Page 1325 - Week 04 - Thursday, 8 May 2014
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Infrastructure investment can also play a key role in promoting macroeconomic stability. While the ACT is unable to control expenditure decisions by the commonwealth government, we are able to ensure that the ACT maintains a strong level of investment in infrastructure. This investment will help to support the ACT economy as well as deliver long-term benefits to the community.
Infrastructure projects are delivered by the construction sector, which currently employs over six per cent of the ACT workforce. But this does not tell the full story. Growth in the construction sector also drives employment in a range of related professions, such as architecture, engineering, law and finance. Analysis undertaken by the Economic Development Directorate shows that construction is the second-largest industry in the ACT, behind the public service, producing approximately 10 per cent of real output in the ACT in 2012-13. This means that the construction industry generated a substantial share of the territory’s gross state product.
Clearly, infrastructure investment and construction sector activity have a strong potential to provide the ACT with a source of economic stability over the coming years. Stability is important to allow businesses to have confidence and to be able to make long-term business decisions. The ACT government understands how important it is to provide businesses with stability.
In March 2014 the ACT government announced a package of initiatives designed to provide confidence and economic stimulus for the ACT building and construction industry. This industry has played a key role in ACT economic growth over the last 10 years. The elements of the package include bringing forward civil works at the Moncrieff suburb in Gungahlin, changes to the lease variation charge which will include remissions for developers, simplifying and reducing extension of time charges for developers, and project facilitation legislation that will provide identified priority projects with the certainty to proceed.
These measures will help to maintain confidence and job creation in the ACT. In particular, the development of Moncrieff will involve the construction of roads, water, sewerage and public spaces such as parks and playgrounds. This work will generate significant direct economic activity across the ACT. Additionally, this development will lay the foundation for future investment in new commercial centres, schools, health facilities and all the facilities that accompany the development of a new suburb.
The importance of infrastructure investment has been emphasised in the Council of Australian Governments. At the council meeting earlier this month, the Chief Minister signed a national partnership agreement on asset recycling. This agreement will involve the commonwealth providing financial incentives for the states and territories to sell assets and reinvest the proceeds in productive infrastructure. State and territory governments will negotiate a package of asset sales and infrastructure investment with the commonwealth. The government will be considering potential options for participating in this initiative over the coming months.
The ACT government has a strong understanding of the contribution that investment in infrastructure makes to the community and has delivered an impressive pipeline of
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