Investing in the future: Infrastructure in South Australia

Extract: Infrastructure provision generates significant debate. Some of this debate focuses on the desirability of individual projects - 'should we spend $500 million on an oval redevelopment?', 'should we build a $50 million Footbridge', 'do we build a new hospital or refurbish the existing one', 'is the South Road Superway a positive investment', 'should we have built the desalinisation plant'? While these are important questions it is also important to ask what contribution does infrastructure investment make to the economic and social development of South Australia and what level of infrastructure provision might by optimal. This chapter focuses on whether the overall level of infrastructure provision is appropriate in South Australia. It argues that it is critical there be appropriate assessment of individual projects - to ensure that they deliver a net benefit into the future - and generate the necessary revenues to ensure that they repay the cost of financing (however financed).