Developers welcome $4b plan to save jobs

Property developers have welcomed the government's latest move to rescue the economy and keep Australian jobs.

The $4 billion Australian Business Investment Partnership will provide financial
support for major commercial property projects across the country.
Half the money will come from the federal government, with Australia's four major
banks providing the other $2 billion.
Acting Treasurer Lindsay Tanner said up to 50,000 jobs in the property industry
would be protected.
"The government's taking decisive action to protect the jobs of thousands of
Australian workers and the livelihoods of many small investors that are tied up in
the commercial property market that are under threat through no fault of theirs..."
Mr Tanner told reporters in Melbourne.
"But the risk is that foreign banks that are part of syndicated loans may pull out
when the loans are due because of the circumstances overseas.
"The government's not going to stand by and allow the strong profitable companies to
suffer, workers and investors to suffer, because of the circumstances that have got
nothing to do with anything going on in Australia."
Decisions about who will receive the money will be "unanimous" he said, and only for
ventures that are already built or partly constructed and are stable.
The money involved won't affect the government's coffers, he insisted.
"The amount of money involved here...does not count against the budget's bottom line
because they are investments, they are not the current spending as such...
"This is an investment, it will make a return for the government," he said.
Property Council of Australia chief executive Peter Verwer endorsed the plan.
"The establishment of a liquidity fund would send a strong signal that the major
banks plan to support well-run property companies," Mr Verwer said.
"Australia's major property companies are well placed to weather the global
financial crisis. However, they need to continually refresh their finance
facilities."
The Urban Taskforce, a property industry group, said the plan would help stop
large-scale job losses.
Chief Executive Aaron Gadiel said many developers had been unable to secure loans
for large-scale projects and this funding pool would give the sector a much-needed
boost.
"Without action we would lose valuable jobs, income and development that our
community desperately needs," Mr Gadiel said.
"For every $1 million spent in construction, 27 jobs are created."
Opposition leader Malcolm Turnbull slammed the project, saying it wouldn't create jobs.
"This is a plan that was brought to the government by the National Australia Bank to
assist it in supporting its balance sheet and its profitability, and the
beneficiaries will be the banks," Mr Turnbull told reporters.
He said the government should be promoting employment and industries right across
Australia, not just one sector.
Mr Tanner dismissed that criticism, saying it's "astonishing" Mr Turnbull is not
concerned about the jobs of those in the sector.
"It's amazing that he cannot understand the very real threat here and it is amazing
that he is dismissing this proposition in such a cavalier way," Mr Tanner said.
The amount of money involved in the partnership could be increased to $30 billion if
needed.