2HD Breakfast, Paul King

RICHARD KING: I did mention I received a– hang on, where is it now. Yep, the Minister for Infrastructure, Transport, Regional Development and Local Government in our neck of the woods this morning. It’s an announcement about funding for a new Cessnock bypass and Muswellbrook bypass. In fact, the Minister is on the line now. Good morning, Minister.

CATHERINE KING: Good morning Richard, how are you?

RICHARD KING: Good, thank you. We had a little bit of confusion there. We’ve had phone calls and text messages flying all over the place. But yeah, welcome back to our area. And look, I mentioned earlier when I said I was hopefully going to be speaking to you this morning. I get a lot of calls from people early in the morning heading up to the mines, et cetera, working in the Hunter Valley. I know– in fact, my son who’s an engineer is working on the Singleton bypass. But you’ve got some good news re a couple more bypasses that are going to be happening as well. Can you tell us about that?

CATHERINE KING: Yeah. It’s actually three weeks ago I was up having a look at the progress on the Singleton bypass, and it’s really coming along well. But today we’re announcing– because that work is going so well, it’s meant that we’ve been able to bring the funding forward for starting the work early on the Muswellbrook bypass. That’s a really important 9.3 kilometres of road. It’ll take about 13,000 to 20,000 cars per day out of the main streets of Muswellbrook. That early money that we’re bringing forward means they can start doing some of the early work to get the site all ready for construction.

So, that’s one of the announcements we’re making today. And of course, just making sure that we continue to plan for the future given the growth that we’re seeing throughout the Hunter, given people have discovered the secret of what a beautiful part of the world it is, and are wanting to move here. We’re seeing increasing numbers of housing development, and that’s also meant that for Cessnock, that has meant that trying to get some congestion out of there is going to be important. So, we’re putting in $5 million today to kick start the planning process to look at a future bypass for the town of Cessnock.

RICHARD KING: We keep hearing about major infrastructure projects. They’re a huge blowout. Just re: Singleton, is that on track sort of budget-wise and time scale-wise, Minister?

CATHERINE KING: Absolutely, as far as I understand it. Obviously, the people delivering the projects are the New South Wales Government. I was on site with Jenny Aitchison on the day three weeks ago, and that project is looking very good. As far as I’m aware, there haven’t been cost blow-outs on that project, which is great to hear. It was great to see some of the workers out there. Obviously, it’s a really important project for the region, and good to see that progress is being made.

RICHARD KING: And look, while we’re talking about infrastructure projects, the extension of the M1, I mean, every time we have holidays or long weekends and even Friday afternoons, the people heading south, either up to Port Stephens or further north, there’s always a bottleneck here. We’ve had the widening of– in fact, it’s right in front of where I am at Sandgate. That widening process has been going on for a long time. I believe that should be finished next year. But the M1 extension, I think that’s a couple of years away at this stage, am I…

CATHERINE KING: [Talks over] Yeah. Well one of one the issues we’ve obviously had– and you can see it all around, is there’s a huge amount of road construction happening at the moment, and that means that there’s been some capacity constraints in terms of these projects. So, trying to make sure we sequence them in a way that keeps fabulous construction workforce working, but also then doesn’t mean that we just don’t have the resources to be able to deliver these projects. So, you can see from whether it’s Hexham, Raymond Terrace, the Singleton bypass, now being able to bring forward the Muswellbrook bypass and start the work to plan the Cessnock bypass and then other projects that are on the schedule for delivery with New South Wales. Really, we’ve got to make sure that we keep that capacity and pipeline of projects going, but we also don’t stretch the system to such an extent that then costs flow out, or we have to import workers from elsewhere.

RICHARD KING: 8:09 on Tuesday, my guest, the Minister for Infrastructure, Transport, Regional Development and Local Government – you’re wearing a number of hats here – Catherine King. Look, a hot topic at the moment, the financial situation of Newcastle Airport. I don’t know how much of this comes under your umbrella, but I know there was a fair amount of federal money that’s gone into the extension of the runway there. Under construction at the moment is the new international airport, but people are concerned about the liability for ratepayers of both Newcastle and Port Stephens, who jointly own the councils, jointly own those airports. How much oversight do you have on what’s happening at Newcastle Airport Minister?

CATHERINE KING: Well, I don’t have a great deal of oversight into the financials of the airport. Obviously, it is run and managed by the two local councils, and so I don’t have line of sight of the management of the airport. We’ve certainly put grant money in for upgrading the infrastructure, which then enables an expansion of the airport, which then also enables you to have more passengers coming in if you have international flights coming in, and that obviously increases the capacity of the airport for revenue. But they are questions that you’d really need to direct to the local government area.

RICHARD KING: Yeah, it’s a very hot topic. The Lord Mayor of Newcastle, who I spoke to yesterday, has requested an inquiry into that. So, we’ll then no doubt hear more from the New South Wales Government on that particular one.

Another hot issue is obviously the budget which will be out next week. Jim Chalmers, our Treasurer, announced it will be a deficit budget next week after we’ve had a number of surpluses, and deficit budgets, I think, are predicted for the next decade. Will that have much of an impact on all these major infrastructure projects, Minister?

CATHERINE KING: Well, we’ve got a $125 billion infrastructure pipeline that is built into the budget over the next decade. And so when projects come off, new projects come on. So that’s sort of sat and is pretty stable. We’ve increased in fact the budget from the Commonwealth for infrastructure funding. So I don’t anticipate that we’ll see– we’ll see some good news– we will see good news for new infrastructure projects in the budget. But let’s wait till budget night to see what all of the broader figures are. Obviously, I think what the Treasurer, Jim, was indicating that, you know, it would be no surprise to people that we have an event like Cyclone Alfred, that there is some impact on the budget in relation to that, whether it be in terms of claims for fixing roads, rail and but also the significant economic loss many of the businesses and individuals have experienced up there as well. That will, of course, have an impact, as every single disaster does each time on the budget, and he was just reporting that.

RICHARD KING: Peter Dutton yesterday has called for the deregistration of the CFMEU following these fresh allegations of violence, particularly directed at women and the influence of organised crime and corruption within the CFMEU. And he’s calling for legislation changes, et cetera. I know Murray Watt said it’s reckless. Do you have a view on this?

CATHERINE KING: Yeah, I do. I mean, a couple of things. I mean, the first thing, none of us tolerate this sort of activity in any workplace. It’s criminal activity. And we need to make sure that every– you know, from an infrastructure point of view, I want to make sure every assurance that every single dollar of taxpayer money is going to pay workers properly to make sure we actually deliver that infrastructure. And so, I’ve sought assurances from the states and territories that they’ve got the right processes in place to check that all the time.

But in terms of the call from Peter Dutton yesterday, I mean, this is a bloke who has failed to clean up, you know, this– deal with these issues when they were last in government. Now thinks that deregistration– which basically means the union will still operate, they just won’t be registered and they won’t have any oversight. So, what we’ve done is put it into administration so that the people who we were concerned about have no part in running the organisation. You’ll see with deregistration, they will be back in pretty quickly. It means the union still can go to Fair Work Australia, the unions still exist. It just won’t be registered and it won’t have that regulatory oversight. So I’m not sure how that’s actually going to clean up or fix it.

And then secondly, you know, we have already very strong laws in place that allow the sorts of things– you know, again, we’ve gone and looked to America to see what the Americans can tell us. We’re Australia and we know pretty much what our laws say. We’ve already got really strong laws that allow us to go after– you know, the criminal syndicates that are behind some of these activities. The issue is we’ve got to back in the administrator to actually do the job properly. Some of this stuff has come to light because it is in administration. And there is– you know, thorough audits and investigations being undertaken. And, you know, I welcome that the Victorian Government’s now, you know, increased money for the taskforce or increased the focus of the taskforce to try and deal with these issues. But you know, let’s be clear, none of us have any tolerance for this. We’re working our way through how we actually fix this and that will take some time.

RICHARD KING: Appreciate your time this morning, Minister, and enjoy your time in the Hunter Valley I’m sure you will.

CATHERINE KING: [Laughs] I always do. Thank you so much.

RICHARD KING: Good on you. Thank you. Minister for Infrastructure, Transport, Regional Development and Local Government, that’s a mouthful. Catherine King on 2HD.