Federal and state treasurers to make plans to fast-track infrastructure spending

Josh Frydenberg says the government is open to bringing projects forward to help boost the
economy
Sarah Martin Chief political correspondent
Thu 10 Oct 2019 18.00 BST

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Treasurer Josh Frydenberg speaks to the media during a press conference in Melbourne,
Monday, October 7, 2019. (AAP Image/Stefan Postles) NO ARCHIVING Photograph: Stefan
Postles/AAP
A meeting of the country’s treasurers on Friday will develop plans to fast-track infrastructure
funding and reverse plunging productivity rates, amid growing concerns about the health of
the Australian economy.
The contentious issue of state and federal health funding will also be discussed, with health
reform on the agenda as a productivity measure, with the state treasurers to discuss a shift
in the funding model to one that pays for “values and outcomes”, rather than being activity
based.
“This reform will consider funding and payment arrangements to ensure governments
increasingly pay for high quality, best value health care, not just the number of services
delivered,” meeting notes state.
Treasurers will also be given an update on the national health reform agreement, which needs
to be renegotiated by June next year.
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Following calls from state treasurers for the commonwealth to boost infrastructure spending
to help boost economic activity, the federal treasurer, Josh Frydenberg, said the government
was open to doing so on the condition that states could deliver projects within “accelerated
timeframes”.
“I am looking forward to a constructive meeting today with my state and territory
counterparts to discuss how we can continue to work together to achieve strong economic
outcomes for Australia,” Frydenberg said.
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“Our focus will build on work already being done by the commonwealth and states and
territories and will deliver concrete benefits for Australians such as better quality roads;
healthier, more productive people; and more timely approval of major projects.”
Frydenberg said some states had already responded to a letter from the prime minister, Scott
Morrison, sent to premiers in August about fast-tracking certain projects, and said the
government would work closely with the states to work out which projects can be potentially
brought forward.
In total, he said the commonwealth and states were working to progress 130 land transport
projects currently under construction, 140 that were in planning and 300 that had been
announced in the past six months.
Friday’s meeting will also focus on measures that could boost national productivity, which last
month’s national accounts revealed was in decline. The three-year average annual growth
figure of 0.4% is now he worst it has been since the 1990s recession.
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The Reserve Bank has also urged greater government stimulus, after it cut the official cash
rate by 0.25% to a new record low of 0.75% – the third reduction in the cash rate in five
months.
Australia’s economy grew by 1.4% in the year to June – the lowest recorded annual rate since
2009 – which the RBA governor, Philip Lowe, noted was “weaker than expected”.
But while the government has been resisting calls for more fiscal stimulus, treasurers on
Friday will discuss several issues aimed at boosting productivity, including heavy vehicle road
reform, health reform, workforce skills and environmental approvals.
The council of federal financial relations meeting will discuss the national heavy vehicle
charging system for trucks, which “has poor links between the needs of users, the charges
they pay and the services they receive”.
Following the meeting, the treasurers will take part in a forum on population, which is
developing a new national population and planning framework that the government says will
“set out a practical approach to improve population planning and management”.