States to pick up Federal infrastructure overspend

State governments will be required to pick up cost blow outs for infrastructure projects under AusLink II, in addition to contributing to the cost of all new projects, transport minister Mark Vaile reiterated last night (Tuesday, May 8). As outlined at the Australian Bureau of Agriculture and Resource Economics Outlook conference in March, the final dollar figure on AusLink II includes &#8220substantial carryovers&#8221 as a result of state and territory government overspending under the existing AusLink program. &#8220AusLink II will include new rules to stop the cost of projects running out of control due to poor planning and management by the states and territories,&#8221 he said. &#8220We will require all the state and territory governments to contribute to the cost of all new projects under AusLink II, including projects on the former National Highway. &#8220Furthermore, the Australian Government’s funding will be capped at a defined dollar figure for each project. The state or territory government will have to bear the rest of the cost, even if they mismanage the project and the cost blows out.&#8221 Queensland transport and main roads minister Paul Lucas said the federal budget had &#8220fallen flat&#8221 by not delivering a single cent in new money for roads. &#8220All we’ve got is a forlorn hope that in two years we’ll share in the $16.8 bn promised under AusLink II to be delivered from 2009&#4710,&#8221 he said. &#8220Queensland is entitled to feel ripped off that a whole list of projects touted in the media by various Federal Government identities haven’t been funded, they’ve been forgotten.&#8221 State breakdowns: New South Wales ($781.1m in 2007&#4708): The Federal Government will spend $498.5m in 2007&#4708 on AusLink National Network projects and former Roads of National Importance in New South Wales, including the funding for the Pacific and Hume highways. &#8226 $36m in 2007&#4708 to continue widening the F3 freeway to six lanes between Cowan and Mt Colah &#8226 $20m for the new link from the F3 to Branxton &#8226 $25m in 2007&#4708 to continue the construction of the Weakleys Drive interchange on the New England Highway in the Lower Hunter Valley &#8226 $22m to start construction of the Newell Highway bypass of Moree and &#8226 $100m in 2007&#4708 to contribute to the cost of maintaining roads on the AusLink National Network. Victoria ($566.1m in 2007&#4708). The Victorian spending will include &#8226 $76.1m on the Deer Park bypass and Leakes Road interchange project on the Western Highway &#8226 $60.1m on the Geelong bypass &#8226 $53.1m for the Calder Highway, comprising $10.3m to complete the federal commitment to the Kyneton-Faraday section and $42.8m for the Faraday-Ravenswood duplication &#8226 $13m on the Hume Highway-Donnybrook Road interchange &#8226 $10m for the Goulburn Valley Highway-Arcadia duplication &#8226 $20m to upgrade the Tottenham-West Footscray rail link &#8226 $30m for the Dynon port rail link and &#8226 $49.8m toward the cost of maintaining the roads on the AusLink National Network in Victoria. Queensland ($766.2m in 2007&#4708). The Queensland spending will include: &#8226The Federal Government will bring forward $400m to 2007&#4708 and 2008&#4709 to start work on the Goodna Bypass between Dinmore and Gailes, west of Brisbane &#8226 $53.8m to continue widening works along the Caboolture Motorway in the Brisbane metropolitan area &#8226 $25m to continue widening the Bruce Highway to four lanes through Gympie &#8226 $26m from the Australian Government’s $79.5m commitment to the Townsville Ring Road and &#8226 $63.1m to help maintain the roads on the AusLink National Network in Queensland. South Australia ($194.7m in 2007&#4708). South Australia will receive $68m in 2007&#4708 for the Northern Expressway and Port Wakefield Road upgrade, subject to the negotiation of joint funding arrangements between the Australian and South Australian governments. Western Australia ($308m in 2007&#4708). Western Australia to receive full $170m funding allocation for the Bunbury Highway, because construction started before the end of 2006. Tasmania ($86.8m in 2007&#4708). The Federal Government will provide $39m in 2007&#4708 to complete the second stage of the duplication of the Bass Highway between Penguin and Ulverstone. The project will be completed in February 2008. Northern Territory ($65.7m in 2007&#4708). The construction of a new bridge across the Victoria River will begin in late 2007. The Government will spend $18.2m in 2007&#4708 on the construction of the new bridge and upgrading of other bridges, following its $30m advance payment towards these works in June 2006. Australian Capital Territory ($19.8m in 2007&#4708). The ACT will use additional funds received from the Australian Government in June 2006 to start duplicating Lanyon Drive. In a separate measure, the Government will spend $58.8m over four years ($5.9m in 2007&#4708) to redevelop Constitution Avenue and replace the Russell roundabout with a grade separated interchange.

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