Social infrastructure key for maintaining growth

Ask Western Australia’s two major business groups about their infrastructure priorities and the response is unexpected.

While acknowledging the importance of traditional economic infrastructure such as roads, railways and ports, they emphasise the crucial role played by social infrastructure.

This ranges from schools and hospitals to cultural and sporting facilities that help to build communities.

“Our industry is very keen to see social infrastructure elevated in the debate, given its importance, particularly in regional communities,” Chamber of Minerals and Energy director David Parker said.

The Chamber of Commerce and Industry WA is also keen to ensure the state government, which is currently developing a 20-year infrastructure strategy, pays due regard to social infrastructure.

The CCI spelt out its priorities in a pre-budget submission, which listed 10 key infrastructure priorities for consideration in this year’s budget.

Surprisingly, the state government has already moved on most of the CCI’s social infrastructure priorities.

It has committed to building a new multi-purpose outdoor stadium and major museum, and to proceeding with the foreshore development, and has agreed to make an initial investment in the Northbridge Link project.

The CCI believes these projects are long overdue and will add to the vibrancy of Perth as a place to live and work.

They will also make Perth more attractive as a tourism destination and provide business and investment opportunities for the private sector.

CCI industry policy director Trevor Lovelle said that, while people may differ over the detail of these projects, it was pleasing to see the momentum for change, particularly on the foreshore.

“The point is that something is happening and we have state and local governments finally talking,” Mr Lovelle said.

“At the moment they seem to be on the same page.” The two business lobby groups believe the state infrastructure strategy, which is due to be released around the time of the next state budget in May, provides the most appropriate means for setting priorities.

They are also keen to see the federal government provide more financial support for infrastructure development in WA, given this state’s role in boosting national economic growth.

In terms of economic infrastructure, the CCI’s number one priority is the provision of broadband throughout metropolitan and regional areas.

It is concerned that a large number of businesses in regional areas can not afford to pay the cost of establishing an appropriate broadband connection.

Mr Lovelle acknowledged this was a complex issue, involving state and federal governments and potentially a number of telecommunications service providers.

He is keen for the state government to progress its state broadband network, particularly in areas north of Perth.

A second priority is completion of the high wide load corridor linking the Kewdale industrial area with Kwinana and the Australian Marine Complex at Henderson.

“Our strong support for such a (corridor) reflects the growing trend in the heavy fabrication industry to reduce the level of on-site fabrication by building larger modules in workshops and transporting these prefabricated modules to the project site for assembly,” CCI said in its prebudget submission.

The CCI’s third priority is the upgrade of Perth airport, which has experienced rapid growth in passenger and flight numbers, resulting in chronic congestion.

The airport’s private owner, Westralia Airports Corporation, is evaluating expansion options, including development of a single terminal on the site of the current international terminal.

CCI is keen for the government to upgrade the roads surrounding the airport, including Great Eastern Highway and Tonkin Highway.

Mr Lovelle said construction of a light rail service to the airport was unlikely to be an effective option.

Like Perth airport, WA’s major shipping ports are battling to keep up with growing demand.

One of the underlying problems is that ports such as Fremantle, Geraldton and Port Hedland are located next to residential and commercial areas, which makes it difficult to expand both the port facilities and the surrounding transport infrastructure.

In the short term, the respective port authorities are expanding the capacity of their current facilities, with mixed success.

Geraldton, in particular, has struggled to keep up with rapid growth in iron ore exports.

The long-term solution at all three locations is to build a new port (see page 25).