Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answer given by the Minister for Finance (Senator Cormann) to a question without notice asked by Senator Whish-Wilson today relating to investment in infrastructure for Tasmania.

In my home state of Tasmania $900 million is needed right now to upgrade infrastructure that is nearly 100 years old for something as simple as sewerage and water infrastructure. There are 15 communities in Tasmania that do not have clean drinking water at the moment; they have to boil water and are on permanent boiled water alerts. There is our Hobart light rail—$100 million to use the existing rail system to put in place transformative electric rail in to Hobart. We have a desire to build a new port hub in Burnie for $50 million. As the Productivity Commission has outlined, when bundled together these small projects—

Barry O'Sullivan (Queensland, National Party) Share this | Link to this | Hansard source

They don't sound big.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

They do not sound big—$100 million, $50 million. Certainly they do not sound big to you, Senator O'Sullivan, given your immense personal wealth.

Honourable senators interjecting—

Okay, that was a cheap shot, I must admit. When we bundle these projects together we can issue infrastructure bonds against them and provide all the finance for local governments and state governments to start filling the infrastructure gap that we have around this country. It is nearly $1 trillion in states and territories around Australia—$1 trillion in underinvestment in infrastructure in this country, and I am talking about transformative infrastructure that would increase productivity and would make for better communities—

John Williams (NSW, National Party) Share this | Link to this | Hansard source

More dams.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

and more sustainable communities, you will be pleased to know, Senator Williams, including pipelines and the dams, where they are sustainable. As I said yesterday, I saw a very good project in Townsville that needs financing. Everywhere around this country, when you talk to the locals and go to the cities you see the need to invest in infrastructure in Australia. The IMF, Glenn Stevens, Saul Eslake, John Hewson—one of the biggest supporters—and even Alan Kohler the other night on TV are saying why don't politicians make the most of this historic opportunity to borrow money at record low interest rates and invest in the future of this nation?

Unlike Senator Cormann in his answers to my questions today, I say that these rates can be locked in. With the right kind of financing structures we can do it. But the only reason we do not do this and are not embarking on a nation-building infrastructure program is because of the debate around debt. Debt is a dirty word. If you have come through the ranks as a young Liberal—

Government senators interjecting—

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

I have tried hard not to interrupt Senator Whish-Wilson. He does have the right to be heard in silence. Please afford him that right.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Thank you, Deputy President, I knew that the chamber would be a lot less rowdy with you in the Deputy President's chair.

Honourable senators interjecting—

I have proven my point. Right around the country, there is a historic opportunity for infrastructure. Why are we sitting on our hands? Why aren't we getting money moving, creating jobs, stimulating aggregate demand, making this country more sustainable and dealing with investment for future generations of Australians? We are talking about long-term projects here. The project to fix the water problems in my state, the $900 million that we need—

Christopher Back (WA, Liberal Party) Share this | Link to this | Hansard source

State issues.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Senator Back, I know you know Tasmania very well. We are talking about fifty-year investments that can be monetised and securitised—these debts can be repaid. But the problem is there is no finance available. The private sector does not want to invest in projects that size. If we bundle these together and government steps up and plays an active role in the lives of Australians, it will be a positive thing. This is what Australians want to see from their leaders in a place like this. They want to see us making decisions. They want to see some vision. They want to see a bit of courage.

Let us deal with the most important part of the response to my question today. Senator Cormann admitted that there is good debt and bad debt. S&P—Standard and Poor's for your interpretation, Senator Williams—said last night that there is such a thing as good debt and bad debt. It is good debt that invests in long-term productive infrastructure. They said this government should be investing in infrastructure now. That was from Standard and Poor's, who determine our credit ratings. The only reason we are not doing that is the political spin and political rhetoric that somehow debt is bad and that in this country there is a massive moral obligation to reduce that debt and deficit. The massive moral obligation we have is to make sure we do not underinvest in future generations of Australians. The Greens will lead on this issue till we see some common sense. (Time expired)

Question agreed to.