Home' Future Building: The Australian Infrastructure Review : Volume 5 Number 1 Contents futurebuilding 9
Volume 5 Number 1
The Hon Warren Truss MP
The Government's response to the Productivity
Commission will take into account consultations
with industry, and, importantly, will acknowledge
that many of these reforms require implementation
by other jurisdictions.
We are working closely with the Productivity
Commission to put in place a suite of reforms that
will ensure better value for money and reduced
time frames for the delivery of infrastructure.
Other strategies to drive longer-term reform
include the Taxation Review, which is underway,
and the Federation White Paper, which will
In our rst year in government, through
negotiations with the states, we have already
leveraged new streams of private sector investment to
get new projects underway sooner.
While the private sector has a large pool of
capital available, and is willing to invest in the right
infrastructure projects, there has been a limited
appetite to invest in green eld projects with unproven
That is the reason that the Federal Government has
been working with state and territory governments and
the private sector to investigate ways of appropriately
balancing or sharing risks with the private sector, to
see new projects brought to market.
The Asset Recycling Initiative will support the
transfer of mature public infrastructure assets to the
private sector by offering the states 15 per cent on
the sale price, so long as the proceeds are invested in
new, productive infrastructure.
This initiative will encourage the private sector and
superannuation funds to partner with governments in
building and delivering vital transport infrastructure,
including much-needed public transport investment.
Another key priority is reducing the regulatory
burden imposed on the Australian economy by
$1 billion each year to increase Australia's
productivity and international competitiveness.
This recognises that capital is mobile, and that
While the private sector has
a large pool of capital available,
and is willing to invest in the
right infrastructure projects,
there has been a limited
appetite to invest in green eld
projects with unproven
Figure 1: Asset Recycling Initiative
Source: 2014-15 Federal Budget.
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