infrastructure

Industry groups welcome infrastructure fast-track, but say there is more to do

Groups representing the logistics and infrastructure sectors have welcomed the federal government’s focus on cutting approval times and increasing investment in infrastructure.

On Monday, June 15, the federal government announced an extra $1.5 billion for infrastructure projects as well as 15 priority projects, including Inland Rail, that would have approvals fast-tracked.

In his speech to the Committee for the Economic Development of Australia (CEDA), Prime Minister Scott Morrison said that the Commonwealth had a role to play in the environmental approval of projects. With delays under this legislation costing industry over $300 million in 2019, Morrison said the government aimed to reduce approval times from 40 days on average to 30, a 25 per cent cut over the 2020 year.

“Ultimately, our objective is the streamlining of Commonwealth and state processes to a point of ‘single touch approvals’,” said Morrison.

Australian Logistics Council CEO Kirk Coningham said these changes would be of great benefit to businesses that operate national supply chains.

“The Prime Minister’s commitment to addressing regulatory burdens that increase cost and compliance burdens on businesses that operate across multiple jurisdictions is especially welcome,” he said.

Coningham welcomed news that the Deregulation Taskforce will take a national leadership role in the removal of regulatory impediments from within the Prime Minister’s department.

“ALC agrees with the Prime Minister’s observation that many of our laws have not kept pace with the development of technology. There are numerous opportunities within the freight and logistics sector to more effectively deploy technology to advance the efficiency, safety and visibility of freight movement,” said Coningham.

Coningham said that ensuring continuing flexibility for freight operators will be key to the ongoing resilience of Australia’s supply chains.

Chief executive of Infrastructure Partnerships Australia Adrian Dwyer highlighted that enabling works to start immediately on priority infrastructure projects is a good step, but more should be done to revive the economy.

“Fast-tracking projects that respond to population growth and sectoral transformations in energy, transport, and resource recovery should be the priority moving forward,” he said.

“If the federal government wants to supercharge aggregate demand it should use its balance sheet capacity to deploy more money into new infrastructure projects.

“The federal government can and should redeploy the $60 billion saving from its recalculated JobKeeper program into a bold new infrastructure agenda.”