SAVING money has been cited as the key reason for the state government of Victoria moving to axe advisory agencies Infrastructure Victoria and Economic Growth Victoria.
Finance Minister Enver Erdogan was quoted by the ABC as saying the government was targeting savings by cutting back its reliance on consultants.
Mr Erdogan said the decision was about “extracting the best value and where there's opportunities to end duplication and find efficiencies, we're going to take those opportunities".
Both the Liberal/National Coalition and the Greens say they are opposed to legislation to scrap IV.
Industry bodies Engineers Australia, Consult Australia and the Australian Constructors Association expressed disappointment in the Victorian government’s decision, saying it removed an “important source of independent advice on the state’s infrastructure priorities”.
It noted IV’s role had been to offer independent, evidence-based advice to successive governments on the state’s infrastructure needs, helping prioritise investment and costs.
Engineers Australia chief executive Romilly Madew AO said IV had provided governments with valuable independent expertise and long-term strategic thinking.
"Infrastructure Victoria has supported better planning, stronger project prioritisation and a long-term view of the infrastructure challenges facing Victoria,” Mr Madew said.
“At a time when governments face growing fiscal pressures and increasing demand for infrastructure, independent advice on priorities and investment options is more important than ever.
"Major infrastructure decisions involve significant public investment and have impacts that are felt for generations.”
Consult Australia CEO Jonathan Cartledge said Victoria had “a complex and significant infrastructure pipeline”.
“Independent, expert and transparent advice is important for its success. Industry understands the need to eliminate duplication and spend taxpayers’ money carefully.
“Good infrastructure outcomes depend on rigorous assessment of what we build, why we build it and where investment will deliver the greatest public value,” Mr Cartledge said.