Political instability the main barrier to investment in Queensland public infrastructure

Investment in public infrastructure in Queensland is being held back by onerous government processes, costs and time, according to a new report.

The Infrastructure Association of Queensland’s report found that investors and developers are attracted to the state’s strong fundamentals, legal frameworks and regulatory environment.

The state’s successful track record of infrastructure projects was another drawcard.

But while 88% of investors said they were ‘highly likely’ or ‘likely’ to invest in Queensland, 93% cited political instability as a barrier to private sector investment.

The report looked at small, medium and large companies involved in Australian infrastructure, including infrastructure owners, fund managers, sovereign wealth funds, banks and consultancies. 

Each respondent said they were already investing in Queensland infrastructure and one third had at least 50% of their investment net worth in Queensland.

Almost a third of participants held global investment portfolios valued at $10 billion or more.

Source: IAQ

“Infrastructure is a strategic sector for Queensland and its political leaders. As astute investors continue to scan the world for value, we require a regulatory and investment regime that is able to outlive short term government cycles or a political majority,” said IAQ Chief Executive Officer Steve Abson.

“If Queensland wants to be Australia’s most innovative and dynamic trading economy – a magnet for global investment – it’s clear from this research that more efficient government processes should be introduced and a ‘go get em’ attitude must prevail.

“Overwhelmingly, the research found that the private sector wants to play a greater role in providing Queenslanders with critical infrastructure.

“A frequent misconception is that the private sector must receive financial support from the tax-payer in the form of grants, tax relief and guarantees. If people are better informed of how mixed funding sources can deliver infrastructure quicker and without the public debt burden, Queenslanders will embrace it.”