With Australia's huge mining investment boom now running out of steam, the construction sector has found solace in the federal government's plan, announced last month, for nearly $24 billion in infrastructure spending over the next six years. But industry executives are concerned about an unforeseen budget deficit and too few incentives for private investment approaches.
The budget is a "long-overdue investment in nation-building infrastructure," says Peter Bailey, CEO of designer Arup Group's Melbourne-based Australasia region. Finance Minister Wayne Swan said the budget includes about $3 billion for Melbourne's new subway, $2.1-billion for road-rail projects in Sydney and $680 million for a Brisbane rail link.