Labor is moving to muddy up the Coalition’s infrastructure record by
pointing to a 25% cut in Infrastructure Australia’s budget before an
expected infrastructure package in the 9 May budget.
Labor’s infrastructure spokesman, Anthony Albanese, has called on the government to reverse the cut from $11.6m to $8.8m in the 2016 budget, which is due to take effect on 1 July.
The treasurer, Scott Morrison, is laying the groundwork for an infrastructure budget by announcing the government will separately account for “good” or “bad” debt, to be distinguished by whether it produces productive capital.
Two projects in particular are expected to be the focus: Sydney’s second airport at Badgerys Creek, which the government has said it will build itself, and the inland rail, which Malcolm Turnbull has described as a “very high priority”.
Albanese has been on a tour of Australia highlighting public transport projects that Labor believes should be funded, including Brisbane’s cross-river rail, Perth’s Metronet, Adelaide’s light rail project Adelink, Melbourne’s Metro and a rail link to Badgerys Creek.
Albanese argues that the 25% funding cut to Infrastructure Australia
and the creation of a separate infrastructure financing unit in the
Department of the Prime Minister and Cabinet will undermine its capacity
to evaluate projects and structure financing for them.
“Mr Turnbull should be supporting Infrastructure Australia in the name of evidence-based policy making and sensible financial stewardship,” he said. “Instead, he is usurping its role and slashing its resources.”
Albanese said that, after “four years of infrastructure neglect”, the government should use the budget to invest in projects that enhance productivity and boost economic growth.
Labor has criticised the government’s record on infrastructure, particularly the decision to dump public transport projects in 2014 in favour of funding the Perth freight link and Melbourne’s East West Link.
The East West Link was projected to return just 45c in the dollar and the Abbott government was criticised by the audit office for funding it prematurely.
The cancellation of that project by the Andrews Labor government set off a stoush with the federal government over $1.45bn of funds from the federal asset recycling program.
On Friday Albanese accused the Turnbull government of punishing Victoria for voting Labor by withholding asset recycling funds from Melbourne Metro, which Infrastructure Australia identified as a project with national significance.
“Victoria currently receives just 7.7% of the commonwealth’s infrastructure budget, despite being home to 25% of the Australian population,” he said. “A good way to begin addressing this inequity is to fund the Melbourne Metro, which the Coalition cut $3bn from in the 2014 budget to help fund the dud East West Link toll road.”
On Wednesday Turnbull said it was “absolutely untrue” that the federal government was shortchanging Victoria on infrastructure spending, citing the fact that 20% of roads spending is in Victoria.
He said that the Andrews government had wasted $1.2bn when it cancelled the East West Link which he called a “a vitally important piece of infrastructure”.
Asked about the cross-river rail in Brisbane, Turnbull said the project was important but still “at an early stage”, adding that the federal government had given $10m to develop the business case.
He pointed to other projects the government supported including light rail on the Gold Coast and $100m for a new stadium in Townsville.
“So right across the country, we are building, we are committed to developing the Infrastructure Australia needs to lead and succeed in the 21st century.”
Labor’s infrastructure spokesman, Anthony Albanese, has called on the government to reverse the cut from $11.6m to $8.8m in the 2016 budget, which is due to take effect on 1 July.
The treasurer, Scott Morrison, is laying the groundwork for an infrastructure budget by announcing the government will separately account for “good” or “bad” debt, to be distinguished by whether it produces productive capital.
Two projects in particular are expected to be the focus: Sydney’s second airport at Badgerys Creek, which the government has said it will build itself, and the inland rail, which Malcolm Turnbull has described as a “very high priority”.
Albanese has been on a tour of Australia highlighting public transport projects that Labor believes should be funded, including Brisbane’s cross-river rail, Perth’s Metronet, Adelaide’s light rail project Adelink, Melbourne’s Metro and a rail link to Badgerys Creek.
“Mr Turnbull should be supporting Infrastructure Australia in the name of evidence-based policy making and sensible financial stewardship,” he said. “Instead, he is usurping its role and slashing its resources.”
Albanese said that, after “four years of infrastructure neglect”, the government should use the budget to invest in projects that enhance productivity and boost economic growth.
Labor has criticised the government’s record on infrastructure, particularly the decision to dump public transport projects in 2014 in favour of funding the Perth freight link and Melbourne’s East West Link.
The East West Link was projected to return just 45c in the dollar and the Abbott government was criticised by the audit office for funding it prematurely.
The cancellation of that project by the Andrews Labor government set off a stoush with the federal government over $1.45bn of funds from the federal asset recycling program.
On Friday Albanese accused the Turnbull government of punishing Victoria for voting Labor by withholding asset recycling funds from Melbourne Metro, which Infrastructure Australia identified as a project with national significance.
“Victoria currently receives just 7.7% of the commonwealth’s infrastructure budget, despite being home to 25% of the Australian population,” he said. “A good way to begin addressing this inequity is to fund the Melbourne Metro, which the Coalition cut $3bn from in the 2014 budget to help fund the dud East West Link toll road.”
On Wednesday Turnbull said it was “absolutely untrue” that the federal government was shortchanging Victoria on infrastructure spending, citing the fact that 20% of roads spending is in Victoria.
He said that the Andrews government had wasted $1.2bn when it cancelled the East West Link which he called a “a vitally important piece of infrastructure”.
Asked about the cross-river rail in Brisbane, Turnbull said the project was important but still “at an early stage”, adding that the federal government had given $10m to develop the business case.
He pointed to other projects the government supported including light rail on the Gold Coast and $100m for a new stadium in Townsville.
“So right across the country, we are building, we are committed to developing the Infrastructure Australia needs to lead and succeed in the 21st century.”
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