George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

My question is to the minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government, Senator Conroy. I refer to reports in this morning’s newspapers that state governments are having increasing difficulty in borrowing due to the effect of the Rudd government’s bank guarantee scheme which makes state government bonds less attractive to investors. What infrastructure projects are at risk as a result of the unintended consequences of the Rudd government’s bank guarantee scheme, of which Malcolm Turnbull warned last October but which the Rudd Labor government ignored?

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

I congratulate Senator Brandis on getting a question. He is the only Queenslander, I think, not to get one this week, but we welcome it. The government is supporting business investment during—

Opposition Senators:

Opposition senators interjecting—

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

He’s not really a Queenslander? The government is supporting business investment during the global credit crisis. The government has already taken steps to facilitate the flow of credit to businesses by securing their deposit base. We have offered bank deposit guarantees to ensure the banks could attract deposits and wholesale funding in exceptionally difficult credit market conditions.

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

Senator Bernardi interjecting—

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

Senator Bernardi, if you listened to the question that was asked—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, ignore the injections and just address the chair.

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

you would know exactly that this is on the question.

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Conroy, you were asked to ignore the interjections and address the chair.

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

Sorry, Mr President. As I was saying, banks will be able to attract deposits and wholesale funding in exceptionally difficult credit market conditions so that they continue to lend. The coalition rejected the Australian Business Investment Partnership we put before the parliament to assist large-scale commercial property access financing. They have committed to voting it down in the parliament.

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. This answer is not directly relevant. I asked about infrastructure. I asked him to identify infrastructure projects. He has neither mentioned the word nor any particular project.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

On the point of order, Mr President, the question started with a reference to the availability of credit for state governments and the funding situation to finance infrastructure projects. Senator Conroy is directly on the question when talking about credit, the bank deposits and guarantees, and how we actually make sure that credit does flow to both private and government investors. So Senator Conroy is directly answering the question. He is only a minute into his answer and I think that he ought to be allowed to finish his answer.

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, you have 44 seconds remaining to address the question that has been asked by Senator Brandis.

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

As I have been outlining, there has been a deterioration in the global economy that has not deterred the government’s long-term nation-building agenda. The truth is we started acting before the global recession hit. One of the key aspects that we have identified is setting aside more than $26 billion for the nation-building funds to finance critical national infrastructure projects. The reports in the newspaper that Senator Brandis is referring to are nothing more than speculation. Infrastructure Australia is working—(Time expired)

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Given that the Queensland government is already projecting public debt of $74 billion, what effect will the difficulty Queensland faces in sourcing funds have on major infrastructure projects in my state such as the Northern Link tunnel in Brisbane?

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

The government is investing over $6.5 billion in vital road and rail infrastructure in Queensland with the nation-building program. This is almost double what the opposition spent over the same period of time when in office. Take, for example, the Bruce Highway. The opposition only spent $900 million on it, whereas the Rudd government is investing $2.2 billion on the highway. On the notoriously dangerous stretch of road from Curra to Cooroy the Rudd government has committed $200 million towards this project to undertake necessary planning and design work as well as to progress with land acquisition. In contrast, when the coalition was in government it spent only $3.22 million on this same stretch of road, a measly $3.22 million was all the local member—(Time expired)

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the state governments’ inability to borrow or to borrow only at higher interest rates impose future financial demands upon the Commonwealth through Infrastructure Australia? What is the government’s estimate of the additional cost to the Commonwealth of unfunded state debt?

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

A number of those questions are premised on a number of assumptions, which are not assumptions this government necessarily agrees with. But, if there is any further information that I can get for Senator Brandis, I am happy to take it on notice and respond to him.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.