Federal Budget: long on promises, short on funds

Treasurer Curtis Pitt says tonight’s Federal Budget is full of promises but few firm funding commitments for projects to generate jobs in Queensland.

“Scott Morrison’s second Budget appears to offer support to major projects we need to get off the ground, but closer inspection shows many are an illusion and are not backed by specific funding,” Mr Pitt said.

“Scott Morrison is writing undated cheques with no figures filled in.

“Instead of solid funding commitments we repeatedly see a plan for a plan.

“A new Infrastructure and Projects Financing Agency has been funded only to identify, develop and assess financing options for major projects, not to actually fund any.

“There is no funding for our top-priority infrastructure project — Cross River Rail.

“There is just a promise to establish a $10 billion National Rail Program to deliver rail projects subject to business cases.

“We have no firm funding commitment for Cross River Rail despite the Turnbull Government already having our business case.

“In addition the new $10 billion National Rail Program has only $600 million allocated — and not until 2019-20 and 2020-21.

“The Budget says projects such as Cross River Rail and the Lord Mayor’s Brisbane Metro could potentially be supported through the program subject to a proven business case.

“The Budget also mentions a list of other potential multi-billion-dollar projects such as Adelink, Tullamarine Rail Link, and the Western Sydney Airport Rail Link, so it seems we will need to fight off projects in other states to get even a small share of the new funds.

“Yet again other states get direct funding injections but Queensland has to jump through hoops.

“Even though they have had our Cross River Rail business case for nearly a year it seems the Turnbull Government is incapable of making a decision.”

Mr Pitt said the Federal Budget failed to deliver funding certainty on a range of federal-state national partnership agreements.

“Rather than being renewed the National Partnership on Skills Reform has been replaced with a new National Partnership for the Skilling Australians Fund,” he said. 

“We understand spending under the new fund will be prioritised towards apprenticeships and traineeships. 

“But the new arrangement will be funded by a levy on businesses employing foreign workers, so actual funding to the states will depend on that revenue and states will also be required to match federal funding. 

“Based on the Budget Papers, in 2017-18 we will receive $40 million less than this year when it comes to skills funding. 

“Unfortunately there is no commitment for additional funding beyond 2018 for Universal Access to Early Childhood Education which will disappoint many families, and no additional funding for Remote Indigenous Housing beyond 2017-18.

“A promise of $90 million over four years to promote gas supply specifically includes funding for studies on two potential gas pipelines to South Australia but nothing for Queensland, even though we stand ready to help fix the problems in the national energy market,” Mr Pitt said.

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