New and smarter ways of raising money are needed to finance infrastructure projects that would make life easier for Melbourne’s northern commuters, according to a new report.
In a pre-budget submission to the federal government, the National Growth Areas Alliance (NGAA), of which Whittlesea and Hume councils are members, notes Melbourne is Australia’s fastest-growing metropolis – putting the north at the centre of the city’s crisis in growth areas infrastructure.
The submission, Realising Population Growth’s Potential, urges the Abbott government to consider introducing an urban infrastructure investment fund, offering lower-risk, credit-enhanced returns that appeal to both institutional and mum and dad investors.
Funds would be raised via a special statutory investment vehicle – the Urban Infrastructure Fund – which would then provide seed finance for infrastructure projects that meet criteria set by COAG, the coalition of federal, state and territory governments.
“Funding to address the transport needs of growth areas can take more than a generation to materialise,” the NGAA submission said.
Citing a report last year by Victoria’s Auditor-General, the NGAA submission says deficiencies in Melbourne’s road and public transport networks are creating barriers to people’s mobility, including access to critical services, education and employment opportunities. “The deficiencies are increasing car dependence, pollution and exacerbating traffic congestion at significant community cost,” the Auditor-General’s report found.
In its submission, the NGAA calls for alternative financing options and strategies to address the growing backlog and unlock the potential of urban growth areas to contribute fully to the Australian economy.
NGAA proposes that government and local councils co-operate on priority infrastructure projects. It puts Whittlesea’s O’Herns Road interchange with the Hume Highway on top of the list and asks that $71.7 million be put aside in the 2014-15 federal budget. A further $4.4 million is asked for the new Hume regional aquatic and sports complex.
