Senate debates

Tuesday, 28 October 2014

Questions without Notice

East West Link

2:19 pm

Photo of Janet RiceJanet Rice (Victoria, Australian Greens) Share this | | Hansard source

Mr President, my question is to the Minister representing the Minister for Infrastructure and Regional Development, Senator Johnston. How does the government justify contributing $3 billion to the East West Link tollway project in Victoria, including $1½ billion already handed over, despite information including the business case remaining secret and it being a project which manifestly will not solve Melbourne's congestion problems when the meltdown in Melbourne's train system yesterday due to antiquated signalling shows that it is public transport that is in desperate need of investment from both state and federal governments?

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

I thank the senator for that question. The coalition government has made an historic investment in the budget to get on with building Australia's infrastructure, bringing investment in infrastructure to $50 billion through to 2019-20. This includes $16.4 billion more than Labor promised in its infrastructure investment program. We are investing $7.6 billion in Victoria alone. The $3-billion commitment to Melbourne's 18-kilometre East West Link will address major transport challenges for Melbourne.

On 9 September 2014 the Australian and Victorian governments announced the preferred bidder, the East West Connect consortium, to construct and operate the eastern section of East West Link. On 29 September this year a $5.3 billion contract was signed between Victoria and East West Connect to build the eastern section of East West Link. The estimated cost of this section is $6.8 billion. This is real money from a government that is getting on with the job because we are delivering some real action in terms of infrastructure. This includes $5.3 billion for the construction, $700 million for public transport and local road upgrades, $500 million for land acquisitions and $300 million of state project management fees. The Australian government is providing $1.5 billion, with $2 billion from the Victorian government and $3.3 billion from private investment. The Australian government has so far contributed $500 million towards the eastern section. The remaining $1 billion Australian government commitment for the eastern section will be paid over three years from 2014-15. The associated works are expected to commence late this year, and I am very proud of that fact. (Time expired)

Photo of Janet RiceJanet Rice (Victoria, Australian Greens) Share this | | Hansard source

Mr President, I ask a supplementary question. The minister was not answering my question, which was about investment in public transport and the lack of information relating to that investment.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Your question, Senator Rice?

Photo of Janet RiceJanet Rice (Victoria, Australian Greens) Share this | | Hansard source

The government promised pre-election that it would publicly release cost-benefit analyses for projects where federal funds of over $100 million were being committed. Does the minister reconfirm this commitment and, if so, does he believe that this information should be publicly available before the funds are handed over?

2:22 pm

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

If Senator Rice had been listening, she would have heard that I said $700 million of the $5.3 billion, which I referred to, is for public transport and local road upgrades. I think that is a very significant contribution to the wellbeing of public transport in Victoria. I think it is very welcome. I am really quite surprised, Senator, that you would be asking the question with the tenor that you are unhappy with this program. This is real money, it is actually starting this year and I have told you how much we are investing. I think the government has an awful lot to be very proud of in getting on with the job in Melbourne, in Victoria. Indeed, this is one example of what this side of the chamber is really all about: getting on with the job and actually making things happen.

2:23 pm

Photo of Janet RiceJanet Rice (Victoria, Australian Greens) Share this | | Hansard source

Mr President, I ask a further supplementary question. The last question was about the cost-benefit analysis not being available. The Minister for Infrastructure and Regional Development recently confirmed in the other place that he expected Infrastructure Australia would release their assessment of the East West Link business case and related information. However, Infrastructure Australia said in Senate estimates last week that the release of the project's business case would be a matter for the Victorian government. Given that the Senate has three times ordered the production of documents, including the business case, will the government now agree to release the business case?

2:24 pm

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

I will have to talk to the minister responsible for that. I will undertake to do that for you. But given my experience with the traffic flows in and around Melbourne and the expansion of that community, I think it is clear that there is obviously a business case for infrastructure money to be put on the table to assist in traffic flows on the East West Link. Can I say, Senator, that Infrastructure Australia is assessing projects which involve Commonwealth funding of at least $100 million and will publish justifications for its recommendations to government. On 4 September, Minister Truss introduced the Infrastructure Australia Amendment (Cost Benefit Analysis and Other Measures) Bill 2014 into the House of Representatives to embed this into Infrastructure Australia's legislation. As I am given to understand, it is actually slated for debate this week in the Senate.