Joe Ludwig (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

This evening I rise to speak on the state of regional funding from this government. As I have informed the Senate on previous occasions, I do regularly travel across regional Queensland, and I want to report to the Senate this evening on the growing choke hold on regional council budgets. The choke hold on regional council budgets has been driven by an ideological obsession with cutting funding to the bone by this government. Regional councils across Queensland have been left in the lurch, waiting to hear whether or not important funding will be provided or stripped away by this government. The budget to be handed down in May is a serious test for this government. It will show Australia, and particularly regional Australia, what choices the government has made, and it will send the clearest message about the priorities this government has made.

To date, I am afraid to say, the sorts of choices the government is making have seemed apparent, and they are not choices in favour of local and regional councils. The Regional Development Australia Fund, or RDAF, was one of the vehicles delivering key funding to local councils to undertake community services and programs. Labor in office funded rounds of this important funding. The grants supported local jobs, created local opportunities and helped local economies. For regional councils these grants were vitally important. The Labor government budgeted and funded five rounds of the RDAF grants. Round 5 included $150 million in grants that were announced and awarded to local councils.

But, since coming into government, the Liberal and National parties have effectively pulled the rug out from underneath local councils and stripped away the round 5 funding. Over 70 individual grants to local councils in Queensland have been cut by this government. Over $1.3 million has been torn away from Western Downs Regional Council, whose mayor, Ray Brown, I have met with in Chinchilla a couple of weeks ago. Another $1 million will no longer be given to the Maranoa Council for community infrastructure projects because of this government. I met with Mayor Robert Loughlan a fortnight ago, and I understand the financial pressures that local councils in regional Australia are under.

It is not simply the cutting of the RDAF grants that hurts local and regional councils; it is the message that is sent to regional Australia and the communities that live in those regional areas by this government. It sends a very clear message that the Abbott government does not care about local councils or about local services, jobs or opportunities in those regions. The choke hold on regional council budgets, especially in Queensland, comes from the cloud of uncertainty over any future federal government support. From the Torres Strait to the Gold Coast and out to Boulia, councils are suffering at the hands of this Abbott government. Government needs to be involved in a dialogue with local government and councils, not in closing the shutters. The councils know that $150 million worth of funding has already been stalled, cut, put on hold—however you want to describe it. It certainly is not flowing to those communities for those programs and community projects that they so dearly want. What councils will do next and how they will meet those expectations in those regional communities is really left in limbo by this government. It means councils cannot properly plan. They cannot prepare their own budgets for these needed priorities that their communities deserve and want. They do not know what interest the federal government is going to have in their local communities.

What we do not want is a return to regional rorts. This government, when in the Howard era—if I can call it that more broadly—made some very bad and unhelpful decisions for local communities. Council projects around Queensland to date have been put on ice as a consequence of this government's actions. Supporting local councils is about supporting regional communities. RDAF and other financial support for local councils creates jobs and grows our regional economies. What this government cannot understand is the simple maxim that you cannot cut your way to growth.

RDAF has funded projects like a new mentoring facility next to the Toowoomba Flexi School to help at risk young people to complete senior schooling using intensive case management. It has supported disability access to the Gympie Music Muster site, a swimming pool for the Central Highlands Regional Council and upgrades to the Northern Peninsula Airport refuelling services to allow a 24/7 access for private and commercial operators. It converted unused sheds into tourist hubs for the Somerset council. Labor invested RDAF funding for Lifeline counselling services for the Maleny Community Centre and for the Magnetic Island walkways. All of these projects had clear economic and social values and benefits. They are all projects that the Liberal or National Party doormats would not have funded if they were in office at that time. This government talked the talk in opposition, but in government it has been found sorely lacking.

I wish to take also the opportunity to bring to the attention of the Senate one of the best examples of the government's lack of action despite tough words in opposition. The Toowoomba Second Range Crossing represents one of the biggest fiddles to regional Australia. Put aside your personal opinions about the merits of the project for a moment. What is without question is the tricky way in which the government has used its announcements in this area. In fact my recollection is that Minister Macfarlane announced a range crossing three times, I think, during his first term and we still have not seen Minister Macfarlane take it any further. But then, I guess, he has never won a battle in cabinet either.

Joining with the Queensland government recently the Liberal and National federal government is leaving Toowoomba short changed on this project. Let us look at the figures. In response to question on notice No. 98 from the November Senate estimates the project was confirmed to have been estimated to cost about $1.66 billion. In a media release on 31 January 2014 the Queensland Treasurer Mr Tim Nicholls said that he welcomed the Commonwealth government's $1.3 billion investment in the project. A generous contribution, I thought. Sadly, for the people of Queensland this figure is nowhere to be found in any Australian government document, website, press release or answer. In fact, if we return to question on notice No. 98, we find that the Australian government is only investing $700 million in the project, which means on the government's own numbers that they are about $600 million short of what the Queensland Treasurer is flashing around and $900 million short of perhaps the total cost of the project.

The government is currently looking for private contributions to the project, which it is entitled to do if it can find that sort of money as a private contribution, but to purport wild variation in costings as being a project that 'will happen', I think, is unacceptable and, to be frank, they are trying to treat Australians like mugs on this one. I asked the department a simple question, 'Has the full amount that is required been allocated for the Toowoomba Range Crossing or been budgeted in the forward estimates to the project?' The answer tabled by this government was 'no'. It speaks volumes, really, about this government.

Local governments are arguably the hardest working level of government—especially when compared to this particular federal government, I should add. They are close to the coalface. Every day they directly deliver services to their constituents, and they do a good job helping communities, helping the environment and managing their budgets. During natural disasters they are the first to arrive and the last to leave. They roll out the community and social fabric that holds towns together. Local governments deserve our strongest support, and they do not need a tricky government, they do not need a government with cruel cuts as served up by this Abbott government.

When you look at the range of projects that are on hold you have Regional Development Australia Funding Round 5 for significant amounts of money such as: Aurukun, $198,479; Balonne, $341,134; Barcaldine, $483,385. Where is this money from this government to support those community projects?