InfrastructureInfrastructure renewal in regional Australia

New research released by an Australian independent regional policy and research think tank, the Regional Australia Institute (RAI), calls for the establishment of a new national organization to tackle the shortfall in infrastructure investment and boost the regions’ capacity to contribute to national economic growth.

An RAI release reports that the report recommends the establishment of new body, Local Infrastructure Australia, as the most effective way of overcoming the backlog in local government infrastructure investment now estimated at between $12 and $15.5 billion.

RAI chair, Mal Peters, said it was widely recognized that the potential and growth of regional Australia was being severely constrained by inadequate investment in local infrastructure.

“We have been debating this issue for many years but the deficit continues to grow. Our research shows a new national organization with a sole focus on local infrastructure is the most efficient, cost-effective and effective approach to catalyzing the long term investment we need to fix the deficit.”

Peters said that Local Infrastructure Australia would solve three underlying problems that contribute to the growing infrastructure deficit by providing:

• local government with access to significant private sector capital in an efficient and cost effective way
• local government with much needed advice on effective infrastructure planning, investment and management
• policy makers with vital information on the infrastructure backlog and advice on the relative benefits of local infrastructure alongside other national and state infrastructure priorities

“International experience shows that this approach can work” Peters said.

A copy of the full research report and associated policy briefing can be accessed at the RAI Web site.