Government on the right track with rail

The federal government’s decision to embrace urban rail as a national infrastructure priority is a “big leap forward” and will support more liveable and productive cities, says Property Council chief executive Ken Morrison.

The Turnbull Government’s response to Infrastructure Australia’s 15-year plan includes support for 69 of the 78 recommendations.

Speaking to Parliament last Thursday, Prime Minister Malcolm Turnbull said his government had increased its investment in infrastructure to a record $80 billion for transport, water and other major infrastructure projects, as well as the National Broadband Network.

The Prime Minister acknowledged an “urgent need” for greater rail capacity and promised to “partner with willing state governments to agree on urban rail plans for Australia’s five largest cities and their surrounding regional centres”.

Property Council chief executive Ken Morrison says there is a “clear nexus between the productivity of our cities and the road and transport infrastructure that supports them”.

Dedicated rail plans for Australia’s five biggest cities represents “a big leap forward”, he says.

“The government has recognised that infrastructure funding must prioritise major urban areas where significant population growth is occurring and where most of Australia’s GDP is generated and we wholeheartedly agree.”

Morrison also welcomed the government’s commitment to develop an integrated national freight and supply strategy, and to work with state and territory governments on ‘last-mile’ issues. 

“There are clear deficiencies across our freight and supply chains and dealing with them is crucial to the productivity of our cities. This is an area where government must work with the transport, logistics and property sectors to ensure it gets these linkages right.”

Other issues outlined in the government’s response include road pricing reforms, private sector financing and a return to the principles that underpinned the now defunct Asset Recycling Fund.

Morrison notes that the Turnbull Government’s infrastructure statement must be read alongside its value capture statement, released by Minister for Urban Infrastructure Paul Fletcher earlier this month.

“Both papers refer to the possibilities of ‘value capture’ to fund infrastructure, but we still do not know what it means and if it is just code for more taxes on property.”