Australian Greens Treasury spokesperson, Senator Peter Whish-Wilson, today responded to comments by the Reserve Bank Governor and the IMF regarding infrastructure and housing.
Senator Whish-Wilson said, “The RBA and the IMF have once again laid out the case for increasing government borrowing to invest in infrastructure.
“The Greens went to the last federal election with a detailed policy for a nation-building infrastructure program, that included restructuring infrastructure financing and a focus on transitioning our economy to become 100% renewable.
“This was based on evidence from a long and extensive Senate select committee inquiry into infrastructure financing in Australia, chaired by the Greens.
"Whilst we have been the only political party consistently calling for our government to borrow more for productive infrastructure at record low interest rates, the RBA Governor, Philip Lowe, has again made it clear that borrowing to invest in productive infrastructure is not inconsistent with repairing the budget.
“The government seems to be blind to what any business owner knows; sometimes you need to spend money to make money.
“We need to be building the infrastructure of the 21st century to shore up and better share Australia’s economic prosperity. Investment in clean energy, public transport and a proper NBN will make Australia stronger and better equipped for the future.
“The failure of the government to spend on infrastructure only puts further pressure on the RBA to use the one lever they have at their disposal. Without spending on infrastructure another rate cut will only further inflate the housing bubble.
“The last rate cut resulted in further increases in house prices. The government needs to act to stop more investors flooding the market and locking a generation of Australians out of the prospect of home ownership,” he concluded.