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NSW ELECTION 2011: Getting the Fundamentals Right

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NSW ELECTION 2011: Getting the Fundamentals Right NSW ELECTION 2011: Getting the Fundamentals Right March 2011 Infrastructure Partnerships Australia is a national forum, comprising public NSW ELECTION SUBMISSION 2011 and private sector CEO Members, advocating the public policy interests of Australia’s infrastructure industry . FOR MORE INFORMATION PLEASE CONTACT: BRENDAN LYON CHIEF EXECUTIVE OFFICER INFRASTRUCTURE PARTNERSHIPS AUSTRALIA Level 8, 8-10 Loftus Street, Sydney NSW 2000 PO Box R1804, Royal Exchange NSW 1225 P | 02 9240 2051 E | [email protected] NSW ELECTION SUBMISSION 2011 CONTENTS CONTENTS 3 EXECUTIVE SUMMARY 4 RECOMMENDATIONS 5 1. INTRODUCTION 8 2. STRATEGIC PLANNING, PROCUREMENT AND FUNDING 9 2.1 – Infrastructure NSW 9 2.2 - Infrastructure Planning 10 2.2.1 – Need for a Long Term Infrastructure Plan 10 2.2.2 – Major Infrastructure Planning Approvals 11 2.3 –Funding and Procurement 12 3. TRANSPORT 14 3. TRANSPORT 15 3.1 – Public Transport 15 3.1.1 – Urban Rail 15 3.1.2 – Metro 18 3.1.3 – High Speed Rail and Regional Rail 20 3.1.4 – Light Rail 21 3.2 – Roads 21 3.2.1 – Key Road Projects 21 3.3 – Freight and Ports 24 3.4 – Additional Transport Considerations 25 3.4.1 – Building for Future Capacity 26 3.4.2 – Preserving Corridors for Future Infrastructure 26 4. ENERGY 28 NSW ELECTION SUBMISSION 2011 EXECUTIVE SUMMARY The 2011 election provides a generational opportunity for New South Wales to reform its practices and policies and to begin the long task of rebuilding the capacity and condition of the State’s infrastructure networks. New South Wales is the nation’s largest economy. It is the country’s key financial hub and the global gateway. Yet New South Wales has been falling behind because it has not sustained a suitable level of investment in productivity enhancing projects – or in the social infrastructure networks that will sustain quality of life in the face of population growth. One key challenge has been the lack of an integrated, long-term, strategic infrastructure plan. Too often, projects have been announced and subsequently cancelled at the whim of governments. That’s why this document’s central theme is the need for new structures of government that will drive collaboration across government toward the best project and policy outcomes. The Coalition’s commitment to form a new coordinating infrastructure agency, responsible to the Premier and Parliament, is an important step forward. It will allow a process where Departments bid for their projects to be included on a real, state-wide infrastructure plan matched to the capacity of the budget. New South Wales needs to deliver a real infrastructure plan that spans the decades ahead; that delivers long-term certainty about where population growth and economic development will occur – and sequence the delivery of the transport, health, education and utilities networks that will need to be delivered to accommodate that growth. A new plan that stands up to scrutiny is critical. But funding the level of investment is a key challenge. The infrastructure backlog is so significant that real thought needs to be given to how practices can be changed to free up the capacity of the State to bring projects forward. That will mean asset privatisations; and it will also mean reforms to the work practices of government – freeing up operating expenses to be invested in new capital projects. And, it will require much greater consideration to how private investment can be encouraged to deliver the backlog of public infrastructure projects in this State. The recommendations in this paper detail the key policies and projects that need to be advanced to allow New South Wales to meet its infrastructure challenges and equip the State for growth. NSW ELECTION SUBMISSION 2011 RECOMMENDATIONS The next Government of New South Wales should: Planning, Procurement and Funding 1. Establish Infrastructure NSW to oversee an audit of the State’s infrastructure and work with line agencies to identify a state-wide, long-term infrastructure programme; and provide oversight in the delivery of major projects. 2. Task Infrastructure NSW to develop a long term infrastructure plan, identifying existing and emerging infrastructure shortfalls and detailing project priorities over a 20-year timeframe. 3. Develop a new major infrastructure approval pathway to replace Part 3A, ensuring a streamlined, transparent approval process for major public infrastructure projects, while maintaining public confidence. 4. Undertake a full public audit of the State’s financial position prior to the first budget after the election. The audit should identify opportunities for asset sales, contracting out arrangements and other reforms to improve the states ability to fund better services and better infrastructure. 5. Spell out a pipeline of PPP projects, radically enhancing the pipeline of opportunities for private investment in public infrastructure. Infrastructure NSW should also be tasked with delivering new options to facilitate a PPP to deliver the M5 East motorway, within the first year of government. Transport 6. Develop an integrated, long-term and committed transport plan to finally spell out the future of transport in NSW. 7. Commence the North West Rail Link in the next term of government; and as with major rail projects proposed for Melbourne and Brisbane, it should be assessed for delivery under a Public Private Partnership. 8. Investigate the options to progress CBD station upgrades by harnessing the private sector through a PPP. 9. Continue the delivery of the South West Rail Link to be commissioned in 2016. 10. Prioritise and sequence the Western Express and City Relief Line as part of a uniting transport plan for Sydney. 11. Continue and accelerate the completion of the Rail Clearways programme to untangle the CityRail network and increase network reliability. NSW ELECTION SUBMISSION 2011 12. Work collaboratively with Reliance Rail and RailCorp to expedite the resolution of remaining issues to allow the successful introduction of the Waratah Trains to the CityRail network. 13. Engage the public in an informed and considered debate about the future role of Metro rail in Sydney, clearly articulating the importance and benefits of such a system, to deliver a long-term plan for an eventual metro system; allowing a future metro rail network to be considered in the context of a long- term infrastructure plan for New South Wales. 14. Engage with the Commonwealth in the high speed rail feasibility study process to ensure the best route selection is achieved and the corridor is future proofed. 15. Replace the existing XPT and Xplorer trains with a new fleet of regional trains, potentially through a PPP, to boost customer satisfaction and efficiency. 16. Consider the role that an expanded light rail network could play – particularly between Sydney’s south east and Moore Park precinct in advance of future metro connections. Such consideration should be undertaken by Infrastructure NSW and Transport NSW in the context of formulating the long-term infrastructure plan. 17. Finalise planning of the M5 East, then put the project to market in the next term of government, as a Public Private Partnership. 18. Finalise negotiations with Interlink to allow for the expansion of the M5 South Western Motorway in the next term of Government. 19. Prioritise and sequence the delivery of the F3-M2 link as part of the long-term infrastructure plan. 20. Prioritise and sequence the delivery of the M4 East as part of the long-term infrastructure plan. 21. Seek further Commonwealth support and provide additional State funding to complete the duplication of the Pacific Highway by 2016. 22. Investigate a future Bells Line of Road corridor and ensure it is protected for future development as part of the long-term infrastructure plan. 23. Undertake further feasibility work on the F6/M6 corridor and prioritise it as part of the long-term infrastructure plan. 24. Develop a uniting freight strategy to inform the state-wide infrastructure plan, mapping out future demand for sea, road, rail and air freight and future infrastructure upgrades and intermodal terminals that will be required to meet this growth. Energy NSW ELECTION SUBMISSION 2011 25. Undertake a considered privatisation of the remaining generation assets and invest realised capital in major infrastructure projects. NSW ELECTION SUBMISSION 2011 1. INTRODUCTION The 2011 NSW State Election provides an opportunity to refresh the State’s approach to its many infrastructure challenges. The principal call of this paper is the need for a long-term, sustained and rigorous infrastructure plan that provides certainty about the projects that will be delivered over time. Already, there is clear evidence of significant infrastructure shortfalls. Overcrowding of public transport in peak periods sometimes exceeds 130 per cent; congestion costs Sydney’s economy more than $5 billion each year; and last year, the State suffered more than 10,000 power outages. Significant issues also exist in terms of the quality and capacity of key public services, including social housing, public health and education facilities. The size of the infrastructure backlog is enormous. The State Government’s transport blueprint, which was never formally released, contained transport projects estimated to be worth more than $150 billion. It is estimated that around $17 billion needs to be invested in energy distribution networks; and tens of billons more into new and renewed energy generation. On top of these existing challenges, New South Wales is facing significant and sustained population growth. The State’s population will surge from around 7.2 million people presently, to more than 9.1 million by 2036. This will place a significant call for investment in new and renewed social infrastructure and public services, particularly in health, education and justice facilities. In recent times, the State’s infrastructure strategy has been subjected to a regrettable shifting in priorities. This has resulted in a lack of progress in terms of new projects, and has damaged the reputation of New South Wales as a place to do business.
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