08/09 state budget announcements

[muzzamo]

More details

THE state's ailing public transport system has received a $2 billion injection described as the "single biggest committment to public transport in the state's history" by Treasurer Kevin Foley.
The centrepiece of the massive announcement is an extension of the Glenelg-city tramline to West Lakes, Port Adelaide and Semaphore at a cost of $162 million.

Over the next four years, $648.4 million will be spent on the first leg of the extension, the purchase of new light rail vehicles and buses, electrification of the rail network and a new ticketing system.

Speculation has been rife the Government would extend the tramline following the recently announced upgrade of AAMI Stadium.

Work will begin "immediately" on the first leg of the extension, to the Entertainment Centre, and trams are expected to be running on the new line by 2010.

A park-and-ride facility will be set up at the centre where western suburbs commuters can park their cars for a fee and commute by tram to the city.


To address capacity issues on the already overcrowded tram service, the Government has committed to buying or leasing six new or second-hand trams "immediately".

A further 15 hybrid tram-trains and 50 new electric trains will be bought and 58 diesel trains will be refurbished and converted to electric over the same period.

Mr Foley described the transport budget as a "blueprint for redeveloping our transport network that will help provide a framework for the future development of our city and state".

In the northern and southern suburbs, rail was the focus.

Electrification of the Noarlunga and Outer Harbour lines will begin at a total cost of $292 million and the start of concrete re-sleepering of the Gawler line will cost $116 million.

On the roads, an extra 80 buses will be added to the fleet over the next four years at a cost of $64.4 million.

This is in addition to the 133 replacement buses to be purchased under and $102.2 million program.

A long-awaited replacement for the more than 20-year-old Crouzet ticketing system has been promised with a commitment of $29 million to begin purchasing new machines

[muzzamo]

The budget document is now online

http://www.treasury.sa.gov.au/dtf/budge ... budget.jsp

[Wayno]

full budget document here ==> http://www.treasury.sa.gov.au/dtf/budge ... budget.jsp

[Norman]

I'll be off for a while reading this. Goodnight

[Norman]

From the Budget:
$1.1 billion over the next four years to upgrade the metropolitan rail network and ticketing system;

THis is GREAT news. This will finally allow more buses on the road because ATM there are no more ticket validators available.

More for transport:

This budget funds the beginning of a 10 year, $2.0 billion investment to upgrade, electrify and extend the metropolitan rail network.
The 2008‑09 Budget provides $648.4 million over the next four years to commence this urban rail reform program.
The 10 year program will include electrification, gauge standardisation, concrete resleepering, light rail network extensions and new electric rail vehicles.
The new electric rail services will be faster and quieter, delivering reduced carbon emissions and improved air quality.
Commencing in 2008‑09, the budget provides for the tram network to be extended along Port Road from North Terrace to the Entertainment Centre and for the purchase of new light rail vehicles.
Electrification of the Noarlunga line will commence in 2008‑09, and is expected to be completed in 2013‑14.
Electrification of the Outer Harbor line will commence in 2010‑11, and once connected to the tram network, will enable future extensions of light rail services to West Lakes, Semaphore and Port Adelaide.
The concrete resleepering program will also continue with work commencing on the Gawler line in 2008‑09. Electrification works will then commence on this line
in 2012‑13.
The 10 year program will deliver 50 new electric trains, 58 converted electric trains, 15 new hybrid tram/trains and additional light rail vehicles.
The government is committed to achieving the South Australia’s Strategic Plan target of doubling weekday passenger transport use to 10 per cent by 2018.
In addition to the extension and electrification of the rail system, the 2008‑09 Budget delivers significant increases to capacity in our public transport system:
• $64.4 million to add and operate 80 additional buses in the fleet, providing up to nine million extra passenger journeys over four years, in addition to the 133 new buses to be purchased under the existing $102.2 million bus replacement program;
• $40.2 million for upgrades to rail infrastructure and equipment; and
• $29.0 million over three years for a new public transport ticketing system.

[UrbanSG]

This is some pretty significant debt starting to develop for the State reported in the article below. I just hope the mining boom plays out as forecast.

I am very happy with the huge shake-up to the train system. In a few years I might start catching the train again after giving up last year due to constant late trains and a crappy standard

From the Australian website.

SA budget reaches $2bn into red to fund infrastructure
June 05, 2008

SOUTH Australia will plunge almost $2 billion into debt to finance the biggest infrastructure splurge in the state's history.

But Treasurer Kevin Foley said today he was “not at all” concerned about heading deep into the red to finance the plans, which include effectively rebuilding the public transport system.

“You can't build and underpin the social and economic fabric of the state without prudent, cautious borrowing and that is what we are doing,” he said delivering the Rann Labor Government's seventh budget.

SA's net debt will rise from $82 million currently to $1.983 billion in 2011-12.

Mr Foley said he was confident about the state's economic outlook, forecasting a budget surplus of $160 million in the next financial year, rising to $424 million in 2011-12.

“I'm very bullish about the medium to long term in this economy, but I do accept in the next 12 months things will be a little lighter, given the obvious impacts of credit crunches and the fuel crisis,” he said.

The budget forecast the state's economic growth would remain stable at 2.75 per cent in the next financial year, while employment growth of 1.5 per cent in 2008-09 and 2009-10 would fall to 1 per cent in the next two budget years.

Mr Foley's budget detailed $648 million in funding over four years for rail and light rail investment to kick off a $2 billion, decade-long infrastructure program, including new tramlines, electrification of major rail lines and extra buses.

“This is a big-picture view by a Labor government that is not looking just at the next election, but putting in place a program ... that will serve our state for decades to come,” Mr Foley said.

The public transport reforms of Adelaide's antiquated system follow previous government commitments to build a new $1 billion hospital in central Adelaide and a $1.1 billion desalination plant south of the city.

“We will be a government that has rebuilt the state,” Mr Foley said.

The Treasurer set himself on collision course with public servants by outlining targets of 6 per cent in savings from the sector over the next four years.

“(It's) a 6 per cent efficiency target aimed solely and exclusively at the administration of government, not the frontline services.

“What I'm foreshadowing is a significant attack, in a sense, on bureaucracy and government administration that we need to make efficient.”

Mr Foley announced the first-home buyer stamp duty concession scheme would be replaced with a first-home bonus grant of $4000, available for houses up to $400,000 in value.

He said payroll tax would, from July next year, be cut 0.05 per cent from the current 5 per cent, while the budget committed $462 million over four years to health initiatives.

Public transport fees, motor vehicle charges and speeding fines would all rise, some by more than 7 per cent.

Mr Foley said the South Australian minerals sector “continues to boom” but offered little to the mining industry. Just over $14 million was allocated to speed up mine assessment and approval processes.

[cruel_world00]

This is some pretty significant debt starting to develop for the State reported in the article below. I just hope the mining boom plays out as forecast.

I am very happy with the huge shake-up to the train system. In a few years I might start catching the train again after giving up last year due to constant late trains and a crappy standard

From the Australian website.

SA budget reaches $2bn into red to fund infrastructure
June 05, 2008

SOUTH Australia will plunge almost $2 billion into debt to finance the biggest infrastructure splurge in the state's history.

But Treasurer Kevin Foley said today he was “not at all” concerned about heading deep into the red to finance the plans, which include effectively rebuilding the public transport system.

“You can't build and underpin the social and economic fabric of the state without prudent, cautious borrowing and that is what we are doing,” he said delivering the Rann Labor Government's seventh budget.

SA's net debt will rise from $82 million currently to $1.983 billion in 2011-12.

Mr Foley said he was confident about the state's economic outlook, forecasting a budget surplus of $160 million in the next financial year, rising to $424 million in 2011-12.

“I'm very bullish about the medium to long term in this economy, but I do accept in the next 12 months things will be a little lighter, given the obvious impacts of credit crunches and the fuel crisis,” he said.

The budget forecast the state's economic growth would remain stable at 2.75 per cent in the next financial year, while employment growth of 1.5 per cent in 2008-09 and 2009-10 would fall to 1 per cent in the next two budget years.

Mr Foley's budget detailed $648 million in funding over four years for rail and light rail investment to kick off a $2 billion, decade-long infrastructure program, including new tramlines, electrification of major rail lines and extra buses.

“This is a big-picture view by a Labor government that is not looking just at the next election, but putting in place a program ... that will serve our state for decades to come,” Mr Foley said.

The public transport reforms of Adelaide's antiquated system follow previous government commitments to build a new $1 billion hospital in central Adelaide and a $1.1 billion desalination plant south of the city.

“We will be a government that has rebuilt the state,” Mr Foley said.

The Treasurer set himself on collision course with public servants by outlining targets of 6 per cent in savings from the sector over the next four years.

“(It's) a 6 per cent efficiency target aimed solely and exclusively at the administration of government, not the frontline services.

“What I'm foreshadowing is a significant attack, in a sense, on bureaucracy and government administration that we need to make efficient.”

Mr Foley announced the first-home buyer stamp duty concession scheme would be replaced with a first-home bonus grant of $4000, available for houses up to $400,000 in value.

He said payroll tax would, from July next year, be cut 0.05 per cent from the current 5 per cent, while the budget committed $462 million over four years to health initiatives.

Public transport fees, motor vehicle charges and speeding fines would all rise, some by more than 7 per cent.

Mr Foley said the South Australian minerals sector “continues to boom” but offered little to the mining industry. Just over $14 million was allocated to speed up mine assessment and approval processes.

I saw that. Interesting to see the State taking a risk.

[Wayno]

i can't seem to find any detail about the income (royalty/dividend/tax) generated from the future mining boom. Surely they have detailed guesstimates and are making those figures public?

I only found details on "mining exploration" as a % of the overall country. Not very helpful at all.

[Wayno]

i can't seem to find any detail about the income (royalty/dividend/tax) generated from the future mining boom. Surely they have detailed guesstimates and are making those figures public?

I only found details on "mining exploration" as a % of the overall country. Not very helpful at all.

i found this statement which is interesting:

"However, no allowance has been made for the impacts of the yet to be approved expansion of the Olympic Dam mine. Should this project proceed, growth in employment and working age population are likely to be boosted."

So further economic upside is possible! good to see we are not overly relying on this single mining project.

[Shuz]

i can't seem to find any detail about the income (royalty/dividend/tax) generated from the future mining boom. Surely they have detailed guesstimates and are making those figures public?

I only found details on "mining exploration" as a % of the overall country. Not very helpful at all.

Well, like for instance - the Olympic Dam mine - when its in full production, is already estimated as a $20b+ reserve of minerals. The State will be expected to recieve (over its 100yr+ lifetime) somewhere between $300m-$700m. (Min 1.5%-Max 3.5% royalty rates) which equate to $3m-$7m per annum. Then theres all the other mines to take into consideration...

So its not a large amount by yearly standards, but during its lifetime gives the State the equivalent to fund one or two Port tram extensions

[crawf]

Yes!!!!!!

I had a feeling this year was going to the be the year that the PT system in SA was going to get a major overhaul.

Well done to Labor, very impressed. I think Adelaide is going to go from having the worst public transport system in Australia to having the best .

[Will409]

Time for me to do some dancing represting nothing in particular, every railfan's wildest dreams in this state have been answered! Electrification of the suburban system was first proposed back in 1906, budgeted for in 2008. It's finally happening plus more!!!

[crawf]

I wonder what will be annouced in the next years budget considering we are already getting

- $2bn Public Transport Overhaul!
- $1.7m new major hospital (to replace the RAH)
- Upgrades for other major hospitals
- New prison facilities at Murray Bridge & Cavan (replacing Yatala & Magill)
- New desal plant & expansion of Mt Bold
- 6 Super Schools
- South Road Upgrade
- Port River Expressway
- Northern Expressway

aswell as other major projects

As per usual theres quite alot of people who aren't happy that $2 billion is going straight towards Adelaide's aging PT network. However I'm just over the moon, the train network has always been something I loath in this city.

Historic day for SA

[aussie2000]

Yes!!!!!!

I had a feeling this year was going to the be the year that the PT system in SA was going to get a major overhaul.

Well done to Labor, very impressed. I think Adelaide is going to go from having the worst public transport system in Australia to having the best .

like the airport

[Wayno]

i can't seem to find any detail about the income (royalty/dividend/tax) generated from the future mining boom. Surely they have detailed guesstimates and are making those figures public?

I only found details on "mining exploration" as a % of the overall country. Not very helpful at all.

Well, like for instance - the Olympic Dam mine - when its in full production, is already estimated as a $20b+ reserve of minerals. The State will be expected to recieve (over its 100yr+ lifetime) somewhere between $300m-$700m. (Min 1.5%-Max 3.5% royalty rates) which equate to $3m-$7m per annum. Then theres all the other mines to take into consideration...

So its not a large amount by yearly standards, but during its lifetime gives the State the equivalent to fund one or two Port tram extensions

Found it! The expected royalty income in 08/09 is $163m, up from $144m in 07/08. Only 2 years ago it was less than $80m. All very nice! and remember that these are pre-mining boom results. Shuz is right - this will double/triple in the near future, and maybe even increase 5-8times beyond today's levels - which is more than enough to fund several BIG infrastructure projects. i'm giddy with excitement...