Foreword By the Hon Mark Birrell, Chairman, Infrastructure Partnerships Australia

Foreword

2012 continues to pose substantial challenges to policymakers and the industry, with difficult budget positions frustrating the capacity of governments to fund the pace of infrastructure investment expected by the community, and demanded by the economy.

IPA recently released the first edition of its Civil Infrastructure Metric, in partnership with BIS Shrapnel. The Metric showed in stark relief what every company in the sector is experiencing firsthand: a sustained slowdown in the number and value of projects coming to the market.

This slowdown reflects uncertainty about decision-making for new investment and shows how government procurement has tightened following falls in GST, stamp duties and other transaction-based revenues.

But challenges also bring opportunities.

Already, we are seeing governments begin to respond through far-reaching inquiries into the cost, scope and model of government service delivery, together with an accelerating process of asset sales.

In this edition of Future Building, Tony Abbott outlines his plans to engage with – and invest in – urban infrastructure if elected to government.

I am very pleased that the new Queensland Transport Minister, Scott Emerson, shares his views on the substantial challenges facing that government in funding new projects, while reforming a very difficult budgetary position.

This edition also looks at the changing and evolving roles of government and the private sector in the delivery of public health services – the largest area of expenditure by Australia’s states – and features an article on the South Australian budget, and one on opportunities to capture value from new investments to increase revenues and funding capacity for new projects.

We also bring you an interview with Transurban’s new Chief Executive, Scott Charlton, who sheds light on his career to date, and his directions and drive at the helm of Australia’s largest tollway operator.

Future Building also explores the transport reforms underway in New South Wales, and the growing appetite for governments to partner with the private sector on major healthcare projects.

I trust you will enjoy Future Building, and invite any feedback that you may have.

The Hon Mark Birrell Chairman, Infrastructure Partnerships Australia