1. Government and Infrastructure Investment

All levels of government face a challenge in funding infrastructure projects.

Queensland Local Government faces revenue constraints and restrictions on borrowing limiting its capacity to deliver key infrastructure projects.

The Queensland Government has recognised the infrastructure lag and has allocated a record $17 billion and over $11.7 billion for the SEQ region.

2. Economic Activity

The SEQ region is facing the following issues:

a) Congestion

The ability of employees to access work and the efficient movement of freight within reasonable transport times is critical to the economic success of the region.

b) Planning for Business Growth

Securing land for business growth in the forecast growth locations will deliver the strongest economic outcomes for the whole community.

c) Funding Infrastructure

While future economic returns will more than cover the costs today; we need financial mechanisms to bring forward investment. The following scenarios indicate that in the next 20 years the SEQ economy will have:

• The potential to continue to outpace most other Australian regions.
• A Gross Regional Product that is forecast to grow from an estimated $90 billion in 2006 to $204 billion in 2026; or growth of $114 billion or 127 per cent.
• Out of region exports, including exports from SEQ to the rest of Queensland and the rest of Australia, forecast to grow from $53 billion in 2006 to $119 billion in 2026; or growth of $66 billion or 123 per cent.
• Total employment forecast to grow from 1,299,000 in 2006 to 2,085,923 in 2026. This represents a projected increase of 786,288 jobs or 60 per cent over the period.

3. Population

One in Seven Australians reside in South East Queensland.

The SEQ region is the fastest growing Local Government region in Australia.

The region is drawing residents from across Australia due to employment and lifestyle factors.

Rate of growth is a challenge for the region.

Since the Council of Mayors (SEQ) initial submission the Department of Planning Information and Forecasting Unit (PIFU) population data has been published indicating that by 2031 the SEQ population could range from 4.1 to 5 million residents.

Figure 1. SEQ Population Projections 2006-2031 

Source: Department of Infrastructure and Planning 2008a, ‘Population Projections’, Department of Planning Information and Forecasting Unit.

The data outlined in Figure 1 compares with earlier population forecasts as outlined in the initial Council of Mayors (SEQ) submission which showed that by 2026 the SEQ population estimate was approximately 3.8 million residents.  The latest forecasts show higher than anticipated growth to 2026 for example; with the revised figures in the medium and high series data indicating growth of 400,000 and 800,000 residents respectively.

This continued growth out to 2031 and greater than anticipated growth to 2026 further supports the case for greater infrastructure investment in the SEQ region.

4. Congestion

In terms of the economic impact the cost of congestion to Brisbane for example is estimated at $1.2 billion in 2005 or $670 per person.  This is significantly higher than the cost to Australia as a whole of $460 per person.  Moreover, as incomes per person increase:

• Personal car travel per person also increases.
• More car travel is attractive as incomes rise.
• Traffic continues to respond in a one-to-one relationship to population growth.