Federal Budget 2008: Articles and discussion

[ozbob]

From the Melbourne Age click here!

Budget to back infrastructure

Budget to back infrastructure

Mathew Murphy
May 12, 2008

A MULTIBILLION dollar boost to the Building Australia Fund and cuts to regulation are expected in what industry is calling Treasurer Wayne Swan's 'infrastructure budget'.

As Mr Swan puts the finishing touches on tomorrow's federal budget, business is salivating about the promised focus on infrastructure, which it says has long been neglected.

A centrepiece of the Treasurer's budget speech will be details of the Building Australia Fund, a long-held Labor policy it is keen to nurture, and to which it is expected to direct the lion's share of what is tipped to be a record budget surplus above $17 billion. Investment earnings from the Government's Future Fund are expected to be pumped into the Building Australia Fund.

A report this month by ABN Amro predicted Australia will need to spend at least $380 billion on infrastructure over the next decade.

Mark Birrell, chairman of Infrastructure Partnerships Australia, said there was an expectation that infrastructure would get a significant boost to fund critical water, rail, road and urban transport needs.

"There's is an optimism in the business community that this will be an important budget for infrastructure because there is such an interest in dealing with the extensive backlog and individual projects that business concedes is of immediate importance," he said.

Measures to cut statutory and regulatory obstacles in delivering infrastructure are also needed in the budget to assist with the national roll-out, Mr Birrell said.

"We will also be looking in the budget for the emergence of the infrastructure markets that we need to see, the national energy market and the national water market ? (along with) details of how the fund will work with other funds, like the higher education fund, and whether they will be drawn together," he said.

Minter Ellison partner Peter Block said the Building Australia Fund would have to work closely with the peak advisory group, Infrastructure Australia.

"You need to link them together to ensure the process works efficiently," he said. "If I were a policymaker I would set aside the money from the fund to address the infrastructure needs identified by Infrastructure Australia and cross them off, one, two, three, four ?"

Mr Birrell said Infrastructure Australia and the Building Australia Fund should ignore state borders when prioritising where the money should be spent. However, he said the running of the fund needed to be transparent to avoid the temptation of pork barrelling.

"There is little sympathy for parochialism and a lot of interest in getting up projects that cross boundaries or water catchments," he said.

"They are not interested in fighting old battles across jurisdictional lines. The big projects that need to be addressed and are long overdue do cross boundaries. For example, it is still hard to believe we still do not have a four-lane highway linking our three major capital cities."

Mr Block said it was inevitable that most of Australia's infrastructure needs would be met through the private sector and by way of public-private partnerships.

"The amount of infrastructure that needs to be done is going to be more than what they will have in the fund, so you can see the importance of private investment," he said.

http://www.infrastructure.org.au

[ozbob]

From Brisbanetimes click here!


Budget relief for 'shortchanged' QLD

Budget relief for 'shortchanged' QLD
Tony Moore | May 13, 2008 - 5:08AM

Queensland will finally receive money for much-needed infrastructure projects in South East Queensland and in the state's mining areas in tonight's federal budget, State Treasurer Andrew Fraser predicted yesterday.

His comments were backed by state Infrastructure Minister Paul Lucas, who has in the past savaged Coalition federal governments for failing to spend money on public transport or roads in Queensland.

One key project is expected to be $300 million for a new underpass and busway at Mt Gravatt, where Kessels Road meets Main Road.

Kessels Road already carries more than 72,000 vehicles a day and has long queues most of the day.

Opposition Leader Kevin Rudd pledged to fund the project if he won office and promised construction would start in 2009.

"The upgrade will improve capacity at the intersection by 45 per cent, extend the life of the intersection by 15 to 20 years, reduce queues and delays, and improve safety and amenity," Mr Rudd said last year.

Mr Rudd also promised a Labor Government would fund $455 million to tackle congestion on the Pacific Motorway from Nerang to Tugun on the Gold Coast, a long-running funding sore that was never covered by the Coalition.

Funding will also be included for the final stretch of the Ipswich Motorway, through to Dinmore.

Queensland's Labor state government has high hopes for the first federal budget from fellow Queenslanders, Prime Minister Kevin Rudd and treasurer, Wayne Swan.

While tightening monetary policy to pressure inflation was the number one priority, Mr Fraser said he believed key infrastructure projects in roads, public transport and ports would be funded.

"What I also think you will see is a budget that - for the first time in a long time - talks about substantial infrastructure investment," Mr Fraser said.

"And we welcome any moves by any federal government, of whatever persuasion, to be a part of the bricks and mortar effort in this country," he said.

Mr Lucas said Queensland had been short-changed for many years in terms of infrastructure investment, accusing successive federal governments of being "missing in action" in terms of infrastructure.

"We've had 10 years of very strong federal economic conditions and the money simply wasn't invested in the state's infrastructure economy, unlike other states and also, in fact, the Brisbane City Council," Mr Lucas said.

Mr Fraser said he believed transport projects in Queensland's south east corner would be funded.

"I think we will see an investment hopefully by the Federal Government, not only in the transport challenges in the south east corner, but also looking at the broader challenges across the state, " he said.

"And that is, when we have a resources boom occurring in Queensland, that's a resources boom that is occurring for Australia and we expect to see the federal government doing its part in building the productive capacity of the national infrastructure."

The budget will include allocations to an Infrastructure Australia fund, which has been set up by the Federal Government to prioritise key projects.

Brisbane Lord Mayor Campbell Newman said he had no specific knowledge of transport projects that would be funded, but has lodged submissions with Infrastructure Australia.

"I just hope that the government puts on the table some serious money either directly to councils, or through Infrastructure Australia, for traffic congestion leading projects in our capital cities," he said.

Mr Fraser said he also understood the federal government would provide funds to allow Queensland Health to increase its budget in the Queensland Budget next month.

"I can provide you with every assurance that you will see a major increase in funding for Queensland Health in the (state) budget next month," Mr Fraser said.

[ozbob]

From Courier Mail click here!

Swan's surplus hits rich

Swan's surplus hits rich
Article from: AAP

Maria Hawthorne

May 13, 2008 07:35pm

WEALTHY families are the losers under the first Labor federal budget in 13 years, with means testing and a tax crackdown helping to build a record surplus and three major new funds for future investment.

Treasurer Wayne Swan had been expected to deliver a surplus of between $18-$20 billion and savings of about $4 billion.

But he overachieved with a surplus of $21.7 billion - 1.8 per cent of gross domestic product - fuelled by the minerals boom and $7.3 billion in spending cuts, including means testing the baby bonus and family tax benefit B, and cracking down on fringe benefits tax (FBT) rorts.

    AT A GLANCE
    Forecast cash surplus $21.7 billion - the biggest in GDP terms in nearly a decade.
    Cost savings of $33 billion over four years, including $7 billion in 2008-09.
    $41 billion put into three major new ``future'' funds to pay for infrastructure, education and health.
    Income tax cuts totalling $47 billion over four years.
    Tax cuts worth $20 a week for someone on $48,000 a year.
    Medicare levy surcharge threshold up from $50,000 to $100,000 for singles, from $100,000 to $150,000 for couples.
    Family tax benefit to be means-tested.
    Baby bonus to rise to $5,000 from July 2008, but will be means-tested from January 2009.
    Child care tax rebate to rise from 30 per cent to 50 per cent, to be paid quarterly.
    Fringe benefits tax crackdown.
    Tax rates increased on luxury cars and ready-to-drink beverages.
    Major tax review announced, but the GST rate won't be raised.
    Labor's ``education revolution'' to cost an extra $5.9 billion over five years.
    50 per cent tax refund on education expenses for school students.
    $1 million per school for computers.
    $2.2 billion housing affordability package, including accounts to help people save for first homes.
    Rental affordability scheme aimed at getting 50,000 new rental properties by 2011-12.
    Lump sum payments for seniors, carers.
    More carers of disabled children eligible for payments.
    Extra $3.2 billion over five years to public health.
    Climate change - $2.3 billion over five years to cut greenhouse gas emissions

At least $40 billion will be poured into three new funds for capital investment in infrastructure, health and education to build the nation and bring it into the 21st century, Mr Swan said.



The Building Australia Fund, starting out at $20 billion, will finance roads, rail, ports and broadband networks.

The $11 billion Education Investment Fund will pay for training, TAFE colleges and universities, while the Health and Hospitals Fund will finance improvements to hospitals and the health care system.

``Mr Speaker, this is a government of nation builders,'' Mr Swan told parliament.

"We have no intention of hoarding the strong surplus for its own sake. This money is not ours, it belongs to the Australian people.''

Prime Minister Kevin Rudd had promised a budget that looked beyond the three-year electoral cycle and focused on five, 10 or 20 years ahead - a promise Mr Swan said had been kept.

``I'm confident Australians will see this as the budget our nation now needs, to beat inflation, and lay the foundation for future growth,'' he said.

Every Labor election promise had been met, he said, including personal income tax cuts worth $46.7 billion over four years.

But every dollar of new spending in 2008-09 had been more than matched by savings, including spending cuts and tax rises, he said.

The Howard government's planned Access Card has been scrapped, saving $1.2 billion over the next five years, 1,200 public service jobs will be lost under the two per cent efficiency dividend, and FBT laws will be tightened.

From January 1, the $5,000 baby bonus will be limited to households with an annual income of under $150,000, and it will no longer be paid as a lump sum but in fortnightly instalments.

Family tax benefit B will also no longer be paid to families on more than $150,000.

Mr Swan denied that Labor was playing the politics of envy, saying the wealthy were not entitled to expect government handouts.

``If you're on an income of around $150,000, you don't require federal government transfer of payments,'' Mr Swan told reporters.

He rated means testing as the toughest decision he'd made in months of going through government programs line by line, night by night, as part of the budget razor gang.

``I know it's a decision that will be opposed by many in our community, many hardworking people who feel that they have some entitlement to such a benefit, but I believe governments are elected to take the hard decisions,'' he said.

``But if we're going to set this country up for the 21st century, if we're going to maximise the opportunities that will flow with both India and China, there'll be more hard decisions down the road.''

He defended the crackdown on FBT, saying if loopholes emerged in tax systems, they should be closed.

``We don't make any apologies for that because you know what? If everyone pays their fair share of tax, rates can come down,'' he said.

``This is a tough budget but a fair budget.'' He rejected criticisms that he had not made enough cuts to rein in inflation, saying there was a danger of slowing the economy too much.

``It would be a nonsense to have made much more substantial spending cuts - you would have hit the brakes (too) hard.''

[ozbob]

From Brisbanetimes click here!

Roads, health big winners for Qld

Roads, health big winners for Qld
Melissa Singer | May 13, 2008 - 9:31PM

Queensland's roads and health system have received massive boosts in tonight's budget, the first handed down by the Rudd Labor Government.

The state will reap $826 million over four years for various roads projects, including $63 million for 2009-2010.

The biggest specific funding announcement was $22.5 million for the Nerang South interchange on the Pacific Motorway.

Townsville will receive $20 million for the city's Port Access Road project, while $5 million will go towards the critical Dinmore to Goodna upgrade of the Ipswich Motorway, west of Brisbane.

Other key roads projects that received specific mention in the budget include the upgrade to the Kessels Road and Mains Road underpass at Mount Gravatt, with work set to begin in 2009, subject to negotiations with the State Government.

The Federal Government has also made a number of funding pledges for studies aimed at reducing congestion on some of the state's busiest roads.

Looking ahead, $13 million will be devoted to a number of planning studies to enable the upgrade of the Bruce Highway, while $10 million will go towards accelerating planning to upgrade the Gateway Motorway missing links - the northern section between Nudgee Road and the Bruce Highway and the southern section between Mount Gravatt Capalaba Road and the Pacific Motorway.

Queensland also received its share of funding for environmental initiatives, with $20 million for a Centre for Excellence in Water Recycling in Brisbane, as part of the Government's $1 billion program for desalination, water recycling and stormwater harvesting projects in Australian cities.

Victims of flooding in January and February in the Mackay, Emerald and Whitsunday Island regions will benefit from $18.2 million over two years under the Australian Government Disaster Recovery Payment.

Amberley State School will receive a massive windfall of $26.8 million for a new school to replace its current premises. The new school will accommodate 330 students and provide out of school care for 60 students. The expansion of RAAF Amberley into the land area occupied by the existing school has led to the need for the new school in a new location.

Based at the Allan Border field in Brisbane, the Cricket Australia Centre of Excellence will receive a $17.5 million assistance package.

After suffering through shocking floods over the summer, some good news for Emerald, in central Queensland, with $5 million over four years, including $3.2 million in capital funding, for a new weather radar station. The new radar will fill a current gap in radar coverage in the region.

A new school for dentistry will be established at James Cook University in Cairns with the help of $49.5 million over four years from the Federal Budget, with the school's aim to address a skills shortage in dentistry, especially in northern Queensland.

Greenslopes Private Hospital will become home to a new specialist clinical training school after receiving a $13 million funding boost over two years. The school will offer 60 training places each year to students from the University of Queensland.

The Federal Government will also contribute to a number of projects in the Ipswich region as part of a $176 million regional development package.

The Ipswich growth corridor will receive $10 million while sporting venues in the area, namely the Ipswich Basketball Venue and the George Alder Tennis Centre, will receive a combined $1.1 million.

Also under the Government's regional development program, the Sunshine Coast growth corridor will receive $10.3 million, while $3.1 million will go towards the revitalisation of Emerald.

The state's universities were also winners, with several of them receiving a share of a $500 million capital investment fund. Central Queensland University ($5.5 million), the University of Southern Queensland ($5.9 million), University of the Sunshine Coast ($2.3 million), Bond University ($1.4 million) and the Australian Catholic University ($5.9 million) will all benefit.

The Government also used the budget to reiterate its pledge to rescue the Great Barrier Reef at a cost of $200 over five years.

Other Queensland-specific measures include:

* $250,000 for the installation of solar water heating panels for the Deception Bay Pool in Caboolture Shire;

* Additional assistance to the tune of $4.4 million over two years for primary producers and small businesses affected by drought;

* $1.6 million over four years to establish a new Medicare office in Emerald;

* $500,000 for the Premier of Queensland's 2008 Flood Relief Appeal;

* $8.3 million towards an oncology facility in the Cairns area;

* $100,000 for the Central Highland's Feasibility Study and Development Plan, aimed at promoting and strengthening tourism in the region; and

* $4.8 million towards a water recycling demonstration project at Coolum Ridges.

Comment:

Nothing at a direct state level for mass transit/rail.  The sad fact is just condemning the state of Queensland to more congestion and gridlock and is coming good on the pork barrels rolled out during the election.  The general public is hoodwinked.  Mates do well.  Most of the punters will be struggling to pay for petrol in a year or so ...

The barrels might free up some state funding for rail expansion.

The only bright hope is the national infrastructure fund, whether or not that translates to action in terms of sustainable transport options is a moot point.

Maintain the rage!