THE Australian government faced a significant task to control the federal budget under difficult circumstances, but has delivered a budget that has largely met its election commitments, and is one the cotton industry can live with, according to Cotton Australia.
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Cotton Australia chief executive officer Adam Kay says the industry appreciates the government's investment in infrastructure to help rebuild the economy and work toward a surplus.
"While there are some cuts that will impact the agriculture sector, overall we are satisfied the importance of agriculture has been recognised," Mr Kay said.
"While it is also true that some areas of agriculture research will see reduced funding, we are pleased that the Cotton Research and Development Corporation (CRDC) - which is vitally important for our industry - has been spared substantial cuts.
"Cotton Australia will work with the government to ensure this continued investment in research and development will strengthen Australia's cotton industry.
"We are also happy the diesel fuel rebate has been matched to increases in the excise, and water buybacks under the Murray Darling Basin Plan have been capped at 1500 gigalitres.
Following is Cotton Australia's view on what the budget means specifically for cotton growers and agriculture in general:
Research and development
The government has allocated a $100 million increase over four years for the rural research and development corporations, and our own Cotton Research and Development Corportation (CRDC ) will be able to participate in the competitive grants program.
The CRDC is into the second year of its five-year Strategic Research and Development Plan 2013-18.
However, while the CRDC is in reasonable shape coming out of the budget, there will be cuts to the Rural Industries Research and Development Corporation (RIRDC), the Cooperative Research Centre Program, and CSIRO (to the tune of $111 million).
Infrastructure
The government will make significant investments, including roads with $40 billion in total set aside for infrastructure, of which $11 billion is new.
Importantly for cotton growers, there is $1.2 billion for the Toowoomba second crossing and $1.5 billion (plus a loan to NSW) to fast-track the West Connex development.
This will link Western NSW to Port Botany. There is also $350 million for the Roads to Recovery program, $200 million for the Black Spot program and $300 million for the inland rail freight link between Melbourne and Brisbane, which will pass through Narrabri and Moree.
Water
Government water buybacks under the Murray Darling Basin Plan have been capped at 1500 gigalitres. The National Water Commission will be axed, but we trust its functions will be taken up by the departments of agriculture or environment. A total of $4.5 billion (a reduction) will be provided during the next 10 years for the Sustainable Water Use and Infrastructure Program.
The government wants to save $407.6 million over six years from the Sustainable Rural Water Use and Infrastructure Program, with $189 million of that coming from the Menindee Lakes Project.
Cotton Australia understands the reduction in funding for Menindee reflects the design of the project rather than a retreat from a commitment to reconfigure it. Cotton Australia looks forward to a detailed briefing on the proposal, the expected water savings and expected third party impacts.
International commodity relationships
Support has been wound back with arrangements for payments of memberships to international commodity organisations, which include the International Cotton Advisory Council, to be drawn from research development corporation funding instead of direct appropriation. Funding cuts have also been made to other areas, including the Agricultural Advancing Australia - International Agricultural Corporation Program, and the International Agricultural Co-operation Program within DAFF was scrapped.
