House debates

Tuesday, 10 December 2013

Bills

Infrastructure Australia Amendment Bill 2013; Second Reading

7:15 pm

Photo of Kevin HoganKevin Hogan (Page, National Party) Share this | Hansard source

Can I say from the start that as a representative of Northern New South Wales, the regional community of Page, I welcome the Infrastructure Australia Amendment Bill 2013 as being long overdue. Nation building and developing Australia's infrastructure for this century, with an eye on the next, must be at the heart of any good government. It is important for the nation and for regional areas like mine. This amendment bill will strengthen Infrastructure Australia by re-establishing it as an independent, transparent and expert advisory body.

As a regional representative, I can personally testify that nationally significant infrastructure projects are crucial to growing Australia's productivity and improving living standards. I gave my maiden speech to this House almost three weeks ago. Since then, underpinning everything I say in all my speeches has been the theme of the need to build nation-changing infrastructure as a way of creating jobs—jobs not just in the construction phase of a particular piece of infrastructure but also from the economic flow-on effect.

The Pacific Highway is a crucial part of our nation's economic artery which connects the major cities on Australia's eastern seaboard from Brisbane to the north, via the Bruce Highway, and from Brisbane south to Sydney, to Canberra and to Melbourne, via the Princes Highway. While this federal coalition government has rightly committed to funding the final significant section of the Pacific Highway between Ballina and Woolgoolga to the tune of $5.6 billion, it was done despite Infrastructure Australia, not because of it.

In the five years since Infrastructure Australia was created, it has become apparent that the current structure of the organisation does not provide the necessary degree of independence and transparency needed to give the best advice to the national government about the infrastructure priorities that will reverse Australia's slide in productivity. However, this amendment bill will strengthen Infrastructure Australia in its governance, clarifying the scope of its responsibilities and entrenching its role as a key adviser to government.

One of the problems of the existing structure is Infrastructure Australia's inability to correctly and independently identify projects as national priorities. For example, while it compiles priority project lists, these projects are based on state and territory government projects, and the prioritisation is based on the extent to which these project business cases are advanced, which in some cases is irrelevant.

While I have great respect for our state governments and for our federated system of government, the needs and wishes of a particular state are not the same as those of the nation. This House is charged with looking at the broader, bigger picture: the national picture. It is only the national government, not state governments, which can advance national priorities. And it is only by taking this larger national view that we can improve the nation's productivity.

It is my sincere hope that by ensuring Infrastructure Australia's independence we can avoid the political squabbling which until the last election threatened to delay the completion of the duplication of the Pacific Highway. Although the duplication of the highway was named as nationally significant, it was dogged with delays when the previous Labor government wanted to argue about the funding split with the state. These arguments became highly political. The previous federal Labor government—and I credit it—lifted funding on the Pacific Highway from a fifty-fifty funding split to 80-20. This, though, coincided with when we had a state Labor government. When the state Labor government was defeated, the federal government in its wisdom decided that it should lower its spending commitment to the Pacific Highway. What rationale was that based on except the fact that the state government had changed from a Labor government to a coalition government? That type of rationale and that type of decision making is absurd, and it is not what the Australian people deserve.

The families in my electorate were angered when the previous federal Labor government made such a political statement with infrastructure that was of such national importance. They did not care who funded the highway or who promised what; they just wanted it fixed. This double standard by the previous federal Labor government was not good enough.

Businesses are the same. They need certainty. They need to know that a project will be completed by a certain date. They cannot create sustainable jobs without planning certainty.

Thankfully, we as the new government recommitted to funding that necessary infrastructure at 80 per cent federally, and I am a proud member of the government that has committed to that.

On a different tangent, to show the inconsistencies of the previous Labor government with areas of infrastructure of national importance, we also saw this type of politicisation within the RDA funding which members of the previous Labor government go on so much about. Regional funding was meant to be as it was: for regions. The previous Labor government decided that the Perth Airport qualified as regional spending.

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