Vital link between infrastructure and economic development lost in Budget
The Chief Executive of Engineers Australia, Peter Taylor, said that “The initial promise offered by the establishment of Infrastructure Australia shortly after the Rudd Government was elected and its critical role in the third tranche of GFC stimuli has not been realised in the 2010-11 Budget.
“While we welcome the creation of a new infrastructure fund, the allocation of $5.6 billion over five years hardly scratches the surface of the massive task ahead.”
A more pleasing infrastructure announcement was the injection of $1 billion to fund rail projects to boost productivity. The continuation of planning for the intermodal precinct Moorebank, west of Sydney, and the associated integrated transport systems to relieve urban congestion and bottlenecks were also indicators of Government intent to make rail a more attractive alternative than road for the heavy freight tasks.
Taylor added that “It remains to be seen whether the somewhat vague announcements relating to simplified disclosure for corporate bond issues and a proposed tax discount on corporate bond interest income will be sufficient to renew the private sector’s interest in infrastructure investment.
“It is time for the Government to reaffirm its commitment to Infrastructure Australia and its absolutely essential tasks of establishing priorities for major infrastructure without which Australia’s continuing economic development, global competitiveness, and quality of life are compromised.
“Infrastructure Australia also has a major contribution to make in determining the optimum provision of this infrastructure whether by the public or private sectors, or a combination of both,” Taylor concluded.
Further Information: John Bright – 0407 234 490 jbright@engineersaustralia.org.au
Engineers Australia is the common name of The Institution of Engineers Australia with a membership of over 92,000
