Infrastructure industry responds to Federal Budget announcement

Several big hitters in the infrastructure industry have responded to the announcement of the 2023-24 Federal Budget.

The budget outlines nation-wide building through a review of Australia’s infrastructure investment pipeline, and new measures for Australia’s cities and suburbs.

With the number of infrastructure projects in the pipeline increasing from 150 to around 800, a focus was placed on working through the backlog of incomplete works and targeting the movement of freight, safety of road users and the strengthening of connections between cities and region.

The Federal Government shows it is holding strong with its $120 billion commitment over a 10-year period to the infrastructure sector. One of Australia’s national bodies for the civil construction sector, Civil Contractors Federation National (CCF) has welcomed the Government’s retention of its commitment.

CCF National Chief Executive Officer, Chris Melham, said the CCF looks forward to participating in the independent review of the $120 billion infrastructure program.

“We will advocate for sustained growth of federal infrastructure investment to build Australia’s economic and social wellbeing,” Melham said.

“With the Federal Government forecasting difficult economic conditions over the coming years, it is timely to ensure the maximum return for every taxpayer dollar invested in civil infrastructure which has an economic multiplier of 3:1 and employs seven Australians for every $1 million spent.”

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Infrastructure Partnerships Australia Chief Executive, Adrian Dwyer, has also welcomed the announcement but said he is awaiting news from the independent review into the National Infrastructure Investment Program.

“It’s pleasing that the budget contained no cuts to transport infrastructure spending, however the sector will be more focused on the release of the independent review in a few months’ time,” Dwyer said.

“In the context of supply chain issues, labour demand pressures and rising costs, it’s imperative the Federal Government continues to work with industry to provide certainty and clarity.”

While the independent review is at the front of mind for many organisations within the sector, The Australasian Railway Association (ARA) has embraced the investment of $7.8 million to support the decarbonisation of the transport and infrastructure sectors.

ARA Chief Executive Officer, Caroline Wilkie, said continued investment in sustainable transport systems is critical to achieving net zero targets and will drive the economy and benefit the wider community.

“Rail will be at the heart of emissions reduction strategies for the transport sector and the ARA looks forward to working with the newly formed Net Zero Authority to support the advancement of Australia’s decarbonisation efforts,” Wilkie said.

“We are also pleased to see a focus on developing crucial sustainability skills for the future, as well as helping businesses to engage with net zero transformation opportunities.”

The recognition of infrastructure as an enabler of social, economic and environmental benefits has continued to be praised by Infrastructure Sustainability Council Chief Executive Officer Ainsley Simpson. But she says this budget outline is only the first steps to reach net zero.

“It was pleasing to see key election commitments honoured, in particular over $8 billion in investments in infrastructure, the first $7 billion in commitments made through the Rewiring the Nation Fund, $42.6 million for the Climate Change Authority, $500 million to reduce transport emissions, and a total of $1.2 billion to 2030 to protect and manage and restore the Great Barrier Reef,” Simpson said.

“But while this budget represents a sensible first step in addressing climate change, we must remember, with only seven years to 2030 and the need to reduce our emissions by at least 43 per cent, it’s time to make every dollar count.

“We don’t have any more time to lose.”

For more information on the 2023-24 Federal Budget, click here.