The ACT’s Federal Labor politicians claim that the new Budget, published this week, shows the Albanese government’s investment in Canberra after “a decade of disdain” from the previous Liberal/National government.

“For too long, Canberra was overlooked by a cynical Coalition Government that failed to meet the needs of a growing city and cherished National Capital,” Senator Katy Gallagher, Federal Minister for Finance, said.

“Tonight’s Federal Budget confirms that the Albanese Government values Canberra as the National Capital, and delivers on its commitments and to make investments that build a better future.”

Dr Andrew Leigh MP, Assistant Minister for Competition, Charities and Treasury, argued that the ACT only received one-fifth of its fair share of infrastructure spending in the last Budget.

“Tonight’s budget shows that Australia now has a government that takes our city seriously,” he said.

“This Budget represents one of the most substantial investments from a Federal Government in ACT infrastructure in over a decade,” Chief Minister Andrew Barr said.

Dr John Hawkins, senior lecturer at UC’s Canberra School of Politics, Economics and Society, welcomed several budget measures. “Too often the ACT has been neglected, as the lower house seats were seen as safe Labor and the two Senate seats always split between Labor and the Coalition. Perhaps David Pocock winning a Senate seat is already having some impact!”

Canberra Liberals leader Elizabeth Lee, however, described the Budget as “underwhelming and disappointing” for the ACT.

“It seems that under Federal Labor, the ACT is going to miss out,” she said. 38,000 Canberrans – including 9,000 children – live in poverty, she stated. “What we see from this Budget is no measure to address the spiralling cost-of-living crisis.”

The Canberra Liberals also accused the Federal Government of breaking their election promise to cut household power bills by $275; instead, households will face a 56 per cent increase in power bills over the next two years.

“That is, of course, on top of rising interest rates, rising grocery prices, petrol prices,” Ms Lee said. “And it is going to have a huge impact on many Canberra families.”

Budget measures for Canberra

More funding for light rail and upgrades to the AIS Arena are among budget items for the ACT this week.

The Federal government will provide an additional $85.9 million for Canberra Light Rail Stage 2A – bringing Commonwealth funding to more than $218 million, Senator David Pocock (Independent) noted. The government claims this will “ensure that Canberrans on the Southside get the same transport benefits as those who use the tram between Civic and Gungahlin”.

Ms Lee said there was little detail in the announcement, including whether light rail would be completed by 2030. She noted that the funding for the tram would apparently be delivered across six years, with only $15 million allocated for 2024–25.

“This is in stark contrast to what the ACT Transport Minister [Chris Steel] has been spruiking: that it would be a project that would take two years. This is raising more questions than it answers in terms of what this means for the future of stage 2A light rail. And of course, begs the question: if that’s the case, then when are Canberrans going to see the tram finally get to Woden? We see nothing of that.”

Mr Steel stated that the funding profile reflects the financial completion of the project, not the completion of construction. The timing of stage 2A operations will be determined through the procurement process underway.

Senator Pocock remarked that while the funding might seem “a hefty whack, it pales in comparison to the multi-billion-dollar new investments made in other states and territories, including the $1.9 billion being handed over to the NT for the “Middle Arm” project (the same as the last published cost estimate for what the whole of light rail Stage 2), which the Government is trying to pitch as infrastructure although it looks a lot like just another fossil fuel industry hand out”.

“Disappointingly, we are still only getting a fraction of the national spend and nothing like our share on a per capita basis, which is a bitter pill when you consider the ACT has, over the five years prior to this budget, received less than a quarter of our share of federal infrastructure funding,” Senator Pocock said. 

A National Security Office Precinct will be constructed in Barton, expected to be used by the Office of National Intelligence and the Department of Foreign Affairs and Trade. The government claims this will be “a permanent solution to the critical accommodation and capability requirements of several national security and other Commonwealth agencies”. Mr Barr said the project includes new Commonwealth Government buildings that will accommodate around 5,000 staff, new retail and hospitality amenities, and new structured car parking in the Parliamentary Triangle, and predicted that the investment will create thousands of jobs during the construction period 2023-2028.

Ms Lee, however, remarked that the project was started under the Liberal National Coalition government in early 2020.

The AIS Arena will be upgraded and reopened ($15 million) – a facility for sports, community events, and concerts.

Senator Pocock said the funding to get the AIS Arena up and running again was very welcome.

Ms Lee was not convinced. “Under over 20 years of this ACT Labor Greens government, the AIS has not been used for its purpose,” she said. “Despite all of the rhetoric, despite all the promises, I suppose time will tell as to what will happen with this funding announcement. But with a lot of the announcements that have been made in this budget about what is coming to the ACT, what we see is this Federal Labor government taking a leaf out of the ACT Labor Greens government in being very opaque, and not providing much detail whatsoever in relation to the funding announcements.”

A Youth Foyer will be built at the Woden CIT Campus ($10 million), including student accommodation and wraparound services for young people at risk of, or experiencing, homelessness.

To improve the health of Canberra’s waterways, $3.2 million will be spent on revegetation, weed control and water flow management efforts across the Ginninderra, Molonglo, and southern ACT catchments.

A new Garden City Cycle Route will be constructed ($5 million), to improve cycling connections on the Northbourne Avenue corridor through the inner-north suburbs of Canberra.

Gorman House Arts Centre will be revitalised ($5 million), to support Canberra’s arts community.

A scoping study ($750,000) will investigate a permanent home stadium for the University of Canberra Capitals WNBL team. Again, the University of Canberra will receive funds to help develop their sports hub precinct. “Sports health and management is one of the university’s specialisations,” Dr Hawkins noted.

Other projects funded in the ACT, Mr Barr said, include $38.5 million for Scrivener Dam upgrades; Weston Creek Tennis Club upgrades; and three community batteries in Casey, Dickson and Fadden.

“The funding of community batteries, including in the ACT, is most welcome on both environmental and economic grounds,” Dr Hawkins said.

The ACT Government, Mr Barr said, also welcomed the investment in regional transport connectivity, $65 million to construct Dunns Creek Road between Googong and Canberra, and $17.4 million to upgrade the road from the Brindabella Valley to the ACT.

The Budget also provided $72.9 million to help the Australian Public Service move away from consulting and rebuild in-house capacity.

Mr Barr said that the Budget sent a clear signal that the Albanese Government would treat the APS with respect.

“There is no decentralisation and no vicious Budget cuts that [were] a Budget legacy of successive Liberal Governments. In fact, we see the opposite with over $70 million investment to re-build and reform the Australian Public Service, including a $25 million capability re-investment fund. 

“To have the Coalition Opposition use the most basic of support for the nation’s capital as an aggressive attack on the Budget is disgraceful. [National Party leader David Littleproud] describing public servants as having ‘three-fifths of bugger all’ knowledge of what happens in this country shows that the Coalition have no interest in the Nation’s Capital, and no interest in supporting the delivery of good public services in Australia.”

Senator Pocock said: “Despite what critics like to say about this being some sort of special deal for Canberra, only 38 per cent of the APS is based here. The APS serves all Australians, and is spread out around our nation, so this is an investment that will benefit everyone.”

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