Senator FEENEY (2:33 PM) —Mr President, my question is to the Minister representing the Minister for Infrastructure, Transport, Regional Development and Local Government, Senator Conroy. Why is investment in infrastructure important for our economy? How are the government’s stimulus packages meeting the long-neglected need for infrastructure investment in Australia?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —I thank my very good friend Senator Feeney. The Rudd government understands that investment in nation-building infrastructure is critical to set Australia on the path to boosting productivity and prosperity. Australia’s productivity performance has lagged in the past decade, as critical investment in infrastructure was neglected. We are addressing the supply pressures and infrastructure bottlenecks that those opposite left and failed to address in their 11½ years in government. In the face of the worst global recession in 75 years, the government stimulus packages were carefully designed to provide appropriate staged support to the economy while providing a plan for the renewal of Australia’s long-neglected infrastructure.

Phase 1 provided immediate stimulus to boost consumer demand. Phase 2 commenced work on important infrastructure investments that can be delivered quickly. And phase 3 focused on longer-term infrastructure investments, which are supporting jobs now and will continue to provide benefits to the economy well into the future. The stimulus measures put in place by the Rudd government will leave a legacy of improved infrastructure in a range of areas right across Australia. (Time expired)

Senator FEENEY —Mr President, I have a supplementary question. Can the minister advise the Senate on the range of infrastructure and local government projects that are being commissioned across the country? How many projects under the Regional and Local Community Infrastructure Program have commenced and what is the process for funding-approval for that program? Can the minister also inform the Senate of the progress of community and transport infrastructure projects that will improve road and rail transport across Australia?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —The Rudd government is delivering record funding for regional and local infrastructure to support jobs, stimulate local economies and deliver long-lasting benefits in communities. All projects and funding have been approved for the Regional and Local Community Infrastructure Program and almost 3,000 projects had commenced as at 30 June 2009—3,000 projects! The government has already committed over $3.2 billion—100 per cent of program funding—to over 4,300 community and transport infrastructure projects across the country. Construction of four of the 14 major road projects has commenced. (Time expired)

Senator FEENEY —Mr President, I ask a futher supplementary question. Can the minister outline to the Senate the ways in which infrastructure spending supports Australia’s short-, medium- and long-term economic performance? How does investing in infrastructure contribute to productivity and how does it support economic performance in the face of a global economic downturn?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —Infrastructure spending boosts the supply side of the economy, increasing the ability of the economy to grow without triggering inflationary pressures. It sets the foundation for future economic growth and productivity. The government’s infrastructure plans will allow Australians to benefit from better service delivery and higher productivity growth in future years. The global economy remains fragile, and the outlook shows there will be challenges, but we need to support jobs and growth now by investing in a new generation of prosperity built on firmer foundations than the last one. When those opposite advocated doing nothing to support the jobs of Australians in the face of the worst global recession in 75 years, this government acted quickly and decisively. (Time expired