Program 1.1-Infrastructure Investment
The Department administered programs under Outcome 1 that provided more than $5.9 billion in direct and indirect grants for the construction and maintenance of land transport infrastructure. This was an increase over the $5.2 billion provided in 2008–09.
The 2009–10 Budget provided $8.5 billion over six years for the Nation Building Plan for the Future measure, including $1.2 billion in 2008–09 and $411.0 million in 2009–10.
The Department worked closely with Australian Government agencies, state and territory governments and the Australian Rail Track Corporation (ARTC) to administer this funding, and to implement infrastructure initiatives announced as part of the Nation Building Plan for the Future measure.
The Department established the Major Infrastructure Projects Office and associated Major Infrastructure Projects Board to manage a number of key infrastructure projects, including through the role of an ‘independent advisor’.
In addition, the Department administered programs to deliver the Australian Government's Nation Building-Economic Stimulus Plan (NB-ESP). Funding in 2009–10 was supplemented by more than $1.3 billion in additional appropriations as part of the NB-ESP, comprising:
In the 2010–11 Budget, the Australian Government announced:
Program 1.1 was delivered by the Nation Building-Infrastructure Investment Division by increasing the efficiency and safety of Australia's land transport infrastructure while strengthening the Australian economy. This was accomplished by providing policy advice to the Australian Government and delivering a suite of administered items.
Program 1.1 included the following administered items:
- Nation Building Program 1
- Nation Building Program Investment
- Nation Building Black Spot Projects
- Nation Building Boom Gates for Rail Crossings
- Nation Building Heavy Vehicle Safety and Productivity (previously known as Nation Building Heavy Vehicle Safety)
- Nation Building Roads to Recovery
- Nation Building Off-Network Projects (previously known as Nation Building Strategic Regional)
- Nation Building Off-Network-supplementary (previously known as Nation Building Strategic Regional-supplementary)
- Nation Building Improving Local Roads, and
- Nation Building Improving the National Network
- Nation Building Plan for the Future, and
- Management of residual issues of former Australian National Railways Commission.
The budget and actual expenditure for each administered item is listed in Appendix A.
1 Payments made to the states and territories under the Nation Building Program and the Nation Building Plan for the Future are appropriated through the Department of the Treasury. Further information on these arrangements can be found in that Department's Portfolio Budget Statements and in Budget Paper No. 3, Australia's Federal Relations 2009–10.
Summary of performance
Tables 3.1 and 3.2 summarise the Department's results in delivering Program 1.1 against the key performance indicators and deliverables and their targets published in the 2009–10 PBS.
Table 3.1 Summary of performance-Program 1.1 key performance indicators
|Key performance indicator||Target||Result|
|Australian land transport networks are safer.||Projects that improve road and rail safety are delivered.||Achieved|
|Projects funded by the Australian Government are designed to the highest safety standards and improve the overall safety of the nation's road and rail network. Major projects completed during 2009–10 are shown in tables 3.4 and 3.5.
The Black Spot Projects program and the Boom Gates for Rail Crossings program were established specifically to address dangerous locations on the nation's road network.
During 2009–10 655 Black Spot projects were completed. In addition 300 Boom Gates for Rail Crossings projects were complete or substantially completed.
|Australian land transport networks are more efficient.||Projects that improve road and rail efficiency are delivered.||Achieved|
|Projects to reduce travel times and freight costs that were completed during 2009–10 included stage 1 of the Bunbury Port Access Road; New Perth Bunbury Highway upgrade; Ipswich Motorway /Logan Motorway Interchange; Pacific Highway-Karuah to Bulahdelah Stages 2 and 3; Southern Hume Accelerated Package; and the Coolac Bypass (Hume Highway).|
|States, territories and local governments are appropriately funded for network and off-network projects.||Payments are within 5% of forecast.||Achieved|
|The Department achieved payments of 99.8% of funding allocated for 2009–10.|
|Access to air services for remote communities is maintained or improved.||Funded projects are completed and the Department manages all projects funded by the Government in accordance with contracted requirements.||Achieved|
|The scheme provided 244 remote and isolated communities across 10 geographical regions with access to a regular air service for the carriage of passengers and goods including medicines, fresh food and educational materials.
Air operator contracts were managed according to contractual requirements.
|Not achieved||None or minimal progress was made against targets in 2009–10|
|Partially achieved||Some targets were met, and any issues are being managed|
|Substantially achieved||Targets were mostly met, and any issues are being managed|
|Achieved||All targets for 2009–10 were met or exceeded|
Table 3.2 Summary of performance-Program 1.1 deliverables
|Provision of policy input to the National Transport Commission regulation impact statement for the introduction of incremental charges.||Report prepared for ATC and COAG consideration.||At its meeting in July 2009, COAG agreed to the recommendations of the Phase I Report on Heavy Vehicle Charging, including merging the incremental pricing work stream with the feasibility study due in 2011. It was considered appropriate and efficient to develop incremental pricing as part of the mass-distance-location pricing framework as many issues are common to both streams of work.|
|Collaboration with state, territory and local governments to plan and evaluate land transport investments consistent with Government priorities.||States report monthly on progress of investments and quarterly on program implementation.||States and territories submitted reports for evaluation of their proposed projects, and monthly project progress reports.|
|Deliver the Nation Building administered items in cooperation with state, territory and local governments.||50% of new projects approved.||75% of new Nation Building network and off-network projects were approved or partially approved.|
|Number of funding recipients receiving Roads to Recovery funding.||565 councils receive funding.||As a result of local government amalgamations 561 councils were eligible for Roads to Recovery funding in 2009–10. Five state/territory authorities responsible for roads in unincorporated areas, the Indian Ocean Territories, the Lord Howe Island Board, the Local Government Association of the NT and the South Australian Local Government Grants Commission are also eligible funding recipients. Of these eligible bodies, 540 received funding for approximately 3,700 projects.|
|Completion of the Strategic Regional projects and approval of all Nation Building off-network commitments.||53 projects completed, with 80% of projects approved.||34 Strategic Regional projects were completed. Major flooding in several regional areas delayed the completion of a number of projects.
80% of new off-network projects were approved.
|Completion of remaining Strategic Regional (supplementary) projects.||50 projects completed||Of the remaining Strategic Regional-supplementary projects, 38 were completed. Major flooding in several regional areas delayed the completion of a number of projects.|
|Efficient and effective management of administered items.||Items are administered in accordance with relevant legislation, published guidelines and ANAO guidance.||Administered items were administered in accordance with relevant legislation, published guidelines and ANAO guidance.|
|ANAO = Australian National Audit Office, ATC = Australian Transport Council , COAG = Council of Australian Governments|
Table 3.3 provides a summary of the results achieved by each of the administered items under Program 1.1.
Table 3.3 Summary of performance-Program 1.1 administered items
|Nation Building Program|
|Nation Building Program Investment||The Department administered more than $3.8 billion of funding in
2009–10 (this includes the 2010–11 budget measure to accelerate payments of $976.7 million for projects that are progressing well). This funding contributed to the progress of 190 road and rail projects across Australia.
|Nation Building Black Spot Projects||The Department administered $113.6 million in support for projects to improve road safety at identified crash sites. The program has reduced the risk of crashes through measures such as traffic lights, roundabouts, signage and edge sealing at dangerous locations on roads around Australia. 655 Black Spot projects were completed during 2009–10 and a further 209 were underway at 30 June 2010.|
|Nation Building Boom Gates for Rail Crossings||$150.0 million was provided over 2008–09 and 2009–10 for 300 level crossing upgrade projects, of which $100.0 million was provided to the states and the Northern Territory in 2009–10. At 30 June 2010, 300 projects had been completed with 81 remaining to be commissioned.|
|Nation Building Heavy Vehicle Safety and Productivity (previously Nation Building Heavy Vehicle Safety)||$16.0 million was provided to improve safety and productivity for the Australian heavy vehicle transport industry. At 30 June 2010, 114 projects had been completed and 43 were underway.|
|Nation Building Roads to Recovery||$350.0 million was provided for a range of purposes, including road work, bridge work and the installation of traffic lights. Councils lodged audited financial statements stating how they had spent the program funds.|
|Nation Building Off-Network Projects (previously Nation Building Strategic Regional)||$280.2 million was provided to state governments and local councils for the planning and construction of off-network projects. 37 projects were completed in 2009–10.|
|Nation Building Off-Network-supplementary (previously Nation Building Strategic Regional-supplementary)||The Department provided $250.0 million to state governments and local councils in 2006–07 for the planning and construction of off-network projects. The jurisdictions report each month on progress. Total expenses to 30 June 2010 were $208.3 million, with $96.4 million expensed in 2009–10.|
|Nation Building improving local roads||The Department distributed $307.5 million to local councils, three state governments, the Northern Territory Government and the Indian Ocean Territories in June 2006. Total funding expensed over the life of the program up to 30 June 2010 amounted to $306.5 million, with $4.1 million expensed in 2009–10.|
|Nation Building improving the National Network||The Department provided $1.8 billion as prepayments to New South Wales, Queensland, Western Australia, South Australia, Tasmania and the Northern Territory to accelerate works on 10 National Network highways in June 2006. The jurisdictions report each month on progress. Total expenses to 30 June 2010 were $1.8 billion, with $190.9 million expensed in 2009–10.|
|Nation Building Plan for the Future||A total of $411.0 million was paid in 2009–10. Payments comprised $365.0 million for the Gold Coast Rapid Transit project; $36.0 million for the Gawler Line Modernisation; and $10.0 million for the Noarlunga to Seaford Rail Extension project in South Australia.
$80.1 million of the $91.0 million provided for the West Metro project was returned by New South Wales following the state's decision to postpone the project indefinitely, in February 2010. A second and final invoice will be issued for the remaining unspent funds following the completion of a final independent audit.
The remaining projects are at various stages and, with the exception of the two ports projects, payments will be made in accordance with the National Partnership Agreements with each of the states and territories as milestones are met. The Australian Government has set aside funding for the Oakajee Port common user facilities ($339.0 million) and the expansion of Darwin Port ($50.0 million) subject to further advice by Infrastructure Australia.
|Management of residual issues of former Australian National Railways Commission||The Department is progressing the Australian National Railways Commission residual projects. A tender process for the disposal of the GM-1 locomotive commenced in late 2009. Negotiations for the management of the Plant Room, Adelaide, are continuing with the state government.|