Budgets with a strong focus on infrastructure are a catalyst for economic growth. They foster an environment for deeper discussions around innovation, creating a future we want and developing capacity to cope with increased populations and new economies.
The Budget announcement regarding the Western Sydney Airport (WSA) development is much more than providing additional aviation capacity in the Sydney basin. The project has the potential to create a vibrant engine room that drives employment, creates communities and establishes integrated transport hubs. WSA's associated master planning and the multi generational economic impact of the airport will be a catalyst for the region and for the people of Western Sydney.
Obviously rail is an important piece of the Budget – rail is an essential part of our nation building and governments are coming to understand how to more effectively fund rail and meet user needs. The programmes will both increase capacity and drive productivity improvements and supply chain efficiencies across the nation.
Across Asia and UK, we have seen the benefits derived from the linkages and integration of transport systems and utilities and the positive impact on the broader social fabric of urban life. We will now begin to see this happening in Australia.
The Budget also contained a number of measures aimed at improving the affordability and reliability of energy in the form of investment in infrastructure and institutions – a great step towards creating energy certainty.
As for the future – we look forward to being part of aligning assets to strategy, creating meaningful discourse with stakeholders and to bringing ideas to life.
Managing Director ANZ
The Australian Governments’ spending on nation-building infrastructure is the foundation of the 2017 Federal Budget. The cornerstone is to fast track roads, rail and other major infrastructure projects over the next 10 years.
Key winners include the establishment of the Western Sydney Airport Corporation to manage some $5.3bn of Commonwealth funding for the project. On the ground $8.4bn is allocated for the Inland Rail project, with a further $10bn going towards creating better connections between cities and regions.
Ongoing discussions with NSW and Victoria aim to continue to advance the Snowy Hydro 2.0 concept. The Treasurer has also foreshadowed investments in other new energy generation, transmission and storage infrastructure, as well as a $90m energy security plan.
Other big spend areas are: Defence $30bn, Education $33bn and Health $75bn.
Looking to the states, the Commonwealth will bolster spend on infrastructure projects across road, rail, health and education.
The government has announced that it will be establishing a new infrastructure financing unit in the Department of Prime Minister and Cabinet. This indicates it will take the position that in order to drive job and economic growth, government will fill in some of the market funding gaps that the private sector can’t meet.