Premiers promise of increased capital works welcomed

23 January 2009

The development industry today welcomed the commitment by NSW Premier Nathan Rees to proceed with major new capital works funding even if it means a larger budget deficit.

(The Premiers commitment was reported in the Sydney Morning Herald)


The Urban Taskforces chief executive, Aaron Gadiel, said that there is nothing wrong with debt if it helps grow the NSW economy.


It doesnt make sense to balance the books if it means underspending on urban infrastructure, Mr Gadiel said.


The Bureau of Transport and Resource Economics has found that the avoidable costs of Sydneys congestion were $3.5 billion in 2005.


The Bureau says that, without new infrastructure, these costs will more than double by 2020 – to $7.8 billion.


These costs are greatest in Sydney – where they are 17 per cent higher than Melbourne, three times higher than Brisbane and four times the costs in Perth.


Underspending on infrastructure will just cause more pain for the states finances down the track.


Good urban infrastructure is a necessary foundation for the construction of new homes, offices, retail precincts and industrial premises.


Every $1 million spent on building new urban development creates 27 jobs.


Mr Gadiel said he looked forward to seeing further detail on the Premiers plans.


The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.



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