more on fed govt infrastructure spending
from the australian...
$2bn for transport link-up Samantha Maiden January 19, 2004
AUSTRALIA'S roads, rail and ports will be upgraded in a $2billion nation-building project to integrate transport systems across state borders.
John Howard confirmed the funding deal yesterday, pledging infrastructure upgrades, tax cuts and a budget in surplus as he prepares for an election year.
The four-year funding deal - the biggest injection of new funding for land transport infrastructure in the nation's history - will be announced this week by Acting Prime Minister John Anderson.
Aimed at integrating and upgrading Australia's rail, road and ports system, the new funding is regarded as a "downpayment" towards AusLink, the 10-year national land transport infrastructure planning blueprint.
Mr Howard said the project would build on the new $1.3billion rail link between Adelaide and the Darwin ports - a "great bridge into Asia".
"Roads are a very important issue in a big country," Mr Howard said.
"It's an announcement that will relate to roads and infrastructure over a number of years into the future. It's more than $700 million.
"There will be a very heavy rural and regional emphasis. We've made a lot of progress with the rail link, to have this seamless freight-rail link all around Australia."
Road freight is expected to double by 2020, placing additional pressure on the nation's highways.
Mr Anderson secured the $2billion funding deal after a protracted battle to convince cabinet colleagues to invest more of the budget surplus in infrastructure.
It follows his repeated warnings that Government and the private sector must spend more on infrastructure or risk lost jobs and a "funding catch-up nightmare" for the next generation.
The new funding deal will outstrip the Roads to Recovery program, which distributed funds directly to local government for local road construction and repair.
Roads to Recovery, which expires in 2005, created 11,000 projects and offered $1.2billion to local councils. National highways and roads of national importance also secured an additional $400million.
Despite the big-spending transport plan, Mr Howard pledged yesterday that the federal budget would remain in surplus.
The latest land-transport infrastructure spending comes on top of the $2.4billion MedicarePlus reforms to increase bulk-billing.
"Commandment No1 is that we are not going into deficit," Mr Howard said. "We are keen to provide what should be provided for and, if we can, give the taxpayers back some of their money by way of tax cuts or benefits. How we do that and what combination is something we genuinely haven't decided.
"But the biggest threat a federal Labor government poses to Australia's economy is that they will throw their lot with the eight state and territory Labor governments and reregulate the labour market."
Mr Howard said the ALP's plan to reregulate the labour market and boost rights for casual workers would hurt small business. He predicted the issue would emerge as a major 2004 election theme.
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