CEDA is today calling for Australia's federal and state governments to accept accountability for repairing Australia's ailing infrastructure.
CEDA's call comes as the organisation releases its Growth Report Number 54, Infrastructure: Getting on with the job. The report looks at Australia’s "hard" economic infrastructure - roads, railways, electric power, sea and air ports and other investments that enable the activities of communities and businesses.
The report starts by detailing the infrastructure backlog, now estimated at no less than $25 billion worth of projects. It says that with the needed investment in place, Australia's economic activity as measured by GDP (gross domestic product) would be 0.8 per cent higher each year. That translates to $6 billion a year - or an average $300 per Australian.
The report goes on to argue that there are adequate funds available to fix the backlog. The missing element, it says, is commitment from federal and state governments to sort out between themselves how to fix the problem.
Many infrastructure issues (electricity, gas, roads, rail and water among them) cross state borders, the report says, and national leadership can produce large benefits. But most of the burden of implementing infrastructure reforms lies with the states. So co-operation between the two levels of government is vital.
"We have a huge backlog of infrastructure projects needing to be built and maintained," says Mr Edwards. "At the same time, we have private investors ready to take a risk on infrastructure, and governments with the capacity to fund infrastructure through debt."
"What our governments need to do is find ways to bring the money and the projects together."
"CEDA believes the federal and state governments would do well to set clear targets and responsibilities for improving infrastructure. That would make them clearly accountable for getting results."
"CEDA does not want anyone to apportion blame; we aim to point the way to solutions."
The report notes that Australia has a great deal of private-sector infrastructure expertise which can be applied to solving the infrastructure backlog. It also notes that Australian governments have begun to address the problems, while arguing that they need to go further.
To produce the report, CEDA worked with seven private-sector interest groups, who have commissioned work from policy consultants including Econtech and The Allen Consulting Group.
The report includes a paper from former senior public servant Dr Vince FitzGerald, of The Allen Consulting Group, who says current co-ordination between government is "a very mixed picture". Dr FitzGerald urges governments to clarify their responsibilities for infrastructure. The right roles will differ for each type of infrastructure, he says.
A separate paper in the report, by former Treasury secretary Dr Tony Cole, calls for Australian governments to be more willing to finance needed and economically justifiable infrastructure with debt, rather than committing themselves to run budget surpluses at all times.
CEDA's Growth Report Number 54, Infrastructure: Getting on with the job, was released at 10.00 am this morning (14 April 2005) at CEDA's national infrastructure conference in Brisbane.
A PDF-format copy of CEDA's Growth Number 54 Infrastructure: Getting on with the job is attached to this release.
Graphics from the report
These and other graphics are available in the body of the report.
Hard infrastructure's share: Public fixed capital expenditure as a share of GDP
Who is responsible for what? Current responsibilities for transport infrastructure planning and funding
Private funds swell: The growth of superannuation funds
For further information please contact:
John Harris
Corporate Relations Director
Phone 03 9652 8415
Email info@ceda.com.au
Printed from the CEDA Web site at http://ceda.com.au. Copyright 1999-2009 CEDA
