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Superannuation should fund infrastructure projects: Oppn

Posted December 1, 2008 00:42:00

Andrew Robb says superannuation funds should invest in infrastructure. (ABC News: Giulio Saggin)

The Federal Opposition says the Government should be encouraging superannuation funds to invest in infrastructure instead of going into deficit to fund the projects.

The Government says it is determined to keep trying to stimulate the economy with a spending package due this month, the extra money for the states from the Council of Australian Government's meeting and infrastructure funding.

It has been nearly a week since Prime Minister Kevin Rudd and Mr Swan conceded that might mean a budget deficit.

Opposition infrastructure spokesman Andrew Robb says he thinks it has already decided to go into debt.

"I've got no doubt that the talk now of the inevitability of a deficit is to soften the community up for massive borrowing," he said.

" ... The fact is, there's very little money left in the investment funds now that they've run down the surplus," he said.

Mr Robb says there is only $7 billion available over three years and $700 billion worth of requests to spend it.

He says instead of borrowing for infrastructure projects to stimulate the economy, the Government should be making private investment easier.

"There is much that can be done to unlock immediately hundreds of billions of dollars that's in Australia's superannuation funds and cash management funds," he said.

"That should be the first priority before they start to build up masses of debt which we'll have to pay back for many, many years to come."

There will be an indication of how close the economy is to recession when growth figures are released on Wednesday.

Tags: business-economics-and-finance, government-and-politics, federal-government, superannuation, australia