Federal budget's $11bn for road, rail is light on

The Australian Trucking Association reckons the $11.4bn pledged in the May federal budget to road and rail upgrades over five years, is less than 20% of what is really needed.

It says about $60bn is needed to upgrade existing roads and establish new road corridors.

The group says Australian freight is expected to double in 20 years but rail is only carrying 20% to one third of the load, depending on the source.

However the Australasian Rail Association says the extra funding for rail is welcome. Chief executive Bevan Nye, says rail has remained competitive until now, and it “will be exciting to see what it is capable of in future.”

A one-off grant of $450m in the budget, will go to new rail infrastructure projects on the interstate system, including improvements and realignments on the NSW north coats line.

That is in addition to the $872m the federal government will invest over the next five years in the NSW interstate and Hunter Valley networks

However, all but $1.5bn for the Auslink program announced in the budget, including $1.45bn for the Roads to Recovery program announced in January, had been announced previously.

The government planned to announce how the $1.5bn would be divided up on June 7, about the time this issue is published. Auslink will replace the Roads of National Importance program in which the federal and state governments fund projects such as improvements to the Pacific Highway between Newcastle and Brisbane.

But a large proportion of the Auslink money will not be spent until after 2006-07 when annual roads spending will increase by $422m, just as a rural drivers' fuel subsidy worht $265m a year, ends.

In the budget, the government restated its commitment to spend $93.2m on upgrading the Pacific Highway in 2004-05. That will be the last federal funding for that road, despite the fact only half will be four lanes when upgrading finishes. Total road funds for NSW in 2004-05 will be $708m.

The commonwealth has allocated $2.1bn for roads in 2004-05 including an extra $63m for the Mitcham Frankston freeway, from a total of $422m of federal money for that artery, if the Victorian government drops its plan to charge tolls. The state will also receive $97m in local road grants.

Spending on existing projects is forecast at $1.97bn, up from $1.74bn in 2003-04.

Queensland will receive $343m from the commonwealth, including the $120m it has already committed to the disputed Tugun bypass on the Gold Coast, as well as $88m in untied local road grants and $52m for Roads to Recovery projects.

Other funding includes WA $241m, SA $115m, Tasmania $63m, NT $54m and the ACT $22m.

Federal transport minister John Anderson said Auslink would connect major road and rail projects “into a broader and more strategic network of transport corridors.”