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Australia needs to optimise its risky and wasteful infrastructure spend

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Smaller, cheaper consulting firms are growing as they manage to keep their overheads low while offering the services of experienced professionals.

At the time, we identified the principal concern of large-scale infrastructure projects running over budget, estimating that $20-40 billion of Australia’s infrastructure was at risk.

Since then, a lot has changed and not for the better. Two key themes within our overall analysis have emerged, both in response to the recession caused by COVID-19 and much of the inherent infrastructure portfolio risk.

Reliance on infrastructure capital as a source of stimulus

It has not been an enviable year for those working in the public sector, with challenging decisions and heart-wrenching trade-offs made daily. However, one positive step has been universally reinforced by the Federal and State governments: the construction of public infrastructure as a vital – perhaps the largest – source of economic stimulus to help us grow out of the recession.

As a result, infrastructure commitments have increased from already record levels and commitments have been made to accelerate that spend.

Source: The Mandarin


About the author

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Aldous Mitchell

Aldous Mitchell has 20 years’ experience in policy, organisational effectiveness and operational improvement. He has advised governments across Australia, New Zealand, the USA, Europe, Asia and the Middle East on matters of infrastructure, transport, treasury, justice, human services, defence, law enforcement, housing and health. He leads Partners in Performance’s Public Sector practice.

About the authors

Aoife Murphy