The release of the QMCA Major Projects 2016 report has shown mining capital investment at historic lows and large scale coal seam gas projects shifting out of the building stage.
The Infrastructure Association of Queensland acknowledges QMCA's Major Projects Report and the contribution of QMCA's report partners Construction Skills Queensland and BIS Shrapnel.
According to IAQ CEO Steve Abson, government co-operation is essential if the Queensland industry wishes to maintain jobs, skills and investment in critical infrastructure.
"Only 55 per cent of major projects listed in the report in the next 4 years is currently funded, which can erode business confidence in the Pipeline. The upcoming release of the State Infrastructure Plan and the Federal Budget in May are terrific opportunities for government to confirm priorities, agree funding ratios and get some 'game changing' major projects like Cross River Rail from planning into construction," Abson said.
The IAQ analysis of the Draft State Infrastructure Plan Pipeline released in October 2015 (refer our graphic), shows government pursuing fiscal sustainability, sizing its capital works program accordingly.
The state has the ability to give effect to a substantial reduction in debt should the circumstances require it and fund more infrastructure.
In the short term, infrastructure is at risk of being a casualty of the pressure to re-balance the Queensland economy post resources boom.
With continued population growth there is a vital requirement for delivery of new infrastructure to avoid a major backlog and underpin economic growth.
The draft State Infrastructure Plan released in October 2015, provides a strong indication of the approach the Queensland Government is taking to address these issues (note Infographic below) and requires Commonwealth funding support.
“The State Infrastructure Plan will be discussed by the Deputy Premier at an event hosted by the IAQ, Engineers Australia and Consult Australia on Monday 14 March. The significance given to this plan by industry is reflected in the overwhelming response we have received from the infrastructure sector,” Mr Abson says.
“This will be an important statement of the way the Queensland Government plans to move forward with infrastructure funding and delivery.”