State fails to deliver on spend promises

THE Queensland Government has consistently underspent its infrastructure budget by nearly $ 2 billion per annum for years.

As Treasurer Curtis Pitt prepares to present this year’s State Budget tomorrow, industry groups are demanding the Government actually delivers on its promises and builds what it says it will.

“They underspend every year,’’ Master Builders Queensland Deputy CEO Paul Bidwell said.

“That’s money that needs to be invested in projects to create jobs. There is very little private sector investment in infrastructure currently so it’s more important than ever that the Government spends what it says.’’

Last year’s Budget papers state that the actual spend on the Government’s capital program in 2015- 16 was $ 8.13 billion – nearly 20 per cent below the budgeted $ 10.1 billion.

Property Council Queensland executive director Chris Mountford said the Government’s promises to invest $ 40 billion on infrastructure over the next four years were meaningless if the money was not actually spent.

The Property Council has called for a new $ 200 million Regional Project Fund to be set up to help pay for infrastructure to speed up the development of masterplanned communities.

Research by urban planning consultants Urbis for the Property Council says that councils can take up to eight years to approve major residential developments, with State Government approvals taking nearly four years. The holdups increased development costs and these were passed on to eventual purchasers.