New Australia Infrastructure Corporation to buy up assets for $4.5B in the public sector
Posted On July 18, 2021
Posted June 15, 2018 12:05:09The Federal Government is considering acquiring assets to upgrade Australia’s national infrastructure.
Key points:The Government is finalising a proposal for the $4 billion buy-up of infrastructure companiesThe Federal Department of Infrastructure, Communities and Transport (DFIST) has also identified infrastructure management as a priorityThe Federal government has set aside $1.9 billion to purchase assets and services to boost the Australian economyA deal could bring more than a dozen new infrastructure companies to AustraliaThe Australian Government is currently working through a proposal to buy out major infrastructure companies.
The Government’s decision will pave the way for an infusion of cash into the public and private sectors to support growth and jobs in Australia.DFIST, which oversees the country’s infrastructure and infrastructure development, has also been named as a potential buyer for the companies, according to The Australian Financial Review.
The Federal Infrastructure Minister, Andrew Robb, said it was crucial to invest in infrastructure because of the “unimaginable potential” it holds.
“We’ve got an infrastructure system that is under-funded by $7 trillion, under-capitalised, that we need to be investing in to grow the economy and to support job creation,” Mr Robb said.
“The Government will look at all the options available to it, and we will work with all our partners in the private and public sectors to make sure that we have the best possible infrastructure for the future.”
The Federal Cabinet on Wednesday approved the purchase of a $1 billion stake in three private infrastructure companies in an investment of $4bn.
Mr Robb said the purchase was part of a larger package of measures to boost Australia’s economy and employment.
“It will enable Australia to meet its future growth objectives while ensuring we have a resilient and competitive economy for years to come,” he said.
The announcement comes after the Federal Government last year announced it would seek $2.6 billion in additional funding to boost its infrastructure spending, and also announced the creation of an Infrastructure Finance Corporation (IFCC) to help support private investment in the sector.
“I have been working hard to put a plan in place to deliver the infrastructure investment that will create jobs and economic growth for our country and our communities,” Mr Robinson said.’
We’re going to build the future’Australia’s Infrastructure Council (IAC) is also planning to meet with key public and industry stakeholders in June to discuss a potential $1bn investment in infrastructure.
“This investment is needed to support our economy and jobs while supporting the infrastructure and investment needed to deliver a stronger and more resilient economy in the years ahead,” the organisation’s president, Michael Denev, said.
Topics:government-and-politics,government-of-australia,public-sector,economics-and,business-economics,business,businessweek,internet-technology,technology-and_communication,internet,austra,nsw,vic,sydney-2000More stories from Victoria