Mid Year Review Capital Boost Focuses on Water and Hospitals

10 January 2007

Queensland’s record capital works budget has climbed even higher. The extra funding is outlined in the Queensland Government’s 2006-07 Mid Year Fiscal and Economic Review which was released today.

Acting Premier and Treasurer Anna Bligh, outlined a revised 2006-07 capital spending budget of $11.6 billion, up from the $10.1 billion announced in the State Budget.

Over the budget period 2006-07 to 2009-10, total capital spending is expected to increase by $9 billion over estimates provided in the State Budget.

Ms Bligh said that the additional spending is predominantly due to the incorporation of the Government’s election commitments in respect of water and the range of new and upgraded hospital infrastructure under the More Beds for Queensland Strategy.

“The South East Queensland Water Infrastructure projects are expected to cost some $6.5 billion over the next four years, including $880 million in 2006-07,” Ms Bligh said.

“The Government’s More Beds for Queensland Strategy, which includes new hospitals at the Gold and SunshineCoasts, as well as the new paediatric hospital, is expected to cost some $1.3 billion over the next four years.”

The increase in capital expenditure also reflects the expansion of port and rail infrastructure to support increased coal tonnages, increased spending on Citytrain rollingstock and expenditure associated with the duplication of the GatewayBridge and associated motorway upgrades.

“Despite this increase in capital spending, borrowing across Government is expected to be around $80 million less than forecast at the time of the 2006-07 Budget. This reflects the Government’s improved 2006-07 cash flow position on the back of strong economic growth, while the bulk of borrowings for water infrastructure are expected to take place from 2007-08 onwards” Ms Bligh said.

Media inquiries: John Algate 3224 5982