C'wlth asked to detail impact of funding Pacific Hwy reconstruction

23/12/95

Transport Minister Eric Charlton has called on the Federal Government to detail the impact on Western Australia and the other States of its decision to help fund the reconstruction of the Pacific Highway on the east coast.

"The Commonwealth offer to provide $750 million for this project is commended but only if WA is to receive funding of the $50 million shortfall over the next five years to bring National Highways up to the standard set by the Commonwealth," Mr Charlton said.

The Minister said if the Federal Government could find $650 million in additional funds, why not $1 billion to share among all the States for National Highways.  It was a shame that similar assistance had not been forthcoming for other States including WA, which maintained 25 per cent of the National Highway system.

Under the Federal Government's proposed 10-year arrangement, $650 million would be provided through consolidated revenue sources and $100 million from the existing annual pool of Commonwealth road funds which were distributed to all States.

"The $650 million amounts to additional funding from the Commonwealth and is welcomed," Mr Charlton said.

"It is the second funding component that causes me real concern.

"What the Federal Government is proposing is to take $10 million annually from the $834 million that is distributed to all the States for roads. It is a small proportion of revenue raised through Federal fuel excise.

"I have argued for a long time that the national funding pool is much too small and needs to be doubled to be truly effective.

"Through this proposed funding arrangement for the Pacific Highway, the Federal Government will take from the State's $10 million annually for the next 10 years."

Mr Charlton said the Federal Government had an obligation to tell the States what impact that was going to have on their funding over the next decade.

"If the Federal Government shared the loss among the States on a pro-rata basis, WA would have millions of dollars cut from its allocation over the next 10 years, and that is definitely not on," he said.

The Minister said many sections of WA's National Highways were below standard and unsafe, and deserved the same attention the Pacific Highway was now getting.

He said he would write to Federal Transport Minister Laurie Brereton seeking more detail on the Pacific Highway funding proposal and the financial ramifications for WA and the other States.

Media contact: Ian Hasleby 321 7333