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2010-2011-2012-2013 THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA HOUSE OF REPRESENTATIVES INFRASTRUCTURE (PRIORITY FUNDING) AMENDMENT BILL 2013 EXPLANATORY MEMORANDUM (Circulated by authority of Adam Bandt MP)INFRASTRUCTURE (PRIORITY FUNDING) AMENDMENT BILL 2013 OUTLINE Major Infrastructure projects have long lead times and require substantial investment. Commonwealth investment in infrastructure is increasingly important in determining which major projects proceed. Successive Commonwealth Governments have given greater priority to the funding of major road projects over funding of rail. As a result Australia's rail infrastructure does not met the needs of the modern economy. Infrastructure Australia was established by the Infrastructure Australia Act 2008 to assist the Commonwealth in identifying and prioritising funding for major infrastructure projects. Despite this objective no requirement was placed on the Commonwealth in the Act to follow the priorities identified by Infrastructure Australia. This bill - the Infrastructure (Priority Funding) Amendment Bill - will prioritise Commonwealth funding of rail projects identified by Infrastructure Australia over major road projects. Important exemptions are including in the bill for projects in relation to road safety, as well as exempting existing projects. FINANCIAL IMPACT STATEMENT The Bill has no financial impact. STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 This Bill is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 .
INFRASTRUCTURE (PRIORITY FUNDING) AMENDMENT BILL 2013 NOTES ON CLAUSES Clause 1: Short title Clause 1 is a formal provision specifying the short title of the Act. Clause 2: Commencement The Act commences on the day after the Act receives the Royal Assent. Clause 3: Schedule(s) This clause gives effect to the provisions in Schedule 1 of the Bill. Schedule 1 - Amendments Item 1 inserts a new section 5A into the Infrastructure Australia Act 2008 The section requires the Minister to prioritise the funding of Infrastructure projects listed on Infrastructure Australia's national priority list as ready to proceed ahead of other infrastructure projects related to road, with the exception of exempted road projects. For example, Commonwealth funding for the Melbourne Metro, which is listed as a `ready to proceed' project on the National priority list, would be accorded priority over funding for the Victorian East-West tollway, which is not listed as ready to proceed. Road projects that are exempted from this order of priority are defined in the new section as those designed to address an urgent or significant road safety issue; or on which construction has already begun at the time this Act commences. For example, Commonwealth funded Black Spot programs or existing projects such as the Melbourne Ring Road upgrade would be exempt from the priority ordering in this section.