14-October-2010
Portfolio Media Releases, Infrastructure, The Economy, Community, Funding
If imitation is the greatest form of flattery, then the Coalition welcomes Labor’s belated examination of the use of infrastructure bonds and tax breaks to leverage new investment in critical economic infrastructure, Acting Shadow Treasurer Andrew Robb said today.
It is reported today by the Australian Financial Review that the government is “examining ways to issue infrastructure bonds” to attract private sector capital as part of a belated bid to help clear an investment backlog of up to $770 billion.
As part of a comprehensive productivity agenda, during the Federal election campaign, the Coalition unveiled a significant policy that would see generous tax breaks of 10 per cent offered to investors on interest income generated for bonds issued under eligible projects.
The Coalition’s plan would not increase government debt as the bonds would be issued by the private sector – not the government – which seems to be Labor’s preferred model.
The Coalition’s new Infrastructure Partnerships Bonds Scheme was designed to quickly unlock tens-billions-of-dollars in new investment in critical infrastructure.
Mr Robb said Labor took no such policy to the election and offered no support to the Coalition’s approach, which it is now looking to mimic.
“While it is pleasing that Labor is belatedly examining Coalition policy, what this confirms is that it went to the election with no genuine productivity agenda in place,” he said.
“Labor likes to talk a lot about reform and boosting productivity, but it has no strategic plan and is now trying to desperately play catch-up, after wasting more than three years and billions of taxpayer dollars.
“Labor has already squandered a golden opportunity to help address our infrastructure backlog, but it is estimated that just 14 per cent of its billions in stimulus spending was directed at economic infrastructure such as rail, roads and ports.
“The Gillard government has a lot of hard work and tough decisions ahead of it before it will be in a position to implement real reforms to boost productivity and to address critical economic infrastructure needs,” Mr Robb said.
Media Contact: Cameron Hill on 0408 239 521