AUSTRALIA’s new $2.6 billion capitol is just the start of the country’s efforts to build a world-class capital.
The Government is building a $2 billion skyscraper in Sydney’s CBD, and it is hoping the $500 million building will attract investment from a global developer.
The $1 billion Sydney Opera House is part of a $500 billion project that includes the building of a state-of-the-art hotel, restaurants and offices.
It is hoped that Sydney’s $1.4 billion state-owned Opera House will attract private investment, and be part of the $2 trillion global economy.
The city’s $300 million city hall has also been awarded a $1 million grant to construct a $300m “digital museum”.
The $5.8 billion Sydney Harbour Bridge project is expected to cost $4.3 billion.
The Sydney City Council is also seeking $2 million from the federal government to build and upgrade the former Sydney Airport’s new facilities, and the $5 million is being earmarked for a Sydney City Library.
But with all the new money coming in, what is a capital city supposed to build?
The answer is not quite so simple, according to experts.
“What we are doing is building capital to generate jobs,” said Professor Tom Johnson from the University of Sydney’s School of Architecture and Urban Planning.
“It is the kind of capital where people will build jobs in the long term.
It is the sort of capital that creates real economic value for local communities.”
So how does a city manage a capital budget that is expected grow by 5 per cent a year?
That depends on the nature of the infrastructure the city has to offer, and how much it will cost.
“When we talk about the capital budget, we are not talking about building infrastructure.
We are talking about making sure the infrastructure is working as expected,” Professor Johnson said.”
The way we think about that is we look at the capacity of the city, and we look in the direction of where it is able to grow.”
The government is spending $1billion on infrastructure in Sydney, and more than half of that money will be allocated to the Sydney Airport and its expansion.
It will also be paying for a new train station to be built in Hobart, which will increase capacity by 10 per cent.
There are plans to build the world’s largest digital library, which would include a new branch at Sydney University, and a new museum in the city.
“That is a pretty substantial amount of money that will be spent in the medium to long term on infrastructure, and then it can be reinvested in the cities,” Professor Jones said.
And the future of the capital will depend on the economy of the states that sit alongside Sydney.
“If you look at how Australia is doing right now, it’s very reliant on the growth of the Australian economy, so it’s quite hard to get growth from outside the state,” Professor Williams said.
The Federal Government has committed to a $4 trillion global economic recovery, but it is also looking to expand its spending on infrastructure.
“There are some places in Australia where they are actually going to be a little bit more vulnerable in the short term,” Professor Brown said.
Topics:business-economics-and-finance,government-and of course-government,sydney-2000,nsw,sydney-3000,australiaFirst posted September 09, 2018 10:48:17Contact Matthew JohnsonMore stories from New South Wales