States cautious as Frydenberg embraces immigration

Josh Frydenberg has argued for the need to maintain a strong immigration intake to safeguard the nation’s economy.

Treasurer Josh Frydenberg. Picture: Kym Smith.

Josh Frydenberg has argued forcefully for the need to maintain a strong immigration intake to safeguard the nation’s economy amid growing global headwinds, as the nation’s biggest states ratchet up demands for more infrastructure spending to cope with congestion problems.

In an apparent softening of the government’s position last year, when Scott Morrison declared Australia’s major cities were “full” and committed to lowering the permanent migration cap, the Treasurer yesterday talked up immigration as vital for the nation’s economic success.

“Our plan is to continue to grow the economy and to continue to have a very strong and robust and welcoming immigration system,” the Treasurer said, after agreeing on measures with the states to plan for population growth. He said immigration was also critical in mitigating the challenges of an ageing population and “it will continue to be strong here in Australia”.

At its first meeting today, the Treasurers’ Forum on Population agreed to undertake regional analysis of the nation’s skills and infrastructure needs, and improve forecasting of population growth to ensure better planning of the nation’s cities.

State treasurers backed the initiatives, aimed at channelling population growth towards the smaller states and regional areas, but warned improvements in planning must be backed by greater infrastructure spending.

“We continue to not get our fair share of infrastructure investment,” NSW Treasurer Dominic Perrottet said.

“Victoria and NSW have the lowest rate of commonwealth infrastructure investment on a per capita basis. The federal government get all the benefits of immigration but we get all the costs.”

Victorian Treasurer Tim Pallas said the federal government must commit to properly funding the state’s infrastructure needs.

“We account for a third of the nation’s population growth and our economy generates more jobs than anywhere else,” he said.

“If the commonwealth cares about Victoria’s population, they’ll unlock the $3 billion they are playing politics with so we can deliver projects Victorians need.”

South Australian Treasurer Rob Lucas said his state was “unashamedly open to population growth”.

The Prime Minister last year indicated the permanent immigration cap of 190,000 would be lowered. “The roads are clogged, the buses and trains are full,” he said in November.

Additional reporting: Rachel Baxendale, Luke Griffiths