Public investment is currently rising
Nationally , public infrastructure investment rose in tandem with the resources investment cycle during the 2000s . However , as resources investment began shrinking , publically funded infrastructure investment also declined , particularly between 2010 / 11 ( the peak ) and 2014 / 15 ( the trough ) inclusive . While Australia performed relatively well against global peers with regards to infrastructure investment during the second stage of the resources boom ( 2008 and 2013 ), the performance was less than satisfactory regarding the quality of infrastructure spending , not to mention the downward trajectory in public investment since 2010 5 .
This situation is turning again . Public investment rose in 2016 / 17 , on top of a small increase in 2015 / 16 . Forward projections from the 2017-18 Commonwealth and State Budgets , along with BIS Oxford Economics ’ own analysis of major projects , indicate that public investment will rise further in 2017 / 18 , albeit at a much weaker pace than in 2016 / 17 , but will then level out and decline once more .
Much of this growth ( both in the 2000s and now ) reflects the ongoing catch-up in infrastructure investment required to keep pace with ( albeit weaker ) population growth and an ageing asset base . While not perfect measures , several studies have pointed to underinvestment in infrastructure in previous decades resulting in infrastructure gaps at the national level . Engineers Australia estimated that the infrastructure shortfall is $ 800 billion while Infrastructure Partnerships place the shortfall at $ 770 billion 6 . The May 2015 release of the Australian Infrastructure Audit by Infrastructure Australia also found evidence of an infrastructure deficit noting that existing infrastructure gaps in urban transport and regional water will continue to widen unless infrastructure investment is increased 7 . This outcome was reinforced in Infrastructure Australia ’ s Australian
Infrastructure Plan published in February 2016 and the latest Priority List published in November 2017 which included a list of high priority and priority initiative infrastructure projects that Australia needs over the next 15 years across roads , railways , water , wastewater and energy .
In Victoria , the following is listed as High Priority Projects ( where a full business case has been completed and positively assessed by Infrastructure Australia Board ). A High Priority Project addresses a major problem or opportunity of national significance .
• Melbourne Metro Rail ( Medium term delivery timescale )
• M80 Ring Road upgrade
High Priority and Priority Initiatives ( where business cases are yet to be completed and assessed ) include for the near and medium term :
• Murray Basin Rail Project
• Hoddle Street capacity upgrade
• Cranbourne & Pakenham rail lines upgrade
• Improve the connection between the Eastern Freeway and City Link
• Preserve corridor for Melbourne Outer Metropolitan ring Road / E6
• Melbourne level crossings removal
• Melbourne Airport to CBD public transport capacity
• Melton Rail Line upgrade
• Complete Metro Ring Road from Greensborough to the Eastern Freeway
• Melbourne outer northern suburbs to CBD capacity upgrade
• Melbourne Airport third runway
• Melbourne container terminal capacity enhancement
5
McKinsey Global Institute ( 2016 ) Bridging Global Infrastructure Gaps , p10-12 .
6 http :// www . afr . com / opinion / the-australian-infrastructure-deficit-that-isnt-20160307-gnd36n
7
Infrastructure Australia 2015 , “ Australian Infrastructure Audit ”, Commonwealth Government , Canberra
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