Infrastructure Australia Approved

25 Mar 08

Parliament has on Thursday approved the establishment of Infrastructure Australia a new national body that will develop a strategic blueprint for unlocking infrastructure bottlenecks and modernising the nation's transport, water, energy and communication assets.

The establishment of Infrastructure Australia confirms and builds upon Labor's tradition as a nation building party and delivers on an election pledge.

With Thursday's successful passage of the Infrastructure Australia legislation through the Parliament and our earlier confirmation that Sir Rod Eddington will become its inaugural chair, the Rudd Labor Government is get on with the job of:

• Tackling inflation and boosting productivity;
• Helping our manufactures, farmers and miners get their goods to market as quickly and cheaply as possible;
• Making sure working families no longer have to spend more time commuting to and from work than they do with their children; and
• Ensure all Australians not matter where they live can continue to drink clean water from their kitchen taps and have their lights comes on when they flick the switch.

According to a 2004 estimate by the Australian Council for Infrastructure Development, a lack of investment in public infrastructure over many years is now costing the Australian economy some $6.4 billion a year in lost production.

The legislation establishes the Infrastructure Australia Council as a statutory independent body with 12 experienced members to be drawn from industry and government.

The remaining eleven members of the Council will be announced in coming weeks.

Once that has occurred, Infrastructure Australia will:

• Undertake a National Infrastructure Audit of nationally significant infrastructure, including in the areas of water, energy, transport and communications;
• Compile a Infrastructure Priority List for presentation to the March 2009 meeting of COAG a list that will guide future public and private investment decisions; and
• Develop by year's end nationally consistent guidelines for public private partnerships.

Infrastructure Australia will also provide advice on regulatory reforms which will help improve the use of existing infrastructure, streamline planning approvals and unlock billions of dollars of new investment.

The Rudd Labor Government is determined to bring a fresh approach to the deliver of public infrastructure: replacing neglect, 'buck passing' and 'pork-barrelling' with long term planning where governments predict and anticipate infrastructure needs and demands, not merely reacts to them.