Executive Director
of the Urban Development Institute of Australia (Victoria) Tony De Domenico today
supported the call by leading Australian Economist Hans Kunnen, Chief Economist,
St. George Banking Group and Bank of Melbourne, for Governments to fund urgently
needed infrastructure.
Mr De Domenico said, "In
the coming twelve months we are looking for policy and actions that will return
the construction industry to levels that will enable us to cope with increased
population demands and infrastructure needs".
"In simple
terms a combination of prudent borrowing combined with the choice of infrastructure
projects to create productivity and attract private investment at a time when
low interest rates can be locked in for ten years, is a major opportunity for
positive political action".
"By moving now Governments could
cut hundreds of millions of dollars off the cost of major infrastructure projects,
such as a second crossing to the west of Melbourne or the creation of job employment
centres closer to building in the outer suburbs."
Mr De Domenico said, "The fastest
growing residential areas of Melbourne and regional Victoria need investment in
infrastructure now to boost employment and also provide strong economic communities
to cope with the State's increasing population".
"Recognising the Victorian cut back
in GST revenue reducing the ability to fund infrastructure, the UDIA (VIC) has
put forward a ten point plan to the Victorian Government to stimulate the Victorian
property sector".
"This included the introduction of
ten year Government Guaranteed infrastructure bonds to provide a safe and productive
investment choice for investors with a positive outcome for the community."
Mr De Domenico said it is not only the
Governments' job to stimulate the economy by funding, creating a more productive
system to bring land to market and help make housing affordable, but it also required
the private sector to develop new innovative and affordable housing choices.
"The bottom line is that the property
sector provides major tax returns to government and importantly has a major flow
on impact on the provision of jobs, materials and services which flow into
local economies," Mr De Domenico said.
Ron Smith, Corporate
Media Communications, UDIA (VIC) - Mobile: 0417 329 201
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