Google AI

Weekend Times


The Times

Business News

As federal government spending on small transport projects creeps up, marginal seats get a bigger share

  • Written by: Marion Terrill, Transport and Cities Program Director, Grattan Institute
As federal government spending on small transport projects creeps up, marginal seats get a bigger share

Brace for the federal election – the transport promises have begun. Some are pretty big, such as Deputy Prime Minister Barnaby Joyce’s A$678 million for the Outback Highway[1], and Opposition leader Anthony Albanese’s $500 million down-payment on faster rail[2] between Newcastle and Sydney. If history is any guide, a rush of small local promises won’t be far behind.

As a new report[3] from Grattan Institute reveals, federal government spending on small local transport projects has grown dramatically in recent years.

Under the two most recent Labor terms of government, each electorate received an average of $26 million worth of small transport projects (projects worth up to $10 million each) per year. In the following three Coalition terms, that number increased tenfold to $264 million per electorate per year, on average.

Federal government spending on small local transport projects has grown dramatically in recent years. Grattan Institute, Author provided

But just because there’s more spending on small local projects, does it follow that it’s partisan political spending, or “pork-barrelling”? This new report shows what really matters is whether or not the money is allocated under objective, transparent criteria.

Read more: Of Australia's 32 biggest infrastructure projects, just eight had a public business case[4]

A car park is seen from the air One part of the Urban Congestion Fund, the $660 million commuter carpark fund, attracted public interest after the auditor-general published a scathing report on it last year. Shutterstock

Two long-standing transport programs allocate federal funds according to relatively objective criteria: the Black Spot[5] program, and Roads to Recovery[6].

The Black Spot program helps fund road-safety initiatives. To be eligible for funding, initiatives must have a benefit-to-cost ratio of at least 2-to-1, and the site must have a history of at least three casualty crashes in the past five years. The program was worth $104 million in 2020–21.

Roads to Recovery helps fund maintenance of local roads. The federal government provides funding to all local councils, using a formula based on population and road length. The program was worth $592 million in 2020–21.

Both programs are designed to favour rural and remote electorates. And that’s what’s happened under both Labor and Coalition governments, even though rural and remote seats are mostly held by the Coalition, often very safely.

In urban areas, too, the pattern of distribution of funds under these two programs has been remarkably similar under both Labor and Coalition governments. Black Spot and Roads to Recovery funds have been about as likely to go to safe as to marginal seats, and about as likely to go to government-held as to opposition-held seats.

Two long-standing transport programs allocate federal funds according to relatively objective criteria. Grattan Institute, Author provided

In contrast, the $4.9 billion Urban Congestion Fund[7] does not have eligibility criteria on its website. It’s the clearest case of a slush fund on the federal government’s books.

One component of the Urban Congestion Fund, the $660 million commuter carpark fund, has attracted significant public interest since the auditor-general published a scathing report[8] on it last year. But the allocation of the remaining $4.2 billion has received less attention.

Grattan Institute’s latest report[9] shows marginal seats clearly get a bigger share of funds than safe seats under the Urban Congestion Fund. More funding has gone to the most marginal seats, such as Lindsay in Sydney, Higgins in Melbourne, Moreton in Brisbane, Hasluck in Perth, and Boothby in Adelaide.

And seats held by a Coalition member get a bigger share of the funds than seats held by Labor, the Greens, other minor parties, or independents.

For instance, the luckiest electorate in Sydney was Lindsay, centred on Penrith, which received close to $200 million; Melbourne’s Aston, centred on Boronia, received close to $300 million; and Brisbane’s Forde, centred on Beenleigh, received $234 million.

Meanwhile, the electorate containing Sydney’s CBD got no funding, the electorate containing Melbourne’s CBD got $5 million, and the electorate containing Brisbane’s CBD got $2 million.

Marginal seats clearly get a bigger share of funds than safe seats under the Urban Congestion Fund. Grattan Institute, Author provided

Some might say a similar pattern of allocation of small funds, regardless of which party is in government, looks like a fair distribution. But there’s a broader issue: there has been massive growth in these small grants in recent years.

Aggregate federal transport spending has crept up only modestly over recent years, so a bigger proportion of the aggregate is now being directed to small projects – which is the proper and agreed remit of the state or local government, not the federal government.

The spending on small local projects by a national government should stop. Whichever party wins the 2022 federal election should strengthen the transport spending guardrails.

Instead of sprinkling public money on small projects around the country, the federal government should retreat to its proper transport funding role as a national government – no more roundabouts, overpasses, or carparks, just nationally significant infrastructure funded in an even-handed way.

Instead of sprinkling public money on small projects around the country, the federal government should retreat to its proper transport funding role as a national government – no more roundabouts, overpasses, or carparks. Shutterstock

Read more: Older women often rent in poverty – shared home equity could help some escape[10]

References

  1. ^ Outback Highway (www.afr.com)
  2. ^ faster rail (www.smh.com.au)
  3. ^ new report (grattan.edu.au)
  4. ^ Of Australia's 32 biggest infrastructure projects, just eight had a public business case (theconversation.com)
  5. ^ Black Spot (investment.infrastructure.gov.au)
  6. ^ Roads to Recovery (investment.infrastructure.gov.au)
  7. ^ Urban Congestion Fund (investment.infrastructure.gov.au)
  8. ^ report (www.anao.gov.au)
  9. ^ latest report (grattan.edu.au)
  10. ^ Older women often rent in poverty – shared home equity could help some escape (theconversation.com)

Authors: Marion Terrill, Transport and Cities Program Director, Grattan Institute

Read more https://theconversation.com/as-federal-government-spending-on-small-transport-projects-creeps-up-marginal-seats-get-a-bigger-share-179464

The Weekend Times Magazine

What to do in Canada during your holiday?

Canada has over 1.6 million square kilometers of protected natural land offering a world-class national park system. The country is one of the first in the world to establish a...

Weekend Escapes Closer to Home: Making the Most of Every Litre

Rising fuel prices are changing more than household budgets—they are changing the way Australians holiday. For many families, a weekend away has traditionally meant filling the car and heading several hundred...

Why Sydney Never Stops Welcoming the World

Every weekend, Australia's harbour city reminds us why international tourism matters. Walk through Circular Quay on a Saturday morning and you'll hear dozens of languages before you've finished your coffee. Families photograph...

Launching Weekly Campaigns with Zero Dev Involvement: The Headless Advantage

Marketing teams are forever tasked with more and more quickly. It wasn't long ago that launching a campaign weekly was a stretch goal and not a minimum viable timeframe. Today...

Why More Perth Homeowners Are Choosing Bidets for Modern Bathrooms

Bathroom renovations are no longer just about choosing stylish tiles, modern vanities and attractive tapware. Homeowners are increasingly considering how their bathrooms can support better hygiene, everyday comfort and long-term...

Turning fashion into power - Beauty with Brains

During this unfortunate time of our lives there’s a hidden gem business which keeps the hopes up for many lives of women of all walks of life. Fashion...

6 things that can go wrong if your iron isn't adequate before falling pregnant

Preconception care involves making sure you have adequate supply of all the nutrients essential to the health of the sperm and ova (egg) and to fetal development. Preconception also involves...

Australia’s top economists oppose the next increases in compulsory super: new poll

The five consecutive consecutive hikes in compulsory super contributions due to start next July should be deferred or abandoned in the view of the overwhelming majority of the leading Australian...

Making the most of a short Singapore stopover

A Singapore stopover can disappear into airport transfers, hotel check-in and a long list of places that looked close together on a map. With one or two nights available, the...

hacklink jojobetjojobetjojobethacklink panelBetimtürkiye yasal bahis siteleri