In Australia, Commonwealth, State, Territory and Local governments provide around 72% of all economic and social infrastructure (Regan 2004). In most OECD countries, infrastructure spending has declined over the past 20 years. In Australia, state capital spending on infrastructure has declined over a much longer period and most new investment after 2004 was provided by the private sector (Diagram 1). The average age of infrastructure capital stock has also increased since the 1950s and 53.5% of all current investment is accounted for by depreciation and capital retirements (ABS 2008).3 In Queensland, state infrastructure spending in the period 1996-2004 fell in both GSP and per capita terms.4
The major challenge for the Queensland Government is maintaining an optimal level of investment, achieving value for money and ensuring efficient delivery and lifecycle management. Accessing private capital and improving procurement efficiency are central to the achieving these outcomes.
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3 Declining public capital spending on infrastructure was also a feature of OECD countries over the past 20 years.
4 This is partly explained by the high population growth in the State over this period especially in the SEQRE which accounts for around 68% of state population and GSP.