Infrastructure Reform and Federal–State Relations

‘Rudd’s stress on federalism has won him kudos with business where the Business Council of Australia and other lobbies see federalism as the priority instrument for economic improvements. Witness this week’s infrastructure reform road map for the BCA written by former federal government adviser Rod Sims that calls for a deeper commitment to boost Australia’s infrastructure competitiveness. “Reform is not possible unless we have a much more effective working relationship between the commonwealth and state governments,” Sims says. “Rivers, rail lines and roads and electricity networks all cross state boundaries, yet historically both policy and service delivery have been purely state based. We are moving beyond this but we have a long way to go.”