POPULAR WORDS

The Property Council of Australia has praised the state government for its decision to increase borrowings, a decision confirmed today by Queensland Treasury Corporation's announcement that it forecasts public borrowings to increase to $6.7 billion 2005, which will more than double its 2004 capital works borrowings of $2.9 billion. Confirmation of the increase comes just two months ahead of the eagerly anticipated state infrastructure plan and program, to be released in April, which is expected to include billions of dollars of infrastructure spending on strategic projects. Property Council Queensland executive director Robert Walker says it's encouraging to see the government taking the initiative and utilising public debt as an efficient and economically beneficial way to raise the money needed for public infrastructure. "Last year the Property Council released research prepared by the Allen Consulting Group which challenged governments to fundamentally rethink how our cities are recapitalized," he says. "The report found that public debt is the most efficient and economically beneficial way to raise funds for public infrastructure, however it also has the additional benefits of creating over 226,000 new jobs over a 15-year period, delivering $12.6 billion increase in economic output and providing the infrastructure items up front. "It also ensures a zero impact on the state's AAA credit rating." Walker says that the case for the greater use of public debt is strong. "Government at state and local levels should learn that recapitalising our cities is essential to maintaining and enhancing their economic, social and environmental sustainability," he says. "The report shows a strong preference for the use of approaches that match the cost to the community to the benefits from the use of infrastructure which are obtained over time – namely public debt. "The Property Council congratulates the state government for taking this initiative."