Farming groups have applauded the Federal Government's decision to provide $8.4billion dollars for an inland railway to connect Brisbane and Melbourne.
The National Farmers Federation say it was the 'jewel in the crown' for the farm sector out of the budget, which it gave an overall B+ grading on its annual report card.
“Coupled with private sector participation, this funding will see the project through to completion in 2024-25," NFF President Fiona Simpson said. “This is a significant investment in the efficiency of our industry, better connecting our farms with new markets here and overseas.”
The railway line will span 1,700 kilometres and reduce transit times to under 24 hours for loads travelling the whole distance.
The Department of Infrastructure and Regional Development forecasts the new route will boost GDP by $16 billion over the next 50 years and reduce emissions by 750,000 tonnes.
AgForce was equally supportive, recognising the project will be a massive boost for the economy and jobs. But it warns of the importance of continued consultation with the farming sector, particularly those along the proposed route.
“The inland rail project will help drive down transport costs for farmers right along the east coast of Australia and create thousands of regional construction jobs," AgForce General President Grant Maudsley said "But it is vital that genuine consultation occurs over the route, particularly with farmers whose properties will be directly affected by the development."
Both groups have also welcomed the government's continuation of the immediate asset write-off provisions for small businesses. Businesses turning over up $10 million per year will now have an additional 12 months, to deduct eligible assets up to the value of $20,000.
“The extension of the immediate asset write off is a big positive for farmers who need to buy new machinery, equipment or fences and will help inject money into local businesses and regional economies," Mr Audsley said.
And AgForce has joined the NFF in being equally critical of creating uncertainty over Mobile Blackspot Program funding, by not adding any funding to expand the project.
“Reliable telecommunications is one of the biggest challenges before the farm sector and regional Australia as a whole," Ms Simpson said. “The NFF implores the Government to ensure the roll-out of the Blackspot Program continues to be prioritised.”
But the two groups' real hope is that the budget's real benefits are in the long term investment opportunities last night's budget measures create.
Contact details:National Farmers Federation
Phone: +612 6269 5666
AgForcePhone: +617 3236 3100