Kilgariff calls for increased funding for Restart NSW Infrastructure Fund from port leases following State Budget
June 13, 2012
Australian Logistics Council (ALC) Managing Director Michael Kilgariff has backed a NSW Budget pledge of $5 billion in road spending but has warned that the Restart NSW Infrastructure Fund could be underfunded.
Roads Minister Duncan Gay has unveiled $2.2 billion for new roads, $1.3 billion for road maintenance, $311 million for traffic network improvements and $270 million for road safety in his portfolio’s part of the 2012-13 State Budget.
“We are committing $941 million towards duplicating the Pacific Highway and finally getting this dangerous stretch of road upgraded,” Gay says.
“The NSW Government is providing $341 million towards upgrading vital roads infrastructure to support the growth of housing and jobs in Western Sydney.
“Importantly, we are also providing $30 million towards building Sydney’s missing motorway link.
“In keeping with our election promise we are planning ahead for a future Sydney motorway network, in anticipation of the State Infrastructure Strategy being released by Infrastructure NSW in September.
Elsewhere,
$100 million in Federal and State money will go to complete the Holbrook bypass on the Hume.
The proposed Pacific Highway spend led to yet
another round of bickering between the State Government and Federal Infrastructure and Transport Minister Anthony Albanese
over co-funding for a complete duplication.
Albanese again
criticised NSW for not reaching the threshold for a 50-50 split while NSW stuck to its mantra that the traditional split for this highway was 80-20, with
Federal spending taking the bigger share.
The ALC describes the promised investment as important steps towards increasing efficiency and avoiding gridlock.
“In particular, ALC welcomes the funding allocations for the Northern Sydney Freight Corridor and the Enfield Intermodal Logistics Centre Development – both of which are critical in the push to get more freight from road on to rail,” Kilgariff says.
“The $1 billion allocated for maintenance work on the state’s roads and bridges to increase their structural capacity, as well as the announced upgrades of the Pacific and Princess Highways, and the M2 and M5 motorways also have the support of ALC.
“ALC is also calling on the Government to drive further efficiencies along the supply chain by ensuring it maximises the level of funding going to the Restart NSW Infrastructure Fund.”
He highlights the Budget’s infrastructure statement that indicates only the net proceeds from the proposed leases of Port Botany and Port Kembla and the sale of residual electricity generation assets after debt retirement will be transferred to the fund.
“ALC would prefer to see the full proceeds of these and other privatisations be deposited into the fund to build critical freight logistics infrastructure which have passed rigorous cost benefit analysis,” Kilgariff says.
“Using the funds in this way would also help drive further efficiencies along the supply chain and reduce business costs, which can then be passed back to consumers through cheaper goods at the supermarket.
“As the NSW Long Term Transport Master Plan Discussion Paper makes clear, there are many projects NSW desperately needs to ensure the efficient movement of freight in the state.
“ALC also notes the Government is considering the role of pricing across the transport network to drive change to the demand profile for the road and rail networks.”
The organisation believes such mechanisms should be adopted on the basis that they:
- deliver improved productivity, such as better access to key routes
- do not distort the heavy vehicle industry and the charges are transparent and justified
- the new model is accompanied by a rigorous compliance and enforcement regime to ensure everyone pays their way, no more and no less.
The Budget Papers show Government plans to spend $61.8 billion on infrastructure in total in the four years to 2015-16.
Of that, 2012-13 will make up $15 billion, with 41 percent going on transport infrastructure.
That will rise to 42 percent for the four-year period.
For 2012-13, Roads and Maritime Services will receive $2.8 billion, Just behind Networks NSW at $3.4 billion and ahead of Rail Corporation of NSW at $2.5 billion, while Sydney Ports Corporation will get $225 million.
Over the life of the government, $26 billion in transport spending should include
- North West Rail Link ($3.3 billion)
- South West Rail Link ($1.4 billion)
- Northern Sydney Freight Corridor ($950 million)
- upgrades to the Pacific Highway ($5 billion), Hunter Expressway and ancillary works ($845 million) and the Princes Highway ($596 million)
About $70 million over five years will go to implement the Local Government Infrastructure Backlog Policy.
Traffic fines set out in the Road Transport (General) Regulation 2005 will increase 12.5 percent from July 1, with the Government noting that the cost of collecting fine revenue has risen by 21 per cent over the past five years. This is expected to raise $180 million over the four years to 2015-16.
