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HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON COMMUNICATIONS, TRANSPORT AND MICROECONOMIC REFORM Reference: federal road funding MELBOURNE Monday, 5 May 1997 OFFICIAL HANSARD REPORT CANBERRA HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON COMMUNICATIONS, TRANSPORT AND MICROECONOMIC REFORM Members: Mr Vaile (Chair) Mr Albanese Mr Peter Morris Mr Ross Cameron Mr Neville Mrs Crosio Mr Randall Mr Hardgrave Mr Tanner Mr Lindsay Mr Wakelin Mr McArthur Mr Willis Mr McDougall The Commonwealth, under its roads program, provides funds to the States and Territories for the National Highway and Roads of National Importance. The Committee is asked to: 1. Review the Commonwealth role in road funding and identify the most effective means of fulfilling that role; 2. Assess the adequacy and extent of the National Highway as currently declared in meeting the objective of providing a national road system that meets the needs of industry and the community; 3. Assess the level of funding required to adequately fulfil the Commonwealth role. This should take into account the current condition of the asset, depreciation and maintenance requirements, as well as new investment required to meet demand growth, changes in technology (especially increased weight limits for heavy vehicles) and community expectations of road standards; 4. Examine whether current administrative arrangements have an adequate performance focus, promote effective and efficient use of funds and adoption by States and Territories of best practice, and provide an effective Commonwealth/State interface; and 5. Assess the scope to supplement Government funding through innovative arrangements for private sector involvement in the provision and maintenance of roads infrastructure and the scope for pricing of road services to reflect full resource costs. In undertaking this review the Committee is to take into account the National Commission of Audit principles of clarifying the roles and responsibilities of Governments with the overriding objective of improving the outcome to clients and achieving value for money for the taxpayer. WITNESSES ALLAN, Mr John, Federal Secretary, Transport Workers Union of Australia, 18-20 Lincoln Square North, Carlton, Victoria 3053 ......................................... 610 BENNETT, Mr John, Policy Analyst, Municipal Association of Victoria, 11 Milton Parade, Malvern, Victoria 3144 .................................................... 621 BERRY, Mr David, Deputy Secretary, Strategic Planning and Economic Services Division, Victorian State Government, Department of Infrastructure, Level 23, Nauru House, 80 Collins Street, Melbourne, Victoria 3000 ....................................... 544 BROADFOOT, Mr Robert Dougall, Vice President, Australian Road Federation, 11 Fitzgibbon Street, Parkville, Victoria 3052 .............................................. 578 CONROY, Councillor Mark Timothy, Councillor Representative, Frankston City Council, Eastern Ring Road Steering Committee, City of Greater Dandenong, PO Box 200, Springvale, Victoria 3171 .................................................. 632 GIBBS, Mr Ian, Assistant Commissioner, Industry Commission, Locked Bag 2, Collins Street East, Melbourne, Victoria 8003 .............................................. 564 HUETT, Mr Douglas Edward, National Executive Director, Civil Contractors Federation, 1/8 Glan Avon Road, Hawthorn, Victoria 3122 ..................................... 588 HURLSTONE, Mr John, Chairman, National Road Transport Commission, PO Box 13105, Law Courts, Victoria 8010 ..................................................... 601 JACKA, Mr Ian Maxwell, Executive Director, Victorian Branch, Civil Contractors Federation, 1/8 Glan Avon Road, Hawthorn, Victoria 3122 .................................. 588 JORDAN, Mr Colin Lawrence, Chief Executive, VicRoads, Victorian State Government, 60 Denmark Street, Kew, Victoria 3101 .......................................... 544 KERR, Mr Brian, Manager, Infrastructure Planning, Eastern Ring Road Steering Committee, City of Greater Dandenong, PO Box 200, Springvale, Victoria 3171 ................... 632 LA FONTAINE, Mrs Dominique, Executive Officer, Timber Towns Victoria, 8 Chestnut Street, Carnegie, Victoria 3163 ................................................... 621 LODER, Mr Bruce Norman, National President, Australian Road Federation, 11 Fitzgibbon Street, Parkville, Victoria 3052 .............................................. 578 LYNE, Mr Graeme Francis, Civil Planner, Eastern Ring Road Steering Committee, City of Greater Dandenong, PO Box 200, Springvale, Victoria 3171 ........................ 632 MAHER, Mr Terry, 511 Burwood Highway, Wantirna South, Victoria 3152 ................. 639 MANNERS, Mr Clay, Policy Director, Victorian Farmers Federation, 24 Collins Street, Melbourne, Victoria 3000 .................................................. 676 MURPHY, Mr Michael, Councillor, Moyne Shire Council, 12 Coxs Street, Port Fairy, Victoria 3284 ................................................................. 621 NOONAN, Mr William, Federal Vice-President, Transport Workers Union of Australia, 18-20 Lincoln Square North, Carlton, Victoria 3053 ................................... 610 NUGENT, Mr Peter, MP, Unit 7, 426 Burwood Highway, Wantirna South, Victoria 3152 ........ 639 O’SULLIVAN, Mr David, Chief Executive, National Road Transport Commission, PO Box 13105, Law Courts, Victoria 8010 ............................................ 601 OGDEN, Professor Kenneth, Group Manager—Public Policy, Royal Automobile Club of Victoria Ltd, 550 Princes Highway, Noble Park, Victoria 3174 ............................. 660 PARKER, Mr Alan Arthur, Secretary, People for Ecologically Sustainable Transport, 50 Stirling Street, Footscray, Victoria 3011 ............................................. 649 PICCININ, Mr Claude, Assistant Director, Economics, Business Council of Australia, Level 15, 10 Queens Road, Melbourne, Victoria 3004 ................................... ..594 ROGAN, Mr John Michael, Director, Infrastructure Investment and Programs, Victorian State Government, Department of Infrastructure, Level 23, Nauru House, 80 Collins Street, Melbourne, Victoria 3000 .................................................. 544 SCALES, Mr William Ivan, Chairman, Industry Commission, Locked Bag 2, Collins Street East, Melbourne, Victoria 8003 .................................................. 564 SNELLING, Mr Ian George, Treasurer, Australian Road Federation, 11 Fitzgibbon Street, Parkville, Victoria 3052 ................................................... 578 STANLEY, Mr John, Deputy Chairman, National Road Transport Commission, PO Box 13105, Law Courts, Victoria 8010 ................................................. 601 THORNE, Ms Kay Patricia, Executive Director, Australian Road Federation, 11 Fitzgibbon Street, Parkville, Victoria 3052 .............................................. 578 WALSH, Mr Peter, Deputy President, Victorian Farmers Federation, 24 Collins Street, Melbourne, Victoria 3000 .................................................. 676 HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON COMMUNICATIONS, TRANSPORT AND MICROECONOMIC REFORM Inquiry into federal road funding MELBOURNE Monday, 5 May 1997 Present Mr Vaile (Chair) Mr Albanese Mr McDougall Mr McArthur Mr Willis The committee met at 9.02 a.m. Mr Vaile took the chair. 541 CHAIR—I apologise for the late start this morning. I declare open this public hearing of the House of CTMR 542 REPS Monday, 5 May 1997 Representatives Standing Committee on Communications, Transport and Microeconomic Reform on its inquiry into federal road funding. Today is part of the committee’s 12-day program of hearings and inspections covering all states and territories. The committee is investigating the underlying principles for funding Australia’s national road system. I should emphasise at this point that, in addressing the terms of reference, the inquiry should not been seen as a forum for advocating the funding of specific road projects. On behalf of the committee, I welcome everyone appearing before the committee today. Before proceeding, I wish to advise all witnesses that, although the committee does not require evidence to be given under oath, committee hearings are legal proceedings of the parliament and warrant the same respect as proceedings of the House itself. However, the giving of false or misleading evidence is a serious matter and may be regarded as contempt of the parliament. I welcome everybody here this morning. COMMUNICATIONS, TRANSPORT AND MICROECONOMIC REFORM Monday, 5 May 1997 REPS CTMR 543 BERRY, Mr David, Deputy Secretary, Strategic Planning and Economic Services Division, Victorian State Government, Department of Infrastructure, Level 23, Nauru House, 80 Collins Street, Melbourne, Victoria 3000 JORDAN, Mr Colin Lawrence, Chief Executive, VicRoads, Victorian State Government, 60 Denmark Street, Kew, Victoria 3101 ROGAN, Mr John Michael, Director, Infrastructure Investment and Programs, Victorian State Government, Department of Infrastructure, Level 23, Nauru House, 80 Collins Street, Melbourne, Victoria 3000 CHAIR—Welcome, gentlemen. The committee has received your submission and incorporated that as evidence before this inquiry. Would you like to make a brief opening statement? Mr Jordan—Thank you for the opportunity for my colleagues and me to appear before your committee on behalf of the Victorian government. As a matter of principle, the Victorian government believes that all Commonwealth funds to the states