Congestion-busting funding and City Deal underway in Perth
A City Deal for Perth is a step closer, as the Turnbull and McGowan governments sign a memorandum of understanding and announce a $3.2 billion boost to state infrastructure.
Ahead of next week’s Federal Budget, the Turnbull Government has allocated $3.2 billion to Perth’s public transport program.
METRONET, the plan to connect Perth’s suburbs and reduce congestion, has been allocated $1.05 billion of new funding. A further $0 million has been earmarked for the Ellenbrook rail line and $241 million to extend train line in Perth’s rapidly-expanding south east.
The Prime Minister has called it a “congestion-busting” funding package which is on top of $790 million allocated for METRONET in last year’s budget.
The Turnbull and McGowan governments have also committed to a Perth City Deal within the next 12 months, and negotiations now begin in earnest.
City Deals, which bring together three levels of government, the community and private enterprise to align planning, investment and governance, are now underway in Townsville, Launceston and Western Sydney.
The Property Council has been a loud advocate of City Deals, making the case for City Deals in each capital city in its pre-budget submission. The Property Council argues that Sydney, Melbourne, South East Queensland and Perth should be prioritised, as 75 per cent of population growth over the next two decades will occur in these four areas.
By 20 Perth is forecast to become a city of 3.5 million. This will require the construction of 800,000 new homes, as well as jobs, services and recreation across the city.
The Property Council’s WA executive director, Lino Iacomella, says the infrastructure funding and City Deal will provide communities and businesses with “greater certainty that the local economy will return to strong growth and new jobs will be created”.
“These announcements also vindicate the big increase in business confidence that we have seen in the WA property sector,” Iacomella adds.
The latest ANZ/Property Council Survey, published in April, found confidence in the state’s property and construction industry was at its highest level in five years, and equalled the national score of 143. A score of 100 is considered neutral.
“The extra infrastructure funding and the City Deal announcements will also be important in addressing WA’s biggest challenge – stopping the talent drain,” Iacomella adds.
The state government is proposing to establish Infrastructure WA, an independent body that can provide expert advice to the premier and government on infrastructure needs and priorities in Western Australia.
Iacomella says this body should be established quickly, so the state can “plan for growth”.