BUILDING OUR ECONOMY.

4 May 2019

Lord Mayor Sally Capp City of Melbourne lord mavor@ melbou rne.vic.gov.a u

Dear Lord Mayor,

Thank you for the opportunity to provide the views of the Morrison Government on important issues facing your members. A response to your questions is attached.

This election will have real consequences for Australia's economy and our future. This year, for the first time in more than a decade, the Government will deliver a Budget surplus.

Our plan for a stronger economy will: L. Create 1.25 million more jobs over the next five years' 2. Maintain budget surpluses and pay down debt. 3. Deliver tax relief to encourage and reward hard working Australians. 4. Guarantee increased investments for schools, hospitals and roads. 5. Keep Australians safe and our borders secure.

The alternative at this election is Mr Shorten. Labor's risky agenda includes billion of dollars of higher taxes - on retirees, housing, incomes, investments, family businesses, electricity and more.

Thank you for communicating our response to your members.

You incerely,

Andrew Hirst Federal Director MORRISON GOVERNMENT RESPONSE TO THE CITY OF MELBOURNE

Climate and environment

L. Do you understand and accept the scientific consensus on ? lf so what are your policies to ensure climate mitigation pathways compatible with limiting global temperature rises to no more than 1.5C, including in relation to investment in renewables and industrial carbon emissions regulation?

Climate change is a global problem that requires a global solution. The Morrison Government is committed to Australia playing its part in that global solution to reduce emissions.

Under the Morrison Government, Australia's emissions are currently at their lowest level on a per capita and GDP basis in 28 years. Australia contributes to just over I per cent of global emissions. The Morrison Government is committed to Australia continuingto play its part in reducing emissions

The Morrison Government's 2030 target to reduce emissions by 26 to 28 per cent below 2005 levels is responsible and achievable. This target will see a reduction in emissions per person halve by 2030. This is one of the strongest efforts among G20 countries.

The Morrison Government's Climate Solutions Package is a comprehensive, fully costed, 53.5 billion plan, over the next decade to deliver on Australia's 2030 emissions reduction targets. Our plan will realise real reductions in emissions and see Australia meet and beat our international climate commitments, unlike Labor, which has released an uncosted, unachievable and nonsensical "plan" with no detail about how they plan to achieve emissions reduction.

2. Will you legislate a regulatory framework for product stewardship, holding retailers and manufacturers accountable for managing their waste, and also provide national coordination and support for allwaste reduction and management including through new large scale recycling infrastructure?

A re-elected Morrison Government will implement a comprehensive St6Z million Australian Recycling lnvestment plan to increase Australia's recycling rates, tackle plastic waste and litter, accelerate work on a new battery recycling scheme and continue action to halve food waste by 2030.

The Morrison government will support a range of measures strengthen Australia's recycling industry, including: . A new S100 million Australian Recycling lnvestment Fund through the Clean Energy Finance Corporation to support the manufacturing of lower emissions and energy- efficient recycled content products, such as recycled content plastics and paper/pulp.

1 S20 million for a new Product Stewardship lnvestment Fund to accelerate work on new recycling schemes, including for batteries, electrical and electronic products, photovoltaic systems, and plastic oil containers. a Working with Planet Ark and the Australian Packaging Covenant Organisation with up to 51.6 million to establish a Circular Economy Hub to drive innovation and establish an online marketplace to match buyers and sellers of waste. a Supporting the Australian Packaging Covenant Organisation to deliver increased recycling rates for packaging waste, with up to S1.1 million for consumer education. a Continue working to halve food waste by 2030 under our National Food Waste Strategy, with an additional 5500,000 to support the delivery of a Fight Food Waste campaign by OzHarvest. Allocate SZ0 m¡ll¡on through a special round of the Cooperative Research Centres Projects (CRC-P) to find new and innovative solutions to plastic recycling and waste, including new ways of incorporating recycled plastics in manufacturing and construction.

By keeping our economy strong, the Morrison Government can cont¡nue investing in our environment. Australia's environment cannot be supported under Labor's economy- wrecking plans. lf you can't manage the economy and the Budget, then you can't invest in the environment. You can read more about Our Plan for a Cleaner Environment here:

https ://www. I i b e ra l. o rs. a u/ou r-p I a n-cl ea n er-e nvi ron m ent

3. Will you instigate a national funding scheme dedicated to halt the loss of biodiversity and threatened species in urban areas through funding'nature in cities' programs?

The established Australia's first Threatened Species Commissioner and first Threatened Species Strategy - with ambitious targets including to improve the trajectories for 2O priority mammals and birds and 30 plants. We have provided substantial funding to protect threatened species including through an investment of over 51 billion in the National Landcare Program.

The Morrison Government has committed S1OO mill¡on in the 2OL9-20 Budget to a new Environment Restoration Fund to support major environmental projects that deliver lasting conservation benefits. This is the type of investment that is only made possible through a strong economy and responsible budget management.

The fund will be a vehicle for national leadership on emerging and long-term environmental issues, building on our Sf b¡ll¡on National Landcare Program. Funding will be provided for a broad range of environmental restoration and protection projects, built around three key priorities: . Cleaning up and protecting Australia's coasts, oceans and waterways. . Protecting threatened and migratory species and their habitats. . lncreasing recycling and reducing waste.

2 Transport

4. Do you accept that the Victorian share of Commonwealth infrastructure funding has been far too low for too long, and will you fast-track majority share funding for vital infrastructure projects Airport Rail, Metro Rail 2 and Fishermans Bend Light Rail? What is your proposed expenditure by year for each of these three projects?

The Coalition has made over S27 billion in commitments to Victorian transport infrastructure since 20L3.lnvestments like these can only be made because our plan for a stronger economy is working.

The Morrison Government has a 10-year infrastructure pipeline recognising that major projects take many years to plan, design and deliver. A L0-year pipeline provides certainty for state governments and industry about where the will be investing over the longer-term, giving them the certainty to do necessary preparatory work, to make investments in new capacity and workforce and allow scheduling of works in what is already a very busy construction market in Melbourne.

Funding profiles represent our current estimate of when these new projects will commence, which is subject to further consultation with the Victorian governments. These are not Commonwealth assets and it is the responsibility of the state government to do the planning and capital works. lf the Victorian can deliver these projects earlier than has been estimated in the Budget, then the funding will be paid sooner.

Funding profiles for all projects in the Budget have been tabled at Senate Estimates, and will be made publicly on the federal financial relations websitel as usual, once the Victorian governments has agreed to accept our support for these projects. These estimates are updated over time as Victoria's progress with project delivery becomes more certain.

5. Will you review and replace regulations and directives to CASA and Airservices Australia to ensure that non-emergency flight amenity impacts over built up areas can be effectively monitored, managed and - where they have significant amenity and safety impacts such as occurs in the vicinity of the Yarra River in the inner city - minimised?

The Morrison Government remains fully committed to ensuring the safe and effective operation of airports whilst continuing to improve the management of impacts, such as aircraft noise, particularly for those communities living close to airports or flight paths. Both Airservices and the Civil Aviation Safety Authority (CASA) have legislated obligations to seek to minimise the environmental impacts of aircraft wherever possible. Airservices Australia has a public consultation process for major airport flight path changes and information can be found here.

http ://www.federa lfinancialrelations.gov.au/

3 Many areas of Melbourne experience some degree of aircraft noise, and this will inevitably continue as aviation infrastructure expands to support the growing economy and population of the city. Between the three metropolitan airports (Tullamarine, Essendon and Moorabbin), there are currently around 1,600 aircraft movements on average each day.

The Senate Rural and RegionalAffairs and Transport Legislation Committee did not support the passage of the recent Air Services Amendment Bill 201.8 which focused on restricting flights in areas around East Melbourne, and acknowledged that a number of steps were already being taken to improve engagement with communities affected by aircraft noise around Melbourne.

One of the key proposals of the Bill introduced by the Greens, was to exclude all aircraft movements from one area of the city. The Morrison Government considers this to be an unreasonable proposition which would have serious safety implications and severely impact the efficient operation of Melbourne's airports, increase delays, increase fuel burn and consequently environ mental emissions.

It would also unreasonably constra¡n aviation activities which support our economy. CASA and Airservices will continue to work collaboratively with industry and other Commonwealth and state level government agencies to minimise noise impacts on the community where possible.

Social security and community services

6. Will you greatly increase the funding available under a new National Housing and Homelessness Agreement, and urgently create a National Homelessness Strategy and allocate sufficient funding to its implementation?

As part of the 2077-78 Budget, the Coalition announced a comprehensive housing affordability plan designed to improve housing outcomes for all Australians.

This includes: o the National Housing and Homelessness Agreement, which commenced on l July 2018 and will improve accountability and transparency for housing and homelessness outcomes - providing more than S7.5 billion over five years, which includes an additional S0ZO million in specific funding for homelessness services, which must be matched by the state governments. o the First Home Super Saver Scheme to help Australians buy their first home (estimated cost of 5250 millionlor 2O!7-2I); o the 5t b¡ll¡on National Housing lnfrastructure Facility and the National Housing Finance and lnvestment Corporation which will help to unlock new housing supply including social housing; o strengthening regulation of the community housing sector to support its capacity to grow; . 56 million to support the Homes for Homes initiative, which aims to raise funds for social and affordable housing;

4 a StO m¡ll¡on over L0 years to develop social impact investments that help young people at risk of homelessness; a releasing surplus Commonwealth land for housing and the Australian Government property register; and a a variety of tax, superannuation and foreign investment changes aimed to help Australians meet their housing needs.

The Morrison Government continues to support those in need in the community by providing around S+.S b¡llion each year in Commonwealth Rent Assistance to more than 1.3 million individuals and families.

On 11 February 20L9, the Morrison Government announced that it will invest S78 million to protect women and children escaping family and domestic violence. This investment includes: o 560 million program in capital grants to eligible organisations to provide new or expanded emergency accommodation facilities for women and children escaping family and domestic violence; and o a further St8 m¡ll¡on to continue the Commonwealth's investment in the Keeping Women Safe in their Homes program which provides security upgrades and safety planning so women and children can remain in their own homes, if it is safe to do so.

7. Will you reverse the assessment changes to the Status Resolution Support Services (SRSSI program and provide adequate income and case management support for people seeking asylum while they seek sustainable employment?

The Status Resolution Support Services (SRSS) is designed to provide short-term, tailored support to those who have demonstrated barriers to resolv¡ng their immigration status.

8. Will you reinstate the ongoing operational funding for adventure playground community hubs that support healthy communities with a focus on disadvantaged children, which was str¡pped in the 2014 budget? (Federal funding was removed from the Venny, City of Melbourne, 5129,000 p.a. indexed; Cubbies in Fitzroy, City of Yarra, 5200,000; and Prahran playground, City of Stonnington, S125,000.1

Funding for playgrounds is the responsibility of local governments.

9. Will you commit to a comprehensive review of welfare policies and a reform of Centrelink practices, in particular Proof of ldentity practices, to ensure homelessness is not exacerbated and that the most vulnerable people in our cities can access social security?

The Morrison Government regularly monitors its policies relating to social services payments and programs and appreciates receiving information from citizens about how policies can be improved. The common documents used by Centrelink to confirm proof of identity are available online.2

2 https://www.humanservices.gov.au/individuals/enablers/confirm-vour-identitv

5 lf an individual is not in possession of these documents, Centrelink has a range of other ways that proof of identity can be confirmed to ensure people in need can access social security payments, subject to meeting eligibility criteria.

Education

10. W¡ll you review the National Strategy for International Education and how will you reduce unscrupulous recruitment practices by educational institutions?

ln 20L6, the Coalition Iaunched the National Strategy for lnternational Education 2025.The Strategy's goals and act¡ons have been developed to guide Australia's international education sector to be more innovative, future-focused and globally engaged. The Strategy is supported by 53 million a year through the Enøbling Growth and lnnovotion (EGI) program.

The Strategy is aimed at driving national effort, strengthening the fundamentals of Australia's education and training system (including regulatory, quality assurance and consumer protection frameworks) and compete globally through promoting Australia as a high quafity international education destination.

11. lmplementation of the strategy is overseen by the Council for lnternational Education, comprised of six Australian Government Ministers with portfolio responsibilities for international education and eleven international education sector experts. Will you reduce international student working visa restrictions to enable greater employability?

Australia's visa settings are a key component of the global competitiveness of our international education sector. The Morrison Government is undertaking a long-term program of change to transform Australia's visa system to make it easier to understand, easier to navigate and more responsive to our economic, social and security interests.

The Morrison Government is also encouraging international students to enrol in a regional university, and encouraging them to stay in regional Australia for longer, through providing an extra year of post-study work rights on the Temporary Graduate (subclass 485) visa. lnternational students who complete a Bachelor or higher-level qualification at a regional campus will be able to access an additional year of post-study work rights when they can demonstrate ongoing residence in a regional area.

6 12. W¡ll you prov¡de a pol¡cy pos¡t¡on and support for the role of international students and their contribution beyond the period they study in a city? A discussion paper covering managing population growth and the potential productivity uplift and connection to the future success of a city and retention of its international student population is recommended lnternational education was Australia's fourth largest export in 2018, and its largest services export, contributing a total of 534.9 billion in 2O78, up from $gO.g billion in 20L7.

The presence of large numbers of international students in Australia creates jobs, not only in the education sector. ln 2018, international education was estimated to be supporting more than 24O,OOO full-time equivalent jobs nationally. Only around 1-6 per cent of international students become permanent residents at the end of their studies.

Employment

13. What are your plans to ensure a fair share of Commonwealth agency jobs and headquarter locations in Melbourne?

Commonwealth public service positions are dispersed around Australia, to ensure services are available to all Australians where they need them. There are 20,860 public service positions currently based in Melbourne, compared to l-8,688 in Sydney (evident in the latest Public Service Commission data from December 20L8).

Changes to locations of agencies are decided based on changes in policy priorities and based on careful business case assessments about where human resources are best deployed. These decisions have regard to property costs and access to relevant services like ICT and professional expertise in different localities.

Aboriginal Melbourne

14. W¡ll you redouble the Commonwealths efforts to close the gap and ensure equality of outcomes for Aboriginal people across major indicators of health, education, training, housing, employment and living standards in the next decade?

The Morrison Government has a formal partnership with the Coalition of lndigenous Peaks organisations, and will work with them and state and territory governments to finalise the Closing the Gap framework and targets by mid-year.

The Morrison Government is committed to ensuring that the next phase of Closing the Gap is developed as a genuine partnership between all governments and Aboriginal and Torres Strait lslander people. The partnership agreement recognises that in order to effect real change governments must work collaboratively and in genuine, formal partnership with Aboriginal and Torres Strait lslander peoples as they are the essential agents of change.

To support this historic partnership, we will deliver S+.6 m¡ll¡on to the Coalition of Aboriginal and Torres Strait lslander Peak Organisations to ensure the representatives of Aboriginal

7 and Torres Strait lslander Australians are able to engage and negotiate as equal partners with governments to design and monitor Closing the Gap. The refreshed Closing the Gap framework and targets will be finalised through the Joint Council by mid-2019, ahead of endorsement by COAG.

Arts

15. W¡ll you fully restore indexed Australia Council funding (last year's restoration having fallen short by at least $f¿ml and commit to avoid Ministerial interference in arts funding programs?

The Morrison Government's Budget provides $2.9 billion in funding for the arts and Australia's cultural institutions over the next four years. ln 2OL9-20, the Morrison Government is investing approximately $748.9 million in the arts, with |ZtZ.t million going to the Australia Council to support Australian art¡sts and arts organisations create and present art that is accessed by audiences across Australia and overseas.

Funding for the arts under the Coalition is comparable to the previous government, with slightly higher average annual funding than under Labor. Australia Council funding under the Coalition Government has also been higher on average than under the Labor Government.

The Australia Council's most recent four year funding round is actually higher - at SZ8 million - than the previous investment in operational funding for the small to medium arts sector, which was around S22 million.

Planning

16. As Melbourne is the fastest growing city in the country, will you work with the City of Melbourne, and the Victorian Government where appropriate, to pursue a City Dealfor Melbourne?

The Morrison Government has committed to delivering City Deals for all of Australia's capital cities. ln Victoria, we have already worked with the State and Local Governments to deliver the Geelong City Deal which was put forward as a priority.

Our commitment to the Geelong City Deal stands at S184 million and includes investments in the CBD and throughout surrounding coastal areas, including the Great Ocean Road region.

We look forward to working with all State Governments and respective Local Governments on future City Deals, including in Melbourne.

I 17. Given the national significance of the financial implications of cladding rectification for building owners, will you establish a rectification relief fund, providing access to grants and low or interest free loans to expedite unsafe cladding removal?

The Morrison Government takes seriously the risks posed by the use of combustible cladding in the built environment. While the Commonwealth does not have constitutional power to regulate buildings, the Liberal National Government has been providing national leadership with states and territories through the Building Ministers' Forum (BMF) on the most effective ways to prevent the unsafe use of combustible cladding.

The National Construction Code has always restricted the use of combustible cladding on high-rise buildings. The inappropriate use of cladding is an issue of non-compliance with the code and state and territory building regulations. Enforcement of these rules is the responsibility of state and territory governments.

The BMF commissioned the 2078 Building Confidence report on a national best practice modelfor compliance and enforcement forthe building and construction industry and has developed an implementation plan providing a roadmap for reform. The BMF also agreed the states and territories would explicitly prevent the use of combustible cladding on buildings of more than three storeys, and has given in-principle agreement to expand this to a total ban on the unsafe use of these products, subjectto an impact assessment.

The Government also requested all state and territory governments undertake a series of cladding audits and reviews to identify and rectify non-compliant cladding.

18. W¡ll you comm¡t to a level of support funding to assist in proiects that sustain adequate levels of care for World Heritage sites?

The Morrison Government is committed to protecting and investing in Australia's World and National Heritage areas. Through the Australian Heritage Grants program, we are providing ongoing funding of more than 55 million each year to improve management and conservation of National Heritage-listed places, which includes sites on the World Heritage list. Through the 2019-20 Budget, we also announced an additional $9 million to control Yellow Crazy Ants in the Wet Tropics World Heritage Area, and up to $216 million for upgrading facilities in Kakadu National Park.

This funding comes on top of the S¿Z m¡llion we have already invested in 11 of our World Heritage sites, and the record levels of fundingfor protection of the Great Barrier Reef World Heritage area, for which we are investing more than 5L.2 billion. When Labor was last in government, UNESCO placed the Great Barrier Reef on its World Heritage in-danger 'watch-list'. lt was the Coalition that got the Reef removed after we put an end to all capital dredge spoil disposal in the Reef, and established our Reef 2050 Plan which was endorsed by the World Heritage Committee and has been praised by the OECD'

9 19. W¡ll you rev¡ew the national economic, social and financial implications of further development of the metropolitan fringes in comparison to urban consolidation?

The Morrison Government has developed a population plan for Australia's future population which will ease pressure on big capital cities while supporting the growth of smaller cities and regions. Australia is growing rapidly. We grew by around 4 million people in the last ten years and this plan will ease the population pressures. This is supported by City and Regional Deals which are developed to support the unique characteristics of each urban centre or region.

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