Major changes to the way the Australian Government funds roads and other infrastructure have been announced, following a review of its infrastructure investment program.
Infrastructure, transport, regional development and local government minister Catherine King says the Government’s new infrastructure policy statement committed it to delivering nationally significant infrastructure, according to the Australian Trucking Association (ATA).
Projects will need to have at least two of these characteristics – an Australian Government contribution of at least $250 million, alignment with Government priorities outlined in the Infrastructure Policy Statement, situated on or connected to the National Land Transport Network and/or other key freight routes, and supporting other emerging or broader national priorities such as critical minerals.
King says the Government had made decisions to no longer provide funding to some projects and she released a list of project changes.
“This includes projects that were not realistically going to be delivered with the funding available, have made little to no progress over a significant amount of time, and projects that do not align with Commonwealth or state and territory priorities,” she explains.
ATA member association NatRoad chief executive Warren Clark welcomes the Government’s aim of taking the politics out of road funding decisions and reining in cost blow-outs, says the ATA.
“Governments need more effective infrastructure spending and reforms such as implementing service level standards,” says Clark.
Queensland Trucking Association chief executive Gary Mahon says the Government’s decision to stall funding for the inland freight route would severely constrain productivity in Queensland.
“The practical impacts for our economy of not investing in road infrastructure represents higher costs of doing business, higher cost of living, decreased efficiency and productivity and delayed business expansion activities and a reduction in liveability of our regions and in turn, their workforces,” Mahon says.
ATA chair David Smith says industry should have more say in road infrastructure planning to avoid future cost blow outs.
“Unnecessary or excessive road infrastructure spending is reflected in our truck registration and road user charges,” he adds.
“It makes sense for the Government to review the overall infrastructure pipeline to ensure it is affordable.
“However, this also means that important trucking projects have been cut,” says Smith.
“To avoid future cost blow outs, the ATA calls on governments at all levels to properly consult industry in determining the type and quality of the road infrastructure that we pay for.
“Agreed longer-term infrastructure plans will deliver better road infrastructure at a lower cost.”
