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Media release

Budget shows infrastructure delivery back on track

11.5.2021

The nation’s peak motoring body says tonight’s Federal Budget shows the Commonwealth has invested more in the nation’s roads than promised; and is on track to deliver a further $8.2 billion road investment in 2021/22.

The nation’s peak motoring body says tonight’s Federal Budget shows the Commonwealth has invested more in the nation’s roads than promised; and is on track to deliver a further $8.2 billion road investment in 2021/22.

The Australian Automobile Association (AAA) said it was pleasing to see the recent trend of Budget infrastructure underspends corrected by the concerted effort of Commonwealth and state governments to use infrastructure spending as economic stimulus.

(Media note: summary of budget allocation versus actual expenditure at end of release)

The AAA’s Managing Director, Michael Bradley, said the Federal Government had delivered on its commitment to fast-track road funding by removing roadblocks and identifying shovel-ready projects that would save lives as well as jobs during the COVID-19 pandemic.

“Last October the Government committed to invest $7.38 billion throughout 2020/21 on road infrastructure and tonight’s Budget shows this target will be surpassed with an investment of $7.77 billion by the end of this financial year, and a further $8.2 billion in the year ahead.

“Now that this standard of delivery has been set, motorists will expect the Government to deliver in full on its road funding commitments in the year ahead,” Mr Bradley said.

The AAA has long fought for governments to remove the roadblocks slowing the recent flow of promised road funds; and include incentives such as the ‘use it or lose it’ provisions included in last October’s infrastructure package.

These reforms appear to be delivering benefits however the AAA is concerned by the Budget’s lack of clarity regarding any long-term commitments to the Road Safety Program funding.

The budget papers make it clear that over the longer term, from 2021/22 to 2024/25, they are predicting a “decrease of 9.7% in real terms” in road transport.

While the AAA has welcomed the additional $1 billion for the Road Safety Program that will be allocated in 2022/23, it has serious concerns that the budget papers state the longer-term decrease in funding “reflects the completion of stimulus initiatives including the $3 billion Road Safety Program.”

The AAA said no government should view road safety through the prism of economic stimulus.

Notwithstanding the huge human, economic and social impact of Covid, more people died on our roads throughout the past year.

“No Australian wants their government to say its interest in road safety is only pegged to economic returns,” Mr Bradley said. “Saving each of those lives is equally important and should have the laser focus of government.”

In the 12 months from April 2020 to March 2021, there were 889 deaths from COVID-19 in Australia and 1,127 road deaths for the same period.

Mr Bradley said it was not apparent from the Budget papers that state and territory government were honoring the Road Safety Program requirements to report data to the Commonwealth in return for funding.

“This will be critical to Commonwealth efforts to take a leadership role on road safety through its recently established Office of Road Safety,” he said.

 

 

 

 

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