Infrastructure Australia – preliminary audit

Infrastructure Australia has completed its audit of the nation’s vital economic assets, and a list of priority infrastructure proposals.

Infrastructure Minister Albanese received the report in December from the chair, Sir Rod Eddington – 94 infrastructure proposals were identified from 1,000+ put forward by state/territory governments, councils, business groups and the public. A final Priority List is due by March 2009. The analysis concludes that future public and private investment needs to be directed towards:

1.       A more competitive broadband system;

2.       Extending the national energy grids – for power & gas markets, renewables;

3.       Port productivity and associated land transport links;

4.       Lifting the amount of rail freight;

5.       Preparing for the impact of climate change on water supplies;

6.       Expanding public transport services within cities;

7.       Improving services to Indigenous communities.

The Minister says this is ‘an historic opportunity for the Australian Government to play a much more hands on role in infrastructure investment’.

We totally agree, but foresee huge problems for the Government in managing expectations. As one contact within the federal bureaucracy commented ‘some state governments have put forward some real try-ons’ – the inference being that the proposals would only be viable with soft money from the feds’ Future Fund.

We foresee major clashes on this issue, and the current economic climate will ensure no major funding decisions in the short term. The Very Fast Train (Sydney-Canberra-Melbourne) has been dusted off again. Wise heads in Canberra say this project is at least 30 years away.  Next month – our analysis of the best of the 94 proposals.

Go to http://www.infrastructureaustralia.gov.au/publications.aspx