Infrastructure Reform

14/04/11

Australia needs a rational coherent plan for the delivery of our nation’s long-term infrastructure needs.

In this area, the Coalition will deliver policy that goes beyond short-term politics and will serve the interests of all Australians, especially future generations.

The current Government has spent $2.5 billion installing and removing combustible roof batts, $16 billion on overpriced school halls and is now spending more than $50 billion on Australia’s largest ever infrastructure project without a cost-benefit study.

It is time to end the pork barrelling and decisions that are driven by short-term political considerations.

The Coalition supports Infrastructure Australia (IA) and in government will strengthen its role, creating a more transparent, accountable and effective adviser on infrastructure projects.

We’ll keep it, we’ll fund it and we’ll listen to it because important infrastructure decisions should be made on the basis of rational planning and not short-term political pork barrelling.

The Coalition will reform and improve the delivery of infrastructure in Australia through the following measures:

1. 1. The Coalition will ensure that Infrastructure Australia has guaranteed ongoing funding. Funding for Infrastructure Australia expires at the end of this financial year. The Coalition’s commitment means that IA will be provided with the resources necessary for it to do its job properly.
   
   
2. 2. The Coalition will retain Sir Rod Eddington as the chairman of Infrastructure Australia.
   
   
3. 3. The Coalition will require that all Commonwealth-funded infrastructure projects worth more than $100 million have undergone a cost-benefit analysis by Infrastructure Australia.
   
   
4. 4. Infrastructure Australia will be required to publish justifications for its project recommendations, including the net present value of each recommended project.
   
   
5. 5. We will task Infrastructure Australia with developing a rolling 15 year infrastructure plan for Australia, with this plan being revised every 5 years. This will provide certainty for industry as to what infrastructure projects will be pursued by government and in what order. IA will be required to clearly specify infrastructure priorities at the national and state levels, based on a rigorous and transparent assessment of competing infrastructure projects proposed by the states.
   
   
6. 6. We remain committed to our Real Action on Infrastructure election policy which included a commitment to task the Office of Financial Management with examining an Infrastructure Partnership Bonds Scheme in conjunction with advice from the market.
   

Every Australian sitting in a traffic jam or waiting for a train that doesn’t arrive knows that we are a first world country that lacks first world infrastructure.

Greater accountability and transparency will ensure that much-needed infrastructure projects are selected and delivered in a way that improves the living standards of all Australians.