PORTFOLIO BUDGET STATEMENTS BUDGET RELATED PAPER NO INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND LOCAL GOVERNMENT PORTFOLIO

Transcription

1 PORTFOLIO BUDGET STATEMENTS BUDGET RELATED PAPER NO INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND LOCAL GOVERNMENT PORTFOLIO BUDGET INITIATIVES AND EXPLANATIONS OF APPROPRIATIONS SPECIFIED BY OUTCOMES AND PROGRAMS BY AGENCY

2 Commonwealth of Australia 2010 ISBN This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the: Commonwealth Copyright Administration Attorney-General s Department 3-5 National Circuit BARTON ACT 2600 Website: Printed by CanPrint Communications Pty Ltd, Canberra

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4 Abbreviations and conventions The following notations may be used: N/A not applicable (unless otherwise specified) nfp not for publication $m $ million Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding. Enquiries Should you have any queries regarding this publication, please contact: Mr Paul Wood Chief Financial Officer Department of Infrastructure, Transport, Regional Development and Local Government Phone: (02) Fax: (02) paul.wood@infrastructure.gov.au A copy of this document can be located on the Australian Government Budget website < or on the Department of Infrastructure, Transport, Regional Development and Local Government website < iv

5 USER GUIDE TO THE PORTFOLIO BUDGET STATEMENTS v

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7 USER GUIDE The purpose of the Portfolio Budget Statements (PBS) is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. Agencies receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources. A key role of the PBS is to facilitate the understanding of proposed annual appropriations in Appropriation Bills No. 1 and No. 2, In this sense the PBS are Budget related papers and are declared by the Appropriation Acts to be relevant documents to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act The PBS provides information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills. As required under section 12 of the Charter of Budget Honesty Act 1998, non-general government sector entities are not consolidated into the Commonwealth general government sector fiscal estimates and accordingly, these entities are not reported in the PBS. vii

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9 CONTENTS Portfolio Overview... 1 Infrastructure, Transport, Regional Development and Local Government Portfolio Overview. 3 Agency Resources and Planned Performance... 7 Department of Infrastructure, Transport, Regional Development and Local Government... 9 Australian Maritime Safety Authority Australian Transport Safety Bureau Civil Aviation Safety Authority Glossary Abbreviations Index ix

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11 Portfolio Overview PORTFOLIO OVERVIEW 1

12 Portfolio Overview 2

13 Portfolio Overview INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT AND LOCAL GOVERNMENT PORTFOLIO OVERVIEW MINISTERS AND PORTFOLIO RESPONSIBILITIES The Infrastructure, Transport, Regional Development and Local Government portfolio contributes to the well-being of all Australians through the following outcomes: Department of Infrastructure, Transport, Regional Development and Local Government: Outcome 1: Improved infrastructure across Australia through investment in and coordination of transport and other infrastructure. Outcome 2: An efficient, sustainable, competitive, safe and secure transport system for all transport users through regulation, financial assistance and safety investigations. Outcome 3: Coordinated community infrastructure and services in rural, regional and local government areas through financial assistance. Australian Maritime Safety Authority: Outcome 1: Minimise the risk of shipping incidents and pollution in Australian waters through ship safety and environment protection regulation and services and maximise people saved from maritime and aviation incidents through search and rescue coordination. Australian Transport Safety Bureau: Outcome 1: Improved transport safety in Australia including through: independent no blame investigation of transport accidents and other safety occurrences; safety data recording, analysis and research; and fostering safety awareness, knowledge and action. Civil Aviation Safety Authority: Outcome 1: Maximise aviation safety through a regulatory regime, detailed technical material on safety standards, comprehensive aviation industry oversight, risk analysis, industry consultation, education and training. These outcome statements remain unchanged from the Portfolio Budget Statements (PBS). The PBS focus on the activities of the portfolio s General Government Sector agencies. These agencies and their websites are: Department of Infrastructure, Transport, Regional Development and Local Government < Australian Maritime Safety Authority < Australian Transport Safety Bureau and Civil Aviation Safety Authority < The Department of Infrastructure, Transport, Regional Development and Local Government (the Department) is accountable to the Minister for Infrastructure, Transport, Regional Development and Local Government, the Hon Anthony Albanese MP, the Parliamentary Secretary for Western and Northern Australia, the Hon Gary Gray AO MP and 3

14 Portfolio Overview the Hon Maxine McKew MP, Parliamentary Secretary for Infrastructure, Transport, Regional Development and Local Government. The Department provides policy advice to the Minister and Parliamentary Secretaries and undertakes policy and regulatory functions and the delivery of administered items on behalf of the Government. AMSA is the national safety agency responsible for maritime safety, protection of the marine environment and aviation and marine search and rescue. The ATSB s primary function, to improve aviation, marine and rail safety, is underpinned by the Transport Safety Investigation Act 2003 (TSI Act). CASA s primary function is to conduct the safety regulation of civil air operations in Australia and the operation of Australian aircraft overseas. Further details on the goals, operations and operating environments of the Department, ATSB, AMSA and CASA can be found in the agency specific sections of the PBS and on the respective agency websites. ATSB, AMSA and CASA report directly to the Minister within their areas of responsibility, with the Department oversighting the policy context in which these agencies operate on behalf of the Minister. AMSA and CASA both have close linkages with the ATSB. A list of portfolio agencies, including agencies which are outside the scope of the PBS, will appear in the Department s Annual Report. 4

15 Portfolio Overview Figure 1: Infrastructure, Transport, Regional Development and Local Government portfolio structure and outcomes Minister for Infrastructure, Transport, Regional Development and Local Government The Hon Anthony Albanese MP Parliamentary Secretary for Infrastructure, Transport, Regional Development and Local Government The Hon Maxine McKew MP Parliamentary Secretary for Western and Northern Australia The Hon Gary Gray AO MP Department of Infrastructure, Transport, Regional Development and Local Government (Infrastructure) Secretary: Mike Mrdak Outcome 1: Improved infrastructure across Australia through investment in and coordination of transport and other infrastructure. Outcome 2: An efficient, sustainable, competitive, safe and secure transport system for all transport users through regulation, financial assistance and safety investigations. Outcome 3: Coordinated community infrastructure and services in rural, regional and local government areas through financial assistance. Australian Maritime Safety Authority (AMSA) Chairman: Leo Zussino Chief Executive Officer: Graham Peachey Outcome 1: Minimise the risk of shipping incidents and pollution in Australian waters through ship safety and environment protection regulation and services and maximise people saved from maritime and aviation incidents through search and rescue coordination. Australian Transport Safety Bureau (ATSB) Chief Commissioner: Martin Dolan Outcome 1: Improved transport safety in Australia including through: independent 'no blame' investigation of transport accidents and other safety occurrences; safety data recording, analysis and research; and fostering safety awareness, knowledge and action. Civil Aviation Safety Authority (CASA) Chairman: Dr Allan Hawke Director of Aviation Safety: John McCormick Outcome 1: Maximise aviation safety through a regulatory regime, detailed technical material on safety standards, comprehensive aviation industry oversight, risk analysis, industry consultation, education and training. 5

16 Portfolio Overview PORTFOLIO RESOURCES Table 1 shows the total new resources provided to the portfolio in the budget year, by agency. Table 1: Portfolio resources Appropriation Receipts Bill No. 1 Bill No. 2 Special Total $m $m $m $m $m Infrastructure Administered appropriations Departmental appropriations Total AMSA Administered appropriations Departmental appropriations Total ATSB Administered appropriations Departmental appropriations Total CASA Administered appropriations Departmental appropriations Total Portfolio Total Less amounts transferred within Portfolio Resources available within portfolio:

17 Agency resources and planned performance AGENCY RESOURCES AND PLANNED PERFORMANCE Department of Infrastructure, Transport, Regional Development and Local Government... 9 Australian Maritime Safety Authority Australian Transport Safety Bureau Civil Aviation Safety Authority

18 8 Agency resources and planned performance

19 Infrastructure Agency resources and planned performance Department of Infrastructure, Transport, Regional Development and Local Government Agency resources and planned performance 9

20 Infrastructure Agency resources and planned performance 10

21 Infrastructure Agency resources and planned performance Department of Infrastructure, Transport, Regional Development and Local Government Section 1: Agency overview and resources Strategic direction statement Agency resource statement Budget measures Section 2: Outcomes and planned performance Outcomes and performance information Section 3: Explanatory tables and budgeted financial statements Explanatory tables Budgeted financial statements Agency resources and planned performance 11

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23 Infrastructure Agency overview and resources SECTION 1: AGENCY OVERVIEW AND RESOURCES 1.1: STRATEGIC DIRECTION STATEMENT In accordance with the three outcomes outlined in the Portfolio Overview, the Department of Infrastructure, Transport, Regional Development and local Government (the Department) is responsible for providing policy advice and targeted research, delivering administered items and regulation for the following seven programs: infrastructure investment; transport security; surface transport; road safety; air transport; regional development; and local government. (These programs are described in detail in Section 2 of this document, Outcomes and Planned Performance ). The Department consists of seven business divisions, as well as the Office of the Inspector of Transport Security, that in aggregate deliver these programs. These business divisions are supported by the Corporate Services division. Employees are made available by the Department to assist the Infrastructure Coordinator who supports Infrastructure Australia in the performance of its functions. The Department also provides employees who support the International Air Services Commission. In addition, on behalf of the Minister, the Department oversights the policy context in which the Australian Maritime Safety Authority (AMSA), the Australian Transport Safety Bureau (ATSB) and the Civil Aviation Safety Authority (CASA) operate. In and beyond, the Department will continue to be at the forefront of the Government s efforts to build a more productive, liveable and sustainable Australia, particularly through strategic investment in transport and community infrastructure. Central to this is our role in delivering the Government s nation building agenda, including the Nation Building Program, which is helping support national and regional economic and social development. The Department is also delivering the Government s community development agenda, which is built upon stronger and more productive partnerships with local government and regional communities. This approach is embodied through our close engagement with new bodies such as the Australian Council of Local Government and Regional Development Australia, and through our delivery of initiatives such as the Regional and Local Community Infrastructure Program. The Department will play an important role providing the Government with policy advice to assist it to respond to new, emerging and critical issues affecting our stakeholders. These include: growing demand on Australia s transport network, contributing to strategies to manage projected population and demographic changes; the planning and development of 13

24 Infrastructure Agency overview and resources Australia s major cities, and tackling climate change. In addressing such challenges the Department will strengthen our engagement and partnership with stakeholders, and the users of our services. Other key priorities for include: supporting the Government s priorities for nation building infrastructure and future infrastructure investment decisions, including in relation to national ports and freight strategies and other transport systems; implementing the Government s vision for Australia s aviation sector as set out in the 2009 Aviation White Paper; undertaking detailed analysis and providing advice and support to the joint study on aviation capacity for the Sydney region; working across the Commonwealth, and with state and territory governments on urban issues, to help promote productivity, sustainability and liveability in our cities; continuing to work with states and territories on establishing single national regulators in surface transport; responding to the review of Australia s coastal shipping and maritime policies and revising the Navigation Act 1912; ensuring Australia is best placed to meet new and emerging challenges in transport security, including through delivery of the Government s enhanced security measures; and continuing to deliver well managed programs in support of community infrastructure needs and deepening the engagement and positive impact of the Commonwealth s role in northern and western Australia. At all times our work will recognise the importance of ongoing effective delivery of our vital regulatory and program functions, whilst maintaining and enhancing our policy capability. 14

25 Infrastructure Agency overview and resources 1.2: AGENCY RESOURCE STATEMENT Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification. Table 1.1: Agency resource statement - Budget estimates for as at Budget May 2010 Estimate of prior year amounts available in Proposed at Budget = Total estimate Actual available appropriation Ordinary annual services (a) Departmental Prior year Departmental appropriation (b) Departmental appropriation (c) s31 relevant agency receipts (d) Total Administered expenses Outcome Outcome (b) Outcome Payments to CAC Act bodies Total Total ordinary annual services A Other services (e) Administered expenses Specific payments to States, ACT, NT and local government Outcome Outcome Outcome Total Departmental non-operating Equity injections Previous years' outputs Total Administered non-operating Administered assets and liabilities Payments to CAC Act bodies Total Total other services B Total available annual appropriations

26 Infrastructure Agency overview and resources Table 1.1: Agency resource statement Budget estimates for as at Budget May 2010 (continued) Estimate of prior year amounts available in Proposed at Budget = Total estimate Actual available appropriation Special Appropriations Special Appropriations limited by criteria/entitlement Australian Maritime Safety Authority Act s48(2) (f) Aviation Fuel Revenues (Special Appropriation) Act s4 (f) Interstate Road Transport Act s Local Government (Financial Assistance) Act s19 Protection of the Sea (Oil Pollution Compensation Fund) Act s40(4) Total Special Appropriations C Total Appropriations excluding Special Accounts Special Accounts (g) Opening balance Non-Appropriation receipts (h) Appropriation receipts (i) Total Special Accounts D Total Resourcing A+B+C+D Less appropriations drawn from annual or 0 ( ) ( ) ( ) special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations Total net resourcing All figures are GST exclusive. Estimate of prior year amounts represent funding for future liabilities, including employee entitlements and other creditors, and future asset replacement. Notes: (a) Appropriation Bill (No.1) (b) Estimated adjusted balance carried from previous year for annual appropriations. (c) Includes an amount of $8.0m in for the Departmental Capital Budget (refer to table for further details). For accounting purposes this amount has been designated as contributions by owners. Also includes $1.090m in for supplementation for prior year expenses. (d) s31 Relevant Agency receipts - estimate. (e) Appropriation Bill (No.2) (f) Relates to payments to Commonwealth Authorities and Companies Act 1997 (CAC Act) bodies. (g) Estimated opening balance for special accounts(less Special Public Money held in accounts like Other Trust Monies (OTM) and Services for other Government and Non-agency Bodies (SOG) accounts). For further detail on special accounts see Table (h) Non-Appropriation receipts from the Building Australia Fund Special Account. (i) Appropriation receipts from special appropriations. 16

27 Infrastructure Agency overview and resources Table 1.1: Agency resource statement Budget estimates for as at Budget May 2010 (continued) Third party payments from and on behalf of other agencies Payments made to CAC Act bodies within the Portfolio AMSA Appropriation Act (No.1) Appropriation Act (No.2) Australian Maritime Safety Authority Act s48(2) Total CASA Appropriation Act (No.1) Appropriation Act (No.2) Aviation Fuel Revenues (Special Appropriation) Act s Total Total payments made to CAC Act bodies within the Portfolio

28 Infrastructure Agency overview and resources 1.3: BUDGET MEASURES Budget measures relating to the Department are detailed in Budget Paper No. 2 and are summarised below. Table 1.2: Agency Budget measures Program All Expense measures Office of the Coordinator-General - continued operations (a) Administered expenses Departmental expenses ( 410) ( 250) ( 90) 0 0 Total ( 410) ( 250) ( 90) Moorebank Intermodel Terminal - implementation strategy (b) Administered expenses Departmental expenses Total Border Security - strengthening 2.1 passenger and air cargo security Administered expenses Departmental expenses Total National Transport Regulators establishment Administered expenses Departmental expenses Total Overseas development assistance - development partnership with Indonesia (c) 2.2 & 2.4 Administered expenses Departmental expenses Total Additional aviation capacity for the 2.4 Sydney region - development of an Aviation Strategic Plan Administered expenses Departmental expenses Total Remote Aviation Infrastructure 2.4 Fund - priority airstrips upgrades Administered expenses Departmental expenses Total Local government payments accelerating payments Administered expenses ( ) Departmental expenses Total ( )

29 Infrastructure Agency overview and resources Table 1.2: Agency Budget measures (continued) Program Expense measures (continued) Regional and Local Community 3.2 Infrastructure Program and Local Government Reform Fund - administration (d) Administered expenses Departmental expenses Total Total expense measures Administered ( ) Departmental ( 410) Total ( ) Capital measures Australian Rail Track Corporation - investment (e) Administered capital Departmental capital Total Australian Rail Track Corporation new projects to improve productivity (f) Administered capital Departmental capital Total Border Security - strengthening passenger and air cargo security 2.1 Administered capital Departmental capital Total Total capital measures Administered Departmental Total Prepared on a Government Financial Statistics (fiscal) basis. Agency overview and resources Notes: (a) The lead agency for this measure is the Department of the Prime Minister and Cabinet. The full measure description and package details appear in Budget Paper No. 2 under the Prime Minister and Cabinet portfolio. (b) Involves a reduction in funding of $32.225m in and $35.431m in for the Nation Building Program Investment administered item. As funding is related to payments to State and Territory governments, the reduction will be reported in Table 1.2 in the Treasury s Portfolio Budget Statements. The full measure description and package details appear in Budget Paper No. 2 under the Infrastructure, Transport, Regional Development and Local Government portfolio. (c) The lead agency for this measure is the Department of Foreign Affairs and Trade. The full measure description and package details appear in Budget Paper No. 2 under the Foreign Affairs and Trade portfolio. This measure is also reported by AMSA, CASA and ATSB in Table 1.2 for each agency within this PBS with funding being provided through the Department. (d) Provides funding to the Department of $1.5m in and $3.5m in Provision for this funding has already been included in the forward estimates. (e) Provides equity funding of $183.2m in to the Australian Rail Track Corporation Limited. (f) Provides equity funding of $996.0m over three years to the Australian Rail Track Corporation Limited. 19

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31 Infrastructure Outcomes and planned performance SECTION 2: OUTCOMES AND PLANNED PERFORMANCE 2.1: OUTCOMES AND PERFORMANCE INFORMATION Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years. Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of the Department in achieving Government outcomes. Figure 2.1: Outcome and program structure Outcome Outcome 1 (a) Improved infrastructure across Australia through investment in and coordination of transport and other infrastructure. Program 1.1 Infrastructure investment Outcome 2 An efficient, sustainable, competitive, safe and secure transport system for all transport users through regulation, financial assistance and safety investigations. 2.1 Transport security 2.2 Surface transport 2.3 Road safety 2.4 Air transport Outcome 3 Coordinated community infrastructure and services in rural, regional and local government areas through financial assistance. 3.1 Regional development 3.2 Local government Notes: (a) Program 1.2 Infrastructure investment coordination has been consolidated into program 1.1 Infrastructure investment. Infrastructure 21

32 Infrastructure Outcomes and planned performance Administered items The Department administers a range of items on behalf of the Government. The relationship between the Department s outcomes and its administered items are detailed in Figures 2.2 to 2.4. Figure 2.2: Outcome 1 Programs and administered items for Outcome 1 (a) Program 1.1: Infrastructure investment Nation Building Program - Nation Building Program Investment (b) - Nation Building Black Spot Projects (b) - Nation Building Heavy Vehicle Safety and Productivity (b) - Nation Building Roads to Recovery - Nation Building Off-Network Projects (b) Nation Building Plan for the Future (b) Notes: (a) Program 1.2 Infrastructure investment coordination has been consolidated into program 1.1 Infrastructure investment. (b) The Treasury is appropriated for payments to and through States and Territories for National Partnership payments. Further information on these programs can be found in Budget Paper 3 or Program 1.10 of the Treasury Portfolio Budget Statements. 22

33 Infrastructure Outcomes and planned performance Figure 2.3: Outcome 2 Programs and administered items for Outcome 2 Program 2.1: Transport security Aviation security enhancements - improving international aviation security - regional passenger screening Strengthening aviation security - optimal technologies at international gateway airports - regional and domestic aviation security - securing the air cargo supply chain Program 2.2: Surface transport Bass Strait Passenger Vehicle Equalisation Scheme International Maritime Organization contribution Interstate Road Transport Fees (a) National Transport Commission National Transport Reform OECD Road Transport contribution Oil Pollution Compensation Fund Tasmanian Freight Equalisation Scheme Tasmanian Wheat Freight Scheme Payments to CAC Act bodies - AMSA Program 2.3: Road safety keys2drive National Road Safety Council - contribution Seatbelts on regional school buses Program 2.4: Air transport Airport Lessee Companies reimbursement of parking fines Fort Street High School noise insulation (a) Implementation of noise amelioration for Adelaide Airport International Civil Aviation Organization contribution Payment scheme for Airservices Australia s en route charges Regional Aviation Access (b) Sydney West Airport rental properties Payments to CAC Act bodies - CASA Notes: (a) The Treasury is appropriated for payments to and through States and Territories for National Partnership payments. Further information on these programs can be found in Budget Paper 3 or Program 1.10 of the Treasury Portfolio Budget Statements. (b) The Regional Aviation Access administered item incorporates the Remote Aerodrome Safety, Remote Air Services Subsidy Scheme and the Remote Aviation Infrastructure Fund administered items. The Remote Air Services Subsidy Scheme and the Remote Aviation Infrastructure Fund administered items were reclassified from Outcome 3 - Program 3.1 Regional development with effect from 1 July

34 Infrastructure Outcomes and planned performance Figure 2.4: Outcome 3 Programs and administered items for Outcome 3 Program 3.1: Regional development (a) Better Regions East Kimberley Development Package (b) Jobs Fund - Bike paths Jobs Fund - Infrastructure Employment Projects (b) Regional and Rural Research and Development Grants Regional Development Australia committees Regional Partnerships Program 3.2: Local government Local Government Financial Assistance Grants Local Government Reform Fund (b) Regional and Local Community Infrastructure Program Supplementary funding to South Australian councils for local roads Notes: (a) The Remote Air Services Subsidy Scheme and the Remote Aviation Infrastructure Fund administered items were reclassified from 1 July 2010 and are now reported under Outcome 2, Program 2.4 Air Transport, Regional Aviation Access administered item. (b) The Treasury is appropriated for payments to and through States and Territories for National Partnership payments. Further information on these programs can be found in Budget Paper 3 or Program 1.10 of the Treasury Portfolio Budget Statements. 24

35 Infrastructure Outcomes and planned performance Outcome 1: Improved infrastructure across Australia through investment in and coordination of transport and other infrastructure. Outcome 1 Strategy Outcome 1 is delivered through the following program 1 : 1.1 Infrastructure investment Infrastructure investment will promote infrastructure across Australia through investment in and coordination of transport and other infrastructure. Contributing to this promotion will be a re-engagement with our cities. The State of Our Cities 2010 Report measures how productive, sustainable and liveable our cities are and provides guidance for nation urban policy. During and the forward years, the Department will: contribute to improved transport infrastructure decision-making and delivery through sound management and partnered decision-making with other jurisdictions, involving a range of administered items, including Nation Building Program Investment; and contribute to effective progress on the Council of Australian Governments (COAG) road reform plan which forms part of the COAG National Reform Agenda. During , Infrastructure Australia will: advise governments, investors and infrastructure owners on a wide range of issues, including Australia s current and future infrastructure needs; mechanisms for financing infrastructure investments; policy, pricing and regulation and their impact on investment and on the efficiency of the delivery, operation and use of national infrastructure networks: and advise on the development of regulative frameworks and the more efficient operation and delivery of infrastructure, to promote productivity improvements. Major initiatives during , which will continue into the forward years, include: implementing a range of land transport investment administered items as part of the Nation Building Program; implementing the Nation Building Memoranda of Understanding with the States and Territories covering land transport infrastructure investment until ; developing a National Ports Strategy; implementing an investment into the Australian Rail Track Corporation to facilitate a range of rail infrastructure upgrade projects intended to deliver productivity enhancements to rail transport and the environmental benefits associated with improved rail utilisation; developing a National Freight Strategy; and leading the States in developing capital city plans to meet National Objectives and Criteria for Future Strategic Planning of Capital Cities agreed by the COAG Cities Taskforce. 1 Program 1.2 Infrastructure investment coordination has been consolidated into program 1.1 Infrastructure investment. 25

36 Infrastructure Outcomes and planned performance In delivering the Outcome 1 programs the Department and Infrastructure Australia will consult extensively with relevant stakeholders including state, territory and local governments and industry. Following COAG s federal financial framework reforms the Treasury is responsible for National Partnership payments to and through the States and Territories. The Treasury holds the appropriation for these items and reports the financial details accordingly. The non-financial performance of the corresponding programs remains the responsibility of the Department. As a result, financial information for each affected program will not be complete for each financial year within a single Portfolio Budget Statement. 26

37 Infrastructure Outcomes and planned performance Outcome 1 expense and resource statement Table 2.1 provides an overview of the total expenses for Outcome 1, by program. Table 2.1: Budgeted expenses and resources for Outcome Estimated actual expenses Estimated expenses Program 1.1: Infrastructure investment Administered expenses Ordinary Annual Services (Appropriation Bill No. 1) Other Services (Appropriation Bill No. 2) Special Account Expenses not requiring appropriation in the Budget year Departmental expenses Ordinary Annual Services (Appropriation Bill No. 1) Revenue from independent sources (section 31) Expenses not requiring appropriation in the Budget year Total for Program Outcome 1 Total Outcome 1 totals by appropriation type Administered expenses Ordinary Annual Services (Appropriation Bill No. 1) Other Services (Appropriation Bill No. 2) Special Account Expenses not requiring appropriation in the Budget year Departmental expenses Ordinary Annual Services (Appropriation Bill No. 1) Revenue from independent sources (section 31) Expenses not requiring appropriation in the Budget year Total expenses for Outcome Average staffing level (number) Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. 27

38 Infrastructure Outcomes and planned performance Contributions to Outcome 1 Program 1.1: Infrastructure investment Program 1.1 Objective The Infrastructure investment program contributes to Outcome 1 by increasing the efficiency and safety of Australia s land transport infrastructure whilst strengthening the Australian economy. This is accomplished through the provision of policy advice to the Government, the delivery of a suite of administered items, and the work undertaken by Infrastructure Australia, supported by the Office of the Infrastructure Coordinator. Components of Program 1.1: (a) Infrastructure policy initiatives Infrastructure related policy advice covers a range of infrastructure matters including infrastructure priorities and regulatory barriers, along with support and input to COAG working groups and taskforces. In administering the Program, the Department s role is to ensure delivery of the Government s Nation Building infrastructure priorities in the land transport area. (b) Raising the standard of land transport infrastructure The economic and social outcomes for all Australians depend upon the land transport networks available to them. The Department manages the Nation Building Program and the Nation Building Plan for the Future administered items that are aimed at improving national land transport infrastructure to meet Australia s changing transport task. (c) Remedial road projects to improve safety and productivity The Department manages the Nation Building Black Spot Projects administered item which focuses on treating high-risk sites to reduce the number and severity of road crashes. The Department is also implementing the Nation Building Heavy Vehicle Safety administered item that will improve the safety and productivity of heavy vehicle operations across Australia. (d) Increasing the ability of local councils to improve land transport infrastructure The Department manages the Nation Building Roads to Recovery administered item which provides funding to local councils to improve transport infrastructure. (e) Major Projects Facilitation The Department provides a Major Project Facilitation service that assists strategically significant private sector projects to obtain coordinated decisions on necessary Government approvals and identifies any impediments to the investment proceeding. The service is tailored to suit each project, drawing on the Department s knowledge and experience of government processes. 28

39 Infrastructure Outcomes and planned performance (f) COAG Infrastructure Working Group and COAG Business Regulation and Competition Working Group The Department will contribute to the work of the COAG Infrastructure Working Group, which provides ongoing guidance, national coordination and support to Infrastructure Australia. COAG has defined a phased program of transport reforms being delivered, in particular, through the Australian Transport Council (ATC). The Department also leads and coordinates a range of policy and regulatory reforms to deliver COAG s requirements. This includes periodic reporting to the COAG Business Regulation and Competition Working Group. (g) COAG Road Reform Plan The COAG Road Reform Plan establishes a multi-year three phased research program to consider future heavy vehicle charging options. Together with other state and territory jurisdictions, the Department played a key role in the delivery of the Phase One action items of the Road Reform Plan. The Department will continue to contribute policy guidance, analysis and advice on the Phase Two action items to ensure COAG s objectives are achieved. Specific activities include: promoting the optimal use of infrastructure and urban systems identifying infrastructure and urban system priorities; and developing strategies to maximise the productivity of Australia s investment in infrastructure and its major cities. Administered Items Nation Building Program - Nation Building Program Investment (a) - Nation Building Black Spot Projects (a) - Nation Building Heavy Vehicle Safety and Productivity (a) - Nation Building Roads to Recovery - Nation Building Off-Network Projects (a) Nation Building Plan for the Future (a) Notes: (a) The Treasury is appropriated for payments to and through States and Territories for National Partnership payments. Further information on these programs can be found in Budget Paper 3 or Program 1.10 of the Treasury Portfolio Budget Statements. 29

40 Infrastructure Outcomes and planned performance Program 1.1 Expenses The changes in expenses from one year to the next are due mainly to the changing profile of the Nation Building Plan for the Future administered item Revised Budget Budget Forward year Forward year Forward year 3 Annual administered expenses Nation Building Program (a) Nation Building Program Investment (b) - Nation Building boom gates for rail crossings (b) - Nation Building Roads to Recovery - Nation Building Off-Network Projects (b) - Nation Building Off-Network supplementary (c) - Nation Building improving local roads Management of residual issues of former Australian National Railway Commission Special Account expenses Nation Building Plan for the Future (Building Australia Fund Infrastructure Portfolio Special Account) Program support Total program expenses Notes: (a) Excludes expenses relating to payments made to and through the States and Territories by the Treasury for the Nation Building Black Spot Projects and the Nation Building Heavy Vehicle Safety and Productivity administered items (refer to Program 1.10 of the Treasury Portfolio Budget Statements ). Also excludes expenses relating to prepayments reported by Treasury associated with prior year payments made to and through the States and Territories for the Nation Building Improving the National Network administered item. (b) Excludes expenses relating to payments made to and through the States and Territories by the Treasury (refer to Program 1.10 of the Treasury Portfolio Budget Statements ). (c) Excludes expenses relating to prepayments reported by Treasury associated with prior year payments made to and through the States and Territories (refer to Program 1.10 of the Treasury Portfolio Budget Statements ). 30

41 Infrastructure Outcomes and planned performance Program 1.1 Deliverables The following deliverables represent the goods and services produced and delivered by the program in meeting its objective. Deliverables Year Target Collaboration with state, territory and local governments to plan and evaluate land transport investments consistent with Government priorities. Deliver the Nation Building administered items in cooperation with state, territory and local governments. Number of funding recipients receiving Roads to Recovery funding. Completion of the Strategic Regional projects and approval of all Nation Building Off Network commitments Revised budget Ongoing refer to Budget Budget States report monthly on progress of investments and quarterly on program implementation Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget 50% of new projects approved Budget Payout of 100% funding for project progress Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget 565 councils receive funding Budget 561 councils receive funding Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget 53 projects completed. 80% projects approved Budget 69 projects completed Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget 31

42 Infrastructure Outcomes and planned performance Program 1.1 Deliverables (continued) Deliverables Year Target Efficient and effective oversight of the Australian Government s interest in the Australian Rail Track Corporation (ARTC). Efficient and effective management of administered items. Project management and governance practices recommended to ensure the implementation of identified infrastructure and urban system initiatives on time and within budget and scope Revised budget Not applicable Budget In collaboration with the Department of Finance and Deregulation, undertake and complete a review of ARTC s capital structure to be completed in Forward year 1 Timely advice to Government on ARTC performance Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget Ongoing refer to Budget Budget Items are administered in accordance with relevant legislation, published guidelines and ANAO guidance Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget Ongoing refer to Budget Budget All recommended practices adopted Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget 32

43 Infrastructure Outcomes and planned performance Program 1.1 Deliverables (continued) Deliverables Year Target Recommended pricing, regulatory and market reform. Analysis and prioritisation of infrastructure and urban initiatives. National Freight Strategy. National Ports Strategy Revised budget N/A Budget All recommended practices adopted Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget N/A Budget Recommendations endorsed by Australian governments Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget N/A Budget Recommendations considered by Australian governments Forward year 1 N/A Forward year 2 N/A Forward year 3 N/A Revised budget N/A Budget Recommendations considered by Australian governments Forward year 1 N/A Forward year 2 N/A Forward year 3 N/A. 33

44 Infrastructure Outcomes and planned performance Program 1.1 Key performance indicators The following key performance indicators, addressing key features of the program, measure the effectiveness of the program in meeting its objective. Key performance indicators Year Target Australian land transport networks are safer. Australian land transport networks are more efficient. States, territories and local governments are appropriately funded for network and off-network projects Revised budget Ongoing refer to Budget Budget Projects that improve road and rail safety are delivered Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget Ongoing refer to Budget Budget Projects that improve road and rail productivity are delivered Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget Ongoing refer to Budget Budget Payments are within 5% of forecast Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget 34

45 Infrastructure Outcomes and planned performance Program 1.1 Key performance indicators (continued) Key performance indicators Year Target Infrastructure and urban system initiatives are promoted in order to maximise economic development and productivity. Integrated infrastructure and urban system priorities are identified to address the local, regional and national needs of Australians. Demonstration projects and initiatives promote infrastructure efficiency and urban sustainability Revised budget Ongoing refer to Budget Budget Initiatives endorsed by Australian governments Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget Ongoing refer to Budget Budget Integrated infrastructure and urban system priorities identified for transport, energy, communications and water infrastructure Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget Revised budget Ongoing refer to Budget Budget Initiatives endorsed by Australian governments Forward year 1 Ongoing refer to Budget Forward year 2 Ongoing refer to Budget Forward year 3 Ongoing refer to Budget 35

46 Infrastructure Outcomes and planned performance Outcome 2: An efficient, sustainable, competitive, safe and secure transport system for all transport users through regulation, financial assistance and safety investigations. Outcome 2 Strategy Outcome 2 is delivered through the following programs: 2.1 Transport security 2.2 Surface transport 2.3 Road safety 2.4 Air transport Transport infrastructure connects Australians with domestic markets and the nation to the global economy and is a key determinant of our economic growth. Given the current global and local economic situation, Australia s prosperity depends on having a transport system that is efficient, sustainable, competitive, safe, secure and productive. Achieving long-term productivity growth will require reforms to support the operation of a seamless national economy. During and forward years, the Department will continue to advise on and lead national efforts to address key transport issues that support an efficient, sustainable, competitive, safe and secure transport system, including: promoting integrated surface transport (road, rail) reforms supporting the operation of single national markets and building on effective relationships with key stakeholders, including other governments, unions, industry and regulators; implementation of COAG initiatives contributing towards a seamless national economy including approaches to heavy vehicle regulation, maritime safety and rail safety regulation and investigation; ensuring vehicle standards deliver both safety and environmental outcomes and are consistent with international approaches; contribute to effective progress on the Council of Australian Governments (COAG) road reform plan; assisting with the development of the Government s coastal shipping policy, particularly in relation to the response to the House of Representatives Standing Committee report Rebuilding Australia s Coastal Shipping Industry ; providing transport policy advice in relation to the Disability Standards for Accessible Public Transport; support the work of the National Road Safety Council; pursuing ongoing enhancements to Australia s transport security framework; providing aviation policy advice, aviation and airport regulation and effective stakeholder (including international) engagement on the initiatives identified in the Aviation White Paper; 36