The Coalition’s plan for real action on INFRASTRUCTURE
18-August-2010
Investment in the nation’s infrastructure is crucial to the living standards of all Australians.
The Coalition has a strong record of infrastructure investment. In constant 2007 dollar terms infrastructure spending in Australia increased from $21 billion in 1996 to over $56 billion at the end of 2007. Infrastructure spending under the Coalition increased from 2.95 percent of GDP in 1996 to 5.43 percent of GDP in 2007.1
A Coalition Government will set clear priorities for future infrastructure projects. It will establish transparent, rigorous and accountable infrastructure planning arrangements.
By some estimates, there is a $700 billion shortfall in Australia’s infrastructure needs.2 At the same time, Labor’s reckless and wasteful spending means there are less public funds available to meet these requirements.
Given these circumstances the Coalition will choose projects that yield the highest net benefits and establish effective partnerships with the private sector to fund them.
The Coalition has a plan for real action on infrastructure, including:
1. Planning for Australia’s future infrastructure needs
A Coalition Government will work with local and state governments to develop detailed, long-term plans, which catalogue future infrastructure demands and the ways in which these will be met.
2. Strengthening Infrastructure Australia
The Coalition supports the role of Infrastructure Australia and will strengthen its role, creating a more transparent, accountable and effective adviser on infrastructure projects and procurement practices.
3. An Infrastructure Partnerships Bonds Scheme
To begin to address the infrastructure deficit, the Coalition will task the Office of Financial Management with examining an Infrastructure Partnership Bonds Scheme in conjunction with advice from the market.
4. Restarting infrastructure reform
A Coalition Government will focus on better utilisation of Australia’s existing infrastructure stock. Pushing ahead with dormant reforms, in the energy and transport sectors, will reduce the pressure on utility prices and family budgets.
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