Australian Government, 2010‑11 Budget
Budget

Compendium of Priorities and Initiatives (Continued)

Infrastructure, Transport, Regional Development and Local Government

Rail Productivity Improvements

This Budget allocates a $996 million equity investment to the Government-owned Australian Rail Track Corporation (ARTC) for a productivity package of upgrades across Australia to modernise and improve the capacity of the interstate rail network, helping to get more trucks off rural and regional roads. The new projects will create some 1,500 jobs, mostly in regional Australia, and help save some 280,000 tonnes of carbon emissions over 30 years.

In a boost for regional economies, the required material — the new concrete sleepers and metal rails — will be sourced from factories in Whyalla, Grafton, Geelong, Mittagong and Wagga Wagga. The productivity package includes:

  • $170 million to straighten the line between Maitland and the Queensland border at 57 locations (NSW), helping to reduce transit times along the eastern seaboard by almost one hour.
  • $24 million to build three double track passing loops near the NSW towns of Goulburn, Moss Vale and Glenlee, providing trains with more overtaking opportunities and fewer delays.
  • $312 million to re-rail the lines between Whyalla and Broken Hill and between Parkes and Broken Hill, which will allow both to be used by heavier trains.
  • $253 million to replace the existing old wooden sleepers on the line between Parkes and Broken Hill with one million new concrete sleepers, greatly improving its capacity as well as reducing transit times and the need for temporary speed restrictions during summer.
  • $110 million to re-rail the line between Albury to Melbourne to Geelong, reducing transit times and allowing it to be used by heavier trains.
  • $32 million to build four new passing loops between Gheringhap and Maroona, providing trains with more overtaking opportunities and fewer delays.
  • $95 million project to re-rail the line between Koolyanobbing and Kalgoorlie and build two new passing loops, reducing transit times and delays. The project will support 315 jobs and take approximately 11 months to complete. Investment is subject to ARTC concluding arrangements for access to the interstate network with WestNet Rail.

The projects will support significant rural and regional construction and economic activity and boost the cost competitiveness of freight rail along the North-South and East-West rail corridors benefitting rural and regional communities around Australia.

In addition, the 2010‑11 Budget allocates $70.7 million to complete detailed planning of the Moorebank Intermodal Freight Terminal Project in Sydney's South West, with the staged redevelopment of the site expected to start in 2013. This work will be undertaken in partnership with the site's current owner, the Department of Defence, the Department of Infrastructure, Transport, Regional Development and Local Government, and the Department of Finance and Deregulation.

Once operational, the new facility will take more than 1 million trucks a year off the road, with benefits across the supply chain including in rural and regional Australia.

Nation Building Plan for the Future

The Nation Building Plan for the Future allocated $8.5 billion from the 2009‑10 Budget for nationally significant transport infrastructure projects across Australia that are critical to boosting our economy's productivity. This is part of the Australian Government's continued rollout of the most significant infrastructure program in our nation's history, supporting jobs, productivity and sustainability right across the country.

Projects will help to connect our regional areas with major towns and cities and with commercial and export markets. They will increase the efficiency of freight and passenger transport, and will bring long term economic benefits to our regions.

An example of this investment includes $488 million to upgrade the Bruce Highway from Cooroy to Curra. This investment will separate long distance from local traffic and improve safety and travel times for all people travelling on this section of road.

$5.6 billion State Infrastructure Fund

World class infrastructure will boost Australia's productivity for the future, and will ensure Australia remains an attractive place to invest and establish new businesses, creating jobs now and in the future.

Reinvesting some of our resource profits into capacity-building infrastructure will help workers make the best use of their skills, and businesses to make the best use of their capital, building sustainable growth well into the future.

The Rudd Government will build on its existing 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 provide more than $5.6 billion over the decade.

This Fund will ensure infrastructure investment is a permanent priority of Commonwealth and state budgets, and will boost infrastructure development in rural and regional communities, especially in resource-rich states.

Regional and Local Community Infrastructure Program

Since it was announced in November 2008, the Government has provided funding of more than $1 billion under the Regional and Local Community Infrastructure Program. This funding is provided to local government authorities to support jobs and continue the process of building and modernising infrastructure that revitalises our communities and promotes long term economic, social and environmental sustainability in Australia's regions. Under this program local government authorities have identified projects of significance.

By providing communities the opportunity to nominate their priorities, the Government's investment has resulted in more than 4,900 projects being funded including town halls, libraries, community centres, sports grounds and environmental infrastructure.

National Transport Regulation

The Government will provide $8.3 million in 2010‑11 to establish national regulators for heavy vehicles, rail safety and maritime safety, and for an expanded rail and national maritime safety investigatory function.

Of this funding, $2.3 million will be provided for the Commonwealth's contribution to set up project implementation teams in the host jurisdictions to establish the national heavy vehicle regulator in Queensland and the national rail safety regulator in South Australia. State and Territory Governments will also contribute to this activity according to the National Transport Commission formula. The Australian Maritime Safety Authority will receive $5.1 million to take on maritime safety regulation responsibilities for all commercial vessels, and the Australian Transport Safety Bureau will receive $0.8 million to establish a national investigation framework for rail and maritime safety.

National transport regulation reform is part of the national partnership agreement reached by the Council of Australian Governments (COAG) to deliver a seamless national economy. Further information about the COAG agreement to implement national transport regulation reforms can be found in the COAG Communiqu�s of 2 July 2009 and 7 December 2009.

Infrastructure Employment Projects

Infrastructure Employment Projects aim to support jobs and skills development through projects that build long term community infrastructure and social capital across Australia. The program focuses on projects that generate jobs in regions affected by the global economic crisis.

An example is the Government's investment of $5.5 million to upgrade the terminal at Gladstone Airport, to help the region's recovery from the impact of the global recession and to assist it to prepare for significant planned industrial expansion in coming years. The upgrade will expand the arrival and departure halls, provide space for additional security screening facilities and construct passenger facilities in the departure hall, as part of the Council's broader development plans.

National Bike Path Projects

National Bike Path Projects (NBPP) is a $40 million initiative that will invest $14.5 million in 2010‑11. The program will develop, extend and refurbish cycling infrastructure across Australia.

Over 170 projects have been approved for funding and are expected to support more than 1,900 jobs in local communities across Australia. Improved cycling infrastructure will provide more Australians with a greener, healthier way of getting to and from school or work, and over time will help take cars off local roads and reduce carbon emissions.

Bike path projects will include:

  • off-road bike paths (excluding mountain bike trails);
  • on-road bike lanes (road-widening or marking bike lanes on an existing road), and
  • bicycle parking facilities.

Better Regions Program

The Better Regions program is providing $176 million over four years, with an investment of $110.9 million in 2010‑11, to assist regions build on their strengths, improve liveability and create jobs. The Program is designed to fund projects that have been identified as priority investments by local communities. The projects were announced as commitments by the Government during the 2007 election campaign.

The funding is helping local communities deliver local infrastructure and other regional community projects including arts and cultural centres, sports facilities and community centres. This investment by the Government seeks to address the economic and social needs of communities by providing important community infrastructure built through partnerships between the community and all levels of government.

The Government is using this program to fund over 100 diverse projects. Projects completed under the program include the provision of pit lane infrastructure for the V8 Super Car race in Townsville, which was also used as rehearsal space for the Australian Festival of Chamber Music; a $2 million contribution towards the regional aquatic centre in Launceston, Tasmania and a $40,000 grant for the installation of rainwater tanks for the Kyabra Community Association in outer Brisbane.

Local Government Reform Fund

The Local Government Reform Fund was established by the Government to accelerate the implementation of the Local Government and Planning Ministers' Council agreed asset and financial management frameworks, deliver improved capacity and sustainability for councils, and provide better outcomes for local communities.

The Government is providing funding of $25 million under the Local Government Reform Fund in 2009‑10 and 2010‑11, with $24 million to be delivered to the states and territories under a National Partnership Agreement covering a range of innovative and collaborative reform projects. The balance of funding of $1 million will be used to support the collection and analysis of nationally consistent local government data. Improved national data capabilities will bolster local government's workforce planning ability and support states and territories reforms to increase business, asset and financial planning capacity.

Local Government Financial Assistance Grants

The Rudd Government is providing a record $2 billion in local government financial assistance grants in 2010‑11, including an estimated $1.35 billion for rural and regional councils and shires to deliver basic services, maintain roads and upgrade community facilities.

To assist local councils with planning for the recovery and to ensure local government has maximum certainty to begin planning their 2010‑11 works programs, the first instalment of 2010‑11 payments will be paid early, with some $511.6 million going to councils before the end of 2009‑10.

Local Government Financial Assistance Grants are provided under the Local Government (Financial Assistance) Act 1995. They have a general purpose and an identified local road component, both of which are untied to enable councils to fund local infrastructure and service priorities.

The 2010‑11 estimated grant allocation of $2 billion is $578 million more than the 2009‑10 allocation. To assist with the effects of the economic downturn, around one quarter of the 2009‑10 grant pool ($479.7 million) was paid to councils in June 2009.

South Australian councils will also receive $15.5 million in supplementary local road funding in 2010‑11 to address the relative disadvantage of South Australian councils in the local road component of the Financial Assistance Grants.

Australian Centre of Excellence for Local Government

As part of its partnership with Local Government, the Australian Government has invested $8 million towards the establishment of the Australian Centre of Excellence for Local Government.

The centre's program for 2010 includes delivering local government leadership programs and courses, coordinating infrastructure asset and financial management, building local government capacity to meet challenges like climate change and encouraging best practice in the sector.

The centre will also provide support to other Government initiatives including the $25 million Local Government Reform Fund and the collection and reporting of local government data.

Australian Council of Local Government

In 2008, the Rudd Government announced the establishment of the Australian Council of Local Government (ACLG) to forge a new cooperative engagement between the federal and local government.

The second ACLG meeting was held in Parliament House, Canberra, on 25 June 2009 with a theme of "Building Resilience in Local Communities". The Australian Government was joined by over 400 mayors and shire presidents from councils and shires across Australia and representatives from state and territory governments. The meeting provided the opportunity to address current or emerging issues facing local government which included the challenges posed by the global financial crisis and climate change.

The third meeting of ACLG will look further at building the economic, social and environmental sustainability of our communities and is planned for 18 June 2010.

Women in Local Government

As part of its commitment to the 2010 Year of Women in Local Government,  the Australian Government is providing $490,000 towards some practical initiatives to help increase the engagement of women in local government, including:

  • $250,000 for a three-year 50:50 Vision: Councils for Gender Equity program. To be conducted by Australian Local Government Women's Association, this program will audit councils and shires to determine the status and role of women in leadership roles as well as their participation in the workplace. The program will also establish an awards program to recognise excellence;
  • $100,000 in scholarship funding to enable senior women in local government to participate in the new Executive Leadership Program being developed by the recently established Australian Centre of Excellence for Local Government and the Australia and New Zealand School of Government;
  • $100,000 to improve the collection of data and reporting on the status of women in the local government sector; and
  • $40,000 will be provided to the Local Government Managers Australia for their 2010 Management Challenge, which will involve around 130 councils identifying strategies to promote gender equity in their councils.

Regional Development Australia

The Government's Regional Development Australia (RDA) network is fully operational, with committees established in all states and territories. RDA committees have held their first meetings and are developing their Business and Regional Plans.

Initial areas of focus for Committees are on the economic, environmental and social issues of their community, with Regional Development Australia committees contributing to and driving:

  • regional business growth plans and strategies, which help support economic development, the creation of new jobs, skills development and business investment;
  • environmental solutions, which support ongoing sustainability and the management of climate change (including the impact of drought, flood or bushfires); and
  • social inclusion strategies, which bring together and support all members of the community.

The inaugural RDA National Forum was held at Parliament House, Canberra, on Thursday 18 March 2010. The Forum brought together Chairs and Deputy Chairs of the 55 RDA committees to discuss the strategic direction of the network, share information and meet colleagues from across the country.

Funding of $15 million will be provided in 2010‑11 for RDA committees, to support the growth and development of Australia's regions.

East Kimberley Development Package

The East Kimberley region in Western Australia, including its Indigenous communities, is benefiting from a significant injection of funds from the Australian Government. The Government is contributing $195.2 million over 2008‑09 to 2011‑12 to support economic development and reinvigorate essential community infrastructure in Kununurra and the surrounding region.

The Australian Government's investments will help address key deficiencies in health, housing, education and community infrastructure. Many projects will be underway in 2010 and all projects will be completed by mid 2012.

Office of Northern Australia

The Office of Northern Australia (ONA) was established in March 2008 to:

  • provide advice on sustainable development issues in or affecting northern Australia;
  • improve coordination between governments, businesses and communities in Northern Australia and when they are involved in issues about northern Australia; and
  • since 2008, the Office of Northern Australia has also provided support to the Northern Australian Land and Water Taskforce and implemented the National Partnership Agreement on the East Kimberley Development Package.

Funding of $2 million a year for four years was provided in the 2008‑09 Budget.

Nation Building Agenda

Funding of $5.9 billion will be provided in 2010‑11 for road, rail and port initiatives across Australia, to support jobs, help drive Australia's long-term productivity and international competitiveness. This infrastructure investment is vital to strengthening the national economy and enhancing rural and regional Australia's capacity to access opportunities to prosper. The Australian Government's land transport infrastructure projects will benefit rural and regional Australia, by addressing capacity constraints, relieving traffic congestion, improving road safety, and improving connections with major cities and ports.

Black Spot Program

The Black Spot program provides funding for safety works such as roundabouts, crash barriers and street lights at places where there have been serious crashes or where serious crashes are likely.

The investment of $502.2 million from 2008-9 to 2013‑14 is helping to make our local roads even safer for motorists, cyclists and pedestrians. Each state and territory receives a share of the total funding, based on population and crash data.

State and territory governments, councils, community groups and individuals can nominate a black spot for funding. Nominations are considered by Black Spot Consultative Panels, which are made up of road experts, government advisors and local representatives. After examining each nomination, the panels make a recommendation to the Australian Government about a project's merit for funding.

Approximately 50 per cent of Black Spot funds in each state are reserved for projects in non-metropolitan areas. This ensures that crash locations in rural areas are treated, ensuring that rural and regional areas will receive the road safety enhancements they need.

Roads to Recovery Program

The Government will provide around $335 million of funding for rural and remote councils through the Roads to Recovery Program.

The Roads to Recovery program provides funding direct to local councils for road works chosen by the councils and to states and territories for roads in areas where there are no councils. Each funding recipient has a set allocation of funding over a program life. The Australian Government has increased funding for the program by $250 million over the five year period 2009‑10 to 2013‑14, bringing the total program funding to $1.75 billion.

Infrastructure Australia

Infrastructure Australia, the advisory council established to provide advice to the Australian Government on infrastructure issues, sought in October 2009 further proposals for reform and investment initiatives which support its seven themes for action. At the present time, Infrastructure Australia seeks to build a long term pipeline of reforms and investments.

In addition, Infrastructure Australia, in conjunction with the National Transport Commission, is currently preparing a National Ports Strategy for consideration by the Council of Australian Governments in mid 2010. Infrastructure Australia is also developing a National Freight Network Plan for later in 2010.

These initiatives will improve planning and coordination of our critical economic infrastructure, and ensure Australia's roads, rail networks and ports remain internationally competitive.

The Airservices Australia Enroute Charges Payment Scheme

The Australian Government is providing $14 million over four years to amend the current Airservices Australia Enroute Charges Payment Scheme (Enroute Scheme) to support vulnerable, uneconomic remote routes.

The Enroute Scheme was introduced in January 2002 as a transitionary measure to assist former Ansett subsidiaries and other regional airlines in the wake of the Ansett collapse. Under the scheme eligible regional operators have their enroute navigation charges fully refunded by the Government across their whole networks.

The Government is continuing its support for services to remote areas by establishing a more appropriate method of assistance to regional airlines than the assistance put in place following the Ansett collapse.

The Government has announced that it will amend the current model for assisting remote air services under this Scheme, targeting vulnerable routes rather than whole airline networks. The Government will use the Australian Standard Geographical Classification to identify those routes that will qualify for an increased subsidy. The changes will be introduced from 1 July 2010. The increased subsidies available will better encourage services to those locations where the need for regular air services is greatest.

Consolidation of existing remote aviation programs into a single program

Through the National Aviation White Paper (the White Paper), the Australian Government announced it will improve the effectiveness of its remote aviation programs by integrating infrastructure and service delivery components through the consolidation of remote aviation support programs into the Regional Aviation Access Program. This will result in a single program with a 2010‑11 Budget allocation of $25.1 million.

The Government has already acted to bring these programs together administratively. Integrating the programs will ensure support for remote air services and aerodromes is better coordinated and will provide greater flexibility in allocating funding, based on the greatest need.

The following programs will be consolidated under the Regional Aviation Access program.

Remote Aerodrome Inspection Program

The Australian Government's Remote Aerodrome Inspection (RAI) Program provides an aerodrome inspection service for 59 designated Indigenous communities. It was initiated as part of the Australian Government's response to recommendations contained in the report of the Royal Commission into Aboriginal Deaths in Custody. Normally, aerodrome inspections of this type would be the responsibility of the aerodrome owner/operator. However, they require specialised technical expertise not readily available in remote communities.

This Australian Government funded service provides practical assistance to remote communities heavily reliant on air services. The program facilitates training of aerodrome reporting officers as required for compliance with aviation safety regulations.

Remote Air Services Subsidy Scheme

The Remote Air Services Subsidy Scheme (RASS) subsidises weekly passenger and freight air transportation to communities which would otherwise have no regular access to transport. In 2008‑09, the scheme carried over 3,500 passengers and over 265,000 kg in freight and mail to 244 remote communities (including 78 Indigenous communities) in 10 remote regions across the Northern Territory, Western Australia, South Australia, Queensland and Tasmania.

Remote Aviation Infrastructure Fund

The Remote Aviation Infrastructure Fund is used to upgrade remote indigenous airstrips that received a RASS service and were also identified as requiring priority works. These upgrades will make them safer and more accessible. The airstrips present a vital lifeline to those living in remote indigenous communities across Australia. The airstrips allow those living in these areas to be supplied with essential items such as medical and business supplies, fresh food and long-distance educational materials.

Remote Aerodrome Safety Program

The Remote Aerodrome Safety Program (RASP) funds upgrades to airstrips in remote and isolated communities across Australia. Projects funded under the program improve the safety and accessibility of airstrips and facilitate the provision of non-commercial essential community air services including delivery of food supplies, community mail, passenger transport services, medical supplies and medical care.

Further information

Further information about these and other infrastructure, transport, regional development and local government initiatives relating to rural and regional Australia is available at www.infrastructure.gov.au.

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