State Government asked to expedite its infrastructure program, as Federal announcement expected soon
The State Government has been urged – by both local industry and the deputy PM – to bring forward more projects to deal with multiple crises, and there’s $100 billion on offer.
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Level crossings in Adelaide and a fix to a regional road labelled a “shameful corridor of death” should be fast-tracked to stimulate jobs and combat the twin crisis of bushfires and coronavirus, industry says.
The Federal Government will dip into its $100 billion infrastructure budget early for shovel-ready projects.
It comes as Premier Steven Marshall flagged similar stimulus measures were coming in June’s State Budget to combat the new “headwinds”, after a year of soft employment growth. And Prime Minister Scott Morrison has signalled he is working on a broader economic stimulus package for industries directly hit by the twin crises. An announcement is expected soon.
In the meantime, Federal Infrastructure Minister Michael McCormack has written to states, including SA, urging them to “bring forward more projects” to “make sure that the economy stays on track”.
“(We’re) making sure that state infrastructure ministers know full well that if there’s an infrastructure project, if there’s a program that we can roll out in the next three to six months to get people on the ground, to get excavators and shovels in the ground, then we will do so,” Mr McCormack said.
In November, a similar offer was placed on the table and SA secured more than $328 million in federal funding for various road projects.
But SA Infrastructure Minister Stephan Knoll was largely tight-lipped about any specific projects that could be put on the table this time around.
He said the final 10.5km stretch of the North-South Corridor and projects to help with the bushfire recovery process were high priorities.
Civil Construction Federation SA chief executive Phil Sutherland said there was a raft of projects – including level crossings at Hove and Ovingham, improvements on the Sturt and Eyre highways and duplication between Seaford and Aldinga – that should be put forward by the State Government.
He said the Augusta Highway should also be duplicated between Port Wakefield and Port Augusta. The duplication of “this shameful corridor of death” would cost about $1.2 billion, he said.
RAA spokesman Charles Mountain agreed with Mr Knoll that the remaining sections of the North-South Corridor should be a key priority.
Business SA has urged the State Government to expedite its infrastructure program in its Budget submission to Treasurer Rob Lucas.
Mr Knoll said the Government’s priorities would be unveiled when Infrastructure SA handed over its 20-year strategy, which was expected soon.
The State Government has come under fire after it was revealed last week no new major road or rail projects in South Australia had been listed on the multibillion-dollar spending priorities for the nation.
Mr Morrison has refused to speculate on whether Australia is facing a recession, but has said the evolving health challenge would have a “very significant” economic impact.
ABS figures yesterday showed the national economy grew by a modest 0.5 per cent in the three months ending in December.
State final demand in SA – the total value of goods and services sold in our borders – went backwards by 0.2 per cent in that same time.
Labor yesterday used Question Time to demand Mr Marshall concede SA was in a recession.
It is the second quarter in a row that SA’s state final demand has declined. But that measure does not include the value of export industries.
Mr Marshall told Parliament: “I do not accept for one second that SA has gone backwards. SA is facing some significant headwinds, is moving forward,” he said.
“This next Budget is going to be very important for our state.”