Australian cities have been planned around convenient road use by private vehicles and mass transport of goods by trucks. We need to review our transport funding and continue the increase in public transport and low carbon transport infrastructure begun by Infrastructure Australia.

Transport fuels are the third highest contributor to Australia’s greenhouse emissions (14% in 2006) and the fastest growing contributor (30% increase over 1990 levels). The problem is a global one, with a recent EU report citing transport emissions as ‘the single biggest threat to the achievement of Kyoto targets’ (EEA 2006).

Improve public transport

The Federal Government needs to inject significant investment into urban and intercity rail, and to further reduce roads spending. In addition, tax breaks for private sector investment in public transport infrastructure could encourage additional investment, for example, through infrastructure
bonds.

The Federal Government could also fund the National Cycling Strategy and establish an Office for Active Travel to develop programs to support walking and cycling in conjunction with local government. Of course funding for active travel needs to be supported by urban policy and planning processes that will ensure livable places.

Remove perverse transport subsidies

Subsidies that encourage the use of private car transport over public transport should be removed, including the Fringe Benefit Tax (FBT) concession for company cars. Federal subsidies for greenhouse-gas-intensive transport are perverse in social, economic and environmental terms, mainly through the Energy Grants Credits Scheme, which exempts certain industries from fuel excise ($350 million in 2005-06), and natural gas/LPG excise exemptions ($710 million), as well as the FBT arrangements that subsidise workers’ private car use ($1130 million).

Extend national rail freight

Australia has significant potential to utilise alternative low or zero emission fuels, and needs to do so rapidly. This will have the added advantage of reducing our dependence on diminishing oil resources. A national freight strategy should be extended, and increased investment in shifting freight from road to rail must be a priority, as must measures to improve the fuel efficiency of the current truck fleet.