Federal Budget 2017: Australian states to face tests for infrastructure funds
AUSTRALIAN states will face new tests for infrastructure funding as part of a $50 billion plan in the federal budget.
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AUSTRALIAN states will face new tests for infrastructure funding as part of a $50 billion plan in next week’s federal budget.
The Australian reports state leaders will have to prove their motorways and rail networks can raise cash from the private sector and generate a dividend after they are built in return for financial help.
Infrastructure Minister Darren Chester said a user-pays approach was the “fairest way” to help fund new motorways, while increases in property values could help pay for new passenger rail networks.
ANALYSIS: Budget priority will be infrastructure
Mr Chester said: “The list of projects being presented by the states exceeds the commonwealth’s capacity to pay for them and we are keen for more innovative approaches.
“We want to work with the state governments to make sure they are looking at the private sector opportunities and not simply relying on the federal government as a source of grant funding.”
Under the plan, states will have to present stronger business cases for the Cross River Rail commuter network in Queensland, the Perth Metronet in Western Australia, the Adelink tram extension in South Australia and a rail upgrade across Victoria, The Australian reports.
Treasurer Scott Morrison is trying to reshape the debt-and-deficit debate by arguing that “good debt” — spending money on things like roads and bridges instead of humans — can generate economic gain.
This pea-and-thimble accounting trick would be a consequence of the revision of debt definitions proposed by Mr Morrison, Malcolm Farr reports.
The objective is to allow Prime Minister Malcolm Turnbull to present himself as nation-builder with his name on plaques throughout the continent, but not a contributor to overwhelming Budget shortfalls.
Labor infrastructure spokesman Anthony Albanese yesterday warned that that public infrastructure funding was falling below the levels of the past.
“They need to start delivering, not just talking,” Mr Albanese said.
Read more at The Australian.
Originally published as Federal Budget 2017: Australian states to face tests for infrastructure funds
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