Business body says Government should bag billions from building
A report commissioned by the Business Council of Australia says the Federal Government must create a way to funnel trillions of dollars into infrastructure.
Those trillions can reportedly come from untapped private capital, according to the country’s leading business group lobbyists.
“There is ample private capital available to meet our infrastructure investment needs, including a pool of superannuation funds expected to total $6 trillion by 2037,” BCA chief Jennifer Westacott said in a statement late last week.
“This might require governments to provide a stream of funding, or share in the early stage risks, with government’s optimal role decided on a case-by-case basis.”
The business group’s latest report has found eight avenues for reform, including backing the recent plan for the federal government to recycle funds from asset sales back into infrastructure spending, handing billions of dollars to state governments.
The comments and report were made in response to an issues paper by the Productivity Commission, which will investigate the provision, funding, financing and costs of public infrastructure projects, including roads, bridges, railways, airports, ports, telecommunication networks and electricity and water utilities.
Electrical Trades Union national secretary Allen Hicks said that funding and infrastructure development should think about the future beyond the middle-term.
“Sure, a state government can pocket a one-off windfall through selling, but that would be wiped out within a decade once you take foregone income into account,” he said.
The BCA’s full report and position are available in PDF form, here.