The overall benefits of asset recycling to the public outweigh shortcomings when delivered with the right checks and balances in place, according to the latest policy report from Consult Australia.
Re-building the social license for asset recycling argues that the case for asset recycling in Australia is strong. It proposes that asset recycling can unlock funding for additional infrastructure projects in our growing cities and regions by transferring commercially viable, publicly owned assets to the private sector.
It notes how the challenge facing governments today is ensuring that asset recycling initiatives deliver public benefits by getting the right balance between public and private sector interests. The report rejects the view that asset recycling, and privatisation more broadly, delivers either positive or negative outcomes by default.
Consult Australia argues that the case for asset recycling cannot be ignored and calls on the government to increase their focus on creating the right conditions for successful transfers that are in the public interest. To support this renewed focus, the report outlines six recommendations for governments across Australia:
- All jurisdictions to renew asset recycling policies centred around Consult Australia’s eight key conditions for successful transfers
- The Australian Government to re-establish an improved Asset Recycling Initiative focused on transfer conditions rather than transfer proceeds
- Governments across Australia to link asset maintenance costs to infrastructure investments
- Governments across Australia to assess the merits of an infrastructure investment cycle supported by asset recycling, focused on transferring assets to the private sector when they represent the best value
- The Australian Government to take the lead on pursuing a road user charging model
- The Australian Government to require the Foreign Investment Review Board to undertake public consultations as part of their foreign investment review process
More information here