Coalition accused of wasting $18m on 'propaganda' over transport projects

Extract from The Guardian

Labor says money should be spent on building infrastructure, not on ‘a propaganda campaign designed to conceal ... the collapse in infrastructure investment’

The office of the deputy prime minister, Warren Truss, has confirmed a $305,910 market research contract could lead to an $18m transport infrastructure advertising campaign. Photograph: Lukas Coch/AAP

Daniel Hurst Political correspondent

@danielhurstbne

Wednesday 6 January 2016 06.03 AEDT

The Turnbull government has been accused of wasting infrastructure funding on “propaganda” as it pressed ahead with plans to spend up to $18m promoting its involvement in transport projects.

Newly released contract records reveal the Department of Infrastructure and Regional Development has awarded a $305,910 contract to the Wallis Consulting Group for what it described as “Market Research – Building Our Future”.

The office of the deputy prime minister, Warren Truss, confirmed the research could pave the way for an advertising campaign with a budget of up to $18m.

A spokesman for Truss, who is also the infrastructure minister, said previous market research commissioned seven months ago found “significant knowledge gaps” and suggested that people “were interested in knowing more about the Australian government’s investment in transport infrastructure”.

“As a result of the market research, an $18m national advertising campaign is being considered to raise awareness with Australian road users that long-term planning and investment into road and rail infrastructure is vital to ensuring the economy remains competitive, people and goods can move effectively on safer roads, with less traffic congestion and faster travel times as well as the economic and social benefits delivered,” he said.

Market research is typically conducted before a government formally approves taxpayer-funded advertising, because campaign guidelines say such activities “should only be instigated where a need is demonstrated ... and the campaign is informed by appropriate research or evidence”.

A government notice disclosing the $305,910 consultancy contract cited the “need for independent research or assessment”. AusTender records show the earlier market research contract, worth $214,720, was awarded to JWS Research in June 2015.

The Coalition foreshadowed an infrastructure communications campaign in its budget update in December, when it also said $999m in funding for the Northern Connector in Adelaide, the Armadale Road duplication project in Perth, and the second stage of the Gold Coast light rail would be met from within the existing infrastructure investment program rather than additional allocations.

Budget documents said the communications campaign would also be funded from within the program, but did not put a price tag on the proposal.

Labor’s infrastructure spokesman, Anthony Albanese, said the new market research contract was “the practical result of the government’s decision to transfer funding from infrastructure building to infrastructure propaganda” in the midyear economic and fiscal outlook.

“The government should invest money in building infrastructure rather than wasting money pretending that infrastructure is being built when we know there has been a 20% decline in public infrastructure investment since it was elected,” he said.

Albanese was referring to Australian Bureau of Statistics figures showing the value of engineering construction activity in Australia. Total public investment fell about 20% between the September quarter of 2013 and the June quarter of 2015, although this measure includes federal, state and local government spending.

The Labor frontbencher derided the government’s explanation of the need for the campaign as “Orwellian”.

“Australians expect Mr Truss to actually build infrastructure, not to manufacture a propaganda campaign designed to conceal his failures and the collapse in infrastructure investment,” Albanese said.

Truss’s office did not respond directly to Albanese’s “propaganda” claims, but said market research was commissioned in June “to gain an understanding of the level of awareness around the Australian government’s investment in transport infrastructure”.

“That research demonstrated a general lack of awareness and significant knowledge gaps within the Australian population regarding the Australian government’s investments in transport infrastructure,” a spokesman said.

“The research identified that members of the public in general were interested in knowing more about the Australian government’s investment in transport infrastructure.”

Truss has previously defended the government’s record, telling parliament more than $9.7bn in federal funding for infrastructure would flow next financial year in “the single biggest commonwealth infrastructure investment to date”.

Malcolm Turnbull has attempted to draw a line under the transport policies of the former prime minister, Tony Abbott, by expressing a willingness to provide federal funding for urban rail projects, rather than focusing on roads.