FED:Invest in infrastructure to offset mining boom pain:BIS

AAP General News (Australia)
08-31-2011
FED:Invest in infrastructure to offset mining boom pain:BIS

Economic forecaster BIS Shrapnel says investment in roads, rail, ports and education
is necessary to prepare Australia for the rebalancing of the economy from the resources
boom.

In its latest report, Long Term Forecasts 2011-2026, it says the nation requires a
boost in infrastructure to help sectors squeezed by the mining boom.

The forecast comes after Reserve Bank governor GLENN STEVENS said the mining boom has
quite some way to run yet.

But BIS Shrapnel says Australia needs to prepare for the end of the resources boom,
while businesses should not expect any major protection or government help and the forecaster
also believes the proposed taxes on carbon and mining will have a minimal impact on the
economy.

AAP RTV el/cb/wz

KEYWORD: STRUCTURAL (CANBERRA)

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