Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Finance - Urban and Regional Development - Year - 1974-75


Download PDF Download PDF

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

1974— Parliamentary Paper No. 333

URBAN AND REGIONAL DEVELOPMENT

1974-75

Presented by Command and

ordered to be printed 17 September 1974

TH E GO VERNM ENT PR IN TE R O F AUSTRALIA CANBERRA 1975

Printed by Authority by the Government Printer of Australia

FOREWORD

This paper is the first in what will be a new series of comprehensive and self- contained statements of Australian Government outlays on programs for urban and regional development, to accompany the annual presentation of the Budget.

Many of the Government’s new policy initiatives in this field are being under­ taken in the Ministry for which I am responsible: the Department of Urban and Regional Development, the Cities Commission, the National Capital Develop­ ment Commission and the Albury-Wodonga Development Corporation. Other

Ministers and their Departments are undertaking many new programs in this field and re-orienting their activities to ensure that the Government’s outlays on urban and regional development are more closely co-ordinated.

Taken together, these programs comprise a major effort to revitalize our cities and build new ones, to equalise opportunity and access to those facilities which people expect and need in a healthy society. This paper focusses attention on the Australian Government’s direct involvement in our cities and regions,

reflecting the high priority which the Government gives to urban affairs.

My thanks are due to my colleagues the Ministers for Health, Housing and Construction, Transport, and to the Treasurer, for the close collaboration and assistance given by their Departments in the preparation of this paper. The two-way co-operation between these and other Departments, and my own, is vital to the introduction and continued success of the Australian Government’s

programs for urban and regional development.

TOM UREN

Minister for Urban and Regional Development

CONTENTS

Page

I. In tro d u ctio n .........................................................................................................................9

II. Programs of the Urban and Regional Development Ministry . . . 17

Land Commissions . . . . . . . . . . 18

Sewerage x ................................................................................................... . 2 0

Urban water supply . . . . . . . . . . 22

Growth centres . . . . . . . . . . . 23

Area improvement . . . . . . . . . . 30

Urban rehabilitation . . . . . . . . . . 31

Regional organisations assistance . . . . . . . . 3 2

National Estate . . . . . . . . . . . 32

Summary . . . . . . . . . . . . 33

III. Programs of some other M in is t r ie s .............................................................................. 41

Housing . . . . . . . . . . . . 41

Welfare housing . . . . . . . . . . 42

Housing for the S e r v i c e s ........................................................................................ 46

Defence Service homes . . . . . . . . . 47

Urban transport . . . . . . . . . . . 52

Urban public t r a n s p o r t ........................................................................................ 52

Urban roads ............................................................ ......... . . . 5 4

Health care . . . . . . . . . . . 59

Hospitals development ........................................................................................ 59

Community health . . . . . . . . . . 60

Health transport and rural health s e r v i c e s .......................................................... 61

IV. Conclusion . . . . . . . . . . . . 62

/

I. INTRODUCTION

This paper describes the major initiatives of the Australian Government in urban and regional development. These should be seen in the context of past capital outlays made at all three levels of government in Australia—national, state

and local— for the many and varied purposes which directly and indirectly affect urban and regional development.

Population increase and pressures, of economic growth have made it imperative for the various levels of government in Australia to contribute heavily to housing expenditures and to make large expenditures themselves on roads, electricity, water supply and other elements of urban and regional infrastructure. This has created

a need now to develop co-ordinated investment policies for the future.

Population Growth Since the end of the Second World War, Australia has experienced a period of rapid population growth. The following table shows this growth has been predominantly in the south-east of the continent, in New South Wales and Victoria. Within each State the growth of population has been concentrated in the capital

cities, and a small number of other major cities, with major growth taking place in Sydney and Melbourne.

The growth of the cities and other urban areas has made Australia one of the most urbanised countries in the world, with most of the continent having a very low population density. Between the population census years of 1947 and 1971 the proportion of the Australian population living in metropolitan and other urban areas has risen from 68.9 per cent to 85.7 per cent. This means that 17 people out of every 20 of the population now live in an urban environment.

THE GROWTH OF POPULATION i. States and Territories (’000 persons)

at 30 June

1939 1949 1959 1964 1969 1973

New South Wales . . . . 2,748 3,093 3,760 4,108 4,441 4,703

Victoria................................................. 1,878 2,143 2,786 3,106 3,385 3,587

Q u e e n s la n d ....................................... 1,018 1,159 1,468 1,611 1,763 1,915

South Australia . . . . 597 679 921 1,038 1,139 1,199

Western Australia . . . . 470 532 712 808 955 1,069

Tasmania . . . . . 237 267 339 364 385 396

Northern Territory . . . 6 13 24 51 73 96

Australian Capital Territory . . 13 21 46 80 122 168

T o t a l ....................................... 6,968 7,908 10,056 11,167 12,263 13,132

9

ii. Capital Cities (’000 persons) (a)

at 30 June

1939 ' 1949 1959 1964 1969 1973

Sydney . . . . . . 1,275 1,530 2,086’ 2,442 2,691 2,874

Melbourne . . . . . 1,051 1,272 1,778 2,131 2,390 2,584

Brisbane . . . . . 330 430 567 740 829 911

Adelaide . . . . . 323 416 562 721 810 868

P e r t h ................................................. 227 296 401 526 643 739

Hobart . . . . . . 69 81 110 137 149 158

Canberra . . . . . 11 20 44 78 119 166

T o t a l ....................................... 3,285 4,044 5,548 6,775 7,630 8,300

Percentage of total Australian population . . . . 47.1 51.1 55.2 60.7 62.2 63.2

(a) Capital city populations (except Canberra) are at 31 December for 1939 and 1949. From 1964 State capital cities relate to statistical divisions, as defined at population censuses, covering areas socially and economically oriented towards these cities. The population of Canberra excludes Queanbeyan.

It is the growth of the cities, particularly the larger, which is the nub of the urban and regional development problem. The social, economic and environ­ mental stresses created within the cities by this population growth, have emphasised how extensive is the need for an increased and more efficient spatial allocation of resources, both within these cities and between the cities and other places. In particular, the new emphasis being given to urban and regional development reflects a concern to promote greater equality of distribution and ease of access to the various urban amenities and facilities which improve the quality of life.

Objectives of an Urban and Regional Budget All levels of government in Australia carry out functions involving budgetary expenditure which contribute to urban and regional development. The Australian Government is primarily responsible for such nation-wide services as communica­ tions and air transport, and for the provision of urban services in the Australian Capital Territory and the Northern Territory. But the provision of most urban public services is the primary responsibility of the State governments, who either carry out these services directly or delegate them to their semi- and local govern­ ment authorities. The Australian Government does, however, affect the pattern of urban expenditure in fields primarily under State jurisdiction by making specific purpose financial assistance available to the States under Section 96 of the Con­ stitution. To a lesser extent it is effective through the influence it exercises over Loan Council decisions.

The increased awareness of how most public capital expenditure programs affect urban and regional development, and of the very large expenditure involved, has been matched by the determination of the Australian Government to improve decision-making in the urban field. The allocation of resources and the distribution of welfare within the community can be improved by attention to the spatial pattern of public sector economic activity. That is to say, governments must concern themselves not merely with aggregates, but with more precise analyses of

where, and on whom, their policies impinge.

10

To build a complete information system dissecting all expenditure programs relevant to urban and regional development according to regions, is a project which will extend over a considerable period. What is attempted in this paper is a description of some of the programs of the Australian Government which influence urban and regional development.

To a large extent the programs selected involve the provision of the types of infrastructure which have a strong influence on the spatial pattern of other activities. Examples are capital expenditures on roads, water supplies, sewerage, public transport, land development and housing. The strategic importance of a

number of these functions provides the rationale for the Government’s new initiatives in these fields. Even without a knowledge of the precise spatial pattern of capital expenditures for these particular purposes, the limited information which it has been possible to assemble helps in understanding the budgetary

implications of the Government’s policies for urban and regional development and the inter-relationship between some of the various component programs. The further expansion and development of an urban and regional budget system will assist in co-ordinating and maximising the effectiveness of the various pro­ grams for urban and regional development.

Until recently there was little national co-ordination of urban and regional development expenditure. Urban planning and development were largely left as the responsibility of State governments. Various efforts have been made by the States with policies for metropolitan planning, population decentralisation and

transport; but frequently these have been fragmented and have experienced diffi­ culty in ensuring adequate co-ordination with the policies being pursued by other levels of government.

The Australian Government aims to rectify the deficiencies of the past by planning and co-ordinating the regional allocation of resources made available through its own budget and, progressively, through co-operation with the States. It is developing a national urban and regional development strategy, which emphasises goals of equity, efficiency, choice and public participation in decision­ making.

The respective contributions being made by the Department of Urban and Regional Development and some other related Departments to the introduction of the Australian Government’s new initiatives in urban and regional develop­ ment are indicated where appropriate in this paper. In the following sections, the paper describes past and planned expenditure for the programs falling within the sphere of responsibility of the Minister for Urban and Regional Development, covering the activities of the Department of Urban and Regional Development, and the expenditure by the Cities Commission, the National Capital Development Commission and the Albury-Wodonga Development Corporation in growth centres; and some of the expenditures particularly relevant to urban development of the Ministries of Housing and Construction, Transport, and Health. The

present coverage is in no sense exhaustive. It does not include, for example, the new program which will supply $56 million directly to assist local government, nor the Australian Government programs for education, social services and some

other fields of transport which will also affect urban and regional development.

11

In some instances, only present expenditure plans are shown in this paper i because they represent new policies. Wherever it is possible, however, present I expectations of future expenditures have been added to present and past expen­ ditures, because policies for urban and regional development involve a continuity j of effort far beyond the limits of any one fiscal year. Such forward estimates must, ; of course, be heavily qualified because of all the difficulties which are associated 1 with looking ahead and because the precise expenditure in any year must always be decided in the budgetary context of the day. Thus the forward estimates presented here in no sense represent Government commitments. Neither do they incorporate any expectations of rising prices; they are intended to indicate the present best estimate of the implications of current plans for demands upon resources for urban and regional development in terms of today’s values. In the event, of course, such demands will express themselves in the prices of the years in which expenditures, amended in the light of changing situations, actually occur; but looking forward in this way will reveal the implications for other years, and for the ultimate achievement of objectives, of any changes in the use of resources in the current or later years.

It is intended that future papers in the series will extend the coverage of expenditures by other Ministries which are relevant to urban and regional develop­ ment, and progressively include more detailed regional information. Practical limitations restricted the scope for doing more on this occasion. However, the full spectrum of city and regional expenditures must be displayed before properly and fully co-ordinated plans can be developed. It is therefore intended that the initiative taken in presenting this paper will be followed each year by a further j extension into the presentation of a comprehensive picture of government outlays i on urban and regional development, until a complete framework of reference is j available to help government and the community at large in the great task of j co-ordinating decision-taking in this field.

Total Capital Outlays on Urban and Regional Development Although this paper concentrates for the most part on those programs which particularly influence the overall shape and pattern of city development, it is useful to indicate broadly the magnitude of expenditures which impinge on urban and regional development and to describe briefly the trends in those expenditures. The functions of government which have been most relevant to urban and regional development include housing, electricity and gas, water supply and sewerage, transport in all its forms (particularly roads), education and health. In 1972-73, the major components of these categories comprised over two-thirds

of total public authority expenditure on new fixed assets, but a decade ago they accounted for an even higher proportion of total expenditure. The reduction in the importance of these functions was mainly due to a fall in the proportion of total expenditure by the Australian Government and local government in these fields, with State governments maintaining approximately the same proportion of total expenditure on new fixed assets over the period.

The relative importance of these categories in terms of the resources devoted to them has not changed much over time. As is shown in Table 1, expenditure on roads has maintained a dominant position. However education, which lagged well behind the others a decade or so ago, has recently come to rank only behind

12

roads, and electricity, gas and water. If advances to the private sector are taken into account, housing took pride of place at the beginning of the period but had lost this position at its end.

The changing importance of the different categories of capital expenditure has probably reflected community needs and tastes. The basic provision of housing gives rise to demand for services such as electricity and gas, and water supply; the relative importance of roads is probably affected by special factors in the size of the Australian continent. Recently, education has been given priority as more of the community’s primary needs have been better satisfied.

Table 2 shows the percentage shares of public authority capital outlay by levels of government. (As total capital outlay cannot be classified by purpose this table does not show components attributable to urban and regional development.)

Total direct capital outlay (for all purposes) by the Australian Government grew proportionately slightly faster than direct capital outlay of State and local governments over the past decade. However, the Australian Government’s con­ tribution to total public authority capital outlay is not all by way of direct

expenditure; a greater proportion is contributed in transfer payments to other levels of government in the form of grants and advances. The proportion of State and local government capital outlay financed by Australian Government grants and advances remained stable during the past decade, but the contribution made by grants more than doubled, from 10.4 per cent of total capital outlay in

1963-64 to 25.0 per cent in 1972-73. Almost all Australian Government capital grants and advances to the States for specific purposes are made for purposes related to urban and regional development.

Part of the recent increase in the Australian Government’s financial assistance to the States was, for the first time in 1973-74, directed through the State govern­ ments specifically for use by local governments. This development is being con­ tinued, and the provision of assistance to local government is being further developed through the machinery of the Grants Commission in 1974-75. Australian

Government assistance, together with State government assistance, is being pro­ vided to development corporations set up by the Australian and some State govern­ ments, to foster the emergence of growth centres, and to Land Commissions and Urban Land Councils being established as a means of governmental participation in the provision of serviced land for residential and other private purposes. The

increase in financial assistance to the States for urban and regional development in 1973-74, was predominantly in the form of specific purpose payments made under section 96 of the Constitution. Against the background of the public expen­ ditures which have been and continue to be made in Australia for urban and

regional purposes, the present increases in the outlays of the Australian Govern­ ment are relatively small.

Australian Government capital grants and advances related to urban and regional development doubled in the decade to 1972-73. In 1973-74 the initiatives and development of major programs by the Australian Government resulted in a 42.9 per cent increase and 1974-75 estimates represent an increase of a further

63.3 per cent.

13

No. 3.—AUSTRALIAN GOVERNMENT PAYMENTS TO THE STATES: CAPITAL GRANTS AND NET ADVANCES FOR SPECIFIC PURPOSES ($ million)

1963-64 1964-65 1965-66 1966-67

urposes related to urban and regional devel­ opment— Education. . . 12.8 32.7 32.1 40.1

Health . . . 2.2 3.2 5.2 5.5

Housing . . .

Electricity, gas and 92.1 93.7 106.9 109.0

. water supply . .

Sewerage and sanita­ tion . . .

Roads . . .

Other transport . .

Urban and regional development, n.e.c..

Total . . .

All other purposes .

Total Specific Pur­ pose Grants and Net Advances .

121.9 23.8

252.8

5.5

258.3

137.3 19.1

0.3

286.3

16.5

147.4 27.3

0.8

319.7

21.4

157.7 23.4

2.0

1967-68

337.7

17.6

302.8 341.1 355.3

54.0 5.1 110.9

5.3

165.1 32.7

1968-69

0.4

373.5

49.1

422.6

55.4 5.9 115.2

3.2

175.5 19.3

11.0

1969-70

71.2 7.0 121.7

9.7

198.8 18.3

1970-71

385.5

21.4

406.9

426.7

25.5

452.2

74.0 5.4 131.2

3.2

226.5 3.9

2.9

1971-72

86.0 6.1

(a)150.6

2.5

254.9 1.6

447.1

61.9

509.0

1.9

503.6

84.0

(a)587.6

1972-73 1973-74 1974-75 estimate

105.6 189.1 356.2

7.1 25.1 65.2

(o)163.7 215.9 237.8

15.5 23.6 36.0

27.9 102.7

286.9 325.1 349.7

3.4 - 3 .8 64.3

- 0 .9 27.4 143.8

581.3 830.4 1,355.8

87.3 89.6 139.4

(ct)668.6 920.0 1,495.2

(a) Adjusted to include allocations by State Governments of Loan Works program funds. In these two years housing allocations were met by the States from their Loan Council borrowing programs in the absence of a formal Housing Agreement. Source: Public Authority Finance: Authorities o f the Australian Government (A.B.S. Ref. No. 5.12) and successive issues of Commonwealth Finance

Π. PROGRAMS OF THE URBAN AND REGIONAL DEVELOPMENT MINISTRY The Minister for Urban and Regional Development is responsible for the activities of the Department of Urban and Regional Development, the Cities Commission and the National Capital Development Commission, and represents the Australian Government on the Council of Ministers to which the Albury- Wodonga Development Corporation is responsible. Within the overall context

of the acceptance by the Australian Government of a national responsibility for the development of cities and regions, for the creation of new opportunities and the enhancement of the quality of urban life, the Ministry is taking four broad approaches towards giving effect to the Government’s objectives.

• Firstly, efforts are being made to ensure that existing cities are developing in such a way as to avoid repeating the problems of the past, by providing an urban environment having all the facilities demanded by the Australian people at a reasonable cost.

• Secondly, programs are being developed to deal with the urban problems which currently exist: they are designed to arrest and reverse the decay of older areas, and to raise the provision of essential public services to acceptable standards where they are deficient.

• Thirdly, it is attempting to offer alternative life styles to those available in the larger metropolitan areas and establishing alternative centres of popula­ tion. By further developing Canberra, which at this stage is a major alternative to living in the State capitals, and by developing other growth centres and system cities, a start will be made towards containing the ex­ tension of the problems of the existing urban areas.

• Fourthly, the Government is seeking to promote regional co-operation and development, and to encourage the formulation of policies and planning on a regional basis. This should permit more effective planning and develop­ ment, and stimulate greater local participation and co-operation.

Outlays on these programs since the establishment of the Ministry for Urban and Regional Development, and budget outlays for 1974-75 are set out in the following table. The table also shows forward expenditure implications of these programs, as they are presently conceived, through 1976-77. Funds which will actually be allocated to these programs in these later years will be determined in the light of prevailing economic circumstances and overall budgetary policy,

and the programs themselves are likely to be readjusted and refined through continuing processes of review and evaluation. Thus the forward estimates show only the implications for future resource use of present plans as currently conceived, and in no way represent actual Government commitments.

24022/75— L —2 17

URD MINISTRY PROGRAMS: SUMMARY ($ million)

Programs 1972-73 1973-74

1974-75 budget estimate

1975-76 forward est.(u)

1976-77 forward est.(a)

Land Commissions . . . . 8. 0 56.9 165.0 185.0

Sewerage . . . . . 27.9 104.7 112.0 119.0

Urban water supply . . . .

Growth centres—

4.4 8.5 13.5

Canberra!-/) ) ....................................... 77.8 104.1 140.0 166.2 187.1

Others . . . . . 9. 2 82.7 133.9 167.3

Area improvement . . . . 7. 4 14.1 21.3 24.3

Urban rehabilitation . . . 5.3 16.8 10.5 10.5

Regional organisations assistance . ·. . 0.3 0.4 0.6

National Estate . . . . 0. 1 0. 8 8. 0 15.0 20.0

General administration n.e.c. . . 1.4 4.4 5.7 7.6 7.6

Total URD Ministry Programs 79.3 167.0 433.7 640.4 734.7

(o) Excluding imputed advances for capitalised interest. (6) Including outlays of the National Capital Development Commission on national works, and Australian Government offices located in the Australian Capital Territory.

LAND COMMISSIONS

In recent years land prices in Australian cities have risen rapidly. Even given the recent substantial increases in the cost of building a house, the proportion of the cost of land and house together which is attributable to land has been increasing. Land for housing has been in short supply.

The Australian Government believes that this situation has come about because inadequate public capital investment in the processes of land acquisition and development has made those processes inefficient. The withholding of land from the market now seriously threatens supply: there are bottlenecks at the first release stage and also in obtaining necessary planning and development approvals. Through its Land Commissions program the Australian Government

is attempting to co-operate with the States to make an attack on these problems.

The Land Commissions program involves the provision of financial assistance to the States for:

e land acquisition for comprehensive high quality development;

• servicing and development of land acquired to the extent that these costs are met from normal Government subventions; • urban renewal and redevelopment; • study programs and research on problems of urban and regional

development.

The chief aims of the program are to facilitate more equitable and efficient planning and the development and redevelopment of urban areas, and to make available adequate land for residential and associated uses at prices more people can afford to pay.

The Australian Government is concerned to ensure that there is an adequate organisational base and sufficient legislative protection to allow agreed programs of acquisition and development to be carried out efficiently and equitably. This

18

concern is shared by the State Governments which have accepted the program in principle. It has therefore been a condition of financial assistance that the States agree to establish a Land Commission, or a similar high level co-ordinating body, to control and co-ordinate the programs of acquisition and development

undertaken by various State authorities.

The States have also been asked to agree to introduce land price stabilisation legislation to apply in areas being acquired with Australian Government financial assistance. This legislation would ensure that existing land-owners would not make gains from the announcement of projects for which land is to be resumed.

South Australia was the first State to accept the principles of the Land Commissions program. The South Australian Land Commission was established in November 1973 as a statutory authority with powers to acquire, develop and manage land. In 1973-74, 1,215 hectares were acquired. Current plans are for

acquisition of a further 2,500 hectares in 1974-75 and a similar amount spread over the following two years.

The Commission is acquiring land holdings in areas around Adelaide which are under immediate threat of price increases. It is also giving considerable attention in its early years to building up a bank of undeveloped land, so that not all the land now being acquired will be immediately developed. Present plans are to complete development of 300 hectares in 1974-75, representing some 30 per cent of the current annual demand for newly developed urban land in

Adelaide. Land developed by the Commission will be sold at between $4,000 and $6,000 per block, with an average price lower than the current Adelaide average of $5,800.

The Commission expects that the land it markets in particular areas will be below the average market price of land in those locations. Its own operations and its effect on the market generally should ensure that the cost of land to the end user is not unnecessarily inflated.

Agreements in principle have now formally been reached with New South Wales, Victoria and Tasmania. This should lead to early provision of funds once suitable acquisition and development programs are formulated and approved.

The appropriation for the Land Commissions program for 1974-75 is $54.45 million. Allocations between the States are not fixed. However, on present estimates of likely progress with the various programs, the following comments can be made. In the case of New South Wales, the funds available will be sufficient

at prevailing price levels to purchase some 500 hectares. The allocation for Victoria includes provision for $3.5 million to purchase open space on the Mornington Peninsula to preserve an area which is of conservational and recreational significance for the whole of Melbourne. In addition, sufficient funds

are available to purchase some 850 hectares of land for urban residential develop­ ment in Melbourne. Detailed programs for Queensland and Western Australia have been discussed at ministerial level. The funds for Tasmania will be sufficient to acquire land equal to the annual residential land requirement in Hobart and Launceston.

19

SEWERAGE

More than H million people in the major Australian cities live in houses and flats which are not connected to a complete sewerage reticulation system. Most of them live in suburbs which developed during the 1950s and early 1960s, although in Newcastle, Wollongong and the Gold Coast the backlog affects many of the older areas as well. The reason why these areas have not been sewered is basically that in a period of rapid urban growth inadequate resources have

been made available for the provision of urban services. This has been exacer­ bated by a serious lack of co-ordination in planning for urban expansion. The newer areas of these cities are less affected, since developers and sub-dividers are now required to provide or contribute to the provision of sewerage systems.

In the smaller cities (defined as those with populations of 20,000 to 60,000) some 100,000 persons, or about 21 per cent of their population, are similarly deprived. Many of these smaller cities are also located on inland streams. Deficiencies in their sewerage services thus affect not only these centres them­

selves, but also result in contamination of the water-ways, jeopardising the health and livelihood of those who live downstream.

Over half a million, or more than 17 per cent of all dwellings in cities of 20,000 persons and over, are unsewered. Some 400,000 persons must make do with pan sanitation systems, with their attendant nuisances and health risks.

ESTIMATED UNSEWERED DWELLINGS IN URBAN AREAS© (at 30 June 1973)

State

Principal urban areas©

Minor urban areas©

Principal and minor urban areas

No. (’000)

Percentage of all dwellings

No. (Ό00)

Percentage of all dwellings

No. (Ό00)

Percentage of all dwellings

New South Wales . . 161.0 14.8 31.8 33.0 192.8 16.3

Victoria. . . . 140.5 17.0 1.8 3.4 142.3 16.2

Queensland . . . 74.3 21.7 6.7 8.5 81.0 19.2

South Australia . . 14.0 4.8 1.5 19.1 15.5 5.1

Western Australia . . 102.0 40.6 0.3 4.8 102.3 39.6

Tasmania . . . 2.9 4.6 0.5 4.5 3.4 4.6

All States . . . 494.7 17.3 42.6 16.9 537.3 17.2

(a) Department of Urban and Regional Development estimates. (6) 60,000 persons and over, (c) 20,000 to 60,000 persons.

Provision of an adequate sewerage service is an essential element in the effort to provide a better life for people living in urban areas. Through its national sewerage program, the Australian Government is providing financial assistance for an accelerated works program which is to extend sewerage services in the

shortest possible time to people living in presently unsewered areas of the major cities; a start is also being made on dealing with sewerage backlog in the smaller cities.

20

The Australian Government considers it essential that sewerage services, along with ah other public utilities, should be provided in a comprehensive and co-ordinated way. Emphasis will be placed, therefore, on integration of sewerage provision with city development strategies.

An important component of the program is the upgrading of trunk mains, headworks and treatment works to ensure that effluent is adequately treated to protect areas where outfalls occur from environmental degradation. This reflects the growing awareness of the costs borne by the community at large of various

forms of environmental pollution, and the general desire to improve the quality of final effluent from sewerage treatment plants, to avoid some of these problems in the future and in some measure rectify the problems of the past and present.

Present estimates suggest that it will take about ten years to overcome the sewerage backlog to the extent that all existing dwellings are served and all new dwellings being built can be connected immediately to a complete and environ­ mentally acceptable sewerage system. The present best estimate of the total cost of

the works program needed to attain this objective is about $3,800 million (in June 1974 prices). The contribution required from the Australian Government is likely to be about 40 per cent, or $1,500 million.

In 1973-74 Australian Government funds contributed towards 79 reticulation projects, 35 main, sub-main and carrier sewers, six pumping stations and ten treatment plants. Total payments to the States were $27.9 million, in the form of repayable advances.

The first year of the program has enabled the sewerage authorities to build up their construction capacities so that they are in a position to cope with further expansion in 1974-75 and a sustained higher level of activity throughout the subsequent years of the program, without imposing undue strain on local resources of manpower and materials.

In 1974-75 a total of $96 million will be made available to the States for the larger cities (including $8 million as additional funds for the 1973-74 program). 1974-75 will also see the commencement of financial assistance for sewerage installations in the smaller cities; $5 million has been made available for this

purpose. Part of the amount being provided in respect of 1974-75 sewerage works will be in the form of non-repayable grants.

In 1974-75 $2 million will be made available, for the first time, for expenditure on training, monitoring, planning and research projects. The effective planning, design, construction and operation of better sewerage systems will depend on the availability of sufficient numbers of qualified personnel in the authorities. Other countries have found that operator training is crucial to the achievement of fully effective treatment plant operation. Current operator training and certification

practices in this area vary between States and there is an urgent need for sub­ stantial improvement in this field. Requirements for professional staff and for proficient construction personnel are crucial in a works program as large as that envisaged for the national sewerage program, and these are also being considered.

The quality of effluent will be an important indicator of the success of the program. Standards need continuing definition and monitoring. Current recording and reporting systems can be improved. Assistance under the program to help correct these deficiencies will be co-ordinated with other water quality programs which the Government has initiated through the Department of the Environment

and Conservation.

21

The national sewerage program aims to improve the co-ordination of planning for sewerage with urban land use and urban planning. The Australian Government will provide assistance for this purpose in order to ensure that the sewerage pro­ gram is completed in a way that is consistent with broader government policy objectives for urban and regional development.

Expenditure under the national sewerage program in 1973-74, and the actual payments to each State in that year, together with the estimated 1974-75 expendi­ ture and a tentative State breakdown are set out below.

1973-74

1974-75 Budget Estimate

New South W a l e s .......................................

$’000 11.2

$’000 34.1

Victoria . ................................................. 9.3 34.0

Queensland ................................................. 2.0 13.5

South A u s tra lia ................................................. 1.6 3.0

Western Australia . . . . . 3.8 15.4

Tasmania . . . . . . . 2.7

Unallocated . . . . . . 2.0

Total .................................................. 27.9 104.7

of which— .

Sewerage backlog elimination— Principal cities . . . . . 27.9 (a) 97.7

Smaller cities . . . . . 5.0

Research, monitoring, training, planning . 2.0

(a) Includes $1.8 million carried over from 1973-74 program, and $8.0 million for works commenced in 1973-74.

URBAN WATER SUPPLY

The development and management of water resources is an area in which the primary responsibility rests with the States, but the Australian Government has over the years become increasingly involved, not only in special agreements such as those associated with the Snowy Mountains scheme, but also in a more general way through the programs of the Australian Water Resources Council

and the provision of financial assistance to specific State projects. It has become evident, however, that a better co-ordinated national approach is needed if Australia’s water resources are to be used in the most effective way.

Last year the Government adopted a broad policy statement in relation to the development and management of Australia’s water resources, since published as A National Approach to Water Resources Management. This statement indi­ cates the Australian Government’s intention that all water resource projects should be assessed on the basis of their impact on social welfare, economic development and the environment.

This kind of multi-objective assessment is being applied by the Australian Government to all water supply projects for which assistance is sought by the States. In particular, it is being applied to urban water supply projects. In time an integrated approach will be applied to water supply, sewerage and drainage pro­

vision, waste water treatment, effluent control and flood mitigation, and their role in overall urban and regional development.

22

At this stage the Australian Government has agreed in principle to assist two new State-sponsored urban water projects. The need for both projects has been demonstrated by multiple-purpose assessment.

The first project is to improve the quality of Adelaide’s water supply, which is heavily contaminated and falls far short of international quality and health standards. In 1974-75, $4.4 million will be made available by the Australian Government, most of which will be in the form of repayable advances.

The second project is to provide a comprehensive regional water supply system in North-West Tasmania, that will ensure adequate and reliable supplies of good quality water to the area for the foreseeable future, allowing for the forecast growth in population. The Australian Government will commence financial assistance towards this project in 1975-76.

GROWTH CENTRES

During the next twenty five years it is expected that the population of Australia will increase to between 16 million and 19 million persons, depending on assumptions concerning rates of natural increase and immigration. On the basis of current trends, most of this population increase, and hence most of the

demand for new development, would probably take place in the State capital cities and one or two other large centres such as Canberra. Sydney and Melbourne in particular would attract a major share of future growth and development.

This prospect is a matter for concern for the Australian Government. The adoption of a program for growth centres is a major component of the Govern­ ment’s effort to accommodate future growth in an efficient and equitable manner, responsive to the changing needs and life styles of Australians.

The growth centres program involves the planning, developing and promoting of selected large areas adjacent to the major metropolitan regions. These selected areas will make a significant contribution to accommodating future population by providing sub-metropolitan cities which themselves offer a wide range of oppor­

tunities and facilities for local residents. Such cities will be functionally linked with the nearby metropolitan centres while having a local identity and independence. This approach to planned and structured metropolitan expansion should ensure

that many of the increasing problems of inequitable access to resources and oppor­ tunities, and of major shortcomings in many of the functional components of the presently expanding single-centred metropolises, will be diminished rather than perpetuated.

In addition, the growth centres program includes planning for the accelerated development of selected centres outside the present metropolitan regions, to ensure the establishment of realistic alternatives to the current metropolitan regions to accommodate both people and economic activities. These regional

growth centres would offer well planned and efficient urban environments. They would also provide, on an equitable basis, as complete a range of services and opportunities as is possible. The development of such alternatives will serve to ease the growth pressure within the metropolitan regions, enabling remedial and

forward development programs to be more efficiently conducted, and at the same time will serve to create new opportunities within easier reach of present and future non-metropolitan residents.

23

The creation of specific public sector organisations to plan, manage and develop growth centre projects is part of the strategy to achieve these objectives. Such organisations can take full advantage of the efficiencies and economies to be gained from co-ordination of the urban development process. .

Unified management can also permit different approaches to be taken to meeting the needs of specific social sub-groups within the population, to innovation in housing, building and planning, and to public participation in the government and control of urban development.

The Australian Government believes that public acquisition of land prior to development, coupled with measures to stabilise the price of land, can lower the cost of fully-serviced land and associated community amenities, and increase the ability of growth centres to attract population.

The Government’s initial priority lies in fostering selected growth centre projects in south-eastern Australia because of the evident growth pressures in this area. Good progress has been made in negotiations with State Govern­ ments for joint action in respect of growth centres in the Sydney area (Sydney

South West Sector and Gosford-Wyong) and in the Melbourne area (Gee­ long). Australian Government support to these projects is vital. Develop­ ment policy for regional growth centres also takes advantage of the transport corridors between metropolitan areas, as, for example, along the Sydney/Mel­ bourne corridor. The establishment of Albury-Wodonga and the continued growth of Canberra as a regional centre are steps in this direction.

Canberra Canberra was conceived and initiated as the political and administrative focus for the new Australian nation. The city’s role as the National Capital and seat of Government is now well accepted and over the past two decades very sub­

stantial progress has been made in providing the city with the civic and adminis­ trative buildings and cultural and political facilities which are necessary to this role.

The city has become one of Australia’s foremost centres of rapid population growth and an example for many aspects of the Australian Government’s initiatives and programs in the fields of urban and regional development. Canberra is Aus­ tralia’s most tangible demonstration of comprehensive public planning of urban

growth and of public ownership and development of urban land.

Canberra’s successful growth has been principally dependent on two factors. Firstly, the progressive transfer of government to Canberra and the associated growth of Australian Public Service employment has provided the city with a stable and steadily expanding economic base. Secondly the methods of public planning and management of urban development used in Canberra have enabled

the inefficiency, congestion and loss of environmental quality usually associated with fragmented organisation and rapid urban growth to be countered effectively.

Employment in Australian Government departments and authorities in the Australian Capital Territory increased at a compound rate of 10 per cent a year from 1958 to 1973 (i.e. from 10,400 to 41,700 persons). Over the same period the population of the city increased at an approximately equal rate from slightly

24

over 39,000 to almost 170,000. The relationship between Australian Government employment and population growth in Canberra is shown in the following table:

AUSTRALIAN GOVERNMENT EMPLOYMENT AND POPULATION GROWTH IN CANBERRA

5 year period ending June

Australian Government Employment

Population

Total at end of

period

Increase Total

at end of

period

Increase

No. Per cent No. Per cent

1963 . . . . 16,300 5,900 56.7 70,775 31,714 81.2

1968 . . . . 27,100 10,800 66.3 109,550 38,775 54.8

1973 . . . . 41,700 14,600 53.9 166,101 56,551 51.6

Total . . . 31,300 301.0 127,040 325.2

Between 70 and 80 per cent of Canberra’s population growth since 1958 has consisted of net migration from other areas of Australia (principally Sydney and Melbourne) and overseas. Direct migration from overseas, however, has been a relatively unimportant contributor to growth. For the five year period between June 1966 and June 1971 the sources of internal net migration to Canberra are

shown in the following table:

INTERNAL MIGRATION TO AND FROM THE A.C.T., 1966-1971

Location

Arrivals in A.C.T.

Departures from A.C.T.

Net movement to A.C.T.

No. Per cent No. Per cent No. Per cent

Sydney Statistical Division 9,952 26.0 4,480 31.1 5,472 22.9

Remainder New South Wales . . . 12,259 32.1 3,747 25.9 8,512 35.7

Melbourne Statistical Division . . . 5,542 14.5 2,060 14.3 3,482 14.6

Remainder Victoria . 1,663 4.3 393 2.7 1,270 5.3

Other State Capitals . 5,830 15.1 2,307 15.9 3,523 14.8

Remainder States and Northern Territory . 2,997 7.8 1,432 9.9 1,565 6.6

Total within Australia 38,243 100.0 14,419 100.0 23,824 100.0

It is likely that a high proportion of those persons who come to Canberra from non-metropolitan areas of New South Wales and Victoria would otherwise have moved to either Sydney or Melbourne.

The importance of Canberra’s role in the Government’s national urban strategy is demonstrated by the fact that Canberra at present accommodates some 6 per cent of Australia’s annual population increase. Current planning for the future development of Canberra assumes that the population of the city and surrounding

area in 1985 will fall within the range of about 400,000 to 500,000.

25

PROJECTED POPULATION GROWTH IN THE CANBERRA REGIONS)

Year

Higher limit Lower limit

Canberra Queanbeyan Total Canberra Queanbeyan Total

1975 . . . 206,000 21,000 227,000 197,000 21,000 218,000

1980 . . . 332,000 30,000 362,000 280,000 27,000 307,000

1985 . . . 471,000 41,000 512,000 380,000 34,000 414,000

(a) This expectation is based on two population projections, the higher of which was prepared prior to the Government’s announcement of restrictions on the rate of growth of Australian Govern­ ment employment. The initial (to about 1978-79) high rates of growth in Australian Public Service employment in Canberra which it assumes are now unlikely to be realised, and the projection may be regarded as an upper limit on likely population growth. Due to current uncertainty concerning the implications of the restrictions on population growth in Canberra an additional interim population projection was prepared as a guide to planning. This projection, which assumes substantially lower

growth in Australian Public Service employment in Canberra, may be regarded as a lower limit on likely population growth in the region.

Canberra’s success in attracting large numbers of new settlers is a clear indication of the willingness of a wide cross section of the population to move away from the capital cities. This willingness is dependent on the provision of an attractive environment and adequate employment opportunities.

The ability to cope with population growth of up to 10 per cent a year while maintaining, and indeed improving, environmental standards and economic efficiency has been greatly assisted by public ownership of the land required for urban development and by the existence of the National Capital Development Commission as a comprehensive planning, development and construction authority.

The function of the National Capital Development Commission is to plan, develop and construct the City of Canberra as the National Capital of Australia. It is simultaneously a planning body, a body with general development respon­ sibility for the city, and a construction authority. Its annual construction program

covers some thousands of projects at any one time and in 1974-75 will involve a total expenditure of $134 million, of which over $107.8 million will be for basic community services. Another $6 million will be required for its administrative expenditures. Present estimates of forward plans suggest that these administrative and works expenditures will rise to $166 million in 1975-76 and $187 million in

1976-77. The range of projects included in the Commission’s construction pro­ grams is illustrated by reference to the 1974-75 program. The program provides for the turn-off of serviced land for 8,000 dwelling units (made up to 5,400 individual lots and 2,600 town house/flat units) and the completion of 1,400 dwelling units for government rental. Among the new works to be commenced during the year are:

• a new water supply dam estimated to cost $26.5 million to cater for expected population growth to 1984

• major sewerage and stormwater works at a total cost of $6.7 million

• educational facilities including 4 new primary schools (and extensions to 5 others), 2 new high schools, the development of facilities for 3 senior colleges and additional accommodation for the Canberra Technical College

26

• continued development of the city’s public and private transport systems, including the construction of arterial roads, and priority bus lanes and park- and-ride facilities at major centres to facilitate the use of public transport

• health and welfare facilities, including two community health centres together with a nursing home, an aged persons hostel, a national fitness camp and a number of occasional child care centres

• other works including the development of parks and reserves, city works, retail, commercial and industrial areas, recreation and cultural facilities.

As is suggested by the above details, the National Capital Development Com­ mission’s construction responsibilities are considerably broader than those pro­ posed for development corporations in other growth centres, and include a variety of works which in other centres would be the responsibility of State and local governments.

Additional work is undertaken by other Government departments such as the Department of the Capital Territory, the Postmaster-General’s Department and the Department of Transport; by the Australian National University and the Canberra College of Advanced Education; and by the private sector which, in the

main, invests in private housing and commercial ventures, such as shops, factories, warehouses and private offices.

Studies carried out by the National Capital Development Commission, covering the period since its establishment in 1958 to 1971-72, have shown that the relative proportions of investment made by the public and private sectors has gradually changed. In 1958-59 the public sector provided 70 per cent of the total investment, but this declined to 45 per cent by 1971-72. The studies also showed that total (public and private) investment expressed in cost per person (in estimated 1973-74 values) declined from approximately $16,000 in 1966-67 to

$13,000 in 1971-72.

Other measures of the economic efficiency and financial viability of this public investment can be obtained from the published tentative Public Accounts for the A.C.T. Although these accounts have not as yet been formally established— they are currently the subject of a Parliamentary Inquiry— they provide a useful guide.

The following table summarises the estimated cash deficits (indicated as — ) and cash surpluses (indicated as + ) of some of the tentative Public Accounts. It shows that the municipal services and two public utility accounts are now close to, or at, break-even point. As shown, land sub-division is a profitable undertaking. The extent of profits earned from residential land sub-division are dependent on the policies adopted for the pricing and disposal of land.

BROAD ESTIMATE OF CASH SURPLUSES OR DEFICITS

Accounts 1970-71 1971-72 1972-73 1973-74 1974-75

Municipal services . . .

$m - 1 .6

$m - 1 .3

$m - 0 .4

$m - 0 .5

$m 0.0

Water supply . . . - 1 .2 - 1 .1 - 0 .9 - 0 .7 - 0 .5

Sewerage service . . . - 0 .5 - 0 .6 - 0 .6 - 0 .4 0.0

Land subdivision . . . +8.1 + 10.8 +27.9 + 5.5 +7.4

27

The above table does not include the Territorial (or State-type) Account. The financial result of this Account depends on the level of grants to be given to the A-C.T. community by the Australian Government. If grants were to be made on the same basis as they are given to the Australian States, this Account too might be close to break-even point.

Canberra’s development is a partnership between government and private enterprise. It provides an alternative to the continued growth of the major State capital cities, and will play a major role in achieving the Government’s regional development objectives until other centres are able to attract significant population growth.

Albury-Wodonga Albury-Wodonga is the first major growth centre initiative. On 23 October 1973 the Prime Minister and the Premiers of New South Wales and Victoria signed the Albury-Wodonga Area Development Agreement. The Agreement stemmed from previous agreements reached by the three heads of Government at their meeting on 25 January 1973 and in subsequent meetings of the Ministerial

Council. The Australian, New South Wales and Victorian Governments have passed legislation ratifying the Agreement and established an administrative framework. The Albury-Wodonga Development Corporation has been established under Australian and State Government legislation to supervise and carry out urban and regional planning and development in the new growth complex. While legally three corporations are required to meet constitutional requirements, in practice the organisation will be responsible to a Ministerial Council comprising Ministers nominated by the three Governments.

In 1973-74 the Australian Government made available financial assistance of $9 million to the growth centre. Actual expenditure was $2.1 million. About half of the funds were used for land acquisition, and the balance was used to establish the Development Corporation and assist the local councils.

In 1974-75 the Australian Government is providing financial assistance of up to $40 million for the development program. The greater part of this program is for land acquisition, servicing of land, construction of housing and other works, and further development studies.

The Australian Government commitment to the Albury-Wodonga growth centre also includes the provision of financial assistance to local government for necessary services for growth centre development in the early years. Financial assistance will be made available in 1974-75 to the Albury and Wodonga Councils to undertake water supply, sewerage, drainage and road works. These works are additional to the works which the local Councils normally carry out under their own programs, and are a consequence of the decision to accelerate the growth of Albury-Wodonga.

It is expected that some revenue will be received in 1974-75 from the turnoff of the first residential allotments and serviced land for other urban purposes.

Other Growth Centres Financial assistance of $30 million is being made available for growth centres other than Albury-Wodonga. Monarto. The Australian Government has agreed to assist the initiatives of the South Australian Government in the development of the Monarto growth centre which is located near the town of Murray Bridge, 80 kilometres east of Adelaide.

28

Some time ago the South Australian Government enacted legislation for the establishment of the Monarto Development Commission and for the acquisition of 15,400 hectares of land within the designated site of the growth centre.

The Australian Government gave a commitment of financial assistance to the South Australian Government for land in the growth centre amounting to $8.5 million. Part of this assistance was made available in 1973-74 together with funds for planning studies, tree planting and the establishment of the Development

Commission.

In 1974-75 the Australian Government will provide financial assistance for the growth centre, for the balance of the land acquisition program, the first stage of the design program, and other works.

Other centres. Negotiations are proceeding with the New South Wales Govern­ ment on growth centres in that State for Bathurst-Orange, Sydney south-west sector, and Gosford-Wyong.

There is already a commitment by the Australian Government to support the development of Bathurst-Orange as a growth centre and financial assistance will be made available in 1974-75 for land acquisition and development works, subject to agreement. Early agreement is being sought with the New South Wales Govern­ ment on the development of the Sydney south-west sector and Gosford-Wyong.

The Australian and Victorian Governments have agreed that Geelong will be established as a growth complex to accommodate accelerated growth and so become an important element in the structuring of future urban growth in the Port Phillip region. Following strategy studies undertaken in the region over the

last 18 months, the Governments have agreed to a further phase of more detailed studies and the establishment of a development organisation to undertake the planning and development of the growth complex. Financial assistance will be provided when a formal agreement has been concluded.

Discussions are proceeding with the Queensland Government on the future development of Townsville, and with the Western Australian Government on possible growth centre developments.

The Government will continue its financial assistance to the Tasmanian Gov­ ernment for a development strategy study currently under way; provision is also made for assistance for land acquisition and works.

Holsworthy Investigatory Project The Cities Commission is undertaking the planning, development and servic­ ing of about 500 residential sites in the Holsworthy area near Sydney for the purpose of investigation and report to the Government on new social and physical

planning, and development arrangements. An amount of $6 million is provided to continue the project in 1974-75.

Studies The Cities Commission will continue to undertake an ongoing program of research and studies in matters related to urban and regional development. The broad aim of the studies and projects is directed towards the provision of advice

and recommendations to the Government on urban and regional policies and the means of their achievement.

29

AREA IMPROVEMENT

Area improvement programs have been introduced to remedy deficiencies arising from a number of causes in the provision of public facilities in specific locations. They provide an opportunity for co-ordinating many Australian Gov­ ernment activities at the regional level, in the selected regions, and for encourag­ ing improvement in public decision-making processes by involving people in identifying and solving regional problems. A particular aim of these programs is

to encourage regional and local bodies themselves to prepare regional development strategies as a basis for identifying important additional works for which assistance would be necessary.

Expenditure during the last year has been confined to the Western Regions of Sydney and Melbourne.

There were four basic types of activity on which money was spent, viz:

• land acquisition for community purposes • community centres and other community amenities • strategy plans • protection of the environment.

Within these four types of activity there was a diverse range of expenditure. In the Auburn area of Sydney, development of 9 hectares known as the Duck River Parklands has started; to date $270,000 has been spent on a botanical gardens development, cleaning of the river, planting trees and the construction of two soccer fields and facilities. In Mount Druitt most of the $360,000 allocated has been spent on sports fields, design of a civic centre and the first stage of a civic hall to provide for a population of 100,000.

The formulation of comprehensive development strategy plans for areas currently growing rapidly is important to future integrated development. A Blue Mountains Strategy Plan was commenced to guide action on such matters as retailing, tourist development and land use zoning in relation to the provision of transport and utilities, the staging of urban development including public works, the development of community services and welfare facilities; $50,000 was pro­

vided for this purpose. A further $45,000 was spent on studies and strategy plans for the Colo area of Sydney, which is under pressure because of the large number of city people seeking recreational outlets. There is a need for a long term plan of development aimed at preserving essential features of the present landscape in the context of the revised Sydney Region Outline Plan; a study for this, too, was carried out.

In Parramatta $300,000 was spent on acquisition of land for community purposes, such as foreshore reservations, as well as for facilities to enable freer access to these recreation areas. In the Melbourne area of Keilor, $330,000 was spent acquiring land adjacent to Tullamarine Airport, for sporting and recrea­

tional facilities, building a parks and gardens depot and to accommodate a tree and shrub nursery. In the nearby area of Sunshine, $150,000 was spent on acquiring land for public open space. Similarly $250,000 was spent in Williams- town acquiring a quarry for land fill and future use as public open space.

In the field of protection of the environment, $100,000 has been spent, in the Sydney area of Fairfield, on the Smithfield main drain. In Melbourne, $100,000 was spent in Altona on beach improvements. This involved placing groynes in

30

the beach and infilling the area with sand. This particular program is of regional significance to a large number of people. A large number of tree-planting projects, each costing $10,000-$30,000, were undertaken throughout the two regions.

The wide range of activities undertaken in 1973-74 will be continued in 1974-75, with added emphasis on projects that will promote strategic urban and environmental planning, and on provision of information services to collect and disseminate information about the regions. Subject to its acceptance by the States concerned, area improvement assistance will be extended to eleven regions (in addition to the two already served) which display a range of problems most amenable to this kind of aid, and which are considered to be regions for special priority in the implementation of the Australian Government’s urban and regional policies.

An amount of $14.1 million has been allocated to the Department of Urban and Regional Development to support these programs in 1974-75. Where needs are identified that relate to other Australian Government departments’ responsi­ bilities, it is intended that proposed remedial projects will be referred to those

departments for consideration in relation to their total programs. Where neces­ sary, the Department will assist local and regional bodies in articulating their demands, and in their representations to and negotiations with other Australian Government and State bodies.

URBAN REHABILITATION

Government action in the field of urban rehabilitation has been taken with the following specific objectives in mind:

• to preserve accommodation in the inner suburbs for low-income house­ holds • to achieve a suitably broad socio-economic mixture in the population of areas affected • to preserve the historic landscape qualities of the older inner suburbs

• to foster community participation in the planning, development and man­ agement of neighbourhoods • to test the suitability of a particular approach for coping with pressures for redevelopment, for possible extension to other areas.

The opportunity to carry through two projects with these objectives in mind arose during 1973-74. $3.5 million was loaned to assist the Victorian Housing Commission to purchase property at Emerald Hill in Melbourne; this project requires no further outlay by the Australian Government. The other rehabilitation project which has involved the actual appropriation of funds is in the Glebe in Sydney. The Glebe program involves the acquisition and some redevelopment of 700 dwellings on 19 hectares of land purchased from the Anglican Church

at a cost of $17.5 million; this sum has been approved by Parliament. A further $1 million will be spent on rehabilitation during 1974-75. In addition, there is a further project at Woolloomooloo which is still in the negotiating stage, but it is hoped that over the next two years the project will

focus on the renovation of, and addition to, the low income housing stock, and will provide for adequate community amenities and public open space.

In all three projects active resident participation in the replanning and redevel­ opment processes will be encouraged.

31

On completion, it is envisaged that the three projects will accommodate some 1,510 low income households, of which 877 will be in Glebe, 500 in Woolloo- mooloo, and 133 in Emerald Hill.

This type of inner city strategy is aimed at offsetting some of the undesirable effects of intense commercial and institutional pressure on the inner city in the longer term, and directing enterprise towards achieving social as well as private ends. The lower income earners have a need for access to work and other opportunities, just as do other groups in the community. The program also reflects a recognition that the provision of essential services for the central city

area requires a certain amount of low income accommodation to be available near this central work-place. The three projects under way at present are partially intended as holding operations; they are pilot projects, aimed at exploring ways of dealing with the worst features of the problem in the short term while a cohesive long term strategy can be moulded around them.

REGIONAL ORGANISATIONS ASSISTANCE In order to encourage local goverment to make full use of regional organisa­ tions and to formulate policies on a regional basis, the Australian Government is to make a financial contribution, in the form of a general purpose grant, to the regional organisations, to assist with:

• administrative expenses, which would include costs of meetings of those organisations and their sub-committees, the preparation of regional sub­ missions, including submissions to the Grants Commission, and secretarial costs (approximately $2,000 per region in 1974-75) • regional activities, which would include the employment of consultants on

matters of regional importance, the employment of staff to assist in regional research or planning, the holding of conferences and meetings to foster regional awareness and the establishment of links within the regions and between the regions themselves and Federal and State agencies

(approximately $8,000 each for regions in 1974-75).

Financial assistance towards these activities will, in 1974-75, take the form of grants to the States to be paid to the banker council for each region. In 1973-74, 876 local government authorities, through their regional organisations, made submissions to the Grants Commission for general assistance grants. The Grants Commission recommended that grants amounting to $56.3 million should be paid to 807 councils. The Australian Government has accepted the recommendation.

NATIONAL ESTATE

The policies and programs concerned with the National Estate are designed to help Australians to take concerted action to preserve their links with the past and with the natural environment. The concept of the National Estate found expression during the past year through the funding of specific programs in the States, and the preparation of a major report to the Australian Government by a Committee of Inquiry established in April 1973.

Projects funded under the National Estate Program in 1973-74 were aimed in the main at preserving many of the aspects of Australia’s culture and environ­ ment which create a sense of national identity and tradition. The projects fall into three major categories:

• the acquisition of land and buildings;

32

• restoration, preservation and enhancement of properties; • studies relating to such matters as the preservation of historic buildings, townscapes and landscapes of natural and scenic importance, land use, architecture and other matters related to the National Estate.

The projects are being undertaken by State and local government, and by private organisations— especially the various National Trust bodies. Some 101 different projects involving Australian Government support to the extent of $2.2 million were approved in 1973-74, and were in varying stages of implementation

by the end of the financial year. Of the amount allocated, $0.6 million was spent by the end of 1973-74. Among projects approved were:

• acquisition of properties in Richmond, Evandale, Ross, Oatlands, Stanley and Bothwell (Tasmania) by the National Trust of Australia to preserve the historic character and visual amenity of the towns; • acquisition (by the South Australian Government) of land in the Deep

Creek area, one of the few remaining areas of natural vegetation in the Fleurieu Peninsula; • a study by the South Melbourne City Council to assess conservation areas and for the development of preservation controls.

In addition, 22 grants-in-aid amounting to some $0.3 million were made to the National Trusts and a number of conservation councils and other voluntary bodies to help defray their administrative costs.

The program will be continued in 1974-75, and $8 million is to be appro­ priated for the purpose. New projects will be included in the program for 1974-75 on the basis of advice to the Minister from an Interim Advisory Committee.

It is also the Government’s intention to create at an early date a statutory body to be known as the Australian Heritage Commission.

SUMMARY

The total outlay on the programs of the Urban and Regional Development Ministry is expected to increase by $266.7 million, or 160 per cent, to $433.7 million in 1974-75, following the increase of $87.7 million in 1973-74. This rapid build-up in expenditure can be expected to ease in subsequent years as

the new programs begun in 1973 become established. The best available estimates of the implications of present plans, not allowing for price changes, are that increases in 1975-76 and 1976-77 may be of the order of $206 million (47 per cent) and $94 million (15 per cent), respectively.

Of this total outlay in 1974-75, $171.4 million will relate to direct expen­ diture on goods and services by the constituent organisations of the Ministry. $14.7 million will be for recurrent expenditures (including grants-in-aid to private organisations), an increase of $3.0 million or 25.6 per cent over

1973-74. $141.0 million is for expenditure on new fixed assets. The provision of basic community services to Canberra and the construction of national works and Australian Government offices in the National Capital will require $134.0 million, $34.5 million, or 34.7 per cent, more than last year; repair and renovation work at Glebe (Sydney), and other associated expenditures will cost $1.0 million, and $6.0 million will be spent on land development activities for the pilot project at Holsworthy. A remaining amount of $15.8 million is to complete the purchase of the 19 hectare property at Glebe which was arranged in 1973-74.

33

All other outlays on Urban and Regional Development programs are in the form of specific purpose transfers to other governments. These transfers will amount to $262.2 million in 1974-75, $208.5 million more than in 1973-74, reflecting the rapid build-up of the growth centres, land and sewerage programs. Of this amount, it is tentatively estimated that $230 million will be paid to State Governments to support expenditures by State authorities, the remainder being for projects to be undertaken by designated local governments. Approximately $53 million will be in the form of grants, the remainder being repayable advances

bearing interest at the prevailing long-term bond rate.

Details of estimated outlay in 1974-75 on the individual programs of the Urban and Regional Development Ministry, and significant constituent projects, are set out in Table 4, along with actual outlays in 1972-73 and 1973-74. Table 6 expresses these program outlays in terms of the headings under which funds for 1974-75 will be appropriated.

Table 5 shows the major target regions in 1973-74 for the Urban and Regional Development Ministry programs, and, where possible, the funds spent on or provided for urban and regional development programs in these regions. A major part of the 1973-74 expenditure was directed to the already existing programs, for the Canberra region. Other significant amounts, $15.7 million

and $10.6 million respectively, went to Sydney and Melbourne, and especially to their Western Regions ($7.7 million and $2.7 million) where the first two Area Improvement programs were established; the remaining expenditures in these cities were mainly concerned with elimination of sewerage backlog, and urban rehabilitation projects at Glebe (Sydney) and Emerald Hill (Melbourne). South Australia received some $14.1 million, of which $12.2 million was for land acquisition— $4.2 million for the Monarto growth centre, and the remainder for purchases of land in Adelaide by the newly-established South Australian Land Commission. An amount of $2.4 million was spent on the initial development of the Albury-Wodonga growth centre.

Spending in 1974-75 will once again be concentrated heavily on Sydney and Melbourne, South Australia, and Albury-Wodonga as the new programs initiated in these regions in 1973-74 are built up. The final payment of $15.8 million for the Glebe estate has already contributed significantly to a marked increase in spending in Sydney. The first substantial expenditure ($6 million) on the Hols- worthy project will lead to turn-off of serviced blocks late in 1975. Expected outlays in both Sydney and Melbourne will also show the first full-year effect of accelerated sewerage programs, and the commencement of large-scale land pur­ chases under the aegis of new Urban Land Councils. Funds directed to South Australia will mainly support the land acquisition and development program of the South Australian Land Commission, and 1974-75 should see the first large- scale release of sites by the Commission. Funds provided for Albury-Wodonga will finance the initial stage of a program to acquire land within the area of 54,000 hectares designated for urban development and open space reservation, and the preparation of residential, commercial and industrial sites for release later in the year. The coming year will also see the extension of area improvement programs to eleven more regions.

34

No. 4—URD MINISTRY PROGRAMS: OUTLAY(a) ($ million')

Programs

1. L and Commissions . . . .

2. Sewerage— (i) Sewerage backlog elimination— Principal cities . . . .

Smaller cities . . . .

(ii) Research, m onitoring, training,

planning . . . . .

Total sewerage. . . .

3. U rban water supply . . . .

4. Growth centres— (i> Canberra— National works and Australian Government offices .

Basic community services O ther. . . .

Total . . .

(ii) Other projects— Albury-W odonga .

Holsworthy pilot project M onarto . . .

Other centres . .

(iii) Studies . . . .

Total growth centres

5. Area improvement . .

6. U rban rehabilitation— (i) Glebe . . . .

(ii) Emerald Hill . . .

Total urban rehabilitation 7. Regional organisations assistance 8. National Estate— Assistance for projects .

Grants to organisations . Other . . . .

Total National Estate

9. General administration n.e.c. . Departm ent of U rban and Regional De­ velopment . . . .

Cities Commission . .

Total general administration

TOTAL OUTLAY ON U RD

M INISTRY PRO G RA M S less Appropriations carried over from pre­ vious year(6) . . . . .

Im puted advances for capitalised in- terestfc). . . .

U R D M INISTRY APPROPRIATIONS

1972-73

17.3 57.1 3.4

77.8

77.8

0.1

0.3 1.1

0.1

1.4

79.3

79.3

1973-74

8.0

27.9

27.9

22.5 77.2 4 .6

104.1

2 .4

4 .4

2.3

140.0

41.6 6 .0

^.32.8

2.3

113.3 7.4

1.8 3.5

0.3 0.3 0. 2

2.3 2.1

5.3

0.8

4.4

167.0

167.0

1974-75 budget estimate

56.9

97.7 5.0

2 . 0

104.7 4 .4

26.2 107.8 6.0

1

222.7 14.1

16.8

16.8 0.3

7.7 0.3

8. 0

4.3 1.4

5.7

433.7

0 -2 .9

0 5 . 1

425.7

+ increase — decrease on 1973-74

+ 48.9

+ 69.9

+ 5.0

+ 2. 0

+ 76.9

+ 4 .4

+ 3.8

+ 30 6

+ 1.4

+ 35.9

+ 39.2

+ 34.4

+ 109.4 + 6.7

+ 15.0

- 3.5

+ 11.5

+ 0.3

+ 7.4

- 0 . 2

+ 7.2

+ 2 . 0

- 0.7

+ 1-4

+ 266.7

+ 258.7

(а ) The category 6. U rb a n a n d r e g io n a l d e v e lo p m e n t n .e .c . a n d th e e n v ir o n m e n t in t h e fu n c t i o n a l classi ca 10 of budget outlay excludes urban water supply, which is classified to E c o n o m ic s e r v ic e s , and Nationa s a , classified to C u ltu r e a n d r e c r e a tio n . Also excluded are outlays on Canberra relating to nationa wor s Australian Government offices, and basic community services, classified tc such functions as ‘’A " " ,

o r d e r a n d p u b lic s a fe t y , H o u s i n g , C u ltu r e a n d r e c r e a tio n , E c o n o m ic s e r v ic e s , e tc . (s e e Statement o.

to the Budget Speech). . . ,

(б) Appropriations carried over to 1974-75 are: Sewerage $1.8 million; Growth centre 1 ‘

(c) Im puted advances for capitalised interest included in figures for 1974-75 are as Commissions $2.4 million; Grow th centres: Albury-Wodonga, $1.3 million; other centres, » · -

35

9

8 9 8

5 8 7

9 8

6(i)

5 8 6(ii).

4(ii)

2 3

No. 6 —URD MINISTRY PROGRAMS: APPROPRIATIONS ( $ ’000)

Item

Department of Urban and Regional Development— Division 592—Administrative— 1. Salaries, etc. . . . . . . .

2. Administrative expenses . . . . .

3. Other services— 01. Australian Institute of Urban Studies . 02. Australian Council of National Trusts . 03. Murray Valley Development League . .

04-10 Other grants . . . . .

.. Committee of Inquiry into the National Estate Division 972—Payments to or for the States— 01. Area improvement assistance. . . .

02. National Estate . . . . . .

.. Regional organisations assistance . . .

Division 973—Other services— 02. Local government scholarship scheme . . 03. National Estate—Territories . . . .

Special appropriations— Capital works and services— Glebe project—acquisition . . . .

Payments to or for the States— Area improvement assistance . . . .

National Estate . . . . . .

Land agreements . . . . . .

Growth centres— Albury-Wodonga . . . . .

Others . . . . . . .

Sewerage agreements . . . . .

Urban water s u p p l y .......................................

Total D U R D .................................................

1972-73 1973-74

1974-75 budget estimate

+ increase — decrease on 1973-74

137 1,282 2,473 Ί

109 669 1,499 1

1

30 26 70

1

1,816

55 55 55 f

15 1

273 159 I

150 J

7,400 600 \

288 1,939 l- —4,835

314 J

12 + 12

100 + 100

15,750 + 15,750

13,500 + 13,500

5,747 + 5,747

11,500 54,450 + 42,950

2,130 40,000 + 37,870

4,448 30,300 + 25,852

27,905 102,950 + 75,045

4,400 + 4,400

331 56,126 274,333 +218,207

No. 6.—URD Ministry Programs: Appropriations— continued ($’000)

{

1973-74

4,581 99,500

104,081

2,050 2,284

164,566

216

(6)2,032

2,415

166,981

1974-75 budget estimate

6,034 134,000

140,034

1,387 2,300 6,000

1,000

10,687

300

300

425,354

256

+ increase — decrease on 1973-74

+ 1,453 +34,500

+35,953

}

-663 + 16

+7,000

+6,353

+275

+275

+260,788

-1,992

-2,113

+258,675

(a) See Table 4 for re-classification of URD Ministry appropriations according to program categories. (b) Includes expenditures on acquisition of houses at Glebe $1,750,000 (for rehabilitation, etc.) and at Albury-Wodonga $288,000 (staff housing for A-WDC).

N o te: Division numbers are those given in Appropriation Bills Nos. 1 and 2,1974-75. Special Appropriations are shown in Estimated Receipts and Summary o f Estimated Expenditure (successive issues).

No. 7.—URD MINISTRY PROGRAMS: OUTLAY, CLASSIFIED BY ECONOMIC TYPE ($ million)

— 1972-73 1973-74

1974-75 budget estimate

+ increase — decrease on 1973-74

Direct expenditure— Government final consumption expenditure 4.8 11.7 14.7 + 3.0

Gross capital formation— Expenditure on new fixed assets .. 74.4 99.6 141.0 +41.4

Purchases of existing assets .. .. 2.0 15.8 +13.8

Total direct expenditure .. .. 79.3 113.3 171.4 +58.1

Transfer payments— Grants for current purposes— to State authorities .. .. ..

to local authorities^) .. ..

0.2 \

0.3 /

5.4 + 4.9

Grants for capital purposes— to State authorities .. .. ..

to local authorities^) .. ..

2.3 \

6.3 /

47.9 + 39.3

Advances (net)— to State authorities .. .. ..

to local authorities(a) .. ..

42.3 \

2.3 /

208.9 +164.3

Total transfer payments .. .. 53.7 262.2 +208.5

Total outlay .. .. .. 79.3 167.0 433.7 +266.6

(a) Payments to States specifically for passing on to local authorities. (See also Payments to or for the States and Local Government Authorities 1974-75, Budget Paper No. 7.)

Relationship to functional classification of budget outlays According to the functional classification of budget outlays, presented in Statement No. 3 attached to the Budget Speech, outlay on the function 6. Urban and Regional Development nec and the Environment is estimated at $394

million for 1974-75, an increase of $250 million over what was spent in 1973-74. This functional heading does not aim to bring together all the outlays which have a bearing on urban and regional development and protecting and preserving the environment: the important initiatives in the field of urban transport are, for example, dealt with under the heading Transport and Communications within the functional category Economic services. This means that, on the one hand,

part of the outlays of the Ministry for Urban and Regional Development has been classified to other functional categories. For 1974-75, an amount of $86.2 million ($58.7 million in 1973-74) is involved, made up of $4.4 million on urban water supply, $8.0 million for the National Estate, and $73.8 million from the appro­ priations for the National Capital Development Commission. On the other hand,

outlays of $47.4 million ($36.8 million in 1973-74) on the provision of com­ munity facilities and amenities by some other Departments, notably Aboriginal Affairs, Capital Territory and Northern Territory, are included in this category.

40

in . PROGRAMS OF SOME OTHER MINISTRIES A number of important new programs in the field of urban and regional development are being undertaken by departments other than those responsible to the Minister for Urban and Regional Development, and many existing programs are progressively being re-oriented so as to reflect the Government’s priorities in this field. Taken together with the programs discussed in Part II, these pro­ grams may be seen as the individual elements of an overall effort to revitalize the

cities and build new ones, to redress social inequalities arising from inadequate provision and spatial maldistribution of public services and facilities, and to bring about a direct involvement of the National Government in the problems and affairs of cities and regions.

Bringing all of these diverse elements together to form an integrated and co-ordinated program giving effect to the Government’s urban and regional policy objectives is a gradual process. This paper is an initial step in that process. The programs discussed in this section have a significant bearing on the achievement

of these objectives, but they do not represent all that is being done outside the URD Ministry. Other programs will be brought under consideration in the next issue of this paper.

HOUSING: PROGRAMS OF THE DEPARTMENT OF HOUSING AND CONSTRUCTION

Some 18,000 dwellings were provided from welfare housing funds in 1973-74. The Australian Government provided $218.65 million for this purpose, and this will rise to $235 million in 1974-75.

In addition to welfare housing, the Australian Government provides assistance to serving and past members of the armed forces.

AUSTRALIAN GOVERNMENT HOUSING PROGRAMS ($ million)

Program 1970-71 1971-72 1972-73 1973-74

1974-75 budget estimate

Welfare housing— Housing Agreements . . . . 126.4 (4)149.4 (e)159.9 208.0 223.3

Dwellings for Aged Pensioners . . 5.0 7.6 6.5 5.0 10.0

Home|Savings grants . . . . 15.2 17.4 21.3 24.7 20.3

Housing for the Services . . . . 8. 8 6. 5 5. 6 7. 2 15.5

Defence Service Homes . . . . 17.6 17.0 12.8 37.2 42.5

General administration . . . . 6. 5 7. 5 8. 5 10.2 12.7

Total outlay . . . . 179.5 205.4 214.6 292.3 324.3

(a) Includes allocation by States of loan works program funds.

41

Welfare Housing Policies and Agreements. The welfare housing policy administered by the Department of Housing and Construction reflects the need of a considerable proportion of the Australian people for government assistance to house them­ selves at a standard the community will accept. The implementation of this policy involves outlays to redistribute income from general government revenue or, in some cases, foregoing revenue that might otherwise have been collected. This procedure benefits low-income groups in general, particularly people at an

early stage of adult life, but the aged also receive help. The housing policies so far adopted reflect the setting of priorities by which needy cases are assisted first and the system then gradually extended to cover groups with lesser degrees of need.

The main methods by which this housing assistance is provided include:

• assistance to low income people generally through the Housing Agreement, which is based on Australian Government advances to the States at interest rates which are lower than the cost of raising government money and exempted from the on-going effects of changes in interest rates (by being held constant) • non-repayable grants to the States under the States Grants (Dwellings for

Aged Pensioners) A ct • the Home Savings grant arrangements allowing for payments from govern­ ment revenue to supplement savings of young married couples for their first home (but this scheme is now being phased out).

In addition,. a scheme for allowing deductions for mortgage interest from taxable income, structured to give the greatest benefit to people of low to moderate income, is soon to be introduced.

The Housing Agreement caters for people of the lowest income groups through State Government construction, mainly for rental; and for families of slightly higher income groups through advances to finance private home ownership through building societies and other institutions. Every effort is now being made to increase the level of construction by the State housing authorities as rapidly as possible; at the same time, arrangements are in train to increase the allocation for financing private home acquisition.

The principal program is now administered under the provisions of the 1973 Housing Agreement; the Agreement covers a period of five financial years from 1 July 1973.

Previous arrangements for Australian Government participation in welfare housing have been: • a series of Housing Agreements with the States covering the period from 1945 to 30 June 1971;

• arrangements laid down in the States Grants (Housing) Act 1971 (amended in 1973) for the two financial years 1971-72 and 1972-73. This Act pro­ vided for the States to be paid grants annually, on a fixed percentage basis, for use with State loan funds for welfare housing purposes; the States’

approved Loan Council borrowing programs were correspondingly increased to cover this additional requirement. The housing grant was intended to take the place of the interest concession allowable to the States under the

42

previous Agreements, and was applied both to the activities of the State housing authorities, and to the operations of the Home Builders’ Accounts from which advances continued to be made to building societies and other approved institutions for lending to people of moderate means who wished

to build or buy a home privately.

As an interim measure in the second half of 1972-73, pending negotiation with the State Governments of a new Housing Agreement, the Australian Government asked each State to indicate the additional amount of money that it could use in the commencement of dwellings before 30 June 1973 for allocation by State

housing authorities on a rental basis to needy families. As a result of State requests a total of $6.55 million was appropriated by the Housing Assistance A ct 1973 and advanced to the States at the low rate of interest of 4 per cent per annum.

The 1973 Agreement makes provision for welfare housing advances to the States by the Australian Government over the five-year period commenced 1 July 1973. These advances are outside, and in addition to, the State Loan Council programs. An amount of $218.65 million was paid to the States in 1973-74, and

$235 million has been provided for 1974-75. A further amount may be made available during the year should the situation in any State warrant it. The amount to be provided for each State in subsequent years is to be determined by the Minister for Housing and Construction each year after consultation with State Ministers. The rates of interest applicable to these advances, under the terms of the Agreement, are 4 per cent in respect of advances to the State housing

authorities, and 4£ per cent on advances allocated to Home Builders’ Accounts. These latter funds are made available to terminating building or co-operative housing societies, and in some States to the State Banks, which in turn make loans to persons wishing to build or buy a home privately; eligibility is limited to per­

sons whose income does not exceed 95 per cent of average weekly earnings plus $2 for each child beyond the second. The borrower is required to provide an equity of at least 3 per cent of the valuation of the dwelling and the rate of interest plus management fee must not exceed 5 f per cent.

Advances to a State are allocated between the State housing authority and the Home Builders’ Account in that State; not less than 70 per cent nor more than 80 per cent to the former, and not less than 20 per cent nor more than 30 per cent to the latter. An exception is made in the case of South Australia, in recog­

nition of the fact that, for many years, it has been allocating much more than 30 per cent to its Home Builders’ Account.

Advances for welfare housing may be used by a State housing authority to purchase and develop land, to build dwellings, to purchase and renovate existing dwellings, and subject to the approval of the Australian Government Minister, to provide bridging finance for community amenities that are not the responsibility

of the housing authority.

The bulk of State housing authority dwellings (at least 85 per cent) are being allocated to persons whose incomes do not exceed needs tests related to average weekly earnings per employed male unit. Using the December quarter figures published by the Australian Bureau of Statistics (the Australian average at December 1973 was $120) the qualifying requirements are:

• for a family— 85 per cent of average weekly earnings (December 1973, $102) plus $2 for each child beyond the second;

43

• for a couple, without dependants, of which the main breadwinner is an aged person or an invalid— 60 per cent of average weekly earnings (December 1973, $72); • for a single aged person or invalid— 40 per cent of average weekly earnings

(December 1973, $48).

Whereas under previous arrangements each State was free to determine its own policy on the sale of dwellings, sales of housing authority dwellings are now to be limited to not more than 30 per cent of family dwellings completed during the five years commencing 1 January 1974. A transitional provision permits Tasmania

to sell up to 50 per cent in the first year and 40 per cent in the second year. Sales may be made only to persons meeting the needs test at time of sale and there are restrictions on re-sale. Terms for sale are generous; the rate of interest is not less than 5 per cent nor more than 5|- per cent per annum.

A new condition now attaching to the provision of finance to the States is that, to the maximum extent reasonably practicable, dwellings built by housing authorities are to be intermingled with private dwellings and housing authorities will acquire some blocks in areas developed privately.

Advances to the States. Gross advances to the States for welfare housing pur­ poses are shown in Table 8, which also indicates the sharing of these funds between the State housing authorities and the States’ Home Builders’ Accounts, and the number of dwellings provided.

Dwellings for Aged Pensioners. Under the States Grants (Dwellings for Aged Pensioners) A ct 1969 the Australian Government has provided non-repayable interest-free grants to the States of $25 million during the five years to 30 June 1974 to assist State housing authorities to increase their construction of self- contained dwelling units for single aged and service pensioners.

This special assistance will be continued for a further period. Funds provided in 1974-75 will amount to $10 million. Details of payments of grants to the States, and completed units financed from grants are given below.

Grants to States Units completed

1972-73 1973-74 1974-75 budget estimate(

1972-73 1973-74

y o o o $’000 $’000 No. No.

New South Wales . . . 2,705 2,546 4,070 381 178

Victoria....................................... 1,478 650 2,530 218 64

Queensland . . . . 1,250 1,331 1,490 148 79

South Australia . . . 380 146 930 72 38

Western Australia . . . 519 307 700 108 53

Tasmania . . . . 138 22 280 18 1

Total . . . . 6,470 5,002 10,000 945 413

{a) State figures are tentative estimates only.

44

No. 8.—GROSS ADVANCES TO THE STATES FOR WELFARE HOUSING AND DWELLINGS COMPLETED

Gross advances to the States Dwellings completed®

1972-73(a) 1973-74 1974-75 budget estimate

1972-73 1973-74

$’000 $’000 $’000 No. No.

New South Wales— Housing authority . . 43,540 60,200 50,000 ' 1,768 1,924

Home Builders’ Account . 17,160 25,800 21,400 2,650 3,467

Total . . 60,700 86,000 71,400 4,418 5,391

Victoria— Housing authority . . 27,750 37,500 43,000 1,705 1,320

Home Builders’ Account . 11,250 16,000 18,400 1,983 2,209

Total . . 39,000 53,500 61,400 3,688 3,529

Queensland— Housing authority . . 12,500 12,200 14,630 1,424 1,428(c)

Home Builders’ Account . 3,350 5,200 6,270 533 663

Total . . 15,850 17,400 20,900 1,957 2,091

South Australia— Housing authority . . 14,500 15,500 20,340 1,162 1,394

Home Builders’ Account . 15,500 17,250 18,060 2,640 2,884

Total . . 30,000 32,750 38,400 3,802 4,278

Western Australia— Housing authority . . 9,100 9,100 16,030 835 1,197

Home Builders’ Account . 6;300 3,900 6,870 612 384

Total . . 15,400 13,000 22,900 1,447 1,581

Tasmania— Housing authority . . 6,250 12,000 14,000 624 577

Home Builders’ Account . 2,550 4,000 6,000 446 571

Total . . 8,800 16,000 20,000 1,070 1,148

All States— Housing authority . . 113,640 146,500 158,000 7,518 7,840

Home Builders’ Account . 56,110 72,150 77,000 8,864 10,178

Total . . . . 169,750 218,650 235,000 16,382 18,018

(a) Allocation by the States of Loan Program funds, the use of which was financially assisted by the payment of grants under the S tates Grants (H ousing) A c t 1971, plus advances of $6.55 million by Australian Government under H ousing Assistance A c t 1973. (b) Figures for Home Builders’ Accounts also include existing dwellings purchased. Excludes aged pensioner dwellings and housing for the Services. (c) Includes some dwellings financed from State sources.

45

Housing for the Services For many years it has been policy to provide as many dwellings for married servicemen as practicable under Australian Government-State arrangements, currently under conditions expressed formally in the Housing Agreement (Service­ m en). Construction is undertaken by State housing authorities in accordance

with annual programs established by agreement with each State.

Advances are made by the Australian Government to the States to cover the full capital cost. Advances are repayable over a period of 53 years with interest at the long term bond rate. The amount advanced in any one financial year is not necessarily the equivalent of the full estimated cost of the program arranged in

respect of that year. Advances are limited to the amount required by each State to meet expenditure on the dwellings in that year according to progress made and the balance is carried forward to be advanced in a subsequent financial year. Funds to meet the Australian Government’s commitment for advances to the States are provided under a special vote within the Defence estimates.

Dwellings programmed are built, to the extent agreed by the States, to a size and standard that accords with the Services’ Scales and Standards of Accommo­ dation issued under the authority of the Department of Defence. They are built in such localities as the Minister for Housing and Construction specifies after con­ sultation with the State Ministers, and after taking into account the preferences indicated by the Services. When completed the dwellings are owned by the State housing authorities which are responsible for maintenance, but each dwelling is required to be reserved for allotment to a serviceman until the State is informed that the dwelling is no longer required for this purpose.

Programs formally agreed with the State Governments for new construction in respect of the last two financial years provided for construction of new dwellings, as follows:

— 1972-73 1973-74

New South W a le s ................................................. 502 375

Victoria.................................................................... 102 144

Q u e e n sla n d .......................................................... 319

South Australia . . . . . . 3

Western Australia . . . . . . 2

T a s m a n i a .......................................................... 6 4

Total . . . . . . . 934 523

Details of gross advances to the States for new construction, and of new construction completed during the last two financial years are set out below.

46

Gross advances to States New construction

completed

1972-73 1973-74 1974-75 budget estimate

1972-73 1973-74

$’000 $’000 $’000 No. No.

New South Wales . . . 3,539 4,539 9,086 406 79

Victoria....................................... 2,019 2,691 3,139 59 57

Queensland . . . . 400 200 2,969 16

South Australia . . . 44 40 3

Western Australia . . . 161 191 682 13

Tasmania . . . . 145 193 4

Total . . . . 6,163 7,766 16,109 494 143

Defence Service Homes Under the Defence Service Homes Scheme assistance is made available to eligible persons, as defined in the Defence Service Homes Act, for the purchase, erection or enlargement of a home or the completion of a partially erected home.

One of the special features of the Scheme is the purchase and development of land in broad acres by the Director of Defence Service Homes for group housing estates. After subdivision and the provision of roads and other services, the land is used for group building by the Director or made available to eligible persons for the erection of individual homes to their own design. In each case the land is

sold at capital cost plus interest at the prescribed rate from the date the land is acquired.

These concessional arrangements, the absence of the land developer’s usual profit, and the appreciation in value upon development, make it possible for eligible persons to obtain individual lots at prices considerably lower than those of comparable allotments purchased on the open market.

Land held by the Director of Defence Service Homes at 30 June 1974 for future use in the erection of homes, either by the erection of group homes for sale to applicants or by an allocation of an individual lot to an applicant on which he may erect a home to his own plan, is estimated to yield 9,372 allotments.

Expenditure in each State during 1972-73 and 1973-74 on purchase and development of land was as follows:

' ----- 1972-73 1973-74

$’000 $’000

New South W a le s ................................................. 1,219 1,136

Victoria. ........................................................... 1,821 759

Queensland . . . . . . . 1,425 403

South Australia . . . . . . 123 1,307

Western A u stra lia ................................................. 590 422

Tasmania . . . . . . . 105 20

Total . . . . . . . 5,283 4,047

Total expenditure in 1973-74 from Defence Service Homes capital works and services appropriation was $102 million, broken down as follows:

State

Land

acquisition and development

Construction of homes on group estates

Loans for new homes

Loans for old homes, additions,

etc.

Total

$’000 $’000 $’000 $’000 $’000

New South Wales . . . 1,136 1,114 11,510 16,410 30,171

Vi ct ori a. . . . . 759 428 11,035 14,926 27,149

Queensland . . . .

South Australia (including 403 147 6,940 9,910 17,400

Northern Territory) . . 1,307 270 3,475 5,528 10,580

Western Australia . . . 422 88 3,619 5,371 9,500

Tasmania . . . . 20 960 2,221 3,200

Australian Capital Territory . 1,950 2,050 4,000

Total . . . . 4,047 2,048 39,490 56,415 102,000

48

No. 9.—HOUSING PROGRAMS: OUTLAY(a) ($ million)

— 1970-71 1971-72 1972-73 1973-74

1974-75 budget estimate

Welfare housing— Housing agreements— Grants to States . . . 4.0 6.8 6.8 6.8

Gross advances . . . 141.6 (6)161.5 (6)169.8 218.7 235.0

less repayments . . . Cr. 15.2 Cr. 16.1 Cr. 16.7 Cr. 17.3 Cr. 18.5

Dwellings for aged pensioners . 5.0 7.6 6.5 5.0 10.0

Homes Savings grants . . . 15.2 17.4 21.3 24.5 20.3

Total welfare housing . . 146.6 174.4 187.7 237.7 253.6

Housing for the Services— Gross advances to the States . 9.2 7.0 6.2 7.8 16.6

less repayments . . . . Cr. 0. 5 Cr. 0. 5 Cr. 0. 6 Cr. 0. 6 Cr. 0. 6

Total housing for the Services 8.8 6.5 5.6 7.2 15.5

Defence Service Homes— Land acquisition . . . . 2. 3 3. 7 5. 3 4. 0 Ί

Construction of houses . . 7.5 6.9 7.7 2.0

!> 115.0

J ■·

Gross advances to home buyers and home improvers . . . 51.2 54.4 61.3 95.9

less repayments . . . . Cr. 43.4 Cr. 48.0 Cr. 61.5 Cr. 64.8 Cr. 71.5

Total Defence Service Homes 17.6 17.0 12.8 37.2 43.5

General administration expenditure(c) 6.5 7.5 8.5 10.2 12.7

Total Housing Programs . 179.5 205.4 214.6 292.3 325.3

(a) The total outlay shown here differs from that shown for Housing in Statement No. 3 attached to the Budget Speech. The Housing category in the functional classification of budget outlay excludes Housing for the Services and Dwellings for aged pensioners, which are classified to Defence and Social security and welfare respectively; and includes housing in the Territories, housing for Abori­

ginals and other general housing items (e.g. expenditure on Commonwealth hostels), which are not shown here (see Statement No. 3 attached to the Budget Speech, and see also (6) below). (6) Allo­ cation by State Governments of Loan Works program funds. The 1972-73 figure also includes advances to the States of $6.55 million under the Housing Assistance Act 1973. In 1971-72 and

1972-73 housing allocations were met by the States from their Loan Council borrowing programs, (c) Operating cost of the housing group of the Department of Housing and Construction, and of the former Department of Housing.

49

Tasmania

Un­

allocated

Total

388

20,000 Cr. 742 280 680 130

6,750 235,000 Cr. 18,500 10,000

20,400

20,606 130 253,650

191 15,478

n.a. n.a. 115,000

Cr.72,500

, n.a. n.a. 42,500

n.a. n.a. 12,700

n.a. n.a. 324,328

URBAN TRANSPORT: PROGRAMS OF THE DEPARTMENT OF TRANSPORT

The availability of efficient transport for the movement of passengers, goods and materials in our cities is essential to their well-being and proper

development.

The Australian Government’s responsibilities in this area are under the control of the Minister for Transport and include aspects of land, sea and air administration and the activities of the transport Statutory Authorities. The Government has also announced its willingness to accept, on mutually agreed

terms, the transfer of the railway system of any State and to become more directly involved in ports.

Of particular importance are the financial assistance programs aimed at the provision of adequate and attractive public transport systems and at the establish­ ment of complementary and free flowing road networks to serve our cities. It is important that transport facilities within the cities give associated activities access to one another at a cost which people can afford. Long and time-consuming journeys between home and work handicap the city-dweller and, unchecked, can

impose intolerable costs.

Because of the inter-relationship between urban transport planning and urban development there is close co-ordination between the Department of Transport, the Department of Urban and Regional Development and other interested Departments in the development of these programs.

Present programs for urban transport are explained below; provision has been made for $208.2 million to be spent on them in 1974-75. (Expenditure in 1973-74 was $168.7 million).

While in the past it has been traditional for transport finance to be provided on a modal basis, the commencement of the Urban Public Transport Assistance program marked the introduction of multi-modal financing. The principle has been extended under the Transport (Planning and Research) Act 1974 to the

provision of research finance for both roads and urban transport. Under new legislation, scheduled for introduction in late 1975, a financing program based on the transport function as a whole rather than on the individual modes, will be instituted.

Urban Public Transport

Following an announcement of the Urban Public Transport Assistance scheme by the Minister for Transport in February 1973, the Prime Minister completed an Agreement with each of the six State Premiers to provide financial assistance to the States towards upgrading urban public transport in the State capital cities. The scheme will provide assistance over five years, commencing 1 July 1973 and ending on 30 June 1978. Under the Agreement, the Australian Government will meet two-thirds of the cost of approved projects. The objectives of the program are to improve the quality, capacity, efficiency and frequency of public transport in Australian cities. The State Grants (Urban Public Transport) Act 1974 ratified the Agreement and appropriated $71.9 million for assistance toward projects approved in August 1973, for commencement during 1973-74.

52

No payments were made in 1973-74 as the enabling legislation had not been passed. However, the States did undertake work on this program involving expen­ diture of $18.5 million. In this year’s Budget, provision has been made for pay­ ment of $67.1 million to the States towards Urban Public Transport, as follows:

$ million

• towards expenditure incurred in 1973-74 . . . . 12.3

• towards expenditure in 1974-75 on continuation of projects approved in 1973-74 . , . . . . . . . . 27.0

• towards expenditure on new projects approved in 1974-75 . . 27.8 A further amount of over $71 million will be available for the continuation of these projects into future years of the program.

For 1974-75, $1 million will be provided for minor projects in the major pro­ vincial centres of Newcastle, Wollongong and Geelong.

Over 80 per cent of the expenditure under this scheme will be for rail projects, of which the main items are track improvements (64 per cent) and acquisition of rolling stock (15 per cent). Acquisitions of buses, trams and ferries account for just under 10 per cent of total expenditure, and improvements to supporting facilities for these account for the remainder.

Details of some of the larger urban public transport projects so far approved in each State, and their costs, together with the cost of the balance of the program in each State, are as follows:

Project

Total Cost Project

Total Cost

5 million $ million

New South Wales— Queensland—

East Hills—Glenfield railway project Electrification of suburban railway (Sydney to Tempe, Tempe to East lines (Ipswich to Darra, Darra to

Hills, East Hills to Glenfield) . 21.44 Ferny Grove, Northgate to

New electric double deck cars for Shorncliffe) . . . . 14.99

suburban railway system . . 18.75 Cross river rail link to Roma Street

Works towards quadruplication of Station (Merrivale Street Bridge) 8.37

railway line between Granville and Minor interchanges . . . 2.65

Penrith . . . . . 13.34 Additional railway trackage—

Railway signalling improvements . 8.75 northern corridor—Roma Street Other projects . . . . 19.78 to Northgate . . . . 2.12

Other projects . . . . 1.23

Total . . . . . 82.06

Total . . . . . 29.36

Victoria— Railway signalling improvements . 14.38 South Australia— Melbourne train replacement . . 11.70 Christie Downs railway extension— Glen Waverley line improvements . 3.02 including additional track from

Caulfield-Mordialloc railway pro- Brighton to Port Stanvac—line to

ject—stage 1 (Caulfield to Chelten- be electrified . . . . 12.00

ham)—third track and additional Acquisition of private bus companies 4.11 platform at intermediate stations 6.10 Metropolitan Transport Trust— Ringwood railway corridor improve- acquisition of buses . . . 1.89

ments . . . . . 5.08 New bus depot—land, buildings and

Other projects . . . . 20.21 plant . . . . . 2.00

Other projects . . . . 2.79

Total . . . . . 60.49

Total . . . . . 22.79

53

Project

Total Cost Project

Total Cost

Western Australia— New buses for replacement and

$ million

Tasmania— New buses for replacement and ex-

$ million

expansion purposes . . .

New ferry terminals (Perth to South 4.04 pansion purposes . . .

Land for new workshops and bus 3.60

Perth service) . . . . 0.34 depot in Hobart . . . 0.40

Gosnells Bus Depot—replacement of Ticket issuing machines . . . 0.14

existing Armadale Depot . .

Bus . access road from Fitzgerald 0.30 Other projects . . . . 0.04

Street to Central Bus Station . Other projects . . . .

Total . . . . .

0.24 1.65

6.57

Total . . . . .

Total all States . . .

4.18

205.45

Australian Urban Passenger Train. As a complement to the Urban Public Transport assistance program, the Government has commenced the development of a standard basic design for a modern Australian Urban Passenger Train. The Government believes that there are important economic gains to be made from the development of a basic design. With suitable modifications, the train could

then run on all capital city railway systems. The first of the new trains is expected to be in service within three years. In 1973-74 expenditure totalled $177,000. Provision has been made in the Budget for expenditure of $0.9 million for the completion of Stage 2. However, it is expected that a further $1.8 million will be required later in the year if construction of a prototype is approved.

In the meantime, the Australian Government is supporting, on a year-by-year basis, purchase of replacement rolling stock in the State capitals.

Parramatta Railway Project. This project for the construction of a railway system radiating from Parramatta, 24 kms to the west of the Sydney central busi- nes district, is intended to extend significantly the penetration of public transport services into the western suburbs of the Sydney region. It is also intended to be a catalyst to the development of Parramatta as a major employment centre serving the Western Region and relieving the pressure on transport and other utilities currently directed to the City of Sydney.

To date, discussions have been held between the Australian and New South Wales Governments on the implementation of this proposal. If agreement is reached it is anticipated that design and preliminary land acquisition will take place in 1974-75 involving an estimated expenditure of $3.5 million.

Urban Roads The Australian Government has made payments to the States for roads since 1923-24. Assistance under the Commonwealth Aid Roads Act 1964 totalled $750 million for the period 1964-65 to 1968-69, but funds were not specifically directed towards urban roads. The Commonwealth Aid Roads Act 1969 provided for the payment of grants of $1,252 million for the period 1969-70 to 1973-74. Of this amount, $601 million was directed to expenditure on urban arterial roads.

54

The new arrangements for assistance to the States for road works are pro­ vided for in the Roads Grants Bill 1974 and the National Roads Bill 1974, which are currently being considered by Parliament, and the Transport (Planning and Research A c t) 1974. These new arranagements are to extend for three years rather than five as provided for with previous Commonwealth Aid Roads arrangements. This will permit movement towards integration and co-ordination both between

roads and other transport and with urban and regional development. As mentioned earlier, it is intended to legislate further, late in 1975, to give effect to a new set of integrated transport arrangements. This will provide the States with lead time for forward planning, pending the commencement of the new legislation in July

1977 and will be a significant move towards the introduction of a rolling program for transport investment.

Financial assistance for urban arterial and local roads is provided for under the Roads Grants Bill. This legislation provides $355 million for the construction of urban arterial roads and $30 million for the construction of urban local roads over the 1974-75 to 1976-77 period.

Urban Arterial Roads. Urban arterial and sub-arterial roads perform a major portion of the nation’s road transport task. Although they comprise only 2 per cent of all roads in Australia, they carry about 50 per cent of all road travel. Approximately 1,248 kms, or 17 per cent, of the arterial and sub-arterial roads in built-up areas are carrying traffic volumes in excess of 20,000 vehicles per day.

The development of these roads relates closely to Australian Government policies for the improvement of urban public transport. Much of urban public transport, including buses and taxis, uses these roads. Road transport also connects with rail and ferry systems. Furthermore, there is the inseparable

inter-relationship between urban road and land-use planning, as instanced in the development of sub-metropolitan centres and the redevelopment of the central city area and the inner suburbs.

Freeways, an important type of urban arterial road, have a number of transport advantages over heavily loaded arterial roads. However, freeways can also have detrimental social and environmental effects, particularly in inner urban areas.

The Roads Grants Bill 1974 provides for the submission of programs for approval to the Minister for Transport as the responsible Minister. This is the first time that the Australian Government has sought to influence the urban roads program. It proposes to look closely at proposals for urban arterial roads to

ensure that environmental, social and economic aspects are fully investigated with the following objectives in mind:

• to discourage further provision of radial freeway facilities to central business districts where these produce detrimental social and environmental effects;

• to encourage construction of by-pass routes as a means of overcoming the deteriorated inner city environment occasioned by through traffic movements;

• to integrate arterial and residential road improvement programs;

• to integrate with other modes of transport so as to achieve balanced trans­ port systems in urban areas.

55

The Minister for Transport will declare a system of urban arterial roads for the purposes of the Bill in the six capital cities and Newcastle, Wollongong, Geelong, Ballarat, Bendigo, Townsville, Rockhampton, Toowoomba, Gold Coast and Launceston. Works on these roads (construction and reconstruction, engine­ ering studies and investigation, and land acquisition but excluding maintenance) will be eligible for grants under the Roads Grants Bill. The Bill will enable the Minister for Transport to approve urban arterial road projects under this category of grants, whether they are funded by Australian, State or Local Government sources.

The Roads Grants Bill 1974 provides for the following amounts over the next triennium for urban arterial roads:—

Year N.S.W. Vic.

$ million Qld S.A. W.A. Tas. Total

1974-75 42.8 33.0 14.7 6.9 18.1 3.8 119.3

1975-76 37.6 38.1 13.8 6.8 18.6 3.4 118.3

1976-77 36.6 38.1 13.7 6.6 19.5 2.9 117.4

Total 117.0 109.2 42.2 20.3 56.2 10.1 355.0

Urban Local Roads. The Roads Grants Bill 1974 also provides for the intro­ duction of urban local roads as a category for Australian Government financial assistance, for the first time. The Minister for Transport is to be responsible for administration of the Act. In recognition of the important urban implications of urban local road developments he will seek the assistance of the Minister for

Urban and Regional Development.

Urban local roads funds are intended: • for construction of roads in the developing fringe areas of cities, where roads needs can pre-date the capacity of local rates, loan funds and contributions from State Governments to service them; • for reconstruction of existing residential streets which have become either

structurally or environmentally deficient through carrying traffic in excess of their designed capacity; • for up-grading residential streets to standards adequate to accommodate buses; • for demonstration projects of residential street improvement, designed to

improve the environment of streets and neighbourhoods; such projects might illustrate new approaches to existing problems such as encroaching through-traffic, relocation of services, provision for children, pedestrians and cyclists, etc; • to promote consistency with urban plans.

Construction and reconstruction works, including associated studies and investi­ gations, and land acquisition, relating to residential streets (classes 8 and 9 of the Australian Roads Survey) are eligible for this assistance. Maintenance works do not qualify. Existing requirements for sub-dividers to provide the street systems in new subdivisions remain unchanged.

It is intended that this program will be closely linked with the program of Area Improvement assistance administered by the Minister for Urban and Regional Development. Street improvement projects which complement other projects forming an area improvement program will be financed through urban local roads grants.

56

The urban local roads grants will be paid to State Governments who will be responsible for the disbursement of finance to local governments, which are the bodies mainly responsible for the local roads concerned. It is intended that local governments will develop their plans and submissions for grants in concert with

the Australian and State Governments.

Grants will be available to local authorities for works in the six capital city statistical divisions, and also for works in Newcastle, Wollongong, Geelong, Balla­ rat, Bendigo, Townsville, Rockhampton, Toowoomba, Gold Coast and Launceston.

The Roads Grants Bill 1974 provides for the following distribution of urban local roads funds over the next three years:

$ million

Year N.S.W. Vic. Old S.A. W.A. Tas. Total

1974-75 2.0 2.0 0.9 0.5 0.5 0.1 6.0

1975-76 3.3 3.2 1.7 0.8 0.8 0.2 10.0

1976-77 4.6 4.6 2.2 1.1 1.2 0.3 14.0

Total 9.9 9.8 4.8 2.4 2.5 0.6 30.0

Other Programs

The Roads Grants Bill 1974 provides also for roads outside urban areas (rural arterial and local etc.).

The National Roads Bill 1974 provides for the Australian Government to finance the total cost of the construction and maintenance of a National High­ ways System which, links major urban and regional centres. The establishment of a National Highways System is a new initiative and finance specifically for National Highways was not provided for under previous legislation. This Bill also provides

assistance for the full cost of Export Roads and Major Commercial Roads. These are roads which facilitate, or will facilitate, overseas and interstate trade and commerce, such as roads serving sea or airports in both urban and rural areas.

The Transport (Planning and Research) A ct 1974 provides finance to the States for road and urban public transport planning and research. Under the Commonwealth Aid Roads A ct 1969 assistance was provided for road planning and research, while the Urban Public Transport (Planning and Research) Act

1974 allocated funds for urban public transport research and planning for 1973-74. The combining of road and urban public transport research and planning in the same legislation is a move towards examination of transport as an entity with each mode playing its proper part in the transport task. It is also a move towards flexibility of available planning and research funds to permit their employment in the area of greatest need.

A further program is the minor traffic and safety improvements program, which will foster increased expenditure on low-cost improvements that are effective in reducing accidents and improving traffic flow at locations with bad accident or delay records. A basic requirement for works to be included in the program is that they meet adequate existing State warrants or are shown to be justified

on safety or operational grounds. It is intended that each State’s program should be representative of a wide range of appropriate traffic management devices.

57

No. 11—URBAN TRANSPORT PROGRAMS: OUTLAY ($ million)

Program/project 1972-73 1973-74

1974-75 budget estimate

1975-76 forward estimate

1976-77 forward estimate

Urban public transport— Urban public transport Ί

assistance . . . 67.1 1

Australian urban passenger trains . 0.2 0.9

Parramatta railway ^ n.a. n.a. project . . . 3.5

Total urban public transport . . 0.2 71.5

Urban roads— Urban arterial roads . 139.8 166.7 119.3 118.3 117.4

Urban local roads . 6.0 10.0 . 14.0

Minor traffic and safety improvement . . 1.8 4.6 6.1 7.3

Export/major commercial roads . . . 6.8 10.7 12.6

Total urban roads . 139.8 168.5 136.7 145.1 151.3

Total Urban Transport Programs . . 139.8 168.7 208.2 n.a. n.a.

Supplementary grants for roads and transport planning and research grants, which cannot be readily separated into rural and urban, are as follows:

($ million)

1972-73 1973-74 1974-75 budget estimate

1975-76 forward estimate

1976-77 forward estimate

Supplementary grants . . 9.0 6.8

Planning and research . . 4.0 4.7 (a) 7.6 (a)9.1 (0)9.3

Total . . . . 13.0 11.5 7.6 9.1 9.3

(a) Includes urban public transport planning and research.

58

H EALTH CARE PROGRAMS

In view of its national responsibility, the Australian Government is con­ cerned to promote the modernisation and regionalisation of hospitals and other health services throughout Australia.

The last year has seen a significant increase in the Australian Government’s direct involvement in the provision of personal health care services. A major step has been to establish a Hospitals and Health Services Commission in April 1974 (as successor to an interim committee) to investigate and report on various

aspects of the delivery of health care in Australia. Responsibility for implementing policies arising out of the Commission’s recommendations devolves upon the Australian Department of Health.

In 1973-74, expenditure on the health care programs outlined below amounted to $19.0 million; this will rise to $70.5 million in 1974-75.

Hospitals Development Program As part of its investigation of Australia’s health care needs, the Hospitals and Health Services Commission has recently completed a detailed study of hospital facilities (including general and mental hospitals, nursing homes, and health

hostels) in Australia. In its Report on hospitals in Australia, tabled in the Aus­ tralian Parliament on 10 April 1974, the Commission recommended, inter alia, that the Australian Government should make available to State Governments a sum of $760 million during the five year period commencing 1 July 1974, for the provision, expansion, modernisation and re-equipment of hospital facilities in the

States. In considering the Commission’s recommendations, the Government’s primary objective will be to identify regions that show clearly the need for hospital facilities in accordance with the criteria presented in the Report. Since the objective of comprehensive care can best be achieved by considering, within

a regional framework, the range of services required for a population of specified size, the Government will have regard to such factors as population densities, existing facilities and services, and the quality of transport and communications.

An important recommendation made in the Report concerns the establish­ ment of Joint Hospitals Works Councils in the States to advise the Federal Govern­ ment on priorities, expenditures and standards for hospitals. In proposing the five-year Hospitals Development Program, the Hospitals and Health Services Commission recommends that in the first instance $28 million be made available in 1974-75 towards State capital works programs. It is anticipated that funds

allocated by the Australian Government for hospital programs in the States will rise significantly as the Program develops. Under the proposed Hospitals Development Program, State authorities will still be contributing towards the cost of hospital construction. It is envisaged that in the first year of the Program minimum expenditures by the States will be as follows:

$m

New South Wales . . . . . 33

Victoria . . . . . . . 26

Queensland . . . . . . . 14

South Australia . . . . . . 1 2

Western Australia . . . . . 1 1

Tasmania . . . . . . . 4

Capital Cities Hospitals Development Program. While the study of hospital facilities was being undertaken by the Hospitals and Health Services Commission, the Australian Government provided financial assistance during 1973-74 for hospital development under the Capital Cities Hospitals Development Program. A total of $4.5 million was allocated for urgent programs in New South Wales, Victoria, Queensland, South Australia and Western Australia.

Community Health Program Community Mental Health, Alcoholism and Drug Dependancy Program While the provision of primary health care facilities and services has traditionally been left to State, local government and private initiatives, the Aus­ tralian Government has recognised the need for Federal initiatives to ensure the adequate development of community health care in Australia.

A national framework for community health care was selected as the first major project to be completed by the then Interim Committee on Hospitals and Health Services, with the objective of formulating a national initiative to encourage the provision of a range of high quality, readily accessible, comprehensive and integrated health and related welfare services. The purpose of this initiative was

to enhance the effectiveness and efficiency of health care to the community at local, regional, State and national levels.

In formulating possible initiatives, the Interim Committee noted that the development of community health resources providing comprehensive and integrated medical and social care for a given region, and appropriate to the community to be served, depends upon comprehensive community planning,

acceptance of the services by those for whom they are intended, co-ordinated* implementation, and ongoing evaluation.

The Interim Committee’s first report entitled A Community Health Program for Australia was endorsed as a three-year Program (1973-74 to 1975-76) by the Australian Government and subject to review at the end of that period. In the Program, the Interim Committee recommended block grants for the planned development of regionalised community health services, and specific grants for

approved projects including those provided in response to specific and urgent community need, and which may later be incorporated into integrated health care delivery systems.

From July 1973, the Australian Government has made funds available under the Program to foster the development of co-ordinated community-based health services, covering prevention, treatment, rehabilitation, continuing care, and related welfare aspects. A total of $10 million was made available for this purpose in 1973-74.

A further $7.5 million was made available during the same period under the Community Mental Health, Alcoholism and Drug Dependancy Program (pro­ vided for by the Mental Health and Related Services Assistance A ct 1973) for the provision of community-oriented facilities for prevention, out-patient treat­ ment, training and rehabilitation in the mental health, alcoholism and drug dependancy fields. Provision has been made in Australian Department of Health estimates for an expenditure of $7.5 million under the Program for the 1974-75

fiscal year. After 1974-75, this Program will be integrated with the broader Community Health Program. It is anticipated that expenditure on the integrated Program in 1975-76 will amount to $65 million.

60

The following table gives financial details of the actual or estimated expendi­ ture on these programs for the years shown:

($ million)

1972-73 1973-74 1974-75 budget estimate

1975-76 forward estimate

Community health program . . .

Community mental health, alcoholism and 9.9 35.0-j

65.0

drug dependancy program . . . ·* 6.7 7.5 j

Health Transport Rural Health Services With the present trend away from institutional care and the resultant increas­ ing demand for health transport services, the Hospitals and Health Services

Commission is formulating a national program to support the development and expansion of co-ordinated health transport services. Accordingly, consideration is being given to the feasibility of establishing regional transport authorities vested with responsibility for co-ordinating health transport services and ensuring

adequacy of these services. The Commission is also investigating the provision of health services in rural areas, having regard to the need for support and assistance for health personnel through regional co-ordination of health facilities and services.

61

Programs of urban and regional development for 1974-75 constitute another significant step forward in the Australian Government’s continuing interest in the problems of the cities, the progress of the various regions of the Australian con­ tinent, the more equitable and efficient spatial allocation of resources and the improvement of the quality of community life. The future will see further steps, some of which are already foreshadowed in this paper.

The programs for urban and regional development described here all involve continuing and, mostly, rising demands upon resources for their full realisation in the terms in which they are currently envisaged. Wherever it has been possible, an indication of the magnitude of these forward demands has been given in forward estimates accompanying the figures for 1974-75. These forward estimates show the approximate extent of the future demands upon resources involved in continued pursuit of policies of urban and regional development in terms of present thinking about ways and means, timing and ultimate objectives. The forward estimates are not, in any sense, commitments for the future or expectations of what expenditure will turn out to be. Indeed, actual expenditure in the years ahead may very well be different, if only because of changing prices; but it may also be different because of revisions to policies, or deferment of ultimate achieve­ ment, a re-arrangement of annual expenditures or changes in the way work is

done. It is, nevertheless, useful to look ahead in this way, so that any possible need for such changes can be more easily anticipated and the consequences of such changes for the realisation of programs more fully appreciated, than by a review of single, annual estimates in isolation each year.

The regional impact, in general terms, of these programs has also been shown as far as possible. The addition of a spatial aspect to the traditional concept of an efficient productive allocation of resources is not entirely new to Australia. It has found expression in our earlier history in all those measures, predominantly taken at State Government level, to open up to settlement the more fertile parts of our continent, with development fanning-out from the first settlements from which the capital cities grew. However, the more recent, unguided, concentration of our development in the capital cities themselves has created a need for new initiatives from government to permit a better spatial distribution of economic activity and community living. The stresses created in the cities, and the inequalities

found to be developing throughout the country in the quality of life, also call for even further initiatives to achieve a more equitable distribution of the amenities governments can provide. The challenge is being taken up by the Australian Government in the develop­

ment of growth centres, area improvement programs and the other programs outlined in this paper. However, the unique element in the approach of the Aus­ tralian Government to the complex needs of our times is the proposal to develop a co-ordinated and planned national strategy of urban and regional development. It is the national character of the present initiative and the hope it offers of co-ordinated solutions to today’s problems which requires the urgent and active participation of the Australian Government.

IV. CONCLUSION

62

New initiatives require the development of new tools. A particularly important tool in the Australian context is a comprehensive picture of the activities of all arms and levels of government directed at or influencing urban and regional development. This paper is itself a step forward in the development of a frame- ί work of reference for co-ordinated decision-making, by all levels of government | about urban and regional affairs. It is clearly only a first step; the ultimate objec­

tive will be to present a picture of governmental outlays at all levels of govern­ ment on functions relevant to urban and regional development and described in terms of the major regions to which those outlays apply.

The first task in consultation with other Ministries is to bring into this frame­ work all appropriate outlays of the Australian Government; then it would be desirable to add State and Local Government outlays, the transactions between the various levels of government and, finally, their classification in terms of major

regions. Only then can decisions be made by those concerned in the light of the full knowledge of the total effort being made.

Knowledge is not a free good. The development of an information system of the complexity and size involved here has a cost in manpower and in time. It is an ambitious project to provide such a volume of information and it cannot be pretended that it can be made fully effective within a short time. It is a large undertaking. It is a long term project. I t already has. significance for all sections

bf the Australian community and will have, it is to be expected, more and more ps time goes on. The Australian Government will be looking to the State Govern­ ments for co-operation and help, which they are indeed well placed to give, to nake this so. However, success in the co-ordination-of such a complex field will

epend on the co-operation and help of all involved in fostering urban and regional evelopment.

63

Programs of urban and regional development for 1974-75 constitute another significant step forward in the Australian Government’s continuing interest in the problems of the cities, the progress of the various regions of the Australian con­ tinent, the more equitable and efficient spatial allocation of resources and the improvement of the quality of community life. The future will see further steps,

some of which are already foreshadowed in this paper.

The programs for urban and regional development described here all involve continuing and, mostly, rising demands upon resources for their full realisation in the terms in which they are currently envisaged. Wherever it has been possible, an indication of the magnitude of these forward demands has been given in forward estimates accompanying the figures for 1974-75. These forward estimates show the approximate extent of the future demands upon resources involved in continued pursuit of policies of urban and regional development in terms of present thinking about ways and means, timing and ultimate objectives. The forward estimates are not, in any sense, commitments for the future or expectations of what expenditure will turn out to be. Indeed, actual expenditure in the years ahead may very well be different, if only because of changing prices; but it may also be different because of revisions to policies, or deferment of ultimate achieve­ ment, a re-arrangement of annual expenditures or changes in the way work is

done. It is, nevertheless, useful to look ahead in this way, so that any possible need for such changes can be more easily anticipated and the consequences of such changes for the realisation of programs more fully appreciated, than by a review of single, annual estimates in isolation each year.

The regional impact, in general terms, of these programs has also been shown as far as possible. The addition of a spatial aspect to the traditional concept of an efficient productive allocation of resources is not entirely new to Australia. It has found expression in our earlier history in all those measures, predominantly

taken at State Government level, to open up to settlement the more fertile parts of our continent, with development fanning-out from the first settlements from which the capital cities grew. However, the more recent, unguided, concentration

of our development in the capital cities themselves has created a need for new initiatives from government to permit a better spatial distribution of economic activity and community living. The stresses created in the cities, and the inequalities found to be developing throughout the country in the quality of life, also call for even further initiatives to achieve a more equitable distribution of the amenities governments can provide.

The challenge is being taken up by the Australian Government in the develop­ ment of growth centres, area improvement programs and the other programs outlined in this paper. However, the unique element in the approach of the Aus­ tralian Government to the complex needs of our times is the proposal to develop

a co-ordinated and planned national strategy of urban and regional development. It is the national character of the present initiative and the hope it offers of co-ordinated solutions to today’s problems which requires the urgent and active participation of the Australian Government.

IV. CONCLUSION

62

New initiatives require the development of new tools. A particularly important tool in the Australian context is a comprehensive picture of the activities of all | arms and levels of government directed at or influencing urban and regional development. This paper is itself a step forward in the development of a frame- I work of reference for co-ordinated decision-making by all levels of government I about urban and regional affairs. It is clearly only a first step; the ultimate objec-

live will be to present a picture of governmental outlays at all levels of govern- I ment on functions relevant to urban and regional development and described in | terms of the major regions to which those outlays apply.

I The first task in consultation with other Ministries is to bring into this frame- F work all appropriate outlays of the Australian Government; then it would be in desirable to add State and Local Government outlays, the transactions between III the various levels of government and, finally, their classification in terms of major Bi regions. Only then can decisions be made by those concerned in the light of the P full knowledge of the total effort being made.

II Knowledge is not a free good. The development of an information system of ■ the complexity and size involved here has a cost in manpower and in time. It liis an ambitious project to provide such a volume of information and it cannot ■the pretended that it can be made fully effective within a short time. It is a large ■undertaking. It is a lo n g term project. It already has. significance for all sections liof the Australian community and will have, it is to be expected, more and more ILas time goes on. The Australian Government will be looking to the State Govern- lUnents for co-operation and help, which they are indeed well placed to give, to

snake this so. However, success in the co-ordination" of such a complex field will idepend on the co-operation and help of all involved in-fostering urban and regional Hevelopment.

63

Programs of urban and regional development for 1974-75 constitute another significant step forward in the Australian Government’s continuing interest in the problems of the cities, the progress of the various regions of the Australian con­ tinent, the more equitable and efficient spatial allocation of resources and the improvement of the quality of community life. The future will see further steps, some of which are already foreshadowed in this paper.

The programs for urban and regional development described here all involve continuing and, mostly, rising demands upon resources for their full realisation in the terms in which they are currently envisaged. Wherever it has been possible, an indication of the magnitude of these forward demands has been given in

forward estimates accompanying the figures for 1974-75. These forward estimates show the approximate extent of the future demands upon resources involved in continued pursuit of policies of urban and regional development in terms of present thinking about ways and means, timing and ultimate objectives. The forward estimates are not, in any sense, commitments for the future or expectations

of what expenditure will turn out to be. Indeed, actual expenditure in the years ahead may very well be different, if only because of changing prices; but it may also be different because of revisions to policies, or deferment of ultimate achieve­ ment, a re-arrangement of annual expenditures or changes in the way work is done. It is, nevertheless, useful to look ahead in this way, so that any possible

need for such changes can be more easily anticipated and the consequences of such changes for the realisation of programs more fully appreciated, than by a review of single, annual estimates in isolation each year.

The regional impact, in general terms, of these programs has also been shown as far as possible. The addition of a spatial aspect to the traditional concept of an efficient productive allocation of resources is not entirely new to Australia. It has found expression in our earlier history in all those measures, predominantly

taken at State Government level, to open up to settlement the more fertile parts of our continent, with development fanning-out from the first settlements from which the capital cities grew. However, the more recent, unguided, concentration

of our development in the capital cities themselves has created a need for new initiatives from government to permit a better spatial distribution of economic activity and community living. The stresses created in the cities, and the inequalities found to be developing throughout the country in the quality of life, also call for even further initiatives to achieve a more equitable distribution of the amenities governments can provide.

The challenge is being taken up by the Australian Government in the develop­ ment of growth centres, area improvement programs and the other programs outlined in this paper. However, the unique element in the approach of the Aus­ tralian Government to the complex needs of our times is the proposal to develop a co-ordinated and planned national strategy of urban and regional development. It is the national character of the present initiative and the hope it offers of co-ordinated solutions to today’s problems which requires the urgent and active participation of the Australian Government.

IV. CONCLUSION

62

New initiatives require the development of new tools. A particularly important tool in the Australian context is a comprehensive picture of the activities of all arms and levels of government directed at or influencing urban and regional development. This paper is itself a step forward in the development of a frame­

work of reference for co-ordinated decision-making, by all levels of government about urban and regional affairs. It is clearly only a first step; the ultimate objec­ tive will be to present a picture of governmental outlays at all levels of govern­ ment on functions relevant to urban and regional development and described in

terms of the major regions to which those outlays apply.

The first task in consultation with other Ministries is to bring into this frame­ work all appropriate outlays of the Australian Government; then it would be desirable to add State and Local Government outlays, the transactions between the various levels of government and, finally, their classification in terms of major regions. Only then can decisions be made by those concerned in the light of the full knowledge of the total effort being made.

Knowledge is not a free good. The development of an information system of the complexity and size involved here has a cost in manpower and in time. It is an ambitious project to provide such a volume of information and it cannot be pretended that it can be made fully effective within a short time. It is a large undertaking. It is a long term project. It already has, significance for all sections of the Australian community and will have, it is to be expected, more and more as time goes on. The Australian Government will be looking to the State Govern­ ments for co-operation and help, which they are indeed well placed to give, to make this so. However, success in the co-ordination of such a complex field will depend on the co-operation and help of all involved in fostering urban and regional •development.

63

R Ps

•i* ψ,

P