PM Transcripts

-TL: 18. Oct. 95 4: 05 No. 016 P. 0
PRIME MINISTER 113/ 95
STATEMENT BY THE PRIME MINISTER, THE HON P. J KEATING MP
EPAC PRIVATE INFRASTRUCTURE TASK FORCE: FINAL REPORT
( embargo 12. Olam 19 October, 1995)
I welcome the release of the Final Report of the Economic Planning and
Advisory Commission ( EPAC) Private Infrastructure Task Force, established in
November last year. The Task Force has been inquiring into private sector
Involvement In the funding, management and control of public infrastructure.
The Report provides a substantial fund of ideas on issues relating to private
sector Involvement in infrastructure.
Among other things, the Task Force noted the rapid development of
, infrastructure finance and the growing emergence of superannuation and life
Insurance investments in infrastructure. The package of superannuation
measures announced in the Budget will greatly Increase the pool of
superannuation funds, and the level of funding that is available for
Infrastructure from this source, over the next decade.
The report also highlighted the growing sophistication of the infrastructure
finance industry and the role played by infrastructure borrowings as a catalyst
for private sector involvement. This greater sophistication will, over time,
reduce the need for Infrastructure borrowings.
The Task Force recommends that the tax incentives for infrastructure
borrowings will not be needed after their current life. However, the Government
believes such a judgement is premature, and continues to see a significant role
for them in facilitating greater private sector involvement In funding the
development of infrastructure.
There are many substantive issues raised in the report and I have asked my
Ministers to review them. The Government will respond to the detailed
recommendations shortly.
CANBERRA 18 OCTOBER 1995