Federal budget puts projects in doubt

The Gillard government’s first Budget has thrown in some sweeteners for the South West with farmers, Bunbury’s St John of God Hospital and training organisations across the board getting funding.

However, a lack of spending on infrastructure has left some major projects in the region in doubt, with State Labor Leader Eric Ripper saying Premier Colin Barnett must ensure ‘‘key WA infrastructure is fully funded in next week’s State Budget’’.

Treasurer Wayne Swan said the 2011-12 Federal Budget was designed to evenly spread opportunity across the nation by placing an emphasis on skills and training, mental health and regional Australia.

Key measures to deliver those include spending $233 million to get long-term unemployed into the workforce, more than $100 million on a national mentoring program to help apprentices finish training, $4.3 billion worth of investments for regional hospitals, health care, universities and roads and $300 a year of the Low Income Tax Offset to go straight into pay packets from July.

Farmers in the drought-stricken South West will also be eligible for funding under an expanded drought assistance program, as well as $30,000 available to implement recommendations from free workshops on how to drought-proof farms.

Mr Swan promised to get the $22.6 billion deficit for 2011-12 back to a $4 billion surplus in two years, but not everyone is happy.

Bunbury Chamber of Commerce and Industries chief executive officer Andrew Horan said the Government’s efforts to return the deficit to surplus by 2012-13 would come at a great cost to the South West.

‘‘From an infrastructure perspective how are they going to turn a $20 billion deficit into a $4 billion surplus in two years, I mean how many infrastructure projects are going to miss out on funding while they try and save the money?’’ Mr Horan said.

‘‘The South West needs those infrastructure projects funded immediately, especially the Roads to Exports projects.

These are the things that are going to promote economic growth.’’

Mr Horan said while he was yet to digest the Budget entirely it was implausible to get back into the black ‘‘in that sort of a time frame without cost cutting these things’’.

The diversion of the Preston River and ‘‘all the infrastructure that leads to the port’’ needed to be funded in order for the Bunbury Port expansion to happen.