2009 Budget delivers record $62.9 billion building program

15 June 2009

NSW Premier Nathan Rees announced today that NSW Budget will support up to 160,000 jobs a year through a record $62.9 billion building program over the next four years – the largest infrastructure investment in NSW history.

The Premier made the announcement during a tour of the $1 billion dollar expansion of Port Botany that includes five new shipping berths, a new container terminal and 540 construction jobs.

“These are tough times and our $62.9 billion works program is focused on families by investing in jobs and delivering better services,” said Mr Rees.

“We will be spending more than ever before on infrastructure in education, health and transport to build a better future for NSW.

“These projects are employing builders, carpenters, electricians, plumbers and painters while supporting associated industries including transport and handling.

“Our commitments will see benefits delivered during the first year alone and continue to support jobs during a global recession,” said Mr Rees.

Examples of spending on infrastructure this year include:

• $560 million to see the start of 17 major new projects in schools and 13 in TAFE along with IT upgrades.
  Includes a major upgrade at Cabramatta High School, library upgrade at Lisarow High School, Wagga Wagga TAFE Engineering/Digital Media Facilities upgrade and Armidale TAFE Community Services upgrade;
• $440 million on public school and TAFE maintenance – part of $1 billion over four years.
  Includes $75 million this year for Principals’ Priority Building Program for roof, toilet and stormwater upgrades;
• $135 million to continue the $251 million Liverpool Hospital project for new clinical services block to include high dependency maternity, medical, non-acute, paediatric inpatient and surgical services;
• $28.8 million to continue work on the $251 million Orange Base Hospital redevelopment including radiotherapy services and new dental clinic; and
• $75 million for securing electricity supplies with new substations at Jesmond, Adamstown, Kurri Kurri, Raymond Terrace, Scone, Tomaree, Rathmines, and Mayfield West and $58 million for new or refurbished substations at Kogarah, Port Botany, Kingsford, Rose Bay, Jannali, Mortdale, Camperdown, Gwawley Bay and Kurnell.

Treasurer Eric Roozendaal said the NSW Government will invest $18 billion in infrastructure in 2009-10 - 31.4 percent higher than in 2008-09.

“Our investment means job-supporting infrastructure, a boost to business confidence and protection for frontline services.

“The NSW economy has felt the impact of the global recession, with the state’s economy heavily dependent on the housing construction, tourism and financial services sectors,” Mr Roozendaal said.

The $62.9 billion infrastructure program will include up to $5 billion in Federal stimulus funding invested in NSW projects over the four years.

NSW Government key infrastructure over the next four years includes:

• $15.7 billion on securing NSW’s energy supplies;
• $10.8 billion on new roads including $3.2 billion for the Pacific Highway;
• $5.4 billion on water and sewerage;
• $2.7 billion towards the Sydney Metro;
• $935 million for rail clearways;
• $804 million for the South West Rail Link;
• $5.7 billion in school education including:
  - $2.9 billion for Building the Education Revolution
  - $176 million for the Digital Education Revolution
  - $50 million each year for Trade Training Centres
  - Around $600 million each year for schools and TAFE colleges;
• $4.3 billion investment in social housing including:
  - $2 billion as part of the Nation Building Economic Stimulus Plan, supporting an estimated 6,500 new social housing dwellings and upgrades on existing dwellings
  - Around $500 million each year for NSW’s program for new dwellings and improvements to existing dwellings;
• $2.4 billion into health services, including:
  - $138 million for the $973 million Royal North Shore Hospital
  - Redevelopment of Nepean and Narrabri Hospitals.

The policy areas are based on the Australian Bureau of Statistics’ system of Government Finance Statistics (GFS).

GFS policy areas do not always align with individual agency infrastructure investment budgets as an agency can provide a range of services that are classified into more than one GFS policy area.