Senate debates

Wednesday, 18 June 2014

Questions without Notice

Infrastructure

2:49 pm

Photo of Nick XenophonNick Xenophon (SA, Independent) Share this | | Hansard source

My question is to Senator Johnston representing the Minister for Infrastructure and Regional Development. In the budget the government announced that the $18 million South Australian supplementary local road fund would not be extended beyond this financial year. That means, in effect, that cuts to road funding are proportionally bigger for South Australians than for anyone else in the nation. With South Australian local government currently managing 11 per cent or 75,000 kilometres of the nation's local road network, covering 7.2 per cent of the nation's population, but only receiving 5.5 per cent of identified local roads grants funding, could the minister outline to the Senate how they plan to address this inequitable funding situation for South Australia?

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

I thank the senator for the question. As he has identified, the supplementary local road funding program lapses on 30 June this year, and I will say a little more about that in a moment. This year, councils in South Australia will receive $17.8 million in supplementary—and I underline the word 'supplementary'—funding for local roads. Supplementary funding to South Australian councils is made, as I am sure the senator knows, in addition to the local roads component of the financial assistance grants program. Other councils around Australia have not received any supplementary funding under the financial assistance grants program. Of the $2.3 billion allocation under the financial assistance grants program in 2014-15, local government in South Australia will receive an estimated $152.5 million. South Australian councils, as well as others around Australia, will receive more Black Spot and Roads to Recovery funding following the budget announcement. So supplementary funding is made to South Australia in addition.

The Australian government is very committed to supporting local government to provide the infrastructure and services that drive productivity. The government is continuing the financial assistance grants program which will provide an estimated—as I have said—$152 million specifically to South Australia in 2014-15. This is 'in addition', because the previous government made no provision for the extension of the supplementary roads funding beyond 30 June this year. This is important with respect to legislation that is soon to come before this chamber.

I understand that the equity of the funding formula for local roads has been an issue for some years, particularly from a South Australian perspective. The South Australian local government association and the Australian national body— (Time expired)

2:51 pm

Photo of Nick XenophonNick Xenophon (SA, Independent) Share this | | Hansard source

I ask a supplementary question, Mr President. I have been advised that close that two-thirds of South Australian local councils have written to the Minister and Assistant Minister for Infrastructure and Regional Development in relation to the slashing of the South Australian supplementary local road funding, asking for a reason for it. The only response given is to tell the local councils to go to the federal Local Government Association. Will the minister actually provide a justification for these cuts and does he acknowledge that South Australia gets much less per road kilometre and per capita than every other state and territory?

2:52 pm

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

Senator, I thank you for that, but let me say that South Australia will be the key beneficiary of the government's record investments in infrastructure. South Australian councils will receive twice as much Roads to Recovery funding in 2015-16, increasing South Australia's component to $220 million over six years. In order for the government's commitment to extend and increase the Roads to Recovery program, it is imperative that the opposition support the National Land Transport Amendment Bill currently before the Senate. As I indicated previously, this bill establishes authority for payments—

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Xenophon is endeavouring to listen to the answer but it is very difficult for him as people have an exchange across the chamber in front of Senator Xenophon. It is completely unfair to him and disorderly and it should stop.

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

The bill I was referring to establishes the authority for payments to be made under the Roads to Recovery program which will alleviate and assist South Australia greatly. The Deputy Prime Minister has recently set out that South Australian councils must apply for local roads funding under the government's— (Time expired)

2:54 pm

Photo of Nick XenophonNick Xenophon (SA, Independent) Share this | | Hansard source

Finally, can the minister advise, either now or in due course, the difference in dollar per kilometre and dollar per capita Commonwealth identified local road grants in 2013-14 and subsequent years? Does he acknowledge that the dollar per kilometre rate is, for instance, less than half that of New South Wales and Victoria and on a per capita basis is less than a fifth compared to Tasmania? Does the minister consider that to be fair to South Australia?

Photo of David JohnstonDavid Johnston (WA, Liberal Party, Minister for Defence) Share this | | Hansard source

I thank the senator for the question. I do not have the data at my fingertips but coming from Western Australia as I do I am concerned about that equation and I will take that aspect of the question on notice. I just want a highlight, in terms of the funding that you have raised more broadly, $16 million to fix South Australian black spots in 2015-16 and $29 million base funding for the program over the next six years. This is what we are doing specifically for South Australia to addressing the anomalies that you have raised, Senator.