Investment funding allocation to CMAs in 2008-09
   Allocating NRM funding between NSW CMAs

The NRC recommended funding process can be used to allocate funding from any source, against any set of investment objectives.

Advice provided

Through a Terms of Reference, the Premier of NSW asked the NRC to provide advice on how available NSW investment funding should be allocated across CMAs in 2008-09.

NRC's recommendations

The NRC’s recommendations, delivered in early April 2008, contained budget-in-confidence information that could not be publicly released at that time. The NRC applied the funding allocation process developed in its earlier report Allocating NRM funding between NSW Catchment Management Authorities.

While this report addresses decisions that were made last year, the NRC is publishing its recommendations to ensure ongoing transparency of our advice to the Government. The report also provides a useful illustration of how the six-stage funding allocation process can be applied in practice.

The NRC recommended that the NSW Government:

• Allocate funding to CMAs for 2008-09 to offset other sources of funding and so provide a better overall balance of funds (Option 2 in the report). This allocation was conditional upon the NSW Government being satisfied that alternative sources of funding would allow CMAs to undertake new activities in 2008-09 that contribute to all state targets. If not, then an independent approach was recommended (Option 1 in the report).
• Make Sydney Metropolitan CMA’s funding conditional on the Minister’s approval of a quality catchment action plan (CAP) in order to mitigate the risk that new funding is invested in activities that will not promote the state-wide targets.

The NSW Government adopted the independent approach and allocated new funding according to Option 1 in the report.

Advice provided

Through a Terms of Reference, the Premier of NSW asked the NRC to provide advice on how natural resource management funding can be allocated between CMAs that would maximise the likelihood of achieving improvements in natural resource condition across NSW.

The NRC provided advice in its report to the Government in April 2008.

NRC's recommendations

The NRC has recommended a six stage process for determining funding allocations. The process aims to maximise likely return on investment by basing allocations on the priorities of investing government(s) and the likely effectiveness of CMAs in delivering results. The process, and the assessments presented in the report can be adaptively managed and improved as better information becomes available.

In developing this advice the NRC held three consultation meetings with the stakeholders specified in the Terms of Reference, and sought submissions on a draft version of the report from those stakeholders. The NRC also obtained peer reviews of the recommendations to ensure they are sound and credible.

The NRC has outlined steps to implement its recommended process and has undertaken an assessment using these steps to illustrate how the process works.

Decision support tool

The six stage decision making process involves the use of a decision support tool to calculate possible proportional allocations. This is a test version of the tool (version 1.0) and the NRC welcomes any feedback. This version of the tool replicates the weightings, rankings and results presented in the report.

This tool should be considered in the context of the six stage process outlined in the report. It is not designed to give a definitive answer – it is part of the overall decision making process and any outputs of the modelling should be evaluated as described in the recommendation report.

The tool has been designed so that it can accept assessments against all of the state-wide targets, and so that it can be adapted to assess against any set of priorities.