Shadow transport and infrastructure minister Anthony Albanese has urged voters not to be fooled by a federal budget which claims to fund new infrastructure, despite taking away $1 billion of infrastructure investment from the forward estimates.
The Asset Recycling Fund (ARF) was set up in the 2014/15 budget with $7 billion in future funding to give to states for major projects, on the condition that they privatise state-owned assets in order to raise more funding.
Despite the ARF still not being passed through formal legislation, treasurer Scott Morrison said on Tuesday night money from the fund will go towards major projects like the Melbourne Metro, the Sydney Metro and the Western Sydney light rail network.
What Morrison did not mention in his budget speech, however, was that the Turnbull Government will take $853 million in unallocated money from the ARF, and re-assign that money to other things.
Albanese believes this move should be seen as nothing more than a cut to infrastructure investment.
“The 2016/17 Budget included no new major projects and cut $853 million in unallocated funds from the Government’s asset recycling fund as well as $162 million from its broad infrastructure investment program,” Albanese said on Wednesday.
“It contained no new investments in public transport, leaving Australian cities at the mercy of worsening traffic congestion, which is damaging the economy and eroding the Australian quality of life.
“While Mr Turnbull says he wants to diversify the nation’s economic base to aid our transition out of the mining boom, he has failed to invest in the new railway lines and roads required to facilitate that transition.”
Albanese says Turnbull has yet to change the Coalition’s course from that set by former PM Tony Abbott.
“While Mr Turnbull promised a new approach after ousting Mr Abbott last September, he has failed to reverse those savage cuts or to outline the next wave or productivity enhancing public transport projects about the nation,” Albanese said.
“Traffic congestion is a hand brake on productivity growth.
“Infrastructure Australia has warned that traffic congestion will cost the nation $53 billion a year in lost productivity by 2031 without government action.
“Last night’s Budget was an opportunity for Mr Turnbull to act.
“He failed.”