Victoria, Queensland and South Australia will bear the brunt of Tony Abbott’s short-sighted Budget decision to cut infrastructure funding by $2 billion over the next two years.
According to Labor analysis of the Budget documents and information released at last week’s Senate Budget Estimates hearings, Victoria will be the biggest loser, with infrastructure spending down by $812 million in the next two years when compared to what was promised in the 2014 Budget.
Over the next four years, Victoria will receive only 8 per cent of the commonwealth’s total infrastructure spend despite having 25 percent of the national population.
Federal infrastructure investment in Queensland will fall by $613 million over the next two years, with investment in South Australia down $318 million.
NSW faces a cut of $43 million, Tasmania $31 million and investment in the ACT will fall by $12 million over two years.
Since taking office, Mr Abbott has constantly re-announced old road projects funded by the former Labor Government to back his misleading claims about the size of his infrastructure spend.
But this year’s Budget has exposed Mr Abbott’s big infrastructure con.
With private sector investment declining as the resources industry moves from developing new mines to production, Australia needs a government prepared to invest in nation building to keep the economy moving.
Instead, Mr Abbott has cut infrastructure spending and tried to pretend otherwise.
Mr Abbott’s infrastructure cuts include a $129 million cut to the ongoing Pacific Highway duplication in 2015-6 compared to what was previously promised for that year.
Funding for the Bruce Highway upgrade in Queensland will fall $93 million in the same period.