Wednesday, 23 February 2022

Department of Treasury and Finance

Budget papers 2021–22

Mr RICH-PHILLIPS (South Eastern Metropolitan) (17:43): I rise to make some remarks on the budget papers 2021–22 this evening, particularly in relation to the appropriation for the Department of Jobs, Precincts and Regions. This is a department which has a very broad remit, and in particular I would like to speak about funding provided to Regional Development Victoria through the regional development output group. It is interesting to note that in the budget last year funding for regional development was cut from $538 million in the 2020–21 year to just $256 million in the 2021–22 year. This is explained in the note as:

The lower 2021–22 target mainly reflects the funding profile of a range of initiatives within the output.

In other words, it means programs are ending and the funding is cut off. One area that has been a particular concern to me not only in the 2021–22 budget but over the life of this government has been its failure to provide funding to the Regional Aviation Fund.

This is something that was first established by John Brumby as Minister for Regional and Rural Development in 2006 and 2007 and continued by John Brumby as Premier, and it provided infrastructure funding to a range of regional airports throughout Victoria. That fund was subsequently expanded by the coalition government between 2010 and 2014 and provided infrastructure upgrades. It was targeted to operational infrastructure at some 22 airports across the state, with funding of around $20 million over that four-year period. We saw upgrades at airports including Bendigo, Barwon Heads, Latrobe Valley, Lethbridge, Tyabb, Kyneton, Orbost, Warracknabeal, St Arnaud, Benalla, Wangaratta, Warrnambool, Coldstream, Hopetoun, Kerang, Edenhope and Cohuna. Airports spread right across Victoria were the beneficiaries of infrastructure upgrades.

However, since the change of government, funding for that program has been cut. While the previous government provided $20 million of funding to 22 different regional airports in just four years, the current government over seven years has provided less than $6 million to just three airports, with $5 million going to Mildura, $327 000 to Mangalore and $530 000 to Corryong—so less than $6 million over seven years to only three projects. This is a major shortcoming of this government. There are numerous projects in regional communities which were awaiting funding at the time of the change of government in 2014 which have been cut off from the funding stream. This government has refused to provide funding to those projects throughout regional Victoria. Only three projects have been funded, with the bulk of the money going into Mildura and barely three-quarters of a million dollars going to two other projects in Mangalore and Corryong, so there is now a massive backlog of projects which need to be funded.

Funding to the Regional Aviation Fund should be reinstated. It was $5 million a year under the previous government. It was funded under the Brumby government. It has been cut off under this government and starved for funds over the last seven years. It is evident from the budget papers that funding to Regional Development Victoria has been substantially cut from the last budget to this budget. Those funds need to be reinstated and funding to the Regional Aviation Fund needs to be reinstated so that those projects which have been outstanding for a number of years can now be completed.