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Portfolio budget statements

Environment Budget Overview 2006-07

Environment and Heritage Portfolio
Australian Government Department of the Environment and Heritage, May 2006

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New environment-related spending 2006-07 Budget and key recent initiatives

New environment-related spending in the Australian Government’s 2006–07 Budget and key recent initiatives are outlined in Table 1.3. These amounts build upon previous environment expenditure and continue the Australian Government’s approach to sustainability.

Table 1.3: New Environment-related spending 2006-07 to 2009-10 and key recent initiatives
Title of Initiative 2005-06 $m 2006-07 $m 2007-08 $m 2008-09 $m 2009-10 $m 5 Year Total
Environment and Heritage Portfolio  
Regional marine planning - continuation - 9.2 9.4 9.5 9.6 37.7
Used oil recyclers - transitional funding - 15.1 10.0 5.0 - 30.1
Kakadu National Park rehabilitation of uranium mine sites - 1.4 1.1 2.3 2.6 7.3
Base funding for Monitoring, compliance and enforcement of Fuel Quality Standards - 1.3 1.4 1.5 1.5 5.6
Rapid Response Vessel (b) - 0.9 0.5 0.5 - 2.0
Voyage of the Duyfken - additional funding - 0.2 - - - 0.2
Biofuels Taskforce - Australian Government Response 0.5 6.1 1.6 1.6 1.7 11.5
Kakadu and Uluru National Park Tourism Infrastructure 7.2 - - - - 7.2
Restoration of churches and cathedrals 5.0 - - - - 5.0
Australian Wildlife Hospital 2.5 - - - - 2.5
Mawson's Hut Restoration 0.3 - - - - 0.3
Great Barrier Reef Structural Adjustment Package - additional funding 28.5 - - - - 28.5
HMAS Sydney II - search - 1.3 - - - 1.3
Tasmanian Community Forest Agreement - Forest Conservation Fund 2.2 2.6 2.5 1.4 - 8.8
Tasmanian Community Forest Agreement - reservation of private forest at Mole Creek 1.4 1.4 0.7 - - 3.6
Tasmanian Community Forest Agreement - tourism and recreation 1.0 1.0 - - - 2.0
Tasmanian Community Forest Agreement - saving the Tasmanian Devil 1.0 1.0 - - - 2.0
Tasmanian Community Forest Agreement - river catchment water quality auditing 0.5 0.5 - - - 1.0
Tasmanian Community Forest Agreement - Tarkine bush walk 0.5 0.5 - - - 1.0
Decisions taken but not yet announced 28.0 - - - - 28.0
Total for Environment & Heritage 78.7 42.6 27.3 21.9 15.3 185.8
Agriculture, Fisheries and Forestry Portfolio  
Murray Darling Basin Commission - additional funding (a) - 65.0 145.0 175.0 65.0 450.0
Protection of Australia's Southern Ocean and northern waters & resources from illegal foreign fishing (AFMA)  (b) 15.0 30.1 33.3 34.0 24.9 137.3
Illegal foreign fishers (DAFF)  (b) - 3.6 4.2 4.2 3.8 15.8
Tasmanian Community Forest Agreement - Research into alternatives to the use of 1080 1.5 2.5 - - - 4.0
Tasmanian Community Forest Agreement - Research into alternatives to clearfelling 2.0 - - - - 2.0
Industry, Tourism and Resources Portfolio  
Support for the Asia-Pacific Partnership on Clean Development and Climate - 6.1 33.1 34.1 20.9 94.2
Attorney-General Portfolio  
Illegal foreign fishers (Customs) (b) - 62.5 54.0 39.7 41.2 197.4
Illegal foreign fishers (DPP) (b) - 1.4 2.1 1.8 1.9 7.2
Illegal foreign fishers (AFP) (b) - 0.4 0.4 0.4 0.4 1.6
Illegal foreign fishers (AGD) (b) - 0.9 1.3 1.2 1.3 4.7
Immigration and Multicultural Affairs Portfolio  
Illegal foreign fishers (b) - 13.4 13.5 11.3 11.4 49.6
Defence Portfolio  
Illegal foreign fishers (b) - 5.0 6.2 7.3 - 18.5
Education, Science and Training Portfolio  
Flagship Collaborative Research Fund - 1.7 - - - 1.7
Australian Community Climate and Earth System Simulator - 21.1 - - - 21.1
Water Resources Observation Network - 9.0 - - - 9.0
Total 97.3 265.1 320.3 330.9 186.2 1199.9

Note: Amounts in this document are generally rounded to one decimal point using the standard rounding conventions. Due to rounding, the aggregation of elements within a table may not match the actual ‘total’. Unless otherwise stated, numbers are provided on a total resourcing basis.

(a) The Murray-Darling Basin Commission measure will provide $500m in 2005–06, to be expensed over five years on a fiscal basis as project milestones are completed.

(b) This item includes funding from the Illegal Foreign Fishers package. The primary purpose of this package is to address illegal foreign fishing in Australia’s northern waters. The total amount of this funding is included as it delivers environmental benefits, which cannot be separately identified.

Environment and Heritage portfolio expenditure

Regional Marine Planning

The Australian Government will provide $37.7 million over four years to continue to deliver Australia’s world-leading Regional Marine Planning programme. This will involve further development of a series of bioregional marine plans, including a system of marine protected areas, over Australia’s 14 million square kilometre ocean jurisdiction. In 2006–07 the focus will be on developing the northern and south-western marine bioregional plans for Australia’s Exclusive Economic Zone.

Marine planning has already made contributions to science and increased our knowledge of the marine environment. Regional marine plans will help improve our understanding of the biodiversity of the marine environment and contribute to realising the economic potential of Australia’s oceans by providing a clearer focus on conservation and ecologically sustainable management.

Temporary support for oil recyclers through the Product Stewardship for Oil Programme

Each year, more than 500 million litres of lubricating oil is sold in Australia. In 2001 the Australian Government introduced the Product Stewardship for Oil Programme which provides incentives to increase recycling of used oil through a levy-benefit system. Since its inception, the scheme has been a success with Australia now recycling more than 80 per cent of recoverable lubricant oil. In addition, the Government has funded the installation of over 800 used oil collection facilities across Australia.

The Government will provide $30.1 million over three years for temporary support for oil recyclers through the Product Stewardship for Oil Programme. This measure will provide used oil recyclers sufficient time to adjust to the new market following the removal of excise on burner fuel. This excise change is part of the Energy White Paper-Securing Australia’s Energy Future fuel excise reform, which takes effect on 1 July 2006.

Uranium mining rehabilitation in the Kakadu National Park

The Australian Government will further its commitment to protecting the environment by providing $7.3 million over four years to rehabilitate old uranium mining sites in the Kakadu National Park. There are currently a range of 1950s and 1960s abandoned uranium mine sites and associated uranium tailings in the South of Kakadu National Park. This measure will provide for a long-term containment solution for wastes at these sites.

Monitoring, compliance and enforcement of fuel quality

The Australian Government will provide $5.6 million over four years to undertake fuel quality compliance inspections to ensure transport fuels, including ethanol blends, meet fuel quality standards. This funding is additional to the initiative announced under the Biofuels package to increase ethanol fuel testing.

The fuel industry is obliged to supply fuels that meet environmental requirements to reduce the adverse effects of motor vehicle emissions on air quality and human health.

Great Barrier Reef Marine Park Authority rapid response vessel

Through the Great Barrier Reef Marine Park Authority, the Australian Government will provide $2 million (fiscal) over the next three years to counter the prevalence of illegal foreign fishing in the northern waters of the Great Barrier Reef Marine Park. The funding will enable the acquisition and operation of a new purpose-built fast response vessel, crew, supporting equipment and associated funding.

Voyage of the Duyfken – additional funding

The replica Dutch ship, Duyfken, has embarked on a 12,000 kilometre voyage around the coast of Australia, to commemorate the 400th anniversary of the first documented European contact with Australia. The Australian Government has provided major sponsorship of $495,000, of which $245,000 is provided as new funding through the 2006–07 Budget, for the voyage which was launched by the Australian and Dutch Prime Ministers on 6 April 2006. The journey will take nine months to complete and the ship is scheduled to stop in 25 ports around the country.

Biofuels package

On 22 September 2005, the Prime Minister announced a package of measures to address market barriers and restore consumer confidence in the biofuels industry. This package is in addition to the Australian Government’s existing significant support of biofuels, demonstrating the Government’s firm commitment to the development of a viable Australian biofuels industry. The Biofuels package includes the following measures:

TESTING PROGRAMME TO ASSESS THE OPERATION OF VEHICLES IN THE AUSTRALIAN FLEET ON ETHANOL BLEND FUELS

Ongoing testing of vehicles in the Australian market will be undertaken to assess how they operate using E5 (fuel with five per cent ethanol and 95 per cent petrol) and E10 (fuel with 10 per cent ethanol and 90 per cent petrol) ethanol blends to provide continued confidence to motorists. A selection of vehicles will be tested on E5 and E10 fuel blends. The study will focus on vehicle operability and performance, materials compatibility of engine components and engine durability issues. This study will confirm the suitability of E5 and E10 blends on the existing Australian vehicle fleet and result in reliable information on the suitability of low ethanol blends for wider use. Results will also inform decision making on whether E5 fuel blends may be sold unlabelled.

INCREASE FUEL QUALITY COMPLIANCE INSPECTIONS TO ENSURE ETHANOL BLENDS

A commitment of $6.3 million over four years will be provided to increase fuel quality compliance inspections to ensure ethanol blends meet fuel quality standards. The Department of the Environment and Heritage already undertakes fuel quality compliance inspections across Australia to monitor compliance with the Fuel Quality Standards Act 2000. Increased inspections will help ensure that any fuel adulteration is detected, increasing consumer confidence and furthering the current co-operative arrangements between the oil, auto and ethanol industries. This will also help prevent poor quality fuel in the marketplace having negative impacts on vehicle operability and on the environment, through increased emissions of pollutants.

SIMPLIFY THE E10 FUEL LABEL

This measure replaces the existing, complex E10 fuel label with a simplified label that is more easily understood. These new simplified ethanol blend labelling requirements commenced in January 2006.

STANDARDISING BIODIESEL BLENDS

Australian fuels and transport industries will receive $0.2 million in 2005–06 and 2006–07 to establish standard forms of biodiesel to provide certainty to the market. Standards already exist under the Fuel Quality Standards Act 2000 for 100 per cent biodiesel (B100) and for automotive or petroleum diesel, but not for blends of the two. Blends have proliferated on the Australian market and presently include such variations as B5, B20, B49. Establishing standard forms of biodiesel, such as B5, B20 and B49 will increase consumer confidence and provide certainty to the market, potentially leading to increased sales of biodiesel.

TRANSPARENT AND NATIONALLY CONSISTENT FUEL VOLATILITY STANDARDS

The Australian Government will work with the states and territories to develop fuel volatility standards that are transparent, nationally consistent and take full account of the latest information on the impacts of ethanol blends on air quality. Rather than being regulated nationally under the Fuel Quality Standards Act 2000, fuel volatility (measured as Reid Vapour Pressure) is regulated by states – Tasmania, the Australian Capital Territory and Northern Territory currently do not impose Reid Vapour Pressure limits. Current limits vary in value, timing and geographic application. The project involves the development of a transparent protocol to be used by states and territories when setting Reid Vapour Pressure limits. This is important because Reid Vapour Pressure limits have the potential to be a barrier to the uptake of ethanol blends in locations where, at times of year, fuel volatility can contribute to air quality concerns. Development of transparent and nationally consistent standards will minimise this potential barrier.

HEALTH IMPACT OF ETHANOL

A commitment of $2.1 million over the period 2005–06 to 2006–07 will be provided to commission a study on the health impact of ethanol to assess overseas research under Australian conditions. The Biofuels Taskforce found that there may be potentially significant air quality and health benefits from ethanol use, and so reliable Australian data are needed to be able to quantify the health costs of using low ethanol blend fuels. This study will assess the comparative health impact of E10 fuel on tailpipe particulate and evaporative emissions and the resulting impacts under Australian conditions.

BIODIESEL TRIAL IN KAKADU NATIONAL PARK

The Australian Government will promote the beneficial environmental properties of biodiesel through a B5 biodiesel trial in Kakadu National Park. The proposal involves a trial of five per cent biodiesel blend fuel in vehicles owned by the Director of National Parks, which are operated in the Kakadu National Park. Under this trial, biodiesel will be assessed to determine its effects on vehicle operability in this demanding tropical environment. Biodiesel for the trial will be supplied by a biodiesel facility in Darwin, which is currently under construction.

Boost for tourism at Kakadu and Uluru-Kata Tjuta National Parks

The sunrise viewing area at Uluru, one of the park’s most popular visitor destinations — and one of the most congested — will be redeveloped through a $5.4 million investment by the Australian Government. A new site and associated roadworks, with up to double the current capacity, will be developed. This development will address long-standing concerns about crowding and visitor safety.

The Government has accepted all the relevant recommendations of the Morse Report which accompanied the development of the Shared Tourism Vision for Kakadu released in 2005. New funding provided in 2005–06 totalling $1.8 million will support the development of a Tourism Master Plan, new park signage, a first precinct plan for the Twin Falls area, and marketing of the Park.

Restoration of churches and cathedrals

In 2005–06 the Australian Government provided $2 million to St John’s Cathedral in Brisbane to assist with completing the final stage of this architecturally significant building. Construction of St John’s Cathedral commenced at the beginning of the last century. Works on St John’s will continue in 2006–07 as will work on St Mary’s Cathedral, Perth, and Mary’s Star of the Sea in Melbourne.

The Australian Government has also provided $1 million to the Basilica of St Patrick in Fremantle and $2 million to St Mary’s Cathedral in Hobart, to assist with essential restoration and conservation works to these important buildings.

Australian Wildlife Hospital

The Australian Government has provided $2.5 million in 2005–06 to expand the operations of the Australian Wildlife Hospital and assist in meeting the capital costs associated with the expansion of the hospital’s surgical, rehabilitation, research and training facilities.

Based at Beerwah on Queensland’s Sunshine Coast, the Australian Wildlife Hospital operates 24-hours a day with full veterinary facilities to provide surgical care and rehabilitation to Australian native animals. The hospital services an area in excess of 100,000 square kilometres stretching from Northern New South Wales through to Maryborough and west to Toowoomba. The hospital also provides an information service to veterinarians and wildlife carer groups around Australia and conducts research into wildlife disease and health management. The hospital is also being used by universities for the training of veterinarian students and wildlife trainees for practical work experience and course work.

Mawson’s Hut

The Australian Government has provided $320,000 to the Mawson’s Hut Foundation to fund a major expedition to Commonwealth Bay in the Antarctic, to undertake conservation work on the historic huts built by Sir Douglas Mawson in 1912.

Other environment-related expenditure

Murray-Darling Basin Commission — additional funding

(Agriculture, Fisheries and Forestry)

The Government will provide $500 million in 2005–06 to the Murray-Darling Basin Commission. This funding will be expensed over five years as project milestones are completed and will have a fiscal balance impact over the years 2006–07 to 2009–10 of $450 million and $50 million in 2010–11.

This funding will allow the Commission to:

The Australian Government calls on the Murray-Darling states to invest generously to restore the health of the River Murray.

Rainforest

Securing borders against illegal foreign fishing in Australia package

The Australian Government will provide a package with resourcing of $388.9 million for the enhancement of Australia’s Fisheries and Maritime Surveillance, compliance and enforcement arrangements. This package will protect Australia’s sovereign interests in northern Australian waters and will effectively more than double apprehensions of illegal foreign fishing vessels (IFFVs) each year and the downstream processes related to the transfer, detention, prosecution and repatriation of apprehended illegal foreign fishers.

Other key elements of the package include:

Flagship Collaborative Research Fund

(CSIRO)

In addition to expenditure via its research themes, CSIRO contributes to the development and delivery of environmental research through its Flagship Collaborative Research Fund. In 2006–07, this funding will provide in the order of $1.7 million to government funded research organisations, such as universities, to collaborate with CSIRO in environmental research.

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