Ms Peta Credlin
Chief of Staff
Office of the Prime Minister
Canberra ACT 2600
22nd October 2014
Dear Ms Credlin,
I am writing to update you on developments regarding the potential for pilot programs to test my value capture concept for infrastructure development.
You may recall that earlier this year the Treasurer granted approval for me to work with the New South Wales Government in the identification of a suitable state infrastructure project to pilot the quarantining of the increased Capital Gains Tax revenues that directly result from the construction, development and complementary rezoning.
You then kindly expanded this opportunity with approval of a pilot in every state with a view to offering this financing mechanism as a tool to fund major infrastructure policies in the lead up to the 2016 Federal Election.
To date I have held meetings with Ministers and senior officials of the Victorian, Queensland and NSW governments in pursuit of these pilot projects. The opportunity for a sustainable federal model has been very warmly received by each State Government.
The Victorian Minister for Planning raised the potential for a pilot to be implemented as a method of funding solutions to level railway crossings. New retail and residential developments above suburban railway stations would generate significant amounts of new CGT and Stamp Duty revenues that can be hypothecated towards the sinking of the rail line or overpass construction.
In NSW, I have recently sent a letter to the Premier, co-signed by seven federal, state and local representatives in my local region regarding the opportunity to use this model to fund road widening, urban renewal and a light rail service along Victoria Road from ANZAC Bridge to Parramatta.
Queensland has been the most exuberant in their willingness to utilise this offer, with discussions on its applicability for the commencement of construction of a light rail service in the Sunshine Coast prior to the 2015 State Election. I have written to the Premier requesting this be placed on the agenda for the next Property & Infrastructure Cabinet Committee at which I have offered to present.
To bring these opportunities to fruition I am requesting the Treasurer’s guidance in bringing Federal and State Treasury departments together to iron out working processes. Any assistance your office can provide would also be greatly appreciated.
Furthermore, to facilitate discussion on the wider application opportunities of this funding mechanism I have invited ICS Advisory Executive Chairman, Mr Geoff Brunsdon, and PPB Advisory Chairman, Mr Steve Parbery, to present to the Coalition Policy Committee on Infrastructure & Regional Development next Tuesday 28th October at 7.00pm in Committee Room 1R3.
This will be followed by a private dinner with both gents and in the Members & Guests Dining Room at 8.00pm.
You are very welcome to join for both of these events.
Please feel free to contact me anytime to discuss these matters further, or contact Josh Bihary in my Canberra office to confirm attendance at either event.
I have also sent a copy of this letter to the Prime Minister’s Chief of Staff for her engagement.
John Alexander MP
Federal Member for Bennelong
Chair, Coalition Policy Committee on Infrastructure & Regional Development