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Australia's budget sends mixed message on environment by ferujkll sdff





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Australia's budget sends mixed message on environment by
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Australia's budget sends mixed message on environment


 
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Last week s release of the 2012-13 Budget by the Gillardgovernment reveals an interesting array of environmental andsustainability initiatives in store for Australia over comingyears. Unfortunately, the key influences on budget allocation thisyear have been less environmental ethics and more politicalmachinations namely, the need to placate the powerful GreensParty and stay in power beyond the next federal election in 2013. The government is clearly taking active steps towards transformingAustralia s national economy from old school (pollution heavy) tonew school (greentech) with increased investment in renewableenergy and energy efficiency – in addition to increased taxesfor big polluters. Yet, powerful stakeholders in primary industryand the community continue to exert negative influence on policyand budget allocation, proving that we are still in the earlydays of the new economy. Australian Conservation Foundation chief executive Don Henry sayshousehold tax cuts designed to offset the upcoming carbon taxwon t protect the natural environment and that mining subsidiesare the real culprit.



Continuing the senseless diesel fuelhandout to mining companies is a much bigger slug to Australianhouseholds than any carbon price, with the handouts to miningcompanies projected to increase to $182 per taxpayer, per year,costing $9.4 billion over the forward estimates, he said. Australia s baby boomer generation has joined the mining industryas vocal opponents of the Carbon Tax by actively attending ralliesand protests throughout the country. With life expectancy on theincrease, the government cannot ignore the concerns of older voterswho prioritise pensions and healthcare over environmentalinitiatives. Fortunately, the Greens party, which controls thebalance of power in parliament, is vigilant in reminding thegovernment of the need for a more sustainable economy.



Resources and energy initiatives The government has continued to increase funding for specialisedenvironmental initiatives within its resources industry and energydepartment, which is responsible for supporting rural communities.These include: Carbon Capture and Storage Flagships; EthanolProduction Grants; National Low Emissions Coal Initiative; theGlobal Carbon Capture and Storage Institute; the National CO2Infrastructure Project; and the Coal Sector Jobs Package.Approximately 45 per cent of their grant expenditure over the next12 months will be made to regional Australia a figure which isexpected to increase within the next few years to more than 65 percent. Regional refers to large population centres outside the maincities. From July 2012, the country will consolidate four renewable energyprograms within its new Australian Renewable Energy Agency (ARENA)department Solar Flagships, Australian Centre for RenewableEnergy, Connecting Renewables Initiative and the Australian SolarInstitute. Established in July 2011 to support renewable energytechnology innovation, the ARENA aims to improve the competitivenature of these technologies in Australia and to increase thecountry s supply of renewable energy. Unfortunately, the government has reinforced its support of nonrenewable energy sources such as coal seam gas, while ignoringR&D projects such as Energetech s wave energy device trials inPort Kembla.



A failure to support the development of wave powergeneration along the east coast, where a concentration ofAustralia s energy users are based, seems rather short-sighted.This focus on unsustainable short-term energy solutions is coupledwith a renewed focus on carbon intensive road infrastructure resulting in a budget that invests $14 of new spending on roads foreach $1 spent on rail (reinforcing carbon tax costs incurred byindividuals rather than corporations). Rural and Regional Focus The other key portfolio is Sustainability, Environment, Water,Population and Communities, which supports environment andsustainability programs in rural and regional communities. Thisenormous department also encompasses the Bureau of Meteorology, theDirector of National Parks, the Great Barrier Reef Marine ParkAuthority, the Murray-Darling Basin Authority, the National WaterCommission and the Sydney Harbour Federation Trust. More than 90 per cent of its 2012-2013 budget will be allocated tothree programs which contribute to the development of regionalAustralia: Sustainable Management of Natural Resources and theEnvironment; Carbon Pollution Reduction (Land Sector Initiatives);and Water Reform. Not surprisingly, the forward estimate from 2012 to 2016 indicatesWater Reform will receive the lion share of funding (at $3.84billion, an estimated 63 per cent).



The long-term Water for theFuture initiative is designed to balance the water needs ofcommunities, farmers and the environment by funding predominantlyregional projects, such as modernised irrigation and increasedrecycling. Urban projects will include desalinisation and stormwater capture.It s disappointing to see that the government s enthusiasticsupport for the National Rainwater and Greywater Initiative was notmatched by the public. Aimed at encouraging the population toinstall household rainwater tanks and greywater systems thatcapture wastewater from drains and washing machines, it provided upto $500 per household but was scrapped in 2011 due to a lack ofpublic support. Considering the fact that Australia suffersregular, intense droughts in both urban and rural areas, suchnational apathy is disappointing.



Hopefully, the $14.5 million insavings (over three years) will be directed toward other waterreforms. To date, these have been focused more on the waterresource than the crucial input of local stakeholders. The department will launch a range of new projects in 2012,including: The existing On-Farm Irrigation Efficiency Program will be expandedover six years, and provide $150 million for the modernisation ofon-farm irrigation infrastructure; Long-term sustainability measures to protect one of the country ssignificant World Heritage sites, the Great Barrier Reef; Measures to enhance the Bureau of Meteorology s ability to respondto future extreme weather patterns and natural disaster events.Flood forecaster numbers will also be increased to support responsecapacity during the 2012-13 summer season; The Australian Antarctic Program will continue to develop itsresearch and expedition activities over the next two years withshipping and aviation support valued at $29.8 million, plus ongoingfunding for the four existing Australian Antarctic stations ($11.2million); The Tiwi Land Council in the Northern Territory will receive $1million for its Rehabilitation Management Plan for lands adverselyaffected by a local pulpwood plantation project. Ongoing projects which will receive funding boosts include: The Four Clean Energy Future (Land Sector Package) initiatives; The Independent Expert Scientific Committee, which will provideadvice to government about relevant coal seam gas and large coalmining projects as they affect water resources ($150 million overfive years from 2011); Continued investment in the Caring for our Country initiative whichfocuses on improving biodiversity and adopting sustainable farmingpractices in remote and very remote areas ($2.2 billion from 2013to 2018); Further investment in the Working on Country Indigenous RangersProgram (Caring for our Country) which provides training andemployment for Indigenous people in regional Australia ($19.1million for four years); Ongoing development of a National Wildlife Corridor Plan to guideconservation management and community engagement ($10 million overthree years from 2011).



Despite the government s aim to spread the benefits of thecountry s mining boom to all Australians over coming generations,the business community has not responded well to this year sbudget. This is due to a lack of cuts to existing corporate taxrates and an absence of broad reform all of which has reinforcedthe government s focus on short-term consumption rather thanlong-term investment. Ironically, this is a criticism shared by the stewards ofsustainability and environmental protection. All figures are in Australian dollars.



Katie Howe is a Director of Yellowbird Communications in Canberra.

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