2002-03 victorian budget overview growing victoria ......growing and linking all of victoria 11 ......

Investing for our future

2002-03 Victorian Budget Overview

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

2002-03 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 2002

This book is copyright. No part may be reproduced

by any process except in accordance with the provisions

of the Copyright Act. ISSN 1 440-6969

Published May 2002 by authority

Investing for our future

Treasurer’s Message 3

2002-03 Budget: Overview 4

A Growing Economy – Victoria Leads the Way 8

Budget at a Glance 9

Building Victoria’s Infrastructure 10

Growing and Linking all of Victoria 11

A Budget for all Victorians 12

Thriving and Innovative Industries Across Victoria 14

Valuing and Investing in Lifelong Education 16

Ensuring High Quality, Accessible Health and Community Services 18

Creating Safe Streets, Homes and Workplaces 20

Promoting Sustainable Development and Protecting the Environment for Future Generations 21

Building Cohesive Communities and Reducing Inequalities 22

Promoting Rights and Respecting Diversity 23

Modernising Government 24

12002-03 Victorian Budget

Contents

Treasurer’s Message

2 2002-03 Victorian Budget

Over the past two years, Victoria has ledthe way in economic growth, jobsgrowth and business investment. The2002-03 Budget aims to consolidate thisstrong performance and demonstrate aclear vision for the future.

The budget balances economic, socialand environmental goals and objectives,as set out in the Government’sframework for the future, GrowingVictoria Together. It focuses on three keyareas: driving excellence in education,building a more competitive andinnovative economy, and growing thewhole State through investment inVictoria’s suburbs and regions.

Notwithstanding global economicuncertainties, the budget retains asubstantial operating surplus, whilecutting business taxes and improvingservices and infrastructure.

Education is the Government’s toppriority, with significant new resourcesdirected towards improving access toand driving excellence in education andtraining across the State, from preschoolto post-compulsory level.

Building strong communities also remainsa priority for the Government. With muchof Victoria’s future population growthexpected to occur in Melbourne’s growingsuburbs and growth corridors, the budgetmakes a substantial investment in theserapidly expanding areas.

The budget continues the Government’scommitment to rebuild country Victoria,concentrating on improving regionaltransport links, upgrading regionalschools and health care services, andsecuring the future of agricultural andregional industries.

Also of benefit to the whole State, andto future generations of Victorians, is theGovernment’s commitment to constructthe Wimmera-Mallee pipeline, as well asmajor initiatives to value and protectVictoria’s environment, especially ourforests and rivers.

The budget delivers furtherimprovements in health and communitysafety, with a focus on improving policeand emergency communications servicesand a major new child protectionprogram. The budget also makes a

substantial investment in improvingaccess to quality, affordable housing andassisting families and communities inneed of support.

The budget demonstrates theGovernment’s continuing commitmentto transparency and accountability. It isconsistent with the Government’sframework for prudent and responsiblefinancial management and has againbeen independently reviewed by theAuditor-General.

The 2002-03 Budget takes the proceedsof Victoria’s strong economicperformance over the past two years andreinvests them to ensure all Victorianshave the opportunity to contribute andshare in the benefits of a thriving andinnovative Victorian economy.

It invests for our future, for the future ofour children, and the future of Victoria.

John Brumby MPTreasurer

Treasurer’s Message

The 2002-03 Budget invests for our future. It invests in more jobs, stronger communities – with record investment in education andinnovation driving new opportunities for all Victorians.


Overview

4

The Bracks Government’s vision for Victoria is thatby 2010 we will be a State where:

� innovation leads to thriving industriesgenerating high quality jobs;

� protecting the environment for futuregenerations is built into all governmentdecision making;

� there are caring, safe communities withequitable opportunities; and

� all Victorians have access to the highest quality health and education services allthrough their lives.

Growing Victoria Together identifies theimportant strategic issues and these have guidedbudget and policy choices in the 2002-03 Budget.The strategic issues of importance identified are:

� sound financial management;

� more jobs and thriving, innovative industriesacross Victoria;

� valuing and investing in lifelong education;

� high quality, accessible health and communityservices;

� safe streets, homes and workplaces;

� protecting the environment for futuregenerations and promoting sustainabledevelopment;

� growing and linking all of Victoria;

� building cohesive communities and reducinginequalities;

� promoting rights and respecting diversity; and

� government that listens and leads.

2002-03 Budget: Overview


5

Budget Highlights


Sound FinancialManagementThe Government’s financial strategy isto provide a sound and stable financialbase to promote growth across thewhole State. Only by providing a strongfinancial base is it possible to create jobsgrowth and deliver improved services.

A sound and stable financial baserequires the maintenance of asubstantial operating surplus andprudent levels of net financial liabilities.The 2002-03 Budget delivers:

� a substantial budget operatingsurplus of $522 million forecast for2002-03, and surpluses averagingaround $600 million for the followingthree years;

� the substantial operating surpluses andthe Growing Victoria infrastructurereserve funds a significantinfrastructure spending program;

� a reduction in general government netfinancial liabilities, excluding theGrowing Victoria infrastructure reserve,from $16.3 billion or 10.8 per cent ofGSP as at June 1999, to $15.9 billionor 7.1 per cent as at June 2006; and

� over the same period net debt,excluding Growing Victoriainfrastructure reserve, is expected tofall by more than half from $4.9 billionor 3.3 per cent of GSP in June 1999 to$2.3 billion or 1.0 per cent of GSP inJune 2006.

The Government's prudent financialmanagement was acknowledgedrecently with the international ratingsagencies, Standard and Poor’s andMoody’s, affirming Victoria’s triple-Along-term credit rating.

Investing for ourFutureInfrastructure

The strong themes of supportingsustainable economic growth andcommunity accessibility throughinfrastructure provision are continued inthe 2002-03 Budget. The 2002-03Budget boosts investment ininfrastructure assets by $3.0 billion totalestimated investment (TEI) – includingScoresby Freeway.

Other key projects included in the2002-03 Budget are:

� $101 million Royal MelbourneShowgrounds redevelopment;

� $100 million towards an Australiansynchrotron;

� $77 million towards the Wimmera-Mallee pipeline;

� $61 million Yarra Precinct ArtsIntegration project;

� $40 million residential aged carestrategy and rural healthredevelopment and upgradeprogram; and

� $32 million Royal Melbourne Hospitalredevelopment.

More specifically, total infrastructureinvestment announced in the budgetincludes:

� $1.3 billion for transport;

� $217 million for health andcommunity services.

� $216 million for education andtraining;

� $187 million for innovation;

� $81 million for justice and publicsafety; and

� $77 million for environment.

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Highlights

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Thriving and innovative industries across Victoria

The 2002-03 Budget focuses onenhancing Victoria as an innovativeeconomy by:

� positioning Victoria as a global playerin fields such as biotechnology,advanced manufacturing, design,information and communicationtechnologies (ICT), through initiativestotalling $139 million over four yearsin addition to $148 million TEI in assetinvestment. This includes the doublingof the current level of funding formedical research infrastructure andthe construction of Australia’s firstsynchrotron facility; and

� assisting Victorian business tobecome more innovative andcompetitive through BuildingTomorrow’s Businesses Today.This comprises $262 million insignificant business taxation reliefover the next four years and $63 million in output initiatives, inaddition to $39 million TEI in assetinvestment, aimed at improving theway that Victoria does business.

Valuing and investing in lifelongeducation

In the 2002-03 Budget a key priority isimproving access, driving innovationand excellence in education, frompreschool to post-compulsory years.The Government has allocated $334 million over four years in outputinitiatives in addition to assetinvestment of $216 million TEI to:

� support learning in the early years ofschooling by reducing the averageclass size in prep to year 2 andthrough the implementation of anearly years numeracy program;

� improving participation andachievement in education through anew Access to Excellence initiative anda Middle Years Reform andInnovations program;

� addressing equity and access issues byfunding additional Koori educatorsand home liaison officers to provideeducation services and support toKoori students; and

� putting at least 900 additionalteachers into schools across Victoria.

Ensuring high quality, accessiblehealth and community services

The 2002-03 Budget aims to turnaround Victoria’s health system withbetter facilities, new approaches andmore health workers to give Victoriansthe highest quality of care.

In this budget the Government hascommitted $1.2 billion over four yearsin output initiatives in addition to assetinvestment of $217 million TEI to:

� build, improve and integratehospitals and community healthservices;

� link and invest in services forchildren;

� support older people to live activelives; and

� tackle health issues linked toinequality through programs torespond to the growing need forcommunity and home-baseddisability support services and byimproving housing services forpeople in need.


Highlights

Creating safe streets, homes and workplaces

In the 2002-03 Budget, the Governmenthas committed $81 million TEI to assetinvestment as well as $34 million for newinitiatives over four years to preventcrime and maintain community safety by:

� enhancing police services by providingpolice with upgraded equipment, andmodernising metropolitan and ruralpolice stations;

� ensuring a seamless transition ofemergency call taking and dispatchservices and implementation of theStatewide Integrated Public SafetyCommunication Strategy; and

� improving the safety of all Victorianroad and transport users.

Promoting sustainabledevelopment and protecting theenvironment for future generations

In the 2002-03 Budget the Governmentis allocating funds of $130 million overfour years for output initiatives and $77 million TEI for asset investmentspecifically designed to value andprotect Victoria’s water, forest and landresources by:

� providing more secure and higherquality water supply;

� the construction of the Wimmera-Mallee pipeline;

� ensuring the long-term future ofVictorian forests and regionalcommunities; and

� supporting the sustainablemanagement of Victoria’sagricultural land and ski fields.

Building cohesive communities andreducing inequalities

The Government in the 2002-03Budget has committed funds forinitiatives which will generate morejobs, strengthen our communities andcreate new opportunities.

The budget will allocate:

� $12 million to progress theGovernment’s vision of achievingreconciliation between indigenousand non-indigenous Victorians; and

� $192 million to initiatives which willmake communities better places to liveand work. This includes redevelopmentof the Royal Melbourne Showgrounds,enhancing the cultural assets ofVictoria and developing state-of-the-artfacilities ahead of the 2006Commonwealth Games.

Promoting rights and respecting diversity

The Government recognises that thediverse cultural backgrounds,languages and abilities of Victorians aresome of the State’s greatest strengths.

The 2002-03 Budget builds on theGovernment’s commitment to supportand enhance the role of the VictorianMulticultural Commission through thecontinuation and expansion of thecurrent community grants program.

The Government has committed $8.3 million to improve access to legalaid, victim support and alternativeresolution procedures.


Highlights

The Victorian economy has proved itsresilience over the past 12 months –weathering the storm of weaker globaleconomic conditions. Over the period,the Victorian economy has exceededthe national average in the keymeasures of consumer spending,business investment and employment.Domestic demand rebounded stronglyover calendar 2001, particularly in thesecond half, underpinned by consumerspending, government capitalexpenditure and an acceleration inhousing construction.

The Victorian labour market recordedfurther solid gains following on from itsexceptionally strong employmentgrowth in 2000-01. The unemploymentrate is below the Australian average.

Recent evidence of a global recovery ispositive for the 2002-03 outlook.

Victorian economic growth is nowestimated at 3.75 per cent in 2001-02,exceeding the original budget estimateof 2.75 per cent, and 3.5 per cent in2002-03.

Employment is forecast to grow 1.5 per cent in 2002-03, following1.25 per cent in 2001-02.

Private business investment grew in 2001,in contrast to a national decline.

Inflation is well down from its peakfollowing the introduction of the GSTand is in line with the national increase.

Wage growth is forecast to remainrestrained at 3.50 per cent throughoutthe outlook period.

A Growing Economy – Victoria Leads the Way

The Victorian economy performed strongly over the past year,exceeding the national average in key measures such as consumerspending, business investment and employment.


Leading in Key Measures

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Economic growth 2.4 3.75 3.50 3.50 3.50 3.50

Employment growth 3.5 1.25 1.50 1.50 1.50 1.50

Unemployment rate 6.0 6.25 6.00 6.00 5.75 5.50

Inflation 6.0 2.75 2.25 2.25 2.25 2.25

Wages growth 3.4 3.75 3.50 3.50 3.50 3.50

Victorian economic projections (%)

Actual Forecast Forecast Projection Projection Projection2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Leading the Way

Where the money comes from

Total revenue of $25 282 million isprojected for 2002-03, representing a$275 million (or 1.1 per cent) increaseon the 2001-02 revised estimate. Thismoderate increase reflects:

� low growth in taxation revenue (0.5 per cent) due mainly to:

– moderation in property marketactivity;

– the full-year effect of theGovernment’s 2001-02 tax reforminitiatives announced under theBetter Business Taxes packagecombined with the $83 million ofbusiness tax relief measuresprovided in 2002-03; and

– the full-year effect of the abolitionof financial institutions duty andstamp duty on quoted marketablesecurities from 1 July 2001.

� total Commonwealth grantsremaining largely unchanged,because of a reduction in Victoria'sshare of the grant pool, a reductionin Commonwealth first home ownergrant payments, and theCommonwealth’s decision tounilaterally withdraw $134 million offunding in 2002-03 from the Statesand Territories.

Where the money goes

Total expenses are expected to rise to$24 760 million in 2002-03 representingan increase of $519 million (2.1 per cent)on the revised 2001-02 estimate. This isdue largely to additional fundingassociated with implementing newoutput initiatives including:

� 2002-03 Budget output initiatives of$317 million;

� output initiatives of $161 millionpreviously announced in the 2001-02Budget Update;

� the full-year impact of outputinitiatives announced in the 2001-02Budget ($47 million); and

� an increase in depreciation expense($57 million), reflecting the combinedimpact of revaluation of existing assetsand the substantial boost toinfrastructure provided by the BracksGovernment since the 2001-02 Budget.

Budget at a Glance


Revenue 2002-03

Expenses 2002-03

37%Taxes, fees and fines

46%Commonwealth grants

4%Other revenue

8%Sale of goods and services

4%Investment income

17%Other

26%Education

34%Human Services

3%Natural Resources and Environment

8%Justice

12%Infrastructure

Revenue/Expenses

Total revenue $25 282 million

Total expenses $24 760 million

10

In Growing Victoria Together theGovernment identified the followingpriority infrastructure actions:

� building fast, reliable and efficienttransport and communicationsinfrastructure;

� better linking Melbourne and regionalports to industry and agriculturalcentres across Victoria; and

� connecting more Victorians to theinternet and other new technologies.

In addition, the Government is aiming torebuild and modernise the State’s socialinfrastructure including schools, hospitals,prisons, police stations, communityservices and recreational and culturalresources – the building blocks of astrong, prosperous and equitable society.

The strong themes of supportingsustainable economic growth andcommunity accessibility throughinfrastructure provision are continuedin the 2002-03 Budget. The 2002-03Budget commits $3.0 billion TEI toboost infrastructure assets. Thisincludes a $445 million contributiontowards the Scoresby Freeway from theCommonwealth Government.

This infrastructure spending includes:

� $1.3 billion for transport;

� $217 million for health andcommunity services;

� $216 million for education;

� $187 million for innovation;

� $81 million for justice and publicsafety; and

� $77 million for environment.

Over the period 2002-03 to 2005-06annual expenditure on fixed assets willaverage $2.2 billion. This increased levelof expenditure will result in growth ofreal capital stock over the four years toJune 2006 of over 11 per cent, faroutstripping projected populationgrowth of around 4 per cent.

Building Victoria’s Infrastructure


The 2002-03 Budgetboosts investmentin infrastructureassets by $3 billion(TEI) – includingScoresby Freeway.

General Government Sector Net Asset Investment

Boosting Victoria’s Infrastructure

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Building Infrastructure

A key priority for the Bracks Governmentover the past two years has beenupgrading Victoria’s road and railtransport system including the provisionof funding for standardising rail gauges,reintroducing country passenger railservices and introducing regional fast railbetween regional centres.

Better links for regional Victoria

The 2002-03 Budget provides a majorboost for transport services for regionalVictoria continuing the Government’scommitment to modernising andrestoring transport services in rural andregional communities.

Initiatives funded in 2002-03 include:

� $70 million TEI for the Calder Highway,between Kyneton and Faraday;

� $15 million TEI to improve the safetyand efficiency of the road networkincluding:

– $5.6 million TEI to perform capitalworks along the Henty Highwaybetween Heywood and Cherrypool;

– $4.2 million TEI for Bayside Road inGeelong;

– $3 million TEI to conduct furtherworks along the Henty Highwaybetween Cherrypool and south ofMcKenzies;

– $2 million TEI to make safetyimprovements along theMaroondah Highway betweenHealesville and Narbethong;

– $500 000 to widen the WallanOverpass to facilitate the safepassage of cyclists and pedestriansfrom the township of Wallan overthe Hume Freeway to the railwaystation at East Wallan; and

� other funding initiatives to better linkrural and regional Victoria including:

– $9 million TEI to upgrade theWarrnambool rail line; and

– $7.8 million over four years for 27new and improved bus services inregional Victoria.

Linking the suburbs

The 2002-03 Budget will provide betterlinks between suburban communitiesthrough better access to public transportservices and safer roads including:

� construction of the Scoresby Freeway;

� electrification of the rail line fromBroadmeadows to Craigieburn toextend frequent metropolitan trainservices to growth suburbs such asRoxburgh Park and Craigieburn ($98 million TEI and $7.2 million inoperating costs from 2005-06);

� extension of tram route 75 toVermont South and an enhanced busservice from there to Knox ActivityCentre (stage one of Knox tramextension) – $31 million TEI and $12 million in operating costs overthe next four years;

� upgrading key arterial suburbanroads ($62 million TEI) includingNarre Warren-Cranbourne Road inNarre Warren, Frankston-CranbourneRoad in Langwarrin, Fitzgerald Roadin Laverton, Macedon Street Bridge inSunbury and Edgars Road in Epping;

� a massive boost to suburban busservices, including 25 new orupgraded bus routes aroundMelbourne ($36 million in operatingcosts over four years); and

� upgrading of pedestrian rail levelcrossings ($13 million TEI).

Planning for the future

The 2002-03 Budget also provides afocus on planning for the futurethrough the Government’s Transit Citiesand Yarra Plan initiatives.

Key initiatives include:

� $6.5 million TEI to build on theTransit Cities schemes for urbanconsolidation; and

� $7 million TEI for the redevelopmentof Sandridge Bridge andQueensbridge Square as part of theYarra Plan.

Development of Victoria’s ports

The 2002-03 Budget also provides a$10.3 million TEI package for:

� $5.1 million to establish a dual-gaugerail access to Lascelles Wharf at thePort of Geelong; and

� $5.2 million to support a detailedfeasibility investigation into channeldeepening in Port Phillip Bay.

Growing and Linking all of Victoria

Fast, reliable and efficient transport and communicationsinfrastructure is essential to link and connect our people, our communities and our businesses.



Loddon/Mallee

Central Highlands/Wimmera

Barwon/Western District

Barwon/Western District– Warrnambool rail line upgrade and Lascelles Wharf rail

connection

– Linking rural economies – Henty Highway and Bayside Roadupgrades

– Redevelopment of Lorne Hospital

– Three police station replacements – Cressy, Macarthur andSmythesdale

– Major modernisation and upgrading of 14 schools acrossthe region including a new school at Lara and a majorschool redevelopment on the Bellarine Peninsula

– Rural ambulance co-locations with health services in Colac

Central Highlands/Wimmera– Wimmera-Mallee pipeline

– Henty Highway upgrade between Cherrypool and south ofMcKenzies

– Two police station replacements at Beaufort and Gordon

– Stawell District Hospital redevelopment

– Major modernisation and upgrading of five schools acrossthe region

– Horsham Court upgrade

– Rural ambulance co-locations with health services in Araratand Hopetoun

Statewide– Infrastructure and medical equipment upgrade for health services,

dental health facilities and public health laboratories

– Ambulance service facilities development

– Massive school infrastructure program across Victoria including 15 new or replacement schools and 98 modernisation and upgrades

– Upgraded preschool facilities

– Commonwealth Games facility developments

Major new asset investmentswill commence in all regions of the State in 2002-03, as illustrated.

A Budget for all Victorians – Key Highlights

Gippsland

Goulburn/Ovens Murray

Melbourne


Gippsland– Centre for Energy and Greenhouse Technologies

– Two police station replacements at Bendoc and Bunyip

– DNRE office replacement

– Major modernisation and upgrading of ten schools across the region including a new specialist school at Bairnsdale

– Health and aged care facility upgrades in Omeo and Bairnsdale

Goulburn/Ovens-Murray– Linking rural economies – Maroondah Highway upgrade

and Wallan overpass

– Major modernisation and upgrading of seven schools across the region

– Court upgrade at Wangaratta

– TAFE facilities upgrade at Wodonga

– Police station replacement at Whitfield

– Beechworth Hospital and Nursing Home upgrade

Loddon/Mallee– Wimmera-Mallee pipeline

– Duplication of Calder Highway between Kyneton and Faraday

– Establishing Maryborough Education Precinct

– Major modernisation and upgrading of four schools across the region

– Four police station replacements at Inglewood, Merbein, Pyramid Hill and Tarnagulla

– Court upgrade at Bendigo

– Rural ambulance co-locations with health services in Kyneton

Melbourne’s Suburbs– Scoresby Freeway

– Upgraded roadworks including Macedon Street Bridge, Edgars Road, Fitzgerald Road,Narre Warren-Cranbourne Road and Frankston-Cranbourne Road

– Rail electrification to Craigieburn and Knox Tram extension to Vermont South

– Angliss, Dandenong and Royal Melbourne Hospital redevelopments

– New schools and modernisations across Melbourne

– New police stations at Coburg and Footscray

– Royal Melbourne Showgrounds redevelopment

– Melbourne Sports and Aquatic Centre redevelopment

The Government recognises thatinnovation and new technologies arekey drivers of economic and jobsgrowth. Key initiatives in the 2002-03Budget will assist Victorian businessand industry to become moreinnovative and competitive, supportnew industries and boost exports.

The Government’s Building Tomorrow’sBusinesses Today policy, announced on 22 April 2002, delivers a package ofmajor initiatives to grow businesses andnew jobs. It delivers the strategicdirection, resources and on-the-groundsupport to give Victoria:

� a highly competitive, friction-freebusiness environment;

� more innovative business andinnovative economy;

� a strong international focus;

� strong business linkages and networks;

� a sustained performance in startingand growing new business; and

� productive and cooperative workplaces.

Creating a more competitive

business environment

The Government’s strong financialposition enables further cuts in businesstaxes of $262 million to 2005-06,providing an additional boost to jobsand growth in Victoria by:

� increasing the payroll tax thresholdfrom $515 000 to $550 000 from 1July 2002, a year ahead of schedule;

� reducing the payroll tax rate from5.45 per cent to 5.35 per cent from 1 July 2002, a year ahead of schedule;

� further reducing the payroll tax ratefrom 5.35 per cent to 5.25 per centfrom 1 July 2003. The payroll taxinitiatives will further stimulatebusiness growth and employmentand represent a 9 per cent reductionin the payroll tax rate under theBracks Government;

� increasing the land tax thresholdfrom $125 000 to $150 000; and

� abolishing stamp duty on unquotedmarketable securities from 1 July2002, a year earlier than scheduled.

In total, across Better Business Taxesand Building Tomorrow’s BusinessesToday, the Government has announcedtax cuts of over $1 billion in its firstterm of office.

Cutting red tape

$27 million for building partnershipsbetween government and businessthrough initiatives such as the landexchange and EASY Government whichwill be used across government to cutpaperwork, simplify reporting andprovide rapid access to information.

Exports and innovation

$8 million to provide a range ofprograms for Victorian firms seeking toexpand internationally. In addition, $5.2 million for investigating thefeasibility of channel deepening in Port Phillip Bay.

Connecting markets and industries

$6 million in initiatives that connectmarkets and industries and help developnetworks and clusters.

The agenda for new manufacturing

$27 million to encourage the growth ofthe manufacturing industry and tocreate high-value manufacturingemployment in Victoria.

Tourism

$18 million for new opportunities intourism, including $10 million from theRegional Infrastructure DevelopmentFund to support new tourismdevelopments in regional areas.

Agriculture and regional industries

$26 million to promote innovation,improve skills and business management,tackle disease and boost exports in thefood and fibre industries.

Significant funds are provided to improveaccess for regional exporters to the Portof Geelong as well as $77 million towardsthe new Wimmera-Mallee pipeline.

$11 million to build on theGovernment’s existing regionaldevelopment programs to grow thewhole State.

Thriving and Innovative Industries Across Victoria



Innovation is the 21st Century driver ofeconomic growth, high quality jobs,wealth and improved living standards.

Growing Victoria Together sets out as apriority the creation of new jobs bypromoting new ideas and technologies.

The Government recognises the key roleit plays in ensuring Victoria has globallycompetitive industries and sustainablehigh-value jobs.

The Government is committing $139 million in new output initiativesover four years, as well as $148 millionTEI in asset investment, to positionVictoria as a global player in fields suchas biotechnology, advancedmanufacturing, design, informationand communication technologies (ICT),and environmental technologies.

Innovation and new technologies notonly transform existing industries butalso create the industries of the future.

Key initiatives in the 2002-03 Budgettarget these industries and assist Victorianbusiness become more innovative andcompetitive. These include:

�� $100 million towards the constructionof a $157 million synchrotron facilityto provide Victoria with a nationalplatform for ground breakingresearch. $2.9 million per annum hasbeen committed to project managethe construction of the facility;

� $27 million over four years toimplement the BiotechnologyStrategic Development Plan;

� $6.7 million over four years tosupport new technologycommercialisation activities, includingthe Centre for Innovation andTechnology Commercialisation;

� $35 million over four years to boostoperational infrastructure support toVictoria’s health and medicalresearch institutes;

� $12 million over three years toestablish the Centre for Energy andGreenhouse Technologies to advanceenergy efficiency and greenhousereducing technologies;

� $9.2 million over two years to furtherboost Victoria’s design capabilitiesand position Victoria as aninternational centre of design; and

� $48 million TEI over the next fouryears for the TelecommunicationsPurchasing and ManagementStrategy (TPAMS) which willstreamline and modernise theGovernment’s telecommunicationinfrastructure and service provision.

In addition, to drive the innovationagenda, the Government recentlycreated a new portfolio of Innovationand established the Department ofInnovation, Industry and RegionalDevelopment, including a new Office of Innovation.

- Synchrotron

- Biotechnology

- Commercialisation

- Medical Research

- Design

- EnvironmentalTechnologies

- ICT

Turning good ideas into goodbusinesses, in order to grow new jobsand opportunities, is a key component of a successful innovative economy. – Driving Innovation

Innovative Industries

16

Access to world-class, lifelongeducation is the key to our children’sfuture, Victoria’s prosperity and thesuccess of an innovative economy.Education and training open the doorto high quality jobs, to a full andcreative life and a sense of commoncitizenship.

Growing Victoria Together underpinsthe Government’s commitment toeducation as its top priority. Thatcommitment is reinforced by the recordinvestment in education and trainingmade by the Government in its previoustwo budgets.

The 2002-03 Budget continues toensure that Victoria’s preschoolservices, schools and TAFE instituteshave the people, resources, communitylinks and technology that they need toachieve excellence, create excitinglearning environments, boost studentparticipation and achievement, andimprove opportunities for all Victorians.

The priority initiatives targeted in the2002-03 Budget are focused onachieving the Government’s goals andtargets, specifically:

� $27 million over four years to improvethe health, development, learning andwellbeing of children before they startschool through reforms to preschoolsand a new BEST START initiative;

� $334 million over four years toprovide better access to educationexcellence and to build on solidfoundations already laid in publiceducation in Victoria, including:

– $78 million over four years tosupport learning, meet higherenrolment growth and improveliteracy and numeracy in the earlyyears of schooling;

– $82 million over four years for anew Access to Excellence initiative,which ensures all schools acrossthe State are meeting the needs ofyoung Victorians. In 2002-03 anadditional 300 teachers will beplaced in about 100 secondaryschools experiencing higherabsentee rates and lower literacyand numeracy skills;

– $84 million over four years for anew Middle Years Reform andInnovation Program initiative. Thiswill provide grants to a total of250 clusters of primary andsecondary schools;

– $48 million over four years towardsthe statewide roll-out of the newVictorian Certificate of AppliedLearning (VCAL) into more schoolsacross Victoria;

– $31 million funding boost over fouryears to make Victoria’s school busservice fairer, safer and moreaccessible for all students;

– $3.6 million over four years for anadditional 15 Koori educators and6 Koori home liaison officers; and

– $8 million over four years tocontinue the youth Freeza eventsprogram.

The 2002-03 Budget will provide atleast an additional 900 teachers acrossVictoria in government schools.

In addition, the 2002-03 Budgetprovides a $216 million buildingprogram for more than 110 Victorianschools and TAFE institutes across theState. Facilities will be completelyrebuilt or refurbished, providingmodern, energy efficient teachingspaces for science, computers andtechnologies, libraries and classrooms.

Improving access and driving innovationand excellence in education, from preschoolto post-compulsory education is theGovernment’s top priority.

Valuing and Investing inLifelong Education

– Innovation, Access andExcellence


Innovation, Access and Excellence


Lifelong Education

The Bracks Government recognises theimportance of access by all Victoriansto high quality services. Delivering highquality, accessible health andcommunity services is one of thehighest priorities under GrowingVictoria Together.

Enhancing hospitals and health

services

The rebuilding of Victoria’s public healthwill continue, with funding provided totreat more patients, employ more nursesand tackle hospital waiting lists.

In 2002-03 the Government extends themulti-year Hospital DemandManagement Strategy with $464 millionover four years focused on emergencyservices and elective surgery. This willprovide for more beds to treat extrapatients, including 34 000 patients inhospital emergency departments and 14 000 extra elective surgery, renal,palliative care and radiotherapy patients.

In addition, hospitals will receive $169 million over four years to assist infunding superannuation and medicalsupply costs.

The 2002-03 Budget also provides for:

� $61 million to expand communityand hospital based mental healthservices and to open more mentalhealth hospital beds across Victoria;

� $14 million over four years to expanddental health services, breastscreening and women’s healthinitiatives;

� $29 million over four years for Homeand Community Care Services tosupport people, particularly the frailand elderly, to continue living activelives in their own homes; and

� $20 million over four years to boostambulance services and employ 43 additional paramedics acrossMelbourne and regional Victoria.

Ensuring High Quality, Accessible Health and Community Services

This budgetcontinues to turnaround Victoria’shealth system withbetter facilities, newapproaches andmore health workersto give Victoriansthe highest qualityof care.


Health and Community Services


Investing in better hospital facilities

The 2002-03 Budget continuesrebuilding Victoria’s public healthsystem with significant investment innew hospital, medical equipment,upgrades and redevelopments.

Key initiatives include:

� an additional $25 million in 2001-02and $20 million in 2002-03 formedical equipment includingintensive care ventilators, mobile x-rayunits, electronic adjustable beds andother equipment;

� $20 million investment to upgradecritical hospital plant infrastructure;

� $32 million to redevelop the RoyalMelbourne Hospital, includingreplacement and fit out of wards toprovide 120 beds and installation ofa helipad to further develop thetrauma service;

� $19 million for the Angliss Hospitalincluding a new and expandedemergency department and criticalcare/high dependency unit;

� $10 million to expand and refurbishDandenong Hospital;

� $40 million to continue theredevelopment and upgrade of ruralhealth and public sector residentialaged care facilities;

� $6 million for further redevelopmentof Stawell Hospital to enhanceoperating theatres, the radiology unitand emergency services and for theredevelopment of the LorneCommunity Hospital;

� $10 million for fire safety works; and

� $4.8 million to upgrade ambulancestations and facilities including co-location with other health servicesin Kyneton, Ararat, Colac andHopetoun.

Investing in improved community

services

The 2002-03 Budget delivers asubstantial investment to help buildstronger communities throughenhancing community services, with anemphasis this year on families, children,people with a disability, older people andhomeless people. Key initiatives include:

� $60 million over four years for a newapproach to the delivery of childprotection and placement services.This initiative will enhance the childprotection workforce by easing theworkload on direct line staff andbuilding a stronger system;

� $5 million TEI in upgrades toresidential care facilities across Victoria;

� $20 million package over four yearsfor increased demand for communityand home-based disability servicesand the Futures for Young Adultsprogram;

� $25 million over four years as thefirst stage of redevelopment of theKew Residential Services. The firststage will provide for 100 people tobe relocated from Kew ResidentialServices into new communityresidential units;

� $10 million TEI to assist people witha disability to live in the community;

� $15 million TEI to redevelop juvenilejustice facilities, includingreplacement of the existing SeniorYouth Training facility (Turana); and

� $8.8 million over four years towardstackling homelessness.

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The Government is committed topreventing crime and maintainingcommunity safety whether in publicplaces, roads, homes or workplaces.This requires highly skilled, well-resourcedpolice and emergency services, respectfor the rights of all citizens andcohesive communities.

Police

The Bracks Government is very proud ofits achievement to provide 800additional frontline police. Victorianpolice numbers are now well over the10 000 mark. In 2000 Victoria had thelowest proportion of victims of crimeagainst both property and persons of allthe States.

In addition to the critical boost to policenumbers, the Government has providednew stations and equipment to helppolice in their fight against crime. SinceOctober 1999, 20 new stations havebeen approved for construction in themetropolitan area and major regionalcentres and 31 country police stationsare underway.

A further $21 million is provided forreplacement police stations in Footscrayand Coburg.

The 2002-03 Budget provides a further$5 million for the replacement of 12police stations in smaller country townsacross Victoria.

Emergency communications services

Initiatives in the 2002-03 Budget alsoenhance the responsiveness of policeand emergency services, includingfunding of more than $50 million toensure a seamless transition ofemergency call taking and dispatchservices.

Funding is also being provided for theongoing management of a number ofemergency service telecommunicationsprojects. The additional resources willstrengthen the capacity of governmentto deliver efficient and reliablecommunication services to Victoria'semergency services organisations. TheStatewide Integrated Public SafetyCommunications Strategy is a ten-yearstrategy to ensure Victoria's emergencyservices organisations are equippedwith robust and appropriatecommunications equipment.

Road safety

Improving the safety of all Victorianroad and transport users is a keyobjective of Growing Victoria Together.In the 2002-03 Budget the Governmenthas committed a record amount toimproving transport infrastructure aswell as $11 million to reducing deathand serious injury from road accidentsby 20 per cent over five years.

Improving safety andconfidence in placesVictorians live andwork is one of theGovernment’spriorities in GrowingVictoria Together.

Creating Safe Streets,Homes and Workplaces


Safe Streets, Homes and Workplaces

The Bracks Government is committedto a better quality of life for currentand future generations, by ensuring oureconomy, our society and ourenvironment are developed in a balanced way.

In the 2002-03 Budget the Governmentis continuing to protect our preciousenvironment in order to maintain ourhealthy, diverse and enjoyable national,state and metropolitan parks, rivers,catchments and coastal and marineenvironments.

Key initiatives in the 2002-03 Budgetare designed to value and protectVictoria’s resources, particularly forests,water and land.

Valuing our forests

In protecting our forest resources theGovernment has committed $80 millionto Our Forests, Our Future. Thispackage will ensure the long-termfuture of our forests and regionalcommunities. It comprises a newtimber licensing and pricing system anda statewide assistance program andnew institutional arrangements.

In addition, the budget will include a$21 million package over four years forBox-Ironbark forests and woodlands.This package includes a structuraladjustment package for affected Box-Ironbark forest industry workersand businesses, and establishmentcosts for parks, state forests and reserves.

Valuing our water resources

The 2002-03 Budget provides fundingto the construction of the Wimmera-Mallee pipeline project. TheGovernment has allocated $77 million,subject to the Commonwealth

committing to its share of the fundingand the detailed design for the projectconfirming its feasibility. The projectwill see 17 500 kilometres of ageingand inefficient open channels –stretching from the Grampians to theMurray – converted to piping.

Other initiatives include:

� $26 million (including $15 million in2001-02) will be provided to improvethe health of Victoria’s preciousrivers, including the Murray River;

� $4 million will be allocated for damsafety improvements; and

� $13 million over four years for thecontinuation of the Government’sGippsland Lakes rescue package.

Valuing our land resources

The 2002-03 Budget also invests in thesustainable management of Victoria’sagricultural land and ski fields, including:

� $6 million over four years toimplement the Government’s visionfor Second Generation Landcare;

� $4 million over four years forimproving risk management of ouralpine resorts; and

� $3 million over three years for astatewide fox eradication program.

Sustaining our environment

The 2002-03 Budget also provides $12 million for a Centre for Energy and Greenhouse Technologies. TheCentre will facilitate research anddevelopment into cutting edgesustainable energy technologies. Inaddition, $2.8 million is providedtowards the Cooperative ResearchCentre for Clean Power from Lignite.

Promoting SustainableDevelopment and Protectingthe Environment for Future Generations


Key initiatives aredesigned to valueand protect Victoria’sresources.

Environment

Building Cohesive Communities and Reducing Inequalities

The Government has committed funding for projects whichwill generate more jobs, strengthen our communities andcreate new opportunities.


The 2002-03 Budget aims to strengthencommunities to ensure that there issupport for families, job opportunitiesand improved access to affordable, highquality services.

Reducing inequalities and

strengthening communities

The 2002-03 Budget delivers a whole-of-government commitment tostrengthen the capacity of the Kooricommunity to deliver real improvementsin economic and social wellbeing.

The Government is providing $12 millionover four years and $1.9 million ongoingto target areas of indigenousdisadvantage, and will progressreconciliation between indigenous andnon-indigenous Victorians. The packageincludes funding for:

� development and implementation ofa community-led indigenous familyviolence strategy;

� initiatives to assist members of thestolen generation; and

� provision of additional fundingsupport to local indigenouscommunity organisations.

The Government is also committed toreducing inequalities with an emphasison vulnerable groups and those most in

need. Funding of $8.8 million over fouryears will strengthen the capacity of thehomeless services system to respond tothe complex needs of homeless people,strengthen services for the victims offamily and domestic violence, andprovide support for people in privaterental housing.

In addition, measures in this budget willexpand the supply of public housingand make housing more affordable. Atleast an extra 1500 public andcommunity housing units will becreated and $12 million is providedfrom the Office of Housing forneighbourhood renewal projects acrossthe State. The budget also allocates $13 million in 2002-03 to reform,streamline and expand concessionalarrangements to enable more Victorianfamilies and people on low incomes topurchase their own homes.

Better places to live and work

In the 2002-03 Budget the Governmentwill commit $101 million for theredevelopment of the Royal MelbourneShowgrounds. The redevelopment willprovide significant economic benefitsfor Victoria, particularly rural andregional areas of the State.

The 2002-03 Budget also provides foran injection of $84 million intoVictorian sport with a focus ondeveloping state-of-the-art facilitiesahead of the 2006 CommonwealthGames, including the contribution of:

� up to $50 million, including $7 million in 2002-03, for theredevelopment of the MelbourneSports and Aquatic Centre. Theredevelopment will involve theconstruction of a 12 000 seatcapacity competition pool as well ascar parking and leisure waterfacilities; and

� $10.4 million in 2002-03 to theMelbourne 2006 CommonwealthGames Organising Committee tocontinue the detailed planning andcoordination of the Games.

The budget provides $106 millionboost for arts and cultural projects,including:

� $24 million over four years for newexhibitions and maintenance of statecollections for the MelbourneMuseum, State Library, HeideMuseum of Modern Art and theMalthouse Plaza complex; and

� $61 million over five years for theYarra Precinct Arts Integration project.

Building Communities

The 2002-03 Budget builds on theGovernment’s commitment to supportand enhance the role of the VictorianMulticultural Commission through thecontinuation and expansion of thecurrent community grants program.The program provides support to ethnicand community-based organisations foractivities and projects that support theState’s culturally and linguisticallydiverse communities.

In addition, a number of new initiativeswill be introduced in 2002-03 toimprove access to services for culturallyand linguistically diverse Victorians. TheVictorian Office of Multicultural Affairs,in consultation with governmentdepartments, will be implementing anumber of innovations andimprovements to the quality andprovision of interpreting services forVictorians accessing governmentservices. A particular emphasis of thestrategy will be on improving languageservices for rural and regionalcommunities.

The Government has provided $8.3 million in funding to progress anumber of new initiatives in order toimprove legal aid, victim support anddispute resolution services to develop astrategically integrated vision for theVictorian justice system and to buildfaster, better and more accessiblecommunication links.

Promoting Rights and Respecting Diversity

The Victorian Government recognises that the diverse culturalbackgrounds, languages and abilities of Victorians are some of theState’s greatest strengths.


Respecting Diversity

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The 2002-03 Budget provides a majorfunding boost to improve the ICTinterface between government and thecommunity and build the capacity ofthe public sector to manageknowledge, communications andinformation. Key initiatives include:

� $48 million TEI and $29 million tosupport operations over four yearsthrough the TelecommunicationsPurchasing and ManagementStrategy (TPAMS) to streamline theGovernment’s telecommunicationsservice and establish a whole-of-government electronic directory;

� a substantial investment to improvecommunications systems foremergency services across Victoria,including funding for a Mobile DataNetwork Project to equip emergencyservice vehicles with data terminals, astatewide Personnel Alerting Systemto provide pagers to emergencyservices across the State, and for theMetropolitan Mobile Radio project.Funding will be determined uponappointment of successful tenders;

� $8.2 million for the VictorianElectronic Records Strategy, includingan Electronic Records Centre ofExcellence, to ensure important digitalinformation is securely managed andaccessible in the long term;

� $2 million for a range of EASYGovernment initiatives announced inBuilding Tomorrow’s BusinessesToday, to transform the waybusinesses interact with theGovernment; and

� $24 million TEI for a new electronicLand Exchange, announced inBuilding Tomorrow’s BusinessesToday, providing business with asingle point of access to state andlocal government land informationand transactions.

These initiatives will contribute toVictoria’s growing status as aninternational leader in themodernisation of government.

The Government iscontinuing to lead the way in its uptakeand application of ICT and themodernisation ofpublic and communityservice delivery.

Modernising Government


Modernising Government

Growing Victoria Together

2002-03 Victorian Budget Overviewwww.budget.vic.gov.au

2002-03 victorian budget overview growing victoria ......growing and linking all of victoria 11 ......

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