By Vincent Tremaine, Business SA chairman
As a necessary enabler of economic growth, infrastructure has always been a key plank of Business SA’s advocacy agenda.
While we remain focused on helping small to medium sized businesses cope with existing cost and regulatory pressures, we never neglect our role in promoting the next wave of economic growth that will come from well targeted infrastructure investments.
Business SA was a strong proponent of the Northern Connector project for its ability to deliver freight efficiencies to the state’s key growing regions.
We also backed that project as enabling infrastructure for a potential Northern Adelaide Irrigation Scheme which now has substantial funding support from the State Government.
If the full potential of NAIS is realised with a federal funding contribution, it will create significant economic growth opportunities for SA and much needed jobs in the north of Adelaide following Holden’s exit.
Let’s recognise these types of infrastructure projects for what they are: opportunities to transform our economy to deliver more opportunities for all businesses.
Small to medium sized businesses across the economy rely on these considerable investments, particularly from larger businesses, which can bring the necessary capital to the table.
Australia now has a record $2.2 trillion in superannuation assets, up 7.4 per cent in 2016, with total contributions last year alone totalling $103.7 billion.
The Federal Government recently announced an innovative Infrastructure Financing Unit to develop funding models aimed at attracting more private capital into infrastructure projects. While there has been some criticism of the Government’s role here, Business SA would argue that if the market is not doing this sufficiently, why not allow the Government to show leadership in this space, particularly when they are the largest investors in infrastructure?
In Infrastructure Australia’s 2017 priority list, SA had no “high priority projects” and two out of eleven “priority projects” — the Adelaide-Tarcoola Rail Upgrade and the Eyre Peninsula deep-sea port. The latter reliant on substantial mining activity.
The fact is that our state is failing to attract enough interest in infrastructure funding needs to be addressed through an independent infrastructure authority.
Such an authority could also provide advice to a State Infrastructure Fund and collaborate with other independent authorities around the country to ensure SA is better positioned to attract infrastructure capital.
Business SA recognises some of the recent criticism of the State Opposition’s GlobeLink proposal for a freight only airport and city ring route.
There may well be aspects of the proposal that don’t ultimately stack up after detailed costings and analysis.
However, we need governments to be always open to visionary and transformational infrastructure projects and not be content with the status quo.