2009 State Budget: Growing Regional Victoria

The Brumby Labor Government is backing regional Victoria with over $1.7 billion to deliver the infrastructure and services needed to deliver jobs now and ensure our regions continue to growth and thrive.

The Treasurer, John Lenders, said securing up to 35,000 jobs next financial year was the focus of a record infrastructure investment funded through the 2009 State Budget to fight the impact of the Global Financial Crisis, and drive growth and investment across regional and rural Victoria.

“The Brumby Labor Government is taking action to drive regional economic growth and support key regional industries; delivering strong leadership in tough global times to see Victoria through and build communities for the future,” Mr Lenders said.

“The 2009 State Budget builds on a decade of record investment in making regional and rural Victoria the best place to live, work and raise a family, and sets out new investment to drive jobs and industry growth in our regional centres and rural communities.

“It also commits new record funding to help communities recover and rebuild after the most devastating fires in Australia’s history and brings to the book almost $1 billion committed by our Government in response to these horrific fires.

“Our Government is providing a safety net for families in regional Victoria through the Global Financial Crisis to ensure they continue to have access to the best schools, top quality health services, and efficient transport connections.”

Building Record Infrastructure to Secure Up to 35,000 Victorian Jobs

The 2009 State Budget makes an unprecedented investment in boosting the State’s infrastructure including kick-starting the first four years of the 12-year $38 billion Victorian Transport Plan, major hospital redevelopments and continuing the biggest school rebuilding program in Victoria’s history.

“Last month the IMF said the best thing governments can do to respond to the Global Financial Crisis is to fast-track and invest in job-creating infrastructure – this is what our Government is doing,” Mr Lenders said.

“The Brumby Labor Government is working shoulder to shoulder with the Rudd Federal Government to make the right investments to see Victorians through the Global Financial Crisis.”

Rebuilding After the Bushfires

The 2009 State Budget brings to book almost $1 billion the Brumby Labor Government committed to respond and recover from the worst bushfires in Australia’s history which claimed 173 lives, 2029 homes and 57 businesses in February this year.

Mr Lenders said every Victorian had been touched by the generosity of fellow Victorians and people across the globe who had donated more than $330 million to the Victorian Bushfire Appeal Fund.

In addition to the programs funded by the Appeal Fund, Mr Lenders said the Brumby Labor Government had committed to a range of initiatives to resource emergency service agencies, help families recover, improve communications and establish the independent Royal Commission into the bushfires.

The 2009 State Budget brings to book the almost $1 billion cost of fighting the recent bushfires, responding to the emergency and rebuilding the State afterwards, including:

• $344 million for fire fighting undertaken by DSE, MFB, CFA and firefighters from interstate and overseas;
• $24 million for additional police resources, including Victoria Police and police from interstate;
• $70 million over two years for individual case managers to work with Victorians affected by the bushfires;
• $36 million for compassionate assistance, such as temporary housing, funeral expenses, emergency medical services, counselling services, and emergency hardship grants;
• $51 million for a Business Assistance Package to help small businesses and primary producers, including business assistance grants, low-interest loans and business restart mentors; and
• $10 million for a tourism package to encourage tourists to visit regions affected by the bushfires.

A Record Education Budget for the Jobs of the Future

The Brumby Labor Government is taking action to rebuild schools across regional and rural Victoria with a $88.3 million package that will deliver jobs now and support country Victorian families through tough global times. Together with the Rudd Federal Government, the Brumby Labor Government is delivering the biggest boost to the education system in the State’s history.

Mr Lenders said the 2009 State Budget would continue delivering on the Brumby Labor Government’s plan to rebuild, renovate and modernise every school in the State to create a world-class education system for Victorian families no matter where they lived.

Building Better Transport Links for Our Regions

The Brumby Labor Government will invest $342 million to continue building the transport links needed to underpin regional economic growth, support key regional industries and connect communities.

Mr Lenders said a $102.4 million investment in the Better Roads Regional Victoria Development package would deliver upgrades to major roads in regional areas with $55.1 million to maintain and continue to upgrade the State’s regional rail freight network.

Other key investments in Victoria’s regional and rural transport network include:

• $56.9 million upgrade to South Gippsland Highway at Cox’s Bridge to protect the road against future flood events;
• $44.4 million over the first four years for the Nagambie Bypass on the Goulburn Valley Highway, the next stage in the upgrade of the Goulburn Valley Highway, a vital transport route connecting the fruit and vegetable growing industries with Melbourne;
• $27.6 million enhancement of Maryborough rail services would re-instate 14 weekly train trips starting in 2010 between Maryborough and Ballarat, with connections to Melbourne;
• $22.9 million to improve bus services in Geelong, including a new bus interchange in central Geelong, improved cross-town connections and better links to Deakin University and V/Line train services;
• $8.8 million to upgrade regional stations, including better customer amenities, walkways, drop-off areas, taxi zones and improved bus to train connections;
• $9.4 million for the first part of the Western Highway upgrade from Stawell to the South Australian border which will include the construction of a number of overtaking lanes, rest area improvements and planning of the Horsham Bypass;
• $8.8 million to start the Western Highway duplication from Ballarat to Stawell, beginning with the section from Ballarat to Burrumbeet; and
• $5.7 million for an $11.4 million Nhill Trailer Exchange site to the west of Nhill including planning, land acquisition and construction, in partnership with the Commonwealth.

Delivering World-Class Hospitals for Regional Victoria

The health of families in regional Victoria will benefit from one of the biggest regional hospital commitments in the State’s history with a $150.2 million regional hospital building program to deliver world-class hospitals for regional Victoria’s communities.

Mr Lenders said key regional hospital building projects included:

• Bendigo Hospital: $55 million for the first stage of redevelopment;
• Ballarat Hospital: $20 million has been provided to redevelop facilities to implement a Coronary Catheterisation Laboratory, six day beds, a women’s health and children’s unit;
• Geelong Hospital: $30 million for an extra 24 bed surgical ward, as well as eight extra mental health beds in the Swanston Centre;
• Alexandra Hospital and ambulance station redevelopment: $19 million to redevelop the Alexandra District Hospital, providing a new integrated hospital and community health service; and
• Warrnambool Hospital redevelopment Stage 1c: $26.2 million will deliver the final stage of the project, comprising the redevelopment of the allied health, rehabilitation, and mental health services with new community health facilities to form a single Integrated Care Centre.

“The Brumby Labor Government is also taking action on public dental waiting lists with $21.1 million to boost dental services to provide extra dental treatments for pensioners in Ballarat, Moe, Sale and Geelong – as well metropolitan Melbourne locations,” Mr Lenders said.

A Record Emergency Services Budget to Keep Victorians Safe

Regional Victorian communities will benefit from the $1.9 billion provided to Victoria Police state wide, to keep Victorians safe in the 2009 State Budget.

Mr Lenders said the 2009 State Budget would provide:

• $56.2 million to the Emergency Services Telecommunications Authority (ESTA) to improve its capacity to manage calls and dispatch units with the Country Fire Authority, Ambulance Victoria and the State Emergency Service;
• $57.1 million to purchase new radios and upgrade radio and pager networks used by SES and CFA, building on $450 million investment in communications since 2000; and
• $33.2 million to upgrade Department of Sustainability and Environment pagers and radios.

“The Brumby Labor Government is making the right investments to keep Victorian families safe and rebuild after the bushfires,” Mr Lenders said.

Mr Lenders said the Brumby Labor Government would also provide funding later this year to implement recommendations of the 2009 Bushfires Royal Commission in their interim report due in August this year, ahead of its final report due at the end of July next year.

Disciplined Financial Management

Mr Lenders said the 2009 State Budget delivered the tenth budget surplus in a row since 1999, providing a $165 million buffer for the coming financial year and a surplus for each of the three following years averaging $349 million.

“The 2009 State Budget builds on a decade of disciplined financial management and lays the building blocks for Victoria to capitalise on the worldwide recovery from the Global Financial Crisis,” Mr Lenders said.

Mr Lenders said Victoria’s economic growth was predicted to be affected by the Global Financial Crisis next financial year with growth of 0.25 per cent, followed by growth of 2.25 per cent as improvements in global economic conditions creates a recovery in domestic business investment and consumption which will drive economic growth in the 2010-11 financial year.

He said that unemployment would continue to be the world’s primary economic challenge with Victoria’s predicted unemployment rate reaching 7 per cent next financial year and 7.75 for the three years afterwards.

Mr Lenders said the Brumby Labor Government remained committed to having a competitive business environment as economic circumstances allow.