4.3.8 MINISTER FOR THE ENVIRONMENT OVERVIEW Agency Forecast Estimate 1997-98 1998-99 Variation $m $m % Total Expenses ........................................................ 103.0 130.2 26.4 Asset Acquisitions .................................................... 4.1 3.6 (-) 12.9 Total Expenses ........................................................ 193.9 208.4 7.5 Asset Acquisitions .................................................... 41.1 64.3 56.5 Total Expenses ........................................................ 23.0 25.8 12.1 Asset Acquisitions .................................................... 2.3 5.3 133.3 Total Expenses ........................................................ 9.5 11.1 16.6 Asset Acquisitions .................................................... 18.5 19.5 5.5 Total Expenses ........................................................ 2.9 3.6 26.1 Asset Acquisitions .................................................... 1.6 5.6 256.3 Total Expenses ........................................................ 3.7 3.1 (-) 15.3 Asset Acquisitions .................................................... ... ... ... Total Expenses ........................................................ 7.0 5.9 (-) 15.9 Asset Acquisitions .................................................... … … ... Environment Protection Authority National Parks and Wildlife Service Royal Botanic Gardens and Domain Trust Centennial Park and Moore Park Trust Bicentennial Park Trust Environmental Education Trust Environmental Research Trust Environmental Restoration and Rehabilitation Trust 4 - 134 Total Expenses ........................................................ 27.6 21.7 (-) 21.6 Asset Acquisitions .................................................... … … ... Total Expenses ........................................................ 22.2 23.0 3.8 Asset Acquisitions .................................................... … … … Total Expenses ........................................................ 4.8 15.2 216.7 Asset Acquisitions .................................................... … … … Total Expenses ........................................................ 353.5 395.0 11.7 Asset Acquisitions .................................................... 67.6 98.3 45.4 Waste Planning and Management Fund Stormwater Trust Total, Minister for the Environment ** ** Total expenses for the Minister for the Environment do not equal the sum of expenses for each agency because payments between agencies have been netted out. The increase in expenses in 1998-99 compared with the previous year reflects the Government’s commitment to the Environment portfolio. Expenses of the Environment Protection Authority will increase because an additional $10.4 million will be provided to the Stormwater Trust and $10.3 million to the Waste Planning and Management Fund. The increase in expenses of the National Parks and Wildlife Service has resulted from additional operating costs of managing thirty one additions to existing national parks and reserves and seven lighthouses transferred from the Commonwealth, and costs associated with the transfer of ownership of Mootwingee National Park to its traditional owners and with the Threatened Species Conservation Act. The increase in asset acquisitions by the National Parks and Wildlife Service in 1998-99 has resulted from the expansion of Jervis Bay and various northeast national parks and wilderness areas, continuation of work on the Alpine Way at 4 - 135 Thredbo, an upgrade of visitor facilities and roads in Parramatta Park and additional maintenance of park infrastructure. The increase in asset acquisitions by the Royal Botanic Gardens and Domain Trust includes improvements to seed storage facilities at Mt Annan and repair of the Farm Cove seawall. Asset acquisitions by the Bicentennial Park Trust in 1998-99 reflect park asset improvements, including an improved access corridor at the entrance to the Park and environmental management works. ENVIRONMENT PROTECTION AUTHORITY The Environment Protection Authority’s objectives are to protect, maintain and restore the quality of the environment, having regard to the need to maintain ecologically sustainable development, to reduce the risks to human health and to prevent degradation of the environment. The Authority’s 1998 to 2003 Corporate Plan sets its mission as that of “guiding the community to achieve and maintain a healthy environment in a productive New South Wales.” Expenditure Trends and Recent Developments The Environment Protection Authority commenced operation in March 1992, with total expenses increasing to $130.2 million in 1998-99. This increase reflects the Government’s commitment to the environment as well as increased awareness by the community of environmental issues and the Authority’s responsibilities. 4 - 136 In 1998-99 these payments include a Government contribution to the Waste Planning and Management Fund of $25.1 million as part of the Government’s overall waste reform package. A total of $57.7 million is being provided to the Fund over the four years to 1998-99. The 1998-99 appropriations also provide for a contribution of $15.2 million to the Stormwater Trust as part of the Government’s commitment to improved urban stormwater management. Strategic Directions The Environment Protection Authority has developed strategies involving innovative and targeted monitoring, regulation and enforcement, the use of economic mechanisms, education and the planning process. Of particular importance have been recent legislative changes to the overall regulatory regime for environmental control in New South Wales. This has included the introduction of a system of load based licensing as a means of focusing on the total load of pollutants discharged rather than the concentration of pollutants in discharges. The system directly links the level of licence fee to the total load. These strategies will assist the Environment Protection Authority in addressing - issues of waste generation, transport, disposal and management; increased pressure on the environment as a result of increased urban population and development; problems of maintaining and improving the health and sustainability of marine and freshwater environments; and the minimisation of adverse impacts on the environment and public health of chemicals, hazardous substances and other contaminants. 4 - 137 1998-99 Budget Total Expenses An amount of $130.2 million will be spent by the Authority. include - Major expenditures $13.3 million on reducing air and noise emissions and minimising their impact on the community; $36.5 million on improving the health and sustainability of New South Wales waterways, including $15.2 million for the Stormwater Trust; $12.1 million on minimising the adverse impacts of chemicals and hazardous substances on the environment and public health; $25.1 million for the Waste Planning and Management Fund; and a contribution of $9.0 million to the Zoological Parks Board for noncommercial purposes including research and education and upgrades of the monkey pit, the elephant exhibit, the top seal pool and the Kodiak bear exhibit. Asset Acquisitions During 1998-99 the Environment Protection Authority will continue to improve facilities for computer supported scientific, technical and administrative facilities. Expenditure of $1 million will be incurred on purchasing equipment to support the Metropolitan Air Quality Study. 4 - 138 Expenditure of $2.6 million will be incurred for the initiation, on-going upgrade and installation of projects that will increase and improve the Authority’s ability to undertake monitoring of all environment indicators, with specific emphasis on air and water quality monitoring, chemical contamination, waste management, laboratory processing and land contamination. Significant funding will be devoted to the upgrading and extension of computer facilities and networks. NATIONAL PARKS AND WILDLIFE SERVICE The overall objectives of the National Parks and Wildlife Service are to conserve, protect and manage the State’s natural and cultural heritage and to provide opportunities for members of the public to enjoy, appreciate and support national parks, regional parks and conservation of the State’s heritage. Expenditure Trends and Recent Developments Over recent years, the Service’s recurrent allocation has been increased to enable an improved performance in the areas of pest species and fire management, the maintenance of infrastructure within parks and for the conservation of the State’s biodiversity. During 1995-96, the Government declared twenty-six new parks in fulfilment of its pre-election commitment to declare twenty-four new parks within its first twelve months of office. A total of forty-nine new parks and reserves will have been declared by the end of June 1998. Other commitments, such as assistance towards the ongoing maintenance of Parramatta Park and preliminary work associated with the establishment of Stage 1 of the Western Sydney and Rouse Hill Regional Parks, have also been undertaken in the last two years. 4 - 139 During 1996-97, Threatened Species Conservation legislation was enacted. The Service spent $4 million per year in 1996-97 and 1997-98 to implement strategies for the conservation of the State’s threatened plant and animal species. Strategic Directions Priorities for the Service concentrate on the achievement of the Government’s commitment to the environment. Primarily they relate to such initiatives as the creation of new national parks, the establishment of additional regional parks in Sydney’s West, implementation of the Government’s water reform initiatives, the endangered species legislation, improved park and reserve management initiatives, as well as continued improvement in fire management strategies and pest species management. These initiatives are being funded through a combination of increases in support from the Consolidated Fund and the Environmental Trusts as well as internal realignment of existing resources to ensure that the outcomes expected by the community are achieved. 4 - 140 1998-99 Budget Total Expenses In continuing the Government’s commitment to the environment, an amount of $14.4 million will be spent as part of a $50 million initiative over a four year period for the creation and management of new national parks. In addition, $2.3 million will be spent for on-going management costs of other additions to the park estate during 1997-98. An amount of $6.8 million will be spent so that the Service is better placed to address pest species and fire management issues and maintenance of park infrastructure such as visitor facilities. The Service will spend $0.65 million contributing to the Government’s water reform process currently underway. The Service will also spend $0.2 million to facilitate the transfer of Mootwingee National Park to its traditional owners. An amount of $6 million will be spent to enable the Service to discharge its obligations under the Threatened Species Conservation Act introduced two years ago. Seven lighthouses have recently been transferred to the Service from the Commonwealth, and $1.8 million will be spent on the maintenance and conservation of these cultural assets. Asset Acquisitions The Service’s capital program is intended to enhance the community’s appreciation of the environmental significance of areas, and minimises environmental degradation. In particular, the program encompasses acquisition of land, construction or major reconstruction of facilities and minor works. 4 - 141 Historically, the Service’s strategy has been to give priority to the restoration of infrastructure assets. The main criteria used are health and safety issues, mitigation of environmental damage and use of parks by the public. A portion of the budget is allocated to the acquisition of land with outstanding environmental significance, with the balance being directed towards replacement of the Service’s motor vehicles and plant and equipment and to information technology requirements. The provision of additional resources by the Government has enabled funding to be directed to key priority areas such as upgrading of fire trails, fire fighting and pest species control. The allocation includes $4.8 million for necessary infrastructure associated with the establishment of new national parks in line with the Government’s pre-election commitment to the environment as well as an allocation of $2.5 million for ongoing establishment works at Western Sydney and Rouse Hill Regional Parks. Major new works totalling $4.2 million form part of the Service’s Capital Program for, inter alia, a new visitor centre and road works at Parramatta Park ($1.4 million) and new information technology initiatives ($2.5 million). The program provides $46.1 million for the continuation of major works and $13.8 million for minor works, including - the establishment of Jervis Bay National Park ($14.2 million); the Perisher Valley sewerage works in Kosciuszko National Park ($9.6 million); $9.7 million for the reconstruction of the Alpine Way above Thredbo Village as part of a $24 million project following the Thredbo landslip; ongoing roadworks in Kosciuszko National Park ($2.7 million); 4 - 142 fire management and pest species management initiatives ($1.6 million); and land acquisitions ($7.4 million). ROYAL BOTANIC GARDENS AND DOMAIN TRUST The Royal Botanic Gardens and Domain Trust maintains the Sydney Gardens and Government House Grounds, the National Herbarium of New South Wales, the Domain, and the Mount Tomah and Mount Annan Botanic Gardens. It also provides research, advice, education and extension services in botanical and horticultural areas. Expenditure Trends and Recent Developments In real terms there has been a modest growth in expenses over the last five years. This has largely been offset by an increase in revenue raised by the Gardens. The Stage 1 and Stage 2 redevelopments of the National Herbarium of New South Wales building have dominated capital acquisitions over the last five years. The project commenced in 1992-93. Completion of Stage 1 occurred in 1994-95 and Stage 2 will be completed in 1997-98. Strategic Directions In addition to ongoing management of the gardens and other ongoing activities the major priorities to be addressed by the Trust in the coming year include - a continued focus on the development of opportunities to increase and diversify the Trust’s revenue base; 4 - 143 reducing costs through market testing of all non-core activities and strategic capital investment in the latest technologies; further development of each of the botanic gardens and the Domain to meet the needs of visitors and service users more effectively; expansion of the Trust’s community education role to educate the public further about the importance of plants and their conservation; and continued development of Plans of Management for each of the gardens and the Domain including a long-term maintenance plan for the Farm Cove and Woolloomooloo seawalls. Total Expenses Total expenses of the Trust will be $25.8 million in 1998-99. In addition to ongoing management of the gardens and other activities, this sum allows for - the design and documentation of a new irrigation and water supply system for the Sydney Gardens and Domain with the purpose of replacing the current aged infrastructure with a more cost effective, efficient and reliable system of water delivery; and a detailed survey of the underground services within the Sydney Garden and Domain to allow better maintenance planning. Asset Acquisitions A 100-metre section of the Farm Cove seawall between Yurong Street Gate and First Fleet Steps has sunk appreciably in recent months and needs urgent attention. An allocation of $2.2 million has been set aside in 1998-99 for permanent repair of the damage. The following additional major new acquisitions are planned to commence - 4 - 144 the conversion of toilet blocks near the Gardens Restaurant in the Sydney Gardens to a new retail facility at an estimated total cost of $0.55 million; an upgrade of the Trust’s Living and Preserved Plant Collections Database (1998-99 $0.5 million) to allow a wider and more consistent collection of data and to ensure that both internal and external customer information requirements are better served; the re-design the Sydney Central Depot to overcome workplace health and safety issues. The Budget allocation for this project is $2.8 million ($0.4 million in 1998-99); and the conversion of Victoria Lodge in the Sydney Gardens to a cafe and retail facility. Significant minor works planned to commence at the Sydney Gardens and Domain include the re-sheeting maintenance of Hospital Road and installation of an additional electricity substation to serve the Sydney Gardens and Domain. Significant minor works planned to commence at Mt Annan include an improvement to seed storage facilities at the horticultural research facility and $382,000 to upgrade infrastructure and visitor facilities. 4 - 145 CENTENNIAL PARK AND MOORE PARK TRUST The Centennial Park and Moore Park Trust is responsible for a highly used area of open space in Sydney, known as the Centennial Parklands. The Trust operates in a complex and changing business environment. Responsibility for the former Sydney Showgrounds site at Paddington was transferred to the Trust in February 1998. Expenditure Trends and Recent Developments Over the past three years, the Trust’s total expenditure has increased significantly, from $6.4 million in 1995-96 to an estimated $11.1 million in 1998-99. This reflects the Trust’s commitment to improving the maintenance of the Parklands and to addressing public safety issues. Concurrently, capital expenditure has increased significantly since 1996-97 with the commencement of the ponds restoration project and the redevelopment of the Equestrian Centre and the Hordern Pavilion/Royal Hall of Industries. In the coming year, recurrent and capital expenditure will be impacted by four main issues currently influencing the operations of the Trust – the Paddington Showgrounds, the Eastern Distributor, the Olympics and Paralympic Games and the centenary of Federation celebrations. Strategic Directions The Trust’s corporate strategies focus on achieving the following outcomes in six key result areas - maintaining the Centennial Parklands for maximum community benefit; improving relationships with stakeholders; preserving the natural and cultural heritage of the Parklands; ensuring safe and equitable access to the Parklands; 4 - 146 securing opportunities for diversity of cultural expression; and maintaining business viability. The Trust will also continue to implement financial strategies to increase and diversify its revenue base in order to improve the quality of services and increase contributions towards costs. 1998-99 Budget Total Expenses Total expenses in 1998-99, estimated at $11.1 million, will provide for the maintenance of the cultural and recreational services and facilities located at the Parklands, including the newly completed Equestrian Centre, continuation of tree planting and weed management programs, and the consolidation of marketing and business development programs. Asset Acquisitions Total asset acquisition in 1998-99 is estimated at $19.5 million for - the restoration of Old Grand Drive in the Robertson Road precinct; completing the restoration of the Hordern Pavilion and Royal Hall of Industries at Moore Park ($14.7 million). landscaping the forecourt of the new Moore Park Event Bus Station; and the continuation of the restoration of the Centennial Park ponds. BICENTENNIAL PARK TRUST 4 - 147 Bicentennial Park, located at Homebush Bay, is a recreation, conservation and education resource for the people of Sydney. The Bicentennial Park Trust is responsible for the maintenance and management of Bicentennial Park. The Park forms a gateway to Sydney Olympic Park. Expenditure Trends and Recent Developments Recreation, environmental education and tourism are the key services provided to the community. Development adjoining the Park, including residential, commercial and sporting venues, is affecting the demands on Bicentennial Park. The development of the Sydney Olympic Park is a key driver affecting the operating environment of Bicentennial Park. With the completion of a number of facilities at Homebush Bay, including the Royal Agricultural Showground, visitor numbers are expected to increase. Landfill settlement continues to affect park infrastructure. Increases in maintenance funding in 1997-98 and 1998-99 will improve maintenance standards and enable the Trust to provide a safer park for the people of Sydney. Park programs such as education for schools, community tours and recreation servicing have been developed and expanded over the last twelve months. Partial and full cost recovery strategies are being introduced to minimise costs to Government and maintain high standards of service. Strategic Directions The Trust has developed a strategic plan which takes into account Government priorities and strategic directions. The Trust aims to provide a safe park for families and individuals where high quality opportunities to appreciate the environment and improve health are provided. 4 - 148 1998-99 Budget Total Expenses Total expenses by the Trust in 1998-99 are estimated at $3.6 million. The Trust has received additional maintenance funding of $0.8 million to address asset deterioration from landfill settlement and to improve business and service standards. Asset Acquisitions Total asset acquisitions in 1998-99 are estimated at $5.6 million and will provide plant replacement, upgrading of Park assets and environmental management works. The Trust will commence stage 1 of the upgrade of the access corridor between the entrance to the Park near Concord West Railway Station and Sydney Olympic Park ($2.0 million in 1998-99) and installation of a leachate collection system around the landfills ($1.7 million in 1998-99). ENVIRONMENTAL TRUSTS Legislation was enacted during 1990 to create - an Environmental Education Trust; an Environmental Research Trust; and an Environmental Restoration and Rehabilitation Trust. 4 - 149 The objectives of the Environmental Education Trust are to promote environmental education, to encourage the development of educational programs and to increase awareness of environment issues. The objective of the Environmental Research Trust is to promote research into environmental problems. The objective of the Environmental Restoration and Rehabilitation Trust is to encourage and support restoration and rehabilitation projects that are likely to reduce pollution, the waste stream or environmental degradation within New South Wales. During 1995-96 the Forestry Restructuring and Nature Conservation Act 1995 was enacted. This Act provides access to the Trust’s funds until the year 2000 to meet various costs associated with restructuring the timber industry for the purpose of conserving New South Wales forests; reserving and conserving new national parks; and implementing a range of high priority environmental projects. 4 - 150 The Act provides for authorised expenditure being paid from the three Environmental Trusts to reimburse the Consolidated Fund, which is initially funding that expenditure. The Government has decided to merge the three Trusts into a single Environmental Trust. It is intended that income that the Trusts currently receive from trade waste levies raised on Sydney Water will be replaced by an annual allocation of income from the Consolidated Fund, indexed for inflation. The deadline for expenditure on forestry restructuring will be extended to 30 June 2001. Expenditure Trends and Recent Developments Expenditure from all three trusts has been rising steadily since 1995-96 reflecting refunds to the Consolidated Fund for initiatives under the Forestry Restructuring and Nature Conservation Act 1995. Strategic Directions The new Environmental Trust will continue to promote the aims of the previous three Trusts. Under the terms of the Forest Restructuring and Nature Conservation Act, grants programs of the Trusts, other than those specified in that Act, have been suspended until the year 2000. This provision will be retained in the new Trust. After that time, a minimum amount will be provided annually to promote environmental research, education and rehabilitation and restoration by the public, private and community sectors, and in particular to encourage and support - research into and development of local solutions to environmental problems; 4 - 151 development of new methods of operation for New South Wales industries which minimise adverse environmental impacts; research into general environmental problems and assessment of environmental degradation; and restoration and rehabilitation projects which have the potential for more widespread application. 1998-99 Budget Total Expenses Major expenditure in 1998-99 being funded from the Consolidated Fund for subsequent reimbursement from the Environmental Trusts includes - $11.1 million to create new national parks (National Parks and Wildlife Service); and $15.3 million towards the Forest Industry Structural Adjustment Package (Ministry for Forests and Marine Administration). 4 - 152 Asset Acquisitions No asset acquisitions are anticipated. WASTE PLANNING AND MANAGEMENT FUND The Waste Planning and Management Fund was established in 1995-96 with an initial allocation of $60 million over the five years to 1999-00. Funding has been provided for the establishment and initial operating expenses of Regional Waste Boards, for waste reduction programs of the Boards and for a community grants program. Expenditure Trends and Recent Developments Funding provided over 1995-96 to 1997-98 has been $32.6 million. expenditures include - Major $22 million to support Regional Waste Boards. This includes establishment, recurrent and program funding as well as allocations to each Board to develop its regional waste plan; $2.5 million over 1996-97 and 1997-98 for the annual Community Waste Reduction Grants program; $3.75 million to provide emergency support for kerbside recycling; and $1.5 million to develop the “Waste Challenge” education program, to conduct the first census of commercial and industrial waste, to support four rural regional pilots and to run the State Waste Advisory Council (SWAC). Strategic Directions 4 - 153 The Government is committed to a target of reducing waste disposed to landfill by 60 per cent on 1990 levels by the year 2000. This target will be achieved through a range of measures such as Regional Waste Board Waste Plans and waste reduction programs, Industry Waste Reduction Plans, community grants and Action Plans which have been developed for key components of the waste stream such as green waste and building and demolition waste. Eight Regional Waste Boards, comprising groups of local councils, were established in 1996 to plan and manage waste on a regional level. Boards cover all councils in the Sydney, Central Coast, Hunter and Illawarra regions. Membership of a Waste Board is mandatory for these councils unless they can demonstrate that they can meet the Government’s waste policy objectives on their own account. Four rural pilot programs have also been established to trial a number of less formal approaches to regional cooperation in rural New South Wales. A regional approach to waste management is intended to allow councils to achieve economies of scale and to contract with public or private sector providers for waste management and waste recovery services. Green waste, comprising garden, food and wood waste is 30 per cent of the total waste stream. The Green Waste Action Plan was released in 1997 and sets out fifty two actions for all sectors of the community to divert this material from landfill. This includes a proposed ban on garden waste to landfill, subject to confirmation by the SWAC that there is sufficient collection, reprocessing and market capacity. At this stage, it is unlikely that the ban will be introduced before late 1999. An implementation taskforce comprising key stakeholders has been established to monitor and report on progress in implementing the actions in the Plan. Around 30 per cent of the community grants to date have been used to support green waste reduction initiatives including education, reprocessing systems, collection trials and local market development. Waste Boards have also identified green waste as a priority for their programs. 4 - 154 Other programs directed at particular industry segments include the Construction and Demolition Waste Action Plan which identifies barriers and actions to encourage the construction industry to take greater responsibility for diverting waste (17 per cent of total waste). Industry Waste Reduction Plans have been concluded for the tyre and dairy industries and Plans are under way with the beverage and pesticide containers industry. The Government has increased the waste levy from $8 per tonne in the Sydney metropolitan area (and $4 per tonne in the greater metropolitan area) to $17/$8 per tonne, effective from 1 July 1998. This will provide a disincentive to disposing of waste to landfill. Rebates and exemptions from the levy for re-use and recycling will encourage all sectors of the community to increase these activities. Further, from 1 July 2000, 55 per cent of the revenue from the levy will be available for waste management and reduction initiatives through the Waste Planning and Management Fund. The estimated contribution to the Fund is $24.4 million in 2000-01. 1998-99 Budget Total Expenses and Asset Acquisitions The Waste Planning and Management Fund will spend $23 million in 1998-99. Major expenditures include $15 million for Regional Waste Boards (programs and operation) and rural pilots, $2 million for community grants, and up to $6 million for kerbside recycling systems support. No asset acquisitions are planned for 1998-99. STORMWATER TRUST 4 - 155 In May 1997, the New South Wales Government released the Waterways Package, which contained a range of initiatives to improve the quality of the State’s waterways. A key initiative of the package is improved management of stormwater. This is to be achieved by requiring Councils to prepare Stormwater Management Plans and thence by trialling innovative treatment measures and implementing remedial works linked to these plans. Educating the community about essential changes in behaviour will be another critical component of this initiative. Strategic Directions The Government has committed up to $60 million over the years 1997-98 to 2000-01 for a Stormwater Trust Fund. This Fund is intended to assist with the implementation of the stormwater commitments in the Waterways Package. Establishing the Fund was also a response to the recommendations of the report prepared by the Waterways Advisory Panel on Sydney Water’s proposal for sewage overflow abatement in Sydney Harbour. This funding has been allocated for - assisting Councils, and certain State government agencies either individually or in groups, to pilot innovation in stormwater management or to undertake remedial activities; providing assistance to Councils for the preparation of Stormwater Management Plans; and a statewide education program to be coordinated by the Environment Protection Authority. 1998-99 Budget Total Expenses and Asset Acquisitions 4 - 156 Funding of $15.2 million has been provided in 1998-99 to continue Stage 1 of the grants program, commenced in 1997-98, and for Councils’ Stormwater Management Plans. An evaluation of the results of the grants program and the Management Plans will ensure that future years’ funding is directed to pilot projects which have the greatest potential for tackling the widespread stormwater management problems which exist across the State in a cost effective manner. No asset acquisitions are planned for 1998-99. 4 - 157