Warning about national transport infrastructure crisis

14/11/95

Western Australian Transport Minister Eric Charlton warned today that Australia was in the midst of a transport infrastructure crisis at a time when other countries were actively addressing the problem.

Mr Charlton said a co-operative effort from all levels of government in the nation was required to overcome Australia's annual $2.2 billion road funding shortfall.

The giant funding gap, identified in a recent road funding options study, was hindering economic growth and Australia's competitiveness abroad.

In Western Australia, which accounted for 25 per cent of the nation's exports and 47 per cent of gross export tonnage, $10 billion in mining development had recently commenced or was committed, and a further $12.2 billion worth of investment was under investigation.

"Much of this mining investment is in remote areas and unless there is suitable transport infrastructure, this significant growth will be stymied, or the cost of transporting product to port will be high enough to affect our export competitiveness," Mr Charlton said.

"The sheer magnitude of this funding gap should be of extreme concern to all governments in Australia and the solution can only be found by working together."

The Minister said countries around the world had neglected transport investment for the past 20 years, but that many were now waking up and rectifying the situation.

For instance:

·       the United States was investing $151 billion in roads over the next five years (an increase of 69 per cent);

·       France was spending $120 billion on roads over the same period (up 42 per cent); and -

·       Germany had begun a $500 billion expansion program over the next 20 years (a 100 per cent increase in investment).

In Asia, Japan, Singapore, Hong Kong, Taiwan and China had all embarked on huge road expansion programs.

"The rest of the world has found it necessary to increase its competitive edge through improved transport infrastructure, yet Australia lags behind," Mr Charlton said.

"The warnings are there.  If the matter is not addressed it will have serious repercussions for industry, Australia's international competitiveness and our way of life over the next decade."

The Minister said there was widespread support in the community for the principle of dedicated road funding.  An appropriate response to this message was to ensure a fixed and identifiable proportion of fuel revenue for roads.

"A fixed proportion of the Federal fuel excise should be dedicated to roads and doubled from its present level of about seven cents a litre of road fuel to 14 cents per litre," he said.

"Alternatively, some other formula must be devised to ensure adequate levels of road funding to the States."

Mr Charlton warned that failure to act would hamper regional and remote development, population and tourism growth and freight transport.  Inaction would also have dire consequences for the environment through increased traffic congestion and road safety.

The road options study, commissioned by the Australian Transport Council Standing Committee on Transport, showed that the nation's current level of investment in road infrastructure was $5.2 billion per annum. However, it was 40 per cent, or $2.2 billion per annum below what was required.

"We have identified important road infrastructure projects worth more than $2 billion per annum that will remain unfunded over the next decade unless, as a nation, we lift our present level of investment in this area," the Minister said.

Mr Charlton said the issue was such an important component of structural reform that Australia could not afford to ignore it, or get it wrong, and the responsibility rested with all levels of government.

Media contact: Ian Hasleby 321 7333