What this chapter covers
This chapter describes the Department's infrastructure portfolio outcome, Outcome 1, and reports on performance for the individual programs and administered items. Each report includes:
- an overview of the program's functions and how it is delivered
- a summary of the program's results against the key performance indicators and deliverables and their targets published in the 2010–11 Portfolio Budget Statements (PBS)
- a summary of the results for any administered items delivered by the program in 2010–11, and
- a detailed report on the performance of the program in 2010–11 against the applicable components from the 2010–11 PBS.
Outcome and programs
Figure 3.1 shows the relationships between Outcome 1 and its program, and identifies the business divisions of the Department responsible for delivering the program.
Program 1.1—Infrastructure Investment
The Department administered programs under Outcome 1 that provided more than $3.9 billion in direct and indirect grants for the construction and maintenance of land transport infrastructure.
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 2010–11 Budget.
The 2010–11 Budget provided equity funding of $1.0 billion over three years to the ARTC for seven projects to upgrade the national rail network.
The 2010–11 Budget also brought forward $976.6 million in payments to the states for eight road projects under the Nation Building Program. These funds were brought forward to reflect either significant progress on the project or to accelerate start of work on the project.
During 2010–11 construction work took place across the country on significant infrastructure projects. Nearly 40 major road and rail projects were completed in the financial year and work began on a further 51 major projects.
The Department continued to manage its other key infrastructure programs including the Roads to Recovery, Black Spots and Heavy Vehicle Safety programs with more than 2,153 projects completed in 2010–11.
The Department has been closely involved in the implementation of our largest infrastructure projects, including the continued duplication of the Pacific Highway, completing the duplication of the Hume Highway, significant works on the Bruce Highway and Ipswich Motorway, the Regional Rail Link in Melbourne, as well as working on highly strategic projects and planning works such as the proposed Moorebank Intermodal Terminal.
The Major Cities Unit released a discussion paper and a background and research paper on the national urban policy agenda. After nationwide consultation, the National Urban Policy was released in May 2011. Since its release in March 2010, the State of Australian Cities 2010 report has had more than half a million downloads from the Major Cities Unit website www.infrastructure.gov.au/infrastructure/mcu/soac.aspx.
The Department began work on the first phase of a strategic study into a high-speed rail network on the east coast of Australia. The study is examining potential routes from Brisbane southwards to Sydney, Canberra and Melbourne, as well as the economic viability of such a network.
Program 1.1 was delivered by the Nation Building—Infrastructure Investment Division, the Major Cities Unit and Infrastructure Australia, with input from the Policy and Research Division. This program contributes to Outcome 1 by increasing the efficiency and safety of Australia's land transport infrastructure while strengthening the Australian economy. This was accomplished through the provision of policy advice to the Australian Government, the delivery of a suite of administered items, and the work undertaken by Infrastructure Australia, supported by the Office of the Infrastructure Coordinator. The reports on Infrastructure Australia's performance towards Program 1.1 can be found at Chapter 5.
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 2010–11 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.||10–11 Achieved||09–10 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 2010–11 are shown in tables 3.4 and 3.5.
The Black Spot Projects program and the Heavy Vehicle Safety & Productivity Program (HVSPP) were established to address dangerous sites on the nation's road network.
During 2010–11, 220 Black Spot projects and 37 HVSPP projects were completed.
The Boom Gates for Rail Crossing Program was completed through the commissioning of active treatments for 300 rail crossings. The Tasmanian Rail Rescue Package upgraded sleepers, rails and bridges making the rail network safer.
|Australian land transport networks are more efficient.||Projects that improve road and rail efficiency are delivered.|
|Reduced travel times were achieved by completion of projects that addressed congestion and safety during the year. Examples of projects include the Northern Expressway in South Australia and the Mandurah Entrance Road in Western Australia.
Projects to reduce travel times and freight costs that were completed during 2010–11 included: the Wodonga Rail Bypass and Rail Duplication; Cootamundra to Crystal Brook New and Extended Loops; Port of Melbourne Rail Access Improvement Project. In addition the Adelaide Urban Congestion-Transport Sustainability Study was completed, which analysed urban congestion in Adelaide up to 2030. The study identified improvements that could be made to public transport networks, road networks, traffic management, land use and demand management that would enhance efficiency and productivity.
The Tasmanian Rail Rescue Package upgraded sleepers, rails and bridges making the rail network more efficient by improving reliability and reducing costly delays.
|States, territories and local governments are appropriately funded for network and off-network projects.||Payments are within 5% of forecast.||The Department achieved payments of 100% of the funding allocated for 2010–11.|
|High level of satisfaction with information and advice on the implementation of the infrastructure elements of the Nation Building—Economic Stimulus Plan.||Satisfaction with information and advice provided.||The information and advice was provided with a high level of satisfaction.|
|Achieved||All targets for 2010–11 were met or exceeded|
|Not achieved||None or minimal progress was made against targets in 2010–11|
|Partially achieved||Some targets were met, and any issues are being managed|
|Substantially achieved||Targets were mostly met, and any issues are being managed|
Table 3.2 Summary of performance—Program 1.1 deliverables
|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.||Payout of 100% funding for project progress.||The Department paid 100% of funding for project progress for Nation Building network and off-network projects.|
|Number of funding recipients receiving Roads to Recovery funding.||561 councils receive funding.||561 councils were eligible for Roads to Recovery funding in 2010–11. 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 Northern Territory and the South Australian Road Government Grants Commission are also eligible funding recipients. Of these eligible bodies, 528 received funding for approximately 2,600 projects.|
|Monitors, reports and provides advice to the Prime Minister, the Minister assisting the Prime Minister for Government Service Delivery and the Government, regarding the implementation of the infrastructure elements of the Nation Building—Economic Stimulus Plan.||Monitoring and reporting the progress of program delivery and funds expenditure.||All reporting and briefings were provided in a timely manner.
Reporting on progress of the delivery of Nation Building—Economic Stimulus Plan (NB-ESP) projects being undertaken by the Australian Rail Track Corporation were provided monthly as part of the wider NB-ESP reporting.
|Efficient and effective oversight of the Australian Government's interest in the Australian Rail Track Corporation (ARTC).||In collaboration with the Department of Finance and Deregulation, undertake and complete a review of ARTC's capital structure to be completed in 2010–11.||The Department undertook and completed a Capital Structure and Governance Review of the Australian Rail Track Corporation during 2010–11. The Department will provide advice to Government in 2011–12.|
|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.|
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.||$1,908.8 million was provided in 2010–11 for the planning and construction of 105 road and rail projects on the National Land Transport Network.|
|—Nation Building Black Spot Projects.||The Department administered $50.4 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 sites on roads around Australia. 220 Black Spot projects were completed during 2010–11 and a further 128 were under construction at 30 June 2011.|
|—Nation Building Heavy Vehicle Safety and Productivity.||$21.3 million was provided to improve safety and productivity for the Australian heavy vehicle transport industry. 37 projects were completed during 2010–11 and a further 43 were under way at 30 June 2011.|
|—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 showing how they had spent the program funds.|
|—Nation Building Off-Network Projects.||$192.7 million was provided to state, territory and local governments in 2010–11 for the planning and construction of 32 Off-Network Projects.|
|—Nation Building Improving the National Network.||The Department provided $1,820.0 million 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 2011 was $1,805.8 million.|
|—Nation Building Off-Network Projects-supplementary.||The Department provided $250.3 million to state governments and local councils in 2006–07 for the planning and construction of 102 projects. Total expenses to 30 June 2011 were $218.5 million, with 21 projects being completed during 2010–11.|
|—Nation Building improving local roads.||The Department provided $307.5 million to local councils, three state governments, the Northern Territory Government and the Indian Ocean Territories in June 2006. Total funding expended over the life of the program to 30 June 2011 amounted to $306.5 million. The remaining funding is expected to be expensed in 2011–12 .|
|Management of residual issues of former Australian National Railway Commission.||The Department is progressing the Australian National Railways Commission residual projects. Negotiations for the management of the Plant Room, Adelaide, are continuing with the state government.|
|Regional Infrastructure Fund.||The Department paid $11.4 million in 2010–11 for two projects, one each in NSW and Queensland. Of the $2.0m budgeted for the Scone level crossing in NSW, $1.4 million was paid on the basis that NSW advised it did not need the balance of funds. $10.0m was paid for the Mackay Ring Road in Queensland.|
|Nation Building Plan for the Future.||A total of $856.3 million was paid in 2010–11. Payments were made to the following projects during 2010–11: Hunter Expressway; Kempsey Bypass; Regional Rail Link; Gawler Line Modernisation; Noarlunga to Seaford Rail Extension; and Perth City Rail Link.|
|Jobs Fund—Infrastructure Employment Projects||$39.9 million was provided for 12 Infrastructure Employment Projects. The Australian Government finalised payment for four projects during 2010–11.|
The budget and actual expenditure for each administered item is listed in appendix A.
1 For the 2010–11 year the Jobs Fund—Infrastructure Employment Projects administered item was appropriated to Outcome 3 and accordingly transferred to the Department of Regional Australia, Regional Development and Local Government as a result of the AAO of 14 September 2010. This administered item was subsequently transferred back to the Department of Infrastructure and Transport with effect from 9 December 2010 and managed by staff working for Program 1.1. Allocations for this administered item have been made to Outcome 1 for the 2011–12 year.