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Abstract
The Natural Heritage Trust and the National Action Plan for Salinity and Water Quality were
major national policies focused on land and water degradation and nature conservation in
Australia. These programs fell a long way short of achieving their stated goals. It is proposed that
to be able to spend their considerable public funds in cost effective ways, they would have
needed a number of particular characteristics. Among other things, they needed to prioritise
investments well, consistent with an appropriate role of government, and based on analyses that
integrated good quality bio-physical and socio-economic information. They needed to select
policy mechanisms that would be appropriate for the circumstances. The incentives created by
program rules and procedures should have encouraged environmental managers responsible for
program delivery to pursue environmental outcomes cost-effectively. However, the programs did
not satisfy these criteria. Prospects for improving matters in the new national program, Caring for
our Country, are discussed. It will be difficult to deliver outcomes cost-effectively in the new
program for reasons that include capacity constraints in government agencies, time pressures on
policy development, and political priorities of governments.