Australia’s peak logistics body comes out in support of Infrastructure Australia's report arguing public assets be sold to pay for infrastructure
October 19, 2012
Australia’s peak logistics body has come out in support of an Infrastructure Australia report recommending public assets be sold to pay for critical
logistics infrastructure.
The Australian Logistics Council (ALC) says the report, released yesterday, highlights how funding new
infrastructure relies heavily on investment from public sector budgets which are increasingly under pressure.
Therefore, ALC Managing Director Michael Kilgariff argues new funding models need to be considered by governments to help meet Australia’s infrastructure deficit.
“ALC agrees with the [Infrastructure Australia] report’s assessment that there are many assets which could be transferred to the private sector and that the proceeds from these assets could fund substantial new logistics infrastructure which is critical to boosting national productivity,” Kilgariff says.
Kilgariff adds a similar point was raised yesterday by the Productivity Commission, which made the case for the overhaul of electricity networks ownership arrangements and for state-owned businesses to be privatised.
“In its report, Infrastructure Australia notes road pricing could generate significant additional revenues to fund new road infrastructure and maximise the efficient use of existing infrastructure,” Kilgariff says.
“This underscores the importance of the Heavy Vehicle Charging and Investment Reform (HVCI) project which needs to work closely with industry to develop possible reform options that deliver improved productivity and more efficient supply chains.
“It is equally important that the HVCI project not be used simply as an additional revenue raising mechanism by governments that deliver no additional benefit to the logistics industry,” he says.
Kilgariff also took the opportunity to re-iterate the ALC’s position
on the critical need for a nationally consistent approach to the way logistics networks are financed, regulated and managed to enhance productivity.
“The need for a national agreement was highlighted in Ken Henry’s report Australia’s Future Tax System which, the Infrastructure Australia report says will help to guide governments in the use and supply of road infrastructure,” Kilgariff says.
“It is timely that governments of all levels revisit this recommendation and give it serious consideration.”