Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to Senator Johnston, representing the Minister for Infrastructure and Regional Development. In Adelaide, the South Road project is part of the north-south corridor, an economically productive infrastructure project of national significance. The Torrens-to-Torrens part of that project has had most of its funding, previously committed funding, withdrawn by this government to the extent of $476 million, with only $20 million now allocated. Can the minister explain why the South Road project in Adelaide will now receive only a 50 per cent contribution in Commonwealth funding compared to the Brisbane Gateway and Perth Gateway projects, for instance, where the Commonwealth is making a significantly higher funding contribution of 70 per cent from the federal government and 30 per cent from those states? How is South Australia not being discriminated against in respect of Commonwealth assistance for essential infrastructure projects compared to other states?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I thank the honourable senator for his question and acknowledge his interest in infrastructure in his home state of South Australia. The government has made a significant commitment of $500 million to upgrade South Road—half a billion dollars to that project to which he refers. On 19 October 2013, the Prime Minister announced the Australian government's commitment to complete both the Darlington and the Torrens projects and ultimately the full north-south corridor. We have indicated that the Darlington section at the southern end of South Road is our highest priority, in accordance with our election commitment. We have asked the South Australian government to develop a comprehensive business case proposal for the Darlington project. The Australian government will provide funding for the business case and expects that work will be underway by the end of this year.

However, the government also recognises the critical importance of the full length of South Road and the need also to upgrade the Torrens Road to River Torrens section. Recognising this, we are also asking South Australia to continue with the planning for the Torrens project using $20 million in Australian government funding that has already been provided. We will work with the state government on ways to ensure that this important project is completed as well and in a very timely way. In addition, the Australian government will work with the South Australian government to develop a plan to ensure that the upgrade of the north-south road corridor is completed within a decade. That is the commitment of this government.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I ask the minister again: are the funding ratios in South Australia much lower than in other states? If the government is committed to economically productive infrastructure, why has the government slashed support for the Torrens-to-Torrens project, which, based on the nationally accepted benefit-cost benchmark, shows the benefit-cost ratio of 2.4 to one, compared to the Darlington project, which currently has a benefit-cost ratio of 0.66 to one?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I reject that premise and contention that the honourable senator has put forward. Prior to the election, the former Labor government promised $448 million. This government has committed $500 million to the project. The government has made an assessment, I am advised, upon the basis of which project can be brought on efficiently, cost effectively and quickly. This is the way this government does its business. Let us get on with the job. We are open for business. We are not going to be hostage to some quaint preference by the South Australian government. We want to see some action. We have put the money on the table. We have paid for the business case model to be developed. We want to see it start.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I have a further supplementary question. I note the federal government is funding regional road projects—in Queensland, the Bruce Highway project, and in New South Wales, the Pacific Highway project—which are very worthy projects. Can the minister explain why there are no current funding commitments to regional roads in South Australia, given that there are roads such as the Augusta Highway and the Sturt Highway that urgently need safety and capacity improvements and for which good project proposals have been developed?

David Johnston (WA, Liberal Party, Minister for Defence) Share this | Link to this | Hansard source

I thank the honourable senator again. I am sure that he will understand that our legacy from the previous government has effectively been not just fiscal wreckage but also managerial and planning wreckage and mayhem. We are currently engaging in a detailed process for infrastructure programing with all states and territories, including South Australia, and will have more to say on how the planning process and the cost-effective and business-model analysis are going, such that we can, as the senator would have us do, have proper, costed, funded, cost-effective and efficient projects starting in regional places in Australia, including South Australia.