CCF WA has welcomed a Federal Government initiative to clearly identify ‘good debt’ used for infrastructure investment and has suggested that the Western Australian Government take a similar approach. With major asset sales off the agenda, debt financing of infrastructure can help build the vital infrastructure that will make WA more productive and competitive, and a better place to live.
CCF WA CEO Jeff Miller said Canberra’s decision to assign the level of Government debt across individual areas of spending in this year’s Federal Budget was an important step towards educating taxpayers about where their dollars go.
“Governments need to demonstrate the difference between ‘good debt’, used to finance productive infrastructure, and ‘bad debt’ used for recurrent spending such as salaries and other operating expenses,” Mr Miller said.
CCF National CEO Chris Melham welcomed the recent announcements by Prime Minister Malcolm Turnbull, Federal Treasurer Scott Morrison, and Federal Urban Infrastructure Minister Paul Fletcher that good debt will be used to help fund productive and critical rail, port and road infrastructure in Australia.
“The CCF is calling for a new phase of productive public infrastructure investment by taking advantage of low interest rates, lower industry costs, shovel-ready projects with proven productivity benefits initially, and then on maintaining a rolling, long term infrastructure investment program that provides industry confidence and certainty”, Mr Melham said.