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Tuesday, 28 April 1987
Page: 1933

(Question No. 1707)

Senator Kilgariff asked the Minister representing the Minister for Transport, upon notice, on 25 March 1987:

(1) Does the Federal Government accept the recommendations of the Cameron Inquiry into Federal Road Grants.

(2) Does the Federal Government accept the 4 indicator formula which the Inquiry recommends be used to determine funding grants.

(3) Does the Minister for Transport accept that the cost of road construction, maintenance and upgrading is higher in remote areas, where material, freight and wage costs are higher; if so, does the Minister agree that any road funding formula should take account of those higher than average costs.

(4) How does the Minister believe the Cameron Inquiry's recommendations meet this requirement.

Senator Gietzelt —The Minister for Transport has provided the following answer to the honourable senator's question:

(1) and (2) Yes.

(3) and (4) The Cameron Report specifically addressed the issue of cost disabilities in developing indicators of road funding requirements. However it was unable to find an acceptable means of measuring average State costs that are comparable from State to State nor distinguish the effect of each of the various factors producing cost differences. Almost every State and the Northern Territory maintained that its costs were higher or rising faster than in other States.