24-February-2009
Portfolio Media Releases, Infrastructure, The Economy
The Government has today confirmed their nation-building program is in chaos, with a multi-billion short-fall.
Under questioning today by Liberal and Greens Senators the Government was forced to admit for the first time that the Building Australia Fund would only contain $12.6 billion; a massive short-fall of $7.4 billion.
The Government was also unable to clarify which of the projects that have been submitted for funding are ‘priority projects’ and could not even confirm that there were 28 of them despite this being the advice from their hand picked Chair, Rod Eddington, saying exactly that in a letter two months ago (attached).
“The Coalition has continually expressed our concerns about how these funds would be used, and whether these funds would receive the $20 billion that the Government promised would be the ‘initial investment’,” said the Shadow Minister for Infrastructure, the Hon. Andrew Robb AO MP.
“Now the Government has been forced to admit that not only is there a $7.4 billion shortfall but that the fund also includes $4.7 billion for a broadband roll-out that itself looks increasingly unlikely.
“This leaves less that $8 billion over three years to fund $800 billion of infrastructure project proposals that have been submitted to the Government.
“It also means that the only monies placed in these funds came from the last Howard-Costello Budget. Not one dollar for these investments has been generated by the Rudd government. They have all been inherited by the Rudd Government,” said Mr Robb.
“Despite the Government now saying that it was an ‘intention’ to invest $20 billion and not a commitment, the fact remains that they have given significant undertakings to their State and Territory Labor mates that there was a large pool of money for major infrastructure projects.
“Now that there is less than even the Government expected, it means that the quality of every decision is paramount and it means under no circumstances must the Government use these monies to bail out failed Labor States.
“Infrastructure Minister, Anthony Albanese is up to his neck in trouble. Despite over $80 billion being shovelled out the door by the Rudd Government in new expenditure since the last Budget, Mr Albanese has failed to gain even one extra dollar for the Building Australia Fund.
“Expect a Whitlamesque debt spree to follow.”
Media Contact: Stuart Eaton, 0433 298 620