Lord Mayor Invests in Infrastructure Fund
05 July, 2008
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Lord Mayor Campbell Newman has established a long-term infrastructure fund with $79 million in compensation from the State Government’s takeover of Brisbane’s water assets.
Cr Newman said the City of Brisbane Investment Corporation (CBIC) will invest the money and use the returns to fund future infrastructure in Brisbane.
The Lord Mayor said he was surprised to read that Labor councillors were critical of the investment and wanted the money to be spent on footpaths in Northgate ward.
He said Labor had spent the past four years accusing him of spending too much money on vital infrastructure but now appeared to be doing a back flip.
“Labor cannot have it both ways,” Cr Newman.
“First they attack me for spending and now they are encouraging me to spend because it suits them. Well this money is going to stay invested for the benefit of all Brisbane ratepayers and not just a few Labor councillors.”
Brisbane’s funds reserves are at a record peak of $356 million – up from $155 million last year, and $88 million in 2006-07.
In addition, council’s debt will be completely paid off in coming days – effectively reducing citywide debt from $567 per person to zero on a net debt per capita footing.
“One of the benefits of the State’s takeover is that water will never again be the drain on council’s finances as it was this financial year when we had to spend a record $280 million to secure our precious drinking water in the fact of the drought,” he said.
“However the downside of the takeover is the State’s recent decision to increase bulk water prices by 30 cents a kilolitre which increased the average family’s rates bill by 2.36 per cent, or $37 a year.
The Lord Mayor said the CBIC would by run by an independent professional board who would wisely invest the $79 million of State funds left over after Council paid its debts.
“The charter of CBIC will be to generate, in a safe and responsible manner, long term cash flows for future budgets year after year,” he said.
“The income generated by the CBIC will enhance Council’s ability to deliver infrastructure well into the future.”