The federal government's decision to increase an infrastructure fund for the mining states is nothing more than a desperate bid to buy votes, Opposition Leader Tony Abbott says.
Prime Minister Kevin Rudd announced in Perth on Wednesday the government would direct a bigger share of the proceeds from the resources super profits tax back to the mining states of Western Australia and Queensland.
In his response to the Henry Tax Review, Mr Rudd initially said the fund would be made up of $5.6 billion collected from the tax to go towards rail, roads and ports.
But the government will now put in an extra $400 million - already provided for in the budget - into the fund between 2010/11 and 2013/14, the Prime Minister said.
Mr Abbott said it was a clear sign the government was getting desperate and trying to "buy votes" ahead of the 2010 election.
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"He said last election he was going to set up a special fund with the proceeds of Gorgon (under the petroleum resources rent tax) to put infrastructure into Western Australia," Mr Abbott told Fairfax Radio on Wednesday.
"To the best of my knowledge that has not yet happened because the Gorgon proceeds don't start coming until 2014."
"People are getting pretty cynical about everything Kevin Rudd promises and I think this looks like an election buying bid not a serious attempt to build Western Australian infrastructure."
Mr Abbott said the private sector builds much of the infrastructure in the state anyway and this is a sign Mr Rudd believes government spending is the "be all and end all".
"In promising more from government and extracting money that should never be extracted from companies, workers, retirees and consumers in this way," he added.
