The Rudd Government is planning to dip into Australia’s superannuation savings to invest in infrastructure projects.
The Government outlined $22 billion to transport and broadband infrastructure in last week’s Budget, with a focus on roads, rail and ports. However it has been revealed that they are short on funding, and must source funds from other projects.
According to reports in The Weekend Australian, the Government’s advisory group, Infrastructure Australia plans to develop new investment pathways to transfer super funds into infrastructure. It is understood Infrastructure Australia will submit a set of recommendations to the Government, including various models that offer investment incentives to super funds.
It has been reported that only $1.7 billion of new infrastructure money will be spent in 2009-10, with only six projects to start next year, a far cry from the $22 billion outlined.
Infrastructure Australia chairman Rod Eddington has said that the infrastructure funding is an important “first step” but given the “size of the big infrastructure spend that it required, it will require much more.”
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