The
Planning, Funding and Building of our National Infrastructure
Address to
Urban Development Institute of Australia Congress
Melbourne
The business
of government is about maintaining our national security, strengthening our
economy, protecting our environment while still providing a fair go for all.
All these
require long-term planning.
And all
these require policies to be implemented to turn these plans into reality.
Today I
intend to focus on the future drivers of our economy.
As the
former Secretary of the Treasury reminded us the better part of a decade ago,
the three key drivers of the economic future of our nation are population,
participation and productivity.
In other
words, our people, how many of them work and how efficiently they work.
Each is
critical in itself.
Each is
directly related to the other.
And all are
directly related to how we plan, fund and build the infrastructure we will need
for the future.
We are a
nation of 23 million located in an Asian Hemisphere of more than three billion.
One of our
nearest northern neighbours, Indonesia, has a population of a quarter of a
billion and rising.
And as per
capita incomes rise, economies such as Indonesia will in the future dwarf
economies such as Australia.
Australia’s
current birth rate is 1.89 - still less than the replacement rate of 2.05.
Our natural
birth rate has long been offset by our long term orderly migration program.
Successive
generations of migrants from all corners of the world have made Australia much
stronger and richer than we would otherwise have been.
It is worth
pondering for a moment where Australia would be today, in terms of both our
living standards at home, and our standing in the world, had we simply shut the
door after World War II, and had Arthur Calwell not initiated the post-war
immigration boom that transformed the face of modern Australia.
Our
population stagnating at a little more than 8 million people.
Perhaps one
the third of the country’s size today
Whereas
instead we have managed to become the 12th largest economy in the world, a
member of the G20, whose Summit we will host in Australia next year, by far the
most significant international gathering of Heads of Government ever held in
our nation’s history.
Population
policy therefore remains fundamental for the future.
Beyond
population, the second 'P' is of course participation.
Our
workforce participation rate is critical for a number of reasons, both the
aging of the population and our age-dependency ratio both, now and in the
future.
The aging of
Australia’s population is already evident. According to the ABS, the median age
of the population in 2007 was 36.8 years. This is projected to increase to
between 38.7 and 40.7 by 2026 and upwards again to between 41.9 years and 45.2
years by 2056.
Medical
science is thankfully allowing us all to live longer.
But changes
in our age-dependency ratio also represent real causes for concern.
It was 5:1
in 2010.
It is
projected to be 2.7:1 by 2050.
At the same
time our workforce participation rate has improved in recent year but more will
need to be done to sustain improvements in the future.
The
2002/2003 Intergenerational Report puts the workforce participation rate for
2000/2001 at 64 per cent.
By the 2007
Intergenerational Report, this had increased to 64.5 per cent in 2005/2006.
As of
January 2013, the latest ABS data puts the workforce participation rate today
at 65 per cent.
But
according to the 2010 Intergenerational Report, by 2050 it is projected to
slide back to 60.6 per cent.
This brings
into stark relief a core fiscal policy challenge of our time: how to fund the
long term needs of our medical system and other related social outlays with a
relatively smaller number of people in the workforce paying the taxes necessary
to fund them.
Government
policy must therefore aim to encourage more people into the workforce, to
re-enter the workforce, and to remain there for longer if that is their wish.
That's why
the Government has undertaken record investments in apprenticeships,
traineeships and university places to make our young people as work-ready as
possible.
That's why
we've increased the childcare rebate from 30-50 per cent.
That's why
we've introduced Australia's first paid parental leave scheme.
That's why
we took the controversial decision of increasing the pension age to 67.
And that’s
also why we have begun reform of the health system to invest more in chronic
disease prevention and primary health care in the community, in order to reduce
the exploding demand for acute hospital-based interventions, which at present
take up the lion’s share of the nation’s health budget.
Still, more
needs to be done.
But six
months before an election, I've yet to see any policy from the alternative
government of Australia, other than a plan to impose a new 1.5 per cent tax on
Australian business to fund Mr Abbott’s version of paid parental leave, a cost
that will of course be passed on to consumers.
Then there
is the third "P" - productivity - which will also shape much of our
economic future.
According to
Australian Bureau of Statics, labour productivity growth at the end of the
Howard Government had fallen to 1.1 per cent
It now
stands at 2.7 per cent
There are
many drivers of productivity growth including labour market flexibility; skills
formation and capital intensity.
Again, the
Government has been active on multiple policy fronts.
The purpose
of the education revolution has been to create in Australia the best educated,
best skilled, best trained workforce in the world.
Let us never
forget, Australia is the sum of its people, their values and their talents -
not the sum of the rocks that lie in the ground.
That's why
the Australian Government increased our total national investment in education
by a record $13.6 billion this financial year, on top of the $65 billion we’ve
invested over the last four years.
This
includes for the first time pre-literacy and pre-numeracy education for all
preschoolers.
This
includes building 3000 new 21st Century libraries and 3000 state of the art
classrooms (mainly with interactive whiteboards) over our 7500 primary schools
since 2009.
That's also
why we have built 370 new state of the art trades training centres to service
our secondary schools and the vast array of trades we will need for the future.
That's why
we have introduced Australia's first new national curriculum to ensure proper
standards and to not punish the tens of thousands of kids who move interstate
each year.
That's why
we now have the first standardised literacy and numeracy testing, across the
entire Australian school system, primary and secondary, so that parents and the
community know how their kids and their schools are performing, and so that
necessary interventions can occur early enough to make a difference.
That’s why
we’ve installed more than a million computers in schools for all year 9 and
above students, so that all kids have equitable access to the digital
revolution sweeping across all workplaces.
We've also
invested in 50,000 more university places.
That's also
why we've undertaken record capital investments across our 43 universities and
research institutions.
Our plan has
been to produce more and more young people completing year 12 equivalent, with
greater and greater skills, to enhance the productivity of our future
workforce.
Capital
intensity also drives productivity growth.
That's why
the Government has undertaken the single biggest capital investment program in
the country's history in the NBN to turbo charge productivity growth for the
future by providing businesses with new technology platforms to source cheaper
inputs and to find new markets.
The
Government has had a clear policy plan and a record of policy achievement in
investing in productivity growth – both in the skills and technology enablers.
But once
again, six months before an election, I've yet to hear the policy plans of the
alternative government, on the productivity challenge facing the nation - other
than opposing practically all the measures I’ve just referred to, and other
than a commitment to repeal the Fair Work Act.
Properly
co-ordinated and properly implemented, these productivity-enhancing measures
will shape our future.
Our success
in all three economic drivers – population, participation and productivity -
will in turn be shaped by a number of factors.
One major
factor will be our national infrastructure planning, its funding and
implementation for the future.
All our
regions, rural and urban, remote and metropolitan are important.
Today I want
to address in particular the longer term infrastructure needs of our cities.
Three
quarters of all Australians live in our 18 largest cities.
And four
fifths of our GDP is generated in our major cities.
Our cities
(both CBDs, inner-suburbia and outer-suburbia) play a powerful role in enabling
(or disabling) population growth, enhancing workforce participation and maximising
our national productivity.
I have had
the pleasure of living in three of Australia's great cities – Brisbane, Sydney
and Canberra; and my wife, Therese, beats me by having lived in four -
Adelaide, Melbourne, Canberra and Brisbane.
I am not,
however, "from the city".
Like many
Australians, I grew up in a country town of a couple of hundred people.
We later
moved to a regional centre of about 10,000 people.
And then I
ended up in the big smoke.
This has
been a story happening all over Australia for decades now.
And that is
why it is entirely appropriate that the Prime Minister and the Cabinet spends
time this week examining the infrastructure needs of our biggest city – Sydney.
And that is
why all our cities including Melbourne have been the focus of Australian
Government policy as reflected in the last two editions of the Government's
State of Australian Cities report released by Infrastructure Minister Albanese.
This report
tells us what those in this room already know:
The
expectations from those of us who live and work in our major cities for public
infrastructure is increasing.
This
requires detailed collaborative planning.
This also
requires creative, flexible approaches to infrastructure funding given the
enduring constraints on public finance and these challenges are reinforced by
the continuing challenge of climate change - not just carbon emissions, but
also with the projected doubling of the number of high and extreme fire risk
days by 2050.
Then there
are the challenges of our outer suburbs.
The outer
suburbs are home to 3.6 million Australians.
The outer
suburbs also represent the best of aspirational Australia. It is where new
migrants have made Australia their home, where young people go to start their
families, and where many Australians start their first steps of home ownership.
It won’t
surprise you that the State of Our Cities report states that the outer suburbs
can be transport-poor making it harder to get to work in the major employment
hubs.
It is also where
many of our small businesses are based – and one of the reasons that the NBN is
such a vital leveler for the Australian economy.
Infrastructure
planning and delivery has been a core priority of this Australian Government
from the beginning.
That's why
one of the government's most senior Ministers, Anthony Albanese, the Leader of
the House, was appointed Minister for Infrastructure from the beginning.
This is the
first such portfolio appointment in the history of the Commonwealth.
We also
created Infrastructure Australia (chaired by Rod Eddington from here in
Melbourne) in order to draw up, again for the first time in the Commonwealth's
history, a national infrastructure priority list.
Furthermore,
the Commonwealth committed to funding every single one of the projects
identified on the 2009 priority list.
We have
funded a $36 Billion Nation Building Program that is not only addressing vital
infrastructure gaps but also helped keep our economy afloat during the Global
Financial Crisis.
We have also
created the Council of Australian Local Government and committed to working
with local government to advance constitutional recognition for the third tier
of government
We have
allocated nearly $1 billion to the Regional Australia Development Fund to
support the infrastructure needs of regional Australia.
And the
record of our investment in national infrastructure over the last five years
has been formidable.
Transport
We the
Australian Government have invested more in urban public transport since 2007
than the Howard, Keating, Hawke and Fraser Government's combined.
In fact we
have invested more in public transport infrastructure than all federal
governments combined since 1901.
If you look
around the country, state by state, the results of these investments are
slowing changing the face of Australia.
Considering
where we are, it seems only fitting that we start this national tour of
infrastructure in Victoria.
Through the
National Building program we have invested a record $6.8 billion in Victorian
infrastructure – $927.8 million this year.
If you break
that down, that’s $201 per Victorian – more than double the $89 per person it
was before our Government came to office.
Victoria is
currently home to Australia’s biggest public transport infrastructure project –
the Regional Rail Link.
The Federal
Government has contributed $3.225 billion to this project that will connect
West Werribee to Southern Cross Station.
I recall
when I launched this project with then Premier Brumby at Southern Cross Station
that this was the first major addition to the metropolitan rail network in more
than half a century.
Heading
north to New South Wales, federal infrastructure spending has again more than
doubled from $132 per person to $265 per person.
If you add
that all up, it has $11.6 billion invested through the Nation Building Program
in NSW.
The
Australian Government has contributed $618 million to the construction of the
Pacific Highway Kempsey Bypass - which will include Australia’s longest bridge
at 3.2km.
Last year I
had the pleasure of visiting Justine Elliot in her electorate of Richmond up in
Northern NSW. There we invested $347 million in the Sexton Hill road upgrade.
This is all
part of our national commitment to create a dual carriageway Pacific Highway
all the way from Sydney to Brisbane just like that which already exists between
Sydney and Melbourne along the Hume.
In my home
state, Queensland, the Australian Government has invested $8.7 billion in
infrastructure in the Sunshine State, yet again more than doubling our
investment from $143 to $314 per person.
This
financial year will see the completion of the Cooroy to Curra Section B
duplication and upgrade of the Bruce Highway - made possible because of an
investment of $388 million for the Australian Government.
Closer to
home, well closer to my home, the new Moreton Bay Rail Link between Petrie and
Kippa-Ring received an Australian Government contribution of $742 million
funding.
We're
investing $365 million in the Gold Coast Rapid Transit Network project which is
essential to de-congest the Gold Coast CBD.
Heading
West, we have yet again we have boosted our infrastructure investment per
person from $154 to $261- totalling $3.7 billion.
This
includes $224 million in widening the Great Eastern Highway between Kooyong
Road and the Tonkin Highway and another $236 million towards the Perth City
Link – a project undergrounding city rail lines and constructing new rail
platforms to connect Perth’s CBD and Northbridge.
Heading to
South Australia - I spent yesterday with the formidable local member Tony
Zappia out in the electorate of Makin.
Tony, his
constituents and the good citizens of South Australia have received an increase
of $164 in infrastructure funding per person – that adds up to a total
investments of $2.7 billion through the Nation Building Program.
This has
resulted in projects such as the new South Road Superway possible because of a
$406 million Australian Government contribution and the extension of the
Noarlunga railway line to Seaford thanks to a $291.2 million federal government
investment.
Then on to
the Apple Isle – Tassie has received $808 million in infrastructure funding -
$89.8 million this financial year.
The Brighton
Bypass opened in November 2012 having received $186.2 million in Australian
Government funding.
The
replacement of sleepers, rail and ballasts along key section of the Main
North-South Rail was also possible due to a $55.6 million Australian Government
contribution.
To our
friends in the Territory, the Nation Building Program has invested $636 million
- $100.7 million this financial year.
In an effort
to provide better, all-weather access for local miners, cattlemen and tourists,
we’ve invested $63 million to strengthen and widen sections of the Stuart,
Victoria and Barkley Highways and another $40 million to strengthen and widen
sections of the Central Arnhem Road.
Beyond these
major road and rail construction projects, there has also been unprecedented
investment in road and rail freight infrastructure as well around the nation in
order to reduce infrastructure bottlenecks.
Australian
productivity is reliant on our ability to successfully transport our goods.
With this in
mind, the Government is committed to investing $7.4 billion by 2014 to improve
and expand Australia's passenger and freight rail networks.
Such
infrastructure is not only important for improving our national productivity
but in reducing the impact of traffic congestion and tackling climate change.
An important
element of our investment in our passenger and freight rail infrastructure is
the landmark Moorebank Intermodal. Intended to relieve growing infrastructure
pressures around Port Botany and the M5 motorway, once fully functional, it
will remove 1.2 million trucks each year from Sydney's roads generate $10
billion in economic benefits
Social
infrastructure
The
Australian Government’s record investment through the Nation Building Program
is literally changing the face of Australia. But the Government has also
matched this with unprecedented levels of investment in social infrastructure.
I have
already mentioned the record investment in education that has seen 23,610
projects, which have transformed 9484 schools thanks to an Australian Government
investment of $16.2 billion.
For our
health system with $711m invested in primary care infrastructure including more
than 60 GP Super Clinics and 429 primary infrastructure grants for new and
improved primary care facilities across Australia.
For local
communities with new sports centres, community spaces and libraries with $1.12
billion for the Regional and Local Community Infrastructure program funding
more than 6,200 projects – of which only 27 are still to be completed.
NBN
In addition
to traditional economic and social infrastructure, this government is also
investing in the National Broadband Network.
Because we
are a digital nation of 12 million internet subscribers -
with
continuing annual growth of 10%.
As of today
only four per cent of Australian internet connections are dialup.
The NBN aims
to make many current internet speeds feel in the future like dialup does to us
today.
We have 2.9
million businesses online.
The digital
economy is estimated in a report by the Department of Broadband, Communications
and the Digital Economy to be worth 3.3 per cent of GDP – but we are currently
behind the average of 4.3 per cent of industrialised economies and they are
continuing to grow faster than we are.
It is also
estimated that the NBN could add 1.7 per cent to our long-term average
productivity growth by 2020.
Therefore
the NBN is needed to bring us up to speed.
Imagine the
landscape of Australian small businesses if all businesses had the type of
access that meant they could have a profitable and productive internet
presence. It would revolutionise the way Australians conducted businesses by
giving our small and large businesses a level playing field in access to cloud
computing and access to clients.
The NBN will
bring about another education revolution in regional areas with access to
content and resources for eLearning.
It will also
transform the way our schools interact with their students, their families,
nearby schools and schools on the other side of the world.
The NBN will
make the government's investments in tele-health and personally controlled
electronic health records pay real dividends in improved patient outcomes.
I also
believe that we have failed to recognise the NBN’s potential in our tourism
sector.
Being able
to send high-resolution video and photos to potential visitors, for visitors to
eyeball a tourism operator in full HD before signing up for an experience, and
of course to make sure that the speeds they get in their hotel room are second
to none.
This is just
one example of how the NBN transformation of Australia is yet to unfold.
That’s
before we get to the NBN’s impact on telecommuting as more and more business
operations will be able to be conducted either from home or from outer suburban
centres in turn helping over time to decongest our road networks.
The
transformation of the NBN to the possibilities of the future is like giving
someone from 1995 an iPad - the leap forward once we have the whole nation
fully wired will be mind blowing.
We have done
all of this in economic, social and digital infrastructure because we are not
interested in the blame game between the feds and the states.
Historically
the federal conservatives have washed their hands of their investment
responsibilities in both our national economic and social infrastructure.
Beyond
episodic investments in the national highway network, the national
infrastructure spend prior to 2007 was marginal.
Even the
spend on the national highway network was marginal.
Historically,
the Australian government simply preferred to blame the states for the national
infrastructure deficit.
And because
the states were so cash strapped, the result was that the national
infrastructure gap simply got bigger and bigger.
By contrast,
this Australian government is now a major partner with both state and local
governments on state and local infrastructure planning and investment.
In other
words - you are either real about this stuff – as we are – or you can let the
nation’s infrastructure fall behind, fall into disrepair, and eventually fall
apart and take the economy down with it.
And we don’t
intend to allow that to happen.
We have
increased spending on roads and bridges by 23 per cent.
We increased
spending on railways by 103 per cent.
And we
increased spending on ports by 156 per cent.
Overall –
Australia is investing $15.3 billion per year more than was spent in 2006.
In other
words, we, the Australian Government are now helping shoulder the national
burden.
Again we are
six months out from an election.
We have
heard nothing from the alternative government of Australia about its plans to
tackle the national infrastructure deficit.
Other than
in the case of the NBN where Mr Abbott has committed to simply rip it up,
possibly lay out fibre optic to the node if you happen to live in the right
place, not to all premises as we plan, thereby leaving the problem once again
for someone else to fix.
Broadband as
a technology has been around for a long time.
Over twelve
years in office, there was something like 12 Coalition plans to roll out
broadband across Australia.
They all
failed.
And Mr
Abbott's plan for the future appears to be the same again.
This will
render our major cities and our regional centres absolute economic backwaters
compared to the rest of the world, which is heading in exactly the reverse
direction.
Conclusion
A thriving
population needs hospitals, schools, viable tertiary education options and to
be active members of the digital revolution.
To participate
effectively, we need a smart population that have had access to the excellent
education opportunities.
And
increasing productivity requires infrastructure – people and goods and services
need to be able to get from A to B, they need to be connected, and they need to
be able to get to the future jobs – be they online or in our suburbs.
I am an
optimist for the future of Australia.
I believe we
can address our challenges in infrastructure – and we can market our expertise
to the world – especially here in the Asian hemisphere.
And I
believe that our government’s infrastructure plans have set the country back on
the right track when it comes to preparing our country and our economy for the
21st century.
Ode to Kevin Rudd
ReplyDeleteyou do not love your country
you do not love your party
you only love yourself
remaining in your seat has proved this
you have robbed us of the joy of having
for the very first time -feminine governance
please go flee , change your career from active politicing
this is your last chance to do the decent thing
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working secretly for tonyrabbit

The very wealthy are buffered from the problems of over population. I'm only optimistic about our future if humanity can stop our out of control breeding. Our air quality is getting worse, our oceans are acidifying, our forests are being logged, our native animals are becoming endangered, our ecosystem is being destroyed, our weather is changing. We can't help what other countries do to a large extent but we can show the way here. If we talk about our quality of life rather than the endless growth ponzi scheme we are so set on we might forestall some of the worst challenges of the future. Australia is a very fragile country which we need to protect, not continually exploit until our own quality of life is destroyed.
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