Senate Rural and Regional Affairs and Transport Legislation Committee, , 3:08:12 to 3:22:25
Discussion on the closure of the CDG program, the status of contracts under the Priority Community Infrastructure Program (PCIP), and unallocated funding for urban and regional precincts.
Topics: Infrastructure, Grants administration, Regional Investment Corporation
Speakers: Jessica Hall, Hon Bridget McKenzie, Senator Ross Cadell, Mr. Jim Betts, Unknown Speaker, Interjection, Melissa Cashman, Rachel Parry, Senator Glenn Sterle, Speaker 15
>> Let's go on the IP funding. You just mentioned some some funding of renewable zones.
>> Yes.
>> How can that do that under national land transact for road and rail with minances? Can it be for renewable zones?
>> It's for the road linkages to the renewable zones.
>> It was for the road linkages. Okay.
>> Um, no, I've lost.
>> Sorry.
>> No, no, it's all good. It's all good. Uh, we've done that. We've done that. Uh just with the Australia Post electrification, how much is left on
>> Um Senator, that would have gone to our Australian Post colleagues. So I don't have those numbers in front of me, but our corporate colleagues may.
>> But the corporate colleagues should know how much has left the building.
check. I think it's partly grant funding to Australia Post and partly equity. So that $50 million broke down between those two components. It's something that we normally report into the environment and communications committee
>> but is there >> on your books
>> but it's only recently allocated in the budget so I'd be surprised if um that money had been expended by Australia Post at this stage.
When you're ready to go with the CDG questions I'm ready or you're getting back to me on that? >> So I want to understand how much in total has been returned in consolidation consolidated revenue from [clears throat] CDG. Miss Wall you can't tell me that. So in
regards to the CDG program um uh since May 2026 um the CDG program has now closed with all projects being finalized by 30th of June. 28 CDG projects were identified as unable to complete by that date. Of these 28 projects 16 were mutually terminated and 12 were transferred for negotiation to a FFA. The Australian government committed 2.4 4 billion to the CDG program. Um, of the 1,481 approved CDG projects, 1,416 were completed and acquitted. 53 were terminated and 12 were transferred. As of 30th of June 2026, the program expended the 2.2 billion in Australian government funding.
>> Say, sorry, been returned to consolidated revenue?
so that leaves um 200 million. I will just see if that was returned. I don't have that information, but I'm just getting that
>> because today's paperwork um my advice is lists $105.4 $4 million unallocated in 2425 and $1.3 million unallocated in 2526. So I wanted to understand, have all those funds been returned to the consolidated pool? That's on page two of document part 1.4 received from the department?
>> I'm just waiting for that to come >> but the team will be here later today as well, so we'll be able to answer that
>> about consolidated revenue returns. >> In the documents provided at last estimates, there was $30 million funding committed but not contracted for the 2627 year. How much of these funds have been contracted towards which projects? And that's on the priority community infrastructure
>> Bear with me.
>> Do we need outcome three to answer that
>> It's possible. Um so most of these questions are for outcome three senator. >> Expenditure. I can give you expenditure to date under the program. So as of 31st of August, expenditure to date under the program is 413.1 Um all projects are required to be completed by 30th of June 2027. Um we have 93 projects funded under the program. Um 21 projects are already complete. 69 projects are contracted and underway. Um and two projects were withdrawn from the program. One was at the request of the applicant um and uh another one has is being delivered through a different program because
>> so which committed program projects are not yet contracted.
let me see that [clears throat] might be a level of detail that the team might
actually have senator. Okay. Um, is it now too late to enter new contracts for projects under this program?
Um, the team has been working through and going through all of the um, uh, program with everybody. Um, it's a oneoff closed non-competitive round. Um, >> so has it closed? It would close to applications on the 30th of November 2023.
Um, were any projects entered any projects successful who arrived after the 30th of
>> I don't believe so, Senator, but I will double take that on notice and confirm
later this afternoon. Um so by which date if projects are not contracted must funds return to consolidated revenue.
So they wouldn't have been given funds there's no contract. So I no
>> that makes sense.
>> Yes.
>> But what by what date?
Well, the projects the program
>> when does it cut off? Do we say or are we just
>> Well, the program itself has to be finalized by the 30th of June 2027. So um in regards to um anything that is not acquitted by then um that means that the um if there's no projects in um uh contract by 2027. um the program would either have to be expended or the um program would actually have to um all those funds would actually have to be returned to government to consolidated revenue if
that makes sense. So if a project's not yet contracted, there is only eight months to be completed and acquitted by.
>> Yes. But I'm presuming all of the and I will confirm for you. We need the um the detail will be in the people coming in program three, but um all of these um will have been contracted or will be in the process of being contracted unless they're under an FFA.
Today's document um also shows I I mentioned $30 million in my my question but also shows $16 million of is unall allocated under PCIP in addition to the 30 so it's $46 million unallocated is that does that marry up with everyone's
>> I will take that 46 on notice Senator >> All PCP are contracted, Senator. >> All PCIP are contracted.
>> They're all contracted.
>> Yes.
>> So, they've got 8 months to get the >> Precincts and partnerships program. In the documents provided last estimates, there was $238.3 million in unallocated funding under both urban and regional precincts. and partnership programs over the period 25 26 and 26 27 years. Is the government proposing to open an additional round of applications for the pre syncs and partnerships program?
Um the program the urban um was announced and with funding of 100 over 3 years for 24 to 25 um as of 31st of August um has announced funding um all approved projects
>> so these these questions you're asking are squarely within outcome 3 and the people who administer these programs will be here at the appointed time this afternoon to answer them. So, Miss Hall is doing a good job pinch hitting, but it's going into a level of detail where it'll be frustrating for you, Senator, um until we get the right people in the
>> It just go I guess I I don't I don't want to know the details. It's more about in these set of questions. We'll have other questions for the details, but the $238.3 million that's sort of sitting there unallocated between 25 26 26 27. Yeah. Um is a lot of money and I'm just wanting to given that that first round done and dusted is that sitting there ready for a
batches of the UT P and R triple P. Um so and the dates for the um completion of those um have been extended. Um so is
the 238 238.3 million more about cost blowouts on existing projects than running a a second or an additional round. Sorry, not a second round, an additional round.
So all FFAS for batch two and batch one have been finalized. Um funding agreements for the three um for for batch three have been um announced. Um I think in regards to um project extensions um and I wouldn't say cost blowouts but I think that there is a level of consideration given the current environment that we're in um with um issues around um uh uh um increases in fuel and things like that. there will be some consideration but the government has been very thoughtful I guess in regards to making sure that the contracts around that um are appropriate and if there is an opportunity to either run additional rounds in any of the programs and or return money to consolidated revenue they make those decisions at the
>> Thank you. I've got another series of question um in corporate but yes Senator
>> sorry before we move on um we do have the answer to the Australia Post question you asked um Senator
>> so just in terms of how much has been paid to Australia Post as yet answer is nil for this financial year
>> fantastic thank you Mr. Smith. Appreciate it.
>> So Cadell,
>> thank you very much. Um want to go to some I believe corporate but if you tell me the aviation I'll move them. Questions on notice. I asked around um uh department was asked whether a uh has quantified the cost of compliance with comwalth regulations for regional operators. That was question on notice 118 from last time. Do you want that here or do you want that in
>> let's take it in aviation. Is it the questions that you put on notice through
>> Yeah. just some greater clarification on that which will help with the other hearing we're getting
>> outcome too we'll be ready to answer all the questions that
>> so it's a series of just so
>> just don't want to get past it and say oh that's a corporate question and come back
>> no that's okay um do you want to just give me your question Senator or do you have a whole series of them just so we're prepared to answer them in
>> there's a few of them but I'll I'll come
>> okay as long as we know they're related to those questions that's
>> yeah they all are check so questions on 118 121 >> and 130 and 129
>> thank you
>> just the difference between not assigning costs uh to between regional just general aviation government costs. That's the general thing that will be
>> When do we when is lunch? I was just going to >> No, I'm not going to worry about that. >> Okay. >> I think we get on with it. >> We're done.