Australia Needs More Toll Roads: Productivity Commission

The Productivity Commission has advocated the use of more road tolls in Australia (Photo: Getty)

Australians should be paying more road tolls and governments have had atrocious approaches to infrastructure according to a Productivity Commission report set for release Thursday.

Both state and federal government spending on infrastructure has been lambasted as grossly inefficient, and increased user charges are suggested for roads, according to News Corp.

From the Productivity Commission report:

“In principle, user charges based on the (efficient) cost of provision should be the default option for funding infrastructure … because they can provide an incentive for efficient provision and use of infrastructure. They are already the norm for most types of economic infrastructure, apart from roads and public transport.”

The document also says private sector spending on major infrastructure projects is not a “magic pudding” solution, and generally rubbishes previous governments’ track records:

“There are numerous examples of poor value for money from inadequate project selection.

” … when the government makes mistakes regarding large public infrastructure projects, the consequences are felt more broadly by the community and taxpayers, often for long periods of time.

“Without reform, more spending will simply increase the cost to users, taxpayers, the community generally, and the provision of wasteful infrastructure.

“It is essential to reform governance and institutional arrangements for public infrastructure to promote better decision making in project selection, funding, financing and the delivery of infrastructure services.”

You can read more here.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.