous Carbon Farming Fund. The department will also receive $45 million to support the Tasmanian forest industry support initiative being led by the Department of Sustainability, Environment, Water, Population and Communities.

The government will provide the Department of Industry, Innovation, Science, Research and Tertiary Education with $9 million to assist the manufacturing industry transition to a low-carbon economy. The assistance will comprise direct assistance to manufacturing businesses with an energy consumption of at least 300 megawatt hours of annual electricity or five terajoules of natural gas. The assistance will include grants to trade exposed industries such as metal forging and foundry industries as well as targeted assistance to improve energy efficiencies within these industries.

The government will provide $14 million to Norfolk Island through the Department of Regional Australia, Local Government, Arts and Sport. The funding will support the Norfolk Island government in the provision of essential services. The funding will also help the Norfolk Island government to develop reforms that will improve its efficiency and effectiveness.

The Department of Regional Australia, Local Government, Arts and Sport will also receive $16 million to support the Tasmanian forestry industry support being led by the Department of Sustainability, Environment, Water, Population and Communities.

The government will also provide the Department of Regional Australia, Local Government, Arts and Sport with $15 million for the redevelopment of Bellerive Oval in Tasmania. The redevelopment will include an increased capacity for the venue and upgraded facilities. This project will ensure that Tasmanians will get to see more sporting events in Hobart.

The Department of Human Services will be appropriated $10 million to facilitate payments to strengthen incentives for parents to have their children immunised. This funding supports changes to the eligibility criteria for the family tax benefit part A as well as expanding the immunisation program to include meningococcal C, pneumococcal and chicken pox vaccines.

Movement of f unds i nformation

I now outline the major reclassifications proposed in Appropriation Bill (No.3).

The government will reappropriate $45 million across six departments.

The Department of Education, Employment and Workplace Relations will be reappropriated $20 million related to providing employment services to job seekers.

The Department of Regional Australia, Local Government, Arts and Sport will be reappropriated $7 million relating to the sport and recreation program.

The Department of Agriculture, Fisheries and Forestry will be reappropriated $6 million across several programs including those that support the fishing industry, drought relief programs and sustainable agricultural resources.

The Department of the Treasury will be reappropriated $2 million related to the education tax refund campaign.

The remaining amounts that appear in Appropriation Bill (No. 3) relate to estimates variations, minor reclassifications and other minor measures.

Debate adjourned.