Media Release


UDIA Victoria Backs Call for Government to Borrow



Executive Director of the Urban Development Institute of Australia (Victoria), Tony De Domenico today supported the call by leading Australian Economist Hans Kunnen, Chief Economist, St. George Banking Group and Bank of Melbourne, for Governments to fund urgently needed infrastructure.


Tony De Domenico 
Executive Director
Urban Development Institute of Australia (Victoria)

Mr De Domenico said, "In the coming twelve months we are looking for policy and actions that will return the construction industry to levels that will enable us to cope with increased population demands and infrastructure needs".

"In simple terms a combination of prudent borrowing combined with the choice of infrastructure projects to create productivity and attract private investment at a time when low interest rates can be locked in for ten years, is a major opportunity for positive political action".

"By moving now Governments could cut hundreds of millions of dollars off the cost of major infrastructure projects, such as a second crossing to the west of Melbourne or the creation of job employment centres closer to building in the outer suburbs."

Mr De Domenico said, "The fastest growing residential areas of Melbourne and regional Victoria need investment in infrastructure now to boost employment and also provide strong economic communities to cope with the State's increasing population".

"Recognising the Victorian cut back in GST revenue reducing the ability to fund infrastructure, the UDIA (VIC) has put forward a ten point plan to the Victorian Government to stimulate the Victorian property sector".

"This included the introduction of ten year Government Guaranteed infrastructure bonds to provide a safe and productive investment choice for investors with a positive outcome for the community."

Mr De Domenico said it is not only the Governments' job to stimulate the economy by funding, creating a more productive system to bring land to market and help make housing affordable, but it also required the private sector to develop new innovative and affordable housing choices.

"The bottom line is that the property sector provides major tax returns to government and importantly has a major flow on impact on the provision of jobs, materials and services which flow into local economies," Mr De Domenico said.

Media Enquiries:
Ron Smith, Corporate Media Communications, UDIA (VIC) Mobile: 0417 329 201