FEDERAL BUDGET: Building program winds down

Funding for road transport infrastructure under the Nation Building Program will decline next financial year

By Brad Gardner | May 12, 2010

Funding for road transport infrastructure projects from the Rudd Government’s Nation Building Program will decline next financial year.

The states and territories will receive $3.8 billion under the program this in 2009-10 and $3.2 in the 2010-11 financial year, budget papers show.

According to budget papers, the latest round of funding represents an almost $600 million decline. The $3.2 billion forms part of the $4.2 billion investment in transport infrastructure announced in the Budget.

A spokesman for Minister for Infrastructure and Transport Anthony Albanese says the Government is not reducing funding. He says the Nation Building Program works according to a six-year timeframe similar to the previous AusLink program.

According to the spokesman, funding levels vary depending on when projects are completed within the the six-year period.

"You can't look at one year in isolation," the spokesman says.

"There has been no reduction in road spending."

Almost $20 billion will be injected into the road network between 2008-09 and 2012-13 under the program.

NSW will receive $881.2 million next financial year, down from the $1 billion it received in 2009-10.

Victoria’s share will fall marginally from $541.5 million to $528.6 million.

While Queensland will also receive less, another $1 billion will be pumped into the state. The Nation Building Program allocated $1.14 billion this financial year.

Tasmania’s share will almost halve from $161.5 million to $83.6 million, while funding for Northern Territory projects will drop from $116.7 million to $94.7 million.

The ACT will be the only jurisdiction to receive an increase, with funding growing to $40.6 million, up $9.1 million from this financial year.

Western Australia’s slice of the funding pie will reduce more than $50 million to $345.3 million, while funding for South Australian projects will decrease $159.9 million to $216.3 million.

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