Warren Truss (Wide Bay, National Party, Minister for Transport and Regional Services) Share this | Hansard source

In relation to the north-south rail study, the government expects to receive that report by about the end of this month or early next month. Once we have obtained the report, it will be possible to make some more judgments about what further action might be required. When the whole issue of the north-south or inland railway line was first talked about, it was going to be funded entirely by the private sector. If that is still the case, there may be no further response required from the government. I have an idea that most of the proponents have now drifted away from that line a little and expect that there will be a need for some kind of public funding to make the projects viable. When we have the report it will be an appropriate time to think about what further steps might be required. There is some funding in AusLink 1 for rail upgrades but, if there is to be a substantial investment in some new rail line, that would have to be considered either in AusLink 2—assuming there is to be an AusLink 2—or through some other kind of funding arrangement.

The Regional Partnerships grants are normally taxable. If they go to a tax-exempt body, they are not taxable in their hands but if they go to a private individual they are like all grants—essentially taxable. If there is anything unusual about the particular grant that the honourable member is referring to, I am happy to follow that up. But the taxation status of the grant would depend largely on who received it and whether it was a taxable body or not.

Finally, I obviously was not privy to any conversations between the Mayor of Tenterfield and the Deputy Prime Minister, but I will ask him what commitments he may have given, and naturally, if the Deputy Prime Minister has given a commitment, that is the kind of commitment that we like to honour.

See this speech in context