australia, Catherine King, infrastructure investment program, infrastructure pipeline,
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The Federal Government will undertake a review of the $120b Infrastructure Investment Program to ensure the land transport infrastructure projects it delivers are nationally significant.
The Albanese Government will undertake a review of its multibillion-dollar Infrastructure Investment Program.
We are maintaining our strong commitment to a 10-year $120 billion infrastructure pipeline, ensuring the land transport infrastructure projects we deliver are nationally significant and nation-shaping.
Under the Liberals and Nationals, the number of infrastructure projects in the pipeline blew out from nearly 150 to 800, but their appetite for announcing projects wasn’t matched with a commitment to deliver.
Projects were left without adequate funding or resources, projects without real benefits to the public were approved, and the clogged pipeline has caused delays and overruns in important, nation building projects.
Proper management of the $120 billion infrastructure investment pipeline should lead to projects that can be built, have a lasting benefit for Australia, and enhance our economic and social productivity and prosperity.
Australia should have a pipeline of land transport infrastructure projects that are genuinely nation-building, economically sustainable and resilient to our changing climate.
The 90-day independent review is responsible action by the Albanese Government.
State and territory governments agreed to support this review at National Cabinet, and local governments will be consulted throughout the review.
This process will allow all levels of government time to consider the projects that are actual priorities and assess their cost and deliverability in the current climate.
We remain committed to delivering our election commitments and following through on projects already under construction.
This review will be undertaken by Mr Reece Waldock AM, Ms Clare Gardiner-Barnes and Mr Mike Mrdak AO, who all have extensive expertise in land transport infrastructure.
The Australian Constructors Association has expressed serious concerns that the proposed review of the Federal Government’s $120 billion investment in state infrastructure projects will result in significant cancellations and deferrals.
“Delivery of infrastructure is not like a tap. It can’t simply be turned on and off,” said Australian Constructors Association CEO Jon Davies.
“Developing teams and capabilities that are equipped to bid and deliver large projects can take years, and once assembled, it is difficult to reallocate them, particularly if there is a widespread deferral of projects,” says Australian Constructors Association CEO Jon Davies.
“If projects are cut, governments must take action to reallocate a proportion of the saved funds to help the industry by compensating contractors who have incurred significant additional costs without any fault of their own and currently lack contractual relief,” says Australian Constructors Association CEO Jon Davies.
“It is unethical and uneconomical for a government to pay less for an infrastructure project than its construction cost due to uncontrollable factors like a pandemic or distant war,” says Australian Constructors Association CEO Jon Davies.
“Construction currently accounts for 26 per cent of all business insolvencies in Australia, and the implications of these failures on the wider economy are huge,” says Australian Constructors Association CEO Jon Davies.
Australian Government funds will be spent in accordance with Australian Government values with longer-term sustainable spending based on the national interest.
“A properly functioning infrastructure investment pipeline means projects can be delivered with more confidence about timeframes and budgets,” says Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King.
“Easing the pressure on the construction sector will help drive inflation lower and deliver more predictable investment and delivery outcomes from governments,” says Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King.
“Communities will benefit from significant national infrastructure with shorter and safer travel, more liveable cities, suburbs and regions, while the economic benefits from the certainty brought by a smoother delivery of investment matched to project timelines,” says Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King.
“Importantly for industry, projects under construction will proceed, and we have committed to maintaining significant infrastructure investment for the medium term,” says Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King.
“It is time to clean up the mess left by the Liberals and Nationals clogging the pipeline with ‘press release projects’ – announced but unable to be delivered. “This review will put confidence back into the investment pipeline, benefitting the states and territories and the communities we all serve,” says Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King.
“Having a steady and transparent pipeline of government infrastructure projects is crucial for the industry to plan and invest for the future, and project cancellations and deferrals undermine this effort,” says Australian Constructors Association CEO Jon Davies.
Source: © Commonwealth of Australia | © Australian Constructors Association 2023
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