Use COVID-19 to clear infrastructure backlog

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A new strategy to boost economic activity in Melbourne will be submitted for approval under the federal government’s ‘City Deal’ program. The blueprint outlines plans for 66 major projects in Melbourne’s north and west, which are forecast to record a surge in population growth over the next two decades. The projects, which include a second Melbourne Metro tunnel and a new hospital in the outer-northern suburbs, are expected to create some 300,000 jobs in a region that has been hard hit by the COVID-19 pandemic:

Launched today by former Victorian premiers Steve Bracks and John Brumby and Federal Senate president Scott Ryan, the bipartisan strategy has the unprecedented backing of all 13 councils across an area that will be home to three million people by 2040…

With tens of thousands of people unemployed in Melbourne’s north and west as a result of the coronavirus, Mr Brumby said the City Deal identified shovel ready “stimulus” projects for prioritisation and a longer-term recovery strategy…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.