Read The Times Australia

Daily Bulletin

Government response to Infrastructure Australia offers no grounds for optimism

  • Written by: Marion Terrill, Transport Program Director, Grattan Institute
image

How wonderful, you might think, that the Australian government is in furious agreement with its independent infrastructure advisory body on how to tackle the country’s present and looming infrastructure challenges.

Of Infrastructure Australia’s 78 recommendations in its Infrastructure Plan, the federal government opposes only three outright. But, in reality, the government has ducked some hard choices by either supporting “in principle” or supporting with caveats. This means it can’t be criticised for being hostile to a good idea, but at the same time it doesn’t actually have to do anything.

Ducking hard choices means avoiding change that could make a real improvement to the effectiveness of Australia’s infrastructure.

A transparent and rigorous process is perhaps the most critical element underpinning an effective infrastructure investment program.

Infrastructure Australia believes this, and so does the Australian government. That’s why the Infrastructure Plan recommends publication of full project business cases, including supporting data and analysis, and preparation and publication of robust post-completion reviews once a project has been delivered.

How disappointing, then, that the government is silent on the first recommendation and passes the buck on the second.

A need to scrutinise investment decisions

Failing to publish business cases and their supporting analysis and assumptions means the public, experts and the media are unable to scrutinise government decisions. This is no coincidence: politicians misuse public money for electoral gain.

Over the past ten years, governments have spent more per person in New South Wales and Queensland, where federal elections are largely won and lost, than in less electorally sensitive states. They have also spent disproportionately outside the capital cities – even though most GDP, GDP growth and population growth is generated in the big cities.

This behaviour is still going on. In the 2016 federal election campaign, all major parties committed most of their transport spending promises to proposals that Infrastructure Australia had yet to assess.

Only 15% of the Coalition’s spending promises were on projects with a favourable assessment from Infrastructure Australia. For Labor, it was a mere 3%. For the Greens, 0%.

So, even though the major parties have all made serious promises about how important it is to listen to the independent advisory body, their behaviour shows they do not do this.

Taking responsibility for taxpayer dollars

The government’s evasive response on post-completion reviews passes the buck.

Despite supporting the recommendation to make project funding contingent upon post-completion reviews, the government says this should be the responsibility of the asset owner – usually a state government. At the same time, the federal government insists it is:

… no longer an ATM, simply handing over grants to state and territory governments for infrastructure with little involvement in how the money is spent.

Given the billions of dollars it spends, the federal government should take responsibility for auditing the effectiveness of the funds it provides. It should also demonstrate leadership by coordinating the publication of post-completion reviews from the asset owners.

A welcome step up in reporting practice

In welcome and remarkable contrast, the government has committed to transparent disclosure of infrastructure “community service obligations”.

This appears to mean the government will publish the underlying rationale and community impact of infrastructure investments it would not undertake if commercial considerations applied.

If the government is serious about supporting this recommendation, it will be a major step up in reporting practice.

It means if the government decides to fund a highway or railway line that doesn’t stack up economically, it will identify the social purpose – for example, connecting a rural community to a regional centre – and fund it explicitly as a community service obligation. It will be intriguing to see how this is implemented, and just how long this list could be.

Community service obligations are the real reason for much investment in rural and regional areas, since many infrastructure projects in the bush just don’t make sense economically. But governments usually pretend they are building in the regions to create jobs and economic opportunity.

Making hard choices with finite funds

Building in the bush on the pretext of creating jobs is exactly what politicians of all stripes frequently propose.

Not only does the government plan to increase investment in the larger capital cities, but also in the smaller capital cities, the outskirts of cities and, in principle, both the fast-growing and economically important regional centres and the smaller or slower-growing regional centres. In other words, the government plans to spend more everywhere.

This may well be what the government actually does. However, there is a world of difference between investment in the effective functioning of the economic powerhouses that are the big four capital cities, and spending in depressed regional areas in the hope that this might prop them up.

In fact, the government goes so far as to support the notion that governments should try to get people to move to smaller centres. But governments have been trying for years to get economic water to flow uphill, and we are poorer for it.

Trying to stop people from moving to where they want to live and work, or using the infrastructure pipeline as a tool for redistribution, is inefficient, opaque and runs counter to Infrastructure Australia’s role to identify and promote nationally significant infrastructure.

Rural and regional Australians will applaud the commitment to keep spending in their areas. And why wouldn’t they?

When there is very little transparency about the costs and benefits that underpin decisions to invest, there is a great payoff to lobbying for your particular area. The winners are happy, while it’s hard for everyone else to see that the cost of this trade-off is more congestion in fast-growing cities.

For as long as the Australian government avoids the responsibility of rigorous, transparent processes, there is no reason to expect any real discipline in how it spends this year’s A$6 billion or next year’s A$9 billion on transport infrastructure.

The government’s response to the Australian Infrastructure Plan provides no real grounds for optimism. Expect more regional boondoggles until we can tie the government to the mast of disciplined investment.

Authors: Marion Terrill, Transport Program Director, Grattan Institute

Read more http://theconversation.com/government-response-to-infrastructure-australia-offers-no-grounds-for-optimism-69413

Business News

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

What Healthcare Teams Look for When Choosing Specialist Surgical Supplies

In clinical environments, small details rarely stay small. A delayed instrument, a poorly matched device or inconsistent supply quality can affect theatre flow, staff confidence and patient outcomes. ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...