Infrastructure 'will take four budgets'

George Lucas would be proud.
Like casting roles for a Star Wars movie, Prime Minister Kevin Rudd has labelled the
coalition "Masters of Fear", while the government are the "Architects of Hope".
Mr Rudd told a Labor caucus meeting in Canberra that 70 per cent of the government's
stimulus packages was being invested in much-needed infrastructure.
This would help the economy recover faster, supporting 200,000 jobs in each of the
next two years, while filling the gap left by a retreating private sector.
"Infrastructure was a necessary investment that will make us strong and more
prosperous for the future, and is also an investment that is long overdue," Mr Rudd
said.
Labor's task was building the economy, while the opposition saw their task as
talking down the economy.
"They are the Masters of Fear, we are the Architects of Hope," he said.
Infrastructure investment and economic recovery were key themes of the opening
session of the Mineral Council of Australia's Minerals Week Conference in Canberra
on Tuesday.
Guest speaker Treasurer Wayne Swan told the conference that the $22 billion
investment in road, rail and ports made in his budget two weeks ago was only the
beginning.
"Of course we can't make up in one budget, two budgets, three budgets, or even four
budgets the infrastructure deficit that has been left in this country over a long
period of time," Mr Swan said.
He said the investment was necessary to take full advantage of the global economic
recovery.
"That is why the government is investing in our international gateways," he said.
Australia's next generation of prosperity must be different from the last one, Mr
Swan said, adding it needed to be more sustainable.
"It needs to be unshackled from capacity constraints that hold us back. It needs to
rely on a more productive economy."
Access Economics director Chris Richardson told the conference even more money could
have been made during the resources boom had ships not had to queue up at
Australia's ports.
He said while the federal government's actions were to be supported, they were not
the biggest player in infrastructure investment, and that the states needed to play
their part.
But the independent forecaster said Australia is "better off than most", given its
healthy banking system and that the "stimulus packages out of Canberra and interest
rate cuts out of the Reserve Bank came early".
"Current conditions will not last," Mr Richardson said.
"Australia has the best long run prospects for any rich nation in the world. We can
continue to sell into fast growing nations for decades."
He said global share markets are looking ahead to the economic recovery.
"And the most encouraging sign for me, in the last three weeks in particular, is
that credit markets have started to follow suit."
Still, the government's deficit and debt strategies continued to face heated
discussion during a raucous parliamentary question time that saw three coalition
members ejected.
Mr Rudd, in response to a question from Opposition Leader Malcolm Turnbull, said the
nation's debt burden will be repaid by 2022.
Mr Rudd had told parliament on Monday that by 2020 there would be a net debt
liability of $75 billion or 3.7 per cent of gross domestic product, after peaking at
13.8 per cent of GDP in 2013.
Mr Turnbull asked on Tuesday when that debt would be paid off.
"I am advised by the Treasury within about two years of that time," Mr Rudd said.
Opposition treasury spokesman Joe Hockey then asked Mr Swan how this would be
achieved, given it would take eight straight years of budget surpluses above 2.0 per
cent of GDP.
Mr Swan said the government's objectives were "entirely reasonable and achievable".
"This government has been entirely responsible in supporting the economy in our hour
of need," he said.
Mr Hockey noted the budget papers show that since 1970 on only three occasions had
there been a surplus of two per cent or more of GDP.