The peak body representing the heavy construction materials industry, Cement, Concrete & Aggregates Australia (CCAA), today welcomed the New South Wales Budget as another step in driving economic development through investment in construction, but reiterated calls for the development of a Heavy Construction Materials Strategy to support effective and affordable supply of these essential materials.
CCAA is pleased to see the strong spending in infrastructure to underpin the NSW economy having continued to advocate for investment after longstanding engagement with NSW Labor when in opposition.
This continued commitment to infrastructure spending is reflected in the $116.4bn forward estimate infrastructure pipeline, with $72.3bn in transport infrastructure including:
• An additional $1 billion in Sydney Metro City and Southwest
• $7.9 billion to deliver the Sydney Metro to Western Sydney Airport, with six new stations
• $302.7 million reserved for a Western Sydney rapid bus network to connect communities to the Western Sydney International Airport.
• $334 million to establish the Regional Roads Fund to build new roads in rural and regional areas.
• $200 million to expedite the planning and delivery of Parramatta Light Rail Stage 2.
• $106.2 million on the M7-M12 Interchange • $95.7 million to improve the Western Distributor
• $100 million for the upgrading of the Bells Line of Road through the Blue Mountains
CCAA also welcomes the focus on long term housing supply with a $2.2 billion injection at the centre of this budget including:
• $300 million to accelerate construction of thousands of new homes, including affordable housing.
• $400 million reserved in Restart NSW to deliver the infrastructure to unlock housing across NSW.
• $1.5 billion committed to the Housing and Productivity Contribution for housing related infrastructure
• $9.1 million to assess housing supply opportunities across government-owned sites.
The strong investment in infrastructure draws further attention to the importance of reliable and affordable supply of heavy construction materials to meet the needs of NSW.
CCAA again calls on the NSW Government to develop an integrated Heavy Construction Materials Supply Strategy. A clear strategy, embracing the end-to-end supply chain (cement, aggregates, sand, and concrete) is needed to guide investment, minimise infrastructure and housing costs, and provide greater certainty for the community around future land use.
Between now and 2036 for example, at least 500 million tonnes of finished quarry products will be required to supply the Greater Sydney Region alone, and these materials must be situated within close proximity of their end delivery point to facilitate effective supply and delivery of these essential construction materials.
CCAA Chief Executive Ken Slattery welcomed the continued commitment to infrastructure spend and the focus on long term housing where “the strength and growth of the NSW economy is dependent on a strong pipeline of projects and the provision of adequate and affordable housing supply” he said.
“CCAA also calls on the NSW Government to develop a long-term infrastructure plan to meet the current need for more public infrastructure to support housing developments, transport demand and associated services, along with the future demands of a growing NSW population” he said.
Jason Kuchel, State Director NSW & SA for CCAA welcomed the level of fiscal commitment to infrastructure projects but reiterated that “The NSW Government must quickly move to develop a Heavy Construction Materials Supply Strategy to ensure we are able to provide the construction materials required to bring renewable energy projects, infrastructure and affordable housing to fruition.”