12-December-2008
Portfolio Media Releases, Infrastructure
Topics: Infrastructure Spending, Coalition
DAVID SPEERS: Well the main points in this Nation Building plan, $4.7billion worth as you heard the Prime Minister say there but only $2.5 billion is actually new money, the rest, the remaining $2.2billion has been drawn from money already allocated to road and rail projects across the nation. Now some of the rail projects that will go ahead will be brought forward to happen over the next few years include new and upgraded loops on the Sydney and Brisbane link, similarly on the Melbourne and Adelaide link and the new rail track between the Hunter Valley coalmines and Newcastle where the port is. The rail, the road projects include another $60million to fund black spot programmes. There will also be a $1.6 billion tax incentive for business to encourage them to invest in plant and equipment stocks. Any project that they spend more than $10,000 on they will get a 10% tax deduction so money for infrastructure, money for business investment as well. To see what the Opposition thinks of this, joining us now on the line is the Shadow Minister for Infrastructure, Andrew Robb, Mr Robb, thanks for joining us. Are you welcoming this package?
ANDREW ROBB: Of course David, we support any funding for quality infrastructure projects and we know these are quality projects because they were basically all initiated by the former Coalition Government so it is important that these things get under way. The Rudd Government has been in power now nearly 13 months and this is the first major infrastructure decisions taken by this Government after 13 months.
DAVID SPEERS: Are you saying this is policy theft.
ANDREW ROBB: Well, we don’t care where it comes from, all I am saying is I am pleased that they are quality projects and I know that because they have been very thoroughly assessed and were initiated by the previous Government and were funded by the previous Government so these projects have been initiated and funded by the efforts of the previous Government.
DAVID SPEERS: They are being brought forward to happen a lot sooner than they would have under the former Government.
ANDREW ROBB: Well that’s not true. There are things like the Cootamundra to Parkes rail track. I think it was February this year, Lindsay Tanner, the Finance Minister put a two year hold on the Coalition’s plan to spend $65 million on the very same stretch of rail. Well now a few months later, they have now have brought that one forward, so you get a little bit of sense they are making it up as they go along on this but the important thing is I think that it does flag the fact that the decisions they announced at COAG to rush forward some of the Building Australia Fund have been put on hold so they can do some proper planning and assessment. I must say, I am very pleased about that. I was very concerned that they were going to make a lot of knee jerk decisions and potentially fund poor quality projects and what they have decided to fund today, theses ones from over 12 months ago are quality projects and will be important for Australia.
DAVID SPEERS: On top of those projects there is also $1.6 billion here to give business a bit of a carrot to invest in plant and equipment, they get a 10% tax deduction for any spending over $10,000 that is something new, is that the best way to spend $1.6 billion.
ANDREW ROBB: Well I think again, that is important. It is important to try and get different sectors of the economy, and with the prospects that are being foreshadowed, if Mr Rudd’s right, that the world changed as we know it some weeks ago, then there needs to be some opportunity for business to have one, some incentive and two, with the tax initiatives that have been announced today to help their cash flow situation. So these are all things that I think need to be done and we certainly support them.
DAVID SPEERS: Alright it sounds like a tick from you then. What do you make of the Prime Minister’s claim that the budget will still be in surplus despite this extra spending. Do you believe that?
ANDREW ROBB: Well he’s the one with the internal information. We don’t know the bottom line and no one really knows. Certainly they are getting very close to the wire. I think what can be said is that the surplus, the huge surplus that was in place just a matter of 3 or 4 months ago is basically fully committed. It still maybe marginally in surplus, who knows, we don’t know that without seeing the internal figures but most of the surplus has been spent and it does put a question mark over how the Prime Minister may fund any further stimulus that may be required in the new year.
DAVID SPEERS: You are supporting packages like today’s one. So where’s your problem with spending this money?
ANDREW ROBB: Well today’s one is money that was fully funded, most of it was fully funded, some new money but most of this…
DAVID SPEERS: $2.5 billion is in fact most of it was new money, only $2.2 billion was already allocated.
ANDREW ROBB: Well that’s a very significant sum of money, $2.2 billion. As I say this was money that was fully funded well over 12 months ago during the time of the previous Government when all of these programmes were identified, had been thoroughly analysed and prepared and planned and I suppose the only thing that concerns us is that it has taken 13 months to make any decision on any of these projects. It is now being presented as a major stimulus when in many respects. The Rudd Government said they came to office with a major plan for infrastructure and here we are 13 months later, 13 months later and the first decisions of any consequence which just happen to be decisions taken by the former Government. These are the first things they have done after 13 months. So it does make you wonder what they have been doing if they did come to office with a plan and it just undermines sort of a measure of confidence about the decisions that they are taking and the commitments they are making about the budget still being in surplus. You do get a sense they are making it up as they go along.
DAVID SPEERS: Would you like to see another budget update. We are not due to get another one until the May budgets. So do you think in these uncertain time it is worth putting a bit of heat on the Government to give us some figures.
ANDREW ROBB: I think the Prime Minister has made such a point of levelling with Australians, time and again we hear this sort of mantra that he is going to bring Australians into his confidence, tell them what is going on, what the state of play is and against that background I think that we should, all of us, everyone in the community, especially business people in the community should be given as many updates as possible about what the Government anticipates is coming at us down the line, what the state of play is at the moment and I do think that Treasury has the capacity, not to do a major half yearly report but certainly to flag the major indicators throughout the budget on a more regular basis. We are at a time when the Prime Minister says the world has changed as we know it. It is unusual times and in order to give a measure of comfort and certainty and a sense of what is going on to people I think they have got a responsibility to more quickly put out some of the developments and the forecasts and the state of play with the balance sheet as they see it today.
DAVID SPEERS: Andrew Robb, before I let you go, I have to ask you about the bickering in the Coalition this week. The latest from your Liberal colleague, Jamie Briggs, he said of Barnaby Joyce and I quote “I think Barnaby needs to make a decision over the Christmas period does he want to be part of a team or does he want to be a renegade, you can’t be both. If he wants to be a maverick he does that outside the Coalition. Do you endorse those comments?
ANDREW ROBB: Well look, we have been in Coalition now for basically 60 years, we have always had issues David over that time, off and on. That’s the nature of any sort of partnership or marriage almost as we have got it within the Coalition. We have dealt with those in the past. We will deal with this one, we have got to work through it. I think the best way to work through it is internally and not to be continuing a process of discussion in the public arena. That is happening today and I am very confident we will settle things down.
DAVID SPEERS: So your colleagues need to keep these sorts of shots at each other internal, not in the media.
ANDREW ROBB: I think enough has been said at the moment and I think the next stage is to get down and work out a system that will enable us to have an effective working relationship and maintain the great success we have had as a Coalition now for so long and the sort of contribution that we can make as a cohesive team to the running of Australia.
DAVID SPEERS: Andrew Robb thanks very much for your time.
Media Contact: Stuart Eaton, 0433 298 620