❓ Hon. Donaldson questions the source of increased operating revenues in the Agriculture budget, given projected decreases in future years. Hon. Chance explains the reliance on external revenue, seasonal fluctuations, and competitive research funding as key factors.
AnsweredQoN 523Legislative Council
QuestionView source ↗
Can the minister indicate the source of the additional operating revenues from the actual budget for 2000-01 of $69 630 million to the budget for 2001-02 of $95 024 million, which are contained in the agricultural budget papers at page 228, volume 1, budget paper No. 2, given that the forward estimates show a decrease in 2002-03 of $20 million, 2003-04 of $25 million and 2004-05 of $33 million from the actual revenue in the budget for 2000-01? Hon KIM CHANCE
AnswerView source ↗
I thank the member for some indication of the question and the correct page number. This is a perpetual problem, not only with the budget for the Department of Agriculture, but also with the budget of any agency which relies heavily upon external revenue sources. It has always been an issue. In earlier years the current budget figure always seemed to be substantially lower than the real expenditure of that agency. To some extent we have overcome that, because we are now able to predict with more certainty what the income from external sources will be in the current year. However, when we try to project that income into the on-years in the forward estimates, it becomes increasingly difficult to anticipate what that external income flow will be. For example, in the Department of Fisheries some 70 per cent of its budget is now sourced externally; in the Department of Agriculture the figure is closer to 30 per cent; therefore, external income forms a very large part of the agencies’ budgets. The reasons for the variables are, first, seasonal fluctuations, because much of the income is based upon ad valorem levies; and, secondly, whether or not the Department of Agriculture wins that budget in the research and development bids. The department is one scientific agency that is bidding in the field with other state Departments of Agriculture, agencies such as the Commonwealth Scientific and Industrial Research Organisation, and the universities. This is a conservative budget practice that we have come across previously. This question is asked every year, although normally it is not asked until we deal with the estimates. However, the predicted downturn is mainly due to the factors I have mentioned, although there are variables for other external funding, particularly sourced from the Commonwealth, such as the Natural Heritage Trust funding.
Hon KIM CHANCE replied: I thank the member for some indication of the question and the correct page number. This is a perpetual problem, not only with the budget for the Department of Agriculture, but also with the budget of any agency which relies heavily upon external revenue sources. It has always been an issue. In earlier years the current budget figure always seemed to be substantially lower than the real expenditure of that agency. To some extent we have overcome that, because we are now able to predict with more certainty what the income from external sources will be in the current year. However, when we try to project that income into the on-years in the forward estimates, it becomes increasingly difficult to anticipate what that external income flow will be. For example, in the Department of Fisheries some 70 per cent of its budget is now sourced externally; in the Department of Agriculture the figure is closer to 30 per cent; therefore, external income forms a very large part of the agencies’ budgets. The reasons for the variables are, first, seasonal fluctuations, because much of the income is based upon ad valorem levies; and, secondly, whether or not the Department of Agriculture wins that budget in the research and development bids. The department is one scientific agency that is bidding in the field with other state Departments of Agriculture, agencies such as the Commonwealth Scientific and Industrial Research Organisation, and the universities. This is a conservative budget practice that we have come across previously. This question is asked every year, although normally it is not asked until we deal with the estimates. However, the predicted downturn is mainly due to the factors I have mentioned, although there are variables for other external funding, particularly sourced from the Commonwealth, such as the Natural Heritage Trust funding.
I thank the member for some indication of the question and the correct page number. This is a perpetual problem, not only with the budget for the Department of Agriculture, but also with the budget of any agency which relies heavily upon external revenue sources. It has always been an issue. In earlier years the current budget figure always seemed to be substantially lower than the real expenditure of that agency. To some extent we have overcome that, because we are now able to predict with more certainty what the income from external sources will be in the current year. However, when we try to project that income into the on-years in the forward estimates, it becomes increasingly difficult to anticipate what that external income flow will be. For example, in the Department of Fisheries some 70 per cent of its budget is now sourced externally; in the Department of Agriculture the figure is closer to 30 per cent; therefore, external income forms a very large part of the agencies’ budgets. The reasons for the variables are, first, seasonal fluctuations, because much of the income is based upon ad valorem levies; and, secondly, whether or not the Department of Agriculture wins that budget in the research and development bids. The department is one scientific agency that is bidding in the field with other state Departments of Agriculture, agencies such as the Commonwealth Scientific and Industrial Research Organisation, and the universities. This is a conservative budget practice that we have come across previously. This question is asked every year, although normally it is not asked until we deal with the estimates. However, the predicted downturn is mainly due to the factors I have mentioned, although there are variables for other external funding, particularly sourced from the Commonwealth, such as the Natural Heritage Trust funding.
Hon KIM CHANCE replied: I thank the member for some indication of the question and the correct page number. This is a perpetual problem, not only with the budget for the Department of Agriculture, but also with the budget of any agency which relies heavily upon external revenue sources. It has always been an issue. In earlier years the current budget figure always seemed to be substantially lower than the real expenditure of that agency. To some extent we have overcome that, because we are now able to predict with more certainty what the income from external sources will be in the current year. However, when we try to project that income into the on-years in the forward estimates, it becomes increasingly difficult to anticipate what that external income flow will be. For example, in the Department of Fisheries some 70 per cent of its budget is now sourced externally; in the Department of Agriculture the figure is closer to 30 per cent; therefore, external income forms a very large part of the agencies’ budgets. The reasons for the variables are, first, seasonal fluctuations, because much of the income is based upon ad valorem levies; and, secondly, whether or not the Department of Agriculture wins that budget in the research and development bids. The department is one scientific agency that is bidding in the field with other state Departments of Agriculture, agencies such as the Commonwealth Scientific and Industrial Research Organisation, and the universities. This is a conservative budget practice that we have come across previously. This question is asked every year, although normally it is not asked until we deal with the estimates. However, the predicted downturn is mainly due to the factors I have mentioned, although there are variables for other external funding, particularly sourced from the Commonwealth, such as the Natural Heritage Trust funding.
I thank the member for some indication of the question and the correct page number. This is a perpetual problem, not only with the budget for the Department of Agriculture, but also with the budget of any agency which relies heavily upon external revenue sources. It has always been an issue. In earlier years the current budget figure always seemed to be substantially lower than the real expenditure of that agency. To some extent we have overcome that, because we are now able to predict with more certainty what the income from external sources will be in the current year. However, when we try to project that income into the on-years in the forward estimates, it becomes increasingly difficult to anticipate what that external income flow will be. For example, in the Department of Fisheries some 70 per cent of its budget is now sourced externally; in the Department of Agriculture the figure is closer to 30 per cent; therefore, external income forms a very large part of the agencies’ budgets. The reasons for the variables are, first, seasonal fluctuations, because much of the income is based upon ad valorem levies; and, secondly, whether or not the Department of Agriculture wins that budget in the research and development bids. The department is one scientific agency that is bidding in the field with other state Departments of Agriculture, agencies such as the Commonwealth Scientific and Industrial Research Organisation, and the universities. This is a conservative budget practice that we have come across previously. This question is asked every year, although normally it is not asked until we deal with the estimates. However, the predicted downturn is mainly due to the factors I have mentioned, although there are variables for other external funding, particularly sourced from the Commonwealth, such as the Natural Heritage Trust funding.
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