House debates

Tuesday, 22 May 2018

Matters of Public Importance

Budget

3:27 pm

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

I have received a letter from the honourable member for Grayndler proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The Government's ongoing cuts to real infrastructure investment.

I call upon all those honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

3:28 pm

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Tourism) Share this | | Hansard source

There are two ways that you can invest in economic growth: you can invest in nation-building infrastructure, or you can invest in people through education and skills. When it comes to infrastructure, of course, this government does neither, and this budget of 2018 is a hoax. It is a triumph of spin over substance—not a dollar of new investment. When you look at Budget Paper No. 2, it's there for all to see on page 137: 'Infrastructure Investment Programme—Australian Capital Territory infrastructure investments'—zero, zero, zero, zero, zero. You go through the next table, 'Major Project Business Case Fund'—zero, zero, zero, zero, zero. 'New South Wales infrastructure investments'—the same. 'Northern Territory infrastructure investments'—the same. 'Outback Way'—the same. There is table after table. 'Queensland infrastructure investments'—zero, zero, zero, zero, zero. 'Roads of Strategic Importance'—zero. 'South Australian infrastructure investments'—zero. Tasmania—zero. 'Urban Congestion Fund'—zero. 'Victorian infrastructure investments'—zero. Right across the board, what you have is no new investments—simply an allocation of money that was already in the budget.

And where has that allocation gone? In the next financial year, one per cent, $1 in every $100, of the new projects announced in the lead-up to the budget and on budget night are there with funding. Indeed, across the forward estimates it is 15 per cent of funding. More than 85 per cent of funding is there not for this term, not if you vote for the Turnbull government for another term, but if you vote for whoever's in charge of the mob opposite for a term after that. It will be three terms into the future before 85 per cent of the funding flows. The fact is that we need infrastructure investment now. Congestion costs the nation some $16 billion a year right now.

But what we see at page 46 of Budget Paper No. 3 is the actual investment. It falls from $8 billion in 2017-18 across the forwards to $4.5 billion in 2021-22, a drop of almost half. That's consistent with what the Parliamentary Budget Office found when they independently examined the budget papers after last year's budget and warned that Commonwealth infrastructure investment over the next decade would halve from 0.4 per cent to 0.2 per cent. And it's consistent also with the fact that if you compare this year's budget across the forward estimates, if you compare it with last year, it is $2 billion less, which is what The Australian reports today based upon the work and analysis that is there in the budget papers themselves. And Infrastructure Partnerships Australia—the peak organisation that I addressed last week—certainly agrees. All of the sector is onto the con that these people have been engaged in: it is a budget of deceit.

In the lead-up to the election we saw a grand announcement about Western Sydney Rail—through Badgerys Creek Airport along the north-south corridor. How much is in the budget for construction? Zero. There was $50 million for a study. That's all it got. There was a grand announcement and a promise of fifty-fifty funding into the future, but not a single dollar. Of course, we know not that there was not a single dollar in the budget for Brisbane's Cross River Rail project—not one. It was identified by Infrastructure Australia way back in 2012 as the No. 1 project. It was funded in the budget in 2013, cut by this government in 2014, and remains cut—even though it's a precondition for expanding the rail network in the Sunshine Coast and Gold Coast as well as Brisbane. You need to do something about the capacity—just like the Melbourne Metro project is a precondition for expanding the rail network in Melbourne.

And there was another front page story—the airport rail link in Melbourne. But if you have a look at the budget papers, they say they'll 'have a chat to Victoria about an equity investment'. So it is off-budget funding. They think you can build infrastructure for free. The only way you can have off-budget funding of on infrastructure project is that it has to fulfil two criteria. The first criterion is that it has to have revenue—from people paying to go on the train, the toll road or whatever piece of infrastructure it is—that is higher than the maintenance cost. There isn't a rail line in Australia—not one—that meets its operating and maintenance costs. That's the nature of public transport. It's an investment in our nation that boosts an economy, gets people to and from work and other activities, and produces a national economic dividend. It doesn't produce an economic dividend to the owner of that particular piece of infrastructure, let alone be able to pay back the capital investment of a project that will cost more than $10 billion. So, once again, we have a big announcement leading to absolutely nothing—sham funding. As the Grattan Institute said:

If infrastructure projects are never going to make a commercial return, the government should stop pretending they will. And if they are worth building at all, the government should fund them transparently on-budget.

That's exactly what any transport economist has said. That's what everyone in the sector have said. And those opposite know that this is the case. Indeed, Mathias Cormann, the finance minister, argued this in the cabinet. When he was asked on Neil Mitchell's radio program about this, he refused to defend this off-budget funding because he knew that it means that it simply won't be real. The NAIF—the No Actual Infrastructure Fund—was established more than three years ago. It hasn't got a single project in North Queensland, hasn't got any major projects funded.

The IFU, remember that? They don't think their acronyms through very well, this mob. The Infrastructure Financing Unit, established by the those opposite, was going to transform infrastructure investment and was going to mobilise all this private capital into projects. Guess what? Not a zac, not a road, not a railway line, nothing. And now it's been transferred into the Department of Infrastructure.

The fact is that, even when they announce funding on budget night, the government don't deliver. One out of every $5 that was announced in their first four budgets was never spent. There was a $4.7 billion gap between what they said on budget night 2014, 2015, 2016 and 2017 when you go back and look at what was actually invested. There were: underspends on roads, $2.7 billion; underspends on the Western Sydney Infrastructure Plan, $700 million; underspends on northern Australia roads—beef roads, black spots, heavy vehicle safety program. From time to time, you can have delays but, the fact is, every single one of this government's programs has seen underspends every single year.

There is a better way. Labor showed the way last time and we will again with real investment in roads, real investment in public transport, real investment in nation-building infrastructure. We lifted infrastructure investment from $132 for every Australian up to $225. Australia went from 20th to first in advanced economies in the world in infrastructure investment as a proportion of GDP. We did it before and next term, when we're on the Treasury benches, we'll do it again. (Time expired)

3:38 pm

Photo of Paul FletcherPaul Fletcher (Bradfield, Liberal Party, Minister for Urban Infrastructure and Cities) Share this | | Hansard source

We heard there a greatest hits selection of the shadow minister's repeated mendacities and falsehoods. He claimed, for example, that the Cross River Rail project presently submitted by the Queensland government is the one previously approved by Infrastructure Australia—quite wrong. There was in fact a change report submitted by the Queensland Coordinator-General because the current project is so different. As the shadow minister knows full well, the Cross River Rail project submitted to Infrastructure Australia was the subject of a recommendation by Infrastructure Australia to the Commonwealth government that it should not be funded at this time. What the shadow minister has just told the House is plain wrong. He can't even get the budget treatment right in relation to Melbourne Airport Rail Link. He talks indignantly about the fact that we've indicated we have an interest in looking at an equity approach.

Let's look at what the budget actually says in Budget Paper No. 3, page 48. I'll read it out very slowly so we are absolutely clear on this.

(b) The Commonwealth’s $5 billion investment in the Melbourne Airport Rail Link will be provided as equity or otherwise as agreed, but consistent with the principles of conservative Budget management, this investment has initially been reported as grant funding.

Let me make it absolutely clear to the House: the premise of what the shadow minister has just said is absolutely factually wrong and entirely inconsistent with what is said on page 48 of Budget Paper No. 3.

Then, of course, we've got his ripper claim that there's somehow some problem with allocating money for projects beyond the four-year forward estimate period. Let's go back and have a look at the shadow minister's greatest hits, the 2013 budget that he had responsibility for. There was $6.2 billion allocated in 2013 to urban transport. Let's look at some of the projects. There was $3 billion allocated to Melbourne Metro, with $2 billion of it outside of the forward estimates. There was $500 million allocated for the Perth Airport link, with $300 million of it outside of the forward estimates. Apparently there was $2 billion to support the Parramatta to Epping rail link, with the entirety of the funding outside of the forward estimates. The shadow minister states some sweeping principle of budgetary management on the one hand but behaved in a total different manner when he was the minister.

Now, let's look at some of the basic claims that underpin what's in this MPI and that underpin the usual, tired, threadbare range of factually incorrect propositions that the shadow minister advances in a collection of poorly-attended media conferences around the country. First are the claims about the level of funding for infrastructure. Let me point out to the House some basic facts: the average level of spending for infrastructure under the Rudd-Gillard-Rudd years, when the shadow minister had portfolio responsibility for infrastructure, was just over $6 billion a year. Let me remind you what the numbers are for the next four years: $8.6 billion, $8.7 billion, $8.2 billion and $8.5 billion. You'll see that there's quite a difference between just over six and well over eight, yet he has the temerity to come in here and claim that in some way infrastructure spending is falling.

Was the shadow minister asleep when we announced $3.5 billion for the Roads of Strategic Importance, $1 billion for the Urban Congestion Initiative, over $5 billion for projects in Queensland, $971 million for the Coffs Harbour bypass, up to $5 billion for the Melbourne Airport rail link, $1.05 billion for additional Metronet projects in Perth and $944 million for a Perth congestion package? The claim that, in some way, infrastructure funding is falling is factually wrong. The facts are clear. We are seeing increases in infrastructure spending. Of course, those increases build on an extremely comprehensive existing program of infrastructure investment all across Australia, be it $1.6 billion for projects on the North-South Corridor in South Australia, presently underway; $400 million for the Midland Highway in Tasmania, presently underway; $914 million for Gateway Upgrade North in Brisbane, presently underway; and $5.6 billion for the Pacific Highway—a subject very close to your own heart, Deputy Speaker Hogan—to be upgraded to four lanes all the way from Sydney to the Queensland border. That is a comprehensive infrastructure investment program all around Australia.'

Let me turn to the ludicrous claim that the shadow minister advances that there's no new money. You could not find a more embarrassing admission of a failure to understand the basic public sector accounting principles that have been employed in constructing this budget. Let me explain it very simply and carefully. We've made a commitment to invest $75 billion over 10 years for infrastructure. We haven't just made that promise on a one-off basis and walked away from it; we've been very careful to make sure that it's supported by the appropriate responsible, credible, public sector accounting treatment. What we do is provision the required amount of money every year for 10 years, and then for every project we announce we allocate very specifically against that rolling program the designated amount and the designated timing. That's why there's no need for individual dollar amounts to be set out in the line items cited by the shadow minister, as he knows full well but is simply cynically attempting to mislead people who may not find public sector accounting the most fascinating and gripping topic. But that is a deeply misleading claim, because the money is there. The money has been provisioned.

Let's turn to the substance of the claim that it's not new money. If you live in Tasmania, what you now know is that there's $461 million committed by the Turnbull government for the Bridgewater Bridge. That's money that wasn't committed before. You could compare that to what Labor committed: $100 million. They got laughed off the island for that particular proposition. We've committed $461 million, and it's fully provisioned in our 10-year infrastructure program.

Tell the people of Nowra that apparently it's not new money. There's $155 million for the Nowra bridge. They know now, after this budget, that that money is there and that project will be delivered. Tell it to the people of Brisbane. They now know, after this budget, that there is $300 million for Brisbane Metro. They didn't know that that money was there before, because that decision hadn't been made, and yet the shadow minister has the temerity to claim that that's not new money. If you live in Brisbane, you now know that $300 million is committed to Brisbane Metro.

What about the Bunbury Outer Ring Road, with $540 million? That is new money committed for the Bunbury Outer Ring Road, funding that was not committed before, and yet again we have this ludicrous proposition that there's no new money. The people of Perth now know something they did not know before the budget: there's $1.05 billion for further stages of the transformational Perth METRONET project, for Ellenbrook to Morley and the extension of the Armadale line to Byford. That's $1.05 billion, but apparently there's no new money. I've got 1.05 billion reasons to say to you: that is dead wrong. There is $1.05 billion of new money. In Port Augusta, the Joy Baluch Bridge has $160 million. The Gawler line electrification has $120 million.

Photo of Nick ChampionNick Champion (Wakefield, Australian Labor Party, Shadow Assistant Minister for Manufacturing and Science) Share this | | Hansard source

How long has the Gawler line taken?

Photo of Paul FletcherPaul Fletcher (Bradfield, Liberal Party, Minister for Urban Infrastructure and Cities) Share this | | Hansard source

'How long has the Gawler line taken?'—from a South Australian Labor MP. We don't have the time to go through the lengthy catalogue of public sector incompetence that we have seen from South Australian Labor when it comes to the Gawler line electrification. But I'll tell you what: in years to come it will be a case study in schools of government and schools of public policy all around the country—the chaotic mess that Labor, federal and state in South Australia, produced when it came to the Gawler line electrification.

We are going to fix that. We are going to work with a businesslike, sensible, serious, determined state government in South Australia. Thankfully, they now have a capable Liberal government in the Marshall government, and we've committed this vitally needed funding to the Gawler line electrification.

This ludicrous claim that somehow investment in infrastructure through debt and equity doesn't count as infrastructure investment is simply factually wrong, but the shadow minister continues mendaciously, misleadingly and deceivingly to quote only one line item in the budget, which is grant funding. What he needs to do is quote all of the funding for all of the infrastructure investment programs. That's how we get to $8.6 billion next year, $8.7 billion the following year, $8.2 billion the year after that and $8.5 billion the year after that. So don't come in here and tell us that infrastructure investment is falling. It's not. That's wrong. Look at the facts.

3:48 pm

Photo of Pat ConroyPat Conroy (Shortland, Australian Labor Party, Shadow Assistant Minister for Infrastructure) Share this | | Hansard source

I'm proud to rise on this matter of public importance to discuss the government's failure to invest in infrastructure. It's a privilege to follow the member for Bradfield, a warm-up act to four successive National Party ministers. It must be very galling to be taking orders from the likes of the member for New England.

The truth is that this is a smoke-and-mirrors budget. This government, as the member for Grayndler has ably outlined, uses equity investments to inflate the infrastructure figure. This inflation is completely dodgy because the projects that are associated with the equity investments are unlikely to provide a commercial rate of return. Equity investments in certain arenas are justified and are reasonable, but in the projects they've identified they have Buckley's of getting a commercial rate of return. The most egregious example is the $5 billion for the Melbourne rail link. The truth is that not a single passenger rail line in Australia returns a profit—not a single one. In fact, on average, a passenger rail line returns 25 per cent of its cost. The Sydney Airport line is a classic example of when you try to make it a commercial rate of return. The company went bankrupt and had to be rescued after the incompetence of the New South Wales Liberal government.

The truth is that infrastructure grants are the key measurement of a government's commitment to infrastructure investment, and grants under this government fall from $8 billion in 2017-18 to $4½ billion in 2021-22. What's even worse is that this government is so incompetent that it can't even spend the money it's allocated. Over the last four years they've spent $4.7 billion less than they promised to spend. Let me repeat that: the National Party infrastructure ministers got into cabinet, wrestled and managed to get some funding for grants, and they then can't spend it. They have spent $4.7 billion less than they promised.

Why is this? Why is this government so hopeless on infrastructure? The truth is it's all spin and no substance. I remember when the Prime Minister was triumphant after assaulting and assassinating the member for Warringah. He became Prime Minister. He was going to be the infrastructure Prime Minister. Well, guess how many times he's mentioned infrastructure grants since becoming Prime Minister: twice—twice since becoming Prime Minister. He's mentioned wine four times. He's mentioned rugby four times. He's mentioned poetry twice. This bloke cares more about poetry, drinking and rugby than he does about infrastructure grants. This is the quality of the Prime Minister.

What's even worse is that we have a series of interning infrastructure ministers. We have a revolving door of infrastructure ministers under this chaotic government. We had Warren Truss, who spent two years and 153 days in the portfolio, and he was a stayer compared to the ones who succeeded him.

An opposition member: He slept through most of it!

He slept through it and, quite frankly, we slept through his question time performance. Then we had the member for Gippsland for one year and 305 days, and then the member for New England for 68 days, and the current bloke, the member for Riverina, has been in for 77 days. The current minister has been minister for infrastructure for only slightly longer than Mal Meninga's political career! In fact, the last two ministers have lasted for fewer days than Sophie Monk's relationship with Stu Laundy—and I checked. In fact, the last three ministers combined have had a shorter tenure than the time Britney Spears was married to K-Fed. That is how short these ministers' attention span is. When you add up the entire tenure of all the four coalition ministers, it's lasted less time than the Taylor Swift-Katy Perry feud. This is how seriously these guys take infrastructure.

Compare their combined period, four years and 238 days, to the golden era of infrastructure investment in this country under the member for Grayndler, who served for five years and 289 days. During those five years, infrastructure investment per person in this country increased from $132 to well over $200, a significant rise in per capita investment. That's how you do infrastructure investment in this country: matching your rhetoric with real dollars, unlike this sham of a government that uses smoke and mirrors to hide the fact that it is underinvesting, ripping off Australians, ripping off our economy and driving us into the ground.

3:53 pm

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

I thank the member for Shortland for his contribution. In actual fact, he has just been a warm-up act for a National Party minister and, with a bit more practice, he might get there. I was going to comment that I feel that the member for Shortland should spend a little bit more time in his electorate and a bit less time in front of the TV.

One of the advantages of being around here for a while is that you have a memory. I sat here through the entire time when the member for Grayndler was infrastructure minister, and I saw other ministers in that era that were responsible for government expenditure.

Photo of Julian HillJulian Hill (Bruce, Australian Labor Party) Share this | | Hansard source

You didn't learn much!

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

Well, I learnt one thing. I learnt that one of the biggest forms of infrastructure that was important for regional Australia was the Regional Telecommunications Infrastructure Fund, and I remember sitting there while the member for Grayndler and others removed that and turned it into a $900 cash splash in 2008. It disappeared. There was not one mobile phone tower in two terms of government. I sat here in this place as I watched members spend money on infrastructure in schools—school halls that didn't fit the schools—

Opposition members interjecting

I'm certainly against the spending of money that is not value for money. The member for Shortland talked about the time of rolling things out. It's because the coalition government does look at responsible spending of taxpayers' funds, not just rolling them out. But, if you want to have a look at real expenditure, have a look at the inland rail. The member for Grayndler spoke about it a lot. You can look at it now: there are railway lines lying along the side of the track, they are driving pegs into the ground and there is work.

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Tourism) Share this | | Hansard source

You haven't done anything. You haven't dug a hole yet.

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

You should come and talk to some of my farmers who have railway lines coming through their place, member for Grayndler, and ask them if they think it's going ahead. It's going ahead all right. This is real infrastructure that's being rolled out, not just talked about. There's the completion of the duplication of the Pacific Highway and the relationship with New South Wales. The federal government, from my memory, reneged on their share of the expenditure. It took a coalition government to bring it up to 80 per cent funding of the Pacific Highway. There was the announcement last week of the bypass around Coffs Harbour—real spending. It's not only on inland rail, which runs across my electorate, but some is on infrastructure that has a great effect on communities.

There is the $10 million that we're contributing to the Bourke abattoir—a small animals abattoir that will employ a couple of hundred local people in that western New South Wales town. There is the infrastructure spending going into the Dubbo airport at the moment—a large project in conjunction with the Dubbo council and the Flying Doctor Service to increase the capacity at that base, not only to service the people of western New South Wales through the Flying Doctor Service but also to help Dubbo grow as a regional hub for freight. So this government is getting on with proper spending and diligent management. It's not just talking about cash splashes and not actually getting the job done. There are practical things like the heavy vehicle bypass around Warialda that will get those large, high-mass vehicles out of the main street, stop a bottleneck that's dangerous and help productive farmers in the northern part of New South Wales and Queensland get to markets in a more efficient way, with cheaper freight and in safer measure.

I find it quite incredible that the member for Grayndler would bring about this matter of public importance—the member who oversaw five years of incompetence. He had a great amount of cash lent to him by the Howard government and he squandered it.

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Tourism) Share this | | Hansard source

Go talk to your mayors.

Photo of Mark CoultonMark Coulton (Parkes, Deputy-Speaker) Share this | | Hansard source

Member for Grayndler, you had your turn. I just sat there quietly and listened to your dribble. The other thing that the member for Grayndler did was in the way of funding things. There was the Roads to Recovery strategic fund. That was one of the first things removed. It's been replaced in this budget.

3:58 pm

Photo of Terri ButlerTerri Butler (Griffith, Australian Labor Party, Shadow Assistant Minister for Preventing Family Violence) Share this | | Hansard source

I must say it's a pleasure to follow the previous speaker, whom I might start addressing as 'comrade' because he did such a great job for the Labor opposition in raising so many wonderful issues for us to talk about in this infrastructure MPI. To think that a member of the government would stand up and talk about telecommunications infrastructure, knowing the absolute catastrophe that the NBN rollout has been across this country. Not that I've got that much of it in my electorate, but I can tell you that, where we do have it, all we get is complaints about the dropouts and problems with the HFC. I don't just get the complaints in my electorate, of course; you get them in Senate estimates. How much genius does it take to double the cost and halve the speed! That deserves an absolute round of appreciation for the government's effort.

Might I say, the Prime Minister himself was so proud of his job when he was the communications minister. I met with him about the NBN. He sat me down and he showed me a map and said, 'Look how much broadband you have across your electorate.' Come to Griffith, Prime Minister. Meet the business in Morningside that had to use a dongle because they couldn't even get cable or HFC. Come to my electorate and meet with the people who can't get all of their kids' homework done, because they don't get decent broadband access. Tell us how great it is to have broadband in Griffith.

I also wanted to thank the previous speaker for raising Inland Rail, perhaps one of the best examples of the concerns that we have in relation to this government's absolutely woeful record on infrastructure. It's an off-budget project—one of these off-budget projects that looks too good to be true because it probably is. The claim that this project can be fully funded by an off-budget $8.4 billion government equity injection into the Australian Rail Track Corporation is absolutely doubtful. You don't have to listen just to me on that. You've heard John Anderson, the former Deputy Prime Minister and former Leader of the National Party. What did he say about it? He said:

While the economic analysis indicates that inland rail will deliver a net economic benefit to Australia, the expected operating revenue over 50 years will not cover the initial capital investment required to build the railway – hence, a substantial public funding combination is required …

He's saying we're not going to cover the cost of it over 50 years. That's not a Labor Party position; that's from the former National Party leader and Deputy Prime Minister John Anderson.

Even the infrastructure department acknowledges that, as a stand-alone, the Inland Rail project will not be commercially viable in at least the short-to-medium term. They said the comments made by the secretary of the department for infrastructure at Senate estimates were indicative of the returns on equity for ARTC as a whole rather than for the Inland Rail project. They've cast aspersions on the figures. So I'm very pleased that the previous speaker in this debate decided to raise the issue of Inland Rail, because it is emblematic of this government's absolute failure when it comes to infrastructure investment.

The previous speaker also decided that this was a great opportunity to criticise spending money on school halls and school libraries. I tell you what: went I go to St Ita's in my electorate and I see the amazing school library that they got because of the Building the Education Revolution project, when I go to Norman Park State School and sit in their hall for their citizenship events, when I go to St Martin's, when I go to Mount Carmel, when I go to any of the schools—Camp Hill has an amazing hall—I will see they were able to get money through that project and build facilities for working-class and middle-class families and their kids in my electorate, and I'll think of how the National Party thought that that was a waste of public money, how they thought that was just something to be laughed at in an infrastructure spending debate in an attempt to avoid coming to grips with the real issue here, which is this government's absolute failure when it comes to infrastructure such as the funding for the M1 that's down on the never-never, beyond the forward estimates.

The idea is that 85 per cent of the funding for that project should be beyond the forward estimates and the people of Brisbane are meant to say: 'We'll trust you. We'll trust the Liberals.' They can't trust the Liberals when it comes to infrastructure, and the people of Brisbane are well aware of it. Here is another example: you can't trust the Liberals when it comes to Cross River Rail. This is incredibly important infrastructure project for my electorate and for all of the inner south in Brisbane. It is absolutely crucial. We're already nearing capacity for our rail network. We've got massive road congestion on Wynnum Road, on Lytton Road, on Old Cleveland Road, on Stanley Street. You come to my electorate and see what that road congestion is like. If you want to get people—

Dr Chalmers interjecting

It is a car park, as the member for Rankin said. His electorate is affected as well. If you want to get people off the road, you need public transport infrastructure. It's pretty simple. If you want congestion busting, you have to fund public transport infrastructure. The failure to fund Cross River Rail is a disgrace. Labor has committed $2.2 billion. We will continue to support this important project.

4:03 pm

Photo of Andrew WallaceAndrew Wallace (Fisher, Liberal Party) Share this | | Hansard source

The one good thing about those opposite is that they never fail to disappoint, do they? And it's just like this MPI has taken me back to when I was 11 years old and I was watching the television—1979, The Life Of Brian. All the main characters were huddled around in this little tomb, and, of course, there was the famous scene of 'What have the Romans ever done for us?' Those members opposite never fail to disappoint. 'What have the Romans ever done for us?'

Reg, who was played by John Cleese, said, 'Alright, alright, apart from the sanitation, the medicine, the education, the wine, public order, irrigation, roads, a freshwater system and public health, what have the Romans ever done for us?' It's somewhat similar to how these guys operate over here. They continue to shoot themselves in the foot.

I would invite any one of those opposite to come to my hometown on the Sunshine Coast. I know every time I mention the Sunshine Coast the member for Grayndler dips his head in shame, as he should, because he did absolutely nothing for the Sunshine Coast when he was the Minister for Infrastructure and Transport. Let's just have a look at a couple of things that have been going on on the Sunshine Coast. This year's budget includes $2.2 billion—I'll say that again: $2.2 billion, that's billion with a B—for infrastructure just on the Sunshine Coast. There's $880 million for Bruce Highway upgrades—they've gone very, very quiet over there—between Caloundra and Pine Rivers; $800 million for the Cooroy to Curra section D bypass; $150 million for upgrades to the Murrumba Downs section; and $390 million for the duplication of the North Coast Line between Beerburrum and Nambour.

I lived on the Sunshine Coast for 25 years. One of the most common things was that they felt neglected by the federal governments past. Now that's changed. Now they get $2.2 billion. I notice that the opposition minister for infrastructure has gone awfully quiet yet again.

Earlier in 2018 we announced the North Coast Connect high-speed rail project was just one of three chosen by the federal government to receive a share of $20 million to create a business case.

Mr Champion interjecting

Just listen! Just one of three throughout the country for fast rail. This is on top of unprecedented funding already committed. Just listen up for a moment. There's $734 million to create an Australian first: a diverging diamond interchange at Caloundra Road on the Bruce Highway. That's on top of $120 million for the Deception Bay interchange. Those opposite can say, 'These projects are never going to come up my way.' You'll actually see these projects being done as we speak.

Photo of Nick ChampionNick Champion (Wakefield, Australian Labor Party, Shadow Assistant Minister for Manufacturing and Science) Share this | | Hansard source

Are you doing it?

Photo of Andrew WallaceAndrew Wallace (Fisher, Liberal Party) Share this | | Hansard source

Absolutely.

Photo of Nick ChampionNick Champion (Wakefield, Australian Labor Party, Shadow Assistant Minister for Manufacturing and Science) Share this | | Hansard source

You're doing it? You're out there with a spade?

Photo of Andrew WallaceAndrew Wallace (Fisher, Liberal Party) Share this | | Hansard source

Don't start me on those opposite never knowing what hard work's like! That's on top of another $530 million that we received just last year in upgrades on the Bruce Highway between Caloundra and Pine Rivers.

I'd like to just pause for one moment and congratulate the previous infrastructure minister, who has done a sensational job in getting a lot of these projects off the ground. A lot of them wouldn't have been possible but for the great work that he's done, which is continued on by his followers.

Unfortunately, this great success should be contrasted with the Labor state government, who continue not to provide a planning study. It's a shame. (Time expired)

4:08 pm

Photo of Mike FreelanderMike Freelander (Macarthur, Australian Labor Party) Share this | | Hansard source

I think Mr Wallace has been watching far too many Monty Python films. He needs to go and find his holy grail of delivering proper infrastructure around Australia; not just pork-barrelling. If he wants to talk about state governments not delivering on infrastructure, look at the New South Wales government. Look at the disaster that they've caused with the inner city rail and the disaster of their stadiums policy.

I rise today to speak on the lack of provision of infrastructure in my electorate of Macarthur. I thank the member for Grayndler for raising this issue, which is an extraordinarily important issue in my electorate of Macarthur. Macarthur is the fastest growing electorate in New South Wales and one in which farms are being turned into new suburbs almost on a weekly basis without proper infrastructure, particularly transport infrastructure. Public transport infrastructure is vital in Macarthur. We have outlying suburbs where people have to travel to work, often by car, sometimes for three or four hours a day, which takes an enormous amount of time that could be spent with their young families and adds an enormous amount of stress on them just in travelling to work.

The federal Liberal government and state Liberal governments developed what they call City Deals, which is a completely politicised pork barrel that has failed to deliver for my electorate of Macarthur. I'm pleased to see that the member for Hume is in the chamber today. He should be talking about the lack of public infrastructure provided for his electorate of Hume. He should be supporting—

Photo of Angus TaylorAngus Taylor (Hume, Liberal Party, Minister for Law Enforcement and Cybersecurity) Share this | | Hansard source

$2 billion this year.

Photo of Mike FreelanderMike Freelander (Macarthur, Australian Labor Party) Share this | | Hansard source

You are not providing transport infrastructure for your own electorate nor my electorate of Macarthur. I'm sorry that the Minister for Infrastructure and Transport is not here today to hear me talk about what a disaster public transport is in my electorate of Macarthur. We have the Western Sydney Airport being developed on the northern tip of my electorate and into the electorate of Werriwa. They are not providing appropriate public transport infrastructure for the new Western Sydney Airport. The lack of public transport will mean that my constituents will not be able to fully utilise the benefits of the Western Sydney Airport. We also have Appin Road. A few weeks ago, we had the infrastructure minister and the member for Hume out in their Bob the Builder hard hats doing a public relations exercise, pretending that they're developing Appin Road. They're not. They've pulled up a few tree stumps and they call that delivering infrastructure. It is not.

I could go through the cuts in infrastructure in our state over the next few years, but I want to concentrate on my electorate of Macarthur. Just as a guide, there's a reduction of spending on infrastructure in New South Wales from $2.7 billion in 2017-18 to a mere $800 million in 2021-22. There are cuts. I find it ludicrous that anyone could believe that this is a government that's delivering on infrastructure for Macarthur. I was at a sausage sizzle in one of the newer suburbs in my electorate, Oran Park, on the weekend. There were huge complaints from local residents about the lack of transport infrastructure. The Northern Road, which goes from my electorate through to the northern electorate of Lindsay, around Penrith, should have been developed as a six- or eight-lane road, but it is only a four-lane road, which means that in peak hours it's already congested. People are being forced onto roads which are already inadequate.

Investment in transport infrastructure in New South Wales has fallen in the projected budgets 2018-19 and onwards by at least 25 per cent. That's money that could have been spent on much needed upgrades to roads and bridges and the beginning of our railway development. The Leppington train line, which was already planned to connect with the Western Sydney Airport, gets no funding from this federal government. It is ridiculous. Every transport expert in the state that I have spoken to suggests that it's a must when the airport opens. This government is a disgrace in the way that it's politicised infrastructure development in New South Wales— (Time expired)

4:13 pm

Photo of Steve IronsSteve Irons (Swan, Liberal Party) Share this | | Hansard source

I rise to speak on the member for Grayndler's MPI that there are cuts to the infrastructure budget. I'll lay it out quite simply for the member, but I do understand that his knowledge hasn't been that good with numbers—it's not his strong suit, especially since 2013. There have been no cuts in infrastructure spending. There have been no projects cancelled. Funding to the states and territories has not been reduced. Oh, that's right: no projects cancelled except for the East West Link—and who cancelled that? Funding has actually increased to record levels of investment in infrastructure. The coalition government is investing, on average, $2 billion per year more than Labor and investing in a way which delivers better value and results for taxpayers. I guess the member for Grayndler is just upset that the member for Lilley and the member for McMahon couldn't balance the budget to let him have the bigger chequebook to meet the coalition spending.

Our investments come with robust governance reforms so they deliver value for money, including ensuring independent assessment of business cases by Infrastructure Australia and working with the government's Infrastructure and Project Financing Agency to get the best return on our investments. This isn't 'back of the napkin' planning such as those opposite often used and are used to putting together, or perhaps the Ros Kelly whiteboard that she used to use in her ministerial office.

Photo of Julian HillJulian Hill (Bruce, Australian Labor Party) Share this | | Hansard source

Showing your age!

Photo of Steve IronsSteve Irons (Swan, Liberal Party) Share this | | Hansard source

This is a serious, considered investment by a fiscally responsible government. I wouldn't say it's age; it's experience. If only they could just understand that good governance and fiscal responsibility require a system of checks and balances! The funding allocated in the budget each year for infrastructure projects is fully available to state, territory and local governments if agreed milestone agreements and project conditions are met. Where milestones are varied, payments are also varied. This is what fiscally responsible governments do. Those opposite, and in particular the member for Lilley, never seemed to understand that phrase 'fiscally responsible' when they sat on those benches, even though their Prime Minister, Kevin Rudd, claimed to be an economically and fiscally responsible person, which he wasn't, as we saw.

Ms Henderson interjecting

'Economic conservative', the member for Corangamite tells me. What you don't do is just allocate large sums of money for major infrastructure projects and not review or revisit that expenditure. This is prudent financial management, as the government is not paying ahead of need or ahead of the proponents meeting the milestones or just to meet the government's budget targets.

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Tourism) Share this | | Hansard source

How's Gateway WA going?

Photo of Steve IronsSteve Irons (Swan, Liberal Party) Share this | | Hansard source

I hear the member for Grayndler yelling out. I think he's yelling out about the pink batts infrastructure he was talking about. We know about the pink batts disaster. That was infrastructure spending which set over 200 houses on fire and killed four people, so that was really good—what a great legacy to have for infrastructure spending the pink batts disaster was!

The member for Grayndler might not like it, but if Labor wants to make comparisons here is one: comparing all transport infrastructure investments—this includes payments to states, financial assistance grants, financing and equity—under the Rudd-Gillard-Rudd government the average annual spend on infrastructure was just over $6 billion, and the average under the coalition government from 2013-14 to 2020-21 is over $8.1 billion per year. If the member for Grayndler could get his numbers right, he'd understand that $8.1 billion is a lot higher than $6 billion. The member for Grayndler might get his numbers right one day.

Unlike Labor, the coalition government has a real plan that is building a stronger economy by creating more and better paid jobs, backing small business, boosting exports, delivering reliable and affordable electricity, and building road, rail and other vital infrastructure. Unsurprisingly, those opposite are not fans, but then how could you be a fan of something that promotes aspiration and busts congestion when you have a wing of your party advocating for no new roads?

In the great state of Western Australia, the coalition government, in this budget alone, has announced $3.2 billion for an infrastructure package, the largest single infrastructure investment we have seen dedicated to keeping WA moving. This package is committed to busting congestion across Western Australia and improving safety for WA commuters and road users. Unlike those opposite, this infrastructure package is not city-centric but rather is beneficial to regional WA and people in the metro area like my constituents of Swan. This is on top of the $2.3 billion Boosting Jobs, Busting Congestion package included in last year's budget, which included vital infrastructure such as the Manning Road on-ramp, which Labor always refused to fund, and the upgrades to the Roe Highway and Kalamunda Road intersection in my electorate, which Labor again refused to fund. So I thank the member for Grayndler for bringing this MPI so I could talk about how good the coalition funding is in my electorate of Swan.

4:18 pm

Photo of Tim WattsTim Watts (Gellibrand, Australian Labor Party) Share this | | Hansard source

Australia is an immigrant nation. Unless you are an Indigenous Australian, all of our families were migrants to this great country at one point in time. Indeed, there's nothing more Australian than being a migrant, and in recent times the Australian family has been growing at a rapid clip. The Australian population grew by 2.8 million people in the first decade of this century, more than any decade back to Federation, and it's already grown by 2.7 million in the current decade, and we still have a few more years of growth to go. The vast bulk of this population growth has happened in Australian cities. This is a great thing. It's human nation building that benefits our economy and our community.

But, to misquote Kevin Costner: 'If they come, you must build it.' My electorate is on the front line of this population challenge. Melbourne's west is booming. Its population is growing at twice the state average, and nearly one in five Melburnians now call Melbourne's west home. Infrastructure Australia's Future cities: planning for our growing population report recently modelled three scenarios and projected that the region will grow by between 76 per cent and 120 per cent over the next 30 years. One in five Melburnians is a big baseline to grow from.

Unfortunately, those opposite don't understand the need to invest in the infrastructure needed to allow us to support this growing population. The conservatives have never been the nation builders in this country. They don't have the vision to imagine a different world or the courage to pursue the change. They spend a lot of time sleeping, but they don't spend much time dreaming. When a conservative government is elected, they hit the snooze button on nation building. That's what we've seen in Australia over the last 30 years. When the Howard government kicked off the current high-population-growth era, it invested an average of only $29.1 billion a year in transport, energy, telecommunications and water infrastructure needed to support this growing population—nowhere near enough. When the federal Labor government was elected under stewardship of the member for Grayndler in the infrastructure portfolio, he effectively doubled the average annual infrastructure investment to $57.7 billion. This investment delivered city-shaping investments for Victoria and Melbourne's west in the form of the Regional Rail Link project and a $3 billion commitment to the Melbourne Metro rail tunnel.

Unfortunately, the election of the Abbott-Turnbull government hit the snooze button once again, slashing average annual infrastructure investment by 17 per cent to $48b billion. Investment in transport infrastructure alone—roads, bridges, railways, ports and harbours—fell by even more: 22 per cent. The Turnbull government's latest budget is more of the same: no new funding. Federal infrastructure grant funding, the money that goes to the states, territories and local governments to deliver these roads and rail projects, will in fact fall over the next four years to its lowest level since the Howard government. Incredibly, according to the Parliamentary Budget Office, federal investment in Australia's rail and road infrastructure will halve over the next decade. I can tell you population growth isn't halving over this decade. It hasn't fallen by 22 per cent. It's not at the lowest levels since the Howard government. As Infrastructure Partnerships Australia said about this budget:

It's concerning to see that the Federal Budget has cut real infrastructure funding by $2 billion over the forward estimates.

At a time when our population is growing and our cities are more congested than ever, we need to see infrastructure dollars trending up, not down. The out-of-touch Turnbull government doesn't understand the urgency of the challenge here.

Nowhere is this more true than my home state of Victoria. After more than four years in office, the federal coalition has initiated only one new major project in Victoria: the Murray Basin Rail Project. Every other federally funded project currently underway was identified and funded by the former Labor government four years ago. It hasn't initiated a single transport infrastructure investment in Melbourne's west on the front line of this population growth. In 2017-18 Victoria's share of the federal infrastructure budget fell to a record low of eight per cent despite Victoria being the fastest-growing state and having 25 per cent of the Australian population. In the last year of the federal Labor government preceding it, Victoria received 26 per cent of the federal infrastructure budget.

Even worse, the projects it has announced for Victoria all rely on funding that is already budgeted for, not new money. For projects like the airport rail link, North East Link, Monash rail and the electrification of the rail line between Frankston and Baxter, 80 per cent of that money—80 per cent of the funding for those projects—won't flow until the second half of 2022 at the earliest.

The out-of-touch Turnbull government just doesn't get it. It doesn't understand the impact of population growth on our major cities and it's not making the infrastructure investments needed to support it. A Shorten Labor government won't hit snooze on nation-building infrastructure investments in Australia. At the next federal election we'll offer the Australian public a vision for a better future of the country and give them a choice of a government that invests in the nation-building infrastructure we need.

4:24 pm

Photo of Sarah HendersonSarah Henderson (Corangamite, Liberal Party) Share this | | Hansard source

I'd like every constituent in the member for Gellibrand's electorate to listen very closely. He's just read talking points. The most insane amount of rubbish has come out of his mouth. Here he is, a Labor member in Melbourne's west, who didn't have the guts, the courage, to stand up to Daniel Andrews when he cancelled the East West Link.

Mr Hill interjecting

Photo of Kevin HoganKevin Hogan (Page, National Party) Share this | | Hansard source

The member for Bruce is warned.

Photo of Sarah HendersonSarah Henderson (Corangamite, Liberal Party) Share this | | Hansard source

This was game-changing infrastructure, and the member for Gellibrand stood there and said nothing. This is infrastructure that we need, and Daniel Andrews and Labor cancelled that project at a cost of $1.24 billion, and the people in Melbourne's west—the people that the member for Gellibrand represents—have been left high and dry by Labor. The member for Gellibrand has the temerity to stand there when he has been so weak. He has no courage, no guts and no ticker to stand up and say, 'Daniel Andrews we need this infrastructure.' We have $3 billion set aside for the East West Link, and what do we get in exchange? We get the West Gate Tunnel Project, which is a poor cousin of the East West Link. It is one small part of the East West Link. Infrastructure Australia, to which the member for Gellibrand referred, says this is an absolute priority for Victoria.

One of the biggest issues that we, as a government, have had with spending infrastructure money in Victoria is that Labor has refused to put the projects on the table. I also want to correct the member for Gellibrand for saying there wasn't one new project in Victoria except the Murray Basin Rail Project. That is absolutely untrue. We have put $1.7 billion into regional rail. I cannot believe the member for Gellibrand would be so ignorant as to stand up and try to make these comments. There will be $20 million for a new terminal for Avalon Airport, which will service Melbourne's west. The mayors and the councillors in the very electorate of the member for Gellibrand, who is walking out because he's so ashamed by his failure to represent his constituents, were at the announcement of the terminal. They are very proud that, as a government, we are providing Victoria's second international terminal, which will service the people of the west, as well as Geelong and Corangamite.

Photo of Tim WattsTim Watts (Gellibrand, Australian Labor Party) Share this | | Hansard source

What do they think about the train to Highpoint? They're going to be stranded for the next decade.

Photo of Kevin HoganKevin Hogan (Page, National Party) Share this | | Hansard source

The member for Gellibrand is warned!

Photo of Sarah HendersonSarah Henderson (Corangamite, Liberal Party) Share this | | Hansard source

As for the new projects, there is $50 million, and $150 million in total, for the Geelong rail duplication project, a new project, along with the upgrade of the Warrnambool line. The Labor Party in Victoria has put only $20 million into that project. We've put nearly $300 million. Member for Gellibrand, our government has committed $150 million to the rail duplication project to ensure that Geelong and Corangamite residents can get faster and more reliable rail services. This is a very important part of our city deal. Mr Deputy Speaker Hogan, in response, do you know what the Labor Party has put in? It has put in $10 million only. It can't even get a business plan completed in under two years. The office of the Minister for Public Transport told my office, through the minister, last Friday that they had sent the business plan in the mail, and it still hasn't arrived. They're so incompetent that they can't even send a business plan to the minister for infrastructure.

As for the member for Grayndler, when he was the Minister for Infrastructure and Transport, AirAsia struck a deal with Avalon Airport. Labor blocked that deal. Labor would not give permission for the building of an international terminal. The member for Corio said this was not in the interests of Geelong or Australia. It was an absolutely shameful decision, and it took 10 years for AirAsia to build its confidence. We are absolutely fixing this and delivering Victoria's second international airport. The other terrible decision made by Labor when it was in government was that it absolutely turned its back on the Great Ocean Road. That was a decision made by the member for Grayndler. He refused to put any money into the Great Ocean Road, which is one of the most iconic and important roads in our country.

Labor has a shameful record. The member for Gellibrand has failed to stand up for his constituents in the west of Melbourne. As he leaves this chamber, I say thank you to the Turnbull government for investing in regional Victoria, in regional rail, in regional airports and in infrastructure across Victoria and this nation.

Photo of Kevin HoganKevin Hogan (Page, National Party) Share this | | Hansard source

The discussion has concluded.