This was published 7 years ago
Time to get it right on infrastructure
By Adrian Harrington
Opinion
Sydney and Melbourne are buckling under the pressure of poor infrastructure and housing programs that are quite frankly, not keeping pace with strong population growth.
Sydney needs investment.Credit: Kirk Gilmour
Sydney's population has soared past the 5 million mark, growing by 82,797 people or 1.7 per cent in 2105/16.
Melbourne is now officially Australia's fastest growing city. It grew by 107,770 people or 2.4 per cent in 2015/16 to take its population to 4.64 million. Four of the five areas with the largest absolute growth were in Melbourne's outer suburbs – South Morang (4971) in the north east, Cranbourne East (4956) in the south east, Craigieburn-Mickleham (4491) in the north, and Point Cook (3512) in the west. Surprisingly, as most people may have assumed, it wasn't in the inner areas given the apartment boom currently underway in that town.
Melbourne is now officially Australia's fastest growing city.Credit: Luis Enrique Ascui
Sydney's growth appears more evenly distributed across the metropolitan area. Only two areas make the top 10: Cobbity-Leppington (3338) in the south-west coming in at 7th spot and Riverstone-Marsden Park (3146) in the north-west coming in at 9th spot.
Melbourne and Sydney's population growth is being driven by strong rates of natural increase (births exceeding deaths) and net overseas migration.
Melbourne is also benefiting from positive net interstate migration. In other words, Melbourne is actually gaining more people from interstate than it is losing. A marked turnaround from the past 30 years, when there was a continued exodus of people year after year moving interstate.
Our cities are ill-prepared. It is fair to say that the recent strong population growth has taken planners and bureaucrats by surprise, not to mention successive federal, state and local governments who have taken a cavalier approach to infrastructure delivery – lots of rhetoric and short- rather than long-term solutions.
Imagine if today's planners and bureaucrats were in charge of building the Sydney Harbour Bridge: it would be two lanes wide and half the height!
With the population in 20 years' time forecast to hit 6.4 million in Sydney and 6.3 million in Melbourne, let's hope that not only our population forecasting is up to scratch, but we put in place infrastructure plans that will benefit generations well into the future.
Tuesday's federal budget looks set to make infrastructure a centrepiece.
The Treasurer recently acknowledged quite rightly that while rates are low, to lock in longer term financing and invest in major growth producing infrastructure assets such as transport and energy infrastructure makes total sense.
Whilst our cities currently rank highly on global liveability scores, that may not, unfortunately be the case in the years ahead if our infrastructure cannot support productive, sustainable and liveable outcomes.
Adrian Harrington is the Head of Funds Management at Folkestone