29 minute read
The Hon Warren Truss MP | Deputy Prime Minister and Minister for Infrastructure and Regional Development
The Hon Warren Truss MP
Deputy Prime Minister and Minister for Infrastructure and Regional Development the Hon Warren Truss MP discusses the role and function of the reformed Infrastructure Australia, the deepening pipeline of projects currently underway throughout the nation, and the Federal Government’s Asset Recycling Initiative.
Key points:
• The Commonwealth Government is firmly committed to infrastructure investment – and policy reform. • The Abbott Government’s first budget lifted federal investment to record highs. • Infrastructure Australia will play a central role in guiding investment and reform. • The Commonwealth’s Asset Recycling Initiative is an important incentive for state infrastructure reform.
Tony Abbott made it clear that he wanted to be recognised and remembered as the ‘Infrastructure Prime Minister’, and, one year after being elected, we have fulfilled our election commitments to get major projects underway.
We have a substantial agenda for the future, which will play a key role in transforming the infrastructure of our nation.
I would like to acknowledge the Hon Mark Birrell, who was the founding Chairman of Infrastructure Partnerships Australia until 2013. In September 2014, I was pleased to appoint him as the new Chairman of Infrastructure Australia.
On 1 September 2014, the Coalition Government’s governance reforms for Infrastructure Australia began.
Now, Infrastructure Australia is a truly independent advisory body, with a Chief Executive Officer responsible to the Board.
The Government will welcome and value its considered advice on the infrastructure needs of this country into the future.
In order to get ahead of political decision-making, Infrastructure Australia has been given a mandate to identify Australia’s long-term infrastructure needs for a rolling 15-year plan to be updated every five years.
Undertaking assessments before the political process – and ensuring that there is better information available to governments when they make commitments to particular projects – is not something that has happened in the past.
We want the decisions, which will ultimately be made by governments, to be informed by the best available information, and to give the sector long lead-in times so that they know which projects are favoured as part of our infrastructure network.
Mapping Australia’s infrastructure direction has never been more important. Demographic changes, transitioning away from resources-led investment to broader sources of growth, participating in the rise of Asia, and a rapidly increasing freight transportation task are among the critical issues Australia must address.
A failure to invest in infrastructure will limit our ability to grow as a nation and to develop our social and economic fabric.
It is therefore a huge responsibility, as well as a privilege, to be the Minister for Infrastructure and Regional Development in a government that is focused on delivering the infrastructure that Australia needs, rather than just talking about it.
The Coalition Government was elected with a strong agenda to fix our competitiveness and deliver the economic infrastructure needed to create more and better jobs, higher living standards, and greater opportunities for all Australians.
The commitments we made included: • fixing the Budget • a strategic investment in building the infrastructure of the 21st century • reforming Infrastructure Australia • tasking the Productivity Commission with examining the delivery of public infrastructure to find ways to reduce costs and provide better value for taxpayers’ dollars.
These promises are being delivered well within our first 12 months of government.
The Federal Budget
The 2014–15 Budget enacted structural reforms that will ensure the sustainability of key government responsibilities, such as welfare, health and education.
The Budget also contains the biggest ever contribution by a federal government to building infrastructure.
At $50 billion, the Infrastructure Investment Programme includes crucial road, rail, intermodal and port projects – $16.4 billion more than the Opposition promised, and without caveats on many of the proposals, which would have prevented them from happening.
The $50-billion figure itself is impressive, but Treasury analysts advise us that it will also leverage more than $125 billion in new infrastructure investment.
For the first time, state and territory governments will be able to access additional infrastructure dollars when they elect to recycle their mature governmentowned assets and spend the money on new, productive infrastructure.
They will then be better able to spend their own money on infrastructure where they have particular expertise and responsibility, such as roads, railways, intermodals, ports and urban public transport systems.
We are also reforming the way that infrastructure projects are selected, assessed and procured, and finding ways to encourage greater private sector investment.
Infrastructure is expensive. We need new ways to fund and maintain it.
Deliberations about the cost of Australian-built submarines to the public purse have received media attention recently, and I am aware of speculation that they could potentially cost taxpayers $80 billion or more.
To provide some perspective, the high-speed rail study shows that building a network between Brisbane and Melbourne would cost in the order of $114 billion.
Decisions as significant as these that involve the taxpayers cannot be taken lightly, particularly when we have a current debt legacy with an interest bill of $1 billion per month that continues to rise.
Despite this debt legacy, we are getting on with the job. Our first 12 months in government show that the Coalition is serious about linking infrastructure financing, investment and reform with productivity.
We are becoming recognised as a world leader in encouraging the innovative expansion of private sector investment and engagement in transport infrastructure.
Often when infrastructure is discussed, it is in the context of financial costs, but rarely in terms of benefits and opportunities.
Yes, costs are large, often prohibitively so, but when I look at infrastructure across Australia, I also see great opportunities – opportunities that need better infrastructure to be unlocked.
That is why the right decisions must be made – even if they are costly.
Following are several projects that are underway, in terms of their benefit and their progress, which show how we are delivering on our commitments.
Left: IPA Chairman Adrian Kloeden; the Hon Warren Truss MP; and IPA Chief Executive Brendan Lyon
Firstly, East West Link Stages One and Two, in Melbourne.
The Australian Government is providing $3 billion to the overall East West Link project. This includes $1.5 billion to fast-track delivery of the western section.
This will ensure that Melbourne commuters get the benefits of spending less time stuck in traffic and more time being productive, or with loved ones.
The East West Link is expected to reduce travel time by 20 minutes for up to 100,000 vehicles each day. The eastern section alone will bypass 23 sets of traffic lights. It is amazing that anyone could be opposed to this project and condemn Melbourne to gridlock.
Recently, East West Connect was announced as the preferred bidder to deliver the eastern section of the East West project, which is running to schedule.
In Sydney, the WestConnex and NorthConnex projects are progressing.
WestConnex is one of Australia’s largest transport infrastructure projects, and recognises Western Sydney as a region with its own purpose and identity, rather than as a dormitory suburb of Sydney’s CBD.
The financing of this project is innovative, and our historic concessional loan of up to $2 billion brings the delivery of WestConnex forward by around 18 months, essentially delivering the M4 East and M5 East simultaneously.
The M4 Widening is expected to be completed in 2017; the M4 East and M5 East in 2019; and the M4 South in 2023. The design and construction contract for the M4 Widening is expected to be awarded later this year.
NorthConnex will ease congestion on Pennant Hills Road – often cited as one of Sydney’s most congested roads – and return local streets to local communities by removing up to 5000 trucks per day from the road and providing a free-flowing, continuous connection between the M1 and M2.
The Environmental Impact Statement has been released, and construction is expected to commence early next year, to be completed in late 2019.
In April this year, we announced that Badgerys Creek would be the site for Western Sydney’s airport. This decision ended 40 years of uncertainty and debate. It will be good for economic growth and good for jobs, both in Western Sydney and nationally.
Our approach to building this new airport is ‘road and access infrastructure first’ – we don’t want to create a situation in which we have an airport but no convenient way to get there.
To that end, in partnership with the New South Wales Government, we will spend more than $3.5 billion for significant road infrastructure upgrades in Western Sydney.
The tender for Stage One of the Bringelly Road upgrade was advertised in July, and proposals for Round One of the Local Roads Package closed at the end of August. Construction on The Northern Road is expected to begin in 2015.
Development of an airport is a complex and longterm infrastructure project.
The Notice to Consult has been issued to the Sydney Airport Group – the critical first step to meet our obligations under the right of first refusal process to choose the owner and operator for the new airport.
We are working towards an airport being operational by the mid-2020s.
In Western Australia, the Perth Gateway project is ahead of schedule. The proposed new Perth Freight Link will provide a new freight connection between the Roe Highway and the Port of Fremantle, and Main Roads Western Australia is finalising the business case for the entire project.
Our investment is a major milestone in infrastructure delivery for Western Australia, because it is likely to be the first time that we will see a heavyvehicle user charge implemented for a specific project.
Early works and planning are also underway on: • the Gateway Motorway widening in Queensland • the Midland Highway in Tasmania • two sections of the South Road in Adelaide • Tiger Brennan Drive in Darwin.
In addition, major regional highways are being upgraded.
At $6.7 billion, fixing the Bruce Highway in Queensland is the largest financial commitment of our $50-billion investment. The plans include more than 60 separate projects, making it one of the largest construction endeavours that is underway.
The duplication of the Pacific Highway within this decade is also on track, with the Government honouring its commitment of $5.64 billion under an 80:20 funding split with the New South Wales Government for the construction of the Woolgoolga to Ballina section.
Despite years of work, just 60 per cent of the Pacific Highway upgrade project is complete. At the moment, we have 1700 workers on site, seven per cent of whom are Indigenous. This is obviously a great boost for the regional New South Wales economy.
Other regional highways undergoing work include: • the $1.6-billion Toowoomba Second Range
Crossing – the largest single road project in regional Australia – and upgrading the Warrego
Highway west of Toowoomba • the Western Highway and Princes Highway duplications in Victoria • the Great Northern Highway and North West
Highway upgrades in Western Australia • Australia’s longest shortcut – the Outback Way, traversing Queensland, the Northern Territory and Western Australia.
The importance of the Inland Rail
A priority for this Government is to develop the capacity of freight rail to meet the forecast growth in freight, particularly along the eastern seaboard.
The Melbourne to Brisbane Inland Rail is the Government’s number-one rail freight project, and one of Australia’s most important and ambitious longterm projects.
It is the Government’s plan to see it completed in the next 10 years.
The Inland Rail will make rail freight costs more competitive with road freight, and provide real choice for transport operators.
Over the next four years, we have committed $300 million to commence important preconstruction works, but private sector investment in the Inland Rail is also sought.
Our aim is to achieve the best balance of public and private sector funds, realising that for the Inland Rail to be attractive to the private sector, the business case must stack up, and the service that it delivers must meet the needs of users.
This is a key part of the work being undertaken by the Implementation Group that was established in 2013, chaired by former Deputy Prime Minister and long-serving transport minister John Anderson.
Any decisions on further funding will be taken once the Government has considered the Implementation Group’s report at the end of 2014.
And while the Inland Rail is the priority freight rail project, the 2014–15 Budget has invested $3.6 billion in other rail projects.
The list comprises $1.6 billion in freight rail and intermodal projects, including the Advanced Train Management System trial, as well as intermodal projects in Melbourne, Sydney and Perth, rail revitalisation in Tasmania, and work on improving lines in Adelaide, and port rail connections in Sydney and Perth.
Financing is a critical part of building better infrastructure. The Government has put in place a policy agenda to: • target investment in productive infrastructure • complete projects faster • partner with state governments • leverage more private sector investment.
We are developing innovative financing models, which will help to build much-needed infrastructure over the next decade.
A new Infrastructure Australia
Reforming Infrastructure Australia is a key part of our productivity agenda.
The Infrastructure Australia Amendment Act 2014, which commenced on 1 September, delivers on part of our election commitment to achieve greater independence and improve transparency for this expert advisory body.
A second piece of the legislation was introduced into Parliament to deliver the final stage of the Infrastructure Australia reforms.
Work on the promised national infrastructure audit has commenced in consultation with state and territory governments, and will feed into the 15-year infrastructure plan, which is expected to be delivered in early 2015.
I expect both the audit and the plan to present comprehensive advice on the nationally significant infrastructure that we currently have, and the infrastructure that we will need over the next 15 years.
The Government will give detailed consideration to Infrastructure Australia’s advice on these needs, to help inform decisions on future infrastructure investment. This includes implementing our commitment to ensure that every project with a Commonwealth contribution of $100 million or more (apart from Defence projects) undergoes Infrastructure Australia’s robust scrutiny and analysis.
Infrastructure Australia will publish its reports on its website as transparent advice, and that will be available for governments and the community to consider when allocating and discussing funding for infrastructure projects.
The Government is also pursuing strategies to drive longer-term infrastructure financing reforms to inform the Government’s delivery of critical infrastructure, to ensure value for money for taxpayers, and to maximise productivity.
The Productivity Commission’s Inquiry Report into Public Infrastructure has examined a range of factors to reduce costs, drive better competition and encourage greater private sector involvement in infrastructure.
The Government’s response to the Productivity Commission will take into account consultations with industry, and, importantly, will acknowledge that many of these reforms require implementation by other jurisdictions.
We are working closely with the Productivity Commission to put in place a suite of reforms that will ensure better value for money and reduced time frames for the delivery of infrastructure.
Other strategies to drive longer-term reform include the Taxation Review, which is underway, and the Federation White Paper, which will commence shortly.
In our first year in government, through negotiations with the states, we have already leveraged new streams of private sector investment to get new projects underway sooner.
While the private sector has a large pool of capital available, and is willing to invest in the right infrastructure projects, there has been a limited appetite to invest in greenfield projects with unproven commercial history.
That is the reason that the Federal Government has been working with state and territory governments and the private sector to investigate ways of appropriately balancing or sharing risks with the private sector, to see new projects brought to market.
The Asset Recycling Initiative will support the transfer of mature public infrastructure assets to the private sector by offering the states 15 per cent on the sale price, so long as the proceeds are invested in new, productive infrastructure.
This initiative will encourage the private sector and superannuation funds to partner with governments in building and delivering vital transport infrastructure, including much-needed public transport investment.
Another key priority is reducing the regulatory burden imposed on the Australian economy by $1 billion each year to increase Australia’s productivity and international competitiveness. This recognises that capital is mobile, and that
Figure 1: Asset Recycling Initiative
unnecessary red and green tape drives up business costs, as well as the costs to individuals.
The first Parliamentary Day dedicated to the abolition of red tape has already occurred, and my portfolio is currently advancing a number of important regulatory reforms in the aviation, maritime and transport security sectors.
The role of local government
I have spoken at length about the new paradigm that the Coalition Government is putting in place to deliver infrastructure.
Delivering that infrastructure at the community level – where it is often most important – can only be done in partnership with local government.
I have a high regard for Australia’s councils and the tough task before them.
Councils do not welcome our decision to freeze the annual indexation of Financial Assistance Grants for three years, as their contribution to help get the nation’s budget back on track.
Let me put this decision into perspective.
Funding to local government has not been reduced – in fact, this year’s funding is $30 million higher than last year’s as a result of population adjustments.
Funding has been maintained; only indexation has been temporarily paused.
In August, the Government announced $2.3 billion of Financial Assistance Grants for local government to spend entirely on projects and activities of their choice.
The 2014–15 Budget also contained extra funding for existing and new programs, which include: • the expanded $565-million Black Spot and $248-million Heavy Vehicle programmes • the new $300-million Bridges Renewal
Programme • the new $1-billion National Stronger Regions
Fund, for which we are currently finalising the guidelines.
Also in August, the Government ensured that the $2.1-billion Roads to Recovery Programme funding for local communities across Australia will be delivered, despite political opposition.
Roads to Recovery money will continue to flow, and there will be an extra $350 million available in 2015–16 to double the funding to every council in Australia.
This brings total funding for the programme to $2.1 billion over the 2014–15 to 2018–19 period.
We are committed, our strategy is viable, and we have got down to business as we said we would.
The Hon Warren Truss MP, Deputy Prime Minister and Minister for Infrastructure and Regional Development
The Hon Warren Truss MP is the longest-serving leader of any political party in the Federal Parliament, having become Leader of The Nationals in 2007.
A third-generation farmer from the Kumbia district near Kingaroy in Queensland, Mr Truss first won his seat of Wide Bay in 1990. He was a Minister in the Howard Government for 10 years, serving as Minister for Customs and Consumer Affairs in October 1997, and a year later, Minister for Community Services.
In July 1999, Mr Truss became the Minister for Agriculture, Fisheries and Forestry, where he served for six years. He became Minister for Transport and Regional Services in July 2005, and, in September 2006, Mr Truss was appointed Minister for Trade.
Before entering Parliament, Mr Truss was a Kingaroy Shire Councillor from 1976 to 1990, including seven years as Mayor. He was Deputy Chairman of the Queensland Grain Handling Authority and a member of the State Council of the Queensland Graingrowers Association.
Mr Truss is also former State and National President of the Rural Youth Organisation and President of the Lutheran Youth of Queensland.
At the 2013 Federal Election, Mr Truss led The Nationals to the party’s best electoral result in 30 years.
BUILDING A CREDIBLE INFRASTRUCTURE PIPELINE: A PRIVATE, PUBLIC AND COMMUNITY APPROACH
Over the next 15 years, the global demand for infrastructure development is looking at a projected investment shortfall of up to $15 trillion. Not addressing this shortfall means potentially forgoing up to 100 million jobs and $6 trillion in economic activity every year.
This was the warning issued by David Thodey, the B20 Infrastructure and Investment Taskforce Coordinating Chair and Telstra Chief Executive, at a recent panel discussion in Sydney, hosted by Westpac Institutional Bank as part of its Deeper Insights series.
The taskforce is one of four established by the Business 20 (B20) forum, through which the private sector produces policy recommendations for the annual meeting of the Group of 20 (G20) leaders.
The B20 brings together business leaders from across G20 member countries to reflect the key role of the private sector as the main driver of strong, sustainable and balanced growth.
‘If you go out to 2030 and look at all the infrastructure investment requirements, you get to this mind-blowing number of $60–$70 trillion worth of money, or, let’s say, of opportunity that is needed,’ said Thodey, who delivered the keynote address.
‘And, if you go to any government, they’ll always say that they want to build the infrastructure, but somewhere between the opportunity and the reality is this chasm because these projects are not coming online as quickly as you would want.
‘All the data shows that when you look at it in terms of the money that needs to be allocated to these projects, compared to funding available from government and the private sector, there’s a $15-trillion gap.’
Specifically, according to the taskforce’s findings, it is estimated that by 2030, $60–$70 trillion in additional infrastructure capacity will be needed globally; however, under current conditions, only $45 trillion is likely to be realised, leaving a shortfall.
Furthermore, the taskforce estimated that closing this gap could create up to 100 million additional jobs and generate $6 trillion in economic activity every year.
To maximise the opportunity, it found that while governments have a crucial role to play in closing the gap, the private sector will be required to play a larger part in the future process.
Overcoming the barriers
Despite the business community being ready to play its part, the taskforce concluded that the greatest barrier to more private involvement in public infrastructure remained the absence of a credible pipeline of bankable, investment-ready infrastructure projects offering acceptable risk-adjusted returns to both public and private investors.
‘Why is this happening? You look around the world and there’s no lack of money, but somehow, it’s not flowing to the right projects,’ Thodey said, in relation to the crucial disconnect.
‘Major infrastructure funds say they see all this opportunity, but there just aren’t that many bankable projects – that is, projects that are ready for the funding round.
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‘And, if you find them, they say that one of the big challenges is that each project has its own flavour and dynamic, and, therefore, the amount of the money you’ve got to spend first, to look at investing in an infrastructure project, is enormous.’
Added to this, Thodey said that further roadblocks resulted from many countries not having an easily identifiable list of projects, not having a definition of how to prioritise these projects, and there being no-one responsible for them – often due to the nature of the political environment concerned.
‘Big infrastructure projects get caught in the political cycle and it becomes a political outcome, rather than one that’s purely for the good of the nation.’
In addition, the Taskforce noted that barriers to financing remain, including the unintended consequences of prudential financial regulation, underdeveloped local currency capital markets, and limited availability of appropriate, standardised financial instruments to align projects’ risk/return profiles with investor needs.
‘Trying to match money to these longterm projects, which have long gestation periods, long build phases and long-run returns, is difficult,’ Thodey conceded.
‘But the truth is that there are a lot of pension funds and sovereign wealth funds looking for that sort of investment, and the likes of Westpac or Macquarie, who can find ways to structure the deals, so this is a big area that needs to be addressed.’
A six-step solution
To deal with the challenges, the Taskforce recommended six core, practical steps that G20 nations should take, individually and collectively, to promote more and more efficient investment in infrastructure.
In terms of recommendations, the taskforce advised the G20 leaders to reaffirm the critical importance of infrastructure, as well as private investment in infrastructure, in their national growth plans, and to set specific infrastructure investment targets to 2019 that are aligned to a national infrastructure strategic vision.
It encouraged the G20 to establish, publish and deliver credible national infrastructure pipelines that have been rigorously assessed and prioritised by independent national infrastructure authorities, and which take full advantage of private sector finance and expertise, whether by traditional procurement, Public Private Partnerships, or privatisation of existing government assets.
Furthermore, it recommended that the G20 set up a global infrastructure hub with a mandate to collect and disseminate leading practice, collaborate with key stakeholder organisations on project preparation and capacity building. It would also develop and promote appropriate standards, and collate and publish relevant data and reports to increase the pipeline of bankable, investmentready infrastructure projects, improve productivity across the infrastructure life cycle, and accelerate the development of infrastructure as an asset class.
Additionally, the taskforce advocated the implementation of infrastructure procurement and approvals processes that are transparent, consistent with global leading practices, and include a commitment to specific time limits for regulatory and environmental approvals for major infrastructure projects, while respecting national policy objectives and not compromising the integrity of approvals processes.
It also urged the G20 leaders to work towards greater promotion and protection
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of cross-border capital flows, especially foreign direct investment (FDI), including by developing a non-binding International Model Investment Treaty and promoting broader adoption of existing international standards.
Finally, the taskforce recommended that G20 leaders increase the availability of long-term financing for investment, including for infrastructure, by removing unnecessary disincentives for long-term investment, setting out coherent national plans to promote the development of local capital markets, and to promote the provision of appropriate credit enhancement instruments and/or co-investment mechanisms for infrastructure projects where required.
The devil is in the detail
Highlighting the taskforce’s three key recommendations, Thodey conceded that while they might sound simple, the recommendations could prove difficult for some countries to agree to.
‘Firstly, we’re saying that every country needs to have a prioritised list of projects, and that targets should be set. This is probably a private sector view, because, for example, every year, I’m held accountable for the amount of capital I allocate to projects, and I don’t see why governments should not be treated in the same way.
‘The Productivity Commission did put out a report that said setting targets is wrong for infrastructure projects because they could force governments to do stupid things, such as meet the target without generating the right return, but I hope we’re a bit beyond that.’
Discussing the second key recommendation – that the G20 establish a global infrastructure hub – Thodey admitted concern due to its potentially bureaucratic nature.
‘Setting up an Infrastructure Hub to provide a model for best practice has a lot of difficulties, such as whether it would reside in the private or government sector, who would be on the board, and where the funding should come from – all in the context of that age-old belief that the private sector and government don’t work well together.
‘And, while it won’t be the panacea, at least if you can get best practice and a common way to look at these big projects, it would go a long way in helping to release funding for the projects.
‘The third key recommendation is around the private sector’s involvement in infrastructure, as there’s more work to be done to stimulate and develop local markets,’ Thodey said.
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‘I think Australia is not doing too badly, but it’s a matter of degree. One idea is to set up specialised instruments to allow for a separate way of reporting infrastructure projects, giving them greater transparency and visibility so that funds can invest in them.
‘Another idea is to stimulate greater foreign investment, as there’s no question that China is looking for big projects, so it would be a question of how to facilitate that flow of funds.’
Australia’s infrastructure scorecard
Assessing Australia’s performance, Deeper Insights panellist and Hastings Funds Management Chief Executive Andrew Day agreed.
‘Australia has been a pioneer in private sector investing in infrastructure, but these are long-term investments that need a highly disciplined approach. With multiple states running concurrent sales processes, it is important that governments and their appointed transaction teams allow time for the extensive due diligence needed to balance price and risk,’ Day said.
‘On a relative basis, Hastings is a leader in dealing with privatised infrastructure. We have also been a pioneer of managing and being a source of funding for Australian infrastructure assets. One of the biggest challenges now is matching up the strong demand from institutional funds from Europe, North America and Asia for Australian assets, while balancing the needs of our Australian clients.
‘At the moment, Australia has a robust pipeline of opportunities, and there is a growing awareness that privatising mature infrastructure assets brings tangible benefits – in the form of readily available sources of capital for continued capital expenditure; and for the broader economy in promoting efficiencies and growth.
‘Infrastructure is a community asset requiring local political and community support, and, as such, successful investments should have bipartisan support and strong local engagement.
‘If the G20 can help promote the benefits of disinclined private sector investment in infrastructure, it could bring tangible benefits to the Australian economy.’
Similarly, fellow panellist and IFM Investors Global Head of Infrastructure Kyle Mangini also believed that the political environment is a major variable that needs to be taken into consideration when embarking on new projects.
‘The challenge is incredibly aspirational, because politically, it’s very difficult to do these things as, while politicians like cutting ribbons, they don’t like telling people that they have to move out of their houses.
‘If a politician tells voters that assets need to be privatised, they’ll say no, but if, instead, they say we will sell the port and build schools, voters will say yes.
‘It’s all about contextualising the message wherever you are, and making it understood that what’s been done will benefit the general population.’
Putting this in the context of local development milestones, panellist and WestConnex M5 Project Director Chris Swann observed that success in this regard has been achieved in recent years in New South Wales.
‘In the last three years, after previously underperforming in infrastructure, New South Wales has taken a number of positive steps, including the establishment of Infrastructure NSW with its priority list of projects that will grow the economy.
‘The number-one recommendation from the list was the WestConnex M5 project, which stands head and shoulders above any other project in terms of growing the New South Wales economy.’
Summing up, B20 Infrastructure and Investment Taskforce Coordinating Chair David Thodey made sure to place the focus firmly on the vast potential upside of closing the projected infrastructure investment gap.
‘If you were to be able to really unleash this incredible opportunity, it would generate at least one per cent to 1.5 per cent of gross domestic produce (GDP) growth over the next five to 15 years.
‘That’s an enormous stimulant for growth; but, more importantly, if you get it right, it will create 100 million jobs globally, and just look at what’s happening here at Barangaroo – the number of people working creates this energy, which is very important for the city and the nation.
‘This is a tremendous opportunity and, if we can just move it forward a little bit, it will be good for the world economy, good for Australia, and good for institutional investors.
‘We want to stimulate growth and investment, because, personally, I am sick of cutting costs, and I like growing,’ Thodey said.
The Deeper Insights Series is a Westpac Institutional Bank thought leadership event. These events provide customers with access to industry thought leaders, and an opportunity to discuss current economic issues and their impacts on business. This year’s event focused on the B20 Infrastructure and Investment Taskforce recommendations to the G20. Speakers included David Thodey, B20 Coordinating Chair, and Chief Executive Officer, Telstra Corporation; Kyle Mangini, Global Head of Infrastructure, IFM Investors; Andrew Day, Chief Executive Officer, Hastings; Chris Swann, M5 Project Director, WestConnex; Pippa Crawford, Head of Westpac Institutional Bank Victoria and Head of Energy and Resources, Corporate and Institutional Banking; and Michael Pascoe, Finance and Economic Commentator (as master of ceremonies).
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Source: 1. Project Finance International Awards 2013, Darling Harbour Live – (Sydney Convention Centre). 2. Infrastructure Journal and Project Finance Magazine Awards 2013, AquaSure. 3. FinanceAsia Achievement Awards 2013 – Australia and New Zealand. 4. Euromoney Awards for Excellence 2014. Westpac Institutional Bank is a division of Westpac Banking Corporation ABN 33 007 457 141 (“Westpac”) ASFL 233714. DW_WBC594D1_AIR
