Ken O'Dowd (Flynn, National Party) Share this | Hansard source

I am pleased to be here tonight to speak on the Infrastructure Australia Amendment (Cost Benefit Analysis and Other Measures) Bill 2014. Prior to the election, we in the coalition said we would ensure that Infrastructure Australia would be: (1) a strong, independent and transparent expert advisory body; and (2) able to deliver quality independent advice on infrastructure proposals. This government believe that a function of Infrastructure Australia should be to conduct a cost-benefit analysis of nationally significant infrastructure projects which receive significant Commonwealth funding.

The purpose of this bill is to deliver on the coalition's election promise to strengthen the role of Infrastructure Australia and to create a more transparent, accountable and effective adviser on infrastructure projects and policies. We remain committed to broadening the current infrastructure reform agenda in collaboration with jurisdictions and industry to improve productivity and drive economic growth. The bill will amend the Infrastructure Australia Act 2008 to include the requirement that Infrastructure Australia undertakes evaluations of proposals for infrastructure projects which are of national significance and that involve Commonwealth funding of at least $100 million and ensures that cost-benefit analyses inform the evaluation of the proposals. The passing of the bill will bring into effect an important coalition election commitment to: ensure better infrastructure planning; ensure more rigorous and transparent assessments of taxpayer funded projects; and develop a much firmer and clearer infrastructure plan for Australia's future.

In the coalition's policy to deliver infrastructure into the 21st century, we committed to ensure that every project with a Commonwealth contribution of more than $100 million, apart from Defence projects, undergoes Infrastructure Australia's robust scrutiny and analysis. These projects might include dams, telecommunications, hospitals, educational institutions, energy projects or water networks. The coalition government have already tasked Infrastructure Australia with some key priorities, including: assessing projects receiving government funding of over $100 million; undertaking an audit of nationally significant infrastructure; and developing a 15-year plan on infrastructure priorities.

In November 2013 the government introduced the Infrastructure Australia Amendment Bill 2013 to make Infrastructure Australia an independent governing entity. It is now a truly independent truly independent advisory body, with a CEO responsible to a board. It has been given a mandate to identify Australia's long-term infrastructure needs for a rolling 15-year plan to be updated every five years and to get ahead of political decision making by assessing projects before choices are made and announced.

The coalition government is committed to building the infrastructure of the 21st century to ensure Australia can meet future transport challenges. In the 2014-15 budget, we laid out a historic $50 billion infrastructure investment program to deliver vital transport infrastructure across regional centres and rural communities, as well as our cities. Treasury analysis confirms that investments will also leverage more than $125 billion in the new infrastructure investment. This commitment is part of an economic action strategy to build a strong, prosperous economy, boost productivity and create thousands of new jobs.

Previous governments left my electorate of Flynn with a huge infrastructure backlog, but this government is moving swiftly to see projects accelerated and completed. You need look no further than the Queensland national highways. This government is well on its way to fixing the Bruce Highway. It was identified by the Productivity Commission early this year that previous decisions were made without proper cost analysis. Just look at the NBN, as an example. In Flynn, there is still much to do, and I have no doubt that this will be confirmed by a robust cost-benefit analysis of proposed projects. The Dawson Highway between Biloela and Gladstone has long been neglected and is in urgent need of investment. This is the heart of the Central Queensland cattle country. Would you believe that in the space of 120 kilometres there are five bridges that have load limit restrictions and B-doubles cannot even use this road? We need these roads to take B-double weights to transport our cattle around.

Investment would open up opportunities for direct export of agricultural and other products through the Port of Gladstone, which is currently underutilised and was previously used as a coal port only. Other roads and transport corridors that need urgent attention to facilitate cost-effective investments in agriculture and industry include: the Springsure-Tambo road—I get plenty of complaints about the condition of that road; the Rolleston-Blackwater road: and the Bauhinia Downs-Woorabinda road.

This government has put in place a policy agenda to: target investment in productive infrastructure; complete projects faster; partner with state governments; and leverage more private sector investment. Building better road and rail infrastructure will promote business opportunities in regional areas such as in my electorate of Flynn. It will help to cut fuel costs and reduce travel times so business and agriculture can prosper. That means jobs, further investment and a better economy for all Australians. The government is determined to reform the way decisions are made to prioritise new infrastructure projects, because failure to invest in infrastructure will limit our ability to grow, to provide business opportunities, and to provide jobs and economic prosperity

Our infrastructure commitment is $16.4 billion more than Labor promised in their term of government—and is without Labor ' s usual caveats on projects that prevent them getting off the ground. We do not want to see that happen again. We are making sure that Infrastructure Australia is able to better demonstrate transparency and rigour in its prioritisation of projects and its advice to government. Infrastructure Australia is already assessing projects which involve Commonwealth funding of at least $100 million and will make public the details of its evaluations.

Work on the promised national infrastructure audit has already commenced in consultation with state and territory governments. The audit will feed into the 15-year infrastructure plan, expected to be delivered in early 2015. The coalition government will give detailed consideration to Infrastructure Australia ' s advice on these needs to help inform decisions on future infrastructure investment. Infrastructure Australia will publish its reports on its website as transparent advice for the government to consider when allocating its infrastructure funding. Australia ' s future growth will be significantly influenced by our capacity to deliver more appropriate, efficient and effective infrastructure and transport.

Investment in nationally significant infrastructure is central to growing Australia ' s productivity and improving the living standards of Australians now and in the future. To maximise productivity improvement through investment, funding must flow to projects that yield the highest benefits. To avoid wasteful investment—I refer to the roof batts program, which led to 200 houses burning down and four young men losing their lives, one in my electorate—it is critical to base project selection on rigorous analysis and sound planning. We are focussed on long-term planning and developing a greater understanding of the critical issues facing Australia ' s infrastructure and land transport system . D espite the coalition ' s reforms to Infrastructure Australia, it remains an advisory body—but it is a key advisory body with an independent view. It will not be the decision maker in terms of funding allocation. That responsibility will remain with the government of the day. I commend the bill to the House.

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