Boosting investment in land transport infrastructure Mr Speaker, a high quality transport network underpins our nation's productivity, economic growth and prosperity.
The Government has a strategic plan to develop this network called AusLink.
We have invested $15.8 billion in road and rail projects like the Pacific Highway, the Deer Park Bypass, and the Caboolture Motorway.
Tonight I am announcing that the Government will boost its investment in road and rail infrastructure with the second AusLink plan and total funding of $22.3 billion over five years from 2009‑10.
The National Network of road and rail is critical to our economy and provides the link between Australia's major population and economic centres. It is the link for our exports to the world.
AusLink 2 will help reduce accidents on Australian roads. The Black Spot Programme will increase to $60 million per annum over the five years from 2009‑10. The Roads to Recovery Programme constructs and maintains local roads and will be funded with $1.8 billion. The Strategic Regional Programme supports the growth of regional industry and will be allocated $300 million.
In order to bring forward construction of some of these strategic regional roads I am announcing tonight an additional $250 million of supplementary funding to be paid to local councils before June 30.
Economic outlook Australia has now recorded the longest economic expansion in its history. Unemployment is at a 30 year low.
I pay tribute to the enterprise of Australia's small business people and the hard work of employees who can share credit for this standout performance.
The orderly adjustment to the current strength in the terms of trade demonstrates the flexibility we have now built in the Australian economy.
As a result, inflation is forecast to be 2½ per cent in 2007‑08.
Overall, GDP growth is forecast to be 3¾ per cent in 2007‑08, reflecting an assumed return to average seasonal conditions in the farm sector and a partial recovery from the drought.
Business investment has grown strongly in recent years, and is now at its highest level as a share of GDP in 32 years. This will boost capacity in the years ahead.
This Budget — with its investment in education, skills, in road and rail, and sharper work incentives will add to that capacity. This investment will drive further economic growth.
We must now lock in the progress of the last decade if we want to keep our living standards high. From this position we can step out to meet the challenges of the future with purpose and confidence.
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