Major infrastructure needs national funding and state implementation

03 July 2013

The release of the National Infrastructure Plan by Infrastructure Australia implies that the Federal Government should lead with major projects but it is the states that should be the implementers, says the Urban Taskforce.

There are many fine actions proposed in the National Infrastructure Plan including incentives for higher residential densities and consolidating local governments in cities but ultimately it is the State Governments that need to drive these actions, says Urban Taskforce CEO, Chris Johnson.

 

With the coming federal election getting nearer, the responsibility for big infrastructure projects needs to be debated and the appropriate roles of the three levels of government determined. We agree with the report that urban local governments need to be consolidated into bigger regional groupings but it is the State Government that should ensure that major infrastructure projects are drivers of urban renewal.

 

The states are responsible for road traffic, public transport and strategic planning and they need to be responsible for ensuring that the maximum value comes from infrastructure expenditure as a generator of urban renewal.

 

The statements about asset recycling to the private sector to free up capital for new infrastructure projects are strongly supported as is the establishment of a single National Infrastructure Fund. It will be how national funds are distributed that determines the effectiveness of the fund and the degree to which all governments use innovative methods to maximise private sector involvement and user pays principles.

 

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