Industry, tourism and resources portfolio

Section 2: Outcomes and outputs information

OUTCOMES AND OUTPUTS

The Department of Industry, Tourism and Resources works to achieving two outcomes specified by Government. The following section provides a departmental overview, and a description of outcomes. The map on page 41 shows the relationship between the two outcomes and the contributing outputs.

Table 2.1.1 (on pages 48 - 49) and Table 2.1.2 (on page 58) provide financial information for outcomes 1 and 2 respectively. Table 2.2.1 (on pages 51 - 53) and Table 2.2.2 (on pages 59 - 60) provide performance information for outcomes 1 and 2 respectively.

Output cost attribution

The price for each output is made up of Divisional contributions to each output plus Departmental overheads (including Corporate Division) and, where applicable, independent source revenue. Overheads that cannot readily be allocated to particular outputs are attributed on the basis of Divisional Average Staffing Level (ASL) proportions.

2003-04 prices are based on estimated actuals plus independent source revenue while 2004-05 prices reflect notional allocation plus estimated independent source revenue.

Allocation of resources across outcomes

Funds appropriated to the Department in 2004-05 total $1,424.710 million (see Table 1.1 on page 30), and include Departmental expense appropriations ($268.956 million), Administered expense appropriations ($1,059.919 million), Departmental Capital appropriations ($6.555 million) and Administered Capital appropriations ($89.280 million). The following charts compare the allocation of these resources across the Department’s two outcomes.

Chart 1: Administered appropriations by outcome 2004-05 (including Administered Capital appropriations)

Outcome 2

77%

Chart 2: Departmental appropriations by outcome 2004-05 (including Departmental Capital appropriations)

Outcome 2

79%
Map of outcomes and outputs 2004-05

41

Changes to outcomes and outputs

The outcomes and outputs framework for the Department of Industry, Tourism and Resources is unchanged from 2003-04.

Trends in resourcing across outcomes

Chart 3 (below) shows the trend in appropriations for the Department’s outcomes since 2001-02.

Chart 3: Trends in appropriations for all outcomes (including capital)

Outcome 1 Outcome 2

Note 1: Figures for 2001-02 and 2002-03 reflect actual appropriations. Note 2: Figures for 2003-04 reflect estimated actual appropriations. Note 3: Figures for 2004-05 reflect budgeted appropriations.
OUTCOME 1 — DESCRIPTION

A stronger, sustainable and internationally competitiveAustralian industry, comprising the manufacturing, resourcesand service sectors

The broad framework for this outcome is provided by the Government’s continued focus on building a competitive industry through the three drivers of economic growth: International competitiveness, Investment and Innovation (Innovation being captured within outcome 2).

Achievement of this outcome will be through the following:

• 
  the formulation of Government positions on key strategic industry policy issues, undertaking consultation with industry groups; participation in and management of consultative processes, information gathering on industry and impediments to its competitiveness and analysis and dissemination of information to industry;
  
• 
  policy development and advice to the Minister and the Government, conduct of research and analysis, development of relevant international relationships and development of legislation;
  
• 
  delivery and evaluation of industry programs and provision of business services, and monitoring of compliance with regulations;
  
• 
  development and delivery of online business services in an Australian Government and whole-of-governments (Federal-State-Local) framework; and
  
• 
  delivery of specialised business services to government agencies, industry and public in the fields of attracting foreign direct investment, measurement services, and radio and space weather forecasting.
  

MEASURES AFFECTING OUTCOME 11
Australia-China Natural Gas Technology Partnership Fund Expense ($m) 2004-05 2005-06			2006-07	2007-08
Department of Industry, Tourism and Resources	-	-	-	-

The Government will contribute funding of $7.5 million over the nine years from 2006-07 to 2014-15 to the Australia-China Natural Gas Technology Partnership Fund. The Western Australian Government will contribute $7.5 million and $10 million will be provided by the liquefied natural gas industry.

This measure implements the Government’s commitment to contribute to this fund as part of Australia’s successful bid to supply liquefied natural gas to the Guangdong project in China. The fund will support a range of activities including joint research studies, training and development and personnel exchanges between Australia and China.

This measure is being fully absorbed within the existing resourcing of the Industry, Tourism and Resources portfolio.

Australian Magnesium Corporation

Expense ($m) 2004-05 2005-06 2006-07 2007-08

Department of Industry, Tourism and Resources ----

In August 2001, the Australian Government agreed to support the development of the Australian Magnesium Corporation’s (AMC’s) Stanwell Magnesium Project by guaranteeing loans to the project of up to $100 million.

Work on the Stanwell Magnesium Project ceased in June 2003 due to significant project cost overruns. As a consequence, the Government has decided to finalise its involvement with AMC and recognise in 2003-04 its commitment to meet a $90 million loan guarantee payment to the ANZ Banking Group.

1 This relates to measures disclosed in the 2004-05 Budget context (that is, measures agreed since the Mid-Year Economic and Fiscal Outlook (MYEFO)).

While this recognition will have an impact of $90 million on the fiscal balance in 2003-04, actual payment to the ANZ Bank (with a corresponding impact on the underlying cash balance) is not required until 2005-06 at the earliest, consistent with the Government’s contractual obligations.

Under the agreed exit arrangements AMC will return to Government some funds and the proceeds from the sale of non-core assets, with details to be finalised in 2004-05 following further discussion with AMC and the Queensland Government.

Axiss Australia — extend funding

Expense ($m) 2004-05 2005-06 2006-07 2007-08

Department of Industry, Tourism and Resources 3.8 3.8 -­

The Government will provide $7.6 million over two years to continue the operations of Axiss Australia, which promotes Australia as a financial services centre in the Asia-Pacific region.

On 1 July 2003, Axiss Australia was merged with Invest Australia, the Government’s inward investment promotion agency.

Investing in Australia’s Security — critical infrastructure protection

Expense ($m) 2004-05 2005-06 2006-07 2007-08

Department of Industry, Tourism and Resources 0.7 1.2 1.0 0.3

The Government will provide funding of $50.2 million (including $1.7 million capital funding) over four years as part of continuing efforts to ensure there are adequate levels of protective security in respect of critical infrastructure, minimal single potential points of failure and rapid, tested recovery arrangements. This funding provides resources for nine Government agencies for a range of activities to progress three key areas of critical infrastructure protection. They are:

• 
  national coordination and leadership — including activities such as the provision of expanded Secretariat support to the Trusted Information Sharing Network for Critical Infrastructure;
  
• 
  infrastructure vulnerability identification, analysis and remediation — including activities such as the testing of Australian Government and private sector national information infrastructure; and
  
• 
  infrastructure interdependence modelling and analysis — including activities to model and analyse interdependencies between different critical systems and networks.
  

The Government will assume a leadership role in these three core areas of activity, working in partnership with the States and industry to progress critical infrastructure protection.

Melbourne 2006 Commonwealth Games — contribution

Expense ($m)
2004-05		2005-06	2006-07	2007-08
All Agencies	8.0	90.3	1.3	-
Related capital ($m)
All Agencies	0.1	0.1	-	-
Related revenue(a) ($m)
All Agencies	-	-1.4	-	-