State Premiers’ enthusiasm for big road and rail projects is fanning inflation, so they need to slow down.
This week, economists at the ANZ bank - examining the nation’s huge pipeline of infrastructure spending underway or already promised - redefined what they considered to be a “major project”.
It’s that sort of surge in prices, on top of the sheer quantum of projects underway, that has the International Monetary Fund urging governments - primarily the states - to consider delaying or dumping some of their plans. Infrastructure Minister Catherine King has been looking at the federal government’s 10-year, $120 billion pipeline of projects since May because she and others were worried about the cost blowouts and inflation pressures across the construction sector in general.A decision on the future of some of those may be known as soon as the mid-year budget update Treasurer Jim Chalmers will hand down in the first half of December.It wasn’t meant to be this way.
On Wednesday, the interest rate on federal government 10-year debt reached 5 per cent. Two years ago, they were just 1 per cent. Economically, the IMF is talking absolute sense. Projects that may not be needed now, or cannot be built for a reasonable cost, should be put on the backburner. Those that deliver real economic benefits should proceed.Politically, however, the idea of governments putting a red line through a promised project is something else.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
State against state: Data reveals Qld kids more active, adults less soThe latest sport and physical activity data reveals a setback for women and the rapid rise of computer-enabled fitness in Australia.
Read more »
Luminis recruits from Greenhill to puts boots on ground in MelbourneSimon McConnell has been seen on a range of local deals including Cleanaway’s $500 million acquisition of Suez Australia assets.
Read more »
Big star spotted working in retailGen Z social media sensation Charli D’Amelio is being slammed for posing as a check-out chick at Walmart to promote her new product.
Read more »
‘Premier batter’: Obvious Warner replacement emerges to answer Aussies’ big Test questionCricket: Joel Paris has taken six wickets to leave WA's Sheffield Shield clash with South Australia hanging in the balance after the second day.
Read more »
Dunn’s Big Dance lead-in to include two runners at feature Grafton meetingWritten Fame and Bertinelli will be part of the eight-race card.
Read more »
Dunn’s Big Dance lead-in to include two runners at feature Grafton meetingWritten Fame and Bertinelli will be part of the eight-race card.
Read more »