Costs and Funding
Funding and responsibility for Australia's road network is split between the three levels of government; Federal, State and Local. Because of long distances, low population densities, and widely separated major settlements, the costs of and funding for roads in Australia has been, historically, a major fiscal issue for all levels of government, especially Federal and State. The popular phrase 'the tyranny of distance', also the title of a famous historical work, captures the central role of transport in Australian policy, producing many conflicts. It was not until the Bland enquiry in Victoria that there was an attempt to outline the complex questions in economic theory and practice of determining and measuring road costs and their allocation. In 1978-80 the McDonell Enquiry reviewed road and rail freight transport in New South Wales and its affected cities and regions, (the 'hub' of the Australian freight transport system). It was set up because of the 'truckies' blockades and national disturbances which disrupted access to all mainland capitals. These were largely sparked by the levels of road taxes. This Enquiry developed the first comprehensive theoretical and measurement system for assessing and allocating road costs,. This system was subsequently applied more widely and then extended, with later studies, for the establishment of current national policy and principles.
The Federal government provides funds under the AusLink programme for several funding programs including:
- National Projects
- National Network Maintenance, essentially the National Highway, comprising the main freeways and highways linking the major cities of Australia
- Roads to Recovery Program - provides funding allocations to councils in each State or Territory.
- Black Spot Program (improvements to high accident risk spots)
- Strategic Regional Program
- Innovation and Research
- Funding for Local Roads
Other highways and main roads linking regional centres are funded by the respective state governments. Local and minor roads are generally funded by the third tier of government, local councils.
The Business Council of Australia in its Infrastructure Action Plan, estimated that in 2004, road infrastructure was under funded by A$10 billion.
Read more about this topic: Road Transport In Australia
Famous quotes containing the word costs:
“To exercise power costs effort and demands courage. That is why so many fail to assert rights to which they are perfectly entitled—because a right is a kind of power but they are too lazy or too cowardly to exercise it. The virtues which cloak these faults are called patience and forbearance.”
—Friedrich Nietzsche (1844–1900)