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Make infrastructure bidding competitive: REST
Bidding costs for infrastructure should be a major focus of the Murray Financial Systems Inquiry and other reviews into superannuation, REST Industry Super CEO Damian Hill said.
Hill said there are substantial costs in buying and bidding for infrastructure assets, and it is not as efficient as it could be.
“Exactly what parts of the field can be bid? Can a government agency for example, go out there with a debt package that would be transferrable across all the equity bidders etc. so we can reduce bidding costs?” Hill said.
Additional costs may hamper competition for some of these assets and it is about thinking creatively about these costs, and the sharing of risk, Hill believes.
“How do we partner with the super funds, partner with state governments, and share the risk where it’s best priced and best shared?”
Hill’s comments come in the wake of the federal budget’s treatment of superannuation. He said the industry got off lightly at the moment, but could face “onslaught” after the inquiry.
Hill also said the pre-retirement area needs greater focus as the labour market needs structural changes to adapt to older workers.
He said workplaces have to be flexible enough to move older workers towards using their knowledge rather than their bodies.
“If you go to a hardware store like Bunnings, you’ll see a lot of old tradesmen who are actually part of the customer team in their shops.
“I think it’s going to be beholden on the broader employment market to consider how best they can utilise the skills for those who have mainly been using their body in the past,” he said.
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