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SYDNEY -- Australia's Labor Government has announced funding for new federal super-agency Screen Australia of A$103 million ($97 million) -- $11 million less than the budgets of the three agencies it replaced -- for the year beginning July 1.

Tuesday's cut breaks a pledge by the former conservative government to retain funding at current levels for the first few years of Screen Australia, which merges the Film Finance Corp., docu producer Film Australia and development and culture agency the Australian Film Commission.

The National Film and Sound Archive is being split from the AFC's control and will have a separate budget of $98 million over four years.

"The creation of Screen Australia heralds a new era in Australian film and television and will assist in expanding the potential growth of the sector and increasing employment opportunities for those working in the industry," said Arts Minister Peter Garrett, the former frontman for rock group Midnight Oil.

The previous government's decision to shift the AFC's research division to the Australian Film, Television and Radio School has been reversed. It will now stay within Screen Australia.