Senate debates

Tuesday, 16 June 2015

Questions without Notice

Infrastructure

2:36 pm

Photo of Ricky MuirRicky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Infrastructure and Regional Development, Senator Cash. The 2015 budget papers, when compared to the 2014 budget papers, show that Commonwealth infrastructure payments are down $802 million this year on what was promised in 2014. Far from taking up that cut, another $1.2 billion is cut from the following year, 2015 into 2016. At a time when overall public spending on infrastructure is falling steeply, how is it responsible to downsize Commonwealth spending by $2 billion?

2:37 pm

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Assistant Minister for Immigration and Border Protection) Share this | | Hansard source

I thank Senator Muir for his question and for providing us with some notice of the question. The government, I can confirm, has not cut spending on infrastructure. In last year's budget, our commitment was $16.4 billion more than the former Labor government's—and now it is $17 billion more. That is part of our record $50 billion investment plan to build a strong, safe and prosperous future for all Australians.

Budget Paper No. 1 of this year's budget, on page 541, shows that road transport expenditure increases from $4.214 billion in 2014-15 to $5.935 billion in 2015-16 and again increases in 2016-17 to $8.401 billion. Likewise, rail transport expenditure in 2014-15 was $740 million. It increased to $1.079 billion in 2015-16 and it again rises to $1.303 billion in 2016-17. To ensure value for money for the taxpayers, the timing of expenditure on infrastructure projects is tied directly to milestones. This means that the actual expenditure each year will vary from that which was estimated. The predictions are based on the cash flows requested by the states, taking into account when they expect to meet those milestones. The changes to predicted expenditure also take into account the anticipated return of the East West Link payment. Of course Senator Muir will be well aware, as will the parliament, that the government has kept the $3 billion for the East West Link quite literally in a locked box. It is there for any government who wishes to build it. In the meantime, Minister Truss is negotiating other worthy projects in Victoria to keep that state moving. (Time expired)

2:39 pm

Photo of Ricky MuirRicky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Is it not the case that the government promised to spend $35.4 billion over five years last year, but this year there is only $33.2 billion over five years? Where has that money gone?

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Assistant Minister for Immigration and Border Protection) Share this | | Hansard source

I thank Senator Muir for his supplementary question. The government retains the biggest infrastructure investment commitment in Australia's history. We have a record $50 billion of investment in infrastructure in Australia. But it is particularly pertinent that Senator Muir should query an alleged reduction in the infrastructure spend. As a Victorian senator, you are clearly acutely aware of your state's Labor government and their decision not to build the East West Link. As a responsible member of this place, I am sure that you join us on this side in questioning this unprecedented decision and what is a complete waste of Victorian taxpayers' money. The answer I gave to the first question confirms that $3 billion has been set aside for the East West Link project. Minister Truss is also discussing new projects with the Victorian government that could be added to the investment program for that state. (Time expired)

2:40 pm

Photo of Ricky MuirRicky Muir (Victoria, Australian Motoring Enthusiast Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. Why is the government spending less than $1 million on the Heavy Vehicle Safety and Productivity Program this year, when it promised to spend $48 million in the 2014 budget?

2:41 pm

Photo of Michaelia CashMichaelia Cash (WA, Liberal Party, Assistant Minister for Immigration and Border Protection) Share this | | Hansard source

I can confirm for Senator Muir that no cuts have been made to the Heavy Vehicle Safety and Productivity Program. Successful projects under round 4 of the Heavy Vehicle Safety and Productivity Program were announced by Minister Truss in March of this year. Under round 4, 53 proposals will receive total funding of $96 million over this and the next financial year. Project proponents are currently finalising funding instruments with the Department of Infrastructure and Regional Development. The government is committed to delivering the full $248 million commitment announced in the 2014 budget. Our commitment, of course, is boosting our economy. It is creating tens of thousands of jobs—not those jobs in Victoria, unfortunately, which have been denied to the people of Victoria. It is increasing capacity on our freight routes and, importantly, reducing congestion for all road users.