ISCA welcomes federal government's infrastructure spend

The $15.2 billion infrastructure investment announced in the 2021 federal budget can be leveraged to deliver an even greater long-term upside, as suggested by the Infrastructure Sustainability Council of Australia.

“We welcome the federal government’s continued commitment to an infrastructure-led recovery, which now represents more than $100 billion over 10 years,” ISCA’s chief executive officer Ainsley Simpson said.

“This is a once-in-a-generation opportunity to achieve a transformative impact. By leveraging planning, policy and procurement, the federal government can send strong clear market signals about our national priorities,” she said.

She also emphasised the role of infrastructure spend on social, cultural, environmental and economic performance metrics, which she said could support productivity and livability in both urban and regional areas.

“Aligning this infrastructure investment with global best practice can deliver up to $2.40 in benefit for every dollar spent,” Simpson said.

She also welcomed the federal government’s commitment to vocational training, STEM scholarships and childcare subsidies. As part of the budget 2021-22, the government has committed to investing $6.4 billion to build the skills that Australia’s economy needs. This includes an additional $2.7 billion to extend the Boosting Apprenticeship Commencements program.

“These measures, together, will create more equitable and inclusive workplaces, and also represents an opportunity to upskill Australia’s workforce to deliver the ambitious infrastructure pipeline ahead,” said Simpson.

ISCA also welcomed the $600 million in funding for the new National Recovery and Resilience Agency, established in response to the Royal Commission into National Natural Disaster Arrangements. “This agency will also increase our focus on long-term disaster risk reduction and intergovernmental collaboration,” Simpson said.

“Extreme weather events, systemic shocks like COVID-19, stresses from climate change and ageing infrastructure all highlight the need for us to prioritise communities when we are planning, delivering and operating infrastructure assets.

“We also know that investors want assets that deliver long term returns, which is why they are demanding greater scrutiny of social, environmental and governance outcomes.

Simpson said the infrastructure sector will meet next week to begin discussions into short-term opportunities that will improve collaboration across the sector, while also looking at how infrastructure assets are financed, designed, constructed, operated and used over the long term.

“Infrastructure is the great enabler and the foundation of a vibrant society. Together with our talented and highly motivated sector, we can enable a thriving, resilient, inclusive Australia through the design, delivery and operation of world-class sustainable infrastructure,” Simpson concluded.