Industry News, News

Federal Budget paves the way for construction industry

 

The Australian Government’s Federal Budget for 2021-22 has been warmly welcomed by the quarrying industry, as the country’s 10-year infrastructure pipeline received a $15.2 billion boost.

While the budget placed plenty of focus on industries hit hardest by the COVID-19 pandemic, such as essential services and health care, the $15.2 billion has been set aside over 10 years to fund road, rail and community infrastructure commitments.

This came as part of the government’s record $110 billion 10-year infrastructure pipeline, and should help to create around 30,000 jobs, directly and indirectly.

Managing director of the Project Management Institute for Asia Pacific Ben Breen said while the infrastructure investment is positive, the rollout timeline will be even more important.

“It’s critical that the Commonwealth works with the states to ensure these projects get rolled out and completed in time and within budget. When projects run over budget or exceed their timeline it erodes public trust in the state and federal governments,” Breen said.

The $15 billion will be put towards major projects such as the North South corridor in South Australia, the Great Western Highway and Newcastle Airport in New South Wales, the new Melbourne Intermodal Terminal in Victoria, and the Bruce Highway in Queensland.

Chief executive officer of Cement Concrete & Aggregates Australia (CCAA) Ken Slattery said the major investment should have been an obvious decision.

“The formula is clear, strong investment in housing and infrastructure improves the economy and creates more jobs,” Slattery said.

The CCAA reported that the aggregates industry contributes more than $15 billion annually to the national economy, so the reinvestment was well deserved by the 110,000-strong employees who serve it.

“The extraordinary expenditure directed towards advancing economic recovery from the pandemic continues to be welcome, with every dollar of stimulus provided across the building and construction sector delivering multiplied value in retaining and creating jobs and keeping businesses alive, to strengthen and underpin Australia’s economic recovery,” Slattery said.

The national JobTrainer fund, announced last year, has also been expanded as part of the 2021-22 budget.

The Federal Government will be doubling its $500 million contribution from last year to contribute a total $1 billion to the training of job seekers and young people.

The state governments will once again be matching the federal contribution, meaning $2 billion has been provided to around 450,000 new training and upskill placements.

Infrastructure project investments – State by State, Territory by Territory

New South Wales

  • Great Western Highway upgrade, constructing east and west sections from Katoomba to Lithgow – $2 billion
  • Princes Highway Corridor, Jervis Bay – $500 million
  • Local road and community infrastructure projects – $287.5 million
  • Road safety projects – $270 million
  • M12 Motorway – $229.4 million
  • M5 Motorway upgrade (Moorebank Avenue and Hume Highway intersection) – $87.5 million
  • Manns Road intersection upgrades, Narara with Narara Creek Road and Stockyard Place – $52.8 million

Victoria

  • Melbourne Intermodal Terminal – $2 billion
  • Local road and community infrastructure projects – $203.5 million
  • Pakenham Roads upgrade – $380 million
  • Monash Roads upgrade – $250 million
  • Road Safety projects – $170 million
  • Hall Road Upgrade – $56.8 million
  • Princes Highway East, from Rosedale to the NSW border – $51.1 million
  • Western Port Highway upgrade – $30.4 million

Queensland

  • Bruce Highway – $400 million additional funding
  • Upgrades to the Inland Rail freight route from Mungindi to Charters Towers – $400 million
  • Road safety projects – $261 million
  • Cairns Western Arterial Road duplication – $240 million
  • Local road and community infrastructure projects – $203.4 million
  • Line capacity improvement on the Gold Coast Rail Line (from Kuraby to Beenleigh) – $178.1 million
  • Gold Coast Light Rail – Stage 3 – $126.6 million
  • Mooloolah River interchange upgrade – $160 million

Western Australia

  • Metronet Hamilton Street/Wharf Street works – $237.5 million
  • Great Eastern Highway upgrades – $200 million
  • WA agricultural supply chain improvements – $160 million
  • Local road and community infrastructure projects – $146.1 million
  • Road safety projects – $142 million
  • Reid Highway (Altone Road and Daviot Road/Drumpellier Drive works) – $112.5 million
  • Perth Airport Precinct (northern access) – $85 million
  • Metronet Byford extension – $110 million
  • Toodyay Road upgrade (from Dryandra to Toodyay) – from $64 million
  • Duplication of the Mandurah Estuary Bridge – $55 million

South Australia

  • North-South Corridor from Darlington to the Anzac Highway – $2.6 billion
    Truro Bypass – $161.6 million
  • Augusta Highway duplication – $148 million
  • Local road and community infrastructure projects – $89.9 million
  • Road safety projects – $84 million
  • Strzelecki Track update – $64 million
  • Gawler Rail Line electrification – $60 million
  • Stage 2 of the Heysen Tunnel refit and upgrade – $48 million
  • Kangaroo Island road safety and bushfire resilience package – $32 million

Tasmania

  • Midland Highway upgrades – $113.4 million
  • Tasmanian roads package (including Bass Highway safety and freight efficiency) – $80 million
  • Algona Road separated interchange and duplication of the Kingston Bypass – $48 million
  • Rokeby Road to South Arm Road upgrades – $44 million
  • Local road and community infrastructure projects – $32.6 million
  • Tasmanian freight rail revitalisation – Tranche 3, the Port of Burnie shiploader upgrade – $24 million
  • Road safety projects – $22 million

Northern Territory

  • Gas industry roads upgrades – $173.6 million
  • National highway upgrades – $150 million
  • Local road and community infrastructure projects – $29.1 million
  • Road safety projects – $48 million

Australian Capital Territory

  • Canberra Light Rail stage 2A – $132.5 million
  • William Hovell Drive duplication – $26.5 million
  • Local road and community infrastructure projects – $15.9 million
  • Road safety projects – $3 million

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