The Chamber of Commerce and Industry Queensland has welcomed the QLD Government’s plan for a $45 billion of capital works for the state in the upcoming Budget to be handed down on June 12 2018.
Upgrades to Queensland’s roads, rail, hospitals and schools are expected to create 38,000 jobs through the construction phase through to 2021.
The $45 billion package will span until the 2021-22 financial year, guaranteeing at least a $10 billion spend each year up until that time.
Cross River Rail continues to be the priority for the State Government despite no funding promises from the Federal Government, with more than $700 million expected to be announced for the $5.4 billion project in June 2018’s budget.
A further $900 million has been allocated to the long-awaited M1 upgrade as well as building upgrades to the Ipswich, Caboolture and Logan hospitals.
CCIQ continues to push for more detail in relation to the proposed Sunshine Coast rail duplication plan; a project identified by Infrastructure Australia as a key project for the state.
The increase in infrastructure spending, touted as the largest since the 2011 floods, is welcomed by the small business community but also recognises the need to provide for the State’s population growth which hit five million earlier in May 2018.
Furthermore, it is only expected that funding be put aside for projects that have already been announced. Small businesses are still yet to hear new announcements about any significant projects for their regions.
While a “cash splash” certainly brings about excitement and optimism, funding for capital expenditure on an ongoing basis must be sustainable and not rely solely on increased coal royalties which as we know can fluctuate wildly.
Additionally, reducing recurrent expenditure particularly on the ballooning public service sector is another sustainable way to fund infrastructure into the future.
CCIQ continues to advocate on behalf of small business in the lead up to QLD Treasurer Jackie Trad’s first State Budget on 12 June 2018.
Source: CCIQ
