Public Private Partnerships (PPPs) are one form in the range of procurement options that are available for public infrastructure. Being one of the newest of the suite of infrastructure delivery methods available to Government, intense interest is generated whenever Governments consider their use.
PAEC considers issues of efficiency and effectiveness in expenditure of public funds and our budget estimates and budget outcomes reports often comment upon major infrastructure projects. I trust this report is an additional tool to assist in the analysis of the substantial investment by the Victorian Government in new infrastructure assets - an investment for which $3.66 billion was allocated in the last budget, bringing the Victorian Government's total estimated investment in new infrastructure assets in 2006-07 to $4.9 billion.
The Committee's inquiry was initiated by the former Public Accounts and Estimates Committee and deals with many complex issues.
The Committee's focus in this inquiry has been governance arrangements, risk, parliamentary accountability, the public interest, economic benefits and changes in international accounting standards relating to PPP projects.
During the latter part of our inquiry the Committee became aware that the government has taken a number of steps to improve the Partnerships Victoria policy and practices. We recognise the Victorian Government's leadership in introducing PPPs to Australia and that, as lessons have been learnt from past projects, changes have been made to optimise the principles and guidance materials that underpin these arrangements.
As a result of PPPs the public sector has undertaken more rigorous assessment of project briefs and detailed planning of infrastructure projects, resulting in most projects being delivered on time.
Private investment in public infrastructure is not just a partnership between government and business. It is a partnership between government, business and the community. When all three are confident of the policy and delivery framework, private investment is a viable option for providing public infrastructure and/or public services.
The committee noted the public perceptions surrounding PPPs and suggests that greater reporting and in particular a succinct project summary signed off by the Auditor-General would assist public understanding.
I thank the members of the Public Accounts and Estimates Committee for their bi-partisan endeavours on a complex topic, as well as all witnesses for their oral and written presentations to the Committee over a lengthy period. I acknowledge the initial work undertaken by the 54th Parliament's PAEC, the PAEC staff especially Executive Officer, Ms Michele Cornwell and specialist advisor, Mr Trevor Wood.
We trust that the insights, conclusions and recommendations of this report will assist future infrastructure and PPP policy development in Victoria.