GROWTH in the value of major infrastructure projects across the country has stalled, reinforcing the need for independent analysis of new publicly funded works, a new Deloitte analysis shows.
The latest Deloitte Access Economics' investment monitor showed the value of all projects was in a "holding pattern", with resource construction investment set to fall below 50% of all investment.
It also revealed the public sector would need to carry a "larger burden" of the investment agenda in coming years, with estimates of up to $16 billion of investment by state governments.
That investment could yet in part be funded by mass privatisations of state-owned assets, with the Abbott government promising to cover 15% of the cost of new projects if funded by the sell-offs.
But the Federal Government, reliant on the asset recycling investment scheme to bolster the economy, has already had a setback with Senate knocking back the bills.
Crucially, the bills failed to get Labor's support due to a lack of complete cost-benefit analyses of major projects being part of the proposed laws.
The Deloitte analysis shows a 0.4% fall in major project investment in the June quarter, while the value of future projects rose $10 billion during the quarter, mainly on the back of proposed state investments.
"While capital recycling can be a useful mechanism for funding new infrastructure in a constrained fiscal environment, consideration of the cost and demand risks for new projects is critical," the Deloitte report said.
"Indeed, it is important that appropriate cost-benefit analysis is undertaken for all major investment projects, and that analysis is arguably even more important when projects are funded by the public sector."