The first splash has now settled on the federal government’s infrastructure review but the ripples continue with discussions moving from the initial winners and losers to the long-term implications particularly across the states and territories.
Fifty projects lost federal funding, with $6.8 billion redirected to 38 existing and planned projects to pay for labour and material cost overruns.
Less headline grabbing but no less hard hitting are the recommendations of the review, which include reforms that deliver “greater transparency and certainty”.
The call for greater infrastructure pipeline transparency and certainty was one that our members raised at every roundtable, forum and committee meeting in 2023. And it was a message the Consult Australia team echoed throughout the halls of power in every meeting with ministers and policymakers.
The confidence of our industry is underpinned by our ability to see what’s ahead on the horizon. The review process, while necessary, has been disruptive for businesses looking to plan for the future. Absolute clarity on the full implications of the review for state and territory pipelines remains a priority for our members.
Infrastructure is a powerful economic lever, but it must be backed by a coordinated approach that ensures governments maximise taxpayer dollars and support a thriving industry. This means understanding the business case for each project, engaging authentically with industry and the community, and then prioritising the projects that will deliver the best long-term outcomes.
We must begin to think differently about our future infrastructure investment than we did in the past, because the challenges of the future are different. Take net zero, which must be achieved against a backdrop of population growth, cost escalation and economic uncertainty.
Meeting net zero targets will be impossible without digital innovation, which is why Consult Australia has been loudly championing digital by default this year. But digital by default is not possible without changing the way governments contract and procure, so risk is evenly shared and innovation fairly rewarded.
Each step we get right leads us another step up a set of ‘virtuous stairs’ to something better than what we had before. Each step we get wrong… Well, we can’t afford to get it wrong.
How we develop new collaborative contracting to share risk and drive innovation will be first order business at Collab X on 29 February in Canberra. Now in its third year, CollabX is hosted by Consult Australia and the Department of Defence. An early bird discount for Consult Australia members closes on 18 December and we would love every leader with a stake in the future to join us.
We are also looking forward to celebrating industry excellence at the Consult Australia Awards Gala on 14 March in Sydney. Further afield, Consult Australia’s Future Leaders Program is expanding to Melbourne and early bird rates are available for members until 9 February.
On behalf of the team at Consult Australia, I wish everyone in our member companies plenty of time to wind down over the holiday period. Our team has written to 103 government agencies over the last few months, asking them to pause procurement period so people can get the break they deserve.
So please put your feet up over and enjoy the festivities. Our offices close on 22 December, but our team will be back on 15 January 2024, ready to champion digital innovation, collaborative contracting and the interests of our members so we can all step up together in 2024.