QMCA Orange Logomark

CALL FOR COMMITMENT TO MUCH NEEDED INFRASTRUCTURE FUNDING IN QUEENSLAND

Tonight, the Federal Government will hand down a much-delayed Budget for the 2020/21 Financial year. This budget is critical in setting the platform for the nation’s economic recovery. The construction sector needs to play a vital role in that. The indications are, through the media releases, that there will be money invested in infrastructure projects. This is welcome and important, particularly for us in Queensland.

In any economic recovery, there are a series of tiered approaches to help stimulate investment, jobs and growth. The climate at the moment is no different.

The first stimulus that included the job keeper and other payments is very much like an adrenaline shot in the arm.

The second round of stimulus has been focussed on “shovel ready” projects that can be commenced within 6-12 months and finished within 24 months. This has resulted in many projects being brought forward, though often they are not as economically productive as investment in longer-term economic infrastructure that is intergenerational.

The third layer of stimulus is what we are looking for from the budget tonight. This must include a range of initiatives including a commitment to “shovel worthy” infrastructure investment. That is investment in economic and urban infrastructure that will not only create jobs during construction but also deliver long term benefits to the economy. We have detailed a whole raft of programs and projects that fit that criteria in our “Election Issues” paper we released recently.

Some of those projects have been committed to so far. We will wait to see what else comes out of tonight.

A second part of this third tier of stimulus is also policy reform, that is focussed on delivering opportunities for greater productivity amongst the sector. The Australian Constructor’s Association (ACA) has been calling for a range of reforms to be considered by government and they recently released a paper “Sustaining the infrastructure industry – Challenges, solutions and case studies”. This is the first part of a series of papers and reform agenda that is being called for including the creation of a “National Reform Initiative” reporting to a proposed Minister for Construction. The QMCA is supportive of this; however, there are many challenging policy issues in Queensland that need addressing to improve productivity.

These issues include such things as “minimum conditions” and “ethical contracting standards”. Whilst the industry supports the essence of working and developing supply chains and local sub-contractors in regions where projects are; “reforms” that are simply a cover for higher wages, without matched productivity improvements are a recipe for disaster. These “reforms” are not reforms at all- but simply productivity reducing policies that hamper contractors (and engineers and supply chains) ability to work closely with their employees, and unions, to deliver projects more efficiently and effectively. Whilst these are very much a Queensland issue, it is one we would like any federal reform to consider. 

The federal government has also made it clear that a return to local manufacturing is a crucial plank of the economic recovery. The QMCA welcomes this focus and any incentives and investment in this area will undoubtedly see an increase in demand for new and upgraded facilities and supply chains. It was great to see the announcement yesterday that Boeing will be building their Loyal Wingman platform for the ADF here in Queensland. 

Tonight’s budget will be closely observed, and we will make further comments tomorrow publicly on what it means for Queensland and our industry.

Our members.

Acciona Infrastructure Australia
Bielby Holdings
BMD Constructions
Civil Mining and Construction Pty Ltd
Clough
CPB Contractors
Decmil Group Limited
Fulton Hogan
Georgiou Group
Ghella
John Holland
Martinus Rail Pty Ltd
McConnell Dowell
Seymour Whyte Constructions