Address by Maria Vamvakinou MP

Federal Member for Calwell

Hume Global Learning Centre  

Wednesday 10 October

Introduction 

I want to start by thanking you for giving me an opportunity to speak this evening, and I also want to apologise in advance for having to leave early due to prior commitments.  

The electorate of Calwell which I represent coincides with the boundaries of Hume City Council. This means that we share many of the same concerns, both at the micro level when it comes to individual communities, and at the macro level when it comes to Melbourne’s North West region as a whole.  

 One such concern is, of course, infrastructure.  

As the organisers of tonight’s event will tell you, there is a chronic shortfall in funding for infrastructure and facilities across Australia.  

This is particularly true in high growth areas like Hume, where the need for new infrastructure and additional services to meet the demands of our fast growing population is both urgent and ongoing. 

Inadequate public funding and investment in infrastructure at the Federal level over the last decade – coupled with a failure to plan ahead for Australia’s future - has meant that local governments now face a constant battle to meet both current and future demand. 

This failure to plan ahead or to show national leadership at the Federal level when it comes to investing in our future, is the very same reason why Australia now faces a crippling skills crisis, why the supply of new housing can’t keep up with demand, why we face chronic water shortages, why Australia ranks a lowly 25th in the world in terms of broadband services and speeds, why we have been pitifully slow to react to the dangers of climate change…and the list goes on.  

By attempting to address the current shortfall in infrastructure funding for growth areas like Hume, Funding the Gap is an important campaign.  

Tonight, I want to speak about some of the policies that Federal Labor has put forward in response to the infrastructure needs of growth areas like Hume, policies that I strongly support.   

Labor believes that the Commonwealth has a significant role to play in the provision of both economic and social infrastructure to make our towns and cities more liveable and more responsive to the needs of the local community. 

Infrastructure Australia 

At the core of Labor’s infrastructure policy is Infrastructure Australia, an independent Commonwealth Statutory Authority that Labor will establish within the first 100 days of office should a Rudd Labor government be elected. 

Infrastructure Australia will be charged with the responsibility of coordinating the planning, regulation and development of infrastructure across Australia and developing a strategic blueprint for our nation’s infrastructure needs. 

Its first job will be to undertake a national audit to assess the adequacy, capacity and condition of our current infrastructure assets, and to develop a National Infrastructure Priority List within its first 12 months. 

There are two key points to make here. The first is that Infrastructure Australia is essentially about taking the politics out of decision making when it comes to the allocation of Commonwealth funds.     

Whereas today funding dollars are largely channelled into what is called ‘cherry picking’ in marginal seats – and there has been ample example of this over the last few months - Infrastructure Australia will allocate Commonwealth funds according to where they are needed the most. 

Instead of an individual Minister deciding where funding goes, Infrastructure Australia will include representatives from all tiers of government, Commonwealth, State and local, as well as key stake holders, who will collectively decide where Commonwealth funding on infrastructure is best spent. 

Decision making will operate at arms length from individual Ministers so that is isn’t determined by politics. 

This collaborative and cooperative approach between Federal, state and local government differs significantly from the current wrangling and buck passing that currently goes on.  

When it comes to local government, it has all but been denied a voice so far in relation to infrastructure funding. Funding the Gap is partly an attempt to strengthen the voice of local government in this area. 

Under Labor’s plan however, local government will have a real opportunity to contribute to the formulation of a national program for infrastructure renewal and development.  

When it comes to recognising the important role that local councils play, Labor advocates a time frame for the constitutional recognition of local government. I spoke in favour of this in Federal Parliament late last year.  

Constitutional recognition will redefine the relationship between Commonwealth, state and local governments, and guarantee that communities have an effective local voice in decision making on the issues that affect their lives.   

Labor will also establish a Council of Australian Local Governments to strengthen dialogue between Federal and local government and to give local councils direct access to ministerial portfolios.  

One of the first tasks undertaken by the Council will be to provide advice on future funding arrangements for local government and on ways to improve the underlying financial arrangements that exist between Federal and local government.  

The second point to make in relation to Infrastructure Australia is that infrastructure development and investment will no longer be viewed through the prism of a three-year election cycle.  Rather, the focus will be on making decisions that take into account long term economic, social and environmental objectives, and remain sensitive to long term challenges like changing population demographics and climate change.  

What this means for Hume is that decisions on where Commonwealth funding for infrastructure is allocated will involve the local council and the local community, and these decisions will be made on the basis of need, rather than on what the government stands to gain in electoral terms.  

Major Cities Program  

When it comes to investing in infrastructure, one of the first policies announced by Kevin Rudd back in December 2006 was his commitment to establishing a Major Cities Program.  

The Major Cities Program is about refocusing attention back on to the infrastructure needs of our major cities and towns. 

Support for infrastructure development in regional Australia is important, but Australia’s infrastructure needs do not stop once the country becomes the city.  

Australia is one of the most heavily urbanised countries on earth – and one of the biggest failures of the Howard government is its neglect of the 18 million Australians who live in our capital cities and towns along the coast.  

For example, a National Water Plan that leaves out 18 million water users is not a national plan, nor is it a satisfactory response to our water crisis. 

ABS data shows that Australia’s 8 capital cities contributed 78 per cent of the nation’s economic growth between 2001 and 2006. 

Put simply, the Federal Government simply cannot afford to neglect Australia’s towns and cities including urban centres like Hume. 

Responsible and responsive infrastructure investment in areas like Hume is about building communities by providing child care services and investing in aged care and health services for example.  

That is precisely what Federal Labor’s Major Cities Program is all about, renewing the Commonwealth’s role when it comes to meeting local infrastructure needs by providing both leadership and practical support for urban infrastructure programs in partnership with State and local governments, and the private sector. 

Specific Labor initiatives for fast growth areas 

Labor has already announced a number of specific initiatives that will benefit fast growth areas. These commitments include: 

• A $2 billion National Health Reform Plan to free up hospital beds and improve healthcare
 
• A $2.5 billion investment to build or upgrade Trades Training Centres in every secondary school in Australia, including those in Hume, to provide our children with real options when it comes to choosing a career in the trades
 
• An investment of $250 million for towns and cities to ensure water is not wasted on its way to the tap – saving some of the 155 thousand megalitres of water lost in major cities each year from pipes alone
 
• A $200 million investment in childcare facilities, to build 260 new childcare centres on primary school grounds and other community land
 
• A $4.7 billion investment in a National Broadband Network – that will ensure that all local households and small businesses in Hume will be able to access broadband at speeds 40 times faster than today
• Support for major urban transport road upgrades to ease congestion
 
• A willingness to expand the eligibility of the Roads to Recovery grants to encompass public transport-related projects like bus stations; and
 
• A $500 rebate for grey water pipes and rainwater tanks that will complement existing subsidies and help families save water. 

In addition to these measures, Labor has also announced a National Housing Affordability Fund where Labor will invest $500 million to save new homebuyers up to $20,000 on their new house. 

This money will be used to help pay for both the cost of developing new infrastructure such as water, transport and parklands in new residential areas, and to lower the ‘holding costs’ associated with planning and approval delays such as interest and land taxes. 

Currently, these costs are passed on to new home owners through higher house prices.  

The Fund will target high growth areas and areas where a lack of existing infrastructure acts as a barrier to land development. Under the scheme, local governments will be able to apply for funding to build infrastructure in new and expanding residential areas.  

And under its National Rental Affordability Scheme, Labor will offer tax incentives to institutional investors who build new homes or units and rent them to low and middle income households at 20 per cent below the market rate of equivalent properties in the area. 

These initiatives do not answer every question, but they are a significant step in the right direction. They go some way towards alleviating some of pressures that local councils face, though a lot more work needs to be done on issues relating to local government financing. 

A Rudd Labor government will provide leadership and focus on developing the infrastructure and services we need, and it will do so in partnership with both local government and the local community. 

Thank-you for your time, and I hope you enjoy the rest of the evening.

Contact: Alex Kouttab 0417 541 465