Possible private sector pain offers public sector gain

PPPs have evolved to where the private sector is taking on more risk to the benefit of the public, writes Brad Vann.

There simply isn't enough money available from the public purse to build the infrastructure necessary to sustain Australia's economic well being.

Governments need to preserve budgetary flexibility to meet unexpected or significant societal events (such as the recent tragic bushfires in Victoria, or the government-led response to the swine flu outbreak). The private sector is not subject to such constraints.

Sir Rod Eddington hit the proverbial nail on the head last month when he spoke of the need for a genuine, rational discussion around public-private partnerships.