Media
Release
Victorian Government Urged To Borrow For Infrastructure
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Tony
De Domenico
Executive Director UDIA (VIC) |
The
Urban Development of Institute of Australia (Victoria) has called for the Victorian
Government to encourage Victorians to invest in infrastructure through Government
Guaranteed Bonds and also borrow funds to implement major infrastructure projects
to stimulate employment and the economy.
The
peak property body rejected the idea being put forward to add tolls to existing
roads which had already been paid for by the community, saying tolls could be
part of the package to fund new infrastructure.
Tony De Domenico,
Executive Director of the UDIA (VIC) said, "The fear of the Government borrowing
funds and incurring reasonable debt needs to put in perspective and can be done
without threatening Victoria's triple AAA rating."
"It is entirely
responsible for the Victorian Government to consider incurring some debt to get
some major well chosen and costed infrastructure projects underway as soon as
possible."
Mr De Domenico said
that the time is right for Government to be borrowing with interest rates at historic
lows, and the opportunity to lock in favourable arrangements to fund urgently
needed infrastructure projects to unlock the gridlock of Melbourne's road network,
improve public transport and other infrastructure facilities.
"We believe,
after a number of financial collapses where many investors have lost considerable
funds, the introduction of Government backed Infrastructure Bonds
would provide a safe area for investment, especially for superannuation funds."
"It is important
that the catch up on infrastructure building in Victoria is accelerated to cope
with the growing population and act as a catalyst to increase employment and demand
for services and Victorian manufacturing."
In a ten point
plan to the Victorian Government last year the UDIA called for the investigation
of ways to fund shovel-ready infrastructure, such as state-backed infrastructure
bonds, tax increment financing and public-private-partnerships.
The ten point
plan also included:
* The establishment
of a properly funded Development Facilitation Unit for major developments and
establish a "front door" for the development industry within Department
Planning and Community Development.
* Commit to infrastructure
projects close to high population growth areas to promote confidence and employment.
* Ensure the Victorian
budget funds a programme of infrastructure works that meets demographic projections.
Media
Enquires:
Ron Smith, Corporate Media Communications,
UDIA (VIC) - Mobile: 0417 329 201
