PM plan to raid super for projects
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Adele Ferguson | May 16, 2009
THE Rudd Government plans to tap Australia's
$1 trillion pool of
superannuation savings to help plug a $58 billion hole in its
nation-building program.
The funding shortfall for approved infrastructure projects has
raised concerns that unless a greater portion of national savings
can be accessed, some of the 15 rail, road and ports projects
announced by Wayne Swan as Tuesday night's budget centrepiece may
never be built.
The Weekend Australian has learned the Government's advisory
group, Infrastructure Australia, has turned its post-budget focus
to developing new investment pathways to funnel super funds into
infrastructure. It is understood Infrastructure Australia will
submit a set of recommendations to the Government, including
various models that offer investment incentives to super funds.
Figures compiled by KPMG reveal the total cost of the
Treasurer's nation-building program, to which the Government has
allocated $22 billion over the next four years, is $80billion.
The Government has emptied its Building Australia Fund and
imposed on itself tight restrictions on future spending. At the
same time, the global credit crunch has crippled the ability of the
private sector to co-invest in government projects.
