Federal budget 2020: Infrastructure and regional development highlights

A $2 billion loan program championed by Barnaby Joyce when he was agriculture minister has been axed — without a single loan being approved. Here’s what has happened to it, plus other federal budget highlights.

$2 billion loan program championed by Barnaby Joyce in 2016 has been canned. Picture: Dan Himbrechts/AAP

THE Federal Government is axing a $2 billion loan program after it made zero loans in the three years it was operating.

The National Water Infrastructure Loan Facility — which was the centrepiece of the agriculture portfolio’s 2016 budget, by then ag Minister Barnaby Joyce — will be scrapped, and the funds transferred to the National Water Infrastructure Development Fund.

And the budget papers reveal another Nationals’ pet project, the $10 billion inland rail, will be in need of extra funding.

Meanwhile, funding has been extended for local roads and community buildings, as popular infrastructure programs are extended for another year.

WATER INFRASTRUCTURE

The Federal Government is putting another $2 billion into the National Water Infrastructure Development Fund, taking that total spend to $3.5 billion.

However, budget papers revealed the Government “will not proceed with the National Water Infrastructure Loan Facility”.

Exactly $2 billion was allocated to that concessional loan scheme in 2016, and opened to applications in 2017.

State governments were able to apply for cheap loans to build water infrastructure, paying back the Commonwealth at low interest rates.

A department official confirmed the full $2 billion would be transferred from the loans program to the infrastructure fund, and that not loans had been made.

The infrastructure fund requires state governments to apply and co-contribute to the cost of building new dams and irrigation networks.

INLAND RAIL

THE crowning glory of the 2017 budget for agriculture and regional Australia has made a mysterious reappearance in this year’s papers.

The Government will make an extra equity investment in the Australian Rail Track Corporation “primarily to deliver the inland rail project”.

No further details are provided, with the Government citing commercial sensitivities.

However, a department official confirmed the project would be receiving additional funding from the budget, and that it would be on top of the existing funding.

Asked if the project was running over budget, the official said the Government would be announcing more detail in due course.

REGIONAL DEVELOPMENT

A tranche of new spending for roads will community infrastructure will make local councils happy including:

● $2 billion for small scale road safety projects;

● $1 billion for the local roads and community infrastructure program;

● $400 million for Roads to Recovery;

● $60 million for the bridges renewal program; and

● $60 million for the black spot program.

The Stronger Communities Program — which provides funding to each electorate for capital projects between $2500 and $20,000 — has been extended for two years with $28.1 million.

That’s on top of the previously announced $200 million extension of the Building Better Regions Fund and $50 million Recovery for Regional Tourism fund, which will targets tourism-dependent regions struggling in the wake of coronavirus international travel shutdowns.

A further $100 million was also announced last week for 10 regions hit by drought, bushfire and COVID-19, including Gippsland, Tasmania, the Hunter Region, Kangaroo Island and the Mackay-Whitsunday regions.

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