GROWTH areas like Whittlesea need a public-private financial bond system, underwritten by the government, to meet a massive infrastructure deficit, says a council executive.
Whittlesea council’s general manager of advocacy and communications Griff Davis has asked the state Department of Treasury and Finance to back his bold financial plan which he says would allow councils to pay for major projects.
But four years after his presentation he has had no response.
Mr Davis’s plan would have state and federal governments contribute an initial chunk of capital, about $2 billion, in seed funds which would then be placed in a national infrastructure fund.
Major institutions like Macquarie Bank could then invest in the fixed term, fixed interest fund, as could mum and dad investors looking for a safer alternative to shares.
The infrastructure fund’s earnings would bankroll major projects above and beyond those normally covered by the government, such as the Whittlesea rail extension to Mernda, the Sydney to Melbourne rail freight extension to the Epping fruit and veg market, or the north-south freeway link between the Western Ring Road and the Eastern Freeway.
“It’s not common but there is a process by which it [the infrastructure fund] could be developed,” Mr Davis said. “We were hoping treasury would look at that and consider it as a funding model. But for whatever reason I’m not even getting an opportunity to speak to anyone about it.”
Mr Davis was part of a council delegation that met with treasury officials four years ago to present the idea. He said in 15 years, if nothing changed, Whittlesea would have a $200 million deficit in its infrastructure obligations of childcare, community centres and recreation reserves.
“If we don’t change our thinking, future generations will look back and say why didn’t you do something?”
A treasury spokesperson did not respond before NW went to press.
