Plan to avoid tunnel compensation payments will cost more than it saves, TWU Super chairman believes
Victoria risks losing the confidence of investment funds, TWU Super’s independent chairman, David Galbally, warns.
He tells the Victorian Transport Association’s Freight Outlook forum that the ongoing political machinations over the cancelled East West Link project were denting the state’s reputation among fund managers.
Any move to legislate a way around the compensation payment contracted to the East West Consortium would be an affront, he says.
“Who would be bothered looking at a state government contract after that?” he asks. “Why would they run the risk?
“Is this really the way we do business now?”
Galbally says the risk is particularly great given the amount of infrastructure required in the state at the moment.
“This state is 15 years behind on infrastructure,” he says. “It’s not just road and rail, but also hospitals and other services.”
Given its transport industry membership, Galbally says TWU Super is looking specifically to invest in these sorts of infrastructure projects.
However, there are roadblocks that keep the $1.7 billion in Australian superannuation funds investing in local infrastructure, meaning TWU Super and other funds rely more on international projects.
“[As a state,] we do have the money to do it; but we don’t have the will.”