Michael McCormack (Riverina, National Party, Parliamentary Secretary to the Minister for Finance) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Appropriation Bill (No. 2) 2014-2015, along with Appropriation Bill (No. 1) 2014-2015,which was introduced earlier, and Appropriation (Parliamentary Departments) Bill (No. 1) 2014-2015, are the budget appropriation bills for the 2014-15 financial year.

This bill seeks approval for appropriations from the Consolidated Revenue Fund of just over $8.4 billion.

I now outline the significant items provided for in this bill.

First, the Department of Communications would receive just over $3.2 billion once this bill commences as an act. This is required to provide funding to NBN Co to continue to roll out the National Broadband Network. This is in line with the government's updated Statement of Expectations.

Second, this bill would provide the Department of Defence with just under $2.5 billion in capital funding. This reflects in part the budget measure Defence funding profile,which bringsforward funding from 2017-18 and distributes it over the period 2013-14 to 2016-17, including $300 million in this bill. This funding will support important capabilities, including in the Approved Major Capital Investment Programme. The remaining $2.2 billion included in this bill provides funding for existing investment commitments.

Third, the bill would provide the Department of Infrastructure and Regional Development just over $564 million, reflecting four matters. Those are: to incorporate the government's new Bridges Renewal Programme; the Roads to Recovery programme; funding local councils for non-network road projects; and funding for Latrobe Valley economic diversification.

Fourth, the Department of Foreign Affairs and Trade would be provided with just under $294 million. This reflects a $200 million capital injection to the Export Finance and Insurance Corporation as well as $10.3 million in capital expenditure for Australian embassies in Kabul and Baghdad.

The bill would also increase the general drawing rights limit for general purpose financial assistance payments to $5 billion and the general drawing rights limit for national partnership payments to $25 billion. These limits are being increased in prudent anticipation of forward expenditure in priority policy areas such as infrastructure, and will give the Commonwealth capacity to respond to changing circumstances.

Details of the proposed expenditure are set out in the schedules to the bill and the portfolio budget statements tabled in the parliament.

Debate adjourned.