Nsw Budget: Tough Times Means Tougher Decisions Will Be Needed

NSW Budget: Tough Times Means Tougher Decisions Will Be Needed

The NSW Budget confirms the impact of the global financial crisis, but the lack of progress on new State-building infrastructure projects shows that tough reforms will be required to get NSW back on track, says Infrastructure Partnerships Australia the nation's peak infrastructure body.

"This Budget is welcome because it sustains a significant infrastructure investment in the face of collapsing receipts and revenues," said IPA Executive Director, Brendan Lyon.

"Investments in the duplication and upgrade of the Pacific and Hume highways are
obviously important to improve safety and efficiency of freight and passengers on inter state road networks.

"The funding made available for the Metro project is also important, because it signals to the infrastructure sector that the project is moving from Budget papers to tender documents.

"But the lack of progress on critical new projects highlights the need for New South Wales to undertake important, difficult and critical reform or risk being left behind by other States.

"NSW needs transformational projects like new motorways, public transport options and freight networks.

"It is clear that unless we change the business of government, these kinds of projects risk remaining aspirational lines on maps.

"NSW will spend $18 billion on infrastructure in the next year, yet too little of this money will be invested in next generation projects to ease congestion and enhance productivity.

"Instead, large sums will be invested in State-owned assets and services which could be appropriately and competitively delivered by the private sector.

"Even with the current, modest infrastructure programme, net state debt will reach 12 per cent by 2013, leaving little room for major new programmes.

"These decisions are not easy. New South Wales has recently been through divisive debates about electricity market reform and the move to contract the management of prisons.

"But clear minded reform would allow New South Wales to deliver badly needed
infrastructure, while also delivering better, more efficient services.

"The Budget's delivery on commitments like the CBD Metro, the commencement of works on the South West rail link and other committed projects across social and economic infrastructure are welcome.

"But it is time for New South Wales to take the next step to deliver the economic and social infrastructure needed to future proof the State economy."



Media contact:
Ruci Fixter
0438 380 464


SOURCE: Infrastructure Partnerships Australia