Investment challenges – panel discussion
L–R: David Webster, Diana Callebaut, Michael Cummings and Michael Hanna
Investment challenges Key points: • • •
Australia has a global reputation for good investments, in a sophisticated market, with predictable regulation. Our reputation is being impacted by rapid changes to law and practice. Australia’s governments and policymakers need to be clear about the rules of the game to encourage more investment – not less.
Panellists: ►
Diana Callebaut, Head of Infrastructure, Cbus Super Fund
►
Michael Cummings, Head of Infrastructure Funds, Australia and New Zealand, AMP Capital
►
Michael Hanna, Head of Infrastructure – Australia, IFM Investors
Moderator: ►
David Webster, Deputy Secretary, Commercial Division, Victorian Department of Treasury and Finance
David Webster (DW): Infrastructure investment has been one of Australia’s success stories, with Australia well regarded overseas for our market. We have a long track record of vibrant investment activity, but there seems to be an undercurrent of discontent about what the horizon looks like for infrastructure
investment. What were the preconditions for the Australian infrastructure market’s success, and has that changed following the Global Financial Crisis (GFC)? Are you seeing some headwinds in terms of the outlook for infrastructure investment? Diana Callebaut (DC): Australia has been attractive for investors largely due to the quantity of deal flow of large transactions, underpinned by a stable regulatory system, a wellunderstood tax regime and low sovereign risk. There have been a lot of government asset sales following the GFC, starting off in Queensland, and then moving to South Australia and New South Wales. More recently, we’ve had the Commonwealth Government’s Asset Recycling Initiative, as well as further privatisations. There isn’t really a formula for the preconditions for privatisations; it’s very complex. But one precondition that is consistent across all asset sales globally is that there is public acceptance of the benefits of privatising assets now, and
futurebuilding
45
