The Australian Government should spend more on road maintenance as it works to boost the economy, rather than trying to bring forward more new road projects, according to the Chairman of the Australian Trucking Association (ATA) Trevor Martyn.
Mr Martyn made the comments while releasing the ATA’s pre-budget submission to the Government.
The submission warns that bringing forward more major projects in an attempt to jump start the economy could simply result in cost blowouts when construction starts in a few years’ time.
"It takes years to bring a major project to the stage where construction work can start, but the Government needs to boost the economy now," Martyn says.
"The Government has already brought forward the road projects that are at the stage where they can deliver quick economic benefits."
"If it tries to bring forward less-advanced projects, the economy will be turning up again by the time the projects get underway. Instead of helping, the extra spending would just lead to cost blowouts."
In the ATA’s view, the Government should now spend more on road maintenance, which would generate an immediate boost to the economy: maintenance projects can get started very quickly. "It would also deliver lasting benefits for everyone who uses the roads, because we desperately need more road maintenance spending.
Under AusLink, the previous Government allocated $300 million per year to maintenance, but this figure was inadequate from the start.
"As a result, Australia’s existing roads are just plain worn out. Every truck driver knows it, and the statistics confirm our view," Martyn says.
"For example, the pavement on 25 per cent of the AusLink Network in Queensland is now more than 30 years old. The pavement was only designed to last 20 years, and now needs to be replaced and strengthened. The road networks in the other states all have similar problems."
"In addition, there is still a substantial maintenance backlog on local roads in regional areas. Some local councils are looking at tearing up paved roads and going back to gravel, because they don’t have the money to maintain them," Martyn says.
"The ATA’s pre-budget submission also urges the Government to:
- focus its economic stimulus measures on infrastructure — like road maintenance — and human capital investments such as training rather than repeating the handouts in the Economic Security Strategy. - retain the fuel tax credit system in the 2009-10 Budget.
- require the states and territories to open suitable highways to high productivity vehicles as a condition of receiving funding under the Building Australia program.
- require all road projects funded in the 2009-10 Budget to be designed from the outset to include heavy vehicle rest areas in line with the national guidelines.
- require the states and territories to follow best practice cost estimation and contract management processes on the brought forward projects to minimise any unexpected increases in the cost of the projects.
- extend the 10 per cent investment allowance announced in the Nation Building package, to make it available for new tangible depreciating assets that cost more than $10,000 and are acquired, held under contract, or constructed between 12 December 2008 and 30 June 2010.
The ATA’s pre-budget submission can be downloaded from www.atatruck.net.au
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