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Budget Overview getting on with the job 2003-04 Victorian Growing Victoria Together
Budget Overview
getting on with the job
2003-04 Victorian
Growing Victoria Together
The SecretaryDepartment of Treasury and Finance1 Treasury PlaceMelbourne Victoria 3002Australia
Telephone: +61 3 9651 5111Facsimile: +61 3 9651 5298Website: www.budget.vic.gov.au
2003-04 Budget Paper set includes:Budget Paper No 1 - Treasurer's SpeechBudget Paper No 2 - Budget StatementBudget Paper No 3 - Budget EstimatesBudget Overview
Published by the Department of Treasury and Finance
© State of Victoria 2003
This book is copyright. No part may be reproduced by any processexcept in accordance with the provisions of the Copyright Act.ISSN 1 440-6969
Published May 2003 by authority
Contents
3 Treasurer’s Message
4 Building On The First Term
5 2003-04 Budget Highlights
8 Victoria’s Economy – Growth Amid Uncertainty
9 Budget at a Glance
10 Building Victoria’s Infrastructure
11 Growing and Linking All of Victoria
12 A Budget for All Victorians
14 Thriving, Innovative Businesses and Industries Across Victoria
16 Valuing and Investing in Lifelong Education
18 High Quality, Accessible Health and Community Services
21 Safe Streets, Homes and Workplaces
22 Protecting the Environment and Promoting Sustainable Development
23 Building Cohesive Communities and Reducing Inequalities
24 Promoting Rights and Respecting Diversity
2003-04 Victorian Budget Overview > 1
Treasurer’s Message
The 2003-04 Budget meets thechallenges of these difficult anduncertain times and confirms theBracks Government’s commitment tosound financial management andlong-term planning. It makes the fairand responsible decisions necessaryto secure Victoria’s future and deliverhigh living standards, high qualityjobs and strong economic growth.
The 2003-04 Budget is beingdelivered against the backdrop ofsome of the most challengingcircumstances in years, with thedownturn in international markets,continuing global uncertainty, thedrought, the recent bushfires and the impact of public transportprivatisation all adding pressure to the State’s finances.
Despite these pressures, theVictorian economy is proving resilientand robust in a difficult globalclimate, with growth of 3.75 per centforecast for 2003-04. Victoria’sunemployment rate is at a 13-yearlow, business investment is at arecord high and regional Victoria isenjoying a strong economic andemployment resurgence.
The Government continues to deliverresponsible financial managementand maintain a substantial operatingsurplus, while meeting our electioncommitments and investing in thekey drivers of growth: education,innovation and infrastructure.
The budget includes a program ofreform to deliver more modern,efficient and effective government,including significant savings fromgreater administrative efficiency anda refocusing of the State’semployment and training programs toensure young Victorians acquire theskills and qualifications they need totake up high quality, high-wage jobs.
The budget delivers further
reductions in the payroll tax rate,introduces a payroll tax exemption forpaid maternity leave and creates anew concession from motor vehicleduty for people with disabilities.
Education continues to be theGovernment’s top priority, withsubstantial new resources directedtowards driving excellence ineducation, recruiting additionalteachers and building and upgrading schools.
The Government continues to rebuildVictoria’s health system, with newinvestment in public hospitals,medical technology and regionalhealth services. The budget includesa boost for mental health servicesand a major package of support for people with disabilities and their families.
Further improvements in community safety are delivered, with a focus on emergency services,counter-terrorism and building newpolice stations across the State. An additional 600 front-line police willbe recruited.
The budget renews the highlysuccessful Regional InfrastructureDevelopment Fund for a further fiveyears, funds packages of support forVictoria’s primary industries and smallcountry towns, and directs significantfunds towards rebuildingcommunities suffering the effects ofthe drought and bushfires.
Investment in Melbourne’s growingsuburbs continues, with a focus onimproving transport links andrevitalising the city’s middle andouter suburbs.
The Government’s commitment to protecting the environment isreflected in substantial new fundingfor the more sustainable use ofVictoria’s water, forest and energyresources and the creation of a single national park from Anglesea to Cape Otway.
The budget makes provision for the2006 Commonwealth Games,including new and upgraded sportsfacilities and a new bridgeconnecting the MCG with BirrarungMarr and the Yarra River.
The 2003-04 Budget builds on theGovernment’s first-term record ofachievements. It gets on with the jobof providing decent and responsiblegovernment, meeting the challengesand seizing the opportunities facingVictoria – ensuring all Victorians havethe opportunity to be part of a strongand prosperous State.
JOHN BRUMBY MPTreasurer
2003-04 Victorian Budget Overview > 3
THE GOVERNMENT CONTINUES TO DELIVER RESPONSIBLE FINANCIAL MANAGEMENT AND MAINTAIN A SUBSTANTIAL OPERATING SURPLUS, WHILE MEETING OUR ELECTION COMMITMENTS AND
INVESTING IN THE KEY DRIVERS OF GROWTH: EDUCATION, INNOVATION AND INFRASTRUCTURE
Building On The First Term
DELIVERING ON ELECTIONCOMMITMENTSThe 2003-04 Budget delivers theBracks Government's 2002 electioncommitments within an ongoingframework of sound financialmanagement.
BUILDING ON VICTORIA'SSTRENGTHSOver the past three years, the BracksGovernment has delivered significantimprovements to health, educationand community safety, and investedheavily in better infrastructure acrossthe State, with an emphasis onimproving transport linkages andrebuilding country Victoria. Key first-term achievements include:
■ placing over 3 000 extra teachersand staff back into education;
■ investing over $800 million to buildbetter schools and TAFEs, including16 new schools and fivereplacement schools;
■ attracting more than 3 300 nursesback into the health system toimprove standards of health care;
■ opening 12 new ambulancestations and placing over 260 newparamedics on the road;
■ deploying an extra 800 police onthe streets;
■ building 65 new police facilitiesacross Victoria;
■ commencing projects in theGovernment’s Linking Victoriastrategy which aims to revitaliseVictoria's transport links;
■ providing funding to deliver fast raillinks between Melbourne andGeelong, Ballarat, Bendigo and theLatrobe Valley, and other regionalrail lines;
■ introducing the RegionalInfrastructure Development Fund for capital works in rural andregional communities, with initialfunding of $180 million;
■ providing funding to build theWimmera-Mallee pipeline that willsave 93 000 megalitres of waterper annum currently lost throughevaporation from open channels;
■ increasing the Snowy River’s flowto 6 per cent of the original flow asthe first step in the agreement withthe Commonwealth and NSWGovernments to restore it to 28 percent; and
■ establishing the world's firstcomprehensive and representativesystem of marine national parksand sanctuaries along the Victorian coast.
In the 2003-04 Budget, the BracksGovernment is delivering on itscommitments, building on the strongrecord of achievement, and gettingon with the job of building a smarter,safer and healthier Victoria.
4 > 2003-04 Victorian Budget Overview
2003-04 Budget Highlights
SOUND FINANCIAL MANAGEMENTThe Government remains committedto providing a sound and stablefinancial base to promote growthacross the State, deliver improvedservices and secure Victoria’s long-term economic, social andenvironmental prosperity.
Despite a climate of globaluncertainty and significant additionaldemands on the budget from thestatewide drought and bushfires, theGovernment is delivering substantialoperating surpluses in excess of the$100 million target, maintaining lowlevels of net financial liabilities andreinforcing Victoria’s strong triple-Acredit rating. The 2003-04 Budget delivers:
■ a substantial budget operatingsurplus of $245 million for 2003-04, and surpluses averaging$391 million for the following three years;
■ an investment boost through newprojects with a total estimatedinvestment (TEI) of $1.2 billion tocommence in 2003-04;
■ net infrastructure investmentaveraging $2.5 billion per annum,with a record high $2.6 billion in2004-05, reflecting theGovernment’s significant ongoinginfrastructure spending program;
■ a reduction in net financialliabilities, as a percentage of grossstate product (GSP), from 8.6 percent at 30 June 2002, to 8.0 percent at 30 June 2007 (excluding theGrowing Victoria infrastructurereserve); and
■ net debt remaining low over theoutlook period, at a projected 1.4 per cent of GSP at June 2007.
The Government's prudent financialmanagement continues to berecognised with the internationalratings agencies, Standard and Poor’s and Moody’s, recentlyaffirming Victoria’s triple-A long-termcredit rating.
The Government has reviewed itsdelivery of services and programsand will make savings of $141 millionin 2003-04, rising to $167 million in2006-07, through improvedadministrative efficiency, productivitygains and the reform and bettertargeting of services.
GROWING AND LINKING ALL OF VICTORIAThe 2003-04 Budget commits $278 million over four years in output initiatives and $273 million TEI in asset investment to continuedelivering a more modern, efficientand integrated transport systemacross the State and better linkregional communities. Key initiatives include:
■ renewing the $180 million RegionalInfrastructure Development Fund,including a $70 million extension of the natural gas pipeline toregional Victoria;
■ constructing the Pakenham Bypass($121 million);
■ upgrading outer-metropolitanarterial roads ($28 million);
■ improving Melbourne’s rail system($24 million); and
■ developing Victoria’s ports ($30 million).
2003-04 Victorian Budget Overview > 5
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2003-04 Budget Highlights
THRIVING, INNOVATIVE BUSINESSESAND INDUSTRIES ACROSS VICTORIAThe Government commits $60 millionover four years in output initiatives todrive a strong, thriving and innovativeeconomy, create job opportunities,and assist business to be morecompetitive. Key initiatives include:
■ supporting Victoria’s tourismindustry ($41 million); and
■ addressing skills shortages inregional communities ($10 million).
In addition, in October 2002 theGovernment committed $310 millionto innovation programs under the Victorians. Bright Ideas. BrilliantFuture. package. Specific initiativesinclude:
■ boosting science and research inrural Victoria ($50 million);
■ delivering the VicStart industryinnovation program ($25 million);
■ additional investment in thesynchrotron ($57 million); and
■ continuing the Government’scompetitive grants program toboost Victoria’s research anddevelopment infrastructure ($121 million).
VALUING AND INVESTING INLIFELONG EDUCATION AND TRAININGThe 2003-04 Budget commits $789 million over four years in output initiatives and $137 million TEI in asset investment to deliver world-class learning environments to all Victorians that promoteexcellence and support an innovativeand competitive economy. Key initiatives include:
■ 450 additional teachers insecondary schools ($82 million);
■ 256 additional student welfareofficers in primary schools ($50 million);
■ providing new and upgradedschools across Victoria ($107 million);
■ reform of training programs,including a new completion bonusscheme to encourage employers totake on trainees and apprentices ($72 million); and
■ additional support for non-government schools in greatestneed ($70 million).
HIGH QUALITY, ACCESSIBLE HEALTHAND COMMUNITY SERVICES The Government is committing $1.9 billion over four years in outputinitiatives and $357 million TEI inasset investment to continuedelivering high quality health andcommunity services to all Victorians.Key initiatives include:
■ delivering the ‘first stage’ of the Government’s continuingcommitment to the $890 millionHospital Demand ManagementStrategy, which will provide anadditional 900 nurses and healthcare staff and treat an extra 35 000patient admissions per year inpublic hospitals and 47 000presentations per year atemergency departments ($464 million – first stage);
6 > 2003-04 Victorian Budget Overview
■ providing new radiotherapy facilities($29 million);
■ upgrading and integrating ICTsystems across public hospitalsand agencies ($139 million);
■ implementing the Children Firststrategy ($88 million);
■ improving health services for seniorVictorians ($71 million);
■ boosting funding for disabilityservices ($75 million); and
■ improving access to affordablehousing for Victorians ($89 million).
SAFE STREETS, HOMES AND WORKPLACESThe Government is committing $261 million over four years in outputinitiatives in addition to $106 millionTEI in asset investment to enhancecrime prevention and communitysafety. Key initiatives include:
■ an additional 600 police, taking thesize of the police force to 10 900officers ($126 million);
■ new or replaced police facilitiesacross the State ($66 million);
■ implementing a handgun buybackprogram ($21 million);
■ funding towards an additional 219 metropolitan and CFAfirefighters ($11 million); and
■ enhancing the State’s counter-terrorism responsiveness($60 million).
PROTECTING THE ENVIRONMENTAND PROMOTING SUSTAINABLEDEVELOPMENTThe 2003-04 Budget is committing$208 million over four years in outputinitiatives and $121 million TEI inasset investment to continueprotecting Victoria’s natural heritageand ensuring natural resources are used wisely and sustainably. Key initiatives include:
■ projects to encourage sustainablewater management through theVictorian Water Trust ($93 million);
■ protecting the Otways ($14 million);
■ assisting Victoria’s farms to preventand respond to disease and pests($24 million); and
■ a major weed control program ($24 million).
BUILDING COHESIVE COMMUNITIESAND REDUCING INEQUALITIESThe Government is committing $316 million over four years in outputinitiatives to continue building andstrengthening communities acrossVictoria. Key initiatives include:
■ assisting the long-termunemployed, young people, andother disadvantaged groups backinto work or training ($60 million);
■ boosting community arts programsand cultural projects ($138 million);
■ improving sporting facilities in regional communities and under-resourced suburbs ($34 million); and
■ revitalising suburbs andneighbourhoods as part ofMelbourne 2030 ($4 million).
PREPARING FOR THE 2006COMMONWEALTH GAMESIn the 2003-04 Budget, theGovernment is committing $56 million TEI in asset investmentfor the Commonwealth Gamespreparation. Key initiatives include:
■ upgrading infrastructure, particularly transport, in the Yarra precinct ($31 million);
■ constructing a temporary athleticstrack at the MCG ($19 million); and
■ building and upgrading majorsporting facilities ($6.5 million).
PROMOTING RIGHTS ANDRESPECTING DIVERSITYThe Government is committing to arange of initiatives to progress anenvironment of diversity, trust andtolerance throughout the State. Keyinitiatives include:
■ boosting skilled migration ($6 million);
■ increasing funding for the VictorianMulticultural Commission’scommunity grants program ($1.2 million);
■ increasing legal aid funding ($14 million); and
■ constructing a new courthousecomplex in the Moorabbin area ($18 million).
2003-04 Victorian Budget Overview > 7
Victoria’s Economy – Growth Amid Uncertainty
The Victorian economy hasperformed strongly, with growthexceeding the national average byalmost one percentage point perannum over the five years to 2001-02.
Victoria's domestic demand remainsstrong in 2002-03, despite thedrought and a sluggish worldeconomy, highlighting the underlyingstrength of the State's economy.Business investment continues toexceed the national average (percapita), and housing constructionremains solid. The strength ofbusiness investment, and non-residential construction in particular,reflects business optimism aboutVictoria's prospects.
Victorian employment has continuedto strengthen in 2002-03, with jobs forecast to grow at a high 2.25 per cent, and theunemployment rate falling to a 13-year low of 5.75 per cent.
The global economy began this yearon a subdued note and the war inIraq and the SARS outbreak havefurther clouded the near-termoutlook. Together with the impact ofthe drought and bushfires, thisshould moderate Victoria's growth in2002-03 to 2.75 per cent, beforerebounding to 3.75 per cent in 2003-04 on the back of a globalrecovery and the ending of drought conditions.
Over the medium term, employmentgrowth is expected to remain strong,driving further improvement in theunemployment rate. Despite thisstrength, wages should remainrelatively subdued.
8 > 2003-04 Victorian Budget Overview
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Actual Forecast Forecast Projection Projection Projection2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Economic growth 4.9 2.75 3.75 3.50 3.50 3.50Employment growth 1.1 2.25 1.00 1.50 1.50 1.50Unemployment rate 6.3 5.75 5.75 5.50 5.25 5.25Inflation 2.8 3.00 2.25 2.25 2.25 2.25Wages growth 3.5 3.75 3.50 3.50 3.50 3.50
VictoriaAustralia
VICTORIAN ECONOMIC PROJECTIONS %
THE VICTORIAN ECONOMY CONTINUES TO PROVE ITS RESILIENCE IN THE FACE OFGLOBAL UNCERTAINTY, PERFORMING STRONGLY IN BUSINESS INVESTMENT,
DOMESTIC DEMAND AND JOBS GROWTH AND RECORDING ITSLOWEST UNEMPLOYMENT RATE IN 13 YEARS
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LEADING IN KEY MEASURES
Budget at a Glance
2003-04 Victorian Budget Overview > 9
REVENUE 2003-04
EXPENSES 2003-04
WHERE THE MONEY COMES FROMTotal revenue of $26 598 million isprojected for 2003-04, representing a$135 million increase (0.5 per cent)on the 2002-03 revised estimates.
The low growth in revenue is due toan expected moderation in propertymarket activity and associatedproperty tax revenues, a reduction inthe payroll tax rate from 5.35 per centto 5.25 per cent from 1 July 2003,moderate growth in CommonwealthGrants, and declines in investmentincome and other revenue sources.
The Government is also implementingseveral revenue initiatives in the 2003-04 Budget, including:
■ tax assistance to families, land taxpayers and the disabled through:
– providing a payroll tax exemptionfor paid maternity leave;
– extending the payment period forland tax liabilities; and
– providing concessions andexemptions from motor vehiclestamp duty for vehicles thattransport incapacitated persons inwheelchairs, or which have beenmodified to enable operation by adisabled person;
■ a partial catch-up increase to feesand charges, including motorvehicle registration, that have notincreased for some time, andongoing annual indexation of allfees and fines set by regulation.The base motor vehicle registrationfee will rise from $140 to $157 from1 July 2003, and for the first timethis increase will be directlychannelled into improving Victoria’sroads, through the Victorian BetterRoads Trust; and
■ replacement of the payroll taxexemption for apprentices andtrainees with a new completionbonus scheme for employers ofapprentices and trainees.
In addition, the 2003-04 Budgetincludes enhancing VicRoads’monitoring capabilities to ensure theappropriate application of the motorvehicle registration concession, andfacilitating enhanced compliance bythe State Revenue Office in relationto land transfer stamp duty on highvalue conveyances.
WHERE THE MONEY GOESTotal expenses are expected to be $26 354 million in 2003-04,representing an increase of $50million (0.2 per cent) on the revised2002-03 estimate. This increaseprimarily reflects additional netoutput funding of $550 million, slightly offset by:
■ the one-off impact of weak equity market performance andactuarial revisions in 2002-03superannuation expense,contributing to a decline inexpenses of around $882 million in 2003-04;
■ expected cessation or wind-down of various Commonwealth fundedprograms (around $160 million); and
■ a range of other one-off costswhich boosted expenses by around$358 million in 2002-03, includingthe drought relief package ($85 million), and bushfiresuppression and relief costs ($139 million).
Commonwealth Grants 46%Taxes, Fees and Fines 36%Sale of Goods and Services 8%Investment Income 3%Other Revenue 7%
Human Services 36%Education 29%Justice 9%
Primary Industries / Sustainability and Environment 5%Other 21%
Building Victoria’s Infrastructure
Since coming to office, theGovernment has committed over $5 billion to infrastructure projectsacross the whole of Victoria.Reflecting this significantinfrastructure program, generalgovernment net infrastructurespending of $2.6 billion in 2004-05 will be the biggest in the State’s history.
This budget continues theGovernment’s commitment to rebuild Victoria and create jobs by committing $1.2 billion TEI toboost infrastructure assets. Keyprojects include:
■ $121 million towards theconstruction of the PakenhamBypass;
■ $29 million for new radiotherapyequipment;
■ $139 million for upgrading andintegrating ICT systems acrosspublic hospitals and agencies;
■ $53 million to conserve waterresources through the VictorianWater Trust;
■ $107 million for new schools andupgrades across the State; and
■ $56 million towards facilities for the 2006 Commonwealth Games.
Total infrastructure investmentannounced in the 2003-04 Budgetincludes:
■ $273 million for transport;
■ $137 million for education;
■ $357 million for health andcommunity services;
■ $106 million for justice and public safety; and
■ $121 million for the environment.
The budget provides around $540million of the $2 billion of assetelection commitments to bedelivered over the second term ofthe Bracks Government.
This spending contributes to netinfrastructure investment averaging$2.5 billion per annum over theperiod 2003-04 to 2006-07. Thissignificant level of expenditure wellexceeds estimated depreciation ofaround $1.1 billion per annum andresults in growth of real capital stockover the four years to June 2007 of10.7 per cent, compared to projectedpopulation growth of 3.9 per cent.
This investment reaffirms theGovernment’s commitment toensuring Victoria has the modern,efficient infrastructure necessary toremain competitive in a globaleconomy and to attract investmentand generate jobs.
10 > 2003-04 Victorian Budget Overview
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Base LevelGrowing Victoria
IN ITS SECOND TERM, THE BRACKS GOVERNMENT WILL CONTINUE TO DELIVER A COMPREHENSIVE PROGRAM OF INVESTMENT IN TRANSPORT, SOCIAL, CULTURAL,
ENVIRONMENTAL AND ECONOMIC INFRASTRUCTURE WITH THE GOAL OF GROWING, BUILDING AND LINKING THE WHOLE STATE
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BOOSTING VICTORIA’S INFRASTRUCTURE
Growing and Linking All of Victoria
In its first term, the Governmentestablished its Linking Victoriaprogram to deliver a more efficient,reliable and modern statewidetransport system. Projects includeestablishing fast rail links to regionalVictoria, reopening country railpassenger lines, redevelopingSpencer Street Station andduplication of the Calder Highway.
In addition, the Governmentestablished the RegionalInfrastructure Development Fund,with an initial allocation of $180 million over three years to fund capital works projects in rural and regional communities.
The 2003-04 Budget commits $278 million over four years in outputinitiatives and $273 million TEI inasset investment to further improveand better integrate the State’sroads, rail, public transport and ports, and better link regionalcommunities with each other,Melbourne and the world.
GROWING AND LINKING REGIONAL VICTORIAThe Government will continue toimprove links between Melbourneand all parts of Victoria, including:
■ $70 million TEI as part of therevised delivery strategy for theupgrade of the Calder Highwaybetween Melbourne and Bendigo;
■ $5 million TEI to construct a newrailway station at Grovedale toenhance rail services in Geelong;
■ $5 million TEI to improve roadsafety in country Victoria through abypass around the town centre ofPyalong; and
■ $4.1 million TEI to begin initial planning for the GeelongWestern bypass.
The 2003-04 Budget renews thesuccessful Regional InfrastructureDevelopment Fund for a further fiveyears, allocating $180 million toimprove strategic transport linksacross Victoria, create newopportunities and better enableregional Victoria to work as part of an economic network. Specificinitiatives include:
■ $70 million to extend pipelineinfrastructure to regional Victoria to boost access to natural gassupplies; and
■ $20 million to attract investment in small towns and isolatedcommunities to drive businessopportunities and jobs growth.
GROWING AND LINKING THE SUBURBSCommunities across outer Melbournewill benefit from road and publictransport initiatives totalling $171 million as part of theGovernment’s Linking the Suburbsprogram, including:
■ $121 million TEI towards theconstruction of a new 20-kilometrebypass around the Pakenham area;
■ $28 million TEI to upgrade outer-metropolitan arterial roads inGreensborough, Frankston andCarrum Downs;
■ $11 million over four years toimprove bus services acrossMelbourne, and an additional $2.6 million TEI to introduceSmartBus technology to south-eastern Melbourne; and
■ $8 million over three years toexpand Victoria’s network of cycling paths.
The Government will invest $16 million over four years toenhance Melbourne’s rail system,including development of a newticketing system, and initiatives toimprove rail safety and reliability. An additional $7.2 million TEI is alsoprovided to rehabilitate the FlindersStreet Station concourse.
The Government is committed toharnessing private sector investmentin the construction of the Mitcham-Frankston Freeway. When completed,this will deliver a vital linkagebetween ports, airports, major freightterminals and industrial precincts,while providing enormous benefits tomotorists through improved traveltimes and road safety.
In April 2003, the Governmentannounced that in order to deliverthis vitally important transport link forthe people of Melbourne’s south-eastern suburbs by 2008, whilemaintaining the financial stability ofthe State and continuing to delivermajor improvements in health,education and the environment,construction of the Freeway wouldbe funded through tolls.
DEVELOPING VICTORIA'S PORTSPort infrastructure is critical toVictoria’s linkages with national andglobal economies. In addition toundertaking a study into thedeepening of the Port of Melbourne,the 2003-04 Budget provides anumber of initiatives to furtherdevelop Victorian ports, including:
■ $29 million TEI to construct a dual-gauge goods line at the Port ofGeelong, and a new road overpassto the Port of Portland;
■ $1 million over three years tointegrate the Port of Melbournewith the Dynon rail terminals; and
■ $3.6 million over four years toestablish new community harbours,continue the marinecommunications program andestablish a campaign for safewatercraft use.
2003-04 Victorian Budget Overview > 11
IS VITAL FOR VICTORIA'S FUTURE, AND FOR LINKING AND A MODERN, EFFICIENT AND INTEGRATED TRANSPORT SYSTEM
CONNECTING COMMUNITIES AND BUSINESSES ACROSS THE STATE
A Budget for All Victorians
12 > 2003-04 Victorian Budget Overview
BARWON-WESTERN DISTRICT■ Overpass construction at
Cliff Street, Portland■ Construction of a dual gauge
independent goods line at the Port of Geelong
■ Geelong Western Bypass planning phase
■ Stage Two construction of a new schoolat Bellarine and the modernisation ofGeelong High School and Lara LakePrimary School
■ Refurbishment of the AngleseaRecreation Camp
■ Construction of a new railway station at Grovedale
■ Replacement of a police station at Bannockburn
CENTRAL HIGHLANDS-WIMMERA■ Redevelopment of the facilities
at the Nhill Hospital■ Modernisation of six primary schools
and the construction of specialistfacilities at Ballarat High School and thereplacement of Rockbank Primary School
■ Refurbishment of accommodation at the Lady Northcote Recreation Camp
■ New Legal Aid office in Horsham
MAJOR NEW ASSET INVESTMENTS ANNOUNCED IN THE 2003-04 BUDGET WILL DELIVER BETTER INFRASTRUCTURE FOR ALL VICTORIANS
LODDON-MALLEE■ Duplication of the Calder Highway ■ Modernisation of Specimen Hill Primary
School and continued construction ofthe Maryborough Education Precinct
■ Replacement of three police stations at Bendigo, Nyah and Robinvale
■ Redevelopment of aged care facilities in Red Cliffs
■ Expand and upgrade communicationequipment for Rural Ambulance Victoria
MELBOURNE■ Construction of the Pakenham Bypass■ Construction of six new schools and
the Stage Two construction of CarrumDowns Secondary College, specialistfacilities constructed at VermontSecondary College and Lilydale HighSchool, reinstatement of three firedamaged facilities, modernisation of 25 schools and the replacement ofCarronbank School
■ New and upgraded infrastructure for the Commonwealth Games, focusingon the Yarra precinct and sportingfacilities in Melbourne
■ Upgrade outer-metropolitan arterialroads in Greensborough, Frankston and Carrum Downs
■ New police station at Caroline Springsand two replacement police stations atBrunswick and Pakenham
■ New radiotherapy facilities at theMonash Medical Centre (Moorabbin Hospital)
■ New courthouse complex in theMoorabbin area
■ Upgrade of the Werribee MercyHospital emergency department
■ Upgrade of the Dandenong Hospital ■ Continued redevelopment of Flinders
Street Station concourse ■ Upgrade of the Police Forensic
Laboratories ■ Redevelopment of recreation camps at
Mt Evelyn and Mt Eliza■ Relocation of the Victorian Foundation
for Survivors of Torture and Trauma
GIPPSLAND■ Replacement of three police
stations at Bairnsdale, Warraguland Swifts Creek
■ Replacement of TraralgonSecondary College, modernisationof Maffra Primary School and thecontinued construction of theGippsland Education Precinct
■ Expand and upgradecommunication equipment forRural Ambulance Victoria
■ Redevelopment of aged carefacilities in Trafalgar
GOULBURN-OVENS-MURRAY■ Construction of the Pyalong Bypass ■ Reinstatement of the fire damaged
Wodonga High School (Flying Fruit FlyCircus Campus), modernisation of threeschools and the construction ofspecialist facilities at RochesterSecondary College and Lilydale High School
■ Refurbishment of accommodation at theHowmans Gap Alpine Centre
■ Replacement of five police stations atMitta Mitta, Mt. Hotham, Myrtleford,Tallangatta and Woods Point
■ Redevelopment of aged care facilities in Numurkah and Eildon
STATEWIDE■ Development of the health ICT strategy■ Major school infrastructure projects
including six new schools, threereplacement schools and modernisationof 38 schools
■ Victorian Water Trust ■ New biomedical and radiotherapy
equipment in hospitals■ Maintain and upgrade teaching
equipment in TAFEs■ A program of road safety infrastructure
improvements in rural Victoria■ Fire Risk Management Strategy for
health care facilities■ Improved access to affordable housing■ New cycle paths
Thriving, Innovative Businesses andIndustries Across Victoria
In the 2003-04 Budget, theGovernment is providing $60 millionover four years in output initiatives, inaddition to $310 million announced inOctober 2002 for the InnovationStatement, to continue building thefoundations for a strong, thriving andinnovative Victoria.
DRIVING INNOVATIONTo position the State as a forward-looking and globally connectedeconomy, the Governmentannounced, in October 2002, a $310 million commitment toinnovation programs in its InnovationStatement: Victorians. Bright Ideas.Brilliant Future. targeting five strategicareas: ICT, biotechnology, newmanufacturing technologies, designand environment technologies.
This funding brings to over $900 million the Government’s totalcommitment to positioning Victoriaas a global leader in innovation. Key initiatives over the Government’sfirst term include committing to theconstruction of a synchrotron facility,providing funding to developVictoria’s biotechnology and medicalresearch capacity, funding initiativesto encourage innovation in Victorianbusinesses, and boosting resourcesin Victorian schools and TAFEs toimprove education in science and technology.
This budget has allocated part of the$310 million funding towards specificinitiatives, including:
■ $50 million over four years to boostscience and research efforts toopen up new opportunities inregional industries and improve thequality of life in rural and regionalcommunities;
■ $121 million over five years toboost Victoria’s research andinnovation infrastructure throughcontinuing the Government’scompetitive grants program;
■ $57 million over three years,building on the Government’s $100 million commitment in the2002-03 Budget, to enable theconstruction of a nationalsynchrotron – Boomerang 20 –representing a significantinvestment in Australia’s scientificinfrastructure;
■ $25 million over four years throughVicStart to increase innovation inindustry through encouraginggreater levels of investment inresearch and development,facilitating access to finance, andmaximising the benefits to Victorianindustry from access to publicsector research;
■ $4 million over four years for a newSmart Freight program to improveinformation flows in Victoria’sfreight industry; and
■ $2.9 million over three years tostrengthen and develop innovationclusters, with the initial focus beingon regional areas, to build onVictoria’s strengths in food andagriculture, health, manufacturing,biotechnology and ICT.
In addition, the Government iscommitting $10 million TEI towardsestablishing a Biotechnology Centreof Excellence at Monash University,$5 million of which will be providedin 2002-03 through the existingScience Technology and Innovationgrants program.
14 > 2003-04 Victorian Budget Overview
GROWING VICTORIA'S BUSINESSES Over its first term, the Governmentimplemented a number of reforms to help Victorian businesses become more competitive, moreinnovative and better connected toglobal markets.
This includes more than $1 billion inbusiness tax cuts over 2001-02 to 2005-06, taking Victoria from havingthe highest number of business taxes to the equal lowest, andimplementing business growthinitiatives in the Building Tomorrow'sBusinesses Today business statement.
This budget sees the implementationof the Government’s last installmentof payroll tax initiatives announced in Building Tomorrow’s BusinessesToday. From 1 July 2003, the payrolltax rate will be further reduced, from 5.35 per cent to 5.25 per cent.This represents a total 9 per centreduction in the payroll tax rate since the Bracks Government came to office.
The Government supported a numberof key initiatives in its first term topromote innovation and growth inVictorian businesses, includingassisting the growth ofmanufacturing in Victoria andproviding additional funding topromote Victorian exports andoverseas investment.
The 2003-04 Budget continues toassist Victorian business, with keystrategies including:
■ $10 million over four years tosupport communities acrossregional Victoria to address skillsand labour shortages;
■ $2 million over four years to theStreetLife program to supportVictorian small businesses;
■ $1.5 million over three years tomaximise the benefits to Victorianbusinesses of hosting the 2006Melbourne Commonwealth Games;and
■ $8 million over four years for thenew Small Business Commissionerto promote a fairer environment forsmall business.
The 2003-04 Budget is alsoimplementing a number of initiatives,totalling $41 million over four years,to promote tourism across the wholeState, with a key focus on enhancingthe State’s major events profile andassisting regional tourism operatorsto enhance the attractiveness of theircommunities.
MODERNISING GOVERNMENTIn its first term, the Governmentprovided strong leadership in ICTuptake and the modernisation ofpublic and community servicedelivery. Key initiatives included amajor investment to upgradegovernment ICT infrastructure, andthe development of a new onlinegovernment portal. These willimprove the delivery of governmentservices to all Victorians, andfacilitate community access togovernment services.
The 2003-04 Budget continues theGovernment’s investment to improvethe ICT interface betweengovernment and the community toensure that knowledge andinformation flows freely andcommunication is optimised. Keyinitiatives include:
■ $139 million TEI for the health ICTstrategy, which aims to provide amodern, technically advanced andleading edge hospital environment;
■ $21 million TEI for an electronicmedication prescribing program inkey Victorian hospitals;
■ $33 million over four years for aneGovernment Implementation Planthat includes establishing a Chief Information Officer to monitorand coordinate ICT investmentacross government to containgrowing ICT costs, improve systemintegration, and support betterservice delivery; and
■ $5 million TEI to improve policeresponsiveness to criminal activitythrough more modern computingand communications equipment,linking police IT systems to betteridentify and manage emergingcrime trends.
In addition, the Government isimplementing the Gateway initiativeto achieve better capital investmentoutcomes across the Victorianbudget sector, through bettermanagement of high-risk projectsfrom independent reviews, enhancedmonitoring, development of a multi-year investment strategy, andproject life-cycle guidance material.
2003-04 Victorian Budget Overview > 15
THE GOVERNMENT CONTINUES ITS RECORD INVESTMENT IN INNOVATION AND NEW TECHNOLOGIES AS THE KEY DRIVERS OF ECONOMIC AND JOBS GROWTH,
AND A VITAL ELEMENT IN VICTORIA'S FUTURE SUCCESS
Valuing and Investing in Lifelong Education
A strong education system is vital toVictoria’s future. Since coming tooffice, the Government hascommitted over $800 million TEI inasset investment, provided over 3 000 extra teachers and staff andbuilt 16 new schools and fivereplacement schools, to ensure thatevery Victorian has access to lifelongeducational opportunities.
The 2003-04 Budget builds on theGovernment’s first-termachievements by allocating $789 million over four years in outputinitiatives as well as $137 million TEI in asset investment to deliver a world-class learning environment that provides the foundation forVictoria’s future social and economicprosperity in a dynamic and global economy.
To build on progress made towards achieving the Government’sgoals and targets for education andtraining and to meet futurechallenges, the Government will beimplementing a reform strategy from2003-04. This will ensure resourcesare best used to strengthen servicedelivery capacity and outcomeswithin the system.
EXCELLENCE AND INNOVATION INEDUCATION AND TRAININGIn its three previous budgets, the Government made significantinvestments in education andtraining, focusing on innovation,access and excellence. The 2003-04Budget builds on that investment andwill boost access to quality educationand training pathways that promoteexcellence and support an innovativeand competitive economy, including:
■ $82 million over four years for 450additional teachers in secondaryschools to promote specialisationwithin subject areas that best meetcommunity needs;
■ $10 million TEI to support theadditional teachers throughproviding state-of-the-art facilitiesand equipment in secondaryschools to facilitate innovativeteaching programs;
■ $2.3 million over four years toimprove leadership in schools by expanding professionaldevelopment opportunities for principals;
■ $6 million over four years toimprove excellence in languageeducation in secondary schools,including eight new centres oflanguage education; and
■ $4.8 million over four years toprovide follow-up assistance forschool leavers to help the transitionof post-compulsory students towork or further education andtraining.
The Government is directing $72 million into initiatives aimed atrefocusing training programs totarget specific needs in the Victorianworkforce and assist youngVictorians to acquire skills andqualifications. This includes:
■ replacing the current payroll taxexemption for wages paid totrainees and apprentices with anew completion bonus scheme inorder to promote higher completionlevels and ensure the labour marketis supplied with a highly skilledworkforce;
■ meeting increased demand foralternative vocational education and training pathways in schools;
■ improving opportunities forVictorians to acquire in-demandskills and qualifications; and
■ enabling TAFEs to align teachingequipment to industry standardsand provide specialised trainingequipment utilised in prioritystrategic industries.
16 > 2003-04 Victorian Budget Overview
NUMBER ONE PRIORITY IN ITS SECOND TERM IN OFFICEEDUCATION CONTINUES TO BE THE GOVERNMENT'S
IMPROVED ACCESS AND EXPANDED OPPORTUNITIESThe Government will continue toreduce educational disadvantage and ensure all Victorians have accessto learning institutions, regardless oftheir location or circumstances, by providing:
■ $50 million over four years for 256 student welfare officers inprimary schools to prevent studentdisengagement and alienation fromthe education system, and providea secure and supportive learningenvironment;
■ $96 million over four years for thedisabilities program to supportstudents with special educationneeds in government schools;
■ $70 million over four years tosupport non-government schools ingreatest need and improve internetaccess to enhance multimedialearning and innovative delivery of education;
■ $5 million over four years to extendthe Victorian Youth DevelopmentProgram to all governmentsecondary schools which providesopportunities for students toengage in programs that promoteyouth leadership and communityparticipation;
■ $3.5 million TEI towards theMaryborough Education Precinct,which provides a specialisedlearning environment combiningprimary and secondary schools with a TAFE college; and
■ $2 million TEI towards thecompletion of the GippslandEducation Precinct.
BUILDING BETTER SCHOOLS ANDCOMMUNITY ASSETSCareful asset maintenance, includingan ongoing refurbishment plan, is anessential feature of a world-classeducation system. The 2003-04Budget includes:
■ $30 million TEI for the constructionof six new primary and secondaryschools across the State;
■ $52 million TEI to modernise 38 schools throughout Victoria;
■ $12 million TEI for thereinstatement of facilities in schoolsthat were damaged or destroyed by fire; and
■ $5.1 million TEI to replace threeschools in growth areas that haveoutgrown existing facilities.
2003-04 Victorian Budget Overview > 17
High Quality, Accessible Health and Community Services
Over the past three years, the Government has committedsignificant funding to rebuildVictoria’s health system. Thisincludes rebuilding hospitals andaged care facilities, recruiting anextra 3 300 nurses, opening 12 newambulance stations, providing over260 new paramedics, andimplementing strategies to respond to growing demand forhealth services.
The 2003-04 Budget commits anadditional $1.9 billion over four yearsin output initiatives in addition to$357 million TEI in asset investmentto build on these improvements,focusing on promoting healthierlifestyles, developing alternativemodels of care, providing betterchildren’s services and improvingVictoria’s capacity to meet the needsof an ageing population.
BETTER MANAGEMENT OF HOSPITAL DEMANDThe Government continues to rebuild Victoria’s public healthsystem, delivering $464 million forthe ‘first stage’ of the Government’scontinuing commitment to the $890 million Hospital DemandManagement Strategy, which willprovide an additional 900 nurses andhealth care staff and treat an extra 35 000 patient admissions per year in public hospitals and 47 000presentations per year at emergencydepartments.
The 2003-04 Budget also provides$20 million over four years to reduceelective surgery waiting lists in ruralVictoria, which will see 1 650additional patients being treatedeach year.
IMPROVED HEALTH CARE FACILITIESACROSS VICTORIAOver the past three years theGovernment has invested strongly inrural Victoria, rebuilding healthfacilities, increasing nurses, andexpanding health and ambulanceservices and public health programs.
The 2003-04 Budget continues toprovide better hospitals and healthfacilities in the suburbs and countryVictoria, to ensure Victorians receivefirst-class health care. Specificinitiatives include:
■ $10 million TEI to upgrade theWerribee Mercy Hospitalemergency department, as well as develop a specialist palliativecare unit;
■ $9 million TEI to expand theDandenong Hospital emergencydepartment;
■ $8.5 million TEI to redevelop theNhill Hospital, including a new 35-bed ward; and
■ $2 million over two years to commence planning for theredevelopment of the Box Hill Hospital.
The Government is also providing$17 million over four years tomodernise and upgrade bush nursing hospitals, improve ruralmaternity services and boost thenumber of doctors, nurses and other health professionals in localrural communities.
18 > 2003-04 Victorian Budget Overview
MODERNISING HEALTH CARE Over the past three years, theGovernment has invested $178million TEI to ensure hospitals areusing safe and well maintainedmedical equipment. The 2003-04Budget continues to deliver amodern, technologically advancedand leading edge hospitalenvironment, with key initiatives including:
■ $139 million TEI for a health ICTstrategy to enable hospitals andhealth agencies to share IT systemsand knowledge, to more reliablyand effectively support hospitals inmeeting current and futuredemands, and move to a new system of keeping healthrecords electronically;
■ $22 million TEI for new biomedical equipment;
■ $29 million TEI to improveradiotherapy facilities at theMonash Medical Centre, and theAlfred and the Austin hospitals, to reduce waiting lists and improvepatient outcomes;
■ $16 million TEI for the upgrading ofcritical infrastructure to supportdelivery of health services; and
■ $10 million TEI to better protecthealth care facilities from the risk of fire, with a particular focus onaged and acute care facilities.
HEALTHIER COMMUNITIESThe 2003-04 Budget implementsinitiatives to improve the overallhealth and wellbeing of thecommunity, through providing betterfacilities and community health careservices targeting senior Victorians,people with disabilities, and children.Specific initiatives include:
■ $88 million over four years for theGovernment’s Children Firststrategy, including establishingcentres for children and upgradinglocal maternal and child healthcentres to provide better services,building new preschool facilities ingrowth suburbs to extend childcareavailability, providing better supportto foster carers, and developinginnovative approaches to earlyintervention and prevention of childabuse and neglect;
■ $71 million over four years toimprove home and communityservices for senior Victorians. Anadditional $26 million TEI is alsoprovided to upgrade residentialaged care facilities;
■ $30 million over four years to boostmetropolitan and rural ambulanceservices, including new stations atKeilor Downs and Burwood, andnew and upgraded regionalservices in Kangaroo Flat, Ballan,Omeo and Mallacoota;
■ $21 million over four years toimprove dental health services;
■ $17 million over four years todeliver more women’s healthservices, including better access to breast screening services;
■ $63 million over four years toimprove mental health services, and an additional $7 million TEI to expand services for children at the Western Hospital;
■ $75 million over four years toimprove quality and access toservices for children and adultswith disabilities, as well as theirfamilies and carers, includingenhanced housing and livingoptions and the ongoingredevelopment of Kew Residential Services;
■ $176 million over four years tocontinue the successful VictorianDrug Strategy, which providesprevention, treatment andrehabilitation programs;
■ $89 million over four years toimprove access to affordable long-term housing for all Victorians andexpand services for homelesspeople; and
■ $10 million over four years forprograms of prevention, earlydetection and intervention toreduce the impact of obesity and diabetes.
2003-04 Victorian Budget Overview > 19
THIS BUDGET CONTINUES THE GOVERNMENT'S COMMITMENT TO TURNING AROUND VICTORIA'S HEALTH SYSTEM AND DELIVERING HIGH QUALITY,
ACCESSIBLE HEALTH AND COMMUNITY SERVICES TO ALL VICTORIANS
Safe Streets, Homes and Workplaces
Since coming to office, theGovernment has committed $785 million in output funding and $646 million TEI in assetinvestment to ensure Victoriaremains the safest State in Australia.This commitment includes recruitingan additional 800 front-line police,building 65 new police facilitiesacross Victoria, developing andimplementing a long-term correctionsinfrastructure program, andsignificant investment in technologyfor the emergency services.
This budget provides $261 millionover four years in output initiativesand $106 million TEI in assetinvestment to continue theGovernment’s commitment to crimeprevention and community safetyacross the State, with an emphasison enhancing police and emergencyservices capabilities and counter-terrorism responsiveness.
MORE EFFECTIVE POLICE The Government is delivering on its election promise to provide moreand better resourced police on thestreets, and a tougher, smarterapproach to crime prevention, with major initiatives including:
■ $126 million over four years toprovide an additional 600 policeofficers, further boosting theeffectiveness, responsiveness and visibility of Victoria’s policeforce and increasing the size of the Victorian police force to 10 900 officers;
■ $66 million TEI to provide new orreplacement police stations inBendigo, Brunswick, Bairnsdale,Caroline Springs, Pakenham,Warragul and 10 small countrytowns, building on theGovernment’s $133 million TEIinvestment in its first term toconstruct 65 new police facilitiesacross Victoria;
■ $6 million TEI to boost the State’sforensic crime solving capabilitieswith new analytical equipment and facilities;
■ $21 million over five years for ahandgun buyback program,commencing on 1 July 2003, toremove up to 9 500 handguns fromthe community and tightenhandgun ownership laws; and
■ $8.6 million over four years to prevent criminals benefiting from the proceeds of crime throughexpanded asset confiscationpowers, and establishing a new reward fund to encourageinformation on serious unsolved crimes.
MORE EFFECTIVE EMERGENCYSERVICESIn addition to the Mobile DataNetwork announced in last year’sbudget, the 2003-04 Budgetcontinues to strengthen Victoria’smuch-needed emergency services.Specific initiatives include:
■ $11 million over four years towards219 additional metropolitan andCFA firefighters; and
■ $19 million over four years to bettervalue and equip emergencyservices volunteers, with a keyfocus on enhancing SESresponsiveness.
COUNTER-TERRORISMThe 2003-04 Budget improves theState’s preparedness in the face ofthe potential terrorist threat,providing a $60 million package overfive years to enhance Victoria’swhole-of-government approach tomanaging security and emergencies,with a key focus on:
■ boosting the State’s emergencyresponse capacity with additionalresources and better training andequipment for emergency services;
■ a more coordinated approach tomanaging emergencies through a new Emergency ServicesCoordination Unit and a Chemical,Biological and Radiological Planningand Response Unit; and
■ enhancing the Victorian digital map database.
These initiatives are in addition to a $38 million package over five years already announced inNovember 2002 to enhance theGovernment’s planning and responsecapabilities through establishing anew Counter-Terrorism CoordinationUnit, State Crisis Centre, andboosting resources available to theSpecial Operations Group.
ROAD SAFETYSince coming to office the BracksGovernment has invested $273 million in road safety initiatives,which has contributed to an 11 percent reduction in the road toll.However, an unacceptable number of road fatalities continue to occur,particularly in regional Victoria. The Government’s road safetystrategy arrive alive! aims to ensureVictoria has the highest possiblestandards of safety for all road users.As part of this strategy, the 2003-04Budget commits:
■ $23 million over two years to fundreduced speed limits aroundprimary and secondary schools inVictoria; and
■ $12 million in 2003-04 to improveroad safety in rural Victoria, througha program of road infrastructureimprovements, deployment of radardevices in high-risk rural areas, and measures to limit speeds ofheavy vehicles.
2003-04 Victorian Budget Overview > 21
MAINTAINING VICTORIA'S POSITION AS THE SAFEST STATE IN AUSTRALIAONE OF THE GOVERNMENT'S TOP PRIORITIES IS PREVENTING CRIME AND
Protecting the Environment andPromoting Sustainable Development
The Government has committed $1 billion over its first term to value and protect Victoria’s naturalresources, including restoring theSnowy River environmental flows,establishing marine national parks and sanctuaries, addressingsalinity, and building the Wimmera-Mallee pipeline.
In the 2003-04 Budget, theGovernment is allocating $208 millionover four years in output initiativesand $121 million TEI for assetinvestment to continue positioningVictoria as a world leader inenvironmental sustainability.
SUSTAINING OUR WATERRESOURCES To enhance the health andsustainability of Victoria’s waterresources and provide greatersecurity of supply for users, the2003-04 Budget commits $40 millionover four years in output initiativesand $53 million TEI in assetinvestment, focusing on:
■ upgrading irrigation systems andwater supply in regional Victoria;
■ delivering significant improvementsto the ecological health of Victoria’srivers; and
■ improving the quality of watersupply for domestic users andencouraging water savings.
SUSTAINING OUR FORESTS AND PARKSBuilding on the Government’s $80 million Our Forests, Our Futurepackage, the 2003-04 Budgetcommits $23 million over four years to:
■ promote the long-term future ofVictoria’s Otway Ranges through an early reduction in logging andwoodchipping, and creating asingle national park extending fromAnglesea to Cape Otway; and
■ improving protection of publicnative forests by replacing sawlogharvesting on public land withprivate plantations.
The Government is also providing$32 million over four years toimprove public safety on Crown land,and ensure national parks andconservation reserves are wellmaintained by employing 50 newpark rangers.
SUSTAINING OUR BIODIVERSITY The Government continues to protect and improve the sustainabilityof Victoria’s biodiversity and plant and animal health, with keyinitiatives including:
■ $24 million over four years tostrengthen the capacity of Victoria’sfarms to prevent and respond todisease and pests; and
■ $24 million over four years for amajor weed control program.
SUSTAINING OUR ENERGYRESOURCESThe 2003-04 Budget provides $13 million over four years to makeVictoria a leader in greenhousefriendly strategies, increase the use of green power in government,and encourage the use of energy-efficient products.
RESPONDING TO BUSHFIRESAND DROUGHTThe Government is addressing thesevere consequences of the recentbushfires and drought, including:
■ $115 million for fire suppressioncosts and $86 million to supportcommunity recovery, help restorethe natural environment andrehabilitate infrastructure inbushfire-affected areas. Much of this funding was allocated in 2002-03; and
■ more than $85 million announced in2002-03 for a package of initiativesto assist drought-affected farmersacross 45 Victorian municipalities.
22 > 2003-04 Victorian Budget Overview
THE GOVERNMENT IS COMMITTED TO PROTECTING VICTORIA'S NATURAL HERITAGE AND USING OUR NATURAL RESOURCES SUSTAINABLY
Building Cohesive Communities and Reducing Inequalities
The Government remains committedto working with communities totackle their problems, improveservices and secure their futures. The new Department for VictorianCommunities will help build strong,resilient and confident communitiesacross the State.
The 2003-04 Budget is providing$316 million over four years in outputinitiatives to help support families,create job opportunities, and improveaccess to government andcommunity services.
HELPING PEOPLE GET INTO THE WORKFORCEThe Government is providing $60 million over four years for anumber of new or retargetedemployment programs to assist the long-term unemployed, young people, and otherdisadvantaged groups back into work or training, including:
■ $39 million over four years for theCommunity Jobs program, whichassists the long-term unemployedback into work or training;
■ $10 million over four years for theJobs for Young People program, tocreate 1 100 new jobs andtraineeships for young Victorians;and
■ $11 million over four years tosupport parents returning to workwho have been out of theworkforce.
BRINGING SPORT, RECREATION ANDARTS TO ALL VICTORIANS With the Commonwealth Gamesproviding a unique opportunity toencourage greater participation insport and recreation, the 2003-04Budget provides a range of initiativesto make sport and recreation moreaccessible to the wider Victoriancommunity, including:
■ $34 million over four years toimprove sporting facilities inregional communities and under-resourced suburbs;
■ $21 million over four years to assistcommunities and sportingorganisations deliver more sportsand opportunities for physicalactivity;
■ $14 million over three years toupgrade Kardinia Park facilities toensure the continuation of AFLgames in Geelong;
■ $12 million over four years toestablish new community centresin regional areas, and upgradefacilities in regional racing clubs;and
■ $3.6 million TEI in 2003-04 toimprove sport and recreationcamps around the State.
The budget delivers a major $138 million boost for arts andcultural projects, including $25 millionto encourage community involvementin arts programs across Victoria, andadditional support for MuseumVictoria, the National Gallery ofVictoria and the Australian Centre forthe Moving Image.
REVITALISING SUBURBS AND CITYNEIGHBOURHOODSThe Government is committed toretaining Melbourne’s status as oneof the world’s most liveable cities.The 2003-04 Budget provides:
■ $4 million over four years torevitalise Melbourne’s middle andouter suburbs as outlined in theGovernment’s Melbourne 2030vision;
■ $8 million in grants over two yearsto communities to continuepreserving Victoria’s public heritageassets; and
■ $4 million to develop eightadditional Transit Cities in keymetropolitan and regional centres.
Measures in this budget will alsoimprove access to affordable long-term housing for all Victorians.
2006 MELBOURNE COMMONWEALTH GAMESThe 2006 Commonwealth Games willbe the largest event ever staged inVictoria. It offers a unique opportunityto showcase Melbourne to the restof the world, promote the city andthe State as prime touristdestinations, and improve communityfacilities for the use of all Victoriansfor many years to come.
The State will contribute $474 millionin operating costs and $223 millionTEI in asset investment to thisimportant event. The Governmenthas already announced $167 millionin projects. The 2003-04 Budgetprovides a further $56 million TEI inasset investment, including:
■ $31 million to upgrade keyinfrastructure, particularly transport,in the Yarra precinct. This includes anew pedestrian bridge to link theMCG with other areas ofMelbourne, better lighting, andimprovements to Jolimont Station;
■ $19 million to construct atemporary athletics track at theMCG; and
■ $6.5 million to build a statemountain bike facility, replace theOlympic Park athletics track andupgrade the State Netball andHockey Centre.
2003-04 Victorian Budget Overview > 23
MAJOR SECOND-TERM PRIORITY FOR THE GOVERNMENTBUILDING AND STRENGTHENING COMMUNITIES ACROSS VICTORIA IS A
Promoting Rights and Respecting Diversity
To support the justice system andpromote rights the BracksGovernment has, over its first term,provided additional resources forLegal Aid, established a Native TitleUnit, committed to an AboriginalJustice Agreement, strengthenedalternative dispute resolutionservices, funded improvements tocourts infrastructure and passed theRacial and Religious Tolerance Act.
In addition, since coming to office,the Government has more thantripled the Victorian MulticulturalCommission’s community grantsprogram to $2.8 million, from $750 000 in 1999, to supportculturally and linguistically diversecommunities throughout the State.
The 2003-04 Budget continues theGovernment’s strong commitment to promote diversity, trust andtolerance within Victoria, andincludes a further funding increase to the Victorian MulticulturalCommission’s grants program of $1.2 million over four years.
Other initiatives in the 2003-04Budget include:
■ $6 million over four years toincrease migration to Victoria for skilled and business migrants,in particular to rural and regional Victoria;
■ $1.3 million over four years to provide new Koori maternityservices;
■ $5 million TEI for specialist services for people who were the victims of torture and trauma in theircountries of origin; and
■ $0.4 million over four years toestablish a multilingual ‘crimestoppers’ line in major communitylanguages for reporting crime.
The Government strongly believes inthe values of respect, cooperationand the protection of the rights of allVictorians. The 2003-04 Budgetstrengthens Victoria’s justice system,with key initiatives including:
■ $14 million over four years toimprove legal aid services to giveVictorians greater access to highquality, professional legal advice;
■ $5.2 million over four years to ensure domestic violence casesreceive the attention they deserveby bringing together specialistexpertise and targeted resourcesthrough a Domestic ViolenceDivision in the Magistrates Court;and
■ $18 million TEI to improve access to justice in the southernmetropolitan area by constructing a new courthouse complex in theMoorabbin area.
The Government will also take asignificant step forward inrecognising and valuing theimportance of Victoria’s indigenouscommunity as the original inhabitantsof the State. Funding is provided tomeet the first in-principle agreementover a native title claim in Victoria,which is for the Wotjobaluk people in relation to the Wimmera region.
24 > 2003-04 Victorian Budget Overview
THE GOVERNMENT RECOGNISES BOTH THE ECONOMIC AND SOCIAL VALUE OF AN INCLUSIVE, COHESIVE,
TOLERANT AND DIVERSE VICTORIAN COMMUNITY
getting on with the job
2003-04 Victorian Budget Overview
www.budget.vic.gov.au
