POLITICAL brinkmanship has erupted over regional infrastructure funding handed down in the federal budget last week and the impact of broader spending cuts on rural Australia.
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Treasurer Joe Hockey delivered big budget promises on infrastructure spending, underpinned by a $50 billion investment by the decade's end, to drive over $125b of new spending across the continent.
The budget also included the Coalition's $1b National Stronger Regions Fund, together with $200 million of new Blackspot funding and $350m extra for Roads to Recovery.
Transport Minister and federal Nationals leader Warren Truss said the Abbott government's first budget confirmed the Coalition's pre-election promise of $1b to a new National Stronger Regions Fund.
"We have kept that promise, committing the funds to provide $200 million a year from July 2015," Mr Truss said.
"This funding will support priority projects which create jobs and support economic growth in regional Australia - without a mining tax.
"From mid next year, the fund will enable councils and community groups to apply for grants between $20,000 and $10m, to meet up to half the cost of suitable community building projects."
Mr Truss also pointed to the Coalition's agriculture commitments as per its $150m promise, underpinned by $100m for applied agricultural research and development and $320m in drought relief.
He said the budget also confirmed $314.2m for local projects.
But opposition infrastructure spokesman Anthony Albanese said Tony Abbott's "feigned interest in infrastructure investment has been exposed as a mirage".
He said the budget "failed to provide any new money, despite the government's over-inflated hype".
Mr Albanese said the government claimed to have delivered an infrastructure package but all but two of the dozens of projects claimed were funded in previous Labor budgets.
"Mr Abbott's infrastructure package, hyped for so long to create the impression of activity, does not involve a single new dollar of investment," he said.
The National Farmers Federation and Australian Food and Grocery Council (AFGC) welcomed the government's moves to invest in regional infrastructure.
AFGC chief executive Gary Dawson praised the government's infrastructure commitment, despite the "magnitude" its task in instilling budget discipline to return a surplus without harming consumer confidence while stimulating growth.
"For the food and grocery and agri-food sectors, which are spread across the length and breadth of the continent, this massive boost in infrastructure planning and delivery is essential in developing supply chain solutions that create world leading, efficient channels to market," he said.
"Getting costs down to improve competitiveness is urgent and regulatory costs and energy costs are two areas where we seem to have a great capacity for self-inflicted damage."
"This government has clearly staked its reputation on getting the settings right to kickstart growth and investment to drive productivity and competitiveness gains."
Colin Bettles
National political writer for Fairfax Agricultural Media.
National political writer for Fairfax Agricultural Media.
