Pat Conroy (Charlton, Australian Labor Party) Share this | Link to this | Hansard source

Our population has grown and continues to grow, and this has led to a dramatic increase in the need for housing and more livable cities. We need a long-term plan for our infrastructure needs—to build public transport and roads, schools and housing. When we do this it has to be done in a way that promotes jobs and growth and ensures sustainability and support for social cohesion. The piecemeal approach to infrastructure planning is flawed, but unfortunately it continues to prevail. This is not because planners and communities do not know what is needed, but rather that too many essential projects succumb to a lack of funding or political will. Indeed, under this government, the outlook is glum. The ABS recently found that public sector investment in infrastructure had fallen by 20.1 per cent for the June 2015 quarter compared to the last quarter when Labor was in government.

In his submission to the Senate inquiry, shortly after the election of Liberals to government and their intention to gut the scope and function of IA was revealed, the authority's then chief executive made a scathing submission in which he said:

There is an air of unreality about our infrastructure planning.

This is appalling. Building the public infrastructure our country needs should not be reminiscent of an episode of Utopia. We in this place have been entrusted by the people and the communities we represent to deliver what is in their best interest. Playing politics is not good enough, and those who do so are doing a disservice to the people they have been elected to serve.

I am proud that Labor have said that in government we would establish a $10 billion dedicated infrastructure fund that would consider, plan and fund the major infrastructure projects this country desperately needs. At the heart of this policy is an empowered Infrastructure Australia, an independent decision maker, to ensure priority is given to projects that will deliver the greatest benefit. We are not afraid to remove politicians from a process of identifying which major projects the Commonwealth should support. We will appoint an expert panel to determine the investment mandate, and, for the first time, Infrastructure Australia would have the ability and flexibility to pursue financial arrangements that leverage investment from the private sector and superannuation funds, in particular, as well as from government.

There is around $2 trillion in the pool of national superannuation savings in this country which could drive major infrastructure investment across the country. It would be a similar model to that of the Clean Energy Finance Corporation, which the last Labor government put in place, which from around $1.4 billion of commitments so far has created around $3½ billion of renewable, energy efficient and low-emissions projects. For every dollar of government finance, the CEFC is leveraging around $2.20 in additional investment from the private sector. More importantly, the technologies being supported will achieve around 4.2 million tonnes of carbon abatement and grow new industries.

Labor also has a longstanding commitment to progressing the planning and construction of high-speed rail along Australia's eastern seaboard from Brisbane to Melbourne via Newcastle, Sydney and Canberra. The benefits of high-speed rail are enormous and will have a transformative effect on regions like mine. Linking Newcastle and Lake Macquarie with our capital cities in a fast, convenient and reliable way will literally change the way we live and work. For many in the southern areas of Lake Macquarie, and certainly further south on the Central Coast, the commute to Sydney is already a necessity. However, it is well known that the Newcastle-to-Sydney route can take longer today than it did in the 1930s on the old Newcastle Flyer. With a high-speed rail network in place this journey could potentially be reduced to around 40 minutes.

The most recent planning document released by the department of infrastructure under the former Labor government set a blueprint for the high-speed rail corridor through Newcastle and Lake Macquarie. In it a station had been earmarked at Cameron Park in my electorate, a logical location given its proximity to the M1 motorway and the Hunter Expressway, and very accessible to the burgeoning population centres of the lower Hunter and Lake Macquarie. Of course, this is only a preliminary design, and the eventual location may be further north or south of this. Nevertheless, we know that this corridor must be quarantined and that the planning work must progress with cooperation across all jurisdictions. The recent bill to establish a high-speed rail authority is vital to this process. I note and commend the New South Wales government for their commitment to work with the Commonwealth to preserve the high-speed rail corridor.

High-speed rail will unlock the potential of regions such as mine and those of other members in this place. Without putting words in her mouth, I know the member for Indi realises the potential for her own community in linking it up to Melbourne and Sydney. When we talk about infrastructure and transport, we are talking about the future. We are looking at what we need to see our economy grow and to see our industries become more efficient and sustainable. And we are making decisions on how best to make that happen. Yet far too often the debate around these issues is hijacked by unhelpful politicking, and far too often I see this in my own region.

When Labor's infrastructure fund was announced, I was disappointed to hear the member for Paterson, my fellow Hunter region MP, take to local radio to criticise the plan because it did not extend the funding to the Glendale interchange, a strategic infrastructure project that is widely recognised as a priority project for our region. Whilst I welcome the member's keen and newfound interest in the Glendale interchange and trust this will extend to lobbying his own government for further federal funding, there are a number of reasons why these comments are unhelpful and should be called out as blatant politicking. First, construction of the Glendale interchange is for the most part the responsibility of the New South Wales government. Whilst I am an unwavering proponent for this project, it is not nationally significant in terms of the scale that Infrastructure Australia needs for projects, and the member for Paterson knows this. Furthermore, the New South Wales government has not nominated the project as a priority to Infrastructure Australia, a necessary precursor for consideration by the authority. Finally, the member for Paterson should know that the infrastructure minister and his department are currently considering an application from Lake Macquarie City Council for funding for the Glendale interchange through the National Stronger Regions Fund. This is a more appropriate source of federal funding for a project of this kind. Whilst the council's application for the first round was knocked back, I remain hopeful that it will be successful this time.

The member for Paterson failed to understand that developing a $10 billion infrastructure fund for projects of supreme national significance unlocked, freed up, traditional federal government outlays for investment in projects at the next tier down, such as the Glendale transport interchange. This is the beauty of using the private sector for projects that have a direct commercial payback—using the $10 billion fund. It frees up traditional government outlays for projects that, while they are very significant for regions, are not at that nationally significant level.

In the case of Glendale, work has been divided into two stages, with roadworks in the first phase of stage 1; the construction of the Pennant Street bridge in the second phase of stage 1; and the construction of a road and rail interchange, including a new railway station, in stage 2. Lake Macquarie City Council successfully lobbied the state and federal governments to support construction of the first stage, and a total of $37.5 million has been raised from all three levels of government to progress the first phase in roadworks. However, more investment is needed in order to see the Pennant Street bridge built, and I am informed that in addition to the council's application to the second round of the National Stronger Regions Fund an application has been made to the state government through the Hunter Infrastructure and Investment Fund. Whilst the council has some responsibility when it comes to getting the interchange built, ultimately it is the New South Wales government that must do the lion's share. I have already called on the New South Wales government to allocate funding from the sale of the Port of Newcastle towards this project, but so far this has not been forthcoming.

The New South Wales government sold the Port of Newcastle, or leased it for 99 years, for a record price of $1.7 billion. When they released the prospectus for this sale, they made a commitment that they would spend half that money in my region. They failed to do that. Of the $1.7 billion, they have only allocated somewhere between $400 million and $500 million for my region. Importantly, most of that money is going into the heart of Newcastle, in the CBD, to rip up a heavy rail line and replace it with a light rail line. This money could be much better spent in my region, the western suburbs of Newcastle and northern Lake Macquarie.

So I call on the New South Wales government to do the right thing, to invest the further $400 million or $500 million, that represents a fair commitment to my region, from the lease of the port. I call on the member for Paterson to work with the other MPs in that area to welcome positive announcements no matter who they are from—in this speech I welcomed the commitment from the state Liberal government—and to work with us to deliver vital infrastructure for our region. We are a small region, but we have got a loud voice. We have produced tremendous wealth for Australia. We have got a great population that is growing very rapidly. And we need infrastructure urgently. By only working as a team, by moving aside petty politics, by saying, 'We want high-speed rail; we want the Glendale transport interchange,' we can boost our region, take pressure off cities such as Sydney and make the eastern seaboard a great place to work and live.

Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

For too long South Australia's attention has been fixated on the next big thing, looking over the horizon for something that will save us—if we need saving at all. We have had people touting the Olympic Dam expansion by BHP Billiton for a number of years and, more recently, the Future Submarine Project. The Commonwealth Games has recently popped up as well. They are all said to be projects that will save South Australia's economy. While I do not for a moment not support any of these projects proceeding, they should not in isolation be seen as something that will magically save our economy. The South Australian community has become unfortunately too obsessed with the magic bullet. We are not focused enough on the bigger picture: the growth in Asia and the opportunity that that brings us. Henry Ford famously said, 'If I had asked people what they wanted, they would have said "faster horses"'. Faster horses would not have revolutionised society as the steps that Ford took most certainly did—and innovation was one of those—many years ago. Through innovation and enterprise Henry Ford created a product for the market that would not have existed otherwise.

The Prime Minister, Malcolm Turnbull, has spoken at great length about innovation. That will be one of the driving factors of his time as Prime Minister. We can decide to either embrace the future or be overtaken by others who will. On a recent visit to Adelaide the PM was impressed by the products and innovation of Philmac, a local company in my electorate. The company is 85 years old, as he mentioned today in question time. It makes plumbing fittings and facilities for agriculture and irrigation. It is a niche exporter making valves. It is employing almost 300 people and is about to employ another 30 people. It is driven by innovation with its products.

We have much to be optimistic about, as the Prime Minister said in a major speech last week. He said:

The transformation of the middle class in Asia is extraordinary. This … is the first time for 300 years that half of the world's middle class are living in Asia.

…   …   …

So the opportunities for us are absolutely extraordinary … There has never been a better time to be an Australian business.

This is particularly the case in certain sectors of the economy, such as health, with the trade agreements coming into force. In China tariffs of up to 10 per cent will be eliminated across a range of pharmaceuticals, vitamins and health products once our FTA comes into force, hopefully before the end of this year. For example:

'It really opens up the opportunity for the Chinese consumer to buy a whole range of Blackmores products and for us to offer them,' chief executive Christine Holgate [said].

Sales in its Australian-based operations were up 43 per cent, a result Ms Holgate attributed to increased demand for vitamins from Chinese tourists in Australia, the nation's ageing population and more investment in branding and research.

There are some real opportunities there across the spectrum. She noted:

'Companies like Blackmores are extremely well placed to capitalise and are employing additional people in anticipation of continued growth in markets like China.'

And:

… the opening of the latest free-trade zone in China last November had created a substantial opportunity for the group, which was one of the few companies in the vitamin and health supplement space to secure a licence to trade directly into that zone.

…   …   …

The emerging entrepreneurial activity by local Chinese expats and tourists had opened a whole new sales channel for the company, adding an estimated $65m to Asia-destined sales.

…   …   …

Rival companies such as Swisse Wellness and Vitaco are also looking to China for growth.

I want to elaborate further on the opportunities with the Chinese agreements. We know that they will create thousands of jobs—billions of dollars coming into our economy with the trade agreements across South Korea, China and Japan. To put the historic China free trade agreement in context, Australia and New Zealand commenced negotiations with China in 2005, and New Zealand finalised its agreements in 2008. Since that time New Zealand's dairy growth has been close to 900 per cent, while our dairy sector grew by around 150 per cent. New Zealand's free trade agreement with China has been an enormous boost for their economy, while dairy farmers across Australia have had to wait. It is industries and companies that will lead the charge to maximise the opportunities that have been laid by the federal government in this space.

I now turn to investment in infrastructure. Governments need to be making the right investments in key infrastructure in a creative and imaginative way, especially when funding is limited. There are a number of infrastructure related projects in South Australia that offer great potential for our economy. Some have existing federal government funding while others have raised funding with key organisations. Let me go through a few. First, there is $1 billion for the upgrade of South Road, which I have been fighting for in terms of the Torrens Road to River Torrens section. It will create around 1,000 jobs in South Australia and unlock travelling time along the North-South Corridor. Secondly, there is the South Road Darlington Interchange and Flinders University. Flinders University promotes an innovation precinct that thrives on connectivity and driving integration and innovation with the Tonsley business park. Hopefully it will deliver around $1.6 billion in private capital investment, around 11,500 new jobs, over 10,000 new residential units and a trebling, importantly, in international student numbers at Flinders, bringing a further $200 million per annum into the local economy. I know that New South Wales, Victoria and Queensland all have more international students than my state, but South Australia must do better and can do better and take advantage of the opportunities that Asia presents in terms of international student numbers.

Moving on to health and health services, the Medical Research Future Fund is, as we know, the biggest endowment of its kind in the world, and we know it is a game changer. Last week I met with Mr Steve Wesselingh, the executive director of SAHMRI, the South Australian Health and Medical Research Institute, and he spoke positively of the opportunities for the MRFF:

The MRFF is a once-in-a-generation opportunity to change the landscape of medical research in Australia, delivering benefits to the health of Australians while helping secure our nation’s future through the maintenance and creation of the high value jobs that we so desperately need.

The John Chalmers centre, also known as SAHMRI 2, is a major project involving a cancer-destroying proton therapy facility valued at over $200 million. In other areas of health and medical products, BioSA are proposing a bio-innovation accelerator with around $40 million of funding sought from government to help create more success stories like BresaGen, Bionomics and GroPep in the biotic space.

In other infrastructure, the Glenelg Jetty Hotel is a $250 million project that is centred around an iconic hotel on the jetty and function centre. An upgrade of the Memorial Drive sports complex is close to $180 million. That will benefit not just tennis, the traditional tenant of Memorial Drive, but basketball, netball and squash, among other sports. The recently announced Northern Connector project in South Australia to build the North-South Corridor to help transport our goods to overseas markets is another billion-dollar project. On major road projects, the Strzelecki Track to the Cooper Basin upgrade will cost $450 million. According to the South Australian government, this will result in over 2,500 jobs in the oil and gas sector, as well as hundreds of millions of dollars of investment. The question I ask is, if this was proposed in 2014, why has the South Australian government not funded it? Instead they have decided to commit $160 million to the O-Bahn track in the city. South Australia is benefiting from the federal government's record spend on infrastructure. The Commonwealth government is now investing a total of close to $3 billion in South Australian infrastructure—the biggest single investment of any Commonwealth government. But not all of these projects can be funded by state and federal governments, as taxpayers' money does have limits. We will need to look at innovative funding models to get some of these projects over the line.

Finally, in terms of major government initiatives, I want to address the defence sector. We are well placed to take advantage of the coalition government's commitment to develop a sustainable shipbuilding industry for the first time in Australia's history. With over 30 per cent of Australia's in-country spend and sustainment budget, we can take advantage of the billions of dollars that the government will spend on defence. With the Future Frigates project, there are about 2,500 long-term shipbuilding jobs that otherwise would have been lost. As people know, I have been fighting for more jobs in the sector—in particular the Future Submarine Project, which we are closer to making an announcement on. But the Future Frigates, in itself, is around $40 billion and, importantly, the federal government has fast-tracked both this project and the patrol vessels.

In conclusion, our economy in South Australia, like in Australia, is suffering from transitioning from the mining boom and the decline in manufacturing to a knowledge-based economy where we need to be more innovative and entrepreneurial. For a number of years, South Australia has been sitting below the national average and below trend, so we have missed out, but we cannot be left behind going forward. We must take advantage of these opportunities and we must show ambition and enterprise to achieve our potential. The road ahead is full of opportunities—we cannot be left behind.