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Economic and Business Development

Regional infrastructure

Roads

The 2001-02 Federal Budget for roads is the largest in almost a decade. Projected road expenses are up 26 per cent over 2000-01 figures.

The cost increases vary among States and Territories, with Victoria up by 77 per cent over last year, and rises also for Western Australia (up 30 per cent), South Australia (up 18 per cent), Queensland (a 16 per cent jump) and New South Wales (an increase of 10 per cent).

Overall Commonwealth roads programme expenses for 2001-02 are $1,819.6 million.

Roads to Recovery Programme

Councils throughout Australia also receive a further $302.2 million instalment in 2001-02 under the Roads to Recovery Programme, which comprises $1,209 million over five years from 20 February 2001. The Roads to Recovery Programme commenced in March 2001 and already more than $62.5 million has been provided to over 430 councils nationwide. As with the revenue sharing grants, councils are free to spend this money according to local priorities.

The additional expenditure for local roads recognises the Federal Government's holistic approach to roads funding - from major interstate highways to feeder freight routes, port roads, strategic bridges, commuter routes and regional arterials.

The Budget allocates $41 million in 2001-02 towards a $1,300 million Western Ring Road around Sydney, while the Federal Government is also committed to funding the $80 million widening of the F3 Motorway between the Hawkesbury River and Calga on the New South Wales Central Coast. The Government will provide $25.3 million to begin constructing the Scoresby Freeway through Melbourne's eastern suburbs. The overall cost of this project is $1 billion. The Bruce Highway north of Brisbane will be widened to six and eight lanes, a new Hume Highway entrance to Melbourne will be built, and new port roads will be started at Brisbane, Adelaide and Perth. Four provincial cities and towns on the interstate National Highway network will be bypassed.

The Pacific Highway upgrading, which has resulted in a rapid transformation of this coastal corridor, will cost the Commonwealth $82.2 million (for New South Wales and Queensland) in 2001-02. The upgrading includes the most expensive road project in rural Australia - the Yelgun - Chinderah deviation. Other rural highways to be funded include the Great Western Highway and Summerland Way in New South Wales and the Calder Highway and Melbourne - Geelong Road in Victoria.

While the roads programme serves the Government's strategic objective of improving the network of roads connecting `inland ports', railheads and rural manufacturing centres with cities and coastal ports, its also addresses safety.

The National Highway Programme includes a boosted safety and minor works component. Under the separate Black Spot Programme, $48.8 million will be allocated in 2001-02, eliminating approximately 400 crash `black spots'. Since its introduction in the 1996-97 Budget, the Road Safety Black Spot Programme has cost $186 million and provided more than 1,800 projects. About half of the funds allocated have been, and will continue to be, for safety-orientated projects in regional areas. This is in recognition of the high level of road trauma in regional and rural Australia.

Notwithstanding the Roads to Recovery Programme, the Commonwealth continues to provide untied grants to local government identified for roads which in 2001-02 will cost $422.3 million - an increase of $13.5 million from 2000-01.

Bridges

The Government's bridges upgrading programme continues, including strengthening of the interstate National Highway bridges that will cater to higher mass limit vehicles. The Government has also agreed to fund upgrading of another 40 bridges on roads other than the National Highway. It has committed $44 million to build three replacement bridges across the Murray River under a joint programme with Victoria and New South Wales.

Rail

Alice Springs to Darwin railway

The rail sector, and industries that rely on it in South Australia and the Northern Territory, will receive a huge boost from construction of the Alice Springs-Darwin railway. The project, costing more than $1 billion, will generate 2,000 jobs during the three-year construction phase.

The Federal Government has committed $100 million from the Federation Fund and an additional $91.4 million towards the railway, which is to be built and operated by a private consortium. The 2001-02 Budget allocation for the project is $110 million.

The railway has the potential for opening new export markets to Asia for food and goods produced in rural Australia. The railway is also expected to generate employment and opportunities for Australian industry in regional areas.

Mainline track investment

A sum of $14.6 million has been allocated to upgrade the mainline standard gauge track in 2001-02. Spending under the programme has been carefully targeted, and has already delivered significant transit time reductions and axle-load and train-length increases to the network. When combined with other federal rail reform initiatives, the track improvements will significantly improve the efficiency of rail transport, thereby reducing freight costs for people in rural and remote areas.

In addition, the Commonwealth is prepared to provide $111 million to the Australian Rail Track Corporation (ARTC) in the form of an equity injection that will enable it to fund rail initiatives in New South Wales. This payment is conditional on ARTC reaching agreement with New South Wales on suitable access arrangements and the development of a sustainable business case to support the investment.

Other rail investments

The Government has also committed $20.5 million from the Federation Fund to restore the original Abt Railway between Queenstown and Strahan on Tasmania's West Coast. The 2001-02 Budget allocation for this project is $630,000. This capital injection is expected to contribute to economic growth through new investment and tourism opportunities, as well as boosting employment on Tasmania's West Coast. The project is expected to be completed by the end of 2001.

The Government has taken a facilitating role in supporting the Australian Transport and Energy Corridor (ATEC) and its commercial partners to develop ATEC's Melbourne-Darwin inland railway proposal. The Federal Government recognises the importance of remaining fully engaged as the project develops. Accordingly, in April 2001, it announced the appointment of a Committee of Government members to help facilitate development of ATEC's proposal. The project has the potential to deliver major benefits to Australia and its regions by putting producers in closer contact with markets both here and overseas, and would greatly enhance service delivery and competitiveness in inland Australia.

The Federal Government has agreed to provide $5 million towards the Beaudesert Shire Railway project in Queensland from Federation Funds. The railway is of considerable historic interest and the restoration of heritage infrastructure will provide a focus for tourism and ongoing benefits to the Beaudesert community.

The Commonwealth Government and Queensland Government are jointly funding a feasibility study into a light rail system on Queensland's Gold Coast.

Torres Strait infrastructure

The Commonwealth will be providing $15.3 million over three years from 2001-02 for the second stage of the Torres Strait major infrastructure programme, subject to continued matching funding being provided by the Queensland Government. This programme has already produced substantial and permanent improvements to water supplies, sewerage, roads and other much-needed essential services throughout the region, and this funding will allow the programme to be extended to other Torres Strait Islander communities.

Indigenous housing

Some $75 million will be allocated over four years from 2001-02 to expand the supply of healthy Indigenous housing through the construction of new houses, upgrading of existing housing stock, infrastructure improvement, and through measures that build the capacity of community housing organisations to manage and maintain housing stock more effectively.

Defence infrastructure

In 2001-02, there is planned capital investment of $290 million on regional facilities and bases. An estimated $150 million of this capital investment will be spent in Townsville, Eden, Nowra and Darwin regional centres.

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