Australian Government, 2011‑12 Budget
Budget

Part 2: Expense Measures (Continued)

Infrastructure and Transport

Airport building controllers — increased funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport 2.6 2.6 2.6 2.6
Related revenue ($m)
Department of Infrastructure and Transport 3.5 3.5 3.5 3.5

The Government will provide $10.4 million over four years to ensure public safety is maintained in infrastructure development at airports on Commonwealth land. Airport building controllers engaged by the Commonwealth ensure buildings at airports comply with the Building Code of Australia and other applicable building standards. The increase in funding is the result of higher levels of building activity at airports and increased contracting rates.

The cost of this measure will be offset by an increase in the building application fees paid by developers at the airports, which will bring rates in line with those prevailing in the industry.

Infrastructure Australia — expansion

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport 9.0 9.0 9.0 9.0

The Government will provide $36.0 million over four years to continue and strengthen the activities of Infrastructure Australia (IA). This will ensure the continued capability of IA to review national infrastructure priorities, assess projects and provide advice on infrastructure financing and reforms that promote productive investment in Australian infrastructure.

This measure will provide a $2.5 million per annum increase in IA's funding to enable IA to develop more comprehensive infrastructure project and priority assessments, including through a top‑down analysis of nationally significant infrastructure needs. It will also enable IA to develop further opportunities for private investment in nationally significant infrastructure and to continue its reform work, including on the National Ports Strategy and the National Freight Network.

Nation Building — additional funding for the Pacific Highway

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of the Treasury 131.0 99.0 220.0 ‑400.0
Department of Infrastructure and Transport
Total 131.0 99.0 220.0 ‑400.0

The Government will provide and additional $1.02 billion as a further contribution towards the duplication of the Pacific Highway.

Of the contribution, $700 million had been previously provisioned for in the Budget, with $400 million brought forward from 2014‑15 to 2011‑12 ($81.0 million), 2012‑13 ($99.0 million) and 2013‑14 ($220.0 million) to accelerate planning, route assessment and other works.

An additional $50 million has been provided in 2011‑12 Budget, and a further $270 million has been redirected, with the agreement of the New South Wales Government, from the New South Wales allocation of the Nation Building Program.

Additional funding for the Pacific Highway is conditional on the New South Wales Government also making an appropriate contribution to the cost of this work.

Nation Building — rail infrastructure — Moreton Bay Rail Link

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of the Treasury 30.0 20.0 83.0 ‑192.0
Department of Infrastructure and Transport
Total 30.0 20.0 83.0 ‑192.0
Related capital ($m)
Department of Infrastructure and Transport
Department of the Treasury
Total

The Government will bring forward funding of $133.0 million for the Moreton Bay Rail Link project from 2014‑15 to be spent from 2011‑12 to 2013‑14. The $1.15 billion project is jointly funded by the Australian Government ($742.0 million), the Queensland Government ($300.0 million) and Moreton Bay Regional Council ($105.0 million). Construction of the project is expected to begin in 2012 and be completed by 2016. The Commonwealth's contribution was to have been paid from 2014‑15. The funding includes $59.0 million in 2015‑16.

This measure delivers on the Government's election commitment.

Nation Building Program — F3 to Sydney Orbital feasibility study — deferral

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport
Department of the Treasury ‑150.0
Total ‑150.0

The Government will defer its contribution to a feasibility study into the F3 to Sydney Orbital project until 2015‑16. This will reduce expenses by $150.0 million in 2013‑14.

Savings from this measure will be redirected to support other Government priorities.

Nation Building Program 2 — Constitution Avenue

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport ‑42.0

The Government will reduce the funding provision for the Nation Building Program 2 held in the Contingency Reserve by $42.0 million in 2014‑15 in order to offset the cost of providing a grant to the Australian Capital Territory (ACT) Government for the redevelopment of Constitution Avenue.

The grant to the ACT Government is a gift to celebrate the Centenary of Canberra as the nation's capital. See also the related expense measure titled Centenary of Canberra — a gift to the national capital.

National Transport Regulators — additional funding

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Australian Maritime Safety Authority 4.4 5.6
Department of the Treasury 3.2 1.6
Australian Transport Safety Bureau 2.3 4.9
Department of Infrastructure and Transport
Total 10.0 12.1
Related capital ($m)
Australian Transport Safety Bureau 0.1 3.1

The Government will provide $25.2 million over two years 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, $4.8 million will be provided for the Commonwealth's contribution to continue the project implementation teams for the national heavy vehicle regulator, which was established in Queensland, and the national rail safety regulator, established in South Australia. State and territory governments will contribute to this activity according to the National Transport Commission formula. The Australian Maritime Safety Authority will receive $10.0 million to undertake maritime safety regulation responsibilities for all commercial vessels, and the Australian Transport Safety Bureau will receive $10.4 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 Communiqués of 2 July 2009 and 7 December 2009.

Natural Disaster Recovery and Rebuilding — deferral of other infrastructure projects

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport
Department of Finance and Deregulation
Department of the Treasury ‑118.2 ‑369.0 ‑295.0 ‑27.8 190.0
Total ‑118.2 ‑369.0 ‑295.0 ‑27.8 190.0

The Government will defer three infrastructure projects in Victoria and New South Wales to make funds available for rebuilding after the natural disasters in 2010‑11.

This measure will defer spending beyond the forward estimates of $620 million, comprising:

  • $500 million for the Victorian Regional Rail Link;
  • $20 million for the Princes Highway East (Traralgon to Sale); and
  • $100 million for the North Sydney Freight Line.

Funding for the upgrade of the Princes Highway between Traralgon to Sale will recommence in 2013‑14, the Victorian Regional Rail project funds will be paid in 2015‑16, and the Northern Sydney Freight Corridor rail project will be paid from 2014‑15.

Funds made available from this measure will be used to meet the costs of supporting those individuals, businesses and local communities in areas affected by natural disasters that occurred in 2010‑11 to recover and rebuild.

Further information can be found in the press release of 27 January 2011 issued by the Prime Minister and the press release of 8 February 2011 issued by the Minister for Infrastructure and Transport.

Natural Disaster Recovery and Rebuilding — reinstatement of infrastructure projects in Queensland

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport
Department of the Treasury ‑4.3 ‑31.3 ‑349.2 ‑76.9 136.3
Total ‑4.3 ‑31.3 ‑349.2 ‑76.9 136.3

The Government will now proceed to fund the following five Bruce Highway projects which were announced by the Prime Minister on 27 January 2011 to be deferred to offset the impact of natural disaster recovery measures in Queensland:

  • duplication of Vantassel Street to Flinders Highway ($75.0 million);
  • realign and raise the Bruce Highway from Sandy Corner to Collinsons Lagoon ($40.0 million);
  • Burdekin Road Safety Audit Projects ($20.0 million);
  • Cabbage Tree Creek to Carman Road ($64.7 million); and
  • the Caboolture to Caloundra upgrade ($85.7 million).

The Government will utilise savings of $325.4 million within the National Partnership Agreement on implementation of the Nation Building Program in Queensland, 2009‑2014 to offset the cost of reversing the decision to defer these projects. This follows advice from the Queensland Government that it has identified reduced funding requirements for the Ipswich Motorway Upgrade — Dinmore to Goodna project and the Bruce Highway — Cooroy to Curra Section B project, and that this funding will not be required for the Queensland Government to successfully complete these projects.

The Government will still proceed to defer $40.0 million of funding allocated for the Gairloch Floodway project, as announced by the Prime Minister on 27 January 2011, as the Queensland Government has advised that this project has been superseded in light of ongoing planning work.

The $285.4 million savings realised in the Nation Building Program in Queensland will remain available to it, with $85.4 million deferred to 2015‑16 and $200.0 million deferred to 2016‑17.

Natural Disaster Recovery and Rebuilding — withdrawal of funding for O‑Bahn city access project

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport
Department of the Treasury ‑27.1 ‑28.9
Total ‑27.1 ‑28.9

The Government will withdraw funding of $56.0 million for the O‑Bahn city access project in South Australia.

Savings from this measure will be used to meet the costs of supporting individuals, businesses and local communities affected by natural disasters in 2010‑11 to recover and rebuild.

Further information can be found in the press release of 27 January 2011 issued by the Prime Minister.

Regional Aviation Access Program — airstrip upgrades — extension

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport 14.0 14.0

The Government will provide $28.0 million over two years to extend the program of aviation safety upgrade works at remote and isolated airstrips across Australia. Under the program, grants are generally provided to aerodrome owners for aviation upgrades on a co‑funding basis, although grants of up to 100 per cent of the cost may be provided for works at identified remote Indigenous communities.

The upgrades will help ensure that the remote communities served by these airstrips have access to passenger transport services, as well as medical services and essential supplies. They also help to ensure compliance with Civil Aviation Safety Authority's runway standards.

Regional Infrastructure Fund — administration

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport 1.8 1.9 1.9 2.0
Department of the Treasury ‑1.8 ‑1.9 ‑1.9 ‑2.0
Total

The Government will provide $7.6 million over four years for the Department of Infrastructure and Transport to administer the Regional Infrastructure Fund, with funding from 2014‑15 subject to the passage of the Minerals Resource Rent Tax. An initial allocation from the Regional Infrastructure Fund of $400 million will assist state governments in the delivery of the following road projects:

  • Gateway WA (Western Australia);
  • Blacksoil Interchange (Queensland);
  • Townsville Ring Road (Queensland);
  • Peak Downs Highway (Queensland);
  • Upgrade of the Intersection of the Bruce and Capricorn Highways (Queensland);
  • Gladstone Port Access Road (Queensland);
  • Scone Level Crossing Study (New South Wales); and
  • Mackay Ring Road Study (Queensland).

Provision of this funding has already been included in the forward estimates.

This measure delivers on the Government's election commitments.

Regional Infrastructure Fund — Mackay Ring Road

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport
Department of the Treasury 9.5 ‑2.0 ‑2.0 ‑5.5
Total 9.5 ‑2.0 ‑2.0 ‑5.5

The Government will bring forward $9.5 million to 2010‑11 for the Mackay Ring Road study to develop a detailed business case and to establish a preferred route and alignment, cost and construction timelines. This payment will be made from the Regional Infrastructure Fund.

Regional Infrastructure Fund — Scone Level Crossing

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport
Department of the Treasury 1.8 ‑1.0 ‑0.8
Total 1.8 ‑1.0 ‑0.8

The Government will bring forward $1.8 million to 2010‑11 for the Scone Level Crossing study for planning work necessary to build an overpass for the rail line on the New England Highway in Scone in New South Wales. This payment will be made from the Regional Infrastructure Fund.

Sustainable Australia — major urban renewal

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of Infrastructure and Transport 10.0 10.0

The Government will provide $20.0 million over two years to help improve the planning and design of the outer suburbs and major regional centres that are experiencing population growth pressures and housing and transport affordability cost pressures. The program will seek to improve the capacity of regional cities to undertake strategic planning in line with the Council of Australian Governments (COAG) agreed criteria. The program will also support the development of demonstration projects within capital cities that drive innovation and urban renewal through working in partnership with the Council of Capital City Lord Mayors.

Projects to be considered for funding will include the planning, feasibility assessment and/or design for:

  • demonstration projects that facilitate innovative residential developments that promote housing affordability, adaptable and accessible housing and improve access to services and public transport;
  • projects that create or enhance mixed use precincts that optimise public transport use such as the creation of transit malls and the re‑development of significant public spaces;
  • strategic plans for major regional cities with populations greater than 100,000 in line with the COAG criteria for capital city strategic planning systems; and
  • identifying and protecting critical infrastructure corridors, sites and buffers.

Sustainable Australia — managed motorways

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Department of the Treasury 20.0 20.0 20.0
Department of Infrastructure and Transport 0.4 0.5 0.5
Total 20.4 20.5 20.5

The Government will provide $61.4 million over three years to fund smart infrastructure technologies to reduce congestion and improve traffic demand management and the overall efficiency of the transport network in major cities.

Managed motorways use system control through integrating data collection sensors and control tools to improve real time management of motorways to secure a higher and more consistent level of motorway performance. This results in travel time savings, improved reliability and reduced greenhouse gas emissions.

An initial set of projects that would be eligible for funding have been identified by Infrastructure Australia:

  • Victoria: M1 West Gate Freeway (Western Ring Road to Williamstown Road) — an upgrade of this section to a level 3 Intelligent Transport System (ITS). The Nation Building program is currently funding an upgrade of the M80, in Melbourne, to ITS level 3. This project would complement the M80 upgrade and close a gap in the network which is projected to have the highest volumes of freight in Australia.
  • New South Wales: M4 (Western Motorway) in Sydney — feasibility/project development funding for the introduction of a managed motorway system, including ramp metering and potential freight prioritisation, on this existing motorway.
  • Queensland: Gateway Motorway (Nudgee to Bruce Highway) — to introduce pole mounted variable speed limits, ramp signalling, travel time signs and variable message signs on a significant freight route.
  • Western Australia — feasibility funding and trials of technology including ramp metering, to test the benefits of a managed motorway concept and program.

All projects will be jointly funded by the Commonwealth and the relevant state and territory government. Funding will be subject to state and territory governments signing National Partnership Agreements on the establishment of Single National Jurisdictions for heavy vehicles, interstate rail operations and maritime regulation.

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