Topics: Victorian Federal infrastructure funding, tax reform, budget, NDIS.
E&OE…
TOM CONNELL
The PM will be out in Melbourne today announcing $1.5 billion in road projects from money that was going to be used for the East-West Link, with the Victorian Labor Government having cancelled that particular project. For more on this I am joined by Victorian Senator and frontbencher Scott Ryan in our Melbourne studio. Senator Ryan, thanks for being there today.
MINISTER RYAN
Thanks Tom.
CONNELL
If I can start on the East-West Link – $1.5 billion of course, it is going to be used instead to upgrade the Monash Freeway, the M80, the Metropolitan Ring Road as well. Is it your understanding that the Victorian Government will agree to this? Because that is the other side of the equation.
RYAN
After Daniel Andrews, supported by Bill Shorten, spent a billion dollars not to build the East-West Link, they have had this $1.5 billion of Commonwealth money and we think Victoria needs infrastructure. And importantly, it is not just roads, the Murray Basin Rail Project is a very important economic infrastructure project in regional Victoria, a freight rail project through western and south western Victoria. With the cancellation of the East-West Link, the Monash Freeway is absolutely critical, and so we have said: okay, you’ve spent a billion dollars not to build a road, we will give $500 million out of this pot of money if you match it to see the most substantial upgrade to the Monash Freeway in more than a decade. It is the major axis through eastern and south-eastern Melbourne.
CONNELL
In a brief answer then, we are not sure we will see what Daniel Andrews says – is that what you are saying?
RYAN
I hope they do agree, I really do. They have had a list, a litany of requests to the Federal Government for money for infrastructure. They have constantly said that Victoria needs its bigger share, well this gives Victoria its share of spending. The Murray Basin Rail Project, they only recently requested Federal support for, so we have delivered on that straight away. And we have put money aside to ensure that other infrastructure projects are planned more quickly.
CONNELL
Okay, we will see the reaction I suppose. The other part about this is that the Prime Minister is apparently going to say that there is still $3 billion on the table for East-West Link. In the last in-depth business case we saw for it, it got back 45 cents in the dollar. It was going to take 56 years to pay off via tolls, but are you still keen on it?
RYAN
Some of the numbers in that particular business case can be challenged. Anyone who knows the Northern suburbs of Melbourne and trying to get from east to west knows that the East-West Link is absolutely critical and we stand by it, we remain committed to it. The roads along the inner northern suburbs of Melbourne – Alexandra Avenue, driving around past the zoo for your Melbourne viewers – they are gridlocked almost 24 hours a day. We need a link not only across the western part of Melbourne and a second link across the rivers but also, critically, between the Tullamarine and the Eastern freeways. Everyone…
(Interrupted)
CONNELL
Sorry, you spoke about challenging the numbers; will you challenge it with a better business case?
RYAN
That is what I mean, the business cases, remember, are built upon a lot of assumptions. But there is no one who uses these roads commercially or privately that says this is not absolutely and utterly necessary. It only takes one broken down bus or car on the Monash Freeway or the Westgate Freeway and the entire city freezes because there is no other route across the city. So we stand by it, 100 per cent remain committed.
CONNELL
Alright, well maybe we will see an alternative business case. Tax reform if I can get you on, the Financial Review reporting the possible plan to ditch all of the work related expense write-offs, maybe swap that for an income tax deduction for every worker. You would have thought this would fit into the mantra of lower, simpler, fairer, apparently it is another option off the table?
RYAN
I think it is 18 days until the Budget, Tom, on my last count. We are in that time of the year where there are lots of things in the newspapers saying what there may or may not be in the Budget, I think we can actually take a deep breath and wait and see. These tax issues are very complex and what Malcolm Turnbull and Scott Morrison have done is to actually, for the first time, have this discussion publically. No secret gatherings of people re-designing a tax system and hoping the public support it, but we have had this conversation with the public over the last three months. We have said we will have a tax plan in the Budget, let’s wait and see.
CONNELL
Would you agree though that this would be a pretty good option for the lower, simpler, fairer mantra?
RYAN
Well, whenever you are doing something on taxes there are swings and round-abouts. There are people who would have a lot of input costs who think deductions are particularly important to them because they do spend a lot on actually earning that income, so we do have to consider fairness here in how changes apply because some people may be better off than others. It is not as simple as saying with the stroke of the pen you can simplify it and everyone will be better off. That is Labor’s silver bullet solution and everyone knows that is not real-world.
CONNELL
Okay, just finally, the NDIS. Reports today from an FOI request from The Australian that there is a concern about a cost blow-out. And I know this is not the first time this has been put out there. But this one relates to a possible blurred line between people who qualify for the NDIS and whether or not chronic health issues such as obesity, and diabetes might technically qualify at the moment, and you need legislation to change that to make sure there is no blow-out. What is your understanding of this?
RYAN
Christian Porter, following the work of Mitch Fifield, is working very hard and currently the NDIS is being delivered on Budget. The major challenge the Government is of course there is more than $5 billion of annual expenditure starting in a few years that is not funded. If this FOI, and I have read the newspaper article but I haven’t seen the document, if this is accurate than that actually compounds the massive funding hole that Labor has left us with. But we are committed to delivering it on time and on budget and that is our track record in the last two and a half years.
CONNELL
Very quickly, you might need to change the legislation to tighten the eligibility?
RYAN
Look, again I haven’t seen the document. Our challenge is to make sure that the NDIS is delivered, but it has to be affordable. We have done that so far, and I am sure Christian Porter is on top of any particular challenges around eligibility. The main challenge as I said though is the funding hole that Labor left us with, of more than $5 billion a year.
CONNELL
Okay, we will see the full response from the Minister. Scott Ryan, thank you for your time on AM Agenda.
RYAN
Thanks Tom.
(ENDS)