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Tuesday, 15 August 1972
Page: 71

Commonwealth expenditures are estimated to increase by $1,045,348,000 or 11.6 per cent, to $10,077,606,000 in 1972-73.

Year-to-year comparisons have been affected by accounting changes and other factors, including the occurrence in 1971-72 of an additional public service and pensions pay day, and the occurrence in 1972-73 of one extra twelve-weekly child endowment payment. The largest effect derives from the transfer of the pay-roll tax to the States from 1 September 1971, which altered financial assistance grants payable to the States, as well as pay-roll tax revenue figures. Details of the arrangements governing the transfer of pay-roll tax to the States are set out in the document 'Commonwealth Payments to or for the States 1972-73' presented concurrently with the Budget Speech, and the effects of the transfer on the figures are discussed in Statement No. 7.

The estimates for 1972-73 are compared in summary form with actual expenditures in 1970-71 and 1971-72 in the following table : («) The figures for 1970-71 and 1971-72 have been adjusted for minor accounting changes to place them on a basit com pa rabi* *ith the estimates for 1972-73.

Tables setting oui the composition of the various items of expenditure and notes on the main variations follow.

Item No. 1 - Defence Services

(o)   Some of the figures for 1970-71 Iia ve been adjusted for accounting changes to place them on a basis comparable with the figures for 1971-72 and the 1972-73 estimates.

Total expenditure on Defence Services is expected to increase in 1972-73 by 5105,925,000. Pay and salary costs are expected to increase by $19,391,000 after allowing for the fact that there will be one pay day less in 1972-73 than in 1971-72. The main reasons for the expected increase are the full-year effects of the implementation of the Kerr Committee recommendations, the costs of awards and determinations made in 1971-72 and the expected changes in the strengths of the Forces and of civilian staffs of departments in the Defence Group.

Other increases in estimated expenditure include $41,966,000 for the purchase, manufacture and lease of aircraft for the R.A.N, and the R.A.A.F., $19,303,000 for equipment and stores for the R.A.N, and R.A.A.F., $17,168,000 for accommodation and technical facilities and SI 1,455,000 for Naval construction. Expenditure on forces overseas (other than pay) by the Army and the R.A.A.F. is expected to decrease by $8,714,000, whilst expenditure on arms, armament and equipment for the Army is expected to be $21,909,000 less.

Defence

Salaries are estimated to increase by $664,000 mainly as a result of the full year effect of Public Service salary increases awarded in 1971-72. The increase of $2,281,000 in administrative expenses is due mainly to an accelerated programme involving the engagement of contractors to assist in cataloguing defence stores and equipment. Defence aid on existing programmes in respect of Malaysia and Singapore is expected to increase by $2,936,000, whilst defence aid to South Vietnam is expected to cost $1,116,000 less. Defence co-operation wilh Indonesia, a newly approved project, is expected to cost $3,800,000 in 1972-73.

Navy

Expenditure on pay and salaries is estimated to increase by $7,016,000 due to the effects of the Kerr Committee recommendations, arbitration and other pay and salary determinations in 1971-72 and expected increases in strengths in 1972-73. Expenditure on Naval construction is expected to increase by $1 1,455,000, whilst the programme for repairs and maintenance of ships and aircraft is estimated to involve an additional $3,829,000. Purchase and manufacture of aircraft is expected to increase by $3,673,000 largely as a result of the decision to purchase new helicopters. Estimated expenditure on general stores is $15,446,000 more than in 1971-72 due mainly to increased expenditure on ammunition, equipment and spares for naval aircraft, and maintenance stores for H.M.A. ships.

Army

The main factors contributing to the expected increase of $7,043,000 in pay and salaries are the full year effects of pay rises in 1971-72 resulting from the recommendations of the Kerr Committee and arbitration and other determinations made in 1971-72.

The forecast reduction of $21,909,000 in arms, armament and equipment and $6,773,000 in maintenance of forces overseas reflects, in the main, the reduced activity consequent upon the withdrawal of the Army component from Vietnam.

Expenditure on accommodation and technical facilities is expected to increase by $7,224,000, mainly to provide for increased housing requirements and increased repairs and maintenance.

Air

The estimated increase in expenditure includes $2,007,000 for pay and salaries, due to similar factors as apply to other Services. Expenditure on aircraft purchase, manufacture and lease is expected tobe $36,293,000 greater, reflecting the increased payments expected to be made on the Fill-C aircraft and medium-lift helicopters. The principal reason for the estimated increase of $4,057,000 for equipment and stores is expected delivery of aircraft spares.

The effect of the withdrawal of the R.A.A.F. from Vietnam is reflected in the expected reduction of $1,941,000 in maintenance of forces overseas. Expenditure on accommodation and technical facilities is expected to increase by $6,782,000.

Supply

The increase in expenditure by the Department of Supply on civil salaries is estimated at $2,431,000, reflecting the full year effect of determinations and awards in 1971-72. Expenditure on furniture removals, vehicles and storage is expected to be $1,951,000 greater than in 1971-72. Production development and assistance expenditures are estimated to increase by $5,014,000 reflecting production of the Nomad aircraft, continuation of the light observation helicopter production programme and other developmental projects.

General Services

The Government contribution to the Defence Forces Retirement Benefits Fund is expected to increase by $1,998,000 and interest payments on loans raised in the United States of America for defence equipment purchases by $578,000. Increased expenditure on civil defence, the administration of the National Service Act and vocational training for discharged National Servicemen require an additional $725,000.

Defence Expenditure Overseas

Defence expenditure overseas is expected to be $217,000,000, or $41,000,000 more than in 1971-72.

During 1971-72 payments continued overseas on such aircraft projects as the Tracker, Skyhawk and HS748 aircraft for the R.A.N. and the FI 1 1-C, Mirage and Macchi for the R.A.A.F., on other capital items including the Oberon class submarines and on maintenance of forces overseas. The foregoing figures do not include defence expenditure in Papua New Guinea or on defence aid for overseas countries.

Defence expenditure overseas includes payments for material and equipment financed under the credit arrangements with the United States of America authorised by the Loan (Defence) Acts 1966, 1968, 1970 and 1971:

Repayments of principal under these loans amounted to $62,630,443 in 1971-72 and are expected to amount to 866,340,000 in 1972-73.

1970-71

Actual

1971-72

Actual

I972-7J

Estimate

General Revenue Payments - Financial Assistance Grants Special Grants Special Revenue Assistance

Total General Revenue Payments . .

Specific Purpose Payments of a Revenue NaturePayments under the Financial Agreement -

Interest on State Debts

Sinking Fund on State Debts Debt Charges Assistance Universities

Colleges of Advanced Education Independent Schools . . . .

Research Grants . .

Blood Transfusion Services . . . . Home Care Services Senior Citizens Centres Paramedical Services Housing Grants Road Safety Practices Natural Disaster Payments Non-metropolitan Unemployment Relief Grants Agricultural Extension Services Minor Agricultural Research Cattle Tick Control

Bovine Brucellosis and Tuberculosis Eradication Coal Mining Industry - Long Service Leave Supervision of Apprentice Training

Total

Specific Purpose Payments of a Capital NatureUniversities

Colleges of Advanced Education Teachers Colleges Pre-School Teachers Colleges Science Laboratories Technical Training School Libraries

Capital Grants for Government Schools. . Mental Health Institutions Tuberculosis Hospitals Senior Citizens Centres Nursing Homes

Dwellings for Aged Pensioners. . Natural Disaster Payments Softwood Forestry

Brigalow Lands Development - Queensland Bundaberg Irrigation Works- Queensland Cressy-Longford Irrigation Scheme - Tasmania Ord River Irrigation Project - Western Australia Water Resources Investigations/Measurements Water Supply - Western Australia Flood Mitigation- New South Wales Salinity Reduction - Victoria Fairbairn Dam - Queensland Copeton Dam - New South Wales King River Dam - Victoria Pike Creek Dam- New South Wales-Queensland Tailem Bend Pipeline- South Australia . . Millewa Pipeline- Victoria

Dartmouth Dam - New South Wales. Victoria, S.A. Commonwealth Aid Roads Grants Beef Cattle Roads Byre Highway- Sealing Railway Standardisation Projects Bell Bay Railway- Tasmania Hydro-electric scheme- Tasmania Gladstone Power Station- Queensland . . Natural Gas Pipeline- South Australia . . Grassy Harbour- Tasmania Western Australia-DarwiniShipping Service Tourist Attractions Other

Total

Total Specific Purpose Payments

Works and Housing Programmes - Interest-free Capital Grant , .

Advances ..

Total Works and Housing Programmes

Total Payments to or for the States and Works and _ Housing Programmes

$'000 1,418,518 18,680 43,000

1,480,198

15,170 24.550 11,504 58,877 15,743 24,253 4,170 845 318 3

150 9,944

4,985 68 388 1,421 1.416

173,806

16,346 14,837 2,470 856 13,062 12,535 13,257

4,199

469 84

337 4,981 9,978 4,784

300 1,900

200 5,847 2,622 1,792 1,098 25 4,785 5,750 2,000

1,500

218,000 8,985

7.607

3,211

2,250

252

366,319

$40,124

200,000 623,000

823,000

$'000 1,440,878

23.800 (a)72,500

S'000 1.653.600 38.600

1,537,178

1,692,200

15,170 26,323 23.008 67,596 18,372 29,594 4,341 990 491 12 7

4,000 150

1,188 26,999

5,679 102 450

2,404

1,737

15.170 27,312 34,512 74.474 24.550 41.100 5.7TS 1.170 730 25 19 6,750 150

72,000 6.300 134 486 4,000 2,082 218

228,612

316.957

23,002 15,641 11.153

631 10,824 7,411 9,780 6,660 4,207

438

268

460 7,622 5,844

389 1,050 3,250

449 4,760 1,864 2,000

923 22 5,530 4,500

212

1,500

245,250 10,150

3,012 3.094 2,500

1.750

724

20,502 18,943 16,378 534 10,824 12.176 9.707 13.340 5.000 392 500 1.600 6,471

9,215 1.000 5,500

101 1.293 3,736

158 1,200 38 2,000 4,000 92

842 1.040

500 1.500 279.000 8.760

625 1.750 1.156

14,000

1,158 2,500 250 548

396,870

458.300

625,482

77S.257

219,100 672,900

248.539 733,461

892,000

982,000

2.843.321

3,054.660

3/49.437

This item includes payments in the nature of financial assistance to or tor the States, except payments to the States Tor the maintenance of tuberculosis hospitals and payments under the Stales Grams {Deserted Wives) Act 1968, both of which are charged to the National Welfare Fund, contributions towards the cost of development of an integrated township at Exmouth, which are charged to Defence Services, and expenditure on Aboriginal Advancement, which is included under Item Number 10 - Other Expenditures. It also includes interest-free capital grants to the States to finance pari of their non-revenue producing works, and advances to the States for works and housing under the Loan Council borrowing programmes for State works. Further details of the various payments are given in the White Paper 'Commonwealth Payments to or for the States 1972-73'.

In 1972-73 Commonwealth payments to or for the States and works and housing programmes are estimated to total $3,449,437,000- an increase of $394,797,000 or 12.9 percent. Year-to-year comparisons are, however, affected by the arrangements under which pay-roll tax revenues were transferred to the States as from I September I97t.

General Revenue Payments

General revenue payments are estimated to increase by $155,022,000. The estimated increase in the financial assistance grants of $212,722,000 is affected by the arrangements under which pay-roll tax revenues were transferred to the States in 1971-72. Under these arrangements, these grants were reduced to offset most of the loss in Commonwealth budget revenues resulting from the transfer. Of the total increase in financial assistance grants, an amount of $128,000,000 represents additional grants which were agreed at the June 1972 Premiers' Conference. The remainder of the estimated increase arises from the operation of the formula under which these grants increase each year

Special grants paid on the recommendation of the Commonwealth Grants Commission ure estimated o increase by $14,800,000. In 1971-72 special revenue assistance payments totalled $72,500,000, including a special advance of $17,500,000 to New South Wales. No provision has been made in the budget for special revenue assistance to the States in 1972-73

Specific Purpose Paymentsof a Revenue Nature

Specific purpose payments of a revenue nature are estimated to be $88,346,000 greater than in 1971-72. Under the Financial Agreement an amount of $15,170,000 is paid annually by the Commonwealth to the States towards interest payable by the States. The Commonwealth also makes contributions to the States' Sinking Funds; these contributions are expected to increase by $989,000 in 1972-73. The amount payable in 1972-73 by the Commonwealth to the States for assistance with debt charges under the States Grants {Debt Charges Assistance) Act 1970 will increase by. $1 1,504,000. Grants for non-metropolitan unemployment relief are currently estimated to increase by $45,001,000 to $72,000,000. The arrangements under this scheme are to be reviewed before the end of 1972.

Payments to the States for education purposes are estimated ro increase by $25,996,000 of which $11,506,000 is attributable to increased per capita grants to 'independent schools. The estimated increases of $6,878,000 for universities and $6,178,000 for colleges of advanced education are based on the approved level of recurrent grants for the last year of the 1970-72 triennium and on the level of recurrent grants recommended by the Australian Universities Commission and the Australian Commission on Advanced Education, respectively, for the first calendar year of the 1973-75 triennium. Expenditure under the Slates Grants (Housing) Act 1971 will increase bv $2,730,000 in accordance with the provisions of the Act

Specific Purpose Payments of a Capital Nature

Specific purpose payments of a capital nature are estimated to increase by $61,430,000. This includes estimated increases of $33,750,000 in Commonwealth aid roads grants and $17,302,000 in payments to the States for education, the latter amount including an increase of $6,680,000 in capital grants for government schools arising from a new policy measure announced on 9 December 1971. An amount of $14,000,000 has been set aside to assist Queensland in financing the construction of the Gladstone (Queensland) Power Station in the event that the State satisfies the provisions of the Gladstone Power Station Agreement during 1972-73 ; no Commonwealth expenditure was made on this project in 1971-72. Other large increases include $8,826,000 for the softwood forestry programme, the provision of $1,158,000 to assist Tasmania in the construction of harbour facilities al Grassy (King Island) and $2,500,000 to Western Australia for the purchase of a ship to maintain the State shipping service to Darwin. Payments to the States for the development and control of water resources are estimated to show a net decrease of $3,010,000; increased expenditure on the Bundaberg irrigation works, water resources investigations/measurements and the Dartmouth dam is more than offset by reduced requirements for the Ord River irrigation project, Western Australian southwest region water supply project and the Fairbairn dam. Payments for railway construction projects are estimated to be $3,200,000 less, largely as a result of the estimated decrease of $1 ,938,000 in the provision for the construction of the Bell Bay railway in Tasmania. Payments for beef cattle roads are estimated to decrease by $1,390,000. Financial assistance for the Tasmanian hydro-electric scheme and the South Australian natural gas pipeline ceased at the end of 1971-72.

Works and Housing Programmes

At its meeting in June 1972 the Australian Loan Council approved a government borrowing programme tor 1972-73 of which $982,000,000 was for the financing of State works and housing. This includes $248,539,000 which the Commonwealth is providing as an interest-free capital grant lo help the States finance works from which debt charges are not normally recovered.

The Loan Council approved borrowing programmes of S488,000,000 for State semi-government and local authorities with individual programmes in excess of $400,000 in 1972-73. The Loan Council also decided that no overall limit should be placed on borrowings by authorities for which the State Governments approve individual programmes of not more than $400,000 in 1972-73. In 1971-72, no overall limit applied on borrowings by authorities for which the State Governments approved individual programmes of not more than $300,000.

Item No. 3 - Payment to National Welfare Fund

(a)   Expenditure on nursing home benefits for certain repatriation patients will now be met from annual appropriations of the Repatriation Department.

Under the National Welfare Fund Act, the payment from Consolidated Revenue to the National Welfare Fund each year must be equal to actual expenditures from the Fund in that year. After taking account or the new proposals announced in the Budget Speech, expenditure from the National Welfare Fund is estimated to increase by $325,767,000 to $2,077,962,000 in 1972-73.

The occurrence of an additional age and invalid pension and public service pay-day in 1971-72 is estimated to have added about $33,000,000 to payments to the National Welfare Fund in 1971-72. thus reducing the size of the estimated increase in payments to the Fund in 1972-73. Working in the opposite direction, however, is the occurrence in 1972-73 of an additional twelve-weekly child endowment payment, estimated to cost $27,400,000. The increase in payments to the Fund includes the additional full-year costs of measures announced in the 1971-72 Budget Speech and during 1971-72 which are estimated at about $100,000,000.

The measures announced in the Budget Speech are estimated to add $154,877,000 to expenditures in 1972-73 and $227,320,000 in a full year. Details of the estimated costs of these proposed measures are shown in the following table.

Item No. 4 - Repatriation Services

(a)   Some of the figures for 1970-71 and 1971-72 have been adjusted for accounting changes to place them on a basis comparable with the 1972-73 estimates. (M Expenditure on nursing home benefits for certain repatriation patients which was previously a charge on the National Welfare Fund will now be met from annual appropriations of the Repatriation Department.

Expenditures on repatriation services are expected to increase by $35,885,000 in 1972-73 to $388,326,000 after allowing for the occurrence of one less twelve -weekly payment of war pensions and benefits and one less Public Service pay-day in 1972-73. The additional pay-days in 1971-72 added Sl3,705,OOOto expenditure in that year. The additional full-year cost in 1972-73 of increased benefits announced in the 1971-72 Budget Speech and in April 1972 is estimated to be $10,998,000. An increase in the number of medical services and in the cost of providing pharmaceutical services, together with the full-year effect of salary determinations in 1971-72 and increased activity at repatriation institutions account for $5,300,000 of the estimated increase in total expenditure. The proposals announced in the Budget Speech are estimated to cost $28,550,000 in 1972-73 and $38,544,000 in a full year. Details of the estimated costs of the particular proposals are shown in the following table.

(a)   Interest payments amounting to $13,971,000 in 1970-71, $14,131,000 in 1971-72 and an estimated $14,709,000 in 1972-73 relating to the drawings under credit arrangements for the purchase of defence equipment in the United States of America are included in Item No. I - Defence Services.

Interest - Commonwealth Inscribed Stock Act, etc.- These interest payments are estimated to increase by $6,366,000 in 1972-73 largely because of increased borrowings by the Commonwealth to finance the interestfree capital grants to the States.

Sinking Fund.The National Debt Sinking Fund Aci 1966-67 provides for contributions each year from the Consolidated Revenue Fund to the National Debt Sinking Fund equal to 4 per cent of the net debt of the Commonwealth liable to these contributions at 30 June of the previous year. The amount payable from revenue is reduced by income earned from investments after allowing for any profit or loss on the sale of securities. Net Commonwealth debt on which the 4 per cent contribution is calculated increased by $96,521,000 during 1971-72 and the gross percentage contribution is therefore estimated to increase by $3,861,000. Afier allowing for a loss on the realisation of maturing securities, the reduction in investment income is estimated to be $291,000 and the net increase in the contribution from Consolidated Revenue is estimated at $4,152,000.

Item No. 6 - Departmental Running Expenses to) Some oi the figures for 1970-71 and 1971-72 have been adjusled for accounting changes to place them on a basis comparable with the 1972-73 estimates.

The estimated increase in departmental running expenses is made up as follows: -

The estimated increase of $36,666,000 in expenditure on wages and salaries reflects the full-year effects of higher wage and salary rates arising from arbitration and other determinations during 1971-72, a the increase in staff numbers. This increase would have been larger but for the effect of an additional Public Service pay-day costing about $17,000,000 in 1971-72.

Itbm No. 7 - Territories (Excluding Papua New Guinea Kd

(a)   Excludes expenditure on capital works and services: see Items Nos. 1 1 and 12- Advances for Capital Purposes and Other Capital Works and Services.

(b)   Includes the Australian School of Pacific Administration.

The estimated increase in expenditure in the Australian Capital Territory includes $2,775,000 for expenditure by the Department of the Interior on police, administration and municipal activities and $2,490,000 for the Department of Education and Science. Of the latter increase $1,271 000 is for payment to the New South Wales Department of Education for teachers at government schools in the Australian Capital Territory; $523,000 is for payment to independent schools as a result of two increases in per capita Slants approved by the Government which are operative from the beginning of 1972 and 1973 respectively; and $428,000 is for increased salaries and general development of the Canberra Technical College. The estimated increase for the Department of Health includes $884,000 for commissioning the Woden Hospital.

The estimated increase of $15,238,000 in expenditure in the Northern Territory results from the continuing expansion of expenditure on Aboriginal advancement and community, welfare and municipal services. The estimated increase of $9,169,000 in expenditure by the Department of the Interior includes $2,782,000 more for salaries and administrative expenses, $1,797,000 for general services undertaken by the Northern Territory Administration and $3,775,000 for Aboriginal advancement Expenditure by the Department of Works is estimated to increase by $3,529,000 and relates principally to expenditure on repairs and maintenance. The estimated increase of $1,587,000 in expenditure by the Department of Education and Science includes $1,004,000 for increased numbers of teachers and salaries and related expenditure at Government schools and the new Darwin Community College.

 

The figures in this table summarise identifiable items in the budget which are wholly or in part in the nature of economic aid to developing countries.

A number of Commonwealth departments and .instrumentalities operate in Papua New Guinea and incur direct expenditures of an economic nature in the Territory which are regarded as aid for purposes of international comparison. Such expenditures are included under other heads in the budget.

Details of total expenditures on external economic aid, including estimates of certain expenditures not ncluded in the table above, are set out in Statement No. 8.

 

The table above summarises expected Commonwealth payments, to industry during 1972-73 together with comparative data of actual payments in the two previous years. Details of these payments, informa-lion on other Commonwealth expenditures which assist industry and details of assistance to industry through the taxation system, are set out in Statement No. 9.

Item No. 10- Other Expenditures

(a)   With the exception of expenditures on Commonwealth scholarship schemes and the payment to the Aborigina Advancement Trust Account, the figures for 1970-71 and 1971-72 have been adjusted for accounting changes to place them on a basis comparable with the estimates for 1972-73. The exceptions are discussed in the text.

(6)   These payments are regarded as being made from contributions in previous years by the Post Office in respect of accrued liability for superannuation.

Other expenditures comprise expenditures under annual and special appropriations from the Consolidated Revenue Fund and the Loan Fund which are not included under other Hems. Total expenditures under this Item are expected to increase by $73,699,000 to $335,185,000 in 1972-73. Comments on the larger variations are set out below.

Education nml Science

Austraiian \uiioimi University.The estimated increase oi $2,806,000 in payments to the Australian National University in 1972-73 is based on the level of recurrent grants approved for the last calendar year of the 1970-72 triennium and on the level of recurrent grants recommended by the Australian Universities Commission for the first calendar year of the 1973-7S triennium.

Commonwealth Scholarship Schema.The estimated increase of 814,172,000 includes 86,043,000 tor university scholarships, 81,873,000 for advanced education scholarships, 81,426,000 for secondary scholarships and 8862,000 for post-graduate awards. As announced in the Budget Speech the estimated increases in university and advanced education scholarships arise mainly from decisions, effective from the beginning of 1973. to increase the number of awards under each scheme by 2,000 to a total of 14,500 and 6,000 per annum, respectively, relax the means test on parental income and increase the living allowance and other benefits to scholarship holders. The estimated increase in expenditure on secondary scholarships results from the phasing in as from the beginning of 1973, of a new scheme of 25,000 awards a year, partially means tested and tenable for the last two years of secondary schooling, in lieu of the existing scheme of 10,000 awards provided annually without a means test. The estimated increase on post-graduate awards reflects increased grants to universities and increased stipends to award holders payable from the beginning of 1973. The increase also reflects the provision of $3,010,000 for the Aboriginal Secondary Grants Scheme and 8720,000 for the Aboriginal Study Grants Scheme; expenditure on these schemes in 1971-72 was $2,536,000 and $474,000, respectively, and was financed from the Aboriginal Advancement Trust Account.

Commonweatlh Scientific and Industrial Research Organization.Ot the total estimated increase of $5,040,000 in 1972-73, $2,442,000 arises from increases in salaries including the cost of recent awards and determinations. An additional $851,000 is required for the redeployment of staff previously supported from primary industry research funds. The balance of the estimated increase reflects higher administrative costs, support for new projects and increased grants for research associations.

Environment, Aborigines and the Arn

Aboriginal Advancement.An appropriation of $21,560,000 to the Aboriginal Advancement Trust Account has been provided which, together with the unexpended balance in the Trust Account at 1 July 1972, will allow expenditures aggregating $22,544,000 in 1972-73 This amount incorporates $5,000,000 for the acquisition of properties off reserves and, of the balance, it is proposed that $14,500,000 will be paid to the States. Comparable expenditures in 1971-72 amounted to $10,816,000, of which $9,200,000 was paid to the States.

Other expenditures amounting to $3,150,000, mainly lor Aboriginal Secondary and Study grants, were financed from the Aboriginal Advancement Trust Account in 1971-72. In 1972-73 these expenditures will be financed from the votes of the Departments directly responsible for the administration of the programmes.

Other.The estimated increase of $3,499,000 includes an amount of $2,280,000 for Commonwealth support for the arts. This allows for an additional $1,491,000 for the programmes administered by the Australian Council for the Arts. Of the remainder, an estimated $950,000 is for expenditure by the Australian Film Development Corporation under its Act.

Health

The estimated increase of $2,160,000 reflects new and increased grants for medical research. Of the increase, $806,000 is for payment to the Medical Research Endowment Fund and results from the recently announced increased support for medical research in the 1973-75 triennium, including the medical research programme of the National Health and Medical Research Council. Increases totalling $684,000 are attributable to new grants to the National Heart Foundation and the Australian Cancer Society as well as additional grants to the Royal Flying Doctor Service and the National Fitness Council. A provision of $400,000 has been made for the anti-smoking education campaign.

Immigration

Assisted Passage Schemes.The 1972-73 assisted migrant programme is 90,000 settlers compared with 84,000 in 1971-72. This accounts for the increase of $754,000 in estimated expenditure on embarkation and passage costs.

Migrant Education.The estimated increase of $2,949,000 includes $1,625,000 Ibr the further development of the child migrant education programme. $826,000 for the adult education programme and $437,000 for intensive English language courses.

Labour and National Service

Stevedoring Industry.An amount equal to the proceeds of the stevedoring industry charge levied on the industry is paid to the Australian Stevedoring Industry Authority. Payments are estimated to rise by $3,895,000 in 1972-73 as a result of increased charges operative from February 1972.

Employment Training Schemes.The estimated increase of $2,177,000 includes $1,582,000 for the expansion of the Country Apprenticeship Scheme and for the introduction of a scheme to stimulate apprenticeship employment in metropolitan areas as announced in the Budget Speech. $160,000 is required for the introduction of the two new employment training schemes announced in the Budget Speech, and the remaining $435,000 reflects the further development of existing schemes.

National Development

Australian Atomic Energy Commission.The running expenses of the Australian Atomic Energy Commission are estimated to increase by a net $1,561,000 in 1972-73. An additional $777,000 is required for wages and salaries mainly to provide for the full-year effect of arbitration awards and determinations made during 1971-72. Expenditure on reactor supplies and special nuclear materials is expected to increase by $316,000, and expenditure on outside services, general expenses and stores is estimated to increase by a total of $460,000.

Other.The estimated reduction of $952,000 reflects payment during 1971-72 of a contribution of $1,050,000 to the International Tin Council's buffer stock.

Postmaster-General's

Broadcasting and Television Services.The estimated increase of $5,306,000 in expenditure under this item in 1972-73 includes $3,900,000 for increased running expenses of the Australian Broadcasting Commission and $1,201,000 for additional expenditure on technical services provided by the PostmasterGeneral's Department

Primary Industry

War Service Land Settlement,Payments to the agent States under the States Grants {War Service Land Settlement) Act 1952-53 for the acquisition and development of properties and for the provision of credit facilities to soldier settlers are financed from loan moneys. The estimated increase in expenditures from loan moneys of $2,829,000 in 1972-73 is attributable mainly to the provision of $2,500,000 for special financial assistance to certain South Australian soldier settlers to refinance stock mortgages and provide working capital advances and to an expected increase of $643,000 in the credit requirements of other soldier settlers in the agent States. These increases are partly offset by an estimated reduction of $314,000 in the requirement for acquisition and development of properties. Administrative expenses under the War Service Land Settlement Scheme, which are met from annual appropriations, are estimated to increase from $536,000 to $700,000 in 1972-73.

Prime Minister and Cabinet

An amount of $5,000,000 has been included to cover the scheme of Child Care Assistance announced in the Budget Speech. This item will be transferred to the vote of the administering department during the year.

Social Services

Homes for Aged Persons.As announced in the Budget Speech the Commonwealth, under a special arrangement limited to three years, will grant certain organisations that have received subsidy under the Aged Persons Homes Act 1954-69, special assistance to build and furnish additional hostel accommodation. The estimated cost of these measures in 1972-73 is $2,000,000 and this is the main reason for the increase of $3,000,000 in estimated expenditure on homes for aged persons in 1972-73.

Other.Expenditure under this heading is expected to increase by $1,942,000 and is attributable mainly to estimated increases of $801,000 in grants to eligible organisations under the Sheltered Employment (Assistance) Act 1967-1970 and $1,119,000 under the Handicapped Children (Assistance) Act 1970.

Treasury

Superannuation.The estimated increase of $7,872,000 in the Government contributions to the Superannuation Fund for the Commonwealth's share of pensions paid to former employees wilt be partly offset by an increase of $2,990,000 in the Post Office's contributions for its former employees. Both contributions reflect expected growth in the number of pensioners retiring with a higher entitlement to pension because of salary increases. Provision has also been made for the full year effect of increased pension entitlements granted from 1 October 1971.

 

Advances for Capital Purposes

Expenditures under this item are estimated to increase by $29,319,000 to $522,066,000 in 1972-73. This increase is the net result of a number of large variations in individual- items. - fust Office, lt is estimated that an amount of $288,000,000 or $18,000,000 more than last year will be provided to the Post Office in 1972-73 to help finance its capital works programme. The Post Office will also be contributing to tire programme from its own internal resources, mainly from depreciation funds.

Australian National Airlines Commission.The estimated increase includes an extra $3,091,000 for advances to the Commission of the proceeds of loans raised on the Commission's behalf by the Commonwealth for aircraft purchases. In addition, proposed new accounting arrangements for superannuation require the provision of a loan of $25,000,000 to the Commission in 1972-73. (The Commission will make an offsetting payment to the Commonwealth of $21,000,000- -see 'Other Revenue', Statement No. 5.)

Qantas Airways Limited.An amount of $25,000,000 has been provided for additional share capital for Qantas. An estimated $62,600,000 less than in 1971-72 is to be paid to the company as advances of the proceeds of loam raised on the company's behalf by the Commonwealth for the purchase of aircraft.

Snowy Mountains Hydro-electric Authority.The estimated decrease of $4,141,000 in expenditure in 1972-73 reflects progress towards completion of the Snowy Mountains Scheme.

Australian Industry Development Corporation.$12,500,000 has been paid to the Corporation in 1972-73 as a further instalment of capital. This brings to $50,000,000 the total amount of capital provided to the Corporation.

Export Payments Insurance Corporation.An amount of $4,000,000 is to be provided in 1972-73 as additional capital for the Export Payments Insurance Corporation. No similar payment was made last financial year.

Commonwealth Development Bank.Provision was made in 1971-72 for an advance of $10,000,000 to help finance an extension of the Bank's operations to include loans to farmers for the acquisition of additional land to build up the size and operational efficiency of their farms.

Rural Lending.As announced in the Budget Speech, $20,000,000 is being provided for this purpose.

War Service Homes.Loans for War Service Homes are expected to be $5,000,000 greater due to a higher rate of applications for loans and the full-year cost of the increase in the maximum loan to $9,000 announced in i he 1971-72 budget.

Australian Capital Territory Advances - Housing.The estimated increase of $5,470,000 in the provision for Australian Capital Territory Housing Advances includes an additional $2,853,000 for loans to building societies in the Territory.

Northern Territory Advances- Housing.The estimated decrease of $1,201,000 in this item results from a current downturn in demand for Commission dwellings in Darwin.

Northern Territory Advances- Port Authority.Advances to the Northern Territory Port Authority are estimated to decrease by $1,103,000 in 1972-73, due largely to the exclusion of any provision for the Darwin Port Development project, pending reconsideration of the nature and extent of facilities required.

Commonwealth Serum Laboratories Commission.The provision of $2,093,000, an increase of $1,293,000, has been made to allow the Commission to continue its capital expansion programme.

Item No. 12 - Other Capital Works and Services

(a)   Figures for 1970-71 and 1971-72 have been adjusted for accounting changes to place them on a basis comparable with the 1972-73 estimates.

Expenditure on other capital works and services is estimated to decrease by $706,000 to $263,567,000 in 1972-73. Details of the major variations are set out below.

Purchase of Sites, Buildings and Improvements on Leases

Under the Control of the Department of the Interior.

Civil Aviation.The principal reasons for the estimated increase of $2,131,000 in expenditure on behalf of the Department of Civil Aviation are further purchases of land for the future development of Perth Airport and the purchase of staff residences in remote areas from the State Housing Commission of Western Australia.

Interior.Expenditure by the Department of Interior in 1972-73 is expected to be $18,711,000 less than in 1971-72, largely because of non-recurring expenditure of $16,700,000 in 1971-72 for the transfer of five acres of Navy land at Woolloomooloo to the Department of the Interior for development as a Commonwealth office site. Another contributing factor is reduced expenditure on freehold land acquisitions in the A.C.T.

Buildings and Works

Under the Control of the Department of Works

Civil Aviation.The estimated $17,132,000 reduction in civil aviation works is due to a further tapering off of major construction projects at Melbourne and Avalon Airports (Vic.) and Sydney (Kingsford-Smith) Airport (N.S.W.).

Education and Science.Expenditure on laboratories for C.S.I.R.O. is estimated to be $353,000 more than in 1971-72. The estimated increase of $1,379,000 on other works reflects a larger construction programme for schools in the Northern Territory.

Health.The estimated decrease of $5,183,000 is attributable mainly to reduced requirements for worksinprogress, particularly the Nhulunbuy hospital complex (N.T.) and the Woden Valley Hospital (A.C.T.).

Interior.Urban development and Aboriginal advancement projects in the Northern Territory are the main factors leading to the increase of $12,909,000 in expenditure. Expenditure on office construction is expected to be $1,016,000 more than in 1971-72.

Repatriation.The estimated increase of $1,875,000 is due mainly to the construction of pathology and operating facilities at Heidelberg Repatriation Hospital (Vic).

Social Services.With the new rehabilitation centre at Glen Waverley (Vic.) nearing completion, works expenditure for the department is expected to decline by $912,000 this year.

Broadcasting and Television Services.With major projects nearing completion in Adelaide and Cairns (Mt Bellenden Ker), works expenditure is expected to be $1,546,000 less than in 1971-72.

National Capital Development Commission

Expenditure is expected to be $8,900,000 greater than in 1971-72. Estimated requirements for 'basic* works exceed last year's expenditure by $7,500,000. The principal proposed increases are $1,900,000 for roads and traffic works particularly arterial roads, $1,800,000 for retail, commercial and industrial facilities, $1,600,000 for sewerage works, and $1,200,000 for 'city' works including the Phillip (A.C.T.) transport depot. Expenditure on Commonwealth offices is expected to rise by $900,000.

Plant and Equipment, etc.

Health.The estimated increase of $1,604,000 is principally for the purchase of peripheral computer equipment for the department's central computer facility, and additional replacement equipment for hospital and other health services in the Northern Territory.

Broadcasting and Television Services.The increase of $3,133,000 relates to the acquisition of new studio equipment for the Australian Broadcasting Commission and the provision of television transmission facilities in remote country areas.

Other.The increase of $7,505,000 under this heading includes increases of $1,579,000 for A.D.I', equipment for the Department of Customs and Excise, $2,200,000 for vessels, plant and equipment for the Department of Shipping and Transport, and $2,227,000 for plant and equipment for the Statistician's Branch of the Department of the Treasury.

Other Payments to or for Statutory Bodies and Other Organisations

Expenditures under this heading are estimated to be $3,440,000 less in 1972-73 than in 1971-72. Details of the major variations are set out below.

Commonwealth Railways.The estimated reduction of $1,827,000 under this heading comprises a reduction of $5,215,000, due mainly to the expected completion of the Port Augusta to Whyalla Railway and reduced expenditure for rolling stock and building and construction in 1972-73, partly offset by an increase of $3,388,000 to commence construction of the Tarcoola to Alice Springs railway.

Australian National University.The estimated reduction of $1,505,000 in payments to the Australian National University reflects the recommendations of the Australian Universities Commission for the 1973-75 triennium.

Other.The estimated increase of $1,821,000 includes an increase of $1,066,000 in payments to the River Murray Commission reflecting estimated contributions in 1972-73 for the construction of the Dartmouth Dam.







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