Cement Concrete & Aggregates Australia has praised the Victorian Government’s 2020-21 Budget that promises billions of dollars in infrastructure investment.
The state government has pledged to continue its Big Build program which extends its annual spend to $19.6 billion annually.
A number of projects were pledged by the Victorian Government ahead of the budget, including $5 billion for Victoria’s Airport Rail Link and $2.2 billion for the Suburban Rail Loop. This adds to Victoria’s infrastructure pipeline which sits at $78.4 billion.
More than $10 billion in total will be spent on roads works and public transport, with the Suburban Rail Loop alone set to create 800 jobs.
A total of $5.3 billion was also announced for social housing as part of the Big Housing Build, which is valued at $6 billion.
According to Cement Concrete & Aggregates Australia (CCAA), this will grow demand for the cement, concrete and aggregates industry.
“This will create significant new pull-through demand for the cement, concrete, and aggregates industry at a time when the population growth driver for the housing sector would otherwise have been adversely impacted,” the industry peak body said in a statement.
CCAA chief executive officer Ken Slattery said the Victorian Government must also cut red tape to speed up approvals processes.
“The extraordinary expenditure directed towards a recovery from the pandemic is welcome and timely but must be matched by red tape reduction and streamlining of government systems,” Slattery said.
The Budget, which is designed to lead Victoria into an economic recovery, is primarily based on construction.
“Delivery of this very ambitious, construction-led recovery will continue to rely on the efficient supply of cement, concrete, stone and sand from across our construction materials supply chain, and further support the broader Victorian construction industry that employs some 340,000 workers and contributes 45 per cent of Victoria’s taxation revenue base,” the CCAA said in its statement.
Victorian policy priorities
CCAA state director for Victoria and Tasmania Brian Hauser said shovel-ready projects that will be initiated across the state will assist with local employment.
“The smaller projects are the ones most likely to be built in the short-term, giving a more immediate stimulus to the Victorian economy and creating jobs,” he said.
“The record investment in construction will enable this sector to be the engine room for the state’s post COVID economic recovery, rebuilding Victoria and creating jobs, as CCAA has strongly advocated for and outlined earlier this year in the Victorian Policy Priorities document.”
The CCAA’s Victorian Policy Priorities document encouraged the fast tracking of approvals, the implementation of strategic extractive resource areas in LGAs and 24-hour product loading and sales.
Australian Industry Group (Ai Group) has also credited the Victorian Government for its spending in the 2020-21 Budget.
“The Victorian Government’s investments in housing and infrastructure and its support for job creation and skills development are positive and important measures that will support the recovery in the State’s economy into next year and beyond,” the head of the Victorian division of the Australian Industry Group’s Victorian Head Tim Piper said.
“The investments in health, housing, education and transport infrastructure are the cornerstone of the Government’s plan for the recovery of business and jobs in the state.
“The Government’s commitment to supporting the attraction of new business to Victoria as well as encouraging export opportunities also serve as important elements in the growth strategy.”
