Andrew Robb (Goldstein, Liberal Party, Chairman of the Coalition Policy Development Committee) Share this | Hansard source

I think both sides of the House agree that productivity improvements are critical in realising opportunities in the years ahead and in weatherproofing the Australian economy as best we can against overseas events over which we have no control. Within this budget there are many measures which go to the issue of productivity. One that the minister himself referred to in his opening comments is the intermodal terminal at Moorebank in western Sydney. Given the importance of living within our means and ensuring the productivity opportunities are realised from this intermodal terminal—and the opposition supports this initiative—I would like to refer the minister to the Department of Finance and Deregulation capital measures outlined in Budget Paper No. 2 on pages 301 and 302.

I have a number of questions and I would be very grateful if the minister could shed some light on these issues. Firstly, what is the rationale for establishing a GBE to develop the Moorebank site, considering that there is a strong private sector willingness, through Qube Logistics which has undoubted capability in this area, to deliver the same outcome on adjacent privately owned land? The land is currently owned by the Sydney Intermodal Terminal Alliance and developing that site would be at no cost to taxpayers. The land has open access, a port shuttle and an interstate rail terminal, as is planned by the government. As I understand it, the process will cost the Commonwealth nearly $1 billion, as spelt out in the budget papers: $559.4 million outlined on pages 302 as well as $332 million from the defence department.

Secondly, Minister, how pressing is the need for the relocation of the defence engineering facilities at Moorebank to Holsworthy? Thirdly, can you confirm that the interstate rail component may not be required until 2029? Would it be possible to spend a more modest sum of money on upgrading the defence facilities, which we do accept are in poor shape? Finally, considering the Commonwealth's very tight fiscal position, can you advise whether this proposal has been subjected to a cost-benefit study? Has comparative analysis been conducted between the government proposal and the private sector options, especially considering the very strong support from many quarters for the private sector proposal—the New South Wales government, the Business Council of Australia and many other groups, and financial reporters including editorials in the Australian FinancialReview?

Has it been assessed by Infrastructure Australia as a key priority? Is it true that the private sector proposal could be up and running three years sooner than the government proposal?

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