The Business Council of Australia (BCA) has urged the government to spend more on infrastructure.
BCA sustainable task force chairman, Rod Pearse says a new wave of infrastructure is needed in order to sustain growth.
“We have simply outgrown our infrastructure and we need to actually embrace a new wave of infrastructure reform and contemplate what will be substantially increased growth levels for the future,” he said.
Pearse added that Dr Ken Henry’s estimations of a 35-million-person population in Australia in 2050 could pose genuine problems for the economy in the future.
“We see congestion costs doubling by 2020. A 50 per cent increase in energy demand,” he said. “They (the government) need to show national leadership around putting in place the infrastructure programs, so growth doesn’t result in bottlenecks.”
Population growth biggest challenge for economy