Introducing Infrastructure WA
A new infrastructure agency in Western Australia promises more “joined up thinking” and a focus on the tough reforms needed for future prosperity, says Infrastructure Australia’s chief Philip Davies.
Perth is preparing for a population explosion, as 3.5 million people call the city home by 20. More people means more roads, utilities, schools, hospitals and public transport.
“The Property Council welcomes the preparation of a long-term infrastructure strategy and Infrastructure WA to guide the state’s major infrastructure needs,” says the Property Council’s state executive director, Lino Iacomella.
But for too long, WA has been “flying blind” when it comes to mapping out its future infrastructure requirements, Iacomella explains.
“A lack of long-term strategy has created expensive inefficiencies in planning major projects, and we haven’t got our fair share of national funding.”
The Property Council has pushed for an agency to steer infrastructure spending in the state, and yesterday hosted Premier Mark McGowan’s launch of Infrastructure WA.
One of McGowan’s key election commitments, Infrastructure WA will be tasked with developing a 20-year strategy, providing expert advice to government and supporting the work of agencies as they develop infrastructure plans.
According to Infrastructure Australia, population growth will drive a dramatic rise in demand for infrastructure services around the country. By 2031, Australia will have 30.5 million residents. Almost three-quarters of population growth will be in our four largest capitals – Sydney, Melbourne, Brisbane and Perth.
Philip Davies has led Infrastructure Australia since 2015 and says state governments are increasingly acknowledging the importance of longer-term infrastructure planning outside the election cycle. WA’s move follows similar authorities setting up shop in New South Wales, Victoria, Queensland and Tasmania.
“The interesting thing is that each operates slightly differently, but they all have one fundamental thing in common: they all fill a gap by bringing together the different government agencies to think about the long term.”
Rita Saffioti, the state minister for transport, planning and lands, will have oversight of the agency in WA, “and that’s important because it brings integrated thinking to long-term investment,” Davies adds.
“I’m hopeful that Infrastructure WA will have a high degree of independence and will be able to give the frank and fearless advice that governments need.”
In Infrastructure Australia’s case, Davies says an “independent board, free from bureaucrats, is healthy, because we can focus on the long-term without the day-to-day pressures of running a state or country. We can really look at the hard issues.”
Infrastructure reviews both in Australia and internationally have found that rigorous project selection is central to boosting economic activity and productivity growth. However, investment in poorly conceived projects can undermine a country’s – or in this case a state’s – economic prospects.
Davies says some “good work” is already occurring at the state level. He notes Infrastructure Victoria’s determination to “look at some of the harder reforms”. Infrastructure NSW has “done a good job getting a pipeline of projects going”.
Davies convenes regular “get togethers” with his state counterparts, which he says is “useful for alignment around particular issues, such as methodologies for cost-benefit analysis or setting priorities for reform. We all agree we need a national supply chain strategy and road reform, for example.”
Iacomella, too, is optimistic. “The experience in other states and nationally with similar infrastructure bodies is very positive. We are moving towards a linked-up approach to planning the growth of cities, regional areas and industrial zones – something that is crucial for job creation and our future prosperity.”
The McGowan Government’s proposed model for Infrastructure WA is now open for public comment, and closes on Tuesday 20 March 2018. Find out more or register for a stakeholder forum.