Presentation on theme: "Moving Australia towards a single national transport market Committee for Economic Development of Australia Adrian Kemp Associate Director Shangri-La Hotel,"— Presentation transcript:
Moving Australia towards a single national transport market Committee for Economic Development of Australia Adrian Kemp Associate Director Shangri-La Hotel, Sydney 14 October 2009
1 An inquiry into a National Competition Policy Australia is facing major challenges in reforming its economy to enhance national living standards and opportunities. There is the challenge of improving productivity, not only in producing more with less and deploying scarce assets widely, but also in becoming better at making and exploiting new discoveries, whether in technology, resources, fashion or ideas. Coping with these challenges is an enormous task for any country,… … Australia faces an additional complexity in tackling these challenges, as most reforms require action by up to nine governments.
2 Australian Gross Domestic Product per capita Source: Australian Treasury, August 2009
3 Australian Multifactor Productivity Source: ABS, Australian System of National Accounts /99 = 100
4 Capital expenditure by industry
5 Expected Freight Demand Source: Department of Infrastructure, Transport, Regional Development and Local Government Bureau of Infrastructure, Transport and Regional Economics, Information Sheet 34: Road and rail freight: competitors or complements?, July 2009.
6 Two Industries – Two Companies Government entity 4,300 employees ~22,000 km of network $1.3 billion annual budget $8.3 billion asset value Company B Government entity 7,000 employees ~21,000 km of network $3.8 billion annual budget $80 billion asset value Company A
7 A Hilmer style reform framework for transport infrastructure 1.Structural – reforms to the way infrastructure is provided 2.Investment framework – reforms to how capital expenditure is prioritised 3.Pricing framework – reforms to how infrastructure services are priced