Emphasis on infrastructure funding but still short of the mark
Australia's peak motoring organisation, the Australian Automobile Association has tonight welcomed the emphasis on infrastructure spending as part of the Federal Government's 'tough' budget, but is disappointed that fuel excise revenue is still not fully reinvested in land transport.
Other major announcements included additional funding and reform of Infrastructure Australia, the funding of smart infrastructure technologies to reduce congestion and improve traffic demand management and a $20 million investment to help improve the planning and design of the outer suburbs and major regional centres.
"Whilst we are encouraged by the Government's decision to maintain current levels of infrastructure spending in a supposed 'tough' budget, we remain disappointed about the large discrepancy between the amount of money the Federal Government collects in fuel excise and the amount spent on land transport." stated Greg Goodman, Acting Executive Director.
Budget papers released today show the Federal Government in 2011/12 is forecasting to collect $13.48 billion in fuel excise revenue but will only spend $5.6 billion on land transport in the same period. The remaining funds will end up in consolidated revenue.
"It is unfair that motorists are subsidising other areas of the budget" Mr Goodman explained. "Adequate funding in the transport network is critical for Australia's future and the Federal Government needs to reinvest all fuel excise revenue it collects from motorists."