Transport InfrastructureThe Federal Government will invest more...

Transport Infrastructure
The Federal Government will invest more than $22 billion in road and rail from 2009, in what it describes as a record investment in land transport infrastructure.

The Government has not revealed where the money will be spent.

The 2007-08 budget did not mention pressing projects such as a feasibility study for the Melbourne to Brisbane freight link, or any acceleration of a connection between the F3 and the Sydney Orbital roadway.

The $22.3 billion will fund the second stage of the AusLink program over five years from mid-2009, and include $16.8 billion for road and rail projects as well as funding for the black spots program.

This financial year, the Government will also give an extra $250 million to local councils who have applied for transport infrastructure grants. It brings the cost of the first stage of AusLink to $15.8 billion.

It's the second year in a row where there has been an advance payment to local government in the current tax year.

This spending will go a long way to infilling an expected slowdown in spending on infrastructure from 2010 onwards. That was thought to be a major factor in forecasts of a downturn for the civil engineering sector.

Budget's road, rail funding wins praise
Local government, railway and trucking groups have welcomed the Federal Budget's $22 billion funding boost for road and rail upgrades.

Improvements to major infrastructure, including roads, have been named as a priority in last night's Budget.

Australian Local Government Association president Paul Bell says the $22 billion will give local councils much-needed revenue for urgent projects.

"We were surprised at what the Government has offered and we're certainly pretty ecstatic about the road funding that's been given," he said.

Australian Trucking Association spokesman Stuart St Clair says the Budget's increased commitment to road infrastructure will help businesses which depend on the nation's highways being in good condition.

"It's a very strong outcome," he said.

"We've lobbied very hard to ensure that the Australian Government understands that they need to keep the pressure up as far as funding is concerned for the network.

"We find that, in particular, the amount of money that's been allocated, $22.3 billion, is a great step forward."

Australasian Railway Association spokesman Bryan Nye has welcomed the Budget's extra Auslink funding, which he says will help some important rail projects.

"One of the things in particular was the funding for the scoping study that takes the inland railway from Melbourne to Brisbane to the next step," he said.

"That's something we'd asked for and it's quite welcome because it's actually doing the land acquisition, the environmental impacts and actually going to the next stage, which will change the whole rail landscape in the east coast."

But Association of Australian Ports and Marine Authorities spokesman David Anderson says it is unclear whether road access to ports will improve because of the Budget's increased commitment to land transport.

"We've been engaging with the Government for quite some time to get more of the Auslink funds devoted to ensuring that those links are more efficient," he said.

"That's not specifically addressed in the Budget."