Minister for Resources and Energy, Senator Peter Walsh

1984 BUDGET: DETAILS OF MAJOR EXPENDITURE ITEMS WITHIN THE RESOURCES AND ENERGY PORTFOLIO

Attached for your information are brief details of some of the  significant expenditure items included in the 1984 Federal  Budget for my portfolio.

The expenditure items are listed as follows:

Page

National Water Resources 1

Energy Conservation 3

Northern Territory Electricity Supply 6

Energy Research and Development 7

Rehabilitation of Former Uranium Mine Sites in the Northern Territory 9

Management of Former Atomic Test Sites 11

The Pipeline Authority 12

Australian Atomic Energy Commission 13

Division of National Mapping 15

Bureau of Mineral Resources 17

Canberra  August 1984

NATIONAL WATER RESOURCES

Consistent with the Government's election policy commitment to

develop a new water program based on the 'Water 2000' report,

the Government is introducing a program of assistance to the

States in 1984-85 for water resources development - the Federal

Water Resources Assistance Program (FWRAP).

The program has been developed from the recommendations of the

Water 2000 report and in close consultation with the States.

It is consistent with the Government's water policy objective

of providing assistance by way of loans for revenue-producing

projects rather than by grants as has been the case to date.

However, this process will be delayed for a year to allow the

States time to review their priorities for Commonwealth

assistance. .

This year the water resources appropriation will be a record

$64.3 million, representing an increase of $7.4 million or

13.4% over 1983-84 expenditure. Of this, $62.01 million will

be made available to the States for approved purposes .

Of particular interest is $19.00 million to be provided to

Queensland for the Burdekin Falls Dam, $6.65 million to Western

Australia for the Harding River Dam and $2.2 million to New

South Wales for the Chichester water treatment works in the

Hunter Valley.

Additionally, the Government is providing $500 000 for the

extension of a water research program recommended by the '

Australian Water Resources Council, an increase of 100% over

expenditure in 1983-84. This extension is an interim measure;

the long-term role of the Commonwealth in water research will

be determined after consideration of the report of the Interim

Council established to investigate the need for an Institute of

Freshwater Studies.

2 .

Up to $15.6 million will be provided under the Community

Employment Program towards improvement of water supplies to

small country towns. This continues the assistance of $17.4

million provided in 1983-84 for over 170 projects throughout

Australia.

Contact Officer: Mr L.B. Devin Phone: (062) 45 8739 (work)

(062) 54 7130 (home)

3 .

ENERGY CONSERVATION

Energy Conservation in Government Buildings

Buildings owned and leased by the Australian Government will be

given highest priority for reducing energy costs in government

operations in 1984-85. A new program of funding of

modifications to existing Government buildings is to be

introduced.  Other elements of the program include setting

energy conservation targets, nominating and training personnel

who have energy management responsibilities, motivating staff,

designing Commonwealth buildings to take full account of energy

conservation objectives, energy audits and collecting .data for

evaluating the program's performance.

In line with its 1984 policy platform, the Government is giving

impetus to this program through two new appropriations in

1984-85. One item provides $70 000 to the Department of

Resources and Energy to satisfy the education, training and

promotion needs of the program. A complementary appropriation,

included as Item 896-7 in the estimates of the Department of

Housing and Construction, provides an amount of $1.1 million

for energy saving modifications to selected Commonwealth

buildings.

National Energy Conservation Program (NECP)

No separate appropriation for the National Energy Conservation

Program has been necessary in 1984-85. Funds already held in

the Program's trust account ($1,035 million) are sufficient for

activities planned for 1984-85.

A substantial amount of resources at both Commonwealth and

State levels is being directed towards expanding the range of

NECP advisory material on energy management.  Particular

emphasis is being given to the completion of an 18 booklet

series for small to medium size enterprises in industry and

commerce - of which 5 have been issued to date - and a 12 ~

booklet series for local government.

4 .

Approximately one-third of the funds currently held in the

trust account are earmarked for public education and for

appliance testing under the proposed scheme for energy

labelling of domestic appliances.

National Industrial Energy Management Scheme (NIEMS).

The 1984-85 NIEMS appropriation of $267 000 reflects the

Government's continued commitment to promoting the more

efficient use of energy in the industrial, commercial and

municipal sectors.

NIEMS combines the dissemination of practical information with

modest financial assistance, special studies, and national

recognition of achievement. It is well supported by industry

and State Government as part of a national focus for a wide

range of complementary and co-operative activities aimed at

improving the productivity, profitability and competitiveness

of Australian firms. Annual expenditure since inception has

been: 1980-81 $88 000; 1981-82 $118 000; 1982-83 $175 000;

1983- 84 $208 000.

The three main components of NIEMS - the National Energy

Management Awards, energy audit subsidies, and energy

management seminars and workshops - will all continue in

1984- 85.

Nominations are now being invited for the 1984 National Energy

Management Awards, which will be presented early in December

1984. Some of Australia's most prominent firms are among the

14 winners and 35 other finalists who have competed for the

awards since 1981. Annual energy savings achieved by the 1982

and 1983 winners and finalists amounted to $18 million.

A total of 160 NIEMS energy audit subsidies had been paid at

31 July 1984, 74 of these in 1983^-84. Oyer a period of 3.5

years, the Government spent $44 300 in subsidies for these 160

audits which have identified potential energy savings worth

5.

more than $4.0 million. The average payback period on the

recommended investments to achieve these savings is estimated

at less than 12 months.  .

Financial and other assistance will continue for organisers of

approved energy management seminars and. workshops.  As at

30 June 1984, over 3000 participants from industry, commerce,

education, the public sector and community organisations had

attended 72 sponsored seminars.

1984-85 will also see the release of a new dramatised

documentary film about energy managers; the preparation of a

casebook of successful energy management programs;  the

publication of the first Directory of Energy Management .

Services, Australia, and the continuation of energy-efficiency

studies of selected industries, sponsored jointly with State

Governments.

Contact Officer: Mr R. Layland Phone: (062) 45 8411 (work)

(062) 95 7087 (home)

6 .

NORTHERN TERRITORY ELECTRICITY SUPPLY

Under financial arrangements for Northern Territory

self-government in 1978, the Commonwealth undertook:

.  to subsidise public electricity supply for an initial period

from 1978-79 to 1981-82 with a review at the end of 1981-82

.  to enter into an arrangement to provide additional

electricity generating capacity in Darwin.

In 1983, the Government confirmed an in-principle agreement

between the Commonwealth and the NT:

. to pay an operating grant according to an agreed formula for

1982-83 to 1986-87, subject to review in 1986-87. The

formula indexes the grants for inflation, load growth, and

wage and fuel price increases

.  to provide an indexed capital grant of $124 million (1980-81

prices) towards a new 300MW coal-fired station at Channel

Island, Darwin, to replace expensive oil-fired generation at

Stokes Hill. The Northern Territory Government is currently

examining possible gas-firing of the station. k

Payments of the operating and capital grants for 1983-84 and

estimates for 1984-85 are:

. 1983-84 payments

- operating grant $63.1 million subject to final adjustment

for actual cost escalation indices

- capital grant $4.5 million '

. 1984-85 estimates ,

- operating grant $69.3 million

- capital grant $14.6 million

Contact O f f i c e r : Mr B . R . Jones Phone: (062) 45 8742 (work)

(062) 31 4979 (home)

7 .

ENERGY RESEARCH AND DEVELOPMENT

In 1984-85 it is estimated that $21.0 million will be spent

under the National Energy Research, Development and

Demonstration (NERD&D) Program. This comprises an estimated

$16.0 million of new appropriation and $5.0 million of coal

levy funds. Total expenditure under the Program in 1983-84 was

$18.4 million, comprising Government funds of $16.3 million and

coal levy funds of $2.1 million.

The Government has authorised the commitment of $13.2 million

on new projects in 1984-85, to be discharged over the period

1984-85 to 1987-88. In addition, it is estimated that $4.6

million of coal research levy funds will be available for

commitment on new projects in 1984-85.

Total new commitments entered into in 1983-84 were $17.0

million (comprising Government funds of $11.9 million and coal

levy funds of $5.1 million).

Grants under the NERD&D Program are approved by the Minister

for Resources and Energy in the light of advice from the

National Energy Research, Development and Demonstration Council

(NERDDC). All sectors - private, tertiary education and

government - are eligible to apply. In recommending grants,

NERDDC takes into account the merit of the proposal and the

priority accorded the particular research area. The current

areas of highest priority are:

. energy conservation technologies related to liquid fuels

. technology of exploration, assessment and recovery of oil

and gas

. improvements in coal combustion technology

. improved coal productivity

. production of liquid fuels from coal and natural gas derived

.  syngas

8 .

Since the inception of the NERD&D Program in 1978, $113.8

million has been committed in grants,  of which $82.5 million

has been provided by the Government. The remaining $31.3

million has been provided for coal projects from a levy of 5

cents per tonne on black coal production and from similar

contributions by the Victorian and South Australian authorities

in relation to lower grade coals produced in those States.

Applications for grants in 1984-85 closed in May 1984 and are

currently being assessed by NERDDC and its Technical Standing

Committees. The Minister for Resources and Energy is expected

to announce details of the grants approved in October/November

1984.

Contact Officer: Mr R. Hopkins Phone:  (062) 45 8544 (work)

(062) 86 1237 (home)

9 .

REHABILITATION OF FORMER URANIUM MINE SITES IN THE

NORTHERN TERRITORY .

Rum Jungle

The Budget provides $7.6 million for rehabilitation of the site

of the former Rum Jungle uranium mine.

The Commonwealth and the Northern Territory Government signed

an agreeement in March 1983 for the rehabilitation of the site

of the former mine,  where uranium ores were mined and milled on

behalf of the Commonwealth Government between 1954 and 1971.

The agreement provides for scheduled works to be undertaken

over a period of four years,  with monitoring for a further two

years,  at a cost of $16.2 million. The main objective of the

rehabilitation program is to substantially reduce water

pollution caused by heavy metals (copper,  zinc, manganese) and

sulphates (acid), and to remove the public health hazard

presented by radioactive tailings at the site.

Rehabilitation works undertaken to date (following the

provision of $0.8 million in 1982-83 and $5.3 million in

1983-84) include the covering and revegetation of a large

overburden heap with an impervious clay capping to reduce

pyritic oxidation and the subsequent leaching of contaminants

out of the heap, and the purchase of a water treatment plant to

reduce the acidity of water in the two largest mine pits. Work

commenced in May 1984 on the transfer of above ground

radioactive tailings and low grade copper ore into a third mine

pit.

The $7.6 million provided in this year's Budget will allow the

treatment of acidic water in the two large mine pits to be

undertaken; disposal of sludge from the water treatment

process; completion of the transfer of radioactive tailings and

low grade copper ore into the third mine pit and subsequent

burial and revegetation; and preparation of the ground

previously covered by tailings in readiness for revegetation.

10.

Rockhole/Moline

ÃÂ¯ÃÂ¸.1 million has been provided for preliminary site works at

the abandoned former uranium mining and milling operations at

Ro.ckhole and Moline. Tailings from milling operations at both

sites are inadequately contained and present a possible public

health hazard. Accordingly the Commonwealth, in consultation

with the Northern Territory Government, is giving consideration

to the most effective stategy for rehabilitating both sites.

An engineering assessment of possible rehabilitation strategies

has been prepared.

Contact Officer: Mr I.W. Morison Phone: (062) 45 8585 (work)

*  (062) 73 1482 (home)

ÃÂ

MANAGEMENT OF FORMER ATOMIC TEST SITES

A provision of $384 000, an increase of 163% over 1983-84

expenditure, is included in the Budget for the management and

maintenance of former atomic test sites at Maralinga, Emu and

Monte Bello. -

The bulk of the funds will be spent on the maintenance of the

Australian Federal Police support services at Maralinga, site

inspections and surveys.

11.

Contact Officer: Mr A.A. Garran Phone:  (062) 45 8793 (work)

(062) 27 1651 (home)

12.

THE PIPELINE AUTHORITY

Budget appropriations to The Pipeline Authority represent loans

to the Authority (repayable with interest) to cover the

deficiency between the Authority's revenue,  derived primarily

from the carriage of natural gas through the Moomba-Sydney

pipeline network, and its expenditure.

For 1984-85, $15.771 million has been provided in the Budget

for this purpose, $0,100 million of which is to provide for the

administrative costs associated with the purchase and

installation of a replacement computer system. This system

monitors the safety and security of the Moomba-Sydney natural

gas pipeline and its laterals, and provides data for billing

purposes.

Off-budget borrowing of $1.1 million for the purchase of this

computer system have been included in the Authority's 1984-85

borrowing program of $19.8 million. The remaining $18.7

million is for the refinancing of private sector borrowings

made in 1980-81, falling due in 1984-85.

Contact Officer:  Mr F.W. Noble Phone: (062) 47 9335 (work)

(062) 58 3440 (home)

13.

AUSTRALIAN ATOMIC ENERGY COMMISSION

The 1984-85 Budget provides $41,918 million for the

Commission. This is for running expenses ($37;215 million) and

capital works and services ($4,703 million). This represents

an additional $3.1 million (or 8% over 1983-84 expenditure),

the bulk of the increase relating to salaries. The remaining

increase is mostly due to the HIFAR refurbishing and SYNROC

development and demonstration components of capital works and

services.

SYNROC Pilot Demonstration Plant

The Budget provides for an estimated expenditure of $1,587

million in 1984-85 under the $2.75 million, three year program

for the construction of a non-radioactive pilot demonstration

plant at the AAEC to manufacture full size canisters of SYNROC.

SYNROC is a material developed by Professor A.E. Ringwood of

the Australian National University for the safe containment of

high level nuclear waste. This Government funding is partly a

recognition of the high promise of SYNROC as a second

generation waste containment material and partly a recognition

that as a responsible supplier of uranium Australia must be

prepared to make a positive contribution to the international

issue of radioactive waste management.

Expenditure to July 1984 has been relatively low (about

$710,000) because an extensive period has been required for the

design of the plant and also because major items of plant

ordered during 1983-84 will not be delivered until 1984-85,

which will be the year of maximum expenditure on plant and

construction.

International interest in the Australian SYNROC project is

illustrated by co-operation agreements on research and

14.

development signed during 1983-84 with the United Kingdom and

Japan.

Safety Upgrading of HIFAR Reactor

In 1984-85, $1.2 million will be spent under the $4.7 million

five-year program for the refurbishing of the AAECs HIFAR

reactor to ensure its continued operation into the 1990s.  To

30 June 1984, $1.21 million has been spent under the program.

HIFAR has been operating safely for more than 20 years and it

has been well maintained. However,  standards for safety and

reliability have been developed since HIFAR was built and some

of its systems do not comply with these new criteria.

Non-compliance with a standard does not imply that the system

is unsafe,  but on the other hand compliance is an indication

that a system is demonstratively safe.  .

It has been considered desirable to .upgrade those systems which

have a safety connotation to a level at which compliance with

modern day criteria can be demonstrated.  Systems which fall

into this category are the containment system, the reactor

protection system and the electrical power supply. Major

expenditure in 1984-85 will be for the electrical power supply

system which is to be replaced because safety-related equipment

depends for its operation on a highly reliable supply system.

Expenditure in the past three years has been low because,

before the more expensive engineering hardware can be

purchased,  an extensive period has been required for

engineering assessment and analysis, followed by documentation

of the proposed modifications prior to obtaining safety

approval in accord with normal nuclear regulatory procedures.

*Ã¢ÂÂ

C o n t a c t  Officer: Dr D.G. Wa lk er  P h o n e : (02) 543 4780 (work)

(02) 533 5415 (home)

15.

DIVISION OF NATIONAL MAPPING

The Division of National Mapping is the Commonwealth body

responsible for geodesy and mapping.  The 1984-85 Budget

provides $16.343 million for the Division,  an increase of 12.4%

over 1983-84 expenditure of $13.5 million. .

Australian Landsat Station (ALS)

Of the above amount $0.1 million has been provided to examine

the feasibility of upgrading the ALS to receive high resolution

data.

The ALS currently consists of a receiving facility located at

Alice Springs and a processing unit situated in Canberra. The

station was established in the Department of Science and

Technology in 1979 but was transferred to the Department of

Resources and Energy on 1 March 1984.

Commonwealth, State and private organisations - particularly in

the mining industry - have developed considerable expertise in

extracting valuable information from Landsat data. Some uses

of the data are for mineral exploration, agriculture, water

resources, environmental studies, topographic mapping, land use

planning, flood warning and bush fire hazard assessment.

The ALS is able to receive and process low resolution data from

US satellites designated Landsat 4 and 5. Low resolution

transmissions will cease in 1988.

High resolution data,  with a consequent increase in the quality

of satellite imagery, will become available from satellites to

be launched by France, Japan, Brazil,  China and the European

Space Agency, as well as the US.

Improved imagery from these satellites (which also includes

high resolution data from the currently operational Landsat 5

16.

satellite) cannot be received by the ALS as it is not equipped

to receive high resolution data.

Map Digitising System (MDS)

The Government has approved the commitment in 1984-85 of $1.4

million for the purchase in 1985-86 of a map digitising system.

The automated MDS is faster, more efficient,  more accurate and

less costly than the manual techniques presently used. An

automated MDS converts traditional topographic graphical maps

to computer-based digital form. The digital data can then be

manipulated for mapping purposes and employed as a digital data

base for geographic and resource information systems.

The MDS consists of a raster scanner, an interactive editing

station, a laser plotter and a computer to control the whole

system. .

Data obtained from the MDS will be used for geographic

information systems and digital elevation models which are

being used increasingly for mineral exploration, design studies

for pipelines, railways,  roads,  telecommunications, and terrain

analysis. The data will also be used for revision of

topographic maps and census mapping; for instance some 30 000

collector district maps need to be digitised for the next

Census.

Contact Officer: Mr C. Veenstra Phone:  (062) 525075 (work)

(062) 545460 (home)

17.

BUREAU OF MINERAL RESOURCES (BMR)

An amount of $31.1 million is provided in 1984-85 for the

Bureau of Mineral Resources,  Geology and Geophysics, the

largest geoscientific research organisation in Australia ($21.7

million was spent in 1983-84). This provides for the first

full year of the offshore Continental Margins Program, which

commenced in 1983-84; for the establishment of a capacity to

undertake seismic monitoring of nuclear explosions; for

additional staff for activities related to national

geoscientific databases and resource assessment; and for the

continued upgrading of BMR as a high-level geoscientific

research organisation devoted predominantly to strategic

mission-oriented research.

Continental Margins Program

The Government's new program of marine geological and

geophysical research will focus on the petroleum potential of

the sedimentary basins occurring on Australia's vast

continental margins. A modern, specially designed geoscience

research vessel, the Rig Seismic,  has been chartered and is

expected to arrive in Australia in late September or early

October. After survey certification and equipment refit in

Newcastle, the Rig Seismic will be used for marine studies of

the Otway Basin, followed by investigations of the

Heard/McDonald sector of the sub-Antarctic,  the Lord Howe Rise,

the Coral Sea Islands region, the Exmouth Plateau, the Perth

Basin, and areas off the southern coast of Australia. The

program of offshore surveys will provide a geoscientific

framework designed to promote exploration, provide data for

national resource assessment, and make a significant

contribution towards global scientific studies of continental

margin evolution.

Monitoring of Nuclear Explosions

As part of the Government's objective of seeking a

Comprehensive Test Ban Treaty, funds have been provided for the

first stage in establishing an Australian Nuclear Monitoring

18.

Centre (NMC) and associated International Data Centre (IDC).

The NMC will entail the upgrading of earthquake detection

facilities run by BMR and will be operated by BMR from

Canberra. To date, all information on the occurrences of

nuclear explosions has been obtained from overseas sources. It

is expected that the NMC will be able to detect nuclear

explosions larger than 10 kilo-tons within a radius of

10 000 km from the centre of Australia. Associated with the

NMC, the IDC will service the southern hemisphere and, linked

to similar centres elsewhere, will improve worldwide detection

of nuclear explosions and monitor compliance with the proposed

Comprehensive Test Ban Treaty.

Continued Upgrading of BMR

The Budget provides for an increase in the number of BMRs staff

in support of resource assessment and geoscience database

activities, in addition to increased staff resources for the

Continental Margins Program. BMRs Resource Assessment Division

has prime responsibility for the assessment of Australia's

petroleum and mineral resources and the provision of scientific

and technical advice in relation to the exploration for, and

development of, these resources.  The additional staff in this

crucial area will allow the Division to meet the increased

demand for geoscientific and technical advice concerning

Australia's mineral resources and resource potential.

Additional staff for geoscience database activities will enable

BMR to fulfil its role as the national source of geoscience

data, and to co-ordinate geoscience database activity by

government agencies in Australia.

Funds are also provided for contract drilling to augment BMRs

current drilling capacity and for the continued upgrading of

BMRs plant and equipment. The contract drilling will test deep

structures in comparatively unknown regions of Australia in

collaboration with extensive geophysical and geological

research as a basis for fossil fuel and mineral exploration.

Top priority in upgrading BMRs plant and equipment will be the

19.

purchase of part of a new state of the art seismic acquisition

system. The new system will be used to image detailed

structures for onshore sedimentary basin analysis, a major

thrust in BMRs research program, in support of geological

research and deep stratigraphic drilling.

So as to encourage an adequate and sustained supply of

geoscientists, a post-doctoral fellowship scheme will be

established and administered by BMR. The fellowships will be

for two years' duration and be tenable in Australian

institutions. They will be used as a means of developing

expertise in fields that require strengthening in BMR, with

candidates working on joint research projects with BMR staff.

Two awards will be offered each year, a maximum of four Fellows

being employed at any one time.

The Government has agreed to the purchase of a scientific

applications computer for BMR in 1985-86 to help the

implementation of BMRs new role in research and as a

geoscientific data repository. The new computer will have

particular relevance to BMRs Petroleum and Minerals Resource

Assessment Program, as well as providing essential scientific

computing services for the majority of BMRs research programs.

The new system will be designed to meet current and known

future needs, with provisions for expansion to handle

additional research projects at a later date.

Contact Officer: Dr W.M. McElhinny Phone:  (062) 499600 (work)

(062) 863448 (home)

