Trad turns trend on Infrastructure funding
27 June 2018
IPA: The 2018-19 Queensland Budget has delivered a welcome focus on infrastructure, with Treasurer Jackie Trad turning around the trend decline in infrastructure funding with more than $29 billion dedicated to road, rail, school, and hospital projects over the next four years, says industry think tank Infrastructure Partnerships Australia.
A windfall surge in coal and gas royalties alongside increasing government debt underpins infrastructure funding and puts the sunshine state back on the right trajectory.
“We welcome the Queensland Government’s commitment in this year’s budget to turn back the trend decline in infrastructure funding and ramp-up investment to relieve pressure on urban congestion and provide more schools and hospitals to the community,” said IPA CEO Adrian Dwyer.
“While this Budget is promising change in the right direction, the Queensland Government will need to do more work in budgets to come to fully restore infrastructure funding to the 10-year average.
“Industry will be pleased to see $3.7 billion on the books for the Cross River Rail project as it moves from signature promise to full scale delivery.
The Queensland Budget also allocates $371 million for a new contactless public transport ticketing system for Brisbane, along with funding to commence the M1 Motorway, and rail infrastructure upgrades.
“It’s good to see that despite continuing fiscal pressure, Treasurer Trad has prioritised hard dollar funding for infrastructure in the sunshine state.
“But if the Queensland Government wants this infrastructure spend to be sustainable and increase in the long-term – while keeping debt levels under control – they will have to follow the lead of governments south of the border and prosecute the case for asset recycling and balance sheet renewal.
“Without additional capital from asset recycling, the Queensland Government will not be able to provide for the needs of a rapidly growing population,” Mr Dwyer said.
Infrastructure Partnerships
Australia is the nation’s industry think tank providing independent
policy research focused on excellence in social and economic
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Source: Infrastructure Partnership Australia - www.infrastructure.org.au
Contact: Media Contact: Mitch Dudley 0430 003 137; Michael Player 0424 698 189
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