Australia's national government and six states agreed to rush through spending on €14.5 billion worth of construction projects yesterday, as part of a new stimulus package designed to head off recession.
Prime Minister Kevin Rudd signed the deal with leaders of Australia's six states and two territories, declaring the programme to be the biggest level of nation-building since the post-World War II reconstruction. The move came as parliament's upper house Senate voted to delay until next week its support for the government's overall €21 billion stimulus package, including cash payments to workers and families, upsetting Mr Rudd's timetable to have the package in place by today.
"It is critical that we move heaven and earth to make sure these payments reach families as quickly as possible," remarked Mr Rudd.
The stimulus bill in the has also run into a political hurdle, with the US Senate demanding amendments to President Barack Obama's package, worth nearly €700 billion. The Australian government announced its stimulus package on Tuesday, including €6.3 billion in cash payments to low and mid-income workers and families, and the €14.5 billion for infrastructure and building projects in schools.
The centre-left government wants the laws passed by today to ensure cash payments of €477 to nine million Australians can be processed and paid by March 11.
Parliament's lower House of Representatives passed the six stimulus package bills in the early hours on Thursday after an all-night sitting.
But the Senate, where the Greens and two independents hold the key swing votes, opted to send the laws to a two-day inquiry where they plan to quiz Treasury and welfare officials.
The bills include new laws to lift the €38 billion limit on national government borrowing, giving the Treasurer authority to borrow up to €100 billion in special circumstances to fund government deficits.
Mr Rudd said it was crucial for national politicians and those in the states to make sure the infrastructure money flowed through to projects as soon as possible.
"We are in a national economic emergency, and we are going to all have to roll our sleeves up and take a direct, personal and rolling interest in the implementation of this," Mr Rudd told the state leaders.