A PATTERN of primary industries underspending has been continued in this year’s state Budget.
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The total yearly spend by Department of Primary Industries has fallen by $200 million since 2013-14. Total budgeted allocation for 2016-17 fell $60m, from $1.05 billion last year, to $940m this year.
If DPI spends its entire $940m budget allocation in 2016-17, a three-year trend of shrinking primary industries spending would be reversed.
Changes to grants and funding are behind an overall cut of $60m from its budget for 2016-17, DPI said.
Service delivery, listed as operational costs in Budget papers, is a key factor in the underspending. Actual operational spending has has fallen short by a total of $279m during the past three years.
Operational costs in the past financial year alone received $107m less than forecast.
The department has also exceeded forecast spending on employee-related costs by $17m across the past two years.
During the past financial year DPI operated with 136 fewer staff, which is set to rise by 67 in 2016-17.
A DPI spokesman said the decrease in budget allocation “is due to a combination of factors”. He cited changes to reporting methodology and trust funds excised from DPI’s budget.
“For example, $34m for funds and trusts are reported separately for the 2016-17 Budget and are no longer reported in the Primary Industries Service Group,” the spokesman said.
The 2015-16 Budget included $130m for state priority projects, which were allocated $75m this financial year.
“This variation is due to delays in the implementation or completion of 15 to 16 projects, which are ongoing.”
DPI is responsible for Local Land Services (LLS), which was identified by farm groups as a significant issue for this year’s Budget.
Many had hoped the service would be bolstered in preparation for key new legislation as the government delivers on plans to expand the role of the ratepayer service.
LLS was allocated $159m for 2016-17 – down $2.3m from the previous year, and $4.2 less than the total 2015-16 spend.
NSW Farmers president Derek Schoen said the budget lacked the commitment to LLS funding his association had hoped for.
“We are not confident government will be able to roll out biodiversity reforms to farmers as promised on January 1, 2017,” Mr Schoen said.
LLS is will be the lead agency if proposed land management and biodiversity reforms are passed by parliament.
