| Abstract: | Australia faces a transport infrastructure problem requiring complex policy formulation and imaginative problem solving. In opposition, Kevin Rudd committed to improving the nation's infrastructure and addressing the ‘infrastructure bottlenecks’. This task is made more urgent by the Reserve Bank's concern that the infrastructure restraints are causing inflationary pressure. In the short term however, increased Commonwealth infrastructure expenditure would add to the pressure on interest rates. Consequently, the Commonwealth must work with industry and the states on improving operational efficiency in the short term, while planning for infrastructure investments in the longer term. With the political limitations of federalism, a shortage of skilled policy advice, and ministerial inexperience, the Rudd government must set a broad agenda to guide all infrastructure stakeholders. |
