City will get benefits

TOWNSVILLE is well placed to capitalise on big growth opportunities in tourism, education and food emerging from a burgeoning middle class in Asia even if there is little specific federal infrastructure funding allocated in the latest Budget, an economist says.

But Stephen Walters, the chief economist for the Australian Institute of Company Directors, said the city’s defence industry was set to benefit from increased Federal Government spending and expanded military training ties with Singapore.

Mr Walters was commenting after speaking at the institute’s Townsville Economic Update event in the city yesterday.

Mr Walters conceded that, apart from spending on the Bruce Highway, there was little infrastructure specifically allocated for Townsville as part of the Government’s muchvaunted $ 75 billion infrastructure program.

He said measures to cut corporate taxes would help businesses here and that the “good news” was that the Govern- ment was at least focused on northern Australia with development of an infrastructure fund dedicated to the North.

Mr Walters said servicing the growing middle classes in Asia, particularly in China and India, presented huge opportunities for Australia and that Townsville was particularly well placed.

“The big opportunities are going to be in tourism,” Mr Walters said.

“There’s going to be many more people in the middle classes in Asia looking to travel. When they come here they are going to want to have their children study here.

“That opens opportunities in education.

“They are also going to want to eat better quality food which we can provide.”

The Coalition has committed to lift defence spending to 2 per cent of GDP and while the 2018- 19 spending was only lifted marginally, there is an expectation of big increases in following years to meet that target.

“There is good spending increases in defence occurring. That’s good for Townsville,” Mr Walters said.