NRM boards take budget hit

The NRM Fund will be reduced by $900,000 annually, while regional service delivery will be cut by $5.3m in 2014-15 and at least two tree projects will lose a combined $2.2m.

A government spokesperson said the affected NRM boards would be consulted within the coming weeks to discuss how it would impact on their operations.

Natural resources comes under the umbrella of the Department of Environment, Water and Natural Resources, which will see its total annual budget cut by $56.2m next financial year.

Payments to the Murray-Darling Basin Authority will be reduced by $17.7m, groundwater and surface water monitoring stations will be brought offline for a saving of $900,000, and $8m less will be spent on water purchases for the SA River Murray Sustainability program.

The department has, however, received a $20.5m income increase thanks to revenue raised through the Save the River Murray Fund levy in 2013-14.

The spokesperson said the MDBA payment reduction was flagged in the 2012-13 mid-year review in response to the NSW government’s own plans to reduce funding.

DEWNR said at the time that SA would not pay any more than its own fair share, but if NSW reinstated their funding to the MDBA, SA would be prepared to reinstate its own.

The state government is also ramping up its push for unconventional gas extraction in regions like the South East.

Companies are being offered a five year deferral on all royalties on new gas wells, provided they go into production within the next five years.

Treasurer Tom Koutsantonis says he makes no apologies for the push.

"It’s not a royalty holiday. It’s a royalty deferral," he said.

"What we’re saying to them is, 'we understand the risks that you take'.

"Look at Santos in NSW, they have $1b invested there and it’s at risk because of government policy, Lock The Gate campaigns, and because some people seem to think gas comes from somewhere else.

"What we’re saying to these companies is that SA is a safe destination to invest and we recognise the risks that you’re taking."

Mr Koutsantonis said SA could be at the centre of a new energy "revolution" that has transformed the United States.

"If it happens to SA first, we’ll get the benefits and I make no apologies to it whatsoever," he said.

Job cuts to SARDI and Biosecurity SA have also been flagged in the budget.

Employee numbers at Biosecurity SA will fall from 186 to 173 and its budget will decrease by about $6m after being reduced by $1.9m in the last financial year.

This is largely a result of the completion of one-off programs, such as fruit fly eradication response, feral camel, rabbit and weed control, and the transition from eradication to management of Branched Broomrape.

SARDI will lose 13 full-time employees and its own budget will fall by about $3m, having already decreased by $1.4m last financial year.

A government spokesperson said voluntary severance packages at SARDI, which were allocated $600,000 next financial year, were expected to be less than previous years.

He said the reduced budget was mostly driven by the amount of income SARDI received from external sources and job cuts would be reflected by project funding.

"But everyone’s got their share of efficiencies to make so there’s going to be reductions there," he said.

Opposition Agriculture spokesperson David Ridgway said the job cuts to SARDI and Biosecurity SA "flew in the face" of the government's priorities.

"We have an agriculture minister in Leon Bignell who's rabidly opposed to GM, yet he's also going to cut funds to conventional research and plant breeding," he said.

"You can't have it both ways."

Mr Ridgway added that at $59.8m, appropriations for Agriculture, Food and Fisheries were the lowest they have been for 12 years.

The second lowest was last financial year at $67m.

"That's really alarming given that the government considers it is one of their seven strategic priorities, and the engine room to help drag SA out of the financial mess it's in," Mr Ridgway said.

The government stuck to its commitment to increase regional spending in the budget, with an increase to its Regional Development Fund from $1.6m a year to $15m/yr.

A one-off $10m Jobs Accelerator Fund has also been promised, and project funding for Regional Development Australia boards will double to $3m/yr for the next four years.