Interesting that the investment in major projects is up on last year.

http://www.heraldsun.news.com.au/common/story_page/0,5478,11244648%255E664,00.html
Boom times grip nation01nov04

AUSTRALIA'S multi-billion dollar construction boom, fuelled by massive resource and infrastructure projects, shows little sign of slowing according to a report released yesterday.

The Delta Electricity & Access Economics report found Australian companies committed to construction projects worth $126.3 billion in the three months to the end of September, up 15.2 per cent on the same time a year ago.
"Investor confidence remains high and the value of projects continues to rise," the report said.

Several major resource projects are behind the boom, including the $1 billion Woodside/Origin Otway Basin gas project and Alcan's $1.85 billion alumina refinery expansion at Gove in the Northern Territory.

Resource companies were also ramping up their construction activities amid a boom in demand for commodities. This has sparked a need for several transport companies to pour money into expanding port facilities.









Federal and state governments had also lined up various road projects, including Victoria's $2.6 billion Mitcham to Frankston link, while Qantas and Virgin Blue had committed to multi-billion dollar upgrades of their aircraft fleets.

The report said plans for office building, retail outlet and hotel construction projects were also bubbling along, as were others for electricity and water facilities.

However it added that investment in social infrastructure projects such as cultural and recreational facilities was levelling out.

On a state-by-state basis, NSW led the way in the construction boom while investment in Victorian projects was also strong.
But the report warned both states faced risks from softening in the commercial building and manufacturing markets.

Wider risks to the current boom included higher oil prices, which could cause some companies to scale back investments on projects to cover higher transport costs.

AAP

Building approvals on the rise
New building approvals data shows the Western Australian economy is growing stronger.

Treasurer Eric Ripper said the approvals for the September quarter 2004 were 9.7 per cent higher than the same time last year.

The building approvals were also 75 per cent higher than the September quarter 2000, when the State Liberals were last in power.

Mr Ripper said the boost was partly a result of the Government's tax relief for homebuyers.

"WA was the only State to experience an increase in building approvals over the September quarter," he said.

"The Gallop Government's assistance to homebuyers, announced in the May Budget, has given the housing market a shot in the arm.

"But we cannot take the strength of the housing market for granted, which is why further stamp duty relief was announced by the Premier last week to keep the economy growing and create more jobs."

The Treasurer said the Government's economic policies, strong financial management and targeted homebuyer assistance had given Western Australians the confidence to take the plunge into the housing market.

"Not once in eight years in office did the Liberals cut stamp duty rates," he said.

"They delivered five Budget deficits, presided over a shrinking economy and put up taxes five times. Their performance undermined public confidence."

Premier Geoff Gallop last week announced $510million in tax concessions for first homebuyers, businesses and first-time property investors.

Mr Ripper said WA now had the most generous stamp duty concessions for first homebuyers in Australia.

"Not only do we now have lower stamp duty than most other States, but we also have lower house prices - making WA a much more affordable place to live in," he said.