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The Forum > Article Comments > All take and no give puts economy in reverse > Comments

All take and no give puts economy in reverse : Comments

By Craig Emerson, published 17/2/2005

Craig Emerson argues that Australia has been starved of public infrastructure investment.

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Yep, when socialism prevails infrastructure curtails.
Posted by Arjay, Friday, 18 February 2005 9:04:48 PM
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Emersom makes the important point:
"Australia urgently needs a national infrastructure plan involving the Commonwealth, the states and the private sector to identify our infrastructure requirements and make sure they are met. And the regulators need to recognise that the owners of distribution networks cannot maintain and replace these vital assets if their regulated access charges are screwed below replacement cost."

Yes, a nationally co-ordinated and consistent plan is necessary and long over due. One important ingredient to that plan must be PPP, which Emerson asserts has failed. And let's not forget BOO and BOOT arrangements.

In many cases PPP have not failed, in fact international examples show that PPP/BOO/BOOT arrangements can and have been very successful. In the Australian context difficulties have arisen for two reasons.

The first is that it is a relatively new commerical arrangement, and as per new arrangements there will be difficulties.

The second reason lies with State governments. In large part the problems have arisen because of their lack of technical and commerical competence to set out the tender requriements, cost the project appropriately, and then in turn manage the JV.

Finally, Emerson makes some good points laying out problems. But apart from calling for a national summit/plan, how else does the Federal ALP suggest the problem of capacity constraints be fixed? I suggest they haven't got a clue - which is unfortunate.

Roberto
Posted by robertomelbourne1@bigpond.com, Friday, 18 February 2005 9:23:55 PM
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>>In many cases PPP have not failed, in fact international examples show that PPP/BOO/BOOT arrangements can and have been very successful.<<

Do you have some examples to share? It would be instructive to learn exactly who has benefited most from these success - shareholders, government or customers.
Posted by Pericles, Saturday, 19 February 2005 10:31:21 AM
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