Budget, environment: The analysis

PHILL PULLINGER, Environment Tasmania

Please find attached for your information Environment Tasmania’s analysis of the Environment spending & Environment policy related implications of the Tasmanian Government Budget.

The analysis is broken down into;-
* Key findings (copied below)
* Analysis of where money is being spent on the environment
* Irrigation Infrastructure comment
* Analysis of forestry subsidies including the $0.0 financial return from Forestry Tasmania
* Broad comparison of transport infrastructure spending

Key findings of the budget analysis in relation to the environment include;-

· The budget for the Parks & Wildlife Service has been significantly cut in real terms, and also as a percentage of the total Tasmanian government budget. PWS has been allocated 1.025% of the total budget, with its budget projected to be cut by 19% between 2008-09 and 2011-12.

· Funding for Climate Change will be cut by more than 50% between 2008-09 and 2011-12, with only $2.37 million allocated in the 2009-10 budget, which represents less than 0.06% of the total budget

· Environment Pollution & Control will be cut by 15% between 08-09 and 2011-12

· Whilst there is significant infrastructure spending on roads (at least $97 million) and modest infrastructure spending on rail (around $11 million), there is little to no infrastructure investment in public transport. If even only a third of the roads project budget were re-allocated to specific public transport infrastructure investment, this could provide approx. $30 million or more annually towards the development over a period of time of a world class public transport system in Tasmania. (Options include the development of extensive public cycle-ways in Tasmanian cities and towns, more extensive, affordable and regular bus services, and even the possibility of public transport availability via rail.)

· There will be at least $16.27 million in taxpayer funding for the Forestry industry in 2009-10

· Whilst the Department of Primary Industries, Parks, Water & the Environment will deliver $8.7 million to government revenue, Forestry Tasmania is projected to provide a $0.0 GBE dividend, $0.0 in taxation and $0.0 in rates to government revenue in the 2009-10 budget

· There is a 12.7% increase in allocation to bus services over the 3 years between 2008-09 and 2011-12, which is welcomed

· Funding for the environment is spread across several Departments, with environment related spending split between the Department of Premier & Cabinet, Department of Justice, and the Department of Primary Industries, Parks, Water and Environment. This dispersal of environment across several portfolios and Ministers leads to inefficiencies, a diffusion of influence, Ministerial conflicts of interest, and poor environmental policy outcomes