Additional Comments by Coalition Members of the Committee

Additional Comments by Coalition Members of the Committee

1.1Coalition Members of the Standing Committee on Regional Development, Infrastructure and Transport note the inquiry’s Final Report and make the following additional comments.

1.2Chapter 3, Paragraph 10 relating to the Independent Strategic Review of the Infrastructure Investment Program (IIP)[1], Coalition Members note that as a result of the review:

  1. 37 projects will receive $6.6 billion in additional funding for state projects with cost overruns
  2. 11 projects in planning stages will continue and the funding allocated for construction will be held aside
  3. 50 projects will be removed from the IIP, valued at $7.4 billion
  4. 252 projects and funding allocations attributed to highway corridors for which a capped Commonwealth funding commitment is attributed to each corridor will require relevant state and territory governments to determine the viability of each project within the available funding resources.
    1. Coalition Members also note that at the time of writing the Government refuses to release the full report of the Review.
    2. In relation to Chapter 3 Paragraph 16 (Roads to Recovery Program (R2R)) Coalition Members note the following:
  1. The 2023-24 Budget does not continue funding for the Local Roads and Community Infrastructure (LRCI) program which previously provided $3.25 billion between July 2020 and June 2026 to local governments, and
  2. Roads and infrastructure funding to local governments will reduce over the forward estimates despite the announced increase to R2R. This is a result of the Government’s decision to allow the LRCI program to lapse at the end of the current 2023-24 phase 4 allocation.[2] The following table outlines an additional funding shortfall of $880 million over the 5 year period to 2028-29, compared with the 5 year period 2020-21 to 2024-25

  1. ALGA’s pre-Budget submission noted in their submission to the IIP review recommended, ‘making the Local Roads and Community Infrastructure Program permanent, as it has been extremely successful in supporting councils to renew and deliver new community and local road infrastructure across Australia improving liveability’. Noting that the LRCI program has been terminated ALGA has called on the Government to replace it
  2. The Government announcement of a new Safer Local Roads and Infrastructure Program includes funding to gradually increase to $200 million.[3] This new program replaces the current Bridges Renewal Program (BRP) and Heavy Vehicle Safety and Productivity Program (HVSPP) which, when combined were valued at $193.5 million per annum by 2026-27[4]

  1. Both the BRP and the HVSPP were ongoing investment programs designed specifically to improve the productivity and safety outcomes of heavy vehicle operations across Australia and to improve heavy vehicle access to the local road network through upgrades to bridge infrastructure. The two programs were targeted investments into first and last mile initiatives for heavy vehicles
  2. It is the understanding of the Coalition that there has been no consultation with the heavy vehicle industry regarding the abolition of the BRP and HVSPP programs
    1. Chapter 3, Paragraph 36, (Local Government investment) Coalition Members note the following:
  1. That the Australian Local Government Association’s Pre-Budget Submission requested an increase of additional funding to restore Financial Assistance Grants to at least one percent of Commonwealth taxation revenue
  2. The value of Financial Assistance Grants as a percentage of Commonwealth taxation revenue has halved over the past thirty years. In 2022-23, Australian councils will receive $2.9 billion in Federal Financial Assistance Grants, which is approximately 0.52 percent of Commonwealth taxation revenue (CTR).[5]
    1. In relation to Chapter 4 Paragraph 87 (Road assets and road safety) Coalition Members note the following:
  1. The Australian Automobile Association (AAA) has for some time been calling for the Commonwealth to establish a National Data Sharing Agreement with the states and territories to provide consistent metrics and reporting formats for data to be coordinated and made available at a national level to inform policy and investment in the road network across all levels of government
  2. The AAA’s submission to this inquiry suggests that negotiation of a new National Partnership Agreement on Land Transport Infrastructure Projects (due to expire 30 June 2024) should be leveraged to ensure that states and territories provide road safety and transport data to be eligible for road funding[6]
  3. Coalition members are supportive of the proposal for a National Data Sharing Agreement to be a condition of funding under the new National Partnership Agreement on Land Transport Infrastructure Projects.

Mr Tony Pasin MP

Federal Member for Barker

Mr Colin Boyce MP

Federal Member for Flynn

Hon Scott Buchholz MP

Federal Member for Wright

Footnotes

[1]https://www.infrastructure.gov.au/department/media/publications/independent-strategic-review-infrastructure-investment-program-executive-summary

[2]Department of Infrastructure et al, Portfolio Budget Statement, Budget 2022-23 (March) p. 56; Budget 2023-24 p. 62

[3]https://minister.infrastructure.gov.au/c-king/media-release/significant-boost-road-safety

[4]Budget 2023-24: Budget Paper 3

[5]https://alga.com.au/app/uploads/ALGA-Pre-Budget-Submission-2023-24.pdf

[6]Australian Automobile Association (AAA), Submission 62, p. 3

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