Dear Colleagues, for Infrastructure Australia, December has been a month of significant milestones. The passing of our new governing legislation and the launch of our third Infrastructure Market Capacity report, are a culmination of the efforts of many within IA, the Commonwealth and our valued state and territory partners. These achievements provide an exciting platform on which to kick off 2024.

Infrastructure Australia Amendment (Independent Review) Bill 2023

The passing of the Infrastructure Australia Amendment (Independent Review) Bill 2023 marks a significant moment for our agency —our scope and role have been cemented, along with a strengthened mandate from the Australian Government to truly be the nation’s independent infrastructure advisor.

The legislation gives effect to the findings of the Independent Review into Infrastructure Australia. IA's functions will be redefined and a new governance structure established, comprising three expert commissioners, supported by an advisory council. Most of the changes take effect following Royal Assent of the Bill, and our teams have been working incredibly hard to ensure we are ready to begin transitioning to our new ways of working. The appointment of Commissioners, however, will be undertaken by the Australian Government via a rigorous selection process over the coming months.

Thank you to all our state, territory and Commonwealth colleagues for collaborating with us over the past six months as we prepared for this moment. We are looking forward to continuing this collaborative working relationship with you as we implement the legislation.

2023 Infrastructure Market Capacity Report

On Tuesday, 12 December, our agency launched the third instalment of our Infrastructure Market Capacity Report, which is a significant body of work for our policy and research program.

The report has received widespread interest from government and industry, and there has been no shortage of commentary across the media.

I have previously shared a copy of the report with many of you and no doubt you will have seen the headline figures including the status of the nation’s major public infrastructure pipeline, which stands at $230 billion over five years—a slight increase from 2022 of four per cent. The report also finds evidence of a slight smoothing of the nation’s public infrastructure pipeline, which reflects the actions of governments looking to manage demand. That said, demand is still far exceeding supply.

Among the key findings for this year’s report, is the nation’s ongoing labour shortages, which is the most significant market capacity constraint. Our report also finds there are significant challenges facing local supply of non-labour materials, particularly steel, and for some key locations, quarry materials.

This year’s report also has a new feature—the inclusion of regional hotspots. Through our research, we have been able to pinpoint regional areas where extraordinary levels of investment are expected to create labour gaps in the coming years.

Our Infrastructure Market Capacity Report doesn’t stop at just highlighting the problems the industry is facing. It also highlights the opportunities and potential means to overcome them featuring 14 recommendations for the Australian Government to consider in collaboration with the states and territories. Among these recommendations are ways to:

• Proactively manage demand in the pipeline
• Improve material supply
• Increase workforce supply
• Address construction productivity

As we head into next year, we will continue sharing key insights from the 2023 Infrastructure Market Capacity report and recommendations to keep the industry moving forward.

2024

2024 will be a transformative year for Infrastructure Australia. With a strengthened mandate, skilled commissioners and more targeted products (such as a more focused Infrastructure Priority List), we are set to drive better infrastructure outcomes for Australian communities.

In addition, early in the new year we will be launching a suite of carbon related work, the outcomes of which will play a key role in industry achieving net zero targets by 2050.

I would like to take this time to wish you all a safe and happy holiday period—I look forward to connecting with you in the new year.

Kind regards,
 
Adam Copp
Chief Executive
Infrastructure Australia