Government grants: Reshuffling the cards

With the Government keen to return to surplus by 2012-13, there certainly doesn’t seem to be much cash to spare on grants.

The first budget of the Gillard Government cuts over $2.5 billion from environmental grant programs alone. Much of that funding is being deferred and the rest is being redirected in support for the natural disaster relief efforts. The promised environmental support measures for business seem to be missing, although it is likely that the full measure of environmental assistance will be announced with details of the carbon tax – also not factored into this budget.

The key focus for business support seems to be training and skills development. The rest of the budget seems to be a reshuffling exercise aimed at incurring no additional expense. Even programs cut last budget are counted as savings again, without much to replace them.

Training and employment

The clear winner from the budget is training and employment, through the Building Australia’s Future Workforce initiative, with $500 million in funding and over 130,000 training places.

The focus of all this funding is new employment services and assistance, apprentice incentives and disability assistance. 16,000 skilled immigrants will be sourced to address skill shortages. The large employment and training program, Innovation Fund has been closed along with the Productivity Places Program.

Renewable energy and climate change

The budget has provided both reduction in funding for renewable energy research and assistance programs, while at the same time creating new programs, including:

• National CO2 Infrastructure Plan: $60.9 million
• USA – Australia Solar Research Collaboration: $50 million

Continued Programs with additional funding:

• Emerging Renewables (through ACRE): $104 million
• Renewable Energy Venture Capital Fund (through ACRE): 108.7 Million
• Solar Cities: $13.7 million
• A Cleaner Future for Power Stations: $4 million

Redirected or Reduced Funding:

• Green Car Innovation Fund
• Cleaner Car Rebate
• Carbon Capture and Storage Flagships
• Global Carbon Capture & Storage
• Low Emissions Coal Initiative

Regional development

The Government will provide $1.8 billion over six years from the Health and Hospitals Fund (HHF) to support the development of health infrastructure in regional areas.

There is also focus on the sustainability of regional cities with support for universities ($500 million), affordable housing, infrastructure and public services. An additional $28 million has been provided to the Regional Aviation Access Program to continue to assist with regional airport upgrades to airstrips and infrastructure.

Adrian Spencer is the CEO of grant consultancy and advisory firm, GrantReady.