Greens Senator Scott Ludlam has questioned Minister Conroy on the government's decision not to include public transport in its $42 billion dollar economic stimulus package.

"The Minister showed a formidable absence of understanding in his response. I asked the Minister why public transport and cycling infrastructure was being neglected, given the multiple benefits of these investments. I also asked what was being done to link new public housing into public transport services and whether the potential to create new Australian jobs in transit manufacturing had been considered."

The Australian Greens say public transport breakdowns in two major cities yesterday underscore the need to upgrade the nation's ageing transport infrastructure.

Trains ground to a halt in Melbourne and trams stopped in Adelaide as infrastructure buckled under blistering temperatures. In Melbourne, the city's rail system was thrown into chaos when a record 150 services were cancelled.

The Australian Greens say plans to overhaul the Sydney metro could create a sustainable city for the future, but only if they are underpinned by public transport and affordable housing.

"The plans reported in the media today are an example of what the federal government could achieve through its Infrastructure Australia Fund. However, urban consolidation is only ever effective if there's provision for affordable housing and developments are networked with fast, affordable public transport."

The Australian Greens Transport spokesperson, Senator Scott Ludlam today said the Prime Minister's announcement of $580 million dollars to fast track coal transport is an "horrific use of tax payer funds" and an opportunity to embrace a ‘Green New Deal' has been missed.

The Australian Greens are calling on the Federal Government to increase its investment in public transport, with the Prime Minister due to announce more infrastructure spending later today.

The Australian Greens have successfully moved a motion for a Senate Inquiry into Public Transport today, and are proposing substantial Commonwealth funding for public transport including allocations under the Building Australia Fund, which is being debated in Parliament today.

Senator Scott Ludlam said creating a fast, efficient light rail network in Perth’s areas of high mortgage default will help rescue land values and improve services.