Senate debates

Tuesday, 17 September 2019

5:46 pm

Photo of Matt O'SullivanMatt O'Sullivan (WA, Liberal Party) | | Hansard source

Let me say at the outset what a pleasure it is to have the opportunity to speak on this MPI proposed by Senator Gallagher. I say that because the Morrison government has an incredibly strong record on infrastructure investment, on growing the economy and on creating jobs, and the best example of this investment is in my home state of Western Australia. But before I detail the specific projects being funded in WA, I just want to place on record the contrast between those on this side of the chamber and those opposite. We on this side believe that, to truly grow the economy in a way that touches all sectors and brings along all Australians, we need to create an environment where business and industrial investment and growth can, and should, flourish. Infrastructure investment is a critical part of this, but it's just one piece of our broad economic plan. It's a plan that we took to the Australian people on 18 May and one which they decisively endorsed.

The voters backed our plan for tax relief for small businesses and hardworking Australians. Like us, they believe that people should be able to keep more of the money that they earn and reinvest it back into the economy. They backed our plan to fix the budget and, with the delivery of the first surplus in 12 years ahead of schedule, they backed a plan, our plan, to get more people off welfare and into work, seeing the percentage of welfare recipients that are of working age fall to 14.3 per cent, the lowest rate of welfare dependency in 30 years. And, of course, they backed our 10-year $100 billion plan for infrastructure investment, knowing that our track record of delivery trumps the empty promises of those opposite, who floundered when they were last in government.

Our economic plan means that the Australian economy is growing at 2.3 per cent, a stronger rate than the OECD average and of all G7 economies, except the United States. This strong economy is creating more jobs, and better paying jobs. It is the key to keeping Australians safe and it means we are able to pay for the essential services that all Australians rely on. Our record is there and it's there for all to see, particularly in my home state where we are delivering on major record investment and major projects. We are delivering major highway and local road upgrades to bust congestion and improve safety for all road users. We're removing traffic pinch points through a $4 billion urban congestion fund. We've established a dedicated commuter car park fund to improve access to public transport, and are investing in public transport to improve access and liveability in our cities.

It is those opposite who are genuinely concerned—I beg your pardon, if—

Photo of Catryna BilykCatryna Bilyk (Tasmania, Australian Labor Party) | | Hansard source

No, you were right the first time!

Photo of Matt O'SullivanMatt O'Sullivan (WA, Liberal Party) | | Hansard source

No, I'll restate it! If those opposite were genuinely concerned about growing the economy and investing in game-changing infrastructure then they would speak to their colleagues in the WA state Labor government and get them to build the Roe 8 and 9 project. I'm happy to agree that this is the sort of infrastructure that needs to be brought forward. The Morrison government will deliver $1.2 billion for this project to any WA state government which decides on the Roe 8 and 9.

The money is there on the table, as it has been for each and every year since the McGowan WA Labor government came to power. They cancelled the project and they're squandering this funding. The first act of the Labor government was to cancel a multibillion dollar infrastructure project that was supporting jobs right there in Perth. It wasn't just shovel-ready; it was already underway. The Labor Party told those working on this project to go home! Where was the protection of jobs? So we on this side of the chamber will not be lectured to on this topic by those opposite, who cancel projects and destroy jobs. It was a leaf from the Daniel Andrews book of big infrastructure projects that they didn't need to take.

In direct contrast, the Commonwealth government is delivering record investment of over $13.5 billion to fund infrastructure projects in WA. This includes $1.6 billion in the most recent budget and $2.8 billion in last year's budget for major new projects. On roads, we are providing significant contributions to upgrade highways and to address local pinch points across the suburbs of Perth, as well as better connecting regional WA through projects such as NorthLink WA, the Tonkin Highway upgrades, Armadale Road, the Bunbury Outer Ring Road, the Albany Ring Road and the Great Northern Highway.

We've also supported key components which make up one of the largest rail transport projects underway in Australia. That includes the Forrestfield Airport Link, the Thornlie-Cockburn link, the Yanchep Rail Extension, the Morley-Ellenbrook Line, the extension of the Armadale Line to Byford, the Midland train station and the Lakelands train station. We're also making an investment of $207.5 million in the Oak Street-Welshpool Road and Mint Street level-crossing removals. There is $190 million for the Armadale Road bridge and $115 million for the renewal of the Fremantle traffic bridge. There is $51.8 million for the Wanneroo Road and Ocean Reef Road grade separation and $28 million for the Manning Road freeway on-ramp. There is $25 million for a business case to investigate the future road and rail connections for Perth and $10 million for the planning and development of EastLink WA—the orange route.

Under our $4.5 billion Roads of Strategic Importance initiative, an investment of $535 million is being made in WA, including $248 million for the Karratha to Tom Price corridor; $75 million for the Alice Springs to Halls Creek corridor; $70 million for the Newman to Katherine corridor; $70 million to the Wheatbelt Secondary Freight Route network; $50 million for the Port Augusta to Perth corridor; and $22 million for the Pinjarra Heavy Haulage Deviation.

Western Australia also shares in the $330 million that has been allocated to the Outback Way, which I know is something that Senator Smith has been advocating for a long time. Six hundred million dollars is going to the Northern Australia Roads Program and $100 million is going to the Northern Australia Beef Roads Program. WA industry, business and communities are benefiting from this substantial investment, projects which are helping to make our transport better, safer, more efficient and more reliable. These projects are also supporting thousands of full-time jobs and apprenticeships.

In closing, I'd like to thank those opposite, particularly Senator Gallagher, for the opportunity to highlight their hypocrisy on this issue.

5:54 pm

Photo of Malcolm RobertsMalcolm Roberts (Queensland, Pauline Hanson's One Nation Party) | | Hansard source

As a servant to the people of Queensland and Australia, I want to discuss this issue of infrastructure spending because it leads to the topic of productive capacity, and that's something I talk about repeatedly because that is the future of our country. Before doing so, though, I'll quote an executive member of a prominent Liberal metropolitan branch in Australia, a member of the Liberal Party. He called my office today to congratulate me on the questions I asked of Senator McKenzie yesterday. His words were 'fantastic' and then, as he said, 'It's wicked what's happening to New South Wales.' Before the Labor Party jumps with glee and says, 'Well, there's a prominent Liberal actually condemning the Liberal Party on infrastructure,' in fact he would not applaud the Labor Party. He was really complimenting the need to discuss infrastructure and dams. The Labor Party doesn't learn. It repeatedly raises this issue to bag the Liberal Party, but, while we agree with many of the criticisms, we actually end up proving that the Labor Party is aligned with the Liberal Party. So let me do that again.

The original Labor Party chalked up many, many accomplishments. Labor politician Bill McKell pushed the Snowy River scheme and even threatened to invoke a state of emergency if the Liberals did not get on board. But nowadays, the Labor Party follows the Greens. There's no evidence on what's going on with the climate, but the Labor Party follows the Greens. The Greens go on ideological opposition. They refuse to build dams; the Labor party agrees. They try to shut down the use of coal; the Labor Party agrees. What we see is the destruction of energy, hospital beds, traffic, tax and immigration, the same things as the Liberal Party— (Time expired)

5:57 pm

Photo of Catryna BilykCatryna Bilyk (Tasmania, Australian Labor Party) | | Hansard source

I also rise to speak on this matter of public importance about infrastructure. We all know that the Morrison government is in denial. The economy is weakening, but those opposite have just buried their heads in the sand. They repeat the mantra 'the fundamentals are strong' without understanding that, with lower wage growth and increased fear about security of employment, people are looking to spend less and pay down their debt. It is clear the Morrison government doesn't have a plan to rescue this failing economy.

Today's matter of public importance calls on the government to make a positive economic decision, one which will create employment and improve productivity into the future by bringing forward infrastructure spending. The experts agree that this is the right course of action. The Governor of the Reserve Bank of Australia, Dr Philip Lowe, urged Treasurer Josh Frydenberg to spend on infrastructure, and he has made this call because he understands that we must not rely on monetary policy alone but utilise other mechanisms to get the economy back on track. But he's not alone. Just last week, the Masters Builders Australia supported this idea. Master Builders CEO Denita Wawn, speaking at Parliament House, called on the government to bring forward construction of infrastructure.

It's clear the government has pushed future infrastructure further down the line with purely political motivations. Most of the money that the government has in its infrastructure budget is outside not just this election cycle but the election cycle after the next one. It's not credible to say you have a plan to build infrastructure when that plan is just to delay it for years and years to create an artificial surplus.

On this side of the chamber, we understand the importance of modern, productive infrastructure to the Australian economy. Not only are jobs created during the construction of infrastructure; by having access to better roads, rail and port facilities, it makes it easier and cheaper for businesses to transport resources and manufactured goods both within Australia and to our export markets. Newer and safer roads will also help reduce our road toll currently—a tragedy that not enough action is being taken on to reduce. Opportunities in our economy arise from better infrastructure.

Of course, in my home state of Tasmania, we've seen a failure in infrastructure planning and delivery by both the state and the federal governments, who have been in power since 2014 and 2013 respectively. In Tasmania, there are a number of major infrastructure projects that could be brought forward if the government could get their act together. I know they're good at taking the credit for opening buildings that the Labor Party funded anyway but they really need to get their act together. The Hobart-Sorell corridor is in need of upgrading. Traffic is often gridlocked along this corridor in the mornings and evenings, and it is causing unacceptable delays and frustration for the people of Sorell and for those further out on the Tasman Peninsula. It is in absolutely desperate need of an upgrade. Sections of the Bass Highway are also in need of improvement. The Bass Highway is critical to Tasmania's economy, carrying more than one million tonnes of freight each year worth about $1 billion. This includes trucks with farm produce, livestock and bulk milk that need to negotiate sections of the road which drastically need improvement.

The federal and state governments have also failed with the planned replacement of the Bridgewater Bridge. In fact, that's just become embarrassing for both governments. Unfortunately, since Mr Turnbull and Mr Hodgman announced the replacement bridge project in 2018 it has dropped off Infrastructure Australia's priority projects list after the state government botched the business case for it. It was shoehorned into the Hobart City Deal and it's unclear when the new bridge will be delivered, if ever. These projects and many others across Tasmania would provide an immediate and enduring economic benefit to the local economy.

Australia is experiencing the slowest economic growth since the global financial crisis. Wages are stagnant, underemployment is at record highs and the world economy is teetering. Good government investment in infrastructure to improve the lives of all Australians and to boost the economy, as Labor did in government, is drastically needed. During the global financial crisis, Labor invested in infrastructure, in saving jobs and in preventing the economy from going into recession. It's the responsible thing for this government to do but this government has failed. The Liberal-National government is in its third term and has failed dismally, especially for the people of Tasmania. The government needs to start taking infrastructure investment seriously, as I said, in Tasmania in the three key areas that I've outlined tonight. (Time expired)

6:02 pm

Photo of David FawcettDavid Fawcett (SA, Liberal Party) | | Hansard source

Those opposite have raised this MPI because of concerns about the economy, but have once again lapsed straight away into speaking about spending on infrastructure, including Senator Bilyk, who has just spoken. Tax more, spend more, spend more quickly is the rhetoric. It's fascinating that she has actually been prepared to harp back to the global financial crisis, where there were headlines for articles around the Building the Education Revolution program that said 'Millions handed to axed schools in stimulus debacle'. Those articles talked about the fact that if you just pour money into infrastructure without suitable planning and making sure of its productive infrastructure, it's not actually money well spent.

In contrast, we are a government that understands what actually makes a productive economy. It's worthwhile looking at some of the facts. Let's start with the test that the former shadow Treasurer, Chris Bowen, set in 2013 for the coalition government. He said that if we're going to manage the economy well, there are a few things we have to achieve: keep unemployment below 6.25 per cent, keep Australia in the top 10 wealthiest countries, maintain our AAA credit rating with at least three stable outlooks and keep taxation as a percentage of GDP below 23.7 per cent. Well, tick, tick, tick and tick. The government has done each of those things.

One of the things that Australians recognise is that the reason we can afford to pay for the $10 billion infrastructure program—sorry, the $100 billion infrastructure program—we have over the next decade is because there are more Australians now in work than ever before. The participation rate is higher than ever before. Since the coalition have come to government, we've created more than 1.4 million jobs, the majority of which are full-time. Just in case you think the employment figures can be fiddled, it's important to understand that, despite the high participation rate, we also see that the number of Australians of working age who are dependent on welfare is at a 30-year low. With less spending on welfare, because people are not reliant on it, and more people in work, what we see is that more taxation is available to the government because more people are working and paying tax and, therefore, we can invest in the infrastructure.

So we are investing in infrastructure without raising taxes in the way that the Labor Party had planned, which was comprehensively rejected by the Australian people in May this year. That's despite the fact that, if you look globally, there are headwinds: Germany, the UK and Singapore are amongst a number of countries in the OECD that are recording negative growth in the June quarter. Yet Australia continues to grow. Our global trade volumes globally are lower compared to a year ago, and the IMF and the OECD have downgraded the outlook for world growth. Yet, despite that, Australia's nominal GDP has grown by 1.2 per cent, and 5.3 per cent for the 2018-19 year.

So we can afford to invest in infrastructure. In my home state of South Australia we have seen a range of infrastructure programs funded. In fact, between 2013-14 and 2028-29 some $8 billion will be spent in South Australia.

Photo of Don FarrellDon Farrell (SA, Australian Labor Party, Shadow Special Minister of State) | | Hansard source

All South Australian money—South Australian and federal Labor money!

Photo of David FawcettDavid Fawcett (SA, Liberal Party) | | Hansard source

As Senator Farrell knows, that is actually already underway, with things like the North-South Corridor going ahead.

There is another important thing that Senator Farrell should be hanging his head in shame about. Some of the best infrastructure being built in South Australia right now is in the Osborne naval shipyard, with an investment of is $535 million. Those opposite did not commission a single naval vessel to be built in Australia during their six years in government. The discussion would not be around: 'Is there room for all of the projects that are underway? Will they be built here in time? Will we get the yards? Will we get the workers in time?' They would be more concerned about the tumbleweeds at Osborne because of the ramp down, the valley of death that came from the inaction of those opposite.

Not only has this government managed the economy such that we have record employment and therefore the ability to invest in infrastructure; we're investing in productive infrastructure and we're investing in our defence capability, which means more sustainable jobs for generations of South Australians. It's already resulting in infrastructure such as the Future Frigate facilities as well as the Future Submarine facilities being built at Osborne.

Photo of Sue LinesSue Lines (WA, Deputy-President) | | Hansard source

The time for the discussion has expired.