Budget 2020: For transport, all roads lead to jobs

The Morrison government will ­inject an extra $10bn into transport infrastructure over the next decade.

Deputy Prime Minister Michael McCormack unveiled a $7.5bn road-and-rail package earlier in the week. Picture: NCA NewsWire/Gary Ramage

The Morrison government will ­inject an extra $10bn into transport infrastructure over the next decade, targeting safety improvements and road and rail upgrades in a bid to get boots on the ground quickly during the COVID-19 ­recession.

Tuesday’s federal budget dedicated $2bn over two years to ­deliver small-scale road safety projects that will provide “short-term economic stimulus”, after Deputy Prime Minister Michael McCormack unveiled a $7.5bn road-and-rail package earlier in the week.

The new funding takes the ­Coalition’s 10-year infrastructure plan to a record $110bn, up from $100bn last year.

Roads that require widening and new centre lines and barriers will be identified by the states and worked on in three six-month ­periods, with commonwealth funding contingent on a “use it or lose it” basis.

Josh Frydenberg said there had been $14bn in new and accelerated infrastructure projects announced since the start of the COVID-19 crisis supporting 40,000 jobs, ­although The Australian understands some of that money was brought forward from the existing infrastructure plan.

“Rebuilding our economy includes building more roads, rail and bridges,” the Treasurer said.

“If a state drags its feet (on road safety upgrades), another state will get the money. We need works to start, not stall.”

Another $1bn will be provided over two years to extend the local roads and community infrastructure program to support local councils to maintain and deliver social infrastructure, improve road safety and bolster the resilience of Australia’s roads.

Mr McCormack, who is also Transport and Infrastructure Minister, said the road safety ­investment and money for local councils would create about 10,000 jobs over the life of the ­projects.

“The pandemic has hit Australia everywhere and every region needs support. Local councils understand the immediate needs in their communities. Our community-led recovery plan empowers local governments nationwide to deliver roads and community infrastructure. This will build shovel-ready local priorities, supporting local jobs and local business,” Mr McCormack said.

“The government is focused on delivering priorities for local areas as part of Australia’s road to recovery. Our investments will draw on local businesses to stimulate local economies.”

Of the $7.5bn transport infrastructure projects to be rolled out in every state and territory, 82 are new and 33 are existing.

Infrastructure Australia estimates there are 30 projects that will require more than $100m in commonwealth funding, with more than half of those on its ­infrastructure priority list.

Australian Constructors ­Association chief executive Jon Davies said there was already a fairly significant pipeline of work on roads and bridges, and the scope for projects needed to be broader, including building hospitals and schools.

He called on the Morrison government to work closely with industry to lead a reform agenda in the construction industry, saying the country could build more for less with the right leadership.

“In certain jurisdictions there’s a lack of shovel-ready projects,” Mr Davies said of the government’s $7.5bn transport package.

“The definition of a shovel-ready project seems to be changed to something that is essentially at concept design phase. The Coomera Connector (in Queensland) is a significant project on the project list (but) they’re still in community consultation phase.”

With the next national road safety strategy for 2021-2030 still to be announced, a $5.5m road safety hub will be established to assess the effectiveness of measures by all levels of governments as the country attempts to reach a target of zero fatalities and serious injuries by 2050.

Road crashes are estimated to cost the national economy about $30bn a year.