Berejiklian government sticks to its guns on asset recycling & infrastructure: land registry, Westconnex next
08 February 2017
IPA: The Berejiklian Government’s confirmation that the State’s land registry functions will be leased to raise money for infrastructure is a welcome signal that NSW will continue needed budget reforms to sustain the state’s unprecedented infrastructure construction boom, says Infrastructure Partnerships Australia.
“NSW is leading the country on every indicator in part because of the high levels of confidence and solid economic activity underpinned by the State’s unprecedented investment in public infrastructure,” said Brendan Lyon, IPA’s Chief Executive.
“NSW is funding well over 50 cents in each national infrastructure dollar being spent and can do this only because asset recycling has freed up the billions for new hospitals, railways and roads.
“The case to offer the NSW land
registry to investors is straight forward and very clear, despite the
opposition from the real estate agent’s lobby and a few other
predictable opponents.
“The property industry has been
legitimately arguing for caution on applying property value capture
mechanisms to pay for new transport projects, but their arguments
against leasing the land registry ring very
hollow.
“South Australia and Victoria are
contemplating the same thing with their registries, because they also
need the money for infrastructure and because they know it’s a low risk
transaction.
“NSW has a huge job ahead to get
the infrastructure needed for population growth and money does not
grow on trees, it’s raised either from higher taxes, higher public debt
and bigger tolls, or by finding money by
recycling existing state assets.
“The Government’s next major milestone is the sell down of the WestConnex motorway.
“Getting a good return for
WestConnex will be critical, because the sale proceeds from the first
two stages pay the $7.2 billion cost of
WestConnex Stage 3 that links the M4 to the airport and port precinct.”
--ENDS--
Source: Infrastructure Partnerships Australia - wwww.infrastructure.org.au
Contact: Sarah Dagg T 0438 380 464
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