Contact: Roger Black
Deloitte
Corporate Finance Partner
+ (0) 7 3308 7092
Contact: Vessa Playfair
Deloitte
Director of communications
0419 267 676
Contact: Anna Brown
Deloitte
Media & Communications Director
0419 214 913
The second Intergenerational Report released today highlights the pressing need for governments around Australia to tackle the infrastructure backlog now said Roger Black, Deloitte’s Infrastructure partner.
‘If we are currently in the ‘demographic sweet spot’ with the imbalance between generations steadily increasing from here on in, then it is imperative that we urgently address the already existing infrastructure gap. This is needed to support current levels of economic growth, let alone underpin the essential third “P” of the Treasurers demographic equation – increased productivity.
“The growing mismatch between the numbers entering the workforce and those leaving with the consequent Government budgetary drain means we need to get going now,” said Mr Black.
“Although, as a percentage of GDP, the projected healthcare costs cited in this second Intergenerational Report are an improvement upon those projected in the first Report five years ago, they are still a huge impost compared with current allocation, with significant impacts.
“The additional spend on health to provide a standard of care acceptable to the community means that there will be clear restraints on spending on other community needs. This will increase the pressure for more active and innovative funding for infrastructure.
“Australian government and industry reluctance to embrace partnership models is a luxury which the community can no longer afford. As the recent Deloitte global report “Closing the Infrastructure Gap” outlined Australian governments have now amassed considerable learnings with regard to delivering good policy outcomes via partnership funding models, however the numerous success stories have been generally overshadowed.
“Of the Treasurer’s three PPPs - population, participation and productivity – productivity, the last and least mentioned today, is of course an area of greatest concern to companies currently in conditions of full employment and high demand. The companies are currently facing the capping of productivity by the inability to overcome structural or infrastructural shortfalls.
Mr Black welcomed the Treasurer’s inclusion of climate change among the contextual factors framing intergenerational considerations.
“Giving focus to climate change - including the associated issues of greenhouse gas reduction, and water capture and allocation - also raises the importance of energy efficiency in the provision of infrastructure, most particularly in the transport area.
“Again, if the government seeks to backfill behind the boomer ‘bulge’ through increased migration then there will be further questions around the social infrastructure required to support this,” said Mr Black.
