Australian Governments should stop selling assets and borrow more at cheap rates on offer to fund vital infrastructure

Australian Governments should stop selling assets and borrow more at cheap rates on offer to fund vital infrastructure. The NSW Government has announced it would use $20 billion from the partial sale of a half stake in its electricity network. We agree infrastructure investment is vitally needed to offset the downturn in mining investment and to boost productivity. There is a better, cheaper way to fund infrastructure: that is to borrow more. With Europe set to push our bond yields down further, Australia's Governments should be exploiting this opportunity and selling bonds at cheap rates to fund infrastructure spending. But the Federal Government's talking up of a 'budget crisis' makes this option unlikely. Read the full report: (VIEW LINK)