Tasmanian private sector drives investment growth

Sean Ford

Education, accommodation, entertainment, recreation fire up.

Private sector spending by various Tasmanian industries has been driving growth in Tasmania's commercial construction sector.

That is according to Deloitte Access Economics' latest Investment Monitor report, which said commercial construction was benefiting from a record pipeline of infrastructure investment.

"Around $350 million will be spent on hospitals, $195 million on schools and $150 million on tourism infrastructure over the next four years," the report said.

"But it is private investment that is leading growth in work done, with notable gains in the education, accommodation and entertainment and recreation sectors."

It said planned work continued to be led by UTAS' proposed $600 million Hobart campus development and its $344 million spend on new campuses in Burnie and Launceston.

"Looking ahead, the value of work commenced remained flat over the past year, while the value of building approved grew at double digit rates," it said.

Deloitte said activity in Tasmania's engineering construction sector looked set to slow after strong growth in 2019.

"The value of work done grew by one fifth over the past year, supported by activity in the electricity and transport sectors," it said.

"But the value of work commenced fell by almost one half over the same period, while gains in work yet to be done were the weakest seen since early 2018."

It said construction was complete at the $300 million Cattle Hill Wind Farm in the Central Highlands, and continued at the $280 million Granville Harbour Wind Farm on the West Coast.

"The pipeline includes the proposed Robbins Island wind farm, as well as a number of publicly funded infrastructure projects such as the $576 million Bridgewater Bridge replacement and the $163 million upgrade of the Hobart to Sorell road corridor," it said.

Deloitte's database listed $8.337 billion worth of Tasmanian investment projects as of December.

That was a 5.8 per cent increase compared to a year earlier, but had also dropped by 4.2 per cent since September.