Key findings related to freight Key recommendations Australian Government and supply chains response Project Selection These recommendations were An urgent need existed to Jurisdictions should have best practice examine the decision making institutional and governance arrangements largely supported by the processes for assessing and for infrastructure provision, including Australian Government. developing public infrastructure processes, procedures and policies for The threshold for cost-benefit to avoid poor investment planning and selection projects; analysis was retained at the choices and inefficient Transparent, innovative and competitive existing $100 million level. provision of infrastructure; processes should be used in the selection Private sector involvement in of private sector partners; infrastructure funding and Regular monitoring of project performance provision should be well and review of funding policies including designed and implemented in user charges; order to deliver efficiency Rigorous cost-benefit analysis for all public gains. infrastructure projects over $50 million. These should be released publicly and made available to bidders in competitive tenders; Australian Government funds should only be forthcoming where the jurisdictions have adopted these processes and governance arrangements. Privatisation of infrastructure Governments in Australia have The Commission recommended the The Australian Government successfully privatised ports, privatisation of major ports, and supported in principle the airports and utilities and should investigation into the potential for privatisation of mature consider privatising any privatising the Australian Rail Track infrastructure assets, and remaining assets of this type. Corporation (ARTC) and Air Services undertook to make detailed Australia. consideration for the sale of Commonwealth owned assets. User Charging User charges should be used The formation of Road Funds by state and These recommendations were to the fullest extent that can be territory governments; and supported in principle by the economically justified, Australian Government as Investigation into the use of vehicle recognising that governments longer term reform options. telematics for distance and location will still need to full or partly charges for light vehicles as well as heavy fund some infrastructure. vehicles, with a view to inform future consideration of direct user charging and hypothecation to roads for funds arising from the measure. Information collection and dissemination Data limitations restrict Fund the development of a detailed The Australian Government comparisons of project costs benchmarking framework for major supported the and other benchmarking infrastructure projects, including transport recommendations regarding parameters. projects, supported by collection of data from funded projects;
Key findings related to freight and supply chains Key recommendations Australian Government response Project Selection An urgent need existed to examine the decision making processes for assessing and developing public infrastructure to avoid poor investment choices and inefficient provision of infrastructure; Private sector involvement in infrastructure funding and provision should be well designed and implemented in order to deliver efficiency gains. Jurisdictions should have best practice institutional and governance arrangements for infrastructure provision, including processes, procedures and policies for planning and selection projects; Transparent, innovative and competitive processes should be used in the selection of private sector partners; Regular monitoring of project performance and review of funding policies including user charges; Rigorous cost-benefit analysis for all public infrastructure projects over $50 million. These should be released publicly and made available to bidders in competitive tenders; Australian Government funds should only be forthcoming where the jurisdictions have adopted these processes and governance arrangements. These recommendations were largely supported by the Australian Government. The threshold for cost-benefit analysis was retained at the existing $100 million level. Privatisation of infrastructure Governments in Australia have successfully privatised ports, airports and utilities and should consider privatising any remaining assets of this type. The Commission recommended the privatisation of major ports, and investigation into the potential for privatising the Australian Rail Track Corporation (ARTC) and Air Services Australia. The Australian Government supported in principle the privatisation of mature infrastructure assets, and undertook to make detailed consideration for the sale of Commonwealth owned assets. User Charging User charges should be used to the fullest extent that can be economically justified, recognising that governments will still need to full or partly fund some infrastructure. The formation of Road Funds by state and territory governments; and Investigation into the use of vehicle telematics for distance and location charges for light vehicles as well as heavy vehicles, with a view to inform future consideration of direct user charging and hypothecation to roads for funds arising from the measure. These recommendations were supported in principle by the Australian Government as longer term reform options. Information collection and dissemination Data limitations restrict comparisons of project costs and other benchmarking parameters. Fund the development of a detailed benchmarking framework for major infrastructure projects, including transport projects, supported by collection of data from funded projects; The Australian Government supported the recommendations regarding
Supporting_Paper_No6_Policy_Reviews.docx