House debates

Wednesday, 10 May 2023

Bills

Infrastructure Australia Amendment (Independent Review) Bill 2023; Second Reading

6:21 pm

Photo of Anne StanleyAnne Stanley (Werriwa, Australian Labor Party) Share this | Hansard source

I rise to make my contribution to the debate on the Infrastructure Australia Amendment (Independent Review) Bill 2023. Infrastructure Australia was established, under the previous Labor government, by the now Prime Minister to provide independent expert advice to government on infrastructure priorities. The premise was simple: government spending on infrastructure should create jobs; build up our communities, whether they be in regional, rural or metropolitan areas; and boost economic growth. Infrastructure Australia was meant to help the government make important decisions to deliver on those principles.

Under the former Labor government, we listened and invested in every one of Infrastructure Australia's priority projects; however, over the last nine years under the former government we saw rorts and waste in every portfolio, and that was the case for infrastructure. There was an extensive list of scandals, one of which, the Leppington Triangle, was in my community of south-west Sydney. A report of the ANAO found that the infrastructure department had spent almost 10 times more than it should have on a 12.26-hectare piece of land. That is almost $30 million of taxpayers' money spent on a piece of land which was valued at $3 million. I can only imagine what could be done better with that money. In 2021, the ANAO released a report on the car park rorts scandal, finding that none of the 47 car park projects selected by the infrastructure department were merit based. These examples speak of a culture, cultivated by a previous government, of spending taxpayer money without proper scrutiny or process. It was that culture which found its way into Infrastructure Australia, undermining its independence. On multiple occasions the body was subject to the partisan stacking of its board.

The Albanese government committed to an independent review of Infrastructure Australia, and that's what we delivered. On 22 July 2022 our government appointed Nicole Lockwood and Mike Mrdak AO to commence that review, and on 8 December 2022 it was released, along with the government's response. The bill before the Chamber tonight will implement part of that response. This bill changes the governance structure of Infrastructure Australia to be more streamlined, replacing the board with three expert commissioners who will be supported by an advisory council. The three commissioner positions will be hired through a merit based selection process that is publicly advertised, ensuring Infrastructure Australia is led by the best possible people.

The body will also be required to develop a nationally consistent framework for evaluating infrastructure proposals that will reduce duplication with the states and territories, to ensure that it can work with all levels of government efficiently. In addition, this bill will require that Infrastructure Australia's priority list be smaller and more targeted so it can focus on nationally significant infrastructure.

Importantly, a new object will be added to the act that identifies Infrastructure Australia's mandate as the Commonwealth government's independent adviser on infrastructure investment planning and project prioritisation. This new object will ensure both the independence of the body and the quality of its advice. Infrastructure Australia's functions and project suite will be more focused and include developing a smaller, more targeted infrastructure priority list that prioritises nationally significant infrastructure proposals for consideration by the Australian government. The bill will help reduce duplications between the Commonwealth and the states and territories by requiring Infrastructure Australia to develop a nationally consistent framework for evaluating projects and proposals and endorse project proposals by state and territory governments.

Infrastructure Australia will be governed by three commissioners, including a chair commissioner, and a chief executive officer. The commissioners will be the accountable authority and will be appointed by the responsible minister based on expertise, skills, experience and knowledge, with gender and geographical representation considered. The CEO will be appointed by the commissioners. The new governance model will ensure that Infrastructure Australia has eminence, authority and standing as the national leader and coordinator among infrastructure advisory bodies.

Alongside this bill, an updated statement of expectations will be issued to implement the recommendations of the review. The government's amendments to the Infrastructure Australia Act will ensure that Infrastructure Australia can operate under the strategic direction of its commissioners to provide impartial advice to the government on the prioritisation of need for projects around the country. While Infrastructure Australia must have regard to the government's policies and objectives, it is the commissioners who will be responsible for determining the content of Infrastructure Australia's projects and advice.

Infrastructure Australia was established by a Labor government, and clearly it's a Labor government that will strengthen it further. This bill goes towards ensuring that Australia's infrastructure projects are built based on need, where they will have the best economic benefits for the economy and where they will have jobs for our future. I thank the minister for infrastructure for her work in ensuring that Infrastructure Australia can continue to inform the government on the nation-building infrastructure we need, and I commend the bill to the House.

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