Today's decision by the State Government to spend $1.6 billion on vital social infrastructure is a major step towards improving the vibrancy of Perth and promoting the city as a dynamic international business capital.

The state's peak business organisation, the Chamber of Commerce and Industry of Western Australia, congratulates the Carpenter Government on its decision to build a new 60 thousand seat multi-purpose sports stadium in Subiaco and museum in East Perth.

As well as equipping the city to meet the needs of its expanding community, social infrastructure projects of this kind will help propel Perth and Western Australia onto the international stage, and send the message that the city is a vibrant and dynamic place to live or visit.

CCI has been a vocal advocate of the need to commit to these projects, which were identified as priorities for the Government in its recently released pre-budget submission.

However, these are big ticket items which will entail higher government debt levels. Business will be looking to the Government to maintain debt within targeted levels in order to protect the state's triple-A credit rating.

Statement by CCI Chief Economist John Nicolaou