G20-B20 to look for ways of lifting private investment in infrastructure

Policy makers and business leaders at the first joint G20-B20 roundtable discussion in Sydney, Australia will seek to identify practical measures to lift infrastructure investment worldwide in order to boost growth and lift sagging global economic growth.

Co-chaired by the Australian treasurer, JB Hockey MP, and B20 Australia chairman and managing director of Wesfarmers, Richard Goyder, the roundtable will provide a unique opportunity for senior business representatives from around the world to have a frank conversation with G20 ministers, governors and heads of key institutions about how to boost private sector investment in infrastructure.

Goyder said the private sector is a key driver of economic growth and increased private sector investment will be needed to unlock the infrastructure opportunity, and avoid the costs of underinvestment – in foregone growth, jobs and standards of living.

''Around the world, there is no shortage of funds available for investment, but significant infrastructure needs persist. The key challenge is getting policy settings and regulatory environments right so that they enable investment and create new opportunities,'' Goyder said.

It is estimated that at least $57 trillion will be needed to finance infrastructure projects worldwide through 2030 to meet the demands of global economic growth. The flow on benefits to an economy for every $1 billion invested is 8,000 jobs. This represents potential to generate between 500 million and 1 billion jobs over the next two decades and drive additional economic growth of 5 per cent per annum, he said.

''A sustained period of underinvestment in key infrastructure assets would seriously impact the future growth of local and world economies. The gap between demand for infrastructure and the current pipeline of committed projects is significant in almost all markets,'' Goyder said.

''It is clear there is scope to both make better use of existing infrastructure assets and for governments to better prioritise their spending. It is also clear that increased private sector investment will be needed to unlock the infrastructure opportunity.

''We acknowledge it is not good enough to say to government, give us all the solutions. We need to work together. Where we can, we want to act with governments to remove barriers to growth and job creation and addressing the infrastructure gap is a critical response,'' Goyder said.

B20 Infrastructure and Investment Taskforce Coordinating Chair and CEO of Telstra, David Thodey, said the B20 will work to identify and address the factors that hinder private investment.

''The private sector seeks opportunities for growth, financial returns, predictable and ethical frameworks, regulatory and political stability and risk management.

''Many of the issues that constrain private investment in infrastructure, as well as the potential solutions, are well documented. Through the B20 process, we will identify the barriers to investment and work with government to implement solutions.

''The B20 believes a coordinated and committed focus on infrastructure and investment can become a compelling growth strategy and vision for the G20.

''We are committed to delivering a set of actionable, high quality recommendations to G20 leaders. Our hope is that these recommendations support governments in achieving our shared goal of providing infrastructure to support growth, productivity and prosperity,'' Thodey said.