THE AUSTRALIAN Industry Group, a peak employer association, has welcomed the infrastructure funds announced in Victoria’s state budget this week.
AI Group Victorian head Tim Piper said the $21 billion in funding for infrastructure will continue to support the economy and many industry sectors focused on infrastructure, while investments in rolling stock are also positive.
“In addition to the infrastructure investment, Victorian manufacturers will need additional government programs to facilitate the growth of manufacturing capacity including to address supply chain disruption and attracting investments into the state,” Mr Piper said.
He said the program for delivering this infrastructure will also need to take into account and address industry’s overall capacity to meet the additional demands.
“We know that industry is concerned at the lack of labour and particularly skilled workers. This effectively constrains capacity. We hope government will be recognising these constraints and actively pursuing an agenda to develop industry capabilities and particularly workforce capabilities,” Mr Piper said.
“This is a budget with the government’s eyes firmly set on November [when the next state election is scheduled to take place] and ensuring its social agenda is pursued. It is a ‘health-led recovery’ budget with considerable spending on health infrastructure matched by increased training and opportunities for people to join the health sector.”
Mr Piper said the government projections are for the state to have a lower growth rate than the rest of the country over the next two years.
“We expect the Government’s ambition would be to at least meet, if not do better than, the rest of the Australian economy,” Mr Piper said.
