Industry welcomes AusLink II

The Federal Government's land transport investment vehicle, AusLink II, will see $22.3bn handed down for road and rail projects between 2009/10 and 2013/14, treasurer Peter Costello said on Budget night in early May.

Living up to the pre-Budget hype, AusLink II will be the largest investment in land transport infrastructure yet made by an Australian government.

The initial AusLink program will total $15.8bn in spending between 2004 and 2008/09.

AusLink II will include $16.8bn over five years from 2009-10 for road and rail projects on the AusLink National Network. Details of these projects are yet to be announced, but transport minister Vaile says they will reflect the results of the 24 AusLink corridor studies.

An additional $250m will to be spent under AusLink on strategic regional projects before June 30, 2007.

In 2007/08, $537.7m in will be spent on local roads. Over the next five years to 2011/12, local road grants are expected to total more than $2.9bn.

2007-08 commitments

Some of the major land transport infrastructure funding commitments for 2007-08 include:

$781.1m for NSW , including more funding for the Pacific and Hume highways;

$566.1m for Victoria , including $60.1m the Geelong bypass, $53.1m for the Calder Highway, and funding to complete the Pakenham bypass;

$766.2m for Queensland . $400 million ($100m in 2007-08 and $300m in 2008-09) has been brought forward to begin construction on the $2.3 billion Ipswich Motorway Goodna Bypass between Dinmore and the Logan Interchange near Gailes, in Queensland;

$194.7m for South Australia , including $68 million for the Northern Expressway and Port Wakefield Road upgrade;

$308m for Western Australia , with $170m for the Bunbury Highway;

$86.8m for Tasmania , including $39m for Bass Highway duplication works;

$65.7m for the Northern Territory , including funding towards a new bridge over the Victoria River; and

$19.8m for the ACT .

For further program details go to www.dotars.gov.au/department/statements/2007_2008/media/index.aspx

Australian Road Forum

The Australian Road Forum welcomed the $22.3bn AusLink 2 package. The funding will achieve real value if it comes with a commitment to long-term planning and co-operation between all levels of Government, according to ARF president, Ray Fisher.

“Federal road funding in particular has remained fairly constant in real terms over the past five years, so the Budget's funding commitment is good news,” he said. “In terms of road transport infrastructure, national funding should be prioritised according to where it can deliver the best economic outcomes - that is, on the basis of productivity - balanced, of course, with a realistic commitment to maintaining those road assets.”

Fisher said the ARF also welcomed the commitment to the Black Spots program with funding increased from $45m to $60m a year from 2009-10. “According to the National Road Safety Action Plan for 2007/08, every dollar spent on making our roads safer returns $5 in economic benefit,” he said. “We urge governments at all levels to continue to focus their efforts and appropriate levels of funding on reducing the devastating social, physical and economic cost of road trauma.”

Corridor strategies

Fisher praised the co-operative work done to date by Federal and State governments on developing AusLink corridor strategies.

“While this work is not complete it clearly demonstrates that major increases in investment are needed and it has obviously guided and influenced tonight's Budget decision,” he said.

“The ARF hopes all players can put aside parochial and sectional interests to ensure that future road planning and funding is based on a long-term, bi-partisan assessment of national needs, and thus delivers the best results for all Australians.”

Vaile said the government would project specifics over the coming months. “AusLink II will continue our massive investment in Australia's major roads and railways,” he said. “We are also working with other levels of government and industry to coordinate improvements to the logistical and transport chains. It is another important aspect of AusLink: better understanding the transport task and planning for it in advance.”

On another front, Australian Logistics Council executive director Hal Morris said the increased spending allocation on skills and training was “exciting”.

A total $17.75bn has been allocated for spending on education, including $549m for first and second year apprentices in skill-shortage trades.

Under the package, apprentices would be handed wage “top-ups” of $1000 a year to encourage them to train.

“Obviously the ALC will be looking to work with the Federal Government to see how we can access the skills funding,” Morris said. “We're concerned if we don't participate in the process, transport and logistics will be overlooked.”