Ahead of the 2019 Queensland State Budget, QMCA has called on Treasurer Jackie Trad and the Labor Government to make a significant investment in infrastructure across the state to address a growing infrastructure deficit.
CEO, Jon Davies, outlined the key priorities for the sector, “In the country’s most decentralised state, government leadership in infrastructure investment is critical so that communities and business can access the infrastructure that is required to grow the state economically and advance the prosperity of all Queenslanders in competition with other states.”
“With the sale or leasing of assets not favoured, the state government has limited options to fund investment and responsibly balance the state’s finances. As such, we would encourage the government to increase debt levels, improve collaboration between government and industry and work in partnership with industry to develop a long-term, reliable, visible and sustainable pipeline of projects that will keep the state competitive.
“An increase to the state’s debt is not normally something that industry calls for. However, there is a significant difference between good debt and bad debt. Fundamentally; taking on additional debt to fund infrastructure, with a positive cost/benefit ratio, is a good investment. The immediate gains in employment and investment throughout the construction supply chain are supported by a long-term benefit in improved productivity, social mobility and prosperity, together with the ripple effects on local economies positively impacted by the increased fiscal activity.”
“Through improved industry collaboration, the state government can save tens of millions of dollars across major projects meaning more infrastructure can be built for the same budgeted funds. Increased collaboration can come through improved industry consultation, more equitable contract terms and a partnership-based approach to risk management. In markets where this approach has been taken, significant success has been seen, with studies showing that projects can be delivered by up to a third less than under traditional approaches to project procurement and delivery,” said Mr Davies.
QMCA would like to see funding allocated for the following projects as part of this year’s state budget:
- Paradise Dam Upgrades
- Burdekin Falls Dam Upgrades
- Centenary Highway Bridge Duplication
- Somerset Dam Upgrade
- Gold Coast Light Rail Stage 3a
- M1 Coomera Connector
- Remaining funding for Cross River Rail
QMCA would also like to see funding from Queensland Government to match the pre-election commitments of the Morrison Government, including projects such as:
- Mackay Port Access Road
- M1 Upgrades – Eight Mile Plains to Daisy Hill
- M1 Upgrades – Varsity Lakes to Tugan
- Gateway Motorway Upgrade ( Bracken Ridge to Pine Rivers Bridge)
“Our wish list for investment is not unrealistic, and if committed to will bring multiple benefits to the state economy and our regions. While an increase in debt can help to fund this project pipeline in the short term, serious consideration needs to be given as to how much-needed investment in infrastructure can continue to be funded in the future to avoid an increasing infrastructure deficit with other states,” said Mr Davies.
