Meeting in Perth on 21 January, the Federal Cabinet approved the establishment of Infrastructure Australia. Legislation establishing Infrastructure Australia will be introduced during the first session of the new Parliament.
Described as a key driver in the Rudd Government’s plan to fight inflation, Infrastructure Australia aims to boost the economy’s productive capacity by unlocking infrastructure bottlenecks such as clogged ports and congested roads.
A joint media statement from the Prime
Minister Kevin Rudd and the Minister for Infrastructure, Transport, Regional Development and Local Government, Anthony Albanese, states that, “Infrastructure Australia represents a dramatic shift in national economic policy, bringing national leadership to infrastructure development for the first time since Federation.
“The Rudd Government will develop a strategic blueprint for Australia’s infrastructure needs and ensure future projects are determined by economic, social, and environmental needs not short term political interests.”
Infrastructure Australia will be a statutory advisory council with 12 members drawn from industry, government and Local Government
Infrastructure Australia will:
- conduct audits to determine the adequacy,
capacity and condition of nationally
significant infrastructure, including transport,
water, communications and energy - develop an infrastructure priority list to
guide billions of dollars of public and private
investment - provide advice to governments, investors and
owners of infrastructure on regulatory reforms
that can improve the utilisation of Australia’s
infrastructure networks.
Its immediate task will be to audit the nation’s infrastructure shortfalls and produce an Infrastructure Priority List to guide billions of dollars of public and private investment to be completed within 12 months.
In developing this list, Infrastructure Australia will assess projects in terms of specific goals, such as:
- meeting water and energy needs
- saving time for commuters battling traffic
congestion in our major cities - efficiently moving freight from regional areas to our ports
- meeting the challenge of climate change.
Infrastructure Australia will also review the extent to which governments can better facilitate infrastructure investment, including through public private partnerships as well as better planning and approval processes.
The joint press release further states, “the task ahead for Infrastructure Australia is considerable. The OECD ranks Australia 20th out of 25 countries when it comes to investment in public infrastructure as a proportion of national income.”
