House debates

Wednesday, 4 February 2009

Appropriation Bill (No. 3) 2008-2009; Appropriation Bill (No. 4) 2008-2009

Second Reading

6:32 pm

Photo of Craig ThomsonCraig Thomson (Dobell, Australian Labor Party) Share this | Hansard source

I am supporting the Appropriation Bill (No. 3) 2008-2009 and Appropriation Bill (No. 4) 2008-2009. Appropriation Bill (No. 3) is for $2.05 billion and Appropriation Bill (No. 4) is for $1.04 billion. These additional estimates bills seek authority from the parliament for additional expenditure of money from the consolidated revenue fund in order to meet requirements that have arisen since the budget. The total additional appropriation being sought through additional estimates bills No. 3 and No. 4 this year is $3.1 billion, or about 4.1 per cent of total annual appropriations. The total appropriations being sought this year through Appropriation Bill (No. 3) of $2.05 billion arise from changes in the estimates of program expenditure due to variations in the timing of payments and forecast increases and program take-ups, reclassifications from policy decisions taken by the government since the last budget, and many new policy initiatives that have been welcomed by the community.

I will try to go through both of these appropriation bills and look at what is there. There is a vast array of particular funding items, but it is important to go through them all because the bills set out part of the Rudd agenda in terms of how we assist Australia on a range of issues, many of which were neglected for many years under the coalition.

Appropriation Bill (No. 4) provides additional funding to agencies for expenses in relation to grants to the states under section 96 of the Constitution, for payments to the territories and to local government authorities, and for non-operating purposes such as equity injections and loans. In particular, in relation to Appropriation Bill (No. 4), I would like to talk about, later in my contribution, the local government authorities’ money and the plans for that money in my electorate, particularly from Wyong council, and just how welcome that has been.

The principal factor contributing to the additional requirements since the 2008-09 budget is the proposed increase of $791.2 million in payments to states, territories and local authorities. The main items under Appropriation Bill (No. 3) 2008-2009 include $157.2 million to AusAID as part of the government’s commitment to increasing Australia’s overseas development assistance over the long term. The Department of Defence will be provided with $87.8 million to reimburse it for the costs of extending Australia’s military participation in stabilising and reconstruction activities in Iraq to 30 June 2009. There is $307 million to address pressures in a number of areas, including the graded other ranks pay structure review, superannuation, rental allowances and higher fuel costs. This funding is matched by reduced estimates for Defence in later years. There is $153 million for Defence to meet additional costs arising from movements in exchange rates and $29.4 million to cover unavoidable overspends on operations in the previous financial year which are funded by the government on a no win, no loss basis.

The sum of $21.3 million from this appropriation bill will go to the Department of Health and Ageing to increase the number of organ donations and transplants across Australia by implementing a comprehensive set of initiatives. The substantive legislation in relation to this has already passed, as has most of the substantive legislation in relation to these appropriation bills. In terms of organ donation, Australia on the one hand is a country that has been internationally recognised for its strong record of successful organ transplants. More than 30,000 Australians have received transplants in the last 60 years and we have been leading the world, right at the cutting edge, in the tremendous work in transplantation that our doctors and health professionals have done. But on the other hand, ironically, we have one of the world’s lowest rates of organ donation. Demand massively outweighs supply in Australia, and the consequence of this is that a substantial number of people will die while waiting for suitable organ donations. In fact, in Australia about 200 organs are donated each year on average, with 1,800 people on the waiting list. So there is a shortfall of around 1,600 each year. That is why the legislation that passed through this place last year went to set up a comprehensive national system that will assist with organ transplants. The appropriation bill that we are discussing today allocates $21.3 million to make sure that that aim of increasing organ transplants—something that is vital for this country—is achieved.

Also for the Department of Health and Ageing there is an additional $7.5 million to be provided to increase the number of places available under the general practice placement program. Another item under the same department is a return of $21.4 million to the diagnostic imaging industry as part of the recently expired memorandum of understanding between the Commonwealth and the industry, and $14.4 million goes to the department to meet costs associated with the increased uptake of a breast cancer drug provided under the new Commonwealth program. These are all good initiatives. These are all initiatives that have come in the first year of the Rudd government. These are all initiatives that show that the health and wellbeing of Australian citizens is at the forefront of this government’s mind in deciding policy steps that need to be taken and need to be implemented.

Thirty-nine million dollars will go to the Department of Human Services for a Job Capacity Assessment program to meet higher than expected demand for assessments. This will provide for an additional 139,555 assessments to be undertaken in 2008-09. The Department of the Environment, Water, Heritage and the Arts will receive $101 million to meet the increased demand for household rebates under the Solar Homes and Communities Plan. This is a program with a very high demand. This is a program that, after the Rudd government made changes in the budget, we were told was going to founder because there was not going to be enough uptake. There has been quite the reverse. What we have in fact found is that this program has been so popular that additional funding that was not envisaged has been brought forward to meet the high demand. This is good for Australia. This means that we have people taking advantage of the Solar Homes and Communities Plan. This means that in terms of renewable energy, Australians are keen to move in that direction where they have an opportunity and government incentive.

There is $61.6 million being made available to assist small block irrigators in the Murray-Darling Basin affected by drought who wish to cease irrigation farming but stay on the farm. The Department of the Environment, Water, Heritage and the Arts will receive $57.1 million and the Department of Agriculture, Fisheries and Forestry will be provided with $4.5 million. For the Department of Agriculture, Fisheries and Forestry, an additional $59.4 million will meet commitments for which funding was provided last financial year but, because of program delays, payments were not able to be made until the current year. From that funding, $43.4 million is proposed to fund drought assistance grants to irrigators in the Murray-Darling Basin and $16 million is proposed for the Tasmanian Community Forest Agreement to enable the department to meet commitments that were entered into in 2007-08.

Again, these are important initiatives. These are initiatives that go to the green credentials of the Rudd government, initiatives that have been dramatically built upon in the legislation that is being debated in the main chamber at the moment, but which the opposition are seeking to reject, in relation to the latest stimulus package. But these earlier initiatives are very important for making sure that the commitments we made to renewable energy and to trying to repair some of the damage that has been done to the Murray-Darling Basin are commitments that we take very seriously. This appropriation bill, in part, provides funding for that as well.

The Department of Innovation, Industry, Science and Research will be receiving an additional $93.3 million, and that is proposed to meet the increased cost of the LPG Vehicle Scheme arising from the additional customers who are expected to access the scheme in 2008-09. It is good that the government is having to provide this additional money, because it shows that where this government has put in place incentives for the community to take on board new technology that is green, that is going to decrease the carbon footprint, Australians are not only willing but also eager to take it up. Again, it is an example of an oversubscribed scheme that needs to be topped up. There is $37 million for the Ethanol Production Grants program to meet an anticipated increase in expenditure due to the New South Wales government’s two per cent ethanol mandate, their expansions of the Manildra facility at Nowra and CSR’s facility at Sarina, and a new ethanol production facility at Dalby.

In the Department of Resources, Energy and Tourism there is a reallocation of $99.4 million for the establishment of a global carbon capture and storage institute. The institute will accelerate the take-up of carbon capturing projects by facilitating demonstration projects and identifying and supporting necessary research on related topics, including regulatory settings and regulatory frameworks. Funding in 2008-09 will be provided by the redirection of amounts from the National Low Emission Coal Initiative, formerly known as the National Clean Coal Fund. This additional funding is also partially offset by savings in other programs.

Australian financial regulators, who in the last 18 months have been under more scrutiny than ever before, will receive $21.5 million in 2008-09 and $83 million over the next four years to help maintain the strength of Australia’s financial system during the global financial crisis. This will provide the Australian Prudential Regulation Authority with an additional $9 million in 2008-09 to meet the increased demands being placed on it to undertake a range of additional supervisory services. The Australian Securities and Investments Commission will receive an additional $10 million to undertake market monitoring and enforcement activities, while the Department of the Treasury will receive $2.5 million to ensure Australia’s regulatory environment continues to be world’s best practice and to pursue reform of the global financial architecture. There is probably no more important time than now for this to be taking place—making sure that our regulators, who are amongst the best in the world, remain that way by making sure that we properly fund them.

The Department of Foreign Affairs and Trade is to receive $18.8 million to account for the impact of foreign exchange fluctuations. Again, this is an important appropriation that needs to be there. It helps our ability to make payments to both the international peacekeeping organisations and other international organisations on behalf of the Australian government. With its long-standing support of the UN and other multilateral peacekeeping and peace related operations, Australia has a good name in international peacekeeping. Australia continues that tradition today and is an active contributor of personnel and financial support to the UN and other multinational peace operations throughout the world.

Our personnel, both military and police, are currently present in countries including Cyprus, Egypt, Sudan and Timor Leste. This country’s peacekeeping roles also include being part of multilateral peace operations in the Solomon Islands. Australia is an active participant in efforts to further improve global peace operations. Australia’s contribution to global peace operations is a demonstration of our commitment to the UN Charter and efforts to resolve disputes through the international system. It is important that this work is done.

I would like to talk, in relation to Appropriation Bill (No. 4) 2008-2009, about the $300 million for the regional and local infrastructure program, of which $250 million is being distributed to local councils. In my electorate we have two councils, one of which, the Gosford Council, is predominantly in the electorate of my colleague the member for Robertson, with a small part in my electorate. The Wyong Shire Council is the shire council that covers the majority of my electorate. Both of these councils received around $1½ million out of this fund, which was a tremendous boost to them. In the Wyong shire amongst the programs that this is funding is an upgrade of the netball courts at Wyong. This is very important. The Wyong netball courts are amongst the busiest in New South Wales. By upgrading them and building new courts it will enable the area to put bids in for state championships and the like, as well as providing first-class facilities for the locals on a weekly and daily basis.

There was also money that went to the establishment, at Canton Beach, of a second disability playground, which is vitally important. Only last year, through fund raising and local government efforts in the Wyong shire, we established the first disability park on the Central Coast at Long Jetty. That was almost completed but a small amount of money coming from the $1½ million for Wyong shire will also go to complete the disability toilets at Long Jetty. Not only is this money providing local infrastructure in my electorate—and electorates right around Australia—but by doing so it is providing local jobs where they are needed in particular projects that are ready to go, starting to work right now.

It was interesting to gauge the response of the community and the elected council to this. The mayor of Wyong shire was absolutely lavish in his praise for this particular initiative, and could not say enough about this Rudd government initiative. One might ask: ‘Well, is this mayor a Labor mayor? It is Wyong shire; is this someone who has spent his life in the Labor Party and is his public appreciation of this initiative in some way a payback to the Labor Party?’ Quite the contrary; this particular mayor at one stage was the state Liberal Party member for The Entrance. But he can see—

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