Article: Federal budget sets $10b to upgrade transport woes

[ozbob]

From Courier Mail click here!

Federal budget sets $10b to upgrade transport woes

Federal budget sets $10b to upgrade transport woes
Article from: The Courier-Mail

By Clinton Porteous

March 24, 2008 11:00pm

A MASSIVE $10 billion-plus pool of money will be set aside in the upcoming Federal Budget to tackle the chronic traffic congestion plaguing Australian cities.

Called the Building Australia Fund, the multibillion-dollar scheme will also channel revenue from the Budget surplus into upgrading the nation's ageing rail and port facilities.

The Government's commitment to beating traffic chaos comes as Easter holidaymakers returning to Brisbane from the Sunshine Coast found themselves stuck in bumper-to-bumper traffic on the Bruce Highway.

Police said a single-vehicle rollover at Nambour about 10.40am yesterday caused traffic to bank up for more than 70km.

Last in north Queensland was delayed last night when a single lane of the Bruce Highway was closed after a car fell from the back of a truck during a crash.

About 6.30pm a car- carrying truck rear-ended a car on the Bruce Highway north of Cardwell, causing one vehicle to come off the truck. Other cars in the truck's load were also damaged, but no one was injured.

Motorists also experienced holdups travelling north between the Gold Coast and Brisbane, while more chaos is expected this morning when commuters return to work.

Queensland is hoping to attract a large slice of the extra infrastructure funding, to be unveiled on Budget night on May 13, with more money desperately needed to ease congestion along the Brisbane-Gold Coast corridor.

It is also seeking help with $9 billion worth of water projects already under way, plus funds to upgrade access to the state's major ports and airports.

The new federal infrastructure fund is designed to demonstrate the Rudd Government's commitment to modernising the Australian economy and unclogging major bottlenecks.

The Building Australia Fund was discussed at length in Opposition by key Labor Party figures concerned about declining productivity and is expected to be re-launched in the Budget.

Sources in Canberra say a "substantial proportion" of this year's Budget surplus ? which is set to top $17 billion ? will be hived off into the new fund.

Last year, then treasurer Peter Costello unveiled a $6 billion Higher Education Endowment Fund and the Rudd Government will trump this.

Finance Minister Lindsay Tanner told The Courier-Mail that no detailed decisions had been made about this year's Budget surplus but said the Government was committed to investing in the future.

"If we don't increase our investments in skills and infrastructure then we will be dealing with significant inflation problems," Mr Tanner said.
He said the former government had failed when it came to infrastructure.

"The Howard government did not spend money where it mattered."

The Government will keep itself at arm's length from direct financial decisions by allowing a newly-created body, called Infrastructure Australia, to allocate money from the new fund.

Last week, Parliament approved legislation to establish Infrastructure Australia, an independent statutory authority to be headed by well-known businessman Sir Rod Eddington.

Prime Minister Kevin Rudd has listed infrastructure development as one of the five ways of fighting inflation and Treasurer Wayne Swan often says "capacity constraints" must be overcome.

The Federal Government has promised not to "squander" the financial legacy of the mining boom but there are limited options where the Government can park its extra billions without adding to inflation.

The previous government carved off money for the Future Fund but this has already swollen to almost $60 billion.

The other major option for the Budget surplus billions is for money to be put into a new superannuation fund to help boost national savings.

Infrastructure will be a major agenda item on Wednesday when Mr Rudd meets all the state leaders in Adelaide. Queensland Premier Anna Bligh said there was a new attitude in Canberra since the change of government.

"It will be great to have a Federal Government that is interested in nation building. We have been doing it on our own for a number of years," she said.

Additional reporting Sophie Elsworth and David Earley

[ozbob]

My comment on blog:

At last something positive.  We must invest in sustainable transport solutions that will survive the looming oil crises.  Rail is the long term solution, supplemented by balanced road transport. The present focus on roads is going to crash (some would argue already has).  Brisbane can easily double its rail capacity simply by providing more trains and staff. Reduce off peak frequency down to 15 minutes and peak 7.5 minutes or better.  This will then take a lot of pressure off roads and buses.  Buses can then cope and achieve their real role well.

The recent announcements re super buses are of no real comfort. I am not convinced that buses that can carry up to 200 pax, more likely 150 pax will be anything other than a short term limited solution to easing some congestion on the bus ways.  The present artics carry about 90 pax and yet they have not solved the problems.  It is unlikely that triple artics will either.  Buses are great in their proper role but not dressed up as trains. Buses on busways will only ever approach 7000 pax per hour. Heavy rail can easily achieve 30000 pax per hour in the same space. Light rail done right can actually transport even more pax.