Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Nash for her question. The New South Wales mini-budget discloses a deterioration in the state’s net operating balance. New South Wales now expects to run a deficit of $917 million in the years 2008-09. The mini-budget indicates that New South Wales is facing significant reductions in stamp duty revenues and reduced GST receipts. Reduced GST receipts will also have an impact on New South Wales’s operating balance of more than $400 million in 2008-09. New South Wales indicates that it is doing everything it can to retain its AAA credit rating, and this mini-budget takes the necessary steps towards preserving that rating. In the context of a global financial crisis, a reduced fiscal position is not unexpected.

The introduction of time-of-day tolling and related congestion charges by the New South Wales government is a welcome step to address urban congestion in one of Australia’s major cities. The Rudd government is committed to the duplication of the Pacific Highway. We have committed $2.45 billion for the highway over the next five years. This commitment is rock solid and will be delivered in full. In fact, we will spend more on the Pacific Highway than on any other road in the country and three times more than the coalition spent over the last five years.

I am aware that New South Wales announced yesterday that it will provide only $500 million for the Pacific Highway over the next five years. This is a cut of $300 million and it means less work will get done and it will take longer to complete the duplication. The Rudd government has told New South Wales quite clearly that this is not enough and that they should be providing much more. However, we will not be punishing the motorists of New South Wales by reducing our commitment to this critical road.

I also note the member for Cowper’s bipartisan support for us continuing to deliver a record investment irrespective of what New South Wales does. I will continue to urge the New South Wales government to increase their contribution. But, as the New South Wales Treasurer has indicated, all revenue raised will be spent on public transport initiatives—