NSW Infrastructure Report Card supports call for Independent Infrastructure Authority

20 July 2010

NSW’s largest business organisation, NSW Business Chamber, said the release of the NSW 2010 Infrastructure Report Card by Engineers Australia highlighted the need for an independent agency to prioritise and deliver NSW infrastructure.

“We need to change our focus in NSW away from short-term decisions driven by electoral need to long-term planning based on the economic and social needs of NSW residents and businesses”, said Stephen Cartwright, CEO of NSW Business Chamber.

“In the 10 Big Ideas to Grow NSW, we called for the establishment of Infrastructure NSW modelled on the Federal Government’s Infrastructure Australia.  We need a single agency responsible for the oversight and management of infrastructure planning, development, funding and implementation.

“Engineers Australia agrees with our assessment that we need to take the politics out of infrastructure in NSW.  Our argument is that NSW should replicate the model created by the Federal Government and take infrastructure decisions out of the hands of politicians and into the hands of infrastructure experts.

Mr Cartwright said the findings of Engineers Australia were not surprising to NSW businesses.

“The NSW Government has a record infrastructure budget as it plays catchup from a decade of under-investment.  Across every area, infrastructure is under stress.

“In terms of Sydney roads, we have argued that one way we can improve traffic congestion is to focus on demand strategies for roads rather than on infrastructure supply.  We need to provide the right incentives to encourage traffic out of peak periods – and these incentives could include variable tolling, off-peak pricing for public transport, changes in public sector work practices and incentives for businesses to shift working hours.

“The Owen Report highlighted the serious issues NSW faces in the medium term in relation to electricity generation.  Serious decisions do need to be made in terms of additional capacity.  Our concern is that this has been put into the “too hard” basket and won’t be dealt with until after March 2011. 

“The Federal Government, if re-elected, will have to also move quickly in relation to detailing its policy position in relation to either a CPRS or a carbon tax, as these decisions will have a material impact on the decision of investors to support additional capacity.

“I agree that Government needs to be more active and innovative in creating more opportunities for PPPs in NSW.  However, it should also be noted that business has been burnt by continual changes in government policy.  There is a residual affect from failures such as the Cross City Tunnel, Sydney Ferries tendering and the Sydney Metro project.”