Page 1324 - Week 04 - Thursday, 8 May 2014
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The vital contribution investment in infrastructure makes to creating confidence and job generation in the ACT.
MR GENTLEMAN (Brindabella) (3.44): Madam Assistant Speaker, I would like to thank you for the opportunity to discuss the contribution infrastructure investment makes to confidence and job generation in the ACT. This issue has been extremely relevant for the ACT due to the expected impacts from commonwealth cutbacks.
Infrastructure investment is one of the main and best ways for governments to promote long-term improvements in productivity, which leads to long-term growth and improved living standards for the whole community. Infrastructure achieves this productivity growth by enhancing the efficiency with which private sector resources can be used. For example, well-functioning roads can make it easier for transport of goods, which will lower fixed costs for businesses. A well-functioning transport system should reduce travel time and costs for people. This will also obviously deliver favourable social impacts through reducing travel stress and increasing the connectedness of communities, as well as environmental benefits.
Communications infrastructure provides a platform for production and innovation in both the private and public sectors. Robust utilities infrastructure provides essential services for the community and for businesses.
There have been a range of estimates over time about the potential benefits of public investment in infrastructure. One estimate which has been referred to in recent years by the commonwealth Treasury and the World Bank is that a one per cent increase in the public capital stock can raise total factor productivity by 0.4 per cent. The Organisation for Economic Cooperation and Development also advises that investment in physical infrastructure can boost long-term economic output to a greater degree than other types of investment.
Over the past five years the ACT government has delivered more than $3.5 billion of infrastructure. This significant investment has delivered a wide range of benefits to businesses and the community, from improvements to roads to sporting facilities, and servicing greenfield land to enable development. Much of this infrastructure will service the ACT for decades to come.
High-quality social infrastructure also provides a range of benefits to the community. Social infrastructure can provide us with a vibrant city and great neighbourhoods, high-quality services and a healthy population that is educated and skilled. The ACT government has a strong infrastructure planning framework in place to ensure that we deliver benefits for both the community and the economy.
Whenever a decision is made on infrastructure it is subjected to the practices of good governance, including performance and conformance criteria. These criteria include value for money, return on investment, use of new technologies to ensure efficiencies, meeting regulatory requirements and harmonising with national infrastructure reform agendas, such as that led by the Council of Australian Governments.
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