AusRAIL, Market Sectors

Pressure mounting for infrastructure spending

<p>Both state governments and big business have backed calls for a national infrastructure forum to be organised as part of the Council of Australian Governments (COAG), the <em>Australian</em> reported today (Tuesday, March 29). </p> <p>The Queensland and Victorian governments have supported a suggestion by the Business Council of Australia that a coordinating committee be set up on infrastructure, including the prime minister and premiers and chief ministers. </p> <p>However, Federal Government sources are reported to believe that more pressure should be put on state governments at the forthcoming COAG meeting in May, because they have primary responsibility for ports and roads, as well as power and some rail track.</p> <p>This could include pressure to commit GST payments to infrastructure projects.</p> <p>However, the Federal Government was reported by the newspaper as reluctant to see tax amounts allocated to specific projects, while federal Labor said the use of GST money was an attempt to shift the blame on infrastructure issues. </p> <br />