Productivity Commission Supports Benefit-Cost Analysis - What About It, Homer?

The most recent report from the Australian Productivity Commission (on Public Infrastructure) is not by any means light reading. Nor is it specifically relevant to local government so-called reform in WA - except that it calls for openness, transparency and rigour in public investments.

Specifically, it calls for "subjecting all public infrastructure investment proposals above $50 million to rigorous cost-benefit analyses that are publicly released … prior to projects being announced".

In WA, there are some huge public investments either under way or mooted that have never been the subject of any (certainly not any published) benefit-cost analysis, but when the Minister's version of local government so-called reform is likely to cost around $100 million (a public investment in the future of local government?) surely this should be subject to the same level of assessment recommended by the Productivity Commission.

Contrast the informed and responsible recommendation of the Productivity Commission with the blasé and irresponsible approach of Local Government Minister, Tony Simpson, who happily admits that there has been no business case developed for his so-called reforms and says that the Local Government Advisory Board will assess costs and benefits after the decisions are made.