Bob Baldwin (Paterson, Liberal Party, Parliamentary Secretary to the Minister for Industry, Tourism and Resources) Share this | Hansard source

Tonight I rise to speak on the appropriation bills for the 2006-07 budget, a budget which has a revenue base of $231.7 billion, up 3.9 per cent from the $222.9 billion of the previous year, and an expenditure of $219.7 billion, up 6.7 per cent from the $206 billion expenditure of the previous year. The figures I have just quoted show that we will have yet again a budget surplus for another year.

This is the first time in 30 years, since the 1975-76 budget, that a government has been able to post a surplus with no government debt. When we came to government in 1996, the previous Keating government had proclaimed they were in budget surplus, when in fact the records showed that there was a $10 billion deficit. But I would also remind the House that, in 1991-92, there was an $11½ billion deficit; in 1992-93, a $17 billion deficit; in 1993-94, a $17 billion deficit; in 1994-95, a $13 billion deficit; and in 1995-96, a $10 billion deficit. Labor have form. The only form they have is in spending—and taxing—more than they raise. That created a terrible situation in Australia where our standard of living was dropping and our international competitiveness was going out the back door. The reality was that Australia and its economy was largely seen as a joke amongst other countries.

Since coming to power in 1996, we have weathered the Asian meltdown and at the same time reduced interest rates; we have survived other countries’ recessions and at the same time reduced debt in this country. I am very proud of the fact that I have been part of a government that has had a path of not only reducing debt but also reducing interest rates and increasing our economic growth—which, on average, has been about 3.5 per cent per annum. These are remarkable figures.

But, each and every step of the way, the Labor Party has opposed everything that this government has done to implement the substantial reforms that have been required to bring about the results we have witnessed. In fact, I remember quite clearly on budget night 1996 the ashen faces of the members opposite as we created a budget that put us, as the Telegraph stated at the time, ‘back in the black and back on track’. On 9 May in this House, when Mr Costello delivered that outstanding budget, we again witnessed those ashen faces, unable to comprehend how a government was able to deliver such a strong economic position for Australia.

A couple of interesting facts from our budget need to be understood. One is that, out of the $231.7 billion of income that we will collect, $115.7 billion, or around 50 per cent, will come from people’s personal income tax; $59.35 billion, or 25 per cent, will come from company tax; and $14.6 billion, or around six per cent, will come from fuel. We need to raise the $231 billion because our expenditures are quite high. In fact, some $91.75 billion, or around 42 per cent, goes in social security. That is a rather large part of the overall budget, when you consider that we are spending $17.8 billion, or 7.7 per cent, on defence; $16.6 billion, or about 7.2 per cent, on education; $39.8 billion, or around 17 per cent, on health; and $8.3 billion, or 3.6 per cent, on infrastructure, transport and energy. We are able to do that.

But, in the long term—echoing what you, Mr Deputy Speaker Causley, said in your role as the coalition speaker before me—we need to do something to reduce the amount of welfare payments in Australia. We need to encourage our fellow Australians back into work. There has been much hue and cry from the opposition about workers, including those with skills, being imported to this country. The reality is that, if employers in this country cannot get the people they need to do the work here, those people will have to come from somewhere else; otherwise, we will lose those jobs, employment opportunities and businesses to offshore countries.

As I said, the income tax cuts are fairly historic. There will be personal tax relief of over $36 billion over four years from 1 July 2006: the threshold for the 30 per cent tax rate will rise to $25,001; the 42 per cent marginal tax rate will be cut to 40 per cent and the threshold will rise to $75,001; and the 47 per cent marginal tax rate will be cut to 45 per cent and the threshold will increase to $150,001. In particular, the low-income tax offset will increase to $600 per year, the phase-out will go up from $21,600 to $25,000 and the fringe benefits tax rate will be cut to 46.5 per cent.

There are many benefits coming from this budget—it is an outstanding budget—and its plans to realign superannuation and superannuation tax, in particular, have gone down well in my electorate. I know that much work has to be done in consulting with industry on the outcomes and that is why it will be delayed until 1 July 2007. It is an outstanding fact that, from 1 July 2007, people aged 60 and over will be able to have tax-free superannuation benefits which are paid from a tax fund. This means that there will be much more disposable income and much less reliance on social security for people to maintain their lifestyles.

Over and over again in this House, I talk of one of the key aspects or problems of my electorate, which is road funding. Mr Deputy Speaker, as you rightly pointed out when speaking as the local member for your electorate, the additional $160 million announced for the Pacific Highway for 2005-06 will be a great spend. Of course, this has to be matched by the New South Wales government. That represents an additional $320 million worth of funding before 30 June being placed into the highways.

This is important to me in that it includes funding announcements for stages 2 and 3 of the Karuah to Bulahdelah upgrade. Currently, Karuah to Viney Creek is under way, but there is an additional 34 kilometres of road between Karuah and Bulahdelah that need upgrading. The Australian and New South Wales governments have also allocated $18.8 million to kick-start the 8½ kilometre Bulahdelah bypass. This will incorporate new twin bridges over the Myall River. In the south, the bypass will connect the Karuah to Bulahdelah sections 2 and 3, where construction will start later this year. In the north, it will link the Bulahdelah to Coolongolook project, which was completed in 1999. By the time the Bulahdelah bypass is completed, sections 1, 2 and 3 of the Karuah to Bulahdelah part of the Pacific Highway plus the Bundacree Creek to Possum Brush area will be open to traffic.

This funding has been well received. In fact, Wendy Machin from the NRMA was quoted in the Port Stephens Examiner as saying:

The Federal and State Governments have both committed an additional $160 million for the Pacific Highway upgrade - which means that $640 million will be spent in the coming financial year alone.

There is a further issue. The highway section, as I said, between Karuah and Viney Creek will be completed very shortly; but the state government and the RTA failed in their planning to allow for a flyover in this current construction stage. The community, led by Patricia Michelle, has been to see the various road ministers—in fact, there have now been four in this term of the Carr-Iemma government—and the excuses are varied. The project has blown out from $5 million to $16 million. In fact, when Michael Costa was the minister for roads, he said, ‘But, if only the federal government funded it, we would build it.’

How disappointed am I when we have announced an extra $160 million for the Pacific Highway upgrade and the state government has not prioritised a flyover for Tea Gardens? It says that there is not a need, Mr Deputy Speaker, but can I put this to you: Karuah to the south, with 435 addresses and a population of 789 aged over 18 has two flyovers—one to the south of Karuah and one to the north of Karuah, and deservedly so. The planning for Bulahdelah, with a population of 521 addresses and 998 people aged over 18, is that it will get two flyovers: one to the south of the town and one to the north of the town.

The Hawks Nest-Tea Gardens intersection, with 1,382 addresses and a population over 18 of 2,380—and that is not counting the North Arm Cove population of 327 people over 18—gets a T-intersection. I know that you know this area rather well, Mr Deputy Speaker Causley. During holiday times, the population of the Tea Gardens, Hawks Nest and North Arm Cove area swells dramatically. It is a favourite tourist haven. In fact, our Prime Minister spent 20-odd years there on holidays until the Newcastle Herald stuffed that up for everybody. The reality is that this is a busy town, but it is one road in, one road out; it is one intersection. The fact is there have been a record number of accidents at that intersection.

Ms Michelle is coming down here this week to meet with the Minister for Local Government, Territories and Roads, Jim Lloyd. I am not happy about the current situation, and I have raised in this House many times how we, the Australian government, need to stand up to state governments on road prioritisation where we are providing the funding. We can no longer let the state governments put all of the planning into effect when we are providing 50 per cent of the money.

One of the groups happiest with the budget—and they are not always happy people—were the mayors in my electorate. The mayors were happy because this year there will be an additional $307.5 million paid to councils. They were to receive $307.5 million, but this year they will receive an additional $307.5 million. What that means for councils in my electorate is an additional $2.263 million this year. Dungog council will receive an extra $355,752, Gloucester council will receive an extra $353,690, Great Lakes council will receive an extra $617,602, Maitland council will receive an extra $473,678, and Port Stephens council will receive an extra $462,971. It has been very, very well received. In fact, the mayor of Gloucester, Barry Ryan, was quoted in the Gloucester Advocate as saying:

It’s a fairy god mother’s wish, Santa Clause is present and the tooth fairy too ... Roads to Recovery has been the best lot of financial assistance given to local government in all my years on council ... Five years ago we did not even get these funds. I’m just ecstatic and there will be a great benefit for the public from it.

The Great Lakes Council’s director of engineering, Ron Hartley, told the Great Lakes Advocate the extra funding would be used on the Bucketts Way and the Lakes Way. He said:

There are a number of major projects which have not been funded in current programs that we can now look at undertaking on a priority basis. There was actually a report to council’s March meeting which identified some areas that needed attention, and these would most likely be our priorities.

And the mayor of Dungog council, Steve Low, told the Dungog Chronicle that Roads to Recovery funding represents a 72 per cent increase in financial assistance grants to Dungog. He said:

This is great news, as the quantum has not changed since 2000, and by 2008 the funding would have lost about 30 per cent of its real value. Roads to Recovery has made a positive difference in the standard of local roads throughout Australia.

This funding is on top of the recently announced $10 million in road funding I secured for local councils in my electorate, for key road projects in Dungog, Great Lakes and Port Stephens shires. This was road funding that we put into local roads that should have been primarily the responsibility of the state government. We were doing the right thing putting $10 million into these roads, expecting the state government to match it at least—$10 million for $10 million.

The state government of New South Wales has no intention of funding roads outside of the Sydney metropolitan area. As I have said in this House many times before, it is $1 million or $1 billion for a tunnel in Sydney, but never a dollar for the bush. That is truly reflected in the way that they act. I know that my colleague at the table, the member for Wentworth, must be ecstatic with all the tunnels and highways in Sydney, but the reality is that people are dying on the roads in the bush, and we need to do something about it. That is what I campaigned on during my campaign to return to government in 2001 and that is why, this year, I was able to secure a $20 million program on the Bucketts Way—which you also mentioned in your speech, Mr Deputy Speaker Causley.

This year the area will receive the final $4.78 million instalment, which will bring it up to the four-year, $20 million program. In fact, tenders for the final year’s work will be called on 27 May. Projects targeted for this final year include, in Great Lakes shire, a final 1.4 kilometres of rehabilitation to complete the continuous improved link between Stroud and Stroud Road at $630,000; five kilometres of rehabilitation along the worst sections of the Bucketts Way, from the completed sections north of Stroud Road and running north towards Wards River, at $2.37 million; and, in Gloucester shire, 500 metres of rehabilitation along the Bucketts Way.

In total, there are four road reconstruction projects to be done in the next financial year, which involve seven sections of the Bucketts Way, totalling 9.2 kilometres in length across the Gloucester, Great Lakes and Greater Taree councils. Each section will be reconstructed and widened, and covered with primer seal of bitumen. More than 30 projects were scheduled for completion as part of the Bucketts Way program over four years, with the aim of improving driver safety. I do not think there could be anyone who, if they drove the Bucketts Way four years ago and they drive on it now, could fairly say they have not noticed substantial increases in the road quality, and in particular in safety. One of the key measures that I place on that is the reduction in the number of accidents. But, as I have always said and I continue to say, people must continue to drive to suit the road conditions at the time. We cannot expect to be able to sit on any road in Australia doing 100 kilometres an hour without observing the weather and road conditions that surround us.

Weakley’s Drive is a road over which I quite regularly have argy-bargy with the member for Hunter. Last year the federal government gave $3 million out of $25 million in project funding for Weakley’s Drive and the member for Hunter jumped up and down, saying, ‘Not good enough’. He had egg on his face when he found out that was all the RTA had asked for, because the state government of New South Wales has an inability to get on with this job. In fact, this year they do not have a full load of money to complete the roadworks—and this is only a simple flyover—and they have only asked for $10 million, so again the road will not be completed this year, and this is the end of the F3 where it joins the New England Highway. I am so disappointed that the RTA has not been able to adequately plan, prepare and get these roadworks under way. In fact, I think it is almost a state Labor government boycott of the people in my region. We have been fighting for these roadworks for over 10 years. If I were not in parliament perhaps I would be using different words, ones that I use when talking to people down at the pub, as I am so disappointed that this project is not going to be completed this year. I say to the RTA and the new NSW roads minister, Mr Roozendaal: pull the finger out and get on with the job; do what you were elected to do: build roads. If there were a way that the federal government could conduct its own roadworks without the interference of the state governments, more would be done, more roadworks would be completed and more lives would be saved.

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