23 septembre | Melbourne's population hits 4 million - www.theage.com.au
Melbourne's population has reached 4 million and Australia's is surging towards 22 million, according to new figures that have sparked fresh debate about the impact of record migration.
The Bureau of Statistics says Australia's annual net migration soared in the first three months of this year to 278,000 - up from just 100,000 five years ago.
Annual population growth was estimated at 439,000, almost double the level of five years ago. When the bureau's conservative methodology is taken into account, real annual population growth could be closer to 500,000.
At that rate, the nation may be only days away from reaching 22 million people - and Melbourne has probably passed 4 million already.
Victoria's population jumped 112,000 in the year to March. Assuming Melbourne has kept its share, the city is expanding by an unprecedented 90,000 people a year, or more than 1700 a week.
While population growth has kept the economy growing and house prices rising this year, it has also put pressure on public transport and other services - especially as the growth is being driven by international students.
Government figures at the end of July showed that in five years, total international student numbers have almost doubled from 288,400 to 547,663.
Treasurer Wayne Swan said last week Australia's population was on track to hit 35 million by 2049, but denied this would lead to an immigration debate. ''Australia is a welcoming country,'' he said, adding that immigration was good for the economy.
But yesterday, Immigration Minister Chris Evans took a defensive line, saying the estimates included temporary skilled workers and students, most of whom ''will eventually return to their home countries''.
The Australian Conservation Foundation urged migration cuts. ''Australia's population is on a collision course with our natural environment,'' said its director of strategic ideas, Charles Berger. ''The higher our population goes, the harder it will be for us to reduce greenhouse pollution, restore our rivers to health and ensure a good quality of life for all Australians.''
Population growth is increasing pressure on Melbourne's stressed public transport network. Government figures show peak-hour trains regularly carry over 1200 passengers, despite being defined as ''overcrowded'' if they carry more than 798.
Daniel Bowen, of the Public Transport Users Association, urged the Government to buy more trains and provide more train and bus services, particularly in the booming outer suburbs. ''Many suburbs have only one bus every 30 or 60 minutes, and some areas have no services at all on weekends,'' he said.
Victorian Council of Social Service chief executive Cath Smith said high growth was good in the long run, increasing the workforce, but it needed to be managed properly. High population growth was putting pressure on housing affordability and social services, she said. Already 70 per cent of Melbourne renters spend more than 30 per cent of their income on rent.
Ms Smith also warned that ''soft'' infrastructure, such as health services, childcare, mental health and disability support, was not being provided fast enough in growing outer suburbs.
State Government spokesman Bill Kyriakopoulos said the Government was planning for at least 5 million people to be in Melbourne by 2030.
''We are planning for the future by developing an integrated transport system to accommodate growth, directing growth to key corridors, building up activity centres and providing timely and quality new infrastructure for communities,'' he said.
Business Council policy director Patrick Coleman said Australia benefited from strong population growth and skilled migrants. ''This supports economic growth, and is very important in helping us address the needs of an ageing population and creating a skilled workforce,'' Mr Coleman said.
19 septembre | BHP seals Newcastle Port upgrade deal - www.theage.com.au
BHP Billiton has struck a deal with the NSW Government to allow for a major expansion at Newcastle Port.
The deal will end lengthy ship queues and comes after months of wrangling at the world's biggest coal export terminal.
Jimmy Wilson, BHP's president of energy coal, said the an industry-wide agreement was the best outcome for the Hunter Valley coal industry.
"I am delighted we have reached a solution that is supported by all of industry," he said. "With these agreements in place the coal industry will have long term certainty over future access to vital port capacity which will support our future expansions and growth of the region."
Mr Wilson said BHP had already committed $US390 million ($448 million) as part of its contribution to terminal operators Newcastle Coal Infrastructure Group's stage one development and $US260 million towards the expansion of its Mt Arthur coal mine.
18 septembre | Hunter coal producers agree to historic export plan - www.premier.nsw.gov.au
The NSW Government has reached an agreement which will support $5 billion worth of investment in new port and rail infrastructure over the next 4 years.
Premier Nathan Rees said that NSW is set to reap an investment and jobs bonanza with the Hunter Valley’s fourteen coal producers agreeing to the Government’s long term coal export plan.
“This plan will support thousands of jobs each year and boost coal export revenue by an estimated $6.5 billion per annum by 2016,” Mr Rees said.
“Construction of new coal chain infrastructure will generate an average of 1,700 direct jobs and 2,400 indirect jobs each year up until 2015.
“It will also unlock new mining activity in the Hunter region creating a further 3,600 direct and nearly 12,000 indirect jobs.
“This plan cements Newcastle’s position as the world’s biggest coal port with export capacity expected to double to 180 million tonnes over the next 6 years.”
Mr Rees said that shareholders in new terminal operator Newcastle Coal Infrastructure Group (NCIG) have agreed to a plan that secures growth and employment in the industry.
NCIG joins existing terminal owner Port Waratah Coal Services (PWCS) and its shareholders, including Rio Tinto and Xstrata, who reached agreement with the Government late last month.
Ports Minister Joe Tripodi said the reforms were guided by the Government’s strong commitment to three key policy principles:
- to grow total industry exports from the Hunter
- to protect access rights for new and expanding mines and
- to provide certainty over export capacity to support investment
“These new arrangements will replace the CBS (Capacity Balancing System) which saw export capacity at Newcastle allocated on an annual basis but failed to provide certainty for investment.
“This historic plan will give industry certainty over coal allocations beyond the end of each year,” Mr Tripodi said.
“It also guarantees access for new entrants and ensures the growth of coal terminal capacity while satisfying the concerns of existing producers.”
Minister for the Hunter Jodi McKay welcomed the breakthrough. “This plan will provide jobs and investment ensuring continued prosperity for the Hunter Region,” Ms McKay said.
The Hunter Coal Port Plan will be signed off by the Government and export terminal operators in a signing ceremony next week.
Mr Tripodi said the new arrangement will start at the beginning of next year pending approval from the ACCC.
14 septembre | Leighton to build $200m highway in Victoria - www.theage.com.au
Australian construction company Leighton Holdings Ltd has been selected by the Victorian government to construct the $200 million Western Freeway route between Melton and Bacchus Marsh, west of Melbourne.
John Holland Group Pty Ltd, a wholly owned subsidiary of Leighton, will construct the freeway in an alliance with Victoria's highway department, VicRoads, and technical services company AECOM.
John Holland general manager southern region David Moran said the company was excited about the commencement of the new work and the opportunity to strengthen its relationship with VicRoads.
"The project has been awarded both on the strength of our project team and the innovative solutions developed to ensure the efficient delivery of the project," Mr Moran said.
"At the heart of our solution is a focus on providing value for money for the state of Victoria."
The realignment will extend south of the existing freeway and link Harkness Road at Melton West with Bacchus Marsh Road at Bacchus Marsh.
14 septembre | National Broadband Network names execs - www.theage.com.au
NBN Co Ltd, the company established to deliver the national broadband network, has begun appointing key executives.
Jean-Pascal Beaufret was appointed Chief Financial Officer, Christy Boyce is head of industry engagement and was previously a principal at McKinsey & Co.
Tim Smeallie will be head of commercial strategy and Greg Willis is head of program delivery. Kevin Brown has been appointed chief human resources officer and head of corporate services.
"These appointments are a critical first step in delivering on this important nation-building infrastructure project, NBN executive chairman Mike Quigley said.
"Each executive brings the best in industry expertise to critical areas of the National Broadband Network and ensures at this very early stage that we have the right mix of capabilities to lead this project through the planning stages."
NBN will continue to announce appointments to its executive committee over the coming months. "Everyone who is joining NBN during its formative stage is well aware of the tasks ahead and the commitment needed to guide what will be a very large and complex infrastructure project," Mr Quigley said.
The NBN company will oversee the creation of the network over the next eight years, to deliver vastly improved internet speeds to 98 per cent of Australians.
9 septembre | $17.3 million in road upgrades for Mornington area - www.premier.vic.gov.au
The Brumby Labor Government today announced $17.3 million worth of road upgrades to improve safety on local road networks in the Mornington area and surrounding suburbs.
Roads and Ports Minister Tim Pallas was joined in Pearcedale today by Member for Eastern Victoria Johan Scheffer to announce a raft of road upgrades for the region.
“The Brumby Labor Government is taking action to improve Victoria’s roads because we understand how important these safety benefits are for local communities,” Mr Pallas said.
“Roads are key to Victoria’s economic and social development – connecting our towns and suburbs and ensuring efficient freight movement and creating jobs.
“This funding will deliver significant improvements to roads in the region, with $7.8 million going towards upgrades to Western Port Highway, an important commuter and transport link connecting Melbourne and Hastings.”
Mr Pallas said the highway would get a major run-off road crash treatment from North Road, Pearcedale to Frankston-Flinders Road in Tyabb.
“The section of road that forms part of this project has many roadside hazards consisting primarily of trees, power poles, light poles, embankments, batter slopes, ditches and unsealed shoulders – the majority are unprotected and a real danger to motorists,” he said.
“The safety upgrade, including clearing, road sealing and installation of wire-rope barriers, will help to help greatly reduce injuries in the event of a vehicle leaving the road and also lower the chance of a collision with embankments on the roadside.”
Mr Pallas said other upgrades to come from the $17.3 million boost include:
• $4.9 million for run-off road crash treatment for Frankston-Flinders Road, from Baxter-Tooradin Road in Baxter to Mornington-Tyabb Road in Tyabb;
• $3 million for a new roundabout at the intersection of Baxter-Tooradin Road, Tooradin -Tyabb Road and Smiths Lane in Pearcedale;
• $1.2 million for traffic lights on Nepean Highway at Tanti Avenue and Pentecost Road, Mornington; and
• $330,000 for pedestrian refuges on Point Nepean Road at Sorrento and Blairgowrie.
Mr Scheffer welcomed the road safety upgrades and said they were a great result for motorists and local communities.
“Providing safer roads contributes to economic development, enhances safety and ensures our roads continue to service the community well into the future,” he said.
“These projects are the result of thorough consultation with the community and local councils, who can be proud of their contribution to providing a safer road network.”
The projects are part of the Safer Road Infrastructure Program to which the Brumby Labor Government has committed $650 million over the next 10 years. Works will start in the new year.
8 septembre | Victoria’s desalination project streams ahead - www.invest.vic.gov.au
The Victorian Desalination Project is streaming ahead with the first contract awarded and construction set to begin in October, expected to inject $1 billion into the Victorian economy.
AquaSure, the consortium delivering the project (comprising Suez Environnement, Degremont, Thiess and Macquarie Capital Group), have awarded a $150 million contract to build 84 kilometres of pipe for the project to Victorian-based company Tyco Water, securing 1000 local jobs.
Tyco Water will build the pipe at its Somerton factory creating 50 new jobs and securing 50 existing jobs, while BlueScope Steel will provide the majority of steel for the pipes protecting around 900 jobs at its Hastings facility.
Victorian Water Minister Tim Holding said the desalination plant would be operational from the end of 2011 and was critical to securing water supplies for Melbourne, Geelong and towns in Western Port and South Gippsland.
“I expect this project and other water projects like the Sugarloaf Pipeline will see our water storages begin to recover in 2012 and restrictions progressively eased.
“At the same time as securing our water supply, during construction of the desalination project we are securing 1700 direct jobs and as many as 3050 indirect jobs in a tough global economy,” he said.
Tyco Water, Australia’s largest pipe manufacturer, will produce around 6200 straight pipes for the pipeline which will transfer water from the plant site near Wonthaggi to Melbourne’s existing water network near Cardinia Reservoir.
Last year’s $40 million expansion of Tyco’s facility to produce larger-diameter pipes has helped it secure contracts for major water infrastructure projects across Australia.
Tyco Water has worked on a number of projects for the Victorian Government’s Water Plan including the Sugarloaf Pipeline, Goldfields Superpipe and Wimmera Mallee Pipeline.
AquaSure brings together three world leaders to finance, design, build, operate and maintain Australia’s largest desalination plant: Suez Environnement through its affiliate Degrémont, world leader in desalination technology; Thiess, one of Australia’s largest and most trusted construction and services companies; and Macquarie Capital, the world’s strongest and most experienced infrastructure advisor.
Located on the South Gippsland coast, the plant will be capable of supplying up to 150 billion litres of fresh drinking water each year – more than a third of Melbourne’s annual water needs.
3 septembre | Privatisation has public transport on track - www.theage.com.au
The details of the new franchises for Melbourne's public transport, released this week, provide a ringing endorsement of privatisation.
The contracts show that the involvement of the private sector in the provision of public transport services, as a form of public-private partnership, controls costs for taxpayers and provides better services for commuters.
Also, the fact that new operators with ambitious plans are replacing the incumbents strongly validates the decision to award new franchises by a competitive tendering process, rather than by negotiation.
This crucial decision was a close-run thing. There were powerful elements within the Government that advocated negotiation with incumbents, rather than testing the market. Fortunately, the Government chose the more courageous option of going to tender, the first time this had been done since the initial contracts were let in 1999.
Competitive tendering has achieved the impressive double of keeping costs under control for the eight-years of the contracts while delivering several customer service initiatives. Where there is investment, it is in the key maintenance area, which ensures that some practices and attitudes that remain from Public Transport Corporation days are finally eradicated.
The new operators, Metro Trains Melbourne and Keolis Downer EDI (KDR), will bring new perspectives, and strong international expertise, to Melbourne's trains and trams respectively. Given the focus on trains in recent years, MTM probably has the bigger challenge. It is a joint venture between MTR Corporation of Hong Kong, and locals John Holland and UGL Rail (a division of United Group Limited).
The fleet that MTR operates to more than 99 per cent punctuality in Hong Kong contains rolling stock that has a life expectancy of 40 years and that raises the hope that even the older components of Melbourne's fleet can be utilised efficiently. MTM has also committed to ensuring that air-conditioners on Comeng trains will be able to operate in temperatures up to 45 degrees.
Anyone who stands at Flinders Street in the evening peak also knows that there is scope to radically restructure train platform movements, which remain essentially as they were designed by VicRail bureaucrats when the City Loop opened in the early 1980s.
New contracts have also given the Government the chance to amend the performance regime, which often meant that operators could be fined for the consequences of their success in increasing patronage in Melbourne at a rate faster than almost any other city in the world.
Unfortunately, the Government was slow to respond to the patronage boom delivered by the private operators but was often prepared to have the operators carry the can for problems that were beyond their control. For years, the Government had the best of both worlds, taking credit for improvements and blaming operators for problems.
Privately, Premier John Brumby must be happy the privatisation of the public transport system was completed just days before the 1999 election. Given that the Government, when left to its own devices, managed to turn an $80 million regional fast-train project into one costing more than $1 billion, one shudders to think what it might have spent on the metropolitan system.
Without privatisation, it would probably look more like Sydney's system, which has had no patronage boom, costs taxpayers far more to operate and performs worse.
Melbourne entered the 1990s with its streets blockaded with trams as a result of what were regular strikes that had destroyed confidence in public transport. Fares were increasing at a rate way above inflation, the system had inefficient work practices and patronage was about half its present level.
Two decades of reform, privatisation and a patronage boom provide the new operators with the opportunity to finally bring home the bacon for Melbourne's commuters.
31 août | Infrastructure Australia calls for public submissions - www.infrastructureaustralia.gov.au
Federal Infrastructure and Transport Minister Anthony Albanese and Infrastructure Australia Chair Sir Rod Eddington have today urged all Australians to be part of the Rudd Labor Government's nation-building agenda.
From today until 15 October, any member of the public and business community can submit their project ideas to Infrastructure Australia for evaluation and possible inclusion on the National Infrastructure Priority List - the first of which will be handed to the Council of Australian Governments in March 2009.
"We want both industry and the community to be our partners in the long term effort to fix and modernise the nation's critical economic infrastructure: our roads; railways; ports; water and energy utilities; and telecommunications," said Mr Albanese.
"I urge the community to take this opportunity to have their say. After all, the quality of the nation's infrastructure affects the bottom line of all businesses and the quality of life of all citizens.
"But in making a submission we are asking people to look beyond their own street or neighbourhood and to put forward ideas and suggestions that will strengthen the national economy.
"We as a government do not believe that we have a monopoly on all the good ideas for Australia's future." Sir Rod Eddington said one of the goals of Infrastructure Australia is to facilitate public discussion of how the nation can better plan, finance, build and use major infrastructure.
"We have indications that members of the community, including people working in industry and government, have both ideas and information potentially of great value to our work," said Sir Rod Eddington.
"Continuing investment by both the public and private sectors must be based on a sound understanding of strategic national priorities including economic, social, and environmental considerations. "With this in mind, I will tomorrow release a discussion paper to stimulate both public and private conversations about the challenges and opportunities ahead."
Infrastructure Australia's immediate tasks are to conduct an audit of the nation's transport, energy, communications and water infrastructure; produce an Infrastructure Priority List to guide future public and private investment decisions; and develop nationally consistent guidelines for Public Private Partnerships.
19 août | Deepening Port of Melbourne to boost Australian economy - www.theage.com.au
Major dredging works in Melbourne’s Port Phillip Bay have concluded, deepening the main shipping channels into the city to enable access for larger ships, with the project on track for full completion by the end of the year.
The channel deepening project saw the Queen of the Netherlands and its sister vessels removing nearly 23 million cubic metres of sand and silt to deepen the main shipping channels in Port Phillip Bay.
Victorian Premier John Brumby said channel deepening is expected to generate more than $2 billion to the national economy over the next 30 years and has created about 2300 jobs during project construction.
“The efficiency of the Port of Melbourne impacts upon the livelihoods of thousands of people, with port activities supporting almost 14,000 jobs. To continue to grow Victoria’s economy, we must continue to grow our exports.
“In the June 2009 quarter, nearly 62 per cent of container ships accessing the port could have carried more cargo but were constrained by depth. By increasing the allowable draught for container ships to 12.1 metres, we’re giving our exporters the capacity to get their goods to markets around the world.”
Victorian Roads and Ports Minister Tim Pallas also said this was the first time in the port’s history the entrance to the bay had been deepened without the use of explosives, which ceased in 1986.
“From the beginning of this project we have been committed to ensuring channel deepening is completed in a way that minimises impacts on the environment, with the project subject to the strictest environmental conditions ever seen in Australia,” he said.
Port of Melbourne Corporation Chief Executive Officer Stephen Bradford said he was extremely pleased the bay dredging would be completed ahead of schedule.
“This outcome is due to the high level of professionalism and commitment exhibited not only by port staff, but by our Alliance partners from Boskalis Australia. Their crews clocked up in excess of one million hours in carrying out the dredging operations,” Mr Bradford said.
He said works involving minor dredging in the Yarra River as well as works on navigation aids, berths and services protection were scheduled for completion by year’s end.
4 août | The Victorian Transport Plan - www4.transport.vic.gov.au
The Victorian Transport Plan includes more than $38 billion in projects to meet the demands of a growing state. Major initiatives include:
31 juillet | Brumby’s $3.5bn desal gamble - www.theage.com.au
VICTORIAN taxpayers could be asked to throw a financial lifeline to the state’s desalination plant, after the Government agreed to underwrite its new private partners in the multibillion-dollar project
The AquaSure consortium, led by French water company Degremont, yesterday was named as the winning bidder to design, build and operate the $3.5 billion water factory, which is hoped to secure Melbourne’s drinking supplies at a cost of rising water prices.
Crucial financial details — including how much taxpayers will pay at times when the plant is not producing water — will remain secret until the deal is finalised in September.
More than two years after the plant was first announced, the controversial project has weathered fierce opposition on the Bass Coast, a Federal Court challenge and a major economic downturn to become the centrepiece of the State Government’s water plan.
With a maximum production of 150 billion litres each year, the plant could supply more than a third of Melbourne’s annual water consumption, and will begin pumping water to Cardinia Reservoir in late 2011.
The losing consortium included French corporation Veolia — making it the second time in recent weeks that Veolia has lost a major tender in Victoria, after its subsidiary Connex was dumped as the operator of Melbourne’s trains.
Desalination will be a major factor in household water bills rising up to 64 per cent within four years, but the Government’s surprise decision to act as the project’s guarantor means taxpayers could end up paying even more in the short-term.
The chairman of the winning consortium, Tony Shepherd, said AquaSure had secured $800 million in equity and $4 billion in debt, and would now seek to sell down its debt to superannuation funds.
Premier John Brumby said the Government would take the debt off the consortium’s hands at commercial rates if buyers for the debt could not be found. But Mr Brumby stressed he did not expect this to occur.
Sources suggested the Government’s maximum lifeline would be less than $2 billion, and it is hoped that some of the 10 banks aligned to the unsuccessful bid would seek to become involved with AquaSure.
Another source intimately involved in the desalination tender process said the Government’s role as guarantor was a symptom of the economic downturn, and would not have occurred in the economic climate of two years ago.
Mr Shepherd said the project was ‘‘by far’’ the biggest public-private partnership (PPP) in the world since the global financial crisis began. Yet with the ultimate risk carried by the Government, Monash University expert Dr Graeme Hodge questioned whether it should be called a PPP at all.
‘‘Having a background government guarantee puts a new label on the project. Is this a public-private partnership for infrastructure or is it an industry support mechanism, a donation to the construction sector?’’ Dr Hodge said.
The Nationals leader and member for Gippsland South, Peter Ryan, said underwriting the project ‘‘defeats the basic purpose of having a PPP’’.
Under the deal announced yesterday, the Government has committed to making fixed, periodical payments to the private operators, even in times when no water is required.
The Government is also bound by a water use fee, which rises and falls depending on how much water is supplied.
While it has retained the right to order no water in a given year, the Government will still have to pay a fixed, periodic payment for the 30 years of the contract. More details of how much those fees will cost Victorians are expected to be released in September.
The contract forbids the private operators from selling water to anyone other than government-run water authorities. Water Minister Tim Holding would not say what dam levels would be required for the Government to stop ordering water from the plant.
However, Melbourne’s water retailers have been told to expect the plant to operate at full capacity if the city’s dams are below 65 per cent on March 31 each year.
An 11-hour push from the Government for the plant’s power connections to be buried underground succeeded, with both bids abandoning the option of connecting the plant to the electricity grid with 85 kilometres of overhead power lines.
It was a massive win for local campaigners, many of whom are farmers. Around 75 per cent of public submissions to the Environmental Effects Study into the project were focused on power lines.
Despite earlier plans for a two-year, two-kilometre exclusion zone along neighbouring Williamsons Beach, Mr. Brumby yesterday said the beach would now stay open.
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