Industry, tourism and resources portfolio

PART B: PORTFOLIO OVERVIEW
PORTFOLIO OVERVIEW

The Industry, Tourism and Resources (ITR) portfolio comprises:

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  the Department of Industry, Tourism and Resources;
  
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  IP Australia and Geoscience Australia (prescribed agencies under the Financial Management and Accountability Act 1997 (FMA Act)); and
  
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  the Australian Tourist Commission and the National Standards Commission (statutory authorities which operate under specific enabling legislation and the Commonwealth Authorities and Companies Act 1997 (CAC Act)).
  

Activities undertaken by the Department and wider portfolio are fundamentally important in terms of increasing national prosperity.

The Department of Industry, Tourism and Resources develops and implements a range of industry policies and business assistance programs that build on the Government’s three key drivers of economic growth – innovation, investment and international competitiveness. These policies and programs are designed to increase the international competitiveness of Australian manufacturing, resources and service industries, develop Australia’s innovation and technology capabilities and infrastructure, and facilitate an increased level of foreign investment in Australia. The Department works in close partnership with industry, and with a range of other stakeholders, to achieve these goals.

IP Australia and Geoscience Australia fall within the Department’s organisational structure as prescribed agencies under the FMA Act, but both operate independently of the Department on financial matters and with some degree of autonomy on other matters.

IP Australia examines applications and grants rights in patents, trade marks and industrial designs. It also undertakes programs to educate and promote an awareness of intellectual property (IP) rights; provides IP policy input to government; develops legislation to support the IP system; and contributes to bilateral and multilateral negotiations to improve IP protection internationally.

Geoscience Australia provides independent scientific and technical advice on mineral resources, mining, exploration trends, land access, contribution to safer communities and critical infrastructure, as well as advice on Australia’s petroleum prospects, reserves and potential. Geoscience Australia produces first-class geoscientific information and knowledge. This can enable government and the community to make informed decisions about the exploitation of resources, the management of the environment, the safety of critical infrastructure and the resultant wellbeing of all Australians.

The Australian Tourist Commission (ATC) is an Australian Government statutory authority established under the Australian Tourist Commission Act 1987. The ATC promotes Australia as an international tourism destination. Its objectives are to increase the number of visitors to Australia from overseas, and to maximise the benefits to Australia from overseas visitors. It is proposed to amalgamate the ATC with See Australia Limited, the Bureau of Tourism Research and the Tourism Forecasting Council to form a new statutory authority, Tourism Australia, in 2004-05 (see description of Tourism Australia on page 13).

The National Standards Commission (NSC) is an Australian Government statutory authority established under the National Measurement Act 1960. The Commission is responsible for advising government on the scientific, technical and legislative requirements of Australia’s national measurement system, and has specific responsibilities for coordinating the national measurement system and ensuring that trade measurement instruments comply with international and national legal metrology standards. The Commission will be dissolved on 1 July 2004 and it is therefore not represented in Part C: Agency Budget Statements of these PB Statements (see description of the National Measurement Institute below).

Changes to the portfolio since the 2003-04 Portfolio Budget Statements

The portfolio structure outlined above is the same as that described in the 2003-04 Portfolio Budget Statements. In 2004-05, however, two significant changes to the portfolio will occur, and a third change is proposed. These are detailed below.

NATIONAL MEASUREMENT INSTITUTE

The Australian Government announced on 13 May 2003 that it will establish the National Measurement Institute. The announcement was part of the Government’s 2003-04 Budget initiatives. On 25 March 2004 the legislation establishing the Institute, the National Measurement Amendment Act 2004, received Royal Assent.

The National Measurement Institute will bring together into a single agency Australia’s national functions in physical, chemical and biological measurement, as well as legal metrology. The new Institute will provide world-class measurement standards and services for Australian industry and, in doing so, will facilitate trade and assist industry innovation.

It will be formed by amalgamating three government agencies that provide measurement services for government and industry. They are the National Measurement Laboratory, the National Standards Commission and the Australian Government Analytical Laboratories.

The National Measurement Institute will operate within the Department of Industry, Tourism and Resources. The new Institute will become operational from 1 July 2004.

NATIONAL OFFSHORE PETROLEUM SAFETY AUTHORITY

The National Offshore Petroleum Safety Authority (NOPSA) will commence operations from Perth, Western Australia, on 1 January 2005. NOPSA is a statutory body and will operate pursuant to the Petroleum (Submerged Lands) Act 1967. Its primary role will be to promote the occupational health and safety of persons engaged in offshore petroleum operations in Commonwealth, State and Territory coastal waters. The Authority has monitoring, enforcement and investigative responsibilities in relation to offshore petroleum operations and will make reports including recommendations to the Australian Government Minister and State and Territory Ministers. NOPSA will not receive an appropriation from the Government and will operate on a full cost recovery basis from levies imposed on operators.

TOURISM AUSTRALIA

On 20 November 2003, the Government announced a package to support initiatives in A Medium to Long Term Strategy for Tourism – Tourism White Paper. Total budget funding under this announcement is $235 million over four and a half years.

A key feature of the package is the formation of a new agency, Tourism Australia, comprising the Australian Tourist Commission, See Australia Limited, the Bureau of Tourism Research and the Tourism Forecasting Council. Tourism Australia is to be established as a statutory authority under the Commonwealth Authorities and Companies Act 1997 and is expected to commence operations in 2004-05. The legislation to establish the new body, the Tourism Australia Bill 2004, is before Parliament.

The establishment of Tourism Australia will require no additional funding under the Tourism Australia Bill 2004. Funding for Tourism Australia will comprise of existing funding previously allocated for the four bodies merging to form Tourism Australia, and the bulk of the $235 million in additional funding allocated as part of the Tourism White Paper package.

The map on page 23 shows the structure of the portfolio in 2004-05, while the map on page 24 shows the outcome framework for portfolio agencies in 2004-05.

MAJOR OBJECTIVES AND PLANNED ACHIEVEMENTS

Department of Industry, Tourism and Resources

The Department’s Corporate Plan 2003-05 outlines in broad terms the key objectives for the Department, as well as the core values which embody the way Departmental staff work with each other, and with stakeholders and customers (http://www.industry.gov.au/corporateplan). The Plan also sets out a number of shorter term priorities on which the Department will focus over the coming twelve months. The Portfolio Fact Sheets (http://www.industry.gov.au/factsheets) provide more comprehensive information on the Department’s key programs and objectives.

Innovation

Encouraging industry innovation is a key priority. The Department administers a range of programs to stimulate business expenditure on research and development, facilitate access to global technologies and the adoption of innovative business practices, and to raise awareness of the economic benefits of innovation. Through Biotechnology Australia, the Department also works to ensure the implementation of the National Biotechnology Strategy, which provides a framework for capturing the benefits of biotechnology development for Australia.

Key objectives for 2004-05 include:

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  stimulate increased business expenditure on R&D and innovation through R&D grant programs and the R&D Taxation Concession;
  
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  facilitate implementation of the Pharmaceuticals Industry Action Agenda;
  
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  achieve increased commercialisation outcomes, including through the Commercial Ready program, Innovation Investment Fund, Pre-Seed Fund and Commercialising Emerging Technologies (COMET) programs;
  
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  facilitate an increased rate of commercialisation of promising new technologies developed in Australia by delivering grants through proof of concept funding; and
  
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  work with States, Territories and industry to develop an enhanced National Biotechnology Strategy to ensure Australia maximises the benefits of biotechnology, based on the findings of the final evaluation of the National Biotechnology Strategy.
  

Investment Attraction

Attracting productive foreign investment is a key priority. Invest Australia, the Government’s national investment promotion agency, is driving a highly strategic, targeted and nationally coordinated approach to investment attraction, as articulated in the Government’s national investment framework, Global Returns. The Department also administers a number of initiatives which seek to increase the commercialisation of technology by Australian firms through the availability of venture capital.

Key objectives for 2004-05 include:

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  increase awareness of Australia as an attractive investment destination throughout key markets, and lead the implementation of an Australian national investment brand;
  
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  work with project proponents to facilitate their investments in Australia by assisting with site visits, introductions to other government agencies, explanations of government support programs, and coordination of approval processes;
  
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  continue to facilitate a nationally coordinated approach to Australia’s participation at major investment-related conferences and events; and
  
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  through the integration of Axiss Australia into Invest Australia, position financial services as a key sector for extensive investment promotion and attraction activities.
  

Building Competitive Australian Industry

The Department works closely with industry to identify new opportunities for growth and remove impediments, to strengthen industry competitiveness attributes through relevant policies and programs, and to improve the business regulatory environment.

Key objectives for 2004-05 include:

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  through the Action Agenda process, continue to work in partnership with specific industry and service sectors to identify and remove impediments to growth, realise the opportunities of international markets and new technologies, and encourage sustainable development;
  
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  implement the post-2005 assistance arrangements for the automotive industry, including the Motor Vehicle Producers’ Research and Development Scheme, and promote increased access to international markets for the Australian automotive industry;
  
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  provide advice and undertake actions necessary to facilitate implementation of post-2005 assistance arrangements for the Textile, Clothing and Footwear sector;
  
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  facilitate the participation of the Australian aerospace industry and related companies in the $US200 billion Joint Strike Fighter Project; and
  
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  facilitate the development of a more competitive building and construction industry through better regulation and encouragement of innovation.
  

Resources and Energy

The development of Australia’s resources and energy sectors are priorities. The Government’s goal is maximise the benefits, in terms of wealth creation and employment, from growth in Australia’s resource sector, consistent with the principles of sustainable development. The Department will play a key role in energy market reform, ensuring favourable conditions to enable the industry to attract the level of long-term investment needed to meet Australia’s future energy needs.

Key objectives for 2004-05 include:

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  provide a low risk investment framework through timely and effective exercise of Commonwealth responsibilities under the Petroleum (Submerged Lands) Act 1967 (PSLA), Offshore Minerals Act 1994 and subordinate legislation on matters including the allocation and operation of exploration and development titles. Reduce compliance and administrative cost through the rewrite of the PSLA;
  
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  encourage sustainable resource development, through the implementation of relevant Action Agendas and by addressing finance/taxation, environment, land access, pre-competitive geoscience and human capital issues of importance to industry;
  
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  facilitate the development of clean coal and associated low emission technology and develop national regulatory principles for geo-sequestration to provide opportunities for reductions in greenhouse gas emissions;
  
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  deliver a uniform high standard of safety regulation on offshore petroleum facilities through the establishment of the National Offshore Petroleum Safety Authority which will commence on 1 January 2005;
  
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  implement the Council of Australian Governments (CoAG) Ministerial Council on Energy (MCE) energy market reform program, including establishment of the Australian Energy Regulator and the Australian Energy Market Commission; respond to the Productivity Commission Review of the Gas Access Regime, and develop a national gas market policy framework through the MCE;
  
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  identify and pursue commercial opportunities in the energy and minerals sector through bilateral consultations with key trading partners; and
  
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  implement regional energy security and sustainable development initiatives, through the APEC Energy Working Group and coordinate the International Energy Agency in-depth review of the Australian energy sector, and respond to its recommendations.
  

Tourism and Small Business

The development of strong tourism and small business sectors are key priorities.

Key objectives for 2004-05 include:

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  implement the medium to long term White Paper strategy for the tourism industry through delivering on the key measures contained in that strategy to further develop the tourism sector and place it on a more sustainable footing over the next decade;
  
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  facilitate growth of the small business sector by delivering funding through the various elements of the Small Business Assistance Program, including for skills development projects and referral and advisory services; and
  
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  increase recognition by agencies of the regulatory burden on small business and promote regulatory reform, and provide policy advice to the Government on issues relating to small business.
  

Industry Program Management and Business Services

AusIndustry is the program delivery division of the Department. It operates a customer focused national network of offices to improve business and industry access to the Australian Government programs it delivers. It aims to simplify business interactions with government and provide cost effective service delivery. The Department also provides a range of business support services which contribute to a supportive infrastructure for a range of industries, including through the Ionospheric Prediction Service, National Measurement Institute and Business Entry Point (http://www.business.gov.au).

Key objectives for 2004-05 include:

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  through AusIndustry, successfully deliver a wide range of industry assistance programs, worth around $1.6 billion, to more than 10,000 customers;
  
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  consolidate the National Measurement Institute into an effective and efficient organisation delivering measurement services in physical, chemical, biological and legal metrology;
  
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  provide national radio propagation and space weather services to government and industry;
  
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  expand the range and effectiveness of web services on offer through the Business Entry Point.
  

IP Australia

IP Australia grants rights in patents, trade marks and designs and provides information programs designed to increase awareness of the benefits of effective protection and use of intellectual property (IP) (http://www.ipaustralia.gov.au).

Key objectives for 2004-05 include:

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  negotiating and finalising mutual recognition arrangements for patent searching with the United States Patents and Trade Marks Office;
  
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  developing an enhanced business strategy for providing IP services that meet international quality benchmarks, provide robust rights, are cost effective and best suit customer needs;
  
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  continuing to align IP Australia's internal processes with internationally recognised quality standards;
  
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  continuing the implementation of the new systems platform, particularly key elements for external customers such as improved searching capability and implementing business to government processing interoperability;
  
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  putting into operation the new Designs legislation which was passed by Parliament in December 2003 and comes into effect on 17 June 2004;
  
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  delivering a cost effective up front service product for trade mark applicants to improve quality, accessibility and efficiency for customers; and
  
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  delivering a range of business to business data exchange products that meet the different needs of large, medium and small businesses, and agent firms.
  

Geoscience Australia

The Geoscience Australia website (http://www.ga.gov.au) provides information on Geoscience Australia’s role, key objectives and the activities undertaken.

The key priorities for Geoscience Australia in 2004-05 include:

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  promote opportunities for mineral exploration through new pre-competitive geoscience information for the Gawler, Paterson and Tanami provinces;
  
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  improve access to pre-competitive geoscience information and compilations by accelerating development of Internet-based delivery systems;
  
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  promote extended applications of geoscience through completion of the collaborative Burdekin-Fitzroy project which is designed to demonstrate applications of geoscience information for natural resource management;
  
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  establish a spatial information, risk analysis, and modelling capability to support national initiatives in counter terrorism and critical infrastructure protection;
  
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  develop a national risk assessment framework for risk assessment models, methods and databases in support of the Disaster Mitigation Australia Package;
  
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  acquire and interpret seismic data to build new investment opportunities in south western and northern Australia in support of the 2005 offshore petroleum acreage release, and in the quest for a new oil province for Australia;
  
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  complete phase II of the preservation of deteriorating seismic records in the national archive of petroleum industry data;
  
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  provide geoscientific advice supporting the follow-up to Australia’s 2004 submission to the United Nations Commission on the Limits of the Continental Shelf (UNCLCS);
  
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  assist the development of geological sequestration of carbon dioxide, through the Greenhouse Gas Technologies Cooperative Research Centre (CO2CRC);
  
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  begin a 1:100,000 pilot mapping program to address areas of high bushfire risk; and
  
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  commence development of a Marine Spatial Information System for the Australian Marine Jurisdiction.
  

National Offshore Petroleum Safety Authority

The National Offshore Petroleum Safety Authority (NOPSA) provides information on its role and functions via the Department of Industry, Tourism and Resources website. For further information on NOPSA, go to http://www.industry.gov.au and type "NOPSA" in the Search field, then click on the “National Offshore Petroleum Safety Authority” result.

The key objectives for NOPSA over 2004-05 include:

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  recruiting staff to ensure the Authority is fully operational from 1 January 2005;
  
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  leasing and equipping office space for its headquarters in Perth and an interstate office in Melbourne;
  
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  assuming responsibility for the assessment and monitoring of offshore petroleum operators’ safety cases from 1 January 2005;
  
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  developing a comprehensive communication package for the industry and the offshore petroleum workforce on occupational health and safety issues; and
  
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  establishing systems for cost recovery and governance of the Authority, as well as for the monitoring of safety and other regulatory activities.
  

Australian Tourist Commission

The Australian Tourist Commission (ATC) website (http://www.atc.australia.com) provides information on the role of the ATC, its broad objectives and the activities it undertakes.

The key objectives for the ATC include:

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  improve international consumer desire to visit Australia by focusing resources on activity in markets and segments where the ATC can make the greatest impact. Activities include brand advertising, public relations activities, utilising tourism ambassadors and marketing campaigns in target markets;
  
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  improve the tourism industry’s ability to act on market/consumer opportunities;
  
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  maintain or increase Australia’s market share in priority countries where the ATC is actively marketing;
  
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  increase visitor expenditure (yield) in Australia for overseas visitors;
  
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  improve the performance of existing and new international distribution channels linked to identified consumer opportunities;
  
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  facilitate the best match between consumer segment needs and available product by investing in global customer segmentation research to help develop relevant marketing programs;
  
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  utilise ATC promotional activities (e.g. Visiting Journalist Program, advertising, australia.com, public relations) to encourage international visitors to spend an increased number of nights outside of major gateways (i.e. promote dispersal); and
  
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  enhance adoption of ecotourism and sustainable tourism policies, practices and agendas in overall tourism promotion.
  

A new body, Tourism Australia, is scheduled to commence operations in 2004-05 (see page 13). Tourism Australia’s key priorities will be to:

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  grow international tourism by vigorously marketing a revitalised Brand Australia to key global markets;
  
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  help attract major events to Australia;
  
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  assist the development of strategic marketing plans in high yield market niches and segments;
  
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  assist the growth of business tourism;
  
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  conduct expanded research and analysis; and analyse and disseminate trends; and
  
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  develop strategies to promote growth in domestic tourism, with a major focus on regional tourism.
  

ALLOCATION OF PORTFOLIO RESOURCES

Funds appropriated to agencies within the Industry, Tourism and Resources portfolio in 2004-05 total around $1.64 billion, comprising both Departmental and Administered appropriations.

DEPARTMENTAL APPROPRIATIONS

Departmental appropriations for agencies within the Industry, Tourism and Resources portfolio in 2004-05 total around $492 million. The following chart compares the allocation of these departmental resources across the portfolio agencies.

Chart 1: 2004-05 Departmental appropriations for portfolio agencies

Department of Industry, Tourism

IP Australia

and Resources

$1.069m

$268.956m

0.2%

54.7%
Australian Tourist Commission $121.031m 24.6%

Note: NOPSA has no departmental appropriations.

Graphs showing trends in departmental appropriations from 2001-02 to 2004-05, for the Department of Industry, Tourism and Resources, Geoscience Australia and the Australian Tourist Commission by outcome can be found in Part C: Agency Budget Statements at pages 42, 123 and 172 respectively.

ADMINISTERED APPROPRIATIONS

The Department of Industry, Tourism and Resources and Geoscience Australia are the only agencies within the portfolio that have administered appropriations.

Administered expense appropriations for the Department in 2004-05 total around $1.059 billion, and are used to fund a wide range of industry assistance and innovation programs. The Department will also receive an Administered Capital appropriation of around $89.280 million in 2005-04. A graph showing trends in Administered appropriations for the Department from 2001-02 to 2004-05 by outcome can be found in Part C: Agency Budget Statements at page 42, and more detailed information can be found in the Department’s Total Resources for Outcomes tables on pages 48 -49 and

58.

As in 2003-04, Administered appropriations for Geoscience Australia in 2004-05 total only $0.02 million, and relate to a grant in aid program that Geoscience Australia administers on behalf of the United Nations.

Part B: Portfolio Overview

Map 1: Structure of Industry, Tourism and Resources portfolio 2004-05

Minister for Small Business and Tourism	Minister for Industry, Tourism and Resources	Parliamentary Secretary to the Minister for Industry, Tourism and Resources
The Hon Joe Hockey, MP	The Hon Ian Macfarlane, MP	The Hon Warren Entsch, MP