Slow job growth in Queensland is a result of a lack of spending on infrastructure, according to research obtained by the Property Council.
Last month, Queensland Division President Tim O’Neill sent a letter to Queensland State Treasurer Terry Mackenroth highlighting the distinct link between decreased spending on infrastructure and increasing State unemployment, and urged his department to reconsider budgetary forecasts in this area.
Recent reports made by the State Treasurer indicated that it would be likely that State infrastructure spending would fall, as it would be too “unrealistic” to expect “record” spending to be sustained.
“A thriving economy relies on having the right infrastructure in place to support it,” Mr O’Neill said.
“We are not expecting the Government to contribute a hundred per cent to infrastructure. The Property Council supports the State Government in the development of the Public Private partnerships (PPP) policy as a solution.
“The property industry has a significant investment interest in Queensland, and our policies and lobbying activities are about ensuring that this remains the case.”
Results obtained from research conducted over the past few years maintain that Queensland needed to increase its public infrastructure spending back to 1980s levels if it wanted to return to the level of outperformance it enjoyed 20 years ago.
Research also points out that increased public infrastructure spending of $1.85 billion per annum is needed to return to the average levels of infrastructure spending of the 1980s, or $3.9 billion to return to the peak levels of infrastructure spending of the 1980s.
Research also suggests that if increased public infrastructure spending were to spread throughout the state, it could be directed to improving urban transport infrastructure.
“It is possible that Queensland could return to outperforming Australian jobs growth," Mr O’Neill said.
“It has been noted that although Queensland’s unemployment rate may have improved, it remains the second highest of the states, behind only Tasmania.
“We have a significant invested interest in seeing a prosperous Queensland.”