The chairman of the Future Fund, David Murray has told the ABC, that the global credit crunch will force the Federal Government to rethink the three infrastructure funds it outlined in the May budget.

In the May budget, the Government plans to create a $20 billion Building Australia fund, an education investment fund ($11 billion), and a health and hospitals fund ($10 billion).

Mr Murray’s view sems to contradict a statement from the Prime Minister’s office this month, where plans were revealed to accelerate the implementation of the Government’s three nation building funds.

“The Rudd Government will fast track its nation-building agenda to help shield Australians from the global financial crisis,” the statement says.

“Fast-tracking the nation-building agenda can secure economic activity in the short term and expand growth potential in the medium to long term.

Mr Murray also told the ABC that the infrastructure funds were to be funded from this year’s budget surplus, plans that will have to change.

"I don’t know the timing but on a cyclical basis there’s no way those sort of surpluses will be available to any Australian government," he told the ABC.

"The currency has fallen, commodity prices have fallen, the global economy is contracting quite noticeably.
"Asia is not decoupled from that. And so on that basis it will be far more difficult to manage the Budget than it has been."