Oppn demands answers on infrastructure funding
Posted
Opposition Treasury spokeswoman Julie Bishop wants to know where the money is coming from. (AAP: Alan Porritt, file photo)
The Opposition is demanding answers about the Federal Government's plans to fund infrastructure projects.
Figures released yesterday revealed the economy is slowing sharply.
The Government is hoping to bring forward infrastructure spending as a way to stimulate the economy and says it continues to examine all appropriate measures to properly support infrastructure investment.
Earlier today, Prime Minister Kevin Rudd did not say if the Government would set up an infrastructure bank, but he said the Government does intend to fund infrastructure in a new way.
"We will embrace a new approach for the national Government to invest in infrastructure, to invest in health infrastructure, to invest in education infrastructure as well," he said.
But Opposition Treasury spokeswoman Julie Bishop says the Opposition is concerned that the Government is considering funding the projects by setting up an infrastructure bank.
"There will be some creative way of injecting funds from the Commonwealth," she said.
"Now that raises numerous questions and we need to know more about this Labor bank. Where is the money coming from?"
Ms Bishop says the Federal Government must be accountable.
"We would want to be very sure that there were accountability, transparency and governance issues," she said.
"But at this stage it sounds like a creative way to ensure that the Australian public don't know who is propping up the state government.
"If it were taxpayer funds then the Rudd Government should be answerable for it."
Meanwhile, Ms Bishop told ABC1's Lateline that Australia's economic fundamentals are still strong.
"The Government has no debt, growth figures are still positive, unemployment is still low, relatively speaking," she said.
"The Government has put in place a number of stimulatory measures. We have the $10 billion stimulatory package which is yet to be delivered.
"The Reserve Bank has been cutting interest rates, but it still has room to move in terms of monetary policy. So I would hope, and I'm sure all Australia would hope, that those stimulatory measures will have the impact of continuing to stimulate growth."
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