Federal Budget 2017: Christopher Pyne claims SA got ‘dudded’ by lack of Weatherill Government project submissions
FEDERAL Minister Christopher Pyne has lashed the State Government for not bothering “to submit a proper business case” for one single project amid anger over lack of infrastructure spending for SA in the Budget.
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THE State Government has not “bothered to submit a proper business case” to seek funding for a single infrastructure project, the state’s most senior politician says.
As a fight erupted over South Australia being “dudded” in this week’s Budget, Federal Minister Christopher Pyne hit back labelling State Labor’s attack “galling”.
The Federal Government announced a $75 billion infrastructure funding and financing package for the next decade but only $3.1 billion was committed for SA projects — prompting Treasurer Tom Koutsantonis to accuse it of “completely ignoring” the state.
But Mr Pyne labelled said: “It’s galling of the Tom Koutsantonis and (SA Infrastructure Minister) Stephen Mullighan to attack the Federal Government for not funding projects when they haven’t even bothered to submit a proper business case to seek funding.
“The truth is the Federal Government is spending $3.1 billion on infrastructure as part of this budget.
“The Federal Government, not the State Labor Government, is driving growth in our economy with the largest single investment in any one state or territory in the history of the Commonwealth — the $89 billion naval shipbuilding program.”
Mr Pyne’s criticism was not first time the Federal Government had blasted the State Government for tardy funding submissions.
In 2014, then Treasurer Joe Hockey told The Advertiser he was frustrated by the State Government’s slowness to propose roads, ports or other infrastructure projects he could support with millions of federal dollars.
“I want SA and Treasurer Tom Koutsantonis to show me the shovel-ready projects,” Mr Hockey said at the time.
The state missed out on funding under Mr Hockey’s $5 billion asset recycling scheme which led to this week’s Budget announcement which reopened the scheme only for SA to deliver $36.6 million for new power infrastructure projects.
SA Infrastructure Minister Stephen Mullighan yesterday listed Oaklands Crossing, remaining upgrades along South Rd and the electrification of the Gawler train line as projects which should have had Federal cash committed.
But a Federal Government spokesman said Infrastructure Australia and the Federal Department of Infrastructure and Regional Development had not received a final business case for any of these projects.
Coalition policy requires infrastructure projects of more than $100 million to be subject to analysis by IA to test cost-effectiveness and financial viability.
IA has not received a business case for the AdeLINK tram network either. But Federal Infrastructure Minister Darren Chester encouraged the State Government to bid for a share of the $10 billion National Rail Program to fund the project.
Yesterday, a plethora of industry groups were angry SA had missed out on any significant infrastructure spending in the Budget.
Civil Contractors Federation of SA chief executive Phil Sutherland accused the Government of “severely short changing SA” on the crucial infrastructure front.
RAA road safety senior manager Charles Mountain said the failure to fund South Rd would cause significant delays to the overall upgrade.
Property Council SA executive director Daniel Gannon, however, said he failed to understand the “widespread anti-SA vitriol” directed at the Federal Government and highlighted $68 million it gave to establish a Proton Beam Therapy Facility.
Senator Nick Xenophon said it was a “pox on both governments”.
“Ultimately SA has been dudded over national infrastructure spending,” he said.
“My philosophy is ‘if you don’t ask, you don’t get’. It is incredibly depressing for the people of SA to miss out and fault appears to lay of the feet of both governments.”
Mr Mullighan said the lack of infrastructure funds was “absolutely unbelievable” and insisted Oaklands Crossing and North-South corridor upgrades and the Gawler line electrification were “shovel ready projects ready to go”.
“A pre-budget submission was provided to the Federal Minister for Urban Infrastructure proposing joint funding for key infrastructure projects in SA,” Mr Mullighan said.
“In contrast, the Turnbull Liberal Government committed $1.2 billion on a rail project in Western Australia which hasn’t had any project assessment or business case developed, and isn’t even on the Infrastructure Australia priority list.”
A Federal Government spokesman said up to $792 million was committed to the $1.2 billion WA rail project but the funding was subject to a positive assessment by IA.
SA Labor Senator Penny Wong said it was very clear that this was a Budget which “duds” South Australia.
“We will never forget in SA Joe Hockey standing up on the floor of the House of Representatives and goading Holdens to leave,” she said.
“We all remember the former Liberal Defence Minister in the Senate saying that the ASC couldn’t build a canoe.
“And now what do we have? We have a Budget which allocates zero dollars to SA for new infrastructure projects.”
State Opposition Leader Steven Marshall said there was plenty in the budget for South Australia, but accused Mr Koutsantonis of being a “whinger in chief” rather than putting the interests of the state first.
He repeatedly dodged questions whether SA got a raw deal when it came to infrastructure funding, but said Commonwealth funding continued to rise despite the State Government’s protestations the State had been ripped off.
“We would always want more here in SA, but I think the Government needs to start looking at it itself,” Mr Marshall said.
“55 per cent of the budget now comes from the Commonwealth, it’s been increasing year on year ... every single year there’s more funding coming in and every year Jay Weatherill and Tom Koutsantonis want more.”