16-April-2009
Portfolio Media Releases, Infrastructure, The Economy
The Rudd Government’s promise and obligations regarding major infrastructure have been further stymied by the “magic pudding” build up of massive public debt and other Federal Government incompetence.
Overnight, Government briefing of selected journalists foreshadowed further delays in decisions and actions on major infrastructure projects despite Mr Rudd going to the last election claiming to have a detailed infrastructure plan ready for implementation.
Mr Rudd made these claims more than a year and a half ago yet not one substantial infrastructure decision has been made to date, except for a broadband proposal which is so empty and devoid of analysis that it exposes the dangerous level of panic and incompetence that so characterises this Government.
Instead, this Government has been consumed with distributing tens of billions of dollars of handouts to a bemused community, providing sweeping government guarantees which are leading to huge distortions and creating a government bank to facilitate more selected bailouts.
It is an attitude of spend, spend, spend and worry about tomorrow, tomorrow.
Mr Rudd is being seen for what he is – a debt builder not a nation builder.
All this spending and debt and yet not one cent spent to date on major economic infrastructure that would enhance productivity and help Australia rebound strongly when we emerge from this recession.
Not only has this Rudd Government racked up massive debt while failing so miserably to process and decide on major infrastructure projects, but Mr Rudd has wasted the crisis in terms of cutting through mountains of federal, state and local government red tape.
The economic crisis provided a unique political opportunity to reform highly complex and expensive tendering processes, the myriad of planning and project approvals and the financial instruments and risk sharing for major projects. Nothing of any consequence has occurred.
The Government has failed on many fronts:
• The build-up of debt will crowd out private sector investment,
• The failure to shorten the time between putting projects up and getting shovels in the ground will see investment funds go elsewhere, and
• The failure to properly process and make considered decisions on major infrastructure projects is unpardonable incompetence at this critical time.