Newer, better and more cost-effective infrastructure that meets community needs and removes productivity bottlenecks should be a national priority. We must improve access to financing and promote private sector involvement in the planning, funding, construction and operation of infrastructure assets.
- Improve national productivity.
- Base decisions on rigorous cost-benefit analysis
- Use the private sector to meeting infrastructure needs.
- Achieve greater coordination in infrastructure regulation and planning.
- More equitably and sustainably allocate risk.
- Privatisation: Privatise where possible remaining public infrastructure assets to improve productivity and provide funds for investment in new projects.
- User-charging: User-charging should be the preferred funding option for infrastructure provision. Where there is currently no functioning market for a particular type of infrastructure, governments should establish a regulatory pricing and service regime so that user-charging can be applied.
- National framework: Federal, state and territory governments should seek agreement through the Council of Australian Governments (COAG) on a process to develop a national user-charging framework for large-scale road projects.
- Structured investments: To increase the attractiveness of infrastructure investment to the private sector, governments should consider establishing quarantined structured investment vehicles, with all borrowings hypothecated to particular projects.
- Infrastructure Australia: Support the role of Infrastructure Australia and improve its effectiveness. This should include a binding role in project selection as a condition of incentive payments made to states and territories through the Asset Recycling Fund.