EMBARGOED UNITIL DELIVERY,
PARLIAMENTARY STATEMENT BY THE PRIME MINISTER
ON THE ECONOMY AND EMPLOYMENT
THURSDAY, 14 NOVEMBER 1991
Mr Speaker, A~
Australia today is at a point of t"* storic ~ onvergenq6 the
hurt of the recession is at its Pbint of maximum impact;
yet, simultaneously, and by no me" 4 Voinc~ tfbal the
gains and rewards of the long hard 99ss o6 btructuring
are within our grasp.
The immediate focus of this Statement is on the problem of
unemployment. But through that prism, I want today to look
ahead to the prospects and promise for this nation.
In this Statement today I bring to the people of Australia a
message of fundamental confidence. It is a message grounded
firmly on the facts, not only the factual evidence of
recovery, but: upon the most important fact of all that the
work of this Government over the years, and the response of
the Australian people, have brought us together to the
threshold of a new era of achievement.
In the specific context of unemployment, let me begin with
this unqualified assertion: this Labor Government has an
unalterable commitment to preventing the present levels of
unemployment from becoming a permanent feature of the
Australian economy and the Australian society. I say to
this House what I have said repeatedly outside: I have not
spent the whole of my thirty-three years in public life in
the Labor Movement of Australia to acquiesce in allowing the
present high levels of unemployment to continue.
Mr Speaker,
Some weeks ago, I initiated an examination of what action
the Government could take to respond to the current severe
unemployment situation. In the same period, the
ParliamentaryF Labor Party's Working Group on Unemployment
under the Chairmanship of the Honourable Member for Page, Mr7
Harry Woods, has worked with great diligence to produce a
constructive report. Further, in accordance with
undertakings I gave in my address to the ACTU Congress in
September, I met with representatives of the ACTU on
29 October to consider their proposals to alleviate
unemployment. I have also had the benefit of consultation
within the Economic Planning Advisory Council.
As an outcome of our analyses and these consultations, I
shall be detailing, later in this Statement, measures
related to the unemployment problem.
These measures build on the strategy for reducing
unemployment already put in place by the Budget.
2.
The measures include:
initiatives in the post-secondary area to ensure
that our young men and women have access to
training, in the long-term-as well as in the
shorttp-rm. High quality investment in additional
training now will deliver a workforce better
suited to the challenges of the future;
a further expansion of labour market programs to
assist the unemployed obtain and upgrade skills.
This will not only help prepare for the recovery
but will ensure a proper safety net is provided
for those who have been most affected by the
recession; the acceleration of infrastructure projects in the
areas of road. rail, post-secondary education, and
snienca, with benefits for our traded goods
industries and for the quality of teaching and
research in our educational and scientific
institutions; and
facilitation of the development of new industries
and restructuring of existing industries.
These measures total some $ 313 million in calendar year
1992. They are measures which meet the critical tests of
advancing our economic strategy, while maintaining the
integrity of the Budget.
Since the Budget, we have been carefully watching economic
developments to ensure that the Budget strategy for
sustainable recovery with low inflation is on track. It is
on track, and we are determined that it stay on track. This
Government will not be diverted from its fundamental
economic strategy and its goals:
sustainable recovery to provide sustainable job
growth, and rising living standards
and, above all, the goal of building an
internationally competitive economy.
Mr Speaker,
There may be some who would argue that the Government,
satisfied as we are that the fundamental economic strategy
is on track, should pay no regard to the representations of
the ACTU, and others, on the matters dealt with in this
Statement.
Not only do 3: reject that argument, but I go further. The
very fact that our strategy is on track the fact that the
great objective of creating a restructured, low inflation,
international~ ly competitive, economy is now within our grasp
is in larget measure a result of the constructive cooperation
and restraint that has been practised by the
working men and women of Australia. That is, precisely, a
reason to listen to those who represent them.
Their members have experienced unemployment, not only
through the recession, but through the process of long-term
industrial restructuring we are pursuing.
Yet in the representations they have made to us they have
not asked for this process to be slowed. They understand,
accept and are committed to its continuation, in the
knowledge that it is in the long-term interest of their
country. And, of course, Mr Speaker, the views of the union movement
reflect the growing concern at all levels of the community,
as the statistical projection of unemployment of more than
per cent, made in May, has become the harsh reality.
Nobody feels this concern more deeply than I. It is a
concern fully shared by every member of my Government. That
is why we accept it as our inescapable duty to take whatever
action we responsibly can to restore sustainable job growth
as soon as possible.
Given this Government's unsurpassed record of job creation
since 1983, there can be no doubt about our commitment to
this goal and our capacity to achieve it. This is a
Government which from its inception has been absolutely
committed to sustainable job growth.
Mr Speaker,
Budget-time forecasts were for growth of around
3 3/ 4 per cent through the course of 1991-92. The main
sources Of gr. owth were expected to be business restocking,
housing investment, and moderate growth in private
consumption. Net exports were also expected to contribute
to growth. I
Indicators available since the Budget support those
forecasts: we are coming out of recession. The early
stages of recovery are clearly evident in the trend growth
now apparent in the housing and retail sectors, and there
are now positive signs pointing to recovery in other
sectors. BuiLlding approvals for private dwellings increased
by around 15 per cent in the September quarter. Retail
sales have shown renewed strength, growing by 2.9 per cent
in real term.; in the September quarter. Indexes of consumer
sentiment are significantly above their levels of a year
ago. Business surveys indicate that the outlook for sales,
profits, and investment is beginning to improve.
Our international trading performance has improved markedly.
We are on track to record a current account deficit in the
order of $ 14 billion in 1991-92, considerably lower than in
recent years both in absolute terms and as a proportion of
GDP. While unemployment has reached unacceptable levels, the
level of employment has stabilised in the last four months,
halting the falls in employment that have been occurring
since mid-1990. The recent improving trend in full-time
employment is encouraging.
All this is consistent with the view that the economy is in
the early stages of recovery. This is not to deny that
unemployment may rise further. But the essential point is
that the evidence of the recovery has begun to appear.
Mr Speaker,
A central objective of the Budget strategy is to ensure
that, as the recovery proceeds, the Budget will move back
into surplus. This will free national savings for
productive investment by the private sector. In this way,
the current account will be safeguarded and the economy set
on a sustainable growth path.
Since the Budget was drawn up, the immediate risk that
private calls on national savings would grow faster than
public calls were falling has lessened. This lessening is
attributable to two main factors:
first, the forecast reductions in inflation have
been factored into community expectations more
rapidly than we had hoped;
and second, there has been a worsening of the
drought, leading us to be less sanguine about
prospects for the rural sector.
These domestic developments have taken place against the
background of some uncertainties about the economic
prospects for our major trading partners.
The changes have not been of a magnitude to cause us to
revise the Budget forecasts for overall activity. However,
they have reduced the risk that any supplementary measures
would see the public sector's call on national resources
become unsustainably high. This reduced risk is
particularly true of measures targetted to the period
immediately ahead.
In short, there is now some scope to do more to prepare for
new jobs and opportunities.
But, Mr Speaker, we must continue to recognise the limits
which responsible economic management imposes, at this
critical point in the recovery.
To fail to doi so would be to throw away the real gains which
underlie the present economic situation, and which underpin
the splendid prospects ahead for this nation, as a strong,
competitive, low inflation economy, enmeshing itself in the
economies of the world's fastest growing region.
To maximise the benefit to the economy at this stage of the
cycle, the measures I announce today are concentrated in
calendar year 1992, and wherever possible, in the first half
of 1992.
EDUCAT ION AND TAIN~ ING
Mr Speaker,
I have said that a major thrust of these measures is
directed towards expansion of education and training
programs. In this area, I announce today proposals involving gross
expenditure in calendar year 1992 of $ 130 million.
Education and. training are basic to the Government's
strategy of building a competitive Australia. And they are
basic to the more immediate hopes and aspirations of many
thousands of individual Australians, especially among our
young people.
Community demand for education and training is at its
highest level ever. The proportion of our young people
remaining to the end of secondary school has virtually
doubled in a decade and student numbers at our universities
have risen by over 50 per cent.
A different situation, however, applies in vocational
education and training, including TAFE. While student
demand for TAFE and training has continued to increase
strongly, labour market conditions and budgetary priorities
of State Governments, who have the responsibility in this
area, have combined to limit the training opportunities made
available in this essential sector. In consequence, the
level of unmet demand for TAFE has risen steeply in recent
years. This situation demands urgent action. I may say, Mr
Speaker, that one of the major disappointments arising from
the Premiers' decision not to attend the Special Premiers
Conference in Perth next week is that it will make
resolution of these problems even more difficult.
The problem has been highlighted by the Finn Report on
Post-compulsory Education and Training. The Finn Report
poses major challenges for all Governments, State and
Commonwealth. We must respond to these challenges. It is
time TAFE took its rightful place within the education
system of Australia.
The Government has decided to provide extra funding in 1992
to enable additional enrolments in post-school education,
mainly in TAFE. In total, a sum of $ 115 million will be
provided for post-secondary education and training. A
further $ 15 million in higher education capital funding will
be brought forward from 1994. This additional funding will
be allocated mainly to provide additional TAFE places, and
to meet urgent needs for equipment and building
refurbishment in both TAFE and universities.
For 1992, the Government expects that these measures will
provide an additional 40,000 students with opportunities to
gain vocational skills. The States will be required at
least to maintain their expenditure in real terms in 1992,
pending the negotiation of longer term arrangements. They
have also agreed to co-operate in maximising the number of
places provided from the additional Commonwealth funding.
Looking to the longer term, the Commonwealth will continue
to pursue its offer to the States of a new set of funding
arrangements for vocational education and training, designed
to upgrade the capacity and status of our TAFE and training
institutions. I see this as an urgent national priority.
LABOUR MARKET PROG. RAMSq
Mr Speaker, the unemployed have borne the heaviest cost of
the recession. Despite the economic recovery which is now
underway, the number of long-term unemployed will continue
to rise for some time to come. If we are to harness in full
the opportunities provided by recovery, we must strengthen
the skills of job-seekers and particularly the long-term
unemployed. It makes economic sense to do so by ensuring
that skills shortages do not emerge during the recovery.
More importantly, social justice demands that we do so.
Today, I announce enhancements to the Employment Access
Program, Skillshare and the Self-Employment Assistance
program to enable larger numbers of the long-term unemployed
to obtain the skills needed to take advantage of new job and
business opportunities as these emerge from the recovery.
The enhancements will provide increased opportunities for
some 56,000 unemployed people in 1992, including:
an increase in training places that will prepare an
additional 31,000 people for labour market re-entry;
an increase in the JOBSTART program, providing an
additional 15,500 job subsidy placements;
an increase in the Special Intervention Program to
provide an additional 9,000 especially disadvantaged
with assistance early in their period of unemployment.
With these enhancements, in addition to those announced with
the implementation of the Newstart Program, at least 300,000
unemployed people will be assisted by the CES through labour
market programns in 1992.
This additional assistance will involve gross expenditure of
$ 78 million in 1991/ 92, and $ 124 million in 1992/ 93. This
will raise total labour market program expenditure from
$ 400 million in 1990/ 91 to an estimated $ 774 million in
1992/ 93.
ACCELERATION OF INFRASTRUCTURP SPENDING
We have ident~ ified areas where some major Commonwealth
infrastructure spending could be accelerated spending
which would have occurred anyway because of its essential
nature or high economic returns for the nation.
Today I announce expenditures totalling $ 112 million in
calendar year7 1992 to improve our economic infrastructure.
Such improvements will bear directly on the competitiveness
of our export: sector.
The task of internationalising the Australian economy
requires an internationally competitive transport
infrastructu3: e. This year, we have made major advances in
this area with the establishment of the National Rail
Corporation; the National Road Transport Commission; and
continuing rapid reform of our shipping industry and
dramatic developments in the reform of our waterfront
industry.
We will bring forward $ 82 million of roads expenditure on
the National Highway System and Arterial roads, and provide
million for what will become the rail network of the
NRC. This spending will provide industry with a better,
more efficient transport system. In doing so, it will
support the continued expansion of our export sector. At
the same time, it will provide a direct boost to employment
and confidence.
I also announce today that we will provide $ 10 million
immediately -to CSIRO to upgrade its facilities. These funds
will be fully spent in 1992. This decision will ensure that
CSIRO researchers will have the physical infrastructure
necessary to maintain their vital work.
INDUSTRY DEVRLOPMENT
The Government is acutely aware of the problems that are
being encountered as the Australian economy undertakes its
essential restructuring: our exporters are entering new, highly competitive
markets;
many of our traditional firms are confronting
radical change and a requirement to make
substantial new investments;
new firms are struggling to establish themselves
and often new technologies.
Today I announce measures designed to assist in each of
these areas.
The Government will allocate an additional $ 10 million to
the Development Import Finance Facility ( DIFF) in 1992. The
funds will enable us to offer finance to Australian firms
for significant new projects in China, India and South East
Asia. The decision will allow the DIFF to meet more of the demand
on its funds. The existing backlog meant that projects in
power, communications, transport and resource processing had
been held over. In all those sectors, Australia is rapidly
establishing international competitiveness.
Mr Speaker,
Since my March Statement, a number of companies in the
textile, clothing and footwear industries have demonstrated
their commitment to the Government's objective of creating
strong and viable industries industries which will be
competitive and in which jobs will be secure.
To reinforce this commitment, the Government will bring
forward $ 15 million in calendar year 1992, to be available
for restructuring purposes approved by the Textile Clothing
and Footwear Development Authority.
The Australian Industry Development Corporation ( AIDC) has
recorded a profit of $ 9.6 million for 1990-91. The
Corporation has asked to retain this profit as additional
capital to help meet the demand for equity in new project
development. We recognise that additional capital is needed
particularly for new investments in resource processing.
The Government has therefore agreed that the profit should
be retained by the Corporation.
The Government has also decided to extend the Commonwealth
guarantee on the Corporation's liabilities to 1998. This
recognises the importance of the Corporation's role in
industry development, by enabling it to minimise its
borrowing costs.
In the March Statement, I announced a major extension of
sales tax exemptions available to business. The legislation
is currently before the Senate. Allowing for the flow-on
effects of reducing costs earlier in the production chain,
the exemptions will provide a total benefit to business of
more than $ 1 billion in a full year.
Mr Speaker,
My Statement today focuses, and properly does so at this
time, on the matter of most immediate concern to the people
of Australia, the problem of unemployment. I do not seek to
disguise the magnitude of the problem. And we should all
acknowledge the fact that even when the recovery is fully
underway, and job growth restored, substantial reduction of
unemployment levels will take time. To grasp this reality,
one only has to recall the post-recession experience last
time. Even w. hen this Government had achieved average job
creation of 230,000 a year, as it did over the period to
mid-1990, the: associated fall in unemployment was gradual
compared with the spectacular growth in jobs.
But in acknowledging that, let me say, Mr Speaker, it is
time, beyond time, to stop talking down the Australian
economy. The central fact is that the Budget strategy is on
course. The economy is recovering. And we will emerge from
the recession with a stronger economy than before.
Let me illustrate this truth by pointing to the results of
the structuraEl reforms we have already achieved.
Exports Of ma~ nufactured goods have increased by 112 per cent
in real terms since 1983-84. Within manufacturing, exports
of manufactured metals have risen by 62 per cent and exports
of the more complex non-metal manufactured goods have
increased by 147 per cent. Over the same period, exports of
services have increased by 77 per cent.
The official OECD statistics show that Australia's
manufactured export performance in the past five years has
been by far t: he best in the OECD. They show that, in real
terms, annual growth of manufactured exports has averaged
over 15 per cent in-Australia compared with the OECD average
of 6 per cent. Australia's rate of manufactured export
growth has even outpaced that of the four Newly
IndustrialisiLng Economies of Asia South Korea, Taiwan,
Singapore and Hong Kong. These trends emerged well before
the recession and have continued throughout the recession.
These facts are a remarkable tribute to the drive and
initiative o~ f much of our business sector. It is a
performance which presents an example and a challenge to the
whole business community.
As I have indicated, the performance in many service areas,
notably tourism, has also been strong.
Overseas tourist arrivals have more than doubled in just
five years. The numbers are expected almost to treble again
by the year 2000, to around 6 million.
These projections lend compelling force to the Government's
decisions in relation to aviation.
Following yesterday's decision by Federal Cabinet to approve
the construction of a third runway at Sydney airport, the
Federal Airports Corporation expects preliminary work to
begin within a month and major construction contracts to be
let early next year.
As well as generating many thousands of sustainable new jobs
at the airport and in directly related activities in the
years ahead, the third runway will provide the capacity to
meet the projected strong growth in tourist traffic.
In addition, the Government will shortly examine a proposal
for the development of a general aviation airport at
Badgerys Creek, Sydney's designated international airport.
Based on preliminary design work already completed, it is
envisaged that this new aerodrome would be operational in
1994.
Mr Speaker,
The strong performance in the manufacturing and service
industries has been buttressed by the continuing strength of
the mining sector.
My Government has recently announced a new process aimed at
encouraging major development projects including mining and
minerals processing, agriculture and forestry.
The process for approving major projects in these areas will
be speeded up, although I emphasise that proper
environmental standards and Aboriginal and heritage issues
will not be by-passed.
The strength of the manufacturing, services and mining
industries stands in sharp contrast to the current plight of
the rural sector.
Many farmers have been hit by drought, compounding the
severe downturn in farm prices, caused mainly by the trade
war between the European Community and the United States.
As part of our commitment to easing the burden on the rural
sector, the Government has massively increased funding for
the Rural Adjustment Scheme from $ 62 million in 1990-91 to
$ 173 million in 1991-92. Further, we have just announced
arrangements to link RAS assessments to social security
benefits. It has to be acknowledged, however, that enduring relief
will not occur unless there is liberalisation of
agricultural trade. The farmers of Australia can be assured
that this Government will continue to do all we can, in the
coming crucial weeks of the Uruguay Round, to ensure it
reaches a successful conclusion.
Mr Speaker,
As I said at the outset, we now have an historic opportunity
to move into the 21st century with a dynamic, reinvigorated,
modern Australian economy. We have a unique opportunity to
break the cycle of boom and bust. We have the opportunity
to become one of the vibrant growth economies of the Asia-
Pacif ic region.
To seize this historic opportunity, we as a Government and a
nation must embrace a set of key objectives and policies,
designed to reinforce and accelerate the
international. isation of the Australian economy.
Australia's course is clear:
We must lock in the gains of low inflation. We must keep
our nerve and resist demands for artificial solutions to the
recession. We must ensure that new investment continues to flow into
our competitive, international industries with the economic
recovery. We must continue the vigorous pursuit of micro-economic
reform. We must continue the thrust towards the " Clever Country".
We must continue to assert maximum possible pressure for a
successful conclusion to the Uruguay Round of Multilateral
Trade Negotiations.
We must, consistent with the commitment to growth, maintain
in perpetuity our matchless environmental assets through
policies for ecologically sustainable development.
That is this Government's national agenda for growth and
reform. It is an agenda for jobs. It is an agenda for
lasting, sustainable growth.
The measures I have announced today advance that agenda.
So today, Mr Speaker, I convey to the people of Australia a
message of hope and confidence in the future of our great
and unique nation. There is, simply, no nation in the world
so well-placed by virtue of its inner resources its
material resources, certainly, but much more important, its
human, social and political resources to weather the
present storms, at home and abroad, and emerge from them,
not only secure, but strengthened. Now is a time for
strength of purpose, to ensure that Australia emerges from
the recession with resilience, assured of its abilities,
confident that it can take its place as a leading competitor
in a tough, competitive world.
12.
For our part, we in the Labor Government will not falter.
We owe that to those who have suffered through the
recession. We owe it to all Australians. We owe it to the
splendid future which is within the grasp of Australia, as
we move towards the 21st century together.
STATEMENT ON THE ECONOMY
AND EMPLOYMENT
14 NOVEMBER 1991
SUPPORTING INFORMATION
1. SUMMARY OF MEASURES 1
2. DESCRIPTIONS OF THE MEASURES
OUTLYS MEASURES
2.1 Labour Market Programs 2
2.2 Education and Training Programs 3
2.3 Transport Infrastructure 3
2.4 Science 4
Industry Development
2.6 Australian Broadcasting Corporation 6
REVENUE MEASURES
2.7 Australian Industry Development Corporation 6
3. CHANGES TO THE 1991-92 BUDGET ESTIMATES 7
1. SUMMARY OF MEASURES
DESCRIPTION OF MEASURE Calendar Estimated effect on outlays
1992 1991-92 1992-93 1993-94 1994-95
Sm Sm Sm Sm $ m
OUTLAYS MEASURES
1. Labour Market Programs
Expansion of Employment Access Program 110.3 61.4 97.7
Expanded Self Employment Assistance Program 7.6 3.7 7.8
Additional Skilishare Places 22.6 13.4 18.4
less Unemployment Benefit Offset -76.4 -44.2 -64.4
Total Labour Market Programs 64.1 34.3 59.5
2. Education and Training Programs
Initiatives in Post-Secondary Education and Training 115.0 57.5 103.8 94.1 96.9
AUSTUDY to support additional places 18.5 9.1 18.8 19.3 19.9
Additional higher education capital 15.0 6.9 8.1 -7.8 -8.1
less Unemployment Benefit Offset -46.7 -23.1 -47.6 -49.1 -50.5
Total Education and Training Programs 101.8 50.4 83.1 56.5 58.2
3. Transport Infrastructure
Roads expenditure 82.0 60.0 22.0 -41.0 -41.0
Rail investment 20.0 6.0 14.0
Total Transport Infrastructure 102.0 66.0 36.0 -41.0 -41.0
4. Science ( CSIRO) 10.0 4.0 6.0
Industry Development
TCF Development Authority 15.0 10.0 10.0 -10.0 -10.0
DIFF 10.0 5.0 5.0
Total Industry Development 25.0 15.0 15.0 -10.0 -10.0
6. Australian Broadcasting Corporation 0.7 0.2 1.0 1.5
TOTAL OUTLAYS 303.6 169.9 200.6 9.5 8.7
Calendar Fiscal
1992 1991-92
Sm Sm
REVENUE MEASURES
7. AIDC dividend not to be determined for 1990-91 9.6 9.6
TOTAL REVENUE FORGONE 9.6 9.6
TOTAL MEASURES 313.2 179.5 200.6 9.5 8.7
Notes: zero
All costs are based on 1991-92 Budget parameters
2. DESCRIPTION OF THE MEASURES
OUTLAYS MEASURES
1. LABOUR MARKET PROGRAMS
Cost of measures: Calendar 1991-92 1992-93 1993-94 1994-95
1992 $ m$ mn $ m $ m
EAP 110.3 61.4 97.7
( ii) SEAP 7.6 3.7 7.8
( iii) Skiilshare 22.6 13.4 18.4
OFFSETS -76.4 -44.2 -64.4
NET COST 64.1 34.3 59.5
Additional funds for Employment Access Program ( EAP), Self Employment Assistance Program
( SEAP) and Formal Training Assistance ( FTA) for the Skilishare program will increase the
opportunities for unemployed persons, particularly the long-term unemployed, to access training and
other programs appropriate to the current labour market conditions. The measures are additional to the
$ 210m increase in the Budget in allocations to this area for 1991-92.
Expansion of the Employment Access Program will allow greater numbers of jobseekers to undertake
training to equip them with skills relevant to longer term labour market requirements. An increase in
JOBSTART funds is also provided.
Increased funding of the Self Employment Assistance Program will allow 500 additional placements
for supported self-employment opportunities for the unemployed in 1991-92 and 1992-93.
Additional Formal Training Assistance ( FTA) for Skillshare provides for greater numbers of long-term
unemployed to undertake training courses for which FTA is payable under the Skillshare program.
The costs of the above measures are partly offset by reductions in unemployment benefits outlays.
2. EDUCATION ANID TRAINING PROGRAMS
Cost of measures: Calendar 1991-92 1992-93 1993-94 1994-95
1992
Post Secondary 115.0 57.5 103.8 94.1 96.9
( ii) AUSTUDY 18.5 9.1 18.8 19.3 19.9
( iii) Higher Education Capital 15.0 6.9 8.1 -7.8 -8.1
OFFSETS -46.7 -23.1 -47.6 -49.1 -50.5
NET COST 101.8 50.4 83.1 56.5 58.2
Increased allocations for additional places and capital refurbishment in the post secondary education
and training sectors will increase opportunities for school-leavers, from the 1992 calendar year. These
increases are an initial Commonwealth response to the level of unmet demand for training, and the
findings of the Finn Committee which identified the need for significant increases in the levels of
training. Normal income support associated with these places will be provided under AUSTUDY
Additional funds will also be advanced from 1994 for small scale renovations in higher education
institutions. These projects are funded on a dollar for dollar basis with institutions.
The costs of these measures are partly offset by reductions in unemployment benefits outlays from
higher student numbers.
3. TRANSPORT INFRASTRUCTURE
Roads Expenditure
The Government has decided to bring forward into 1992, $ 82m of funding for national highways and
arterial roads.
Cost of Measure: Calendar 1991-92 1992-93 1993-94 1994-95
1992
82.0 60.0 22.0 -41.0 -41.0
The increased allocation of funds in 199 1-92 and 1992-93 should enable an increase in construction
and maintenance activity o'n a number of roads in all States and Territories in 1992. Approximately
will be spent on the National Highway System, the balance being national arterials and other
significant roads. The State distribution of funding is NSW $ 21.0m, Victoria $ 16.5m, Queensland
$ 16.0m, WA $ 11.0m, SA $ 11.0m, Tasmania $ 3.5m, NT $ 2. Om and ACT
Rail Investment
Cost of Measure: Calendar 1992
20.0 1991-92 1992-93 1993-94 1994-95
14.0
An amount of $ 20m is to be ' made available to NSW and ' Victoria to accelerate priority capital
upgrading of the rail network which will underpin the operations of the National Rail Corporation
( NRC). The Commonwealth will be seeking the agreement of the other participants in the NRC to
these funds being recogn~ sed as part of the Commonwealth's equity contribution to the National Rail
Corporation. 1991-92 1992-93 1993-94 1994-95
To further accelerate the program to restore CSIRO properties, $ 10m is allocated in calendar year 1992
additional to the $ 10.7m 2announced in the Budget.
4. SCIENCE
CSIRO
Cost of Measure: Calendar 1992
10.0
INDUSTRY DEVELOPMENT
Textiles, Clothing and Footwear Development Authority ( TCFDA)
Cost of Measure: 1992 15.0 1991-92 1992-93 1993-94 1994-95
10.010.0-10.0-10.0
In the March 1991 Statement " Building A Competitive Australia" the Government recommitted itself
to the provision of up to $ 120m through the Industries Development Strategy for the TCF industries
over the period to 30 June 1995. A number of companies have been in discussions with the
Government and acceleration of the release of funds is warranted. ( Currently $ 15m per annum is
provided in the Forward Estimates for 1991-92 and 1992-93.) Projects approved by the TCFDA to be
assisted under this Strategy will be announced by the Minister for Industry, Technology and Commerce
in due course.
Development Import Finance Facility ( DIFF)
Cost of Measure: 1992 10.0 1991-92 1992-93 1993-94 1994-95
DIFF assists Australian exporters of capital goods and services to compete against aid supported
foreign suppliers in developing countries for government-owned, developmentally sound projects.
DIFF takes the form of an aid grant which is used to soften the interest and payment terms of an export
credit loan provided by thie Export Finance and Insurance Corporation ( EFIC) to fund a development
project. Projects are selected in consultation with the recipient developing country to ensure that they
have the highest developmental priority.
6. AUSTRALIAN BROADCASTING CORPORATION ( ABC)
Southbank Building Project ( Melbourne)
Cost of Measure: Calendar 1992 $ m
0.7 1991-92 1992-93 1993-94 1994-95
The Government is to provide an interest subsidy to the ABC to enable borrowings of up to $ 15m to be
made for this project estimated to cost $ 44.5m. The subsidy ( up to $ 1.5m per annum) will cover
delay in the rationalisation in th6 Corporation's property portfolio in Melbourne and will ensure that
construction of the project proceeds immediately.
REVENUE MEASURES
7. AUSTRALIAN INDUSTRY DEVELOPMENT CORPORATION ( AIDC)
Cost of Measure: 1992 9.6 1991-92 1992-93 1993-94 1994-95
The AIDC has determined its 1990-91 profit as $ 9.6m. The Government has agreed that the profit be
retained in the Corporation to expand its scope for supporting development projects, rather than
returned as a dividend to the Commonwealth as occurred in the previous year. ( The 1991-92 Budget
estimated a return of $ 8.8m.)
3. CHANGES TO THE 1991-92 BUDGET ESTIMATES
The following table presents an update of the 1991-92 and forward years estimates published at the
time of the 1991-92 Budget. The purpose of the table is to reflect the effect of decisions taken by the
Government since the 1991-92 Budget was brought down. The estimates are based on the parameters
underlying the 1991-92 Budget time estimates.
CHANGES TO 1991-92 ] BUDGET AND FORWARD ESTIMATES ( a)
1991-92 1992-93 1993-94 1994-95
Estimate Estimate Estimate Estimate
$ m Sm $ m $ m
PUBLISHED BUDGET AND FORWARD ESTIMATES 101508 105705 109109 111102
Real growth over preceding year ( 01) 2.6 1.1 0.2 1
Outlays as proportion of GD)' ( 01) 25.7 24.9 24.2 23.2
Decisions Announced in Prime Minister's statement 170 201 9 9
Other decisions since the 1991-92 Budget 131 173 262 421
TOTAL DECISIONS 301 374 271 429
Public Debt Interest ( PDI) on all decisions since 1991-92 7 49 83 120
Budget TOTAL DECISIONS AND ]' DI 308 423 354 549
1991-92 REVISED AND UPDATED FORWARD 101816 106128 109463 111651
ESTIMATES ( d)
Real growth over preceding year 2.9 1.2 0.1
Outlays as proportion of GDP ( 01) 25.8 25.0 24.3 23.3
Totals may not add due to rounding
The more significant decisions are:
Changed arrangements to the Medicare/ GP reform package
Increase in funding for the Rural Adjustment Scheme and
income support for Farmers
Growth in Higher Education
Higher Education Capital funding
The rise in the level of ' Public Debt Interest is due to the
need to finance the increase inoutlays
Budget and Forward estimates' published in 1991-92 Budget
and updated for decisions taken since the Budget 58.9 104.7
40.7 24.6 89.6 11.6
0.2 0.1 24.9 77.4 90.9 3.7
70.4
158.4