Infrastructure

Given that a competitive, efficient and cost effective transport system is fundamental to the future of Australia’s agriculture and food sector:

a) the interdependence of road and rail transport must be better reflected in decisions affecting the building and maintaining of networks in regional areas

b) the AusLink cooperative agreements between the Australian and state and territory governments must be completed and implemented quickly, and include funding for ports as part of more comprehensive export logistics planning

c) the National Transport Commission should be given powers to enforce uniform and nationally consistent standards, pricing mechanisms and legislative requirements across transport modes, with the aim of minimising regulatory costs to businesses.

Government response

Recomendation 7(a)
Agree in principle.

A key element of AusLink is a defined national land transport network, which includes national and interregional highways, the interstate railway, major urban roads and rail links to ports and airports. Planning for and investing in the development of this national network is the main focus of the Australian Government’s approach to planning and investment decision making in land transport.

The interdependence of road and rail transport is being addressed through the development of long term, multimodal corridor strategies for the AusLink Network, as noted by the Council of Australian Governments (COAG) in the infrastructure planning component of its National Reform Agenda. Corridor strategies are developed jointly with states and territories and will identify transport challenges and infrastructure needs over the next 20 to 25 years.

The Government also provides funding support for local roads under the AusLink Roads to Recovery Programe and for regional road, rail and inter-modal terminal development under the AusLink Strategic Regional Programe.

The 2006 Budget provided an extra $2.4 billion to AusLink and brought the Government’s five year funding total (2004-05 to 2008-09) for road and rail infrastructure to $15 billion. This is a substantial increase on previous funding levels.

Recomendation 7(b)
Agree in part.

AusLink bilateral agreements between governments have been finalised: they clarify the responsibilities for implementing AusLink, set out the projects and funding for the first five year National Land Transport Plan, and outline partnership arrangements for identifying future investment needs and project priorities.

Corridor strategies are the focus of joint Commonwealth–state planning. A key objective in corridor strategies is to identify impediments to efficient and productive freight movement, especially on nationally strategic and export oriented freight corridors, including to and from ports.

Australian Government funding is already provided in the National Land Transport Plan for improving some links to ports and future possible projects will be considered on the same terms as any other.

Regulation and financing of port infrastructure, facilities and shipping channels are the responsibility of state governments, port authorities and private companies operating within ports.

Recomendation 7(c)
Disagree.

The Government recognises the benefit for the business community of uniformity and nationally consistent standards and pricing mechanisms across transport modes.

The Government also supports the National Transport Commission’s (NTC) role in assisting Australian governments to achieve transport regulation and operational reform, with COAG recently confirming the NTC’s key role in the major transport elements of its National Reform Agenda.

NTC is contributing to the development of a reform programe for harmonising and reforming road and rail regulations including higher mass limits, safety regulations and performance based standards. NTC is already progressing elements of this reform package as part of its work programe to the end of 2008 and will provide milestone reports to COAG via the Australian Transport Council.

While the Government supports a move toward greater national consistency in transport regulation and the work of the NTC, it notes that this recomendation would require states to cede powers to the NTC.

The Productivity Commission is currently undertaking a review into road and rail freight infrastructure pricing. The Commission released a discussion draft of its report on 27 September 2006, and is seeking submissions on the draft and will hold public hearings prior to reporting to COAG by the end of 2006.

The review will assist COAG to implement efficient pricing of road and rail freight infrastructure through consistent and competitively neutral pricing regimes, in a manner that optimises efficiency and productivity in the freight transport task and maximises net benefits to the community.