Infrastructure spending boost for WA

The federal government appears to be hoping Western Australia will ride an infrastructure spending boom back to prosperity.





After being hit by a sharp fall in iron ore prices, the one-time boom state was promised $499 million in the federal budget.

Treasurer Joe Hockey delivered the commonwealth infrastructure funding to compensate for WA's dwindling GST share, but also offered up other opportunities for the west.

He announced a new $5 billion Northern Australia Infrastructure Facility as the first step in the government's plan for the country's north.

"We will partner with the private sector and governments of Western Australia, the Northern Territory and Queensland to provide large concessional loans for the construction of ports, pipelines, electricity and water infrastructure that will open our northern frontier for business," Mr Hockey told parliament on Tuesday.

Meanwhile, the $1 billion Gateway WA project is expected to be completed in mid-2016 with $140 million provided in the 2015/16 budget.

More than $100 million is also being directed to the NorthLink WA project and $88 million will go towards the Perth Freight Link.

The Great Northern Highway ($77.1 million) and the North West Coastal Highway ($51.3 million) will also benefit from federal infrastructure spending.

While WA Premier Colin Barnett might still be holding out hope the other states and territories can be talked into backing a 50 cents in the dollar GST distribution "floor", at least his own budget due soon should benefit from the federal budget outcomes.


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Source: AAP


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