In a speech to an International Symposium on Infrastructure, Australian Competition and Consumer Commission Chairman Rod Sims said infrastructure is a key enabler of productivity growth.
Covering sectors including road transport, shipping, electricity, communications and water, Mr Sims discussed the key determinants of efficient infrastructure.
“For infrastructure to play its full role in driving productivity growth, we must get at least three things right,” he said.
“First, we need to make the right investment decisions, with the highest cost benefit ratios. In Australia, we do not always do this, to our cost.”
“Second, we need efficient investment, made according to appropriate regulatory rules and standards.”
Mr Sims said that efficient infrastructure is important to Australia’s productivity performance. He discussed the need for effective regulation for Australia to reach its potential.
“Third, we need the right price signals and incentives to make the best use of existing and new infrastructure. As everyone involved in infrastructure knows, pricing and incentives are fundamental.”
The Chairman spoke about the important role that regulation should play in the productivity debate, including the rules that policy makers put in place to govern particular sectors.