The Andrews Labor Government has set out a new strategy to create the maximum value for Victorians from its multibillion-dollar pipeline of major projects.
Minister for Major Projects Jacinta Allan today released the Labor Government’s Value Creation and Capture Framework – an Australian first that centres on realising and creating value, rather than taxing beneficiaries.
The Framework sets out how the Labor Government will harness its record investment in infrastructure to generate benefit for taxpayers and broader social benefits – like jobs and skills, the better use of surplus land, as well as better housing, community facilities and open space.
This will provide a clear picture for business and the community of the types of value capture and creation initiatives the Government will support.
The Framework will apply to all major projects and precinct developments in Victoria, with agencies required to explore all value capture and creation options in the development of their proposals.
The Turnbull Government has suggested that one type of value capture – beneficiary charging – could be used to replace, or be a condition of, grant funding from the Commonwealth Government.
This has often been used as an excuse by the Commonwealth for providing Victoria less than eight per cent of national infrastructure funding.
The Labor Government supports value capture, but also recognises the role of government to invest in better communities without charging those communities for it. The Government rejects this excuse by the Turnbull Government to deny Victoria the funding it deserves.
The Labor Government is already using its massive pipeline of major infrastructure projects to put Victorians first, creating thousands of jobs.
The new Framework will complement other Andrews Labor Government initiatives like the Major Project Skills Guarantee which ensures that at least 10 per cent of all work on major projects in Victoria is done by trainees, apprentices and cadets.
In addition, under our Local Jobs First Policy, strategic projects valued at over $50 million require companies to meet minimum local content requirements using local firms, materials, expertise and skills.
The report can be found at dpc.vic.gov.au.
Quotes attributable to Minister for Major Projects Jacinta Allan
“We’re investing more in major projects than any Government in Victoria’s history, and this Framework will maximise that investment – creating local jobs, building new facilities and supporting those who need it most.”
“While the Turnbull Government use thought-bubble value capture schemes as an excuse to short-change Victorians, we’re getting it done – creating even more value from the projects our state needs.”