Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Hansard source

These measures will pass the House with the support of the opposition, and I envisage they will pass the House today. I thank the Treasurer and the Minister for Finance for our discussions today. It is the case that agreement has been reached. Labor sought and received an agreement that an additional $1.1 billion in Roads to Recovery funding for local government, which is the equivalent of the first two years of revenue from the fuel indexation, will be given to local government. This is very good news for rural and regional roads and local roads right across the country.

It is the case that the Abbott government has frozen the indexation of financial assistance grants which has resulted in a $925 million cut to local government over three years, but this will result in a $1.1 billion boost to local councils over the next two years, which I know is something local government will very much welcome. In fact, local has already welcomed it. The Australian Local Government Association in response to Labor's proposal to the government, before the government had announced its acceptance of Labor's proposal, said in a press release: 'The Australian Local Government Association welcomes and strongly supports the proposal today by the ALP to direct the revenue from the first two years of fuel excise indexation, estimated to be $1.1 billion, towards additional Roads to Recovery funding for local government.'

The president of the ALGA, Mayor Troy Pickard, said: 'We applaud the opposition's focus on local government and their recognition in this policy initiative of local government's important role in developing economies and creating jobs through projects funded through the Roads to Recovery program.' The president goes on to say: 'This initiative is particularly welcome at a time when local government is under financial pressure, following the decision to freeze indexation of financial assistance grants costing councils an estimated $925 million in the period to 2017-18.' So it is very clearly the case that local government recognises the initiative of the Labor Party today—the agreement which the Labor Party sought from the government—and what the government has provided is very welcome.

Of course mayors and councils right across the country have infrastructure programs that they have been hoping for and working towards. They have had them in the top drawer, ready for the day they would be able to fund them, a time when funding would be available from a higher level of government, federal or state. They can now be funded and built. And that is very important, because it is estimated that 11 per cent of the roads managed by councils across the country are in a poor or very poor condition. We talk about the need for infrastructure, and big infrastructure projects are very important. But what is also important is the infrastructure that is the responsibility of local government.

You have bridges across the country which are falling into disrepair. Trucks have to slow down on them or trucks over a certain weight are not allowed to go on them. You have country roads, which are very important—because our agricultural and regional products are moved around the country—falling into disrepair. This extra $1.1 billion, which the Labor Party insisted upon as part of our negotiations with the government, is very welcome. When the Labor Party goes into these discussions, we make sure that we have a positive dividend for the people of Australia at the end of those discussions.

That is in contrast to the Greens, who could not negotiate their way out of a paper bag. They negotiated with the government—and I use the word 'negotiated' lightly—they capitulated to the government on pensions, and in return they got six weeks extra discussion on the tax white paper, only to have the government completely rule out the thing they had asked for. That was only capped by their capitulation to the government on the debt limit—abolishing the debt limit—which they had railed against the government on. They had said, 'We want the Intergenerational report to deal with climate change'. The government agreed to that, and they got a couple of paragraphs in the Intergenerational reportone of which said, 'climate change might be good'. So: well done, Greens, for your negotiation strategy. That is not the approach taken by the Labor Party. We make sure that we have a positive benefit for the people of Australia from our discussions.

In effect, from next week, these funds will be available for local government. They will be applied to the road funding backlog to fix roads and to invest in infrastructure right across the country. The national infrastructure audit released just last month made the following point with respect to rural roads in particular:

Rural roads owned and operated by local councils are important for local economic activity, and are an important part of the nation's transport network, providing the 'first and/or last mile' of many land-based supply chains. There is evidence of a maintenance deficit across many of these roads. This is a particular issue for local governments in rural areas with large road networks and declining income bases.

But it is not just a matter for rural roads.

I note the Parliamentary Secretary to the shadow Treasurer, the member for Chifley, has joined us. Perhaps it was so that I could point out to the House that Blacktown City Council is one of the biggest beneficiaries in the country of the boost to Roads to Recovery. It is the largest council in New South Wales by population. And in fact the formula is one which particularly benefits Blacktown council. Because of population, kilometres of roads and the level of disadvantage, Blacktown council stands to be very big winner out of the announcement made by Bill Shorten, the member for Maribyrnong and the Leader of the Opposition, Anthony Albanese and myself earlier today and of the agreement reached with the government.

It is the case that the opposition will facilitate the indexation of fuel excise. That is a change of position that is readily and freely acknowledged by me and by us. Because when the circumstances change, we change our position—as was famously once said by an economist who finds favour on this side of House if not on that side of the House.

Mr Robert interjecting—

We know the member for Fadden thinks Keynes is a communist conspiracy but actually he has played a pretty positive role in the economic management of the world over the last 80 or so years.

Mr Robert interjecting—

Aggregate, demand, supply—who would want to be interested in all of that says the member for Fadden. Who would want to stimulate when there was a downturn?

Mr Robert interjecting—

Old Herbert Hoover over here. Let them eat cake he says. It is the case—

Mr Robert interjecting—

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