Budget 2017: Inland rail funding of $8.4 billion promised

BUDGET 2017: INLAND rail will finally get the kickstart it needs with the Federal Government promising a whopping $8.4 billion for the landmark project.

Rare opportunity: Inland rail is a “once-in-a-generation project”, Infrastructure and Transport Minister Darren Chester says.

BUDGET 2017: INLAND rail will finally get the kick-start it needs with the Federal Government promising a whopping $8.4 billion for the landmark project.

The long sought-after “Steel Mississippi” is the centrepiece of the Government’s regional spending in last night’s Budget, which also sees almost half a billion dollars extra for regional development projects.

Another $500 million has been set aside for regional rail upgrades in Victoria out of a $1 billion infrastructure fund for the state — short of the $1.46 billion the Victorian Government has demanded.

The ambitious Melbourne-Brisbane inland rail is now the closest it has been to becoming reality, after first being touted in 1998 and pursued by governments for almost 20 years.

The investment — more than three-quarters of the estimated $10 billion project cost — will be welcomed by Australia’s farmers, who have long rallied for the rail line and argued it is needed for agriculture to become a $100 billion industry by 2030.

The 1700km track will be delivered by the Australian Rail Track Corporation by 2024, with the private sector chipping in the remaining cash.

READ MORE: HOW INLAND RAIL IS TO BE FUNDED

WHAT’S IN BUDGET 2017 FOR REGIONAL AUSTRALIA: AT A GLANCE

— $8.4 billion for inland rail

— $500 million for Victorian regional rail including: $195 million for Gippsland line; $100 million for the North-East line; $100 million for Geelong line: $95 million to upgrade Avon River Bridge, Stratford; $30 million for study for Shepparton upgrade

— $10 billion national rail program, including cash to improve connections between regional centres and capital cities

— $4 billion Regional Investment Corporation, to administer concessional loans for farmers and water infrastructure concessional loans

— $200 million extra for Building Better Regions Fund (total pool now $500 million)

— $272 million for new regional growth projects

— Local government financial assistance grants indexation resumed, extra $836 million over four years

— Roads to Recovery and road blackspot program locked in until 2021

WHAT’S MISSING

— No new funding for mobile blackspots

Infrastructure and Transport Minister Darren Chester said inland rail was a “once-in-a-generation project” that would create thousands of jobs during construction.

“The Coalition is getting on with the job of delivering the biggest rail project in the past 100 years,” Mr Chester said.

“This is the type of critical infrastructure that our kids and grandkids will thank us for.”

EDITORIAL: INLAND RAIL GETS CLOSER

The funding is part of $75 billion promised for infrastructure nationwide over the next decade, including another $10 billion for a national rail program.

Another $20 million will go toward businesses cases for developing faster and more reliable train connections between regional centres and capital cities. There is also an extra $20.2 million for the Murray Basin Rail upgrade.

Victoria will get $1 billion for infrastructure in lieu of the cash sought under the now-expired asset recycling program for the sale of the Port of Melbourne — the subject of an ongoing battle between the State and Federal governments.

The Federal Government has allocated $195 million to the Gippsland line; $100 million to the North East line; $100 million to the Geelong line; $95 million to replace the Avon River Bridge at Stratford; and $10 million for a study into better connections on the Shepparton line.

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The allocation of the remaining $500 million will be negotiated with the Victorian Government.

It’s likely to further the feud, after Victoria went ahead and allocated the full $1.46 billion it argues it is entitled to for selling the port, to its own Regional Rail Revival in its Budget last week.

In an opinion piece in The Weekly Times, Mr Chester has challenged Premier Daniel Andrews to do a deal over how the cash is spent.

“We should set a deadline of July 1 to get a deal done and stop the public slanging match,” he said. “Neither Government may get everything they want — but Victorians will certainly benefit.

“They will see a couple of ministers from opposite sides of the political divide behaving like grown ups and doing their jobs.”

READ MORE: LET’S DO A DEAL ON REGIONAL RAIL

The Federal Government is also adding another $200 million to the Building Better Regions Fund — which is aimed solely at regional, rural and remote Australia — taking that pool from $297 million to almost $500 million over four years.

Another $272 million fund will be established for “major transformational projects” worth more than $10 million, in regional areas.

The Stronger Communities Fund, which provides cash for small projects in every electorate and was due to run out this year, will continue for another year.

Other initiatives include:

A $4 BILLION Regional Investment Corporation, to administer concessional loans federally.

THE resumption of indexation of local council financial aid grants, providing an extra $836.5 million over four years.

THE continuation of Roads to Recovery and the roads blackspot program until 2021.

There is no extra funding for mobile blackspots.