MINISTER’S EXECUTIVE SUMMARY | 13
Table 4 shows increases in capital spending by functional category. As can be seen, the
net new spending matches the capital allowance of $1.45 billion.
Table 4 – New capital initiatives by functional class
$ million, June years
2009/10
2010/11
2011/12
2012/13
2013/14
Total
Economic Development
-
38
38
5
1
81
Education
-
206
61
59
71
397
Government Administration
7
112
(34)
-
10
96
Health
4
4
105
30
3
146
Infrastructure
3
491
57
189
217
957
Law and Order
-
14
1
3
-
18
Research, Science and Technology
-
-
-
-
-
-
Social Services
-
21
-
2
3
26
Reprioritisation of Baselines
(75)
(266)
(125)
(121)
(130)
(718)
Contingency
-
185
94
86
83
447
Total Budget 2010 Initiatives
(61)
805
196
253
258
1,450
Note: Reprioritisation of Baselines includes an operating to capital swap and technical adjustments for a
small number of items which are offset by separate revenue streams or where savings can only be
partially utilised.
Finding new and innovative ways to deliver services
Funding has been set aside for the Corrections service to increase prison capacity. This
may be delivered via a Public Private Partnership, though that will happen only if the
whole-of-life cost is materially lower and the service demonstrably better than the
conventional procurement alternative.
These types of procurement arrangements are well established, with a long track record
of success in many Western nations, including every state in Australia. Better service
delivery presents the Government with options about where the capital saved can be
better deployed in public use.
Reduction in future capital allowances to fund Weathertight Homes solution
The Government is considering a new
approach to resolving weathertight
homes issues in discussion with
territorial local authorities. The
Government considers it prudent to set
aside a contribution as it expects the
solution to involve a Crown
contribution. This contribution would
need to be managed within the
prudent fiscal strategy. As such, we
have indicatively reduced the next four
years’ capital allowances in order to
reflect a partial source of funding for
any contribution.
The effect of this decision is to reduce the Budget 2011 and Budget 2012 allowances from
$1.45 billion to $1.39 billion; and the Budget 2013 and Budget 2014 allowances from
$1.65 billion to $1.39 billion (Figure 8).
Figure 8 – Future capital allowances
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
B00 B01 B02 B03 B04 B05 B06 B07 B08 B09 B10 B11 B12 B13 B14 B15
$ billion
Past New Capital Spending
Capital Allowances in 2009 BPS
Future Capital Allowances
Source: The Treasury
