One of the key initiatives to come out of the recent Council of Australian Governments meeting in Canberra was the elevation of infrastructure to a position of major national policy importance.
One of the key initiatives to come out of the recent Council of Australian Governments meeting in Canberra was the elevation of infrastructure to a position of major national policy importance.
A report from the Business Council of Australia released last week said the COAG meeting had made significant progress in agreeing to revamp infra-structure.
However, the report also claimed delays in implementing agreements on infrastructure reached at COAG would cost Australia $10 billion a year in lost economic growth.
With Western Australia in the midst of a multi-commodity upswing, which saw mineral and petroleum production reach nearly $40 billion in 2005, the importance of infrastructure planning and improvements is as important to the state as it is anywhere in the nation.
The resource-led boom in WA has been underpinned by generally good infrastructure but with no end in sight to the current demand for the state’s raw materials, the trick is to ensure infrastructure continues to keep pace. According to the BCA report, the COAG infrastructure measures need to be implemented by the end of 2007 to allow the benefits to flow through to the economy.
A delay past this date would result in these infrastructure measures being past their use-by date by the time they were implemented. Infrastructure and infrastructure planning is something the state government is acutely aware of.
Speaking at the announcement of a range of state tax cuts last week Premier Alan Carpenter said while the state’s economy was performing well it was important to use the benefits to invest in the future.
The state government, through Treasurer Eric Ripper, has instigated a roundtable forum on infrastructure. It includes representation from business, government, the Chamber of Minerals and Energy, and other stakeholders, and has so far met twice.
WA Chamber of Minerals and Energy policy and external relations dirctor David Parker agreed with the BCA it was positive to see infrastructure recognised as important policy. “In WA there is a close working relationship between business and government on infra-structure,” he said.
“A good example is the port of Esperance where there has been good planning between the port, and the gold and nickel industry based out of Kalgoorlie.
“Other emerging areas like the mid-west need more work. So, it becomes a case of looking at infrastructure region by region in the state.”
The CME said infrastructure planning should be considered on two separate levels.
There is the physical infrastructure – the logistics of roads, rail and ports, forming the critical link of moving resources from the operations to the destinations. As important, especially in WA, is ‘soft’ infrastructure - human services like health, law and education, which keep remote communities alive and working.