The three new funds established to cover economic infrastructure, education and health represent an encouraging move towards ‘joined up’ thinking to deliver much needed improvements in social and economic infrastructure, Deloitte Infrastructure Delivery Group Partner Roger Black said.

“Specifically the Building Australia Fund – which allocates $20billion to be made available for the national roll out of roads, rail, ports and broadband, together with the role to be played by Infrastructure Australia to review proposals – should mean that the delivery of economic infrastructure is accelerated.

“There may be some criticism of the Building Australia Fund’s initial emphasis on roads, but the approach appropriately implemented will set Australia up to much more efficiently deliver infrastructure and close the existing infrastructure gap,” Mr Black said.

Deloitte Economics Partner Melissa Skilbeck said the Government had picked the ‘ready-to-wear’ Auslink projects for the States to deliver and bought themselves time for Infrastructure Australia to develop and deliver solutions to our export bottlenecks.

“However the projects brought forward one year represent less than three percent of the total $20 billion committed to the Building Australia Fund,” she said.

“Three or four years after these export bottlenecks were first identified, the Government is asking our export customers to wait patiently another 12 to 18 months.

“You would expect significant nation building projects to be fully specified within 18 months, given the funds at Infrastructure Australia’s disposal,” Ms Skilbeck said.

Mr Black said the infrastructure gap has been estimated at between $300-400 billion and while $40 billion has the potential to launch Australia down the path of improved infrastructure overall, it’s important that the establishment of Infrastructure Australia and the current budget allocation doesn’t get enmeshed in bureaucracy and process.

“The funds which have been established are directed towards economic infrastructure, education and health, but there is no significant attention given to public transport and urban congestion other than $75 million contribution to States conduct further studies.”

“The economy ticks on more than just national roads, it’s about moving people and goods in cities,” he said.