6     Infrastructure Investment

Key Issues

·       The 2018‑19 Budget commits $2.6 billion in funding over the Budget and Forward Estimates period to drive infrastructure development across Tasmania, with a further $1.1 billion in new infrastructure funding included in this Budget. This significantly exceeds the Government’s commitment to increase infrastructure expenditure by 20 per cent compared to the long-term expenditure average.

·       The Government maintains a strong focus on ensuring that infrastructure investment within Tasmania is directed towards projects that:

-  meet the demands of population and economic growth;

-  increase safety for the community;

-  harness the existing strengths of the Tasmanian economy;

-  stimulate economic activity and jobs growth across all areas of the State; and

-  lead to an increase in the efficiency of service delivery across both the private and public sectors.

·       The additional $1.1 billion in new infrastructure investment included in this Budget primarily reflects the implementation of the Government’s 2018 State election commitments. These projects reflect the Government’s policy priority areas of health, education, affordable housing and law and order.

·       Significant infrastructure investment reflected in the 2018-19 Budget and Forward Estimates includes:

-  roads and bridges ($1.1 billion);

-  hospitals and health ($475.6 million);

-  human services and housing ($205.3 million);

-  schools and education ($192.2 million); and

-  law and order ($169.7 million).

·       The level of infrastructure investment reflected in the 2018‑19 Budget is above long-term historical infrastructure investment levels. As a result, the Government continues to achieve its infrastructure related Fiscal Strategy Action which requires that the level of investment in non-financial assets exceeds the value of depreciation over the Budget and Forward Estimates period.


Overview

Over the 2018‑19 Budget and Forward Estimates period, the Government will invest $2.6 billion in vital community infrastructure projects, including:

·       roads and bridges ($1.1 billion);

·       hospitals and health ($475.6 million);

·       human services and housing ($205.3 million);

·       schools and education ($192.2 million);

·       law and order ($169.7 million);

·       tourism, recreation and culture ($142.2 million);

·       ICT to support service delivery ($54.2 million); and

·       other infrastructure ($21 million).

The record investment of $2.6 billion in infrastructure, over a four year period, is significant and above long‑term historical infrastructure investment levels. Most importantly, this level of investment is $1 billion above the infrastructure investment of $1.6 billion that the Government budgeted for in the 2014-15 Budget. This increase has been made possible due to the Government’s commitment to strong fiscal management and the significant improvement in the Budget position.

The Government will work with agencies to manage the roll-out of this record level of infrastructure investment. The Government’s infrastructure program represents a significant forward pipeline of infrastructure investment that can be relied upon by Tasmanian businesses and industry and that will stimulate economic activity and jobs growth across the State. The pipeline includes major projects such as the $576 million new Bridgewater Bridge and the $270 million new Northern Prison.

Important infrastructure investment outside of the General Government Sector is also planned by Government businesses. There are also a number of potential projects of nationwide significance being progressed by the State’s electricity businesses, in particular a second electricity interconnector between Victoria and Tasmania and the Battery of the Nation project. As these projects progress, it means billions of dollars in new infrastructure investment in Tasmania over the next decade.

In order to manage this unprecedented infrastructure investment, the Government will this year:

·       develop a 30-year Infrastructure Strategy;

·       deliver a 10-year Infrastructure Pipeline detailing the major Government infrastructure projects and spending proposed across inner budget agencies, Government Business Enterprises and State-owned Corporations; and

·       establish a construction industry roundtable to ensure that the commercial sector, along with local government, work collaboratively with the State Government to maximise the opportunity and to deliver, efficiently and effectively, the record levels of investment occurring now and, importantly, into the future. The construction industry roundtable will deliver a whole-of-sector view on the short, medium and long‑term goals that need to be achieved to ensure that the capacity and capability of the sector is well placed to deliver the forecast record levels of infrastructure investment.  

The record $2.6 billion General Government Sector infrastructure investment program includes State funding for co‑funded (Australian and State Government) roads projects that is reflected in the Government’s Roads for Our Future Program. In accordance with established Budget management practice, a provision of $180 million has been included for additional Australian Government roads funding (pending finalisation of the next five year agreement). This is based on Australian Government roads funding over recent years and provides a more accurate estimate of the likely level of infrastructure expenditure that will occur over the Forward Estimates period.

It is essential that a strong Budget position is maintained in order to facilitate the funding of infrastructure investment on a sustainable basis. The infrastructure program has been formulated having regard to the Government’s Fiscal Principles contained in its Fiscal Strategy and will deliver on Strategic Action 5, namely, infrastructure investment will maintain existing assets, respond to economic and population growth and reflect the changing needs of the community.

Chart 6.1 outlines the infrastructure investment from 2012‑13 to 2017‑18 and the 2018‑19 Budget and Forward Estimates. The chart includes the provision for Estimated Future Australian Government Roads Funding.

Chart 6.1:        Infrastructure Investment, 2012‑13 to 2021‑22

Title: Infrastructure Investment, 2012-13 to 2021-22 - Description: The chart shows the Government’s $2.6 billion infrastructure program over the Budget and Forward Estimates period. This is well above historical infrastructure investment levels.


 

Infrastructure Investment Projects By Agency

Table 6.1 details infrastructure investment expenditure by agency and the provision for Estimated Future Australian Government Roads Funding.

Table 6.1:         Infrastructure Expenditure by Agency1,2

 

2017‑18


Budget

2017-18

Estimated

Outcome

2018‑19

 

Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

$m

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

Agencies

 

 

 

 

 

 

Communities Tasmania

40.0

61.4

65.3

56.6

54.6

38.8

Education

48.9

39.2

59.0

47.1

39.9

29.8

Finance‑General

27.7

11.8

24.8

12.3

10.0

10.0

Health

203.3

147.4

212.3

193.4

49.8

20.1

Justice

2.1

4.7

13.7

42.2

38.0

43.3

Legislative Council

0.7

0.7

….

….

….

….

Police, Fire and Emergency Management

8.0

14.1

6.9

10.1

9.8

5.6

Premier and Cabinet

2.2

3.3

0.3

0.3

0.3

0.3

Primary Industries, Parks, Water and Environment

23.5

16.8

42.1

29.7

30.2

33.7

State Growth

294.6

230.7

316.8

264.5

244.7

292.9

Treasury and Finance

3.1

3.6

1.5

….

….

….

 

 

 

 

 

 

 

Statutory Authorities

 

 

 

 

 

 

Inland Fisheries Service

….

….

0.2

0.1

….

….

Marine and Safety Tasmania

0.6

0.6

1.6

0.8

1.5

1.7

Royal Tasmanian Botanical Gardens

….

….

1.0

2.6

….

….

TasTAFE

2.2

2.2

6.9

12.0

….

….

 

 

 

 

 

 

 

ALLOCATED INFRASTRUCTURE EXPENDITURE

657.0

535.9

752.4

671.6

478.6

476.1

 

 

 

 

 

 

 

Estimated Future Australian Government Roads Funding3

….

….

….

60.0

60.0

60.0

 

 

 

 

 

 

 

TOTAL INFRASTRUCTURE EXPENDITURE

657.0

535.9

752.4

731.6

538.6

536.1

 

 

 

 

 

 

 

 


 

Notes:

1.   This Table includes expenditure (both Purchases of Non‑Financial Assets and associated expenses) for all infrastructure projects, but does not include minor asset purchases for non‑infrastructure projects. For these reasons, the Table is not equivalent to the Purchases of Non‑Financial Assets presented in chapter 4 of this Budget Paper. Table 6.4 provides a reconciliation of Purchases of Non‑Financial Assets to Total Infrastructure Expenditure.

2.   Estimated Outcome expenditure for some agencies, when compared with the 2017-18 Original Budget, may reflect the expenditure of funding carried forward from previous years and additional funding provided throughout the year for specific projects.

3.   The existing five year roads funding agreement with the Australian Government expires at the end of 2018‑19. Based on Australian Government roads funding over recent years, an Estimated Future Australian Government Roads Funding provision of $60 million has been included in 2019‑20, 2020-21 and 2021-22 to provide a more accurate estimate of the likely level of infrastructure expenditure that will occur over the Forward Estimates period.

 

Table 6.2 provides infrastructure investment project details by agency, including projects which are continuing from a previous Budget year and new infrastructure projects that have been funded by the Government in the 2018‑19 Budget. Completion dates reflect the current best estimates.

Table 6.2:         Infrastructure Investment Project Details by Agency1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

DEPARTMENT OF COMMUNITIES TASMANIA

 

 

 

 

 

 

 

 

Affordable Housing Strategy Stage I

Existing

2015

2019

73.5

20.0

….

….

….

Affordable Housing Strategy Stage II2

New

2018

2023

125.0

25.0

25.0

25.0

25.0

Ashley Youth Detention Centre Redevelopment

New

2018

2021

7.3

1.0

3.0

3.3

….

Housing Program3

Existing

 

Ongoing

na

17.2

26.6

17.2

12.7

Housing Fund

Existing

2008

2022

60.0

1.1

1.1

1.1

1.1

Indoor Multi-sports Facility - Southern Tasmania

New

2018

2021

10.0

1.0

1.0

8.0

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

65.3

56.6

54.6

38.8

 

 

 

 

 

 

 

 

 

DEPARTMENT OF EDUCATION

 

 

 

 

 

 

 

 

Boat Harbour Primary School

Existing

2017

2019

1.8

1.4

….

….

….

Devonport High

New

2020

2022

10.5

….

….

5.3

5.3

East Devonport Primary School

Existing

2017

2018

1.8

0.5

….

….

….

East Launceston Primary School

Existing

2016

2019

4.5

4.3

….

….

….

 

 

 

 

 

 

 

 

 

Table 6.2:           Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

Education Act Implementation - Capital

Existing

2018

2020

18.0

6.0

12.0

….

….

Hobart College

Existing

2018

2020

2.5

0.8

1.7

….

….

Illawarra Primary School

Existing

2017

2019

2.9

2.7

….

….

….

Lansdowne Crescent Primary School

Existing

2019

2021

4.7

….

1.1

3.6

….

Legana Primary2

New

2021

2023

20.0

….

….

….

5.0

Molesworth Primary School

Existing

2019

2021

1.9

….

0.3

1.6

….

Montagu Bay Primary School

Existing

2018

2019

1.8

0.8

1.0

….

….

New Brighton High School2

New

2020

2024

30.0

….

….

1.0

2.0

New K-12 Penguin School

New

2018

2021

20.0

1.0

4.0

7.5

7.5

New K-12 Sorell School

New

2018

2021

22.0

1.0

10.5

10.5

….

Parklands High School

Existing

2015

2019

9.1

1.0

....

....

….

Queechy High School

Existing

2017

2019

5.0

2.5

….

….

….

Revitalising Cosgrove High School2

New

2021

2023

20.0

….

….

….

5.0

Riverside High School

Existing

2017

2020

12.0

8.0

3.6

….

….

Riverside Primary School

Existing

2017

2018

2.5

0.5

….

….

….

School Farm Redevelopment (Brighton/JRLF)

New

2018

2019

4.3

4.3

….

….

….

School Farm Redevelopment (Sheffield)

New

2019

2020

3.0

….

3.0

….

….

School Infrastructure Upgrades

New

2018

2021

6.8

1.1

3.2

2.5

….

Six New Early Learning Hubs2

New

2019

2024

21.0

….

3.5

3.5

3.5

Snug Primary School

Existing

2018

2019

2.5

2.5

….

….

….

Sorell School

Existing

2018

2019

3.8

3.7

….

….

….

Southern Support School

Existing

2018

2019

4.3

4.3

….

….

….

Spreyton Primary School

Existing

2019

2021

1.7

….

0.3

1.4

….

St Marys District School

Existing

2016

2019

5.0

2.6

….

….

….

Taroona High School

Existing

2017

2019

5.0

4.8

….

….

….

Tasmanian Archives and Heritage Office

Existing

2018

2019

3.0

2.4

….

….

….

 

 

 

 

 

 

 

 

 

Table 6.2:           Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

Year 7‑12 Implementation Plan - Capital

New/
Existing

2014

2022

16.5

3.0

3.0

3.0

1.5

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

59.0

47.1

39.9

29.8

 

 

 

 

 

 

 

 

 

FINANCE-GENERAL

 

 

 

 

 

 

 

 

Digital Transformation Priority Expenditure Program

Existing

 

Ongoing

na

10.0

10.0

10.0

10.0

Digital Transformation - Project Unify

Existing

2017

2020

11.9

7.8

2.3

….

….

Launceston Government Office Accommodation

Existing

2017

2019

7.0

7.0

….

….

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

24.8

12.3

10.0

10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DEPARTMENT OF HEALTH

 

 

 

 

 

 

 

 

25 New Mental Health Beds in Southern Tasmania

New

2018

2019

11.8

6.8

5.0

….

….

Aeromedical Helicopter Service

New

2018

2019

1.6

1.6

….

….

….

Air Conditioning Upgrades - Statewide

New

2018

2019

4.9

2.7

2.2

….

….

Better accommodation for health professionals on Flinders Island

New

2018

2019

0.5

0.5

….

….

….

Burnie and Glenorchy Ambulance Stations

New

2018

2021

12.0

4.0

4.0

4.0

….

Campbell Town Ambulance Station

Existing

2019

2021

3.0

0.1

1.2

1.6

….

Community Rapid Response - Establishment

New

2018

2019

0.4

0.4

….

….

….

Health Transport and Coordination Infrastructure

Existing

2017

2019

10.0

4.1

….

….

….

Kingston Health Centre

Existing

2013

2019

6.5

5.2

….

….

….

Table 6.2:           Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

Launceston General Hospital - More Car Parking

New

2018

2020

5.0

2.5

2.5

….

….

Launceston General Hospital - Redevelopment2

New

2018

2024

87.3

3.0

9.7

12.5

12.0

Launceston General Hospital Ward Upgrades ‑ Ward 4K Upgrades

Existing

2016

2020

 

7.9

6.3

0.3

….

….

Maternity Services at the North West Regional Hospital

New

2018

2020

2.1

0.8

1.3

….

….

Mersey Community Hospital Capital Upgrades

Existing

2018

2021

35.0

8.6

8.3

17.5

….

Mersey Hospital Upgrades

Existing

2013

2019

1.9

1.1

….

….

….

Midlands Multipurpose Centre (Oatlands Hospital) Upgrade

New

2018

2020

2.5

1.3

1.3

….

….

Priority Infrastructure Works - Health

Existing

2017

2019

2.0

1.7

….

….

….

Royal Hobart Hospital Pharmacy Redevelopment

Existing

2017

2020

3.8

1.0

2.8

….

….

Royal Hobart Hospital Redevelopment4

Existing

2011

2019

469.2

142.9

134.7

….

….

Royal Hobart Hospital -Ward Upgrades2

New

2019

2023

28.1

….

2.6

2.6

5.0

Smithton Ambulance Training Facility

New

2018

2020

1.1

0.5

0.6

….

….


 

Table 6.2:           Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

St Helens Hospital Redevelopment

Existing

2016

2019

12.1

7.8

….

….

….

Stage 2 of the King Island Hospital Redevelopment

New

2018

2022

10.5

1.1

3.1

3.1

3.1

Statewide - Rural Hospital and Ambulance Station Upgrade Fund

New

2018

2021

15.0

5.0

5.0

5.0

….

Statewide Hospital Critical Facility Upgrades

Existing

2018

2020

10.5

1.7

6.6

….

….

Statewide Rural Health Facility Infrastructure Upgrades

Existing

2019

2021

4.7

0.5

1.5

2.2

….

Training Equipment and Stretchers

New

2018

2019

1.1

1.1

….

….

….

THS Infrastructure Upgrades

Existing

2019

2021

1.9

….

0.7

1.2

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

212.3

193.4

49.8

20.1

 

 

 

 

 

 

 

 

 

DEPARTMENT OF JUSTICE

 

 

 

 

 

 

 

 

An Upgraded Burnie Court Complex2

New

2019

2023

15.0

….

1.0

3.0

4.0

iplan Stage Two: Integrated Planning and Building Portal

Existing

2017

2020

1.9

0.9

0.5

….

….

New Northern Prison2

New

2019

2029

270.0

….

5.0

10.0

30.0

New Southern Remand Centre

New

2018

2021

70.0

10.0

35.0

25.0

….

O’Hara Pre-Release Facility - Additional Units

Existing

2018

2020

1.5

0.8

0.7

….

….

Risdon Prison Shared Facilities Upgrade

New

2021

2022

9.3

….

….

….

9.3

 

 

 

 

 

 

 

 

 

 


 

Table 6.2:           Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

Ron Barwick Minimum Security Prison - Cell Recommissioning 

Existing

2017

2019

3.0

2.0

….

….

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

13.7

42.2

38.0

43.3

 

 

 

 

 

 

 

 

 

DEPARTMENT OF POLICE, FIRE AND EMERGENCY MANAGEMENT

 

 

 

 

 

 

 

 

Additional Police Vessels2

New

2022

2023

6.0

….

….

….

….

Body Worn Video

Existing

2019

2021

0.7

0.1

….

0.7

….

Crackdown on Anti-social Driving

New

2018

2022

0.4

0.1

0.1

0.1

0.1

Increased Police Support

New

2020

2021

0.1

….

0.1

….

Large Vessel Replacement Program

 

Existing

2014

2021

13.3

….

1.2

3.5

….

Longford Police Station

New

2018

2020

5.0

2.0

3.0

….

….

New Norfolk Police Station

New

2018

2020

5.0

2.5

2.5

….

….

Sorell Emergency Services Hub

New

2018

2022

12.0

0.5

1.5

5.0

5.0

Supporting Our Emergency Services Volunteers

New

2018

2022

2.0

0.5

0.5

0.5

0.5

Upgrade Police Housing

Existing

2015

2020

5.0

1.3

1.3

….

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

6.9

10.1

9.8

5.6

 

 

 

 

 

 

 

 

 

DEPARTMENT OF PREMIER AND CABINET

 

 

 

 

 

 

 

 

Service Tasmania Shops Capital Investment

Existing

 

Ongoing

na

0.3

0.3

0.3

0.3

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

0.3

0.3

0.3

0.3

 

 

 

 

 

 

 

 

 

 


 

Table 6.2:          Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

DEPARTMENT OF PRIMARY INDUSTRIES, PARKS, WATER AND ENVIRONMENT

 

 

 

 

 

 

 

 

Biosecurity Risk Management and Truck  and Machinery Washes

New

2018

2022

2.0

0.2

0.6

0.6

0.6

Cradle Mountain Experience2,5

New

2019

2023

65.0

3.0

13.0

15.0

20.0

Cradle Mountain Visitor Experience

Existing

2017

2020

21.8

17.7

3.0

….

….

Crown Land Services ‑ Structural Asset Upgrades

Existing

 

Ongoing

na

0.6

0.6

0.6

0.6

Fisheries Integrated Licensing and Management System

New/
Existing

2017

2020

6.2

0.9

1.5

1.5

1.5

Implementing the Bee Industry Futures Report

New

2019

2019

0.5

0.5

….

….

….

Improved Statewide Visitor Infrastructure

New

2019

2022

16.0

4.0

4.0

4.0

4.0

June 2016 Floods - Parks Infrastructure

Existing

2016

2019

11.9

1.5

….

….

….

Maria Island Rediscovered

Existing

2018

2019

1.7

1.1

….

….

….

Modernise our Research Farms

New

2019

2021

7.0

1.0

3.0

3.0

….

Move 100 DPIPWE staff to North

New

2019

2020

0.6

0.2

0.4

….

….

National Parks - Maintenance Boost

New

2019

2022

8.0

2.0

2.0

2.0

2.0

Next Iconic Walk2

New

2019

2022

20.0

0.5

1.0

2.5

5.0

Orange-bellied Parrot Facility

Existing

2018

2018

2.5

2.0

….

….

….

Recreational Fishing - Improved Boat and Trailer Parking

New

2019

2021

2.2

0.6

0.6

1.0

….

Table 6.2:          Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

Three Capes Track - Stage 3

Existing

2015

2018

4.0

2.5

….

….

….

Tourism Infrastructure in Parks

Existing

2018

2019

8.0

4.0

….

….

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

42.1

29.7

30.2

33.7

 

 

 

 

 

 

 

 

 

DEPARTMENT OF STATE GROWTH

 

 

 

 

 

 

 

 

A Workforce for Now and the Future

New

2017

2021

0.2

0.1

0.1

0.1

….

Roads Program Expenditure

New/

Existing

 

Ongoing

na

316.7

264.4

244.6

292.9

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

316.8

264.5

244.7

292.9

 

 

 

 

 

 

 

 

 

DEPARTMENT OF TREASURY AND FINANCE

 

 

 

 

 

 

 

 

Budget Information Management System Project

Existing

2014

2018

7.5

1.5

….

….

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

1.5

….

….

….

 

 

 

 

 

 

 

 

 

INLAND FISHERIES SERVICE

 

 

 

 

 

 

 

 

Upgrade of Amenities at High Visitation Trout Waters

New

2018

2020

0.3

0.2

0.1

….

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

0.2

0.1

….

….

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Table 6.2:          Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

MARINE AND SAFETY TASMANIA

 

 

 

 

 

 

 

 

Develop a new online marketing portal - one stop shop

New

2018

2022

0.4

0.1

0.1

….

0.3

Improve catch opportunities - artificial reefs

New

2020

2022

1.0

….

….

0.5

0.5

Shore based fishing

New

2018

2022

1.6

0.5

0.1

0.4

0.7

Stronger safety arrangements

New

2018

2022

2.0

0.4

0.7

0.5

0.3

Woodbridge Jetty Infrastructure

Existing

2018

2019

1.2

0.6

….

….

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

1.6

0.8

1.5

1.7

 

 

 

 

 

 

 

 

 

ROYAL TASMANIAN BOTANICAL GARDENS

 

 

 

 

 

 

 

 

New Visitor Centre

New

2018

2020

3.6

1.0

2.6

….

….

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.0

2.6

….

….

 

 

 

 

 

 

 

 

 

TasTAFE

 

 

 

 

 

 

 

 

Agricultural Centre of Excellence

New

2019

2020

5.0

….

5.0

….

….

Drysdale Centre of Excellence

Existing

2017

2019

2.7

1.9

….

….

….

Drysdale extension at Claremont and Devonport

New

2018

2020

3.5

3.5

….

….

….

TAFE Training Infrastructure

Existing

2017

2019

3.0

1.5

….

….

….

Trades and Water Centre of Excellence

New

2019

2020

7.0

….

7.0

….

….

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

6.9

12.0

….

….

 

Table 6.2:          Infrastructure Investment Project Details by Agency (continued)1

 

New/

Existing

Start

Complete

Estimated

Total

Cost

2018‑19


Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ALLOCATED INFRASTRUCTURE PROJECTS

 

 

 

 

752.4

671.6

478.6

476.1

 

 

 

 

 

 

 

 

 

Notes:

1.    This Table does not include irrigation, water and sewerage or rail related expenditure, as this type of expenditure is in the form of grants or equity injections to entities outside of the General Government Sector and the resulting infrastructure is not held within the General Government Sector.

2.    The Estimated Total Cost for this item reflects funding allocated beyond the 2018‑19 Budget and Forward Estimates period.

3.    More details on the Housing Program are provided in the Department of Communities Tasmania chapter in Government Services Budget Paper No 2.

4.    The Royal Hobart Hospital Redevelopment is funded by both the State and Australian Government. In respect of the RHH, practical completion of K‑Block is anticipated in mid-2019. Final payments occur in 2019-20 following commissioning. More details are provided in the Department of Health chapter in Government Services Budget Paper No 2.

5.    This reflects new State Government funding of $35 million, of which $21 million has been allocated over the 2018‑19 Budget and Forward Estimates period.


 

Major Areas of Infrastructure Investment In 2018‑19

This section provides an overview of the key projects being undertaken in 2018‑19 within each of the major areas of infrastructure expenditure. Further details on these, and other, infrastructure projects is available in individual agency chapters in Government Services Budget Paper No 2.

Chart 6.2 provides a breakdown of 2018‑19 infrastructure expenditure by classification.

Chart 6.2:        2018‑19 Infrastructure Investment by Classification

Title: Infrastructure Investment by Classification, 2018-19 - Description: This chart shows that the largest area of infrastructure investment in 2018-19 is Roads and bridges(42.2%), followed by Hospitals and Health (28.3%) and Schools and Education (8%).

Schools and Education

In 2018‑19, total Schools and Education infrastructure expenditure is budgeted to be $63.5 million. Major infrastructure projects include:

·       Riverside High School ($8 million);

·       Education Act Implementation ($6 million);

·       Taroona High School ($4.8 million)

·       East Launceston Primary School ($4.3 million); and

·       School Farm Redevelopment (Brighton/JRLF) ($4.3 million).


 

Human Services and Housing

In 2018‑19, total Human Services and Housing infrastructure funding is budgeted to be $64.3 million. Major infrastructure projects include:

·       Affordable Housing Strategy Stage II ($25 million);

·       Affordable Housing Strategy Stage I ($20 million); and

·       Housing Program ($17.2 million).

Hospitals and Health

In 2018‑19, total Hospitals and Health infrastructure expenditure is budgeted to be $212.3 million. Major infrastructure projects include:

·       Royal Hobart Hospital Redevelopment ($142.9 million);

·       Mersey Community Hospital Capital Upgrades ($8.6 million);

·       St Helens Hospital Redevelopment Project ($7.8 million);

·       Launceston General Hospital Ward Upgrades - Ward 4K Upgrades ($6.3 million); and

·       Statewide - Rural Hospital and Ambulance Station Upgrade Fund ($5 million).

Law and Order

In 2018‑19, total Law and Order infrastructure funding is budgeted to be $20.6 million. Major infrastructure projects include:

·       New Southern Remand Centre ($10 million);

·       Brand New Police Station for New Norfolk ($2.5 million);

·       Ron Barwick Minimum Security Prison - Cell Recommissioning ($2 million);

·       Longford Police Station ($2 million); and

·       Upgrade Police Housing ($1.3 million).


 

Roads and Bridges

In 2018-19, total Roads and Bridges funding is budgeted to be $316.7 million. Major infrastructure projects include:

·       Midland Highway ($100.2 million);

·       Infrastructure Maintenance ($69.9 million);

·       Hobart Airport Interchange ($25 million);

·       State Road Upgrades - Southern Region ($11.8 million);

·       Roads of Strategic Importance ($10 million);

·       Roads Package to Support Tasmania’s Visitor Economy ($7.2 million); and

·       Greater Hobart Traffic Vision ($3.3 million).

Further detail on the Roads Program is provided later in this chapter.

Information and Communication Technology

In 2018‑19, Information and Communication Technology funding is budgeted to be $21 million. Major infrastructure projects include:

·       Digital Transformation Priority Expenditure Program ($10 million);

·       Digital Transformation - Project Unify ($7.8 million); and

·       Budget Information Management System ($1.5 million).

Tourism, Recreation and Culture

In 2018‑19, $39.3 million has been allocated Tourism, Recreation and Culture infrastructure expenditure. Major infrastructure projects include:

·       Cradle Mountain Visitor Experience ($20.7 million);

·       Tourism Infrastructure in Parks ($4 million);

·       Three Capes Track - Stage 3 ($2.5 million); and

·       June 2016 Floods - Parks Infrastructure ($1.5 million).

Other Infrastructure

In 2018‑19, total Other infrastructure expenditure is $13.8 million. Major projects include:

·       Launceston Government Office Accommodation ($7 million);

·       Tasmanian Archives and Heritage Office ($2.4 million); and

·       Orange-bellied Parrot Facility ($2 million).

Roads Program

The Roads Program comprises new works projects and the upgrade and maintenance of established roads.  In 2018‑19, total roads expenditure is $316.7 million. This includes a State Government allocation of $161 million and an Australian Government allocation of $155.7 million. Completion dates reflect the current best estimates.

Table 6.3:         Roads Program Expenditure

 

Start

Complete

Estimated

Total

Cost

2018-19

 

Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

STATE FUNDED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Co‑contribution Projects

 

 

 

 

 

 

 

Brooker Highway ‑ Elwick, Goodwood, Howards Roads1,2

2015

2021

32.0

….

….

1.0

….

Domain Highway Planning1,2

2017

2019

5.0

0.4

….

….

….

Hobart Airport Interchange1

2018

2019

30.0

5.5

….

….

….

Midland Highway3

2014

2019

450.0

4.4

0.2

….

….

Murchison Highway1

2015

2019

8.0

0.3

….

….

….

New Bridgewater Bridge1,4,5,6

2019

….

576.0

1.0

2.0

3.0

15.0

State Road Upgrades - Northern Region1,3,4,5

2019

2023

54.2

4.2

7.0

17.3

14.5

State Road Upgrades - Southern Region1,3,4,5

2019

2024

99.8

11.8

14.2

12.5

13.2

 

 

 

 

27.5

23.4

33.8

42.7

 

 

 

 

 

 

 

 

Roads for Our Future Program

 

 

 

 

 

 

 

Bridge Strengthening on Esk and Tasman Highways2

2016

2019

10.0

4.1

4.9

….

….

Colebrook Main Road2

2016

2019

6.5

3.0

….

….

….

Esk Main Road2

2015

2019

13.0

4.0

….

….

….

 

 

 

 

11.1

4.9

....

....

 

 

 

 

 

 

 

 

Other Roads Infrastructure

 

 

 

 

 

 

 

Asset Management

 

Ongoing

na

5.7

5.8

5.9

6.1

Environmental Management

 

Ongoing

na

0.6

0.6

0.6

0.6

Extending the Great Eastern Drive - Binalong Bay Road4

2020

2021

4.5

….

2.0

2.5

….

Freight Access Bridge Upgrades

2017

2021

19.1

5.4

4.4

4.5

….

Great Eastern Drive

2018

2020

6.3

3.0

3.0

….

….

Greater Hobart Traffic Vision4,5

2019

2024

73.8

3.3

6.3

7.6

13.6

Infrastructure Development

 

Ongoing

na

1.1

1.0

1.0

1.0

Table 6.3:         Roads Program Expenditure (continued)

 

Start

Complete

Estimated

Total

Cost

2018-19

 

Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

Infrastructure Maintenance

 

Ongoing

na

62.7

64.3

66.2

67.3

Launceston Northbank

2015

2018

1.4

0.7

….

….

….

Launceston and Tamar Valley Traffic Vision4,5

2019

2023

75.1

2.2

4.7

7.7

20.5

Mowbray Interconnector

2018

2019

7.0

6.5

….

….

….

Program Management

 

Ongoing

na

1.2

1.3

1.3

1.3

Real-Time Traffic Congestion Management

2017

2018

1.8

0.6

…..

…..

….

Roads Package to Support of Tasmania’s Visitor Economy4,5

2019

2023

66.1

7.2

14.8

16.0

13.8

Road Safety and Traffic Management

 

Ongoing

na

4.5

6.1

6.3

6.5

Road Safety Strategy - Infrastructure

 

Ongoing

na

6.8

7.0

7.2

7.2

South East Traffic Solution

2019

2022

27.0

1.1

5.7

8.8

5.5

State Road Upgrades - North West and West Coast Regions4,5

2019

2024

50.1

4.4

4.3

6.3

9.3

Strategic Planning and Policy

 

Ongoing

na

3.0

3.0

3.1

3.2

Tasmanian Journeys

2019

2019

0.8

0.8

….

….

….

West Tamar Highway Traffic Solution

2019

2022

12.0

1.8

5.6

3.7

1.0

 

 

 

 

122.4

139.7

148.5

157.8

 

 

 

 

 

 

 

 

TOTAL STATE FUNDED ROADS

 

 

 

161.0

168.0

182.4

200.5

 

 

 

 

 

 

 

 

AUSTRALIAN GOVERNMENT FUNDED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Program

 

 

 

 

 

 

 

Bass Highway - Wynyard

2017

2018

2.9

2.3

….

….

….

Brooker Highway ‑ Elwick, Goodwood, Howards Roads1

2015

2021

32.0

….

….

0.5

….

Grants to Local Government7

2017

2019

na

2.8

….

….

….

Midland Highway

2014

2022

450.0

95.8

40.8

5.1

1.5

 

 

 

 

100.9

40.8

5.6

1.5

 

 

 

 

 

 

 

 

Off-Network

 

 

 

 

 

 

 

Bridport Western Access Road

2017

2018

2.9

0.4

….

….

….

Domain Highway Planning1

2015

2019

5.0

3.9

….

….

….

Highland Lakes Road

2018

2020

9.0

2.5

0.1

….

….

Hobart Airport Interchange1

2017

2019

30.0

19.5

2.0

….

….

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 6.3:         Roads Program Expenditure (continued)

 

Start

Complete

Estimated

Total

Cost

2018-19

 

Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

 

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

 

 

Murchison Highway1

2017

2019

8.0

2.0

….

….

….

New Bridgewater Bridge1,6

2019

….

576.0

5.0

25.0

30.0

40.0

 

 

 

 

33.3

27.1

30.0

40.0

 

 

 

 

 

 

 

 

Other Roads Infrastructure

 

 

 

 

 

 

 

Bass Highway - Birralee to Exton8

2015

2019

9.6

1.5

….

….

….

Bridge Renewal9

 

Ongoing

na

0.5

0.9

….

….

Heavy Vehicle Safety and Productivity9

 

Ongoing

na

0.8

0.9

….

….

Road Safety and Traffic Management9

 

Ongoing

na

1.7

….

….

….

Road Specific Maintenance

 

Ongoing

na

7.1

6.6

6.6

0.9

Roads of Strategic Importance6,10

2019

….

400.0

10.0

20.0

20.0

50.0

 

 

 

 

21.6

28.4

26.6

50.9

 

 

 

 

 

 

 

 

TOTAL AUSTRALIAN GOVERNMENT FUNDED ROADS

 

 

 

155.7

96.3

62.2

92.3

 

 

 

 

 

 

 

 

TOTAL ROADS PROGRAM EXPENDITURE

 

 

 

316.7

264.4

244.6

292.9

 

 

 

 

 

 

 

 

Notes:

1.   These projects include both State and Australian Government funding.

2.   Funding for these projects was provided as part of the State Government’s 2014 election commitment of $110 million for the road funding package which included the co-contribution and Roads for Our Future Projects.

3.   The State Government’s contribution to the Midland Highway has now been reflected in the State Road Upgrades - Southern Region and the State Road Upgrades - Northern Region.

4.   Funding for these projects is part of the State Government’s 2018 election commitments.

5.   The Estimated Total Cost for this item reflects funding beyond the 2018‑19 Budget and Forward Estimates period.

6.   The completion date for this project is yet to be finalised.

7.   The Australian Government committed funding for a number of its 2016 election commitments that relate specifically to Local Government roads. This funding will be provided to the relevant council via the State Government.

8.   This allocation includes Bass Highway road safety improvements.

9.   Ongoing funding for this item is contingent on the finalisation of a new five-year roads funding agreement with the Australian Government.

10. The Australian Government has advised that the initial focus of this Program will be the Bass Highway corridor.

 


 

Reconciliation between Infrastructure Investment and Purchases of Non‑Financial Assets

Purchases of Non‑Financial Assets is an accounting classification under the Australian Accounting Standards. It appears on the Income Statement and Cash Flow Statement and reflects purchases of non‑financial assets such as land, buildings, plant and equipment, infrastructure and intangible assets. While the majority of the Purchases of Non‑Financial Assets is comprised of Infrastructure Investment projects, there is a portion of Purchases of Non‑Financial Assets expenditure that is not included in this chapter. Such items include Budget allocations for:

·       the Government’s fleet management services;

·       ambulance, surgical and medical equipment;

·       computer software; and

·       other smaller capital items.

Conversely, Infrastructure Investment projects can include allocations of expenditure which are not classified as Purchases of Non‑Financial Assets under the Australian Accounting Standards, but are directly related to infrastructure projects. This expenditure can include items such as employee entitlements, infrastructure maintenance, Australian Government Loan Repayments and other supplies and consumables.

Table 6.4 provides a reconciliation between the two measures.

Table 6.4:         Reconciliation between Purchases of Non‑Financial Assets and Infrastructure Investment

 

2017‑18

 

Budget

2018‑19

 

Budget

2019‑20

Forward

Estimate

2020‑21

Forward

Estimate

2021‑22

Forward

Estimate

 

$m

$m

$m

$m

$m

 

 

 

 

 

 

Purchases of Non‑Financial Assets1

603.1

731.8

708.1

520.5

511.9

Less Purchases of Non‑Financial Assets excluded from Infrastructure Investment

59.3

88.5

75.9

68.3

59.8

Plus Infrastructure Investment not included in Purchases of Non‑Financial Assets

113.3

109.1

99.5

86.4

84.0

 

 

 

 

 

 

TOTAL INFRASTRUCTURE INVESTMENT2

657.0

752.4

731.6

538.6

536.1

 

 

 

 

 

 

Notes:

1.   Reflects Purchases of Non‑Financial Assets as detailed in the General Government Cash Flow Statement.

2.   These totals differ to the totals in Table 6.2 due to the unallocated provision for Australian Government roads funding that is not included in that table.


 

Infrastructure Investment outside of the General Government Sector

This chapter provides information on infrastructure investment in the General Government Sector. Infrastructure investment undertaken by Government Business Enterprises or State‑owned Companies is outside of the General Government Sector and is therefore not included in the definition of infrastructure investment for the purpose of this chapter. Information on infrastructure investment undertaken by these entities can be found in entity annual reports and on entity websites.

The 2018‑19 Budget does, however, include equity and other contributions provided through the General Government Sector to Metro Tasmania Pty Ltd, Tasmanian Irrigation Pty Ltd, Tasmanian Railway Pty Ltd, Tasmanian Water and Sewerage Corporation Pty Ltd and TT-Line Company Pty Ltd to undertake major infrastructure works.

All equity contributions to these entities are made through Finance-General.

Metro Tasmania Pty Ltd

The 2018-19 Budget reflects equity contributions to Metro Tasmania Pty Ltd for the capital component of the Derwent River ferry service establishment ($500 000 per annum over three years from 2019-20) and investment in a single ticketing system ($7.5 million over four years).

This is in addition to equity contributions of $4.5 million in 2018-19 and 2019-20 to implement a Metro Bus Infrastructure capital initiative, as announced in the 2016-17 Budget.

Tasmanian Irrigation Pty Ltd

The 2018-19 Budget reflects equity contributions to Tasmanian Irrigation Pty Ltd for Tranche Three irrigation projects ($70 million over four years from 2019-20) in order to double the amount of water available through Tasmanian Irrigation Schemes by 2025. Additional equity contributions are also provided for on farm energy initiatives ($5.5 million over three years from 2018-19).

This is in addition to equity contributions of $10 million in 2018-19 for Tranche Two irrigations projects, as announced in the 2017-18 Budget.

Tasmanian Railway Pty Ltd

The Tasmanian Rail Revitalisation Program is a program to continue to remediate Tasmania’s Freight Rail Network. As part of their respective 2015‑16 Budgets, the Tasmanian and Australian Governments each committed $59.8 million to complete Tranche One of the Program over four years.

As part of the 2017-18 Budget, the Tasmanian Government committed additional funding of $59.8 million over four years, commencing in 2019‑20, in order to facilitate Tranche Two of the Program. In its 2018‑19 Budget, the Australian Government reflected a matching contribution of $59.8 million towards the second Tranche of this Program.

The Tasmanian Government contribution to the Tasmanian Rail Revitalisation Program was previously reflected as grant payments through the Department of State Growth. For consistency, these payments have been reclassified, and will be made as equity contributions through Finance-General.

Tasmanian Water and Sewerage Corporation Pty Ltd

The 2018-19 Budget reflects contributions of $20 million per annum over ten years, commencing in 2018‑19, to the Tasmanian Water and Sewerage Corporation Pty Ltd to implement an accelerated infrastructure investment program.

TT-Line Company Tasmania Pty Ltd

TT‑Line Company Pty Ltd has recently signed contracts for the construction of two new ships to replace the current Spirit of Tasmania vessels. The design specifications provide for the 212 metre long vessels that will accommodate 1 800 passengers and up to 600 passenger vehicles. The company expects that the new vessels will commence operations in 2021.