Commentary on the report to COAG by Infrastructure Australia

Abstract

In December 2008, Infrastructure Australia issued a Report to the Council of Australian Governments, http://www.infrastructureaustralia.gov.au/files/A_Report_to_the_Council_of_Austra lian_Governments.pdf that establishes a framework for the provision of public infrastructure services in the transport, energy, water and communications sectors of the Australian economy. Measured against the approach used by the World Bank it contains many positive features but falls short of what should be expected from a developed economy. This paper follows the framework of the Infrastructure Australia Report to comment on the absence of sufficient rigor in the subject matter addressed including by mixing social/political discussion with economic, by taking a national/external account framework as the focus of economic development, by ignoring the need for review of existing institutional arrangements including Commonwealth/State relations on infrastructure investment and collections (user charges and taxes), Many of the comments would be met by seeking to institute in the discussion on infrastructure in Australia what the World Bank terms Sector Analysis in each of the four nominated sectors. General suggestions are made on how to overcome specific shortcomings identified in the current approach.