New airport will pump billions into other projects and provide thousands of jobs
SCOTT Morrison and Malcolm Turnbull are promising an airport the size of Adelaide’s at Badgerys Creek — and the potential for billions in funding for a Western Sydney airport rail link.
Federal Budget
Don't miss out on the headlines from Federal Budget. Followed categories will be added to My News.
SCOTT Morrison and Malcolm Turnbull are promising an airport the size of Adelaide’s at Badgerys Creek — and the potential for billions in funding for a Western Sydney airport rail link.
But any real action on either will have to wait, with the government allocating little in the four years of the Budget forward estimates to the projects, putting most of their commitments in a 10-year window.
Mr Morrison yesterday pledged a $10 billion National Rail program and said it could be used for such “projects … as Adelink, Brisbane Metro, Tullamarine Rail link, Cross River Rail in Brisbane and the Western Sydney Airport Rail link … subject to a proven business case”.
However, the Budget pap-ers show just $600 million will be allocated in the next four years to the rail program, including nothing in the next two years, and the full commitment will take place over the course of a decade.
The Treasurer yesterday said the delay in allocating the funds was simply a reflection of how long it took to get big rail projects off the ground.
The rail commitment by Mr Morrison and Mr Turnbull is a change from the Abbott government’s attitude where road projects such as the WestConnex and NorthConnex took precedence.
On the Western Sydney airport, the government clarified just how big it envisages its key promise will be.
“The government is making an equity investment of up to $5.3 billion in WSA Co, a new Commonwealth-owned company, to fund the first stage of development of Western Sydney Airport,” the Budget papers say. “Works will commence by late 2018 and airport operations will begin by 2026.
“The terminal will have capacity for 10 million passengers each year — about the current size of Adelaide Airport. The airport is expected to generate around 20,000 direct and indirect jobs in Western Sydney by the early 2030s.”
“Earth moving works will commence on the 1800ha site in the second half of next year and Western Sydney Airport will be delivered in 2026,” Mr Morrison said.
By labelling the investment “equity”, the government is able to not have it on the deficit bottom line, other than interest paid on the debt borrowed to build it. Classifying the project in this way will also open up speculation that after building the airport, the government intends to sell it.
The same “equity” mechanism is used in the government’s commitment for the $8.4 billion Melbourne to Brisbane Inland Rail for freight — a big initiative of the Nationals.
“Work on this 1700km nat-ion-building rail investment will commence in 2017-18 and will support 16,000 direct and indirect fulltime equivalent jobs at the peak of construction,” the Budget papers say.
In tackling the threat from One Nation, the Treasurer committed to a $472 million Regional Growth Fund.
The government will also deliver on an election promise to channel money from existing loan facilities — farm concessional loans and the National Water Infrastructure Loan Facility — into a $4 billion Regional Investment Corporation Fund.
Deputy Premier Barnaby Joyce said it would “deliver critical infrastructure to ensure regional areas do not miss out on Australia’s growth story”.
Mr Morrison said the funding would include $200 million to support a further round of the Building Better Regions program and the fund had been set up because “the productivity commission recently highlighted that some regional areas have been disconnected from our national growth”.
Other projects set to win funds in this year’s Budget include NorthConnex ($50 million in 2017-18), the Pacific Highway upgrade ($710 million next year), the Western Sydney roads upgrades for the second airport ($725 million next year) and Western Sydney Airport preparatory works ($73.2 million next year).
The mix of loans, equity and financing meant the government was “delivering a commitment of $75 billion infrastructure funding and fin-ancing from 2017-18 to 2026-27 for critical airport, road and rail infrastructure projects”, the government said.
Infrastructure ministers Darren Chester and Paul Fletcher described what they were committing to as a “once in a generation, $20 billion commitment to upgrade Australia’s passenger and freight rail, which are critical in connecting people to jobs, and services and goods and markets”.
Originally published as New airport will pump billions into other projects and provide thousands of jobs
‘Responsible’: Chalmers’ big budget hint
While the Treasurer urged “caution and conservatism” over a possible surprise surplus, he has left the door open for further cost-of-living measures.
‘Back on track’: Dutton’s new ad pledge
Opposition Leader Peter Dutton has attempted to show off a softer side to his political personality by debuting a new ad where he promises to get Australia “back on track”.