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Foreword

The Australian Government is committed to supporting stronger, more sustainable rural and regional communities across Australia.

The 2010‑11 Budget continues record investment to ensure that rural and regional areas of Australia are best placed to benefit from the economic recovery as global growth resumes. This investment extends across rural and regional transport, water, energy, health, education and communications infrastructure for dynamic and productive regions.

Rural and regional Australia is critical to the Australian economy, generating 60 per cent of our export income and driving Australia's resource and agricultural industries. Infrastructure in our regions is therefore a vital part of preparing the nation's economy for future challenges.

In 2008 and 2009, the Rudd Government took decisive and immediate policy action to protect jobs from the impacts of the worst global economic crisis since the Great Depression.

The $42 billion Nation Building and Jobs Plan supported some 200,000 jobs and made critical investments in rural, regional and urban infrastructure, and made Australia one of the only advanced economies in the world to avoid economic recession.

Australia now has the fastest growth, lowest debt, lowest deficit and the second lowest unemployment rate when compared with the major advanced OECD economies. And over the longer term, Australian communities will enjoy the enduring benefit of deep investments in transport and education infrastructure that boost the productive capacity of the economy. In short, we are supporting the economic recovery today by building infrastructure that rural and regional Australia needs for the future.

The growing economies of our region will continue to drive global demand for our mineral and agricultural commodities. The Australian Government is committed to addressing infrastructure bottlenecks and capacity constraints that can threaten economic growth in rural and regional Australia.

The Australian Government has begun a 'Nation Building Decade', investing a record $37 billion in road, rail and port projects across Australia, from 2008‑09 to 2013‑14, to boost national productivity and create jobs.

This Budget invests $996 million in equity into the Government-owned Australian Rail Track Corporation (ARTC) for a productivity-boosting package of rail projects across rural and regional Australia to provide stronger steel rail, more concrete sleepers, bridge replacements, new passing loops and associated rail infrastructure works to strengthen the interstate freight rail network, take more trucks off our roads, and secure the future of freight rail over the longer term. This investment will improve the reliability, performance and capacity of ARTC's network and deliver significant productivity and safety benefits for rural and regional Australia.

This investment in the interstate rail network will help create and support jobs in regional areas, help take more trucks off our regional roads, increase the nation's productivity and deliver significant environmental benefits.

The Government will build on these investments by establishing a new ongoing infrastructure fund for the states and territories, as part of its tax plan for the future. The fund will commence in 2012‑13 with an initial contribution of $700 million and will be worth more than $5.6 billion over the decade. This will support state investment in nation-building infrastructure, delivering better infrastructure for rural and regional communities, especially in the resource-rich states.

This Budget year, the Government will provide record funding to assist rural and regional councils and shires to deliver their services, maintain local roads and upgrade local community facilities. Around $1.6 billion in funding will go to rural and regional councils through Financial Assistance Grants and the Roads to Recovery program.

Through the Australian Council of Local Government, we are partnering with local governments in an unprecedented way to address the future economic, social and environmental sustainability of our communities.

Regional Development Australia (RDA) committees, an Australian Government initiative, are working closely with stakeholders across all of our regions to promote economic, social and environmental solutions to local issues. The Australian Government is working closely with RDA committees to develop regional plans to help guide the future direction of our communities.

The Australian Government is committed to dealing with infrastructure shortfalls to support the population we have now and to manage a changing population. For the first time in Australia's history the Australian Government has a Minister for Population. Over the next 12 months the Government will consider what action is needed to accommodate Australia's long term needs. That will include how infrastructure investment can support future growth, increase our economic productivity, and deliver the best possible environmental outcomes.

Australia's agriculture, fisheries and forestry industries will continue to underpin economic growth and jobs in rural and regional communities. The Government will continue to support productivity, research and innovation in Australia's primary industries to help meet future challenges, including climate change and drought, biosecurity and global food security.

Australians are resilient, innovative and hard working. Investing in our productive capacity must include strengthening our skills base and education system. The Australian Government is providing an additional $1.2 billion through the Apprentices Incentives Program to develop a significantly more skilled Australian workforce.

The Education Revolution will continue creating a world-class education system for Australia. The Australian Government's commitment to building school infrastructure, modernising digital education resources and to provide national consistency in education is delivering long-term benefits for our national and international competitiveness.

The Australian Government and seven of the states and territories agreed on 20 April 2010 at the Council of Australian Governments to a major shift in roles and responsibilities in the Australian health system, with consequent changes in funding arrangements that will see the Commonwealth become the major funder of the Australian hospital system. The National Health and Hospitals Network represents the largest reform to the health system since the inception of Medicare.

The Government has announced a major package of investments to support the delivery of the Network. The 2010‑11 Budget delivers further investments of $2.2 billion over four years in areas such as better access to General Practitioner (GP) and primary health care, the nursing workforce, modernising our health system through personally controlled electronic records, and fundamental changes to the way the health system works. These investments bring the Government's total reform investment package to $7.3 billion over five years.

As part of these reforms, the Government is working to ensure all Australians have access to world-class health care no matter where they live by, ensuring funding reflects higher costs in rural and remote Australia; improving services in rural, remote or regional communities; and supporting the rural health workforce.

Rural and regional Australia will reap the benefits of the Australian Government's significant investment in communication technology. Developments in Information and Communication Technologies (ICT) have already helped reduce the tyranny of distance that separates Australia from major global markets. The National Broadband Network will bring fast and affordable broadband to Australian businesses, regardless of where they are located. The new network will dramatically improve broadband for households, particularly for people living in rural and regional Australia.

The Government is mindful of global environment and energy issues and is working towards the provision of adequate, reliable and affordable energy to meet future energy consumption needs and to underpin strong economic growth, consistent with the principles of environmental responsibility and sustainable development. That is why the Government is providing $652.5 million over four years to establish a Renewable Energy Future Fund as part of the Government's expanded $5.1 billion Clean Energy Initiative. It will provide additional support for the development and deployment of large and small scale renewable energy projects and will include partnerships between the Government and the private sector to make critical early stage investments to leverage private funds to support the commercialisation of renewable technologies.

In just two years, the Australian Government has developed and delivered a comprehensive range of policies and programs designed to equip rural and regional communities to deal with global and local challenges. In the years ahead, we are committed to ensuring that our investments are well-targeted, that our partnerships are meaningful and productive and that our engagement with local communities delivers the best possible results for rural and regional Australia.

 

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