<span class="" id="parent-fieldname-description"> The Productivity Commission will examine infrastructure costs and financing in Australia, following an announcement by the Prime Minister Tony Abbott and treasurer Joe Hockey. </span> <div>Abbott and Hockey said the inquiry delivers on a key Coalition commitment and forms part of the government’s infrastructure agenda.<br /><br />The terms of reference for the study instruct the Productivity Commission to analyse and report on how infrastructure is currently funded and financed in Australia, including by the Commonwealth, the states and the private sector.<br /><br />The rationale, role and objectives of alternative funding and financing mechanisms will also be under the microscope.<br /><br />The commission will also examine the cost structure of major infrastructure projects in Australia, including where infrastructure project costs have increased considerably, compared with other countries, and will provide advice on ways to improve decision-making and implementation processes to facilitate a reduction in the cost of public infrastructure projects.<br /><br />Finally, the commission will be asked to comment on other relevant policy measures, including any non-legislative approaches, which would help ensure effective delivery of infrastructure services over both the short and long term.<br /><br />The fPrime minister and treasurer explained that the government is “mindful of the financial risks posed by alternative funding and financing mechanisms.”<br /><br />For that reason, the study is also intended to assess the risk to the Commonwealth of various infrastructure spending.<br /><br />“The overall cost of infrastructure and engagement with the private sector on infrastructure financing are key economic challenges faced by Australia and other countries in our region,” Hockey and Abbott said in a joint statement.<br /><br />“Australia must ensure that private investment is as attractive as possible by reducing the cost of building infrastructure by driving efficiency and removing red tape.<br /><br />“This inquiry will be crucial in identifying how we can lower construction costs and develop a partnership with the private sector to build the infrastructure of the 21st century that Australia needs.”<br /><br />The Productivity Commission will hold public hearings and release a draft report for public comment, before delivering a final report to the government, within the next six months.<br /><br />The draft is expected in March 2014.<br /><br />Chief executive of CPA Australia, Alex Malley, welcomed the inquiry.<br /><br />“Enhancing opportunities for the private sector to invest in the road, rail and critical infrastructure projects our nation needs to remain competitive in the Asian Century is essential,” he said.<br /><br />“The infrastructure we build today will be the foundation for the prosperity, competiveness and productivity of our nation tomorrow.<br /><br />“With the mining investment boom ending, we need to do all we can to stimulate the non-mining sectors of our economy.”
