15 February 2007 Ms Zoe Wilson Senior Advisor Office of the Deputy Prime Minister & Minister for Transport Parliament House Canberra ACT 2600 Dear Zoe, RE:- Auslink National Land Transport Programme Phase II 1. Introduction – Auslink Generally Infrastructure Partnerships Australia (IPA) appreciates the opportunity to make an informal submission to you in regard to our views on the priority projects for Phase II of the Auslink National Land Transport programme. IPA applauds the Deputy Prime Minister for the foresight and national leadership that has been brought into the infrastructure debate. The Auslink programme is the first time in Australia’s history that the Government has developed a strategic plan to streamline freight links between production and population centres, and producers and our nation’s port facilities. Further, the Auslink programme’s adherence to principles of transparency and contestability in terms of private sector involvement in ownership, financing and operation of national land transport infrastructure assets is commendable. This informal submission will primarily focus on specific projects. In line with the broad policy objective of Auslink, this paper will only focus on projects that will supplement supply networks. However, this informal submission also suggests a number of broader policy issues which may warrant attention as you move to lay the foundations for the next round of investment in Australia’s national transportation system. 2. A Change to the Policy Framework In moving forward toward the second phase of the project, there are a number of policy concepts which may be worth revisiting; As you are in essence seeking specific projects, these policy imperatives will be dealt with succinctly; o Regulatory regime for Infrastructure – Taxation & Equity As a broad policy objective, the Commonwealth could look at models apart from (or in conjunction with) significant s.96 (special purpose) grants to the states. One project financing option may be for the Commonwealth to take equity in an asset, for instance in a toll road. Using equity investment would allow the Commonwealth to fund a project, take an ongoing interest in its management over the asset’s life, and provide scope to reinvest the dividends towards maintaining the quality of the asset in the years ahead. The Australian Government should also examine taxation frameworks and other international funding models to promote infrastructure investment and best practice. o Need for genuine partnership – a new federalism. While ‘common wisdom’ holds to the notion that infrastructure is the preserve of the states, in actuality without Commonwealth support in terms of s 96 (special purpose) grants, many important infrastructure assets would simply not exist. Further, national leadership in infrastructure is required to overcome the often competing, geographic interests of the states. Presently, the Commonwealth has a very limited capacity to provide true leadership in terms of required infrastructure assets. IPA believes that the Commonwealth should appoint a dedicated Minister for Infrastructure. The appointment of such a Minister (and creation of a supporting office within DoTARS) would allow the Australian Government a greater capacity to oversee the use of grants, as well as identifying nationally important projects. o Improving gateway processes ~A standardised process across jurisdictions. A stringent gateway process is vital in moves by government to improve the selection management and investment in infrastructure assets. Across Australia, state government have introduced gateway processes to ensure economic benefit is maximised in project selection and are rigorously monitored and assessed through to completion. Victoria is recognised as one of the leading states in this regard, and is commended as a possible national template for further Auslink project assessment. The introduction of a standardised gateway process across jurisdictions would allow greater comparative oversight of projects by the Australian Government, and provide the foundations for best practice across government. 3. Nationally Significant Projects As per our discussions in Canberra, it is our pleasure to include our list of high priority, nation building projects below for your information; Project Description Jurisdiction North South Rail This project would provide a new rail corridor to link Australia’s major cities, National Corridor Melbourne, Sydney and Brisbane. Providing a more efficient inter-capital freight route would increase rail’s competitiveness with road, and slash up to 8 hours off the present travel times. M4 East & M4 to This project would deliver the eastern extension to the M4 motorway, from NSW Botany Tunnel Strathfield to the Anzac Bridge, as well as a 13 km tunnel link to Port Botany. This project would increase efficiency of road freight movements to and from Port Botany. F3 Connection The construction of the F3 connection, to link it with the Sydney roads NSW network is a pressing priority, particularly with the growth of industry in the Hunter and the continued growth of Port Newcastle. Pacific Highway Upgrade of remnant sections of Pacific Highway between Sydney and NSW Upgrade Brisbane, providing a safe, efficient inter capital road freight link. F6 Freeway Completion of the northern section of the F6 Freeway, completing the NSW Extension missing link on Sydney’s radial freeway network and providing the freight linkage between Port Kembla and Sydney. This project is more pressing as Port Kembla’s capacity will expand folloowing East-West Growth Providing linkages between the East & West growth corridors via VIC Corridor Integration underground road, passenger and rail freight links; Ipswich Motorway Upgrade of the Ipswich Motorway, including the 8 km by pass to the north of Qld Upgrade & Goodna Goodna. Bypass Sydney Ports Construction of a new intermodal facility at Enfield to service the expanded NSW Intermodal Facility port Botany. Intermodal facility will, necessarily require a dedicated freight line. Liverpool Range Construction of a new tunnel to efficiently transport coal from the Gunnedah NSW Tunnel basin to Port Newcastle. Melbourne Channel A project to deepen the channel servicing Port Melbourne. Presently, 30 per VIC Deepening cent of shipping are unable to utilise Port Melbourne because of their requirement for a deeper draught. Southern Sydney Construction of a new 35 km dedicated freight link from Macarthur station to NSW Freight Line east of Sefton. Completion of the The completion of stage 3 and remnant sections of the Geelong Bypass. VIC Geelong Bypass This project will improve road freight efficiency through Geelong. TransApex Complete subterranean network to streamline freight efficiency through Qld greater Brisbane. Remnant sections include; Airport Link, Hale Street Link, Northern Link and East West Link. 4. Conclusion IPA appreciates the opportunity to submit our views on projects for Auslink Phase II, and we trust that these projects fit within your project parameters as you move to secure the next round of Australia’s growth. Zoe, as the peak body in infrastructure in Australia, IPA is always ready to assist you, your office and the Deputy Prime Minister as you move to develop the policy frameworks to equip Australia for our next round of growth. Please don’t hesitate to contact us if you would like any further information on projects or policies relating to freight transport in this country, or any other area in which you may seek an industry perspective. In the meantime, we would like to once again extend our thanks for providing this informal opportunity to have input into the next round of Auslink. Warm regards, BRENDAN LYON Manager, Policy.