VICTORIA’S housing industry is mounting pressure on the federal government to address lagging infrastructure in outer suburbs by suggesting carbon tax revenue be used to bankroll major projects.
The Urban Development Institute of Australia, at its yearly conference in Geelong today, urged the Gillard government to consider funding roads, tunnels, public transport and employment precincts with revenue raised from the carbon tax.
The institute’s Victorian director, Tony De Domenico, said the need for substantial investment was most pressing in growth areas such as Wyndham, Melton, Hume Whittlesea and Casey, where massive population growth was quickly outstripping available infrastructure.
He said tight economic times and the federal government’s lower GST allocations to Victoria this year meant the state government couldn’t afford to fund these much-needed projects on its own..
But the federal government has dismissed the calls, saying revenue from the carbon tax was already being used to cut emissions through investment in clean energy with the remainder going into assistance packages to cushion the blow of price hikes on household budgets.
Mr De Domenico said investing carbon tax revenue in infrastructure ‘‘made sense’’ environmentally because the projects would reduce pollution from peak-hour traffic snarls across Melbourne’s roads network.
‘‘With congestion in Melbourne estimated to be costing around $3 billion a year now, and jumping to $6 billion by 2020, it’s clear that Melbourne could become more like a big car park than the most liveable city in the world unless urgent funding is found,’’ he said.
‘‘One has to ask the question why public infrastructure such as roads, tunnels or public transport cannot be financed in part from carbon tax credits as they all will help reduce carbon pollution?’’
Mr De Domenico said creating employment opportunities in growth areas would also help slash the numbers of cars on the roads during peak periods.
‘‘With the expected growth to be strongest in the fringe areas…these are the areas we see need to be fast-tracked with business opportunities to provide work locally with the establishment of appropriate infrastructure and incentives to attract industries and businesses.’’
A spokeswoman for Federal Climate Change Minister Greg Combet said revenue from the carbon tax had been allocated to where it was most needed.
‘‘Revenue from the carbon price is already being redirected back into households, business and investment in clean energy,’’ she said.
‘‘Alcoa received free permits for its aluminium smelting activity in Point Henry, worth over $69 million.’’
State opposition infrastructure spokesman and Tarneit MP Tim Pallas said the housing industry’s calls were ‘‘missing the mark’’.
‘‘The federal government does have a role in contributing to nationally significant infrastructure — whether it be road, rail or the like.
‘‘Claims the federal government should make contributions out of the carbon tax is missing the mark because allocations have clearly been spelled out and most has been to reduce the impact on household budgets.
‘‘Money is tight at the moment, but the state government needs to pursue federal infrastructure allocations by setting clear plans that are costed, laid out and credible for the opportunity when the money is there.’’
