Senator the Hon. Mathias Cormann
Minister for Finance
Date: Tuesday, 13 May 2014
The Abbott Government is delivering an Economic Action Strategy to build a strong, prosperous economy and a safe and secure Australia.
A key part of that strategy is the rollout of the nation’s biggest infrastructure program, delivered through the Asset Recycling Fund.
The Asset Recycling Fund will have an initial allocation of $5.9 billion from uncommitted funds from the Building Australia Fund and the Education Investment Fund. Proceeds from any future sale of Government assets will further build the capital in the Asset Recycling Fund.
The sale of assets currently owned by Government will help achieve better, more efficient delivery of services, through increased competition, while offering the opportunity to recycle sale proceeds by re-investing them into productivity enhancing infrastructure.
The Government has already announced its intention to proceed with the sale of Medibank Private. The proceeds of that sale will go into the Asset Recycling Fund.
We will now begin to examine other opportunities where assets currently owned by Government could deliver services more efficiently and effectively in private ownership, while proceeds from any sale could be re-invested in other infrastructure priorities.
In the coming months, we will undertake scoping studies to examine future ownership or delivery arrangements of the following:
- Australian Hearing;
- Defence Housing Australia;
- the Royal Australian Mint; and
- the registry services of the Australian Securities and Investment Commission.
These scoping studies will be administered through a proper and methodical process by the Department of Finance, in consultation with relevant portfolio agencies.
Further details of the scoping studies will be provided once the process gets underway.
Should these assets proceed to sale, all proceeds will be re-invested through the Asset Recycling Fund.
Karen Wu - 0428 350 139