2017-18 Budget Paper 1 - Chapter 6 - Infrastructure ...€¦ · Web viewThe 201718 Budget commits...

6 INFRASTRUCTURE INVESTMENT

Key Issues

The 2017-18 Budget commits over $2 billion in funding over the Budget and Forward Estimates period to support infrastructure development across Tasmania, with a further $245.2 million in new infrastructure funding included in the Budget.

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

harness the existing strengths of the Tasmanian economy;

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

lead to a more efficient service delivery across both the private and public sectors.

Over $500 million in funding for hospitals, health and ICT-related infrastructure has been provided in this Budget. The Government continues to progress Tasmania's largest ever health infrastructure project with the Royal Hobart Hospital Redevelopment being allocated funding of $389 million over the 2017-18 Budget and Forward Estimates period.

The Government has allocated $117 million to fund schools and education infrastructure over the Budget and Forward Estimates period. This includes new funding of $28.8 million for primary and high school upgrades and continued support for the Government's Year 7 - 12 Implementation Plan.

Over $800 million in funding has been provided for roads and rail infrastructure over the Budget and Forward Estimates (including a provision of $120 million for future Australian Government Roads Funding). The Roads Program includes new funding of $19.1 million for Freight Access Bridges, $7 million for the Mowbray Connector and $1.8 million for Real-Time Traffic Congestion Management in Hobart. The Roads Program also reflects the Government's ongoing commitment to the $500 million, 10 year, Midland Highway upgrade project and includes more than $250 million in ongoing road maintenance projects over the Budget and Forward Estimates period.

Infrastructure Investment 101

OVERVIEWOver the 2017-18 Budget and Forward Estimates period, the Government will invest over $2 billion in vital community infrastructure projects, of which $1.6 billion has been allocated to key infrastructure projects, including:

schools and education ($117.0 million);

hospitals and health ($493.7 million);

human services and housing ($120.3 million);

law and order ($23.5 million);

roads and rail ($707.2 million);

ICT to support frontline services ($67.5 million);

tourism, recreation and culture ($39.0 million); and

other infrastructure ($18.7 million).

The $2 billion General Government Sector infrastructure investment program includes state funding for co-funded (Australian and State Government) roads projects, the Government's Roads for Our Future Program. In accordance with established Budget management practice it also includes an unallocated provision for future infrastructure investment. A general provision of $335 million has been set aside over the 2017-18 Budget and Forward Estimates period to be allocated to future infrastructure investment projects or used to provide capacity to meet cost variation and the impact of the re-scheduling of projects. A separate provision of $120 million has also 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.

The investment of $2 billion in infrastructure over a four year period is significant and is above long-term historical infrastructure investment levels. It is essential that a strong Budget position is achieved 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.

102 Infrastructure Investment

Chart 6.1 outlines the infrastructure investment from 2006-07 to 2016-17 and the 2017-18 Budget and Forward Estimates. The chart illustrates the provision for future infrastructure investment and future Australian Government roads funding.

Chart 6.1: Infrastructure Investment, 2006-07 to 2020-21


INFRASTRUCTURE INVESTMENT PROJECTS BY AGENCYTable 6.1 details infrastructure investment expenditure by agency, the provision for future infrastructure investment and estimated future Australian Government Roads Funding.

Table 6.1: Infrastructure Expenditure by Agency1

2016-17

Budget

2017-18

Budget

2018-19ForwardEstimate



$m $m $m $m $m

Education 56.2 48.9 32.9 24.4 8.1

Finance-General …. 27.7 18.2 15.0 15.0

Health and Human Services 181.4 243.3 234.0 84.5 45.2

Justice 1.9 2.1 3.7 1.7 ….

Legislative Council …. 0.7 …. …. ….

Legislature-General 0.9 …. …. …. ….

Marine and Safety Tasmania …. 0.6 0.6 …. ….

Police, Fire and Emergency Management 17.0 8.0 1.3 2.5 4.2

Premier and Cabinet 1.1 2.1 0.3 0.3 0.3

Primary Industries, Parks, Water and Environment 10.5 23.5 16.0 3.6 0.6

State Growth 262.7 294.6 217.9 98.7 96.1

TasTAFE …. 2.2 3.4 …. ….

Treasury and Finance 3.2 3.1 1.5 …. ….

ALLOCATED INFRASTRUCTURE EXPENDITURE 534.9 657.0 529.8 230.6 169.5

Provision for Future Infrastructure Investment2 …. …. 75.0 130.0 130.0

Estimated Future Australian Government Roads

Funding3 …. …. …. 60.0 60.0

TOTAL INFRASTRUCTURE EXPENDITURE 534.9 657.0 604.8 420.6 359.5

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. In addition to the allocated infrastructure investment expenditure, the Government has set aside $335 million of capital provisions over the 2017-18 Budget and Forward Estimates period, which will be allocated to future infrastructure investment projects or used to provide capacity to meet cost variation and the impact of the re-scheduling of 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 allocation of $60 million has been included in both 2019-20 and 2020-21 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 priority infrastructure projects that have been funded by the Government in the 2017-18 Budget.

Table 6.2: Infrastructure Investment Project Details by Agency1

New/Existing Start Complete

EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

DEPARTMENT OF EDUCATIONAustins Ferry Primary

School Existing 2016 2018 5.5 5.2 …. …. ….

Boat Harbour Primary

School New 2017 2018 1.8 0.5 1.4 …. ….

East Devonport Primary

School Existing 2017 2018 1.8 1.7 …. …. ….

East Launceston Primary

School Existing 2016 2018 4.5 4.3 …. …. ….

Education Act

Implementation -

Capital Existing 2018 2020 18.0 …. 6.0 12.0 …..

Hobart College Existing 2018 2019 2.5 …. 0.8 1.7 …..

Illawarra Primary School New 2017 2019 2.9 0.5 2.4 …. ….

Lansdowne Crescent

Primary School New 2019 2021 4.7 …. …. 1.1 3.6

Latrobe High School Existing 2015 2017 10.0 0.8 …. …. ….

Lenah Valley Primary

School Existing 2016 2018 3.0 2.6 …. …. ….

Molesworth Primary

School New 2019 2020 1.9 …. …. 0.3 1.6

Montagu Bay Primary

School Existing 2018 2019 1.8 …. 0.8 1.0 ….

Parklands High School Existing 2015 2018 9.1 5.5 .... .... ….

Queechy High School

New/

Existing 2017 2018 5.0 4.9 …. …. ….

Riverside High School Existing 2017 2019 12.0 2.4 7.2 2.4 ….

Riverside Primary School Existing 2017 2018 2.5 2.4 …. …. ….

Smithton High School Existing 2015 2017 7.0 0.5 …. …. ….

Snug Primary School Existing 2018 2020 2.5 …. 1.3 1.3 ….

Somerset Primary School Existing 2016 2018 1.8 1.3 …. …. ….

Sorell School Existing 2018 2020 3.8 …. 1.9 1.9 ….

Southern Support School New 2017 2019 4.3 0.4 3.9 …. ….

Spreyton Primary School New 2019 2020 1.7 …. …. 0.3 1.4


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


EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

St Marys District School Existing 2016 2018 5.0 4.6 …. …. ….

Taroona High School New 2017 2019 5.0 1.1 3.9 …. ….

Tasman District School Existing 2016 2018 4.0 3.7 …. …. ….

Tasmanian Archives and

Heritage Office Existing 2018 2019 3.0 …. 2.0 1.0 ….

Windermere Primary

School Existing 2016 2018 5.5 5.2 …. …. ….

Year 7-12

Implementation Plan -

Capital2New/

Existing 2014 2021 10.5 1.5 1.5 1.5 1.5

TOTAL 48.9 32.9 24.4 8.1

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Human Services and Housing Infrastructure3

Affordable Housing

Strategy4 Existing 2015 2019 60.0 15.0 20.0 …. ….

Housing Fund Existing 2008 2021 60.0 1.2 1.3 1.0 0.9

Housing Program5 Existing Ongoing na 18.2 17.4 20.5 19.3

North West Youth

Accommodation and

Training Facility Existing 2016 2017 6.0 4.5 …. …. ….

Northern Suburbs

Community Centre Existing 2016 2018 1.7 1.0 …. …. ….

40.0 38.6 21.5 20.2

Health Infrastructure6,7

Campbell Town

Ambulance Station New 2019 2021 3.0 …. 0.1 1.2 1.6

Glenorchy Health Centre Existing 2010 2017 21.0 6.7 …. …. ….




EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

Health Infrastructure (continued)Health Transport and

Coordination

Infrastructure Existing 2017 2018 10.0 5.3 …. …. ….

Hospital and Health

Centre Maintenance Existing 2015 2017 8.3 0.8 …. …. ….

Kingston Health Centre Existing 2013 2019 6.5 4.1 1.7 …. ….

Launceston General

Hospital Ward

Upgrades - Ward 4K

Upgrades Existing 2016 2020 7.9 1.4 4.4 1.9 ….

Mersey Community

Hospital Capital

Upgrades New 2019 2021 35.0 …. …. 15.0 20.0

Mersey Hospital Upgrade Existing 2013 2017 1.9 1.4 …. …. ….

National Health and

Hospitals Network

Reforms: Emergency

Department Existing 2010 2017 9.3) 0.2 ....) ....) ....)

Royal Hobart Hospital

Pharmacy

Redevelopment Existing 2017 2020 3.8 0.2 1.0 2.6 ….

St Helens Hospital

Redevelopment

New/

Existing 2016 2020 12.1 2.8 4.9 3.8 ….

Statewide Hospital

Critical Facility

Upgrades New 2018 2020 10.5 0.7 3.2 6.6 ….

Statewide Rural Health

Facility Infrastructure

Upgrades New 2019 2021 4.7 …. …. 2.5 2.2

THS Infrastructure

Upgrades New 2019 2021 1.9 …. …. 0.7 1.2

23.4 15.3 34.3 25.0




EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

Royal Hobart Hospital Redevelopment FundingRoyal Hobart Hospital

Redevelopment8 Existing 2011 2019 469.2 180.0 180.0 28.7 ….

180.0 180.0 28.7 ….

TOTAL 243.3 234.0 84.5 45.2

DEPARTMENT OF JUSTICE9

iplan Stage Two:

Integrated Planning

and Building Portal Existing 2017 2020 1.9 0.5 0.9 0.5 ….

Mary Hutchinson

Women's Prison Existing 2016 2018 0.9 0.7 …. …. ….

Mary Hutchinson

Women's Prison -

Mother and Baby Unit New 2019 2020 0.5 …. …. 0.5 ….

O'Hara Pre-Release

Facility - Additional

Units New 2018 2020 1.5 …. 0.8 0.7 ….

Ron Barwick Minimum

Security Prison - Cell

Recommissioning New 2017 2019 3.0 1.0 2.0 …. ….

TOTAL 2.1 3.7 1.7 ….

DEPARTMENT OF POLICE, FIRE AND EMERGENCY MANAGEMENT10

Aerial Fire Appliances New 2017 2018 3.8 3.8 …. …. ….

Body Worn Video New 2019 2021 0.7 …. 0.1 …. 0.7

District Headquarters and

Major Support Service

Building Refurbishment Existing 2016 2018 2.0 1.0 …. …. ….




EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

Emergency Services

Computer Aided

Dispatch System Existing 2015 2018 17.3 2.0 …. …. ….

Large Vessel

Replacement Program

New/

Existing 2014 2021 13.3 …. …. 1.2 3.5

Upgrade Police Housing Existing 2015 2020 5.0 1.3 1.3 1.3 ….

TOTAL 8.0 1.3 2.5 4.2

DEPARTMENT OF PREMIER AND CABINETService Tasmania Shops

Capital Investment Existing Ongoing na 0.3 0.3 0.3 0.3

Silverdome -

Maintenance and

Building Compliance Existing 2017 2018 2.7 1.9 …. …. ….

TOTAL 2.1 0.3 0.3 0.3

DEPARTMENT OF PRIMARY INDUSTRIES, PARKS, WATER AND ENVIRONMENTBiotoxin Testing

Laboratory New 2017 2018 1.2 1.2 .... …. ….

Cradle Mountain Visitor

Experience New 2017 2020 21.8 8.8 10.0 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 Existing 2016 2018 1.2 1.0 …. …. ….

June 2016 Floods - Parks

Infrastructure Existing 2016 2018 11.9 2.9 …. …. ….

Maria Island

Rediscovered New 2017 2019 1.7 0.9 0.8 …. ….




EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

Orange-bellied Parrot

Facility11 New 2017 2018 2.5 2.5 …. …. ….

South Coast Track Existing 2014 2018 2.0 0.3 …. …. ….

Three Capes Track -

Stage 3 Existing 2015 2018 4.0 1.5 0.7 …. ….

Tourism Infrastructure in

Parks New 2017 2019 8.0 4.0 4.0 …. ….

TOTAL 23.5 16.0 3.6 0.6

DEPARTMENT OF STATE GROWTHA Workforce for Now and

the Future New 2017 2021 0.2 0.1 0.1 0.1 0.1

Roads Program

Expenditure12

New/

Existing 294.6 217.9 98.7 96.1

TOTAL 294.6 217.9 98.7 96.2

DEPARTMENT OF TREASURY AND FINANCE13

Budget Information

Management System

Project Existing 2014 2018 7.5 2.9 1.5 …. ….

State Revenue System

Replacement - Payroll

Tax and Duties Existing 2014 2017 2.8 0.2 …. …. ….

TOTAL 3.1 1.5 …. ….

FINANCE-GENERALDigital Transformation

Priority Expenditure

Program3,6,9 New 2017 2021 50.0 10.0 10.0 15.0 15.0

Digital Transformation -

Project Unify New 2017 2019 11.9 7.2 4.7 …. ….




EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

Launceston Government

Office Accommodation New 2017 2019 7.0 3.5 3.5 …. ….

Repatriation Hospital

Capital New 2017 2018 7.0 7.0 …. …. ….

TOTAL 27.7 18.2 15.0 15.0

LEGISLATIVE COUNCILLegislative Council

Chamber OH&S Issues

and Disability Access New 2017 2018 0.7 0.7 …. …. ….

TOTAL 0.7 …. …. ….

MARINE AND SAFETY TASMANIAWoodbridge and Brid

River Jetties New 2018 2019 1.2 0.6 0.6 …. ….

TOTAL 0.6 0.6 …. ….

TasTAFEDrysdale Centre of

Excellence New 2017 2019 2.7 0.7 1.9 …. ….

TAFE Training

Infrastructure Existing 2017 2019 3.0 1.5 1.5 …. ….

TOTAL 2.2 3.4 …. ….

TOTAL ALLOCATED INFRASTRUCTURE PROJECTS 657.0 529.8 230.6 169.5

Notes:1. This Table does not include irrigation 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. New funding of $1.5 million per annum commencing in 2018-19 has been provided in this Budget.


3. The Department of Health and Human Services will receive funding from the Digital Transformation Priority Expenditure Program in Finance-General to support the Department to investigate and identify options for the replacement of the legacy Child Protection Information System. Future project costs (estimated to be $6 million) will be met from the Digital Transformation Priority Expenditure Program.

4. Implementation of the Affordable Housing Strategy commenced in 2015-16 with the allocation of $13.5 million in capital and recurrent funding. It will also be supported through the redirection of a proportion of Housing Tasmania revenue towards the priorities set by the Action Plan.

5. More details on the Housing Program are provided in the Department of Health and Human Services chapter in Government Services Budget Paper No 2.

6. The Department of Health and Human Services will receive $18 million in funding for the Health ICT Priority Infrastructure Program from the Digital Transformation Priority Expenditure Program in Finance-General.

7. Capital funding of $7 million has been allocated in Finance-General for the Repatriation Hospital Capital project.8. 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 and Human Services chapter in Government Services Budget Paper No 2.

9. The Department of Justice will receive funding to progress detailed requirements for the Justice Connect project from the Digital Transformation Priority Expenditure Program in Finance-General. Future project costs (estimated to be $16.6 million) will be met from the Digital Transformation Priority Expenditure Program.

10. Recurrent funding of $1.2 million and capital funding of $11.9 million has been allocated in Finance-General for the implementation of the Department of Police, Fire and Emergency Management's important Project Unify.

11. This project will be offset by asset sale proceeds from the current property at Taroona.12. The Roads Program includes new funding of $19.1 million for Freight Access Bridge Upgrades, $7 million for the

Mowbray Connector and $1.8 million for Real-Time Traffic Congestion Management in Hobart. Further details on these, and other Roads Program items, are included at Table 6.3.

13. The Department of Treasury and Finance will progress detailed design work for the replacement of its Public Account Reporting and Cash Management Systems in 2017-18. Future project costs (estimated to be $5 million) will be met from the Digital Transformation Priority Expenditure Program.


MAJOR AREAS OF INFRASTRUCTURE INVESTMENT IN 2017-18This section provides details of the key projects being undertaken in 2017-18 within each of the major areas of infrastructure expenditure. Details of other infrastructure projects not included in this section are available in individual agency chapters in Government Services Budget Paper No 2.

Chart 6.2 provides a breakdown of 2017-18 infrastructure expenditure by classification.

Chart 6.2: 2017-18 Infrastructure Investment by Classification

Schools and EducationIn 2017-18, total Schools and Education infrastructure expenditure is $51.1 million. The major infrastructure projects include:

Austins Ferry Primary SchoolFunding of $5.2 million has been allocated to the Department of Education in 2017-18 for the second year of a two year, $5.5 million project to address capacity issues being experienced due to enrolment growth at Austins Ferry Primary School. The project will provide additional general learning and support areas at the school. This project commenced in 2016-17.

Parklands High SchoolFunding of $5.5 million has been allocated to the Department of Education in 2017-18 for the final year of a $9.1 million project to construct a performing arts centre, canteen, refurbish teaching areas and provide modern contemporary flexible learning environments. This project commenced in 2015-16.


Queechy High SchoolFunding of $4.9 million has been allocated to the Department of Education in 2017-18 for the construction of contemporary learning areas at Queechy High School. Additional funding of $2.0 million has been provided to this project in the 2017-18 Budget, increasing the total cost to $5.0 million. The commencement of this project was brought forward to 2016-17 as part of the Government's Northern Economic Stimulus Package.

St Marys District SchoolFunding of $4.6 million has been allocated to the Department of Education in 2017-18 for the second year of a two year, $5.0 million project to provide contemporary general learning areas, including music and performing arts facilities at St Marys District School. The commencement of this project was brought forward to 2016-17 as part of the Government's Northern Economic Stimulus Package.

Windermere Primary SchoolFunding of $5.2 million has been allocated to the Department of Education in 2017-18 for the second year of a $5.5 million project to construct additional general learning and support areas to address capacity issues experienced due to enrolment growth at Windermere Primary School. This project commenced in 2016-17.

Human Services and Housing

In 2017-18, total Human Services and Housing infrastructure funding is budgeted to be $40.0 million. The major infrastructure projects include:

Affordable Housing StrategyTasmania's Affordable Housing Strategy 2015-2025 sets the key outcomes to measure the success of the Government's strategies over the next decade to improve housing affordability in Tasmania, including a decrease in the proportion of low income Tasmanians experiencing housing stress and a decrease in the proportion of Tasmanians experiencing homelessness.

Additional funding of $60 million over three years was provided in the 2016-17 Budget to implement the Government's priorities under Tasmania's Affordable Housing Action Plan 2015-2019. The Government's target is to provide 1 600 vulnerable Tasmanian households with support over the four year term of the Action Plan, including construction of 941 new homes and support to access affordable homes in the private market.

Expenditure of $20 million was originally allocated to 2016-17, however, $5 million in funding was brought forward from the 2017-18 allocation as part of the Government's Northern Economic Stimulus Package. As a result, $15 million is now allocated for expenditure in 2017-18 with the remaining $20 million in 2018-19.

New projects also support projects and actions in the Affordable Housing Action Plan, including investment in crisis housing, youth homelessness and supported accommodation.

Housing FundThe Housing Fund was established in 2007-08 with an allocation of $60 million for the purpose of increasing the supply of affordable housing. In 2017-18, it is anticipated that $1.2 million will be spent from the Housing


Fund towards the continuation of support for the National Rental Affordability Scheme (NRAS), with funding towards the development of up to 1 500 properties under NRAS Stage 4.

Housing ProgramFunding of $18.2 million has been allocated in 2017-18 from the Housing Program for Major Housing Program projects including:

funding under the Family Violence Action Plan towards establishing the Women's Crisis Accommodation ($1.5 million);

Government equity purchases under the HomeShare program ($762 000); and

new stock purchases, including land and existing dwellings ($8.2 million).

North West Youth Accommodation and Training FacilityFunding of $6 million over two years was allocated in the 2016-17 Budget to build a supported accommodation facility in Devonport with specialist support services for youth. The Youth Accommodation and Training Facility will deliver around 25 units of accommodation for low income young people in the Devonport area, who are homeless, or at risk of homelessness. The facility will also include safe and secure accommodation options and support services suitable for young people living with a disability.

Hospitals and Health

In 2017-18, total Hospitals and Health infrastructure expenditure is budgeted to be $210.4 million. The major infrastructure projects include:

Glenorchy Health CentreFunding of $6.7 million has been allocated to the Department of Health and Human Services in 2017-18 for the Glenorchy Health Centre. This project will replace the existing Glenorchy Community Health Centre at a new site. The Centre will be a standalone facility adjacent to the Glenorchy City Central Business District.

Health Transport and Coordination InfrastructureFunding of $5.3 million has been allocated to the Department of Health and Human Services in 2017-18 for health transport infrastructure projects. These funds will be used for investment in improved infrastructure associated with changes to patient coordination, transport and accommodation arising from the One Health System reforms.

Investment will target capital upgrades to support patients that need to travel for services, staff that may need to travel to provide outreach services to patients, or strategies that limit the need for patients or staff to travel in order to provide or receive services under a single state wide Tasmanian health system.

Kingston Health CentreFunding of $4.1 million has been allocated to the Department of Health and Human Services in 2017-18 for the Kingston Health Centre. This project will replace the existing Kingston Community Health Centre at a new site.


Repatriation Hospital CapitalAdditional capital funding of $7 million is provided for the refurbishment and opening of ward space at the Repatriation Hospital, following progression of a proposal through the Government's Structured Infrastructure Investment Review Process.

St Helens Hospital RedevelopmentThe construction of a new St Helens Hospital will achieve a modern and accessible environment for patients, clients, staff and community members in the Break O'Day region into the future. A new allocation of $3.6 million is provided in the 2017-18 Budget in addition to the existing allocation of $8.1 million (additional funding of $414 000 has also been reflected in 2016-17). It is anticipated that the total cost of the redevelopment will be $12.1 million.

Practical completion for the construction program of the St Helens Hospital Redevelopment project is anticipated in December 2018. Payments will extend beyond that period to reflect equipment purchases and final payments made following the completion of the defects period.

Royal Hobart Hospital RedevelopmentThe $689 million Royal Hobart Hospital Redevelopment is Tasmania's largest ever health infrastructure project and will deliver a modern health facility for future generations. This project is jointly funded by the Australian and Tasmanian Governments, including $469.2 million from the Capital Investment Program project, with the remaining funds from the Special Capital Investment Fund, Women's and Children's Precinct, and Cancer Centre phases of the project.

Funding for this project has been sourced from the following:

Royal Hobart Hospital (Hospitals Capital Fund) - total funding of $100 million was provided from this source, which has now been fully expended;

Royal Hobart Hospital Women's and Children's Precinct - funding of $100 million was provided by the Australian Government to fund the construction of a Women's and Children's Precinct within the broader redevelopment program of the Royal Hobart Hospital. This funding has now been fully expended;

Royal Hobart Hospital Redevelopment - funding for a major redevelopment of the Royal Hobart Hospital was secured following an application in late 2010 to the Board of the Health and Hospitals Fund (HHF). The $469.2 million commitment to redevelop the Royal Hobart Hospital is a combined Australian and State Government project with $240 million being provided by the Australian Government and $229.2 million provided by the State Government; and

RHH Cancer Centre - the project total of $689 million includes $20.1 million for the RHH Cancer Centre, which was delivered under the now completed Statewide Cancer Centres Capital output.


Law and Order

In 2017-18, total Law and Order Infrastructure funding is $10.1 million. The major infrastructure projects include:

Aerial Fire AppliancesFunding of $3.8 million has been allocated to the Department of Police, Fire and Emergency Management in 2017-18 to replace and refurbish a number of aerial fire appliances required by the Tasmanian Fire Service.

District Headquarters and Major Support Service Building RefurbishmentFunding of $1 million has been allocated to the Department of Police, Fire and Emergency Management in 2017-18 for the second year of a two year project to improve major police facilities across the state, such as the Tasmanian Police Academy, district headquarters and support services buildings. All buildings are due for major works to ensure they continue to meet the needs of the Tasmanian community, are safe, functional and can meet the Government's policy objectives.

Emergency Services Computer Aided Dispatch SystemFunding of $2 million is allocated to the Department of Police, Fire and Emergency Management in 2017-18 for the final year of the Emergency Services Computer Aided Dispatch (ESCAD) System project. The ESCAD project involves the replacement of the three computer aided dispatch systems currently in operation within Tasmania Police, Tasmania Fire Service and Ambulance Tasmania.

Ron Barwick Minimum Security Prison - Cell Recommissioning Funding of $3.0 million over two years from 2017-18 has been allocated to the Department of Justice for the refurbishment of Division 7 within the Ron Barwick Minimum Security Prison. This refurbishment will provide an additional 40 minimum security cells within the facility. This funding will also help to address ageing infrastructure including electrical and plumbing issues throughout the facility.

Upgrade Police Housing Funding of $1.3 million has been allocated to the Department of Police, Fire and Emergency Management in 2017-18 as part of a five year program to refurbish residential housing for police officers and their families stationed in remote and regional areas of Tasmania. The majority of the housing stock is in excess of 35 years old. This funding will ensure that the housing is of good condition and fit for purpose and will help to encourage officers and their families to take up residence in remote locations.

Roads and Rail

Funding of $294.6 million has been allocated in 2017-18 for roads infrastructure projects, with total roads funding over the Budget and Forward Estimates period estimated at $827.4 million, including $243.0 million in Australian Government funding plus a provision of $120.0 million in Australian Government funding over 2019-20 and 2020-21 for the next Australian Government roads funding agreement.


In addition, the Government has committed funding of $29.9 million for rail infrastructure in the 2017-18 Budget for Tasmanian Railway Pty Ltd with total rail funding over the Budget and Forward Estimates period of $90.6 million, including $28.2 million in Australian Government rail funding. Australian Government Rail funding is provided as equity to Tasmanian Railway Pty Ltd and is therefore not reflected in general government sector infrastructure investment budgets.

Significant roads and rail funding in 2017-18 includes:

continuation of significant works on the Midland Highway, including commencement of the Perth Link Roads project, bringing forward $60 million in Australian Government funding from the future 2019-20 to 2023-24 Australian Government agreement;

commencement of a number of new projects jointly funded by the State and Australian Governments, including the Hobart Airport Roundabout replacement and Bass Highway intersection upgrades at Wynyard;

a significant Freight Access Bridge Upgrades program over four years to facilitate the operation of High Productivity Freight Vehicles on key freight routes connecting Tasmanian ports, transport hubs and major industries;

commencement of an upgrade of the junction of the East Tamar Highway and Mowbray Connector to improve safety;

implementation of a real-time traffic congestion management solution for Hobart;

continuation of construction works on Esk Main Road, Highland Lakes Road, Huon Highway/Summerleas Road intersections, and Murchison Highway;

ongoing road and bridge maintenance;

continuation of the rail revitalisation program; and

continued implementation of the Positive Cycling Policy to improve cycling access and safety, including bringing forward safety works on Bonnet Hill.

Further details of the Roads Program are provided in a separate section of this chapter.

Information and Communication Technology

In 2017-18, Information and Communication Technology funding is $21.3 million. The major infrastructure projects include:

Budget Information Management System ProjectFunding of $2.9 million has been allocated to the Department of Treasury and Finance in 2017-18 to progress the replacement of the Budget Management System.


Digital Transformation Priority Expenditure ProgramIn the 2017-18 Budget the Government has allocated over $60 million to Digital Transformation Priority Expenditure. Over $13.5 million has been allocated to fund the replacement of the core legacy operating system utilised by the Tasmania Police (Project Unify, total project funding of $13.1 million - see below) with remaining funding allocated to commence detailed design work for Justice Connect (to replace legacy criminal information management systems) and the Child and Youth Services (CYS) Client Information System. A provision of $50 million has been made over the Budget and Forward Estimates to fund implementation of the following projects once initial design work and costings are confirmed through the Treasury Structured Infrastructure Investment Review Process (SIIRP):

Justice Connect ($16.6 million over five years, commencing in 2018-19);

CYS Client Information System ($6 million);

Health ICT Priority Infrastructure Program ($18 million); and the

Public Account Reporting and Cash Management System ($5 million).

These allocations represent current estimates. The estimated cost of projects and the timing of project expenditure will be finalised during the detailed planning stage of each project.

Fisheries Integrated Licensing and Management SystemFunding of $1.0 million has been allocated in 2017-18 to the Department of Primary Industries, Parks, Water and Environment for the development of a Catch and Effort Module within Tasmania's fisheries management and compliance system. The new module will support the sustainable management of Tasmania's fisheries resources through improved systems for research, compliance and fisheries management.

Digital Transformation - Project UnifyFunding of $11.9 million over two years from 2017-18 has been allocated in Finance-General to Project Unify to be administered by the Department of Police, Fire and Emergency Management (total project funding including recurrent costs is $13.1 million). The project will develop an integrated and sophisticated operational information system that will support operational decision making, safe communities, information sharing and enhance regulatory and compliance activities. The Agency currently maintains a significant number of core operational systems that are not integrated. The new system is expected to provide significant operational benefits for the Agency as the replacement for a legacy system.

Tourism, Recreation and Culture

In 2017-18, $19.2 million has been allocated Tourism, Recreation and Culture infrastructure expenditure. The major infrastructure projects include:

Cradle Mountain Visitor ExperienceThe Government announced, in the 2016-17 State Budget, a commitment of $15 million towards a visitor centre and associated public infrastructure at Cradle Mountain and viewing facilities at Dove Lake. In response to detailed concept planning and design, total funding of $21.8 million over three years from


2017-18 has now been allocated to the Department of Primary Industries, Parks, Water and Environment to deliver the Cradle Mountain Visitor Experience, consistent with the Cradle Mountain Experience Master Plan, 2016.

The project will revitalise visitor facilities at the existing "gateway" to Cradle Mountain outside of the national park, including a new visitor centre and associated commercial/retail precinct; car parking; shuttle bus and transit facilities; and significantly improved visitor services. At the iconic Dove Lake, within the World Heritage Area, this project will enhance the visitor experience through a new shuttle arrival point and visitor shelter.

June 2016 Floods - Parks InfrastructureFunding of $2.9 million has been allocated to the Department of Primary Industries, Parks, Water and Environment in 2017-18 to enable repairs to Tasmania's important roads and tourism infrastructure damaged in the June 2016 floods (predominantly in the State's north and north west). This is in addition to significant funding allocated for this purpose in 2016-17.

Maria Island RediscoveredFunding of $1.7 million over two years from 2017-18 has been allocated to the Department of Primary Industries, Parks, Water and Environment to support restoration of the World Heritage listed Darlington site on Maria Island and provide substantial improvements to visitor services. This will enable locals and tourists to re-discover Maria Island as a world class experience and iconic destination. The project will protect the values that locals treasure and provide long-term economic stimulus to the East Coast Region.

Three Capes Track - Stage 3Funding of $1.5 million has been allocated to the Department of Primary Industries, Parks, Water and Environment in 2017-18 for ongoing investment in the experience and construction of Stage Three of the track. This stage of the development will provide improved access to Cape Raoul and Shipstern Bluff. Track head facilities will also be developed in the 2017-18 financial year.

Tourism Infrastructure in ParksFunding of $8 million has been allocated over two years from 2017-18 to the Department of Primary Industries, Parks, Water and Environment to continue the delivery of the renewal of visitor facilities in national parks and other reserves across the State. Tourism Infrastructure in Parks will focus on the use and enjoyment of the parks estate by the public; commercial enterprises; and tourism. In partnership with the tourism sectors, the Program will ensure well planned, sustainable, visitor infrastructure and longer term jobs in construction and park maintenance.

Other InfrastructureIn 2017-18, total Other Infrastructure expenditure is $10.4 million. The major projects include:

Biotoxin Testing Laboratory Funding of $1.2 million has been allocated to the Department of Primary Industries, Parks, Water and Environment in 2017-18 to enable the establishment of a biotoxin testing laboratory capacity within Analytical Services Tasmania. The Tasmanian laboratory will provide testing services to shellfish growers


and the broader seafood industry and will minimise turnaround time compared with the current requirement to send samples interstate for testing, thereby improving industry profitability.

Launceston Government Office AccommodationAs part of the Government's centralised property management strategy, funding of $7 million has been allocated over two years, from 2017-18, to Finance-General for the implementation of the second stage of the Government's strategy to improve the management and efficiency of government leased accommodation. This strategy will include the establishment of new contemporary government office space to be leased at the CH Smith site in Launceston. This infrastructure investment will assist with the revitalisation of the CH Smith site, together with priority works as required in the Launceston leased office portfolio, providing an important economic stimulus to the northern economy.

Legislative Council - Chamber OH&S Issues and Disability AccessFunding of $700 000 has been allocated to the Legislative Council in 2017-18 to address occupational health and safety and disability access issues in the Council chamber.

Orange-bellied Parrot FacilityFunding of $2.5 million has been allocated to the Department of Primary Industries, Parks, Water and Environment, in 2017-18, to enable the construction of a new fit-for-purpose facility including improved infrastructure for captive breeding. Construction of a new facility will support the preservation of the critically endangered Orange-bellied Parrot including the capacity to increase the captive-bred population and ensure a greater number of birds are available for release in the parrot's breeding areas at Melaleuca in the Tasmanian Wilderness World Heritage Area. This capital cost will be offset by the proceeds of the sale of the existing facility at Taroona in the State's south.

Silverdome - Maintenance and Building ComplianceFunding of $1.9 million has been allocated to the Department of Premier and Cabinet in 2017-18 as part of an ongoing project to undertake important maintenance at the Silverdome.


ROADS PROGRAMThe Roads Program comprises new works projects and the upgrade and maintenance of established roads. In 2017-18, total roads expenditure is $294.6 million. This includes a State Government allocation of $142.5 million and an Australian Government allocation of $152.1 million.

Table 6.3: Roads Program Expenditure

Start Complete

EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

STATE FUNDED

Co-contribution ProjectsBass Highway - Wynyard1 2017 2018 0.6 0.6 .... .... ....

Bridport Western Access Road1 2017 2018 1.0 1.0 .... .... ....

Brooker Highway - Elwick,

Goodwood, Howards Roads1,2 2015 2017 6.4 1.0 .... .... ....

Domain Highway Planning1,2 2017 2017 1.0 0.4 .... .... ....

Hobart Airport Roundabout1 2018 2019 6.0 0.5 5.5 .... ....

Huon Highway/Summerleas Road

Intersection1,2 2016 2018 4.4 1.0 .... .... ....

Midland Highway - Road Safety

Program4 2015 2018 20.0 9.0 .... .... ....

Midland Highway1,2,3 2014 2019 30.0 9.6 13.0 .... ....

23.1 18.5 .... ....

Roads for Our Future Program4

Bridge Strengthening on Esk and

Tasman Highways2 2016 2019 10.0 4.1 4.9 .... ....

Bruny Island Main Road2 2015 2019 3.7 2.4 0.8 .... ....

Colebrook Main Road2 2016 2019 6.5 4.3 1.3 .... ....

Esk Main Road2 2015 2019 13.0 4.2 4.0 .... ....

Highland Lakes Road2 2015 2018 4.0 1.9 .... .... ....

Huon Highway Upgrade -

Glendevie Passing Lane2 2015 2018 8.0 4.0 .... .... ....

Murchison Highway2 2015 2018 8.0 2.8 0.3 .... ....

23.7 11.3 .... ....

Other Roads InfrastructureAsset Management Ongoing na 5.5 5.7 5.8 5.9

Environmental Management Ongoing na 0.6 0.6 0.6 0.6

Freight Access Bridge Upgrades 2017 2021 19.1 4.8 5.4 4.4 4.5


Table 6.3: Roads Program Expenditure (continued)

Start Complete

EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

Great Eastern Drive 2018 2020 6.3 0.3 3.0 3.0 ....

Infrastructure Development Ongoing na 0.9 1.0 1.0 1.0

Infrastructure Maintenance Ongoing na 64.7 62.7 64.4 66.2

Launceston Northbank 2015 2018 1.4 0.7 .... .... ....

Mowbray Connector 2018 2019 7.0 1.5 5.5 …. ….

Program Management Ongoing na 1.2 1.2 1.2 1.3

Real-Time Traffic Congestion

Management in Hobart 2017 2018 1.8 1.8 .... .... ....

Road Safety and Traffic

Management Ongoing na 7.2 4.5 6.1 6.3

Road Safety

Strategy - Infrastructure5 Ongoing na 3.6 6.8 7.0 7.2

Strategic Planning and Policy Ongoing na 2.9 3.0 3.0 3.1

95.7 99.4 96.6 96.2

TOTAL STATE FUNDED ROADS 142.5 129.1 96.6 96.2

AUSTRALIAN GOVERNMENT FUNDEDInvestment Program

Bass Highway - Wynyard1 2017 2018 2.3 2.1 .... .... ....

Grants to Local Government6 2017 2019 9.0 8.2 0.8 .... ....

Midland Highway1,3 2014 2019 260.0 94.7 59.0 .... ....

Tasman Ramps 2013 2017 15.0 0.3 .... .... ....

105.3 59.8 .... ....

Off-NetworkBridport Western Access Road1 2017 2018 1.9 1.9 .... .... ....

Domain Highway Planning1 2015 2018 4.0 3.9 .... .... ....

Highland Lakes Road1 2018 2020 5.0 2.4 2.5 0.1 ....

Hobart Airport Roundabout1 2017 2019 24.0 6.0 15.5 2.0 ....

Huon Highway/Summerleas Road

Intersection2 2015 2017 17.5 14.9 .... .... ....

North East Freight Roads1 2009 2017 34.0 0.2 .... .... ....

29.3 18.0 2.1 ....


Table 6.3: Roads Program Expenditure (continued)

Start Complete

EstimatedTotal Cost

2017-18

Budget




$m $m $m $m $m

Other Roads InfrastructureBass Highway - Birralee to Exton7 2015 2017 7.7 2.4 .... .... ....

Bridge Renewal Program Ongoing na 1.9 1.2 .... ....

Heavy Vehicle Safety and

Productivity Ongoing na 1.0 0.8 .... ....

Road Safety and Traffic

Management Ongoing na 4.9 1.6 .... ....

Road Specific Maintenance Ongoing na 7.3 7.3 .... ....

17.5 10.9 .... ....

TOTAL AUSTRALIAN GOVERNMENT FUNDED ROADS 152.1 88.8 2.1 ....

TOTAL ALLOCATED ROADS PROGRAM EXPENDITURE 294.6 217.9 98.7 96.1

Estimated Future Australian Government Roads Funding8 .... .... 60.0 60.0

TOTAL ROADS PROGRAM EXPENDITURE 294.6 217.9 158.7 156.2

Notes:1. These projects include both State and Australian Government funding.2. Funding for these projects is provided as part of the State Government's 2014 election commitment of $110 million

for the roads funding package which includes the co-contribution and Roads for Our Future Projects.3. The Australian Government commitment for the Midland Highway is $400 million over 10 years. The Australian

Government will now contribute $260 million over the first five-year period from 2014-15 to 2018-19 and $140 million from 2019-20 to 2023-24. The Tasmanian Government will contribute $100 million across the 10 years from 2014-15 to 2023-24.

4. Planning for the Roads for Our Future Program Stage 2 is underway. Funding allocations for individual projects will be determined as part of this process and included in future Budgets. A general provision of $335 million has been set aside, in the period 2018-19 to 2020-21, to be allocated to future infrastructure investment projects, including Roads for Our Future Stage 2, and to provide capacity to meet cost variation and the impact of the re-scheduling of projects.

5. The State's co-contribution to Australian Government roads infrastructure projects includes $20 million sourced from Road Safety Levy receipts for safety upgrades to the Midland Highway.

6. The Australian Government has 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.

7. The allocation includes Bass Highway road safety improvements.8. 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 allocation of $60 million has been included in both 2019-20 and 2020-21 to provide a more accurate estimate of the likely level of infrastructure expenditure that will occur over the Forward Estimates period.


RECONCILIATION BETWEEN INFRASTRUCTURE INVESTMENT AND PURCHASES OF NON-FINANCIAL ASSETSPurchases 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

2016-17

Budget

2017-18

Budget




$m $m $m $m $m

Purchases of Non-Financial Assets1 524.8 603.1 564.8 390.5 330.8

Less Purchases of Non-Financial Assets excluded from

Infrastructure Investment 75.8 59.3 53.6 48.2 49.6

Plus Infrastructure Investment not included in

Purchases of Non-Financial Assets 85.9 113.3 93.6 78.3 78.3

Equals TOTAL INFRASTRUCTURE EXPENDITURE 534.9 657.0 604.8 420.6 359.5

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


INFRASTRUCTURE INVESTMENT OUTSIDE OF THE GENERAL GOVERNMENT SECTORThis 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 2017-18 Budget does, however, include equity and other contributions provided through the General Government Sector to Tasmanian Irrigation Pty Ltd, Tasmanian Railway Pty Ltd and Metro Tasmania Pty Ltd to undertake major infrastructure works.

Metro Tasmania Pty LtdAs announced in the 2016-17 Budget, funding of $4.5 million per annum over four years will be provided as an equity contribution to Metro Tasmania Pty Ltd to implement a Metro Bus Infrastructure capital initiative that will give the advanced manufacturing sector in Tasmania an opportunity to bid for customisation and fit-out work to deliver an accelerated replacement Metro Tasmania bus fleet. This equity payment will be made by Finance-General.

Tasmanian Irrigation Pty LtdThe 2017-18 Budget provides additional equity funding of $10 million per annum to Tasmanian Irrigation Pty Ltd in 2017-18 and 2018-19 to meet the State's share of increased costs associated with undertaking Tranche 2 irrigation projects.

Tasmanian Railway Pty LtdThe 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 this Budget, the Tasmanian Government is committing additional funding of $59.8 million over four years, commencing in 2019-20, in order to facilitate the second Tranche of the Program. This funding is dependent on a matching contribution from the Australian Government.


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