|Value Capture Agenda
Prime Minister Turnbull has promoted his progressive agenda with Value Capture as the mechanism to break the infrastructure logjam. Project Director Karl Fitzgerald was interviewed on ABC 774 Melbourne with Jon Faine at 830am yesterday morning on the hot topic. “We spend, you win, you pay” was the byline. Listen or read the transcript.
Call to action: hit the comments section, talkback radio, contact your local MP – do it all – this is the best momentum we’ve had in decades! Congratulate Malcolm Turnbull on his value capture stance by sending him a message. Do the same for the Minister for Major Projects Paul Fletcher too. Find your local MP by typing in your postcode. 5 minutes work ;)
David Collyer penned a top piece on Do We At Last Have An Infrastructure Prime Minister?:
We say, if government used land tax, the market would decide whether and where infrastructure projects actually added value, a brilliant way to protect taxpayers from white elephant civic projects.
And in further good news, the Property Council of Australia CEO Ken Morrison was quoted today in the AFR’s Dont Let Cities become 21st Century Dark Satanic Mills:
The suggestion (of utilising LVC) has been warmly welcomed by investors and groups such as the Property Council of Australia, which argues that so-called tax increment financing is a proven way of overcoming two of the biggest hurdles facing new projects – finding enough upfront capital and getting all levels of government working together.
“The beauty of tax increment financing is that it secures funding from additional revenue streams without the need to levy new taxes,” property council chief executive Ken Morrison said.
“It’s is an approach that uses economic growth to fund projects and we strongly encourage the government to further explore this opportunity.”
FYI Tax Increment Financing is similar in approach to Value Capture. Stay posted for a primer detailing the minor differences between the various systems of recycling economic rents for the public good. Now is the time to contact your local MP – consider it grand final day!