Paying Our Way Infrastructure
Presenting the Nexus Initiative
Institute of Transport & Logistics Economics
kick off from last March 2014
Focus on recycling brownfield for greenfield assets
Seeking to better structure these assets for
investment by super funds
Challenges
Broader funding base for infrastructure assets
Better reconciliation of planning and politics, and
between layers of government
what is the problem
Poor adequacy for
future retirement
savings
Poor adequacy
for
Limited
capacity to
future
meetretirement
future
savingsneed
infrastructure
Poor adequacy for
Lack of trust and
future retirement
new thinking for
savings
new solutions
nexus promoting new ways of thinking on Investability
real problem: adequacy of assets to support growth in retirement savings and meet retirees needs
Total Super Pool
in Australia
Asset growth
2004
$816
Billion
2014
$1.6
Trillion
2035
$6.7
Trillion
Future proofing our wealth to provide adequacy and
sustainability to meet retirement needs. c
Not a single super fund looks after its members properly when they retire, independent experts Rice Warner have
told the banking inquiry headed by David Murray 2015
nexus promoting new ways of thinking on Investability
answer: Infrastructure Australia had identified deficit of large scale infrastructure at $700bn
whilst this might be a strain for governments
concerned with deficits, the superannuation pool
might/should be able to take it on...
BUT
it is not sufficient to fill the hole in retirement savings
it’s bias is strongly away from smaller local assets
at a time community DISTRUST reduces mandate for
action
national estate of assets: what are the assets we are talking about
infrastructure
human capital
transport
energy
hard assets
communication
population
water
savings & superannuation
public property
domestic real estate
business assets
soft assets incl
plant & property
knowledge, wisdom, education
intellectual property, brand & trademarks
wellbeing
rule of law
national estate of assets: working though the problem for a solution
what it costs to build/book value
value/income generated
employment offered
asset productivity &
cross asset productivity
growth rate
drivers of disruption & change; risk factors
market value
disruptive drive changers and risk generators
population growth & ageing
accelerating technological disruption
climate change
decay of valuation of legacy assets
legacy debt
offset by financialisation/qe
distorted by rules frameworks around owners- short termism
disruptive drive changers and risk generators
loss of jobs to automation & 3d printing…
( fundamental change in workforce distribution - 50% of jobs to go )
knowledge workers impacted by - expert systems & artificial intelligence - hits high paid white
collar jobs, medicine - middle class fear
fundamental change to the structure of energy - solar meets tesla
driverless car vehicles - fundamental transport and health change,
dna, nano, & cybernetics driven healthcare revolution
Disruption in how we manage local space – NOT IF BUT
WHEN
Well what’s next
how humans give each other meaning
how we care for each other
economy increasingly driven by e.q. not i.q.
real problem: investment opportunities for future cities
we see significant underinvestment in our living
spaces, yet numerous value creating opportunities sit
“under the radar”...
“peer to peer” models of idea development and
financing engage citizens and future proofs our cities
assets range from local physical assets, soft infrastructure in human services, and social
impact investment in community services
nexus is creating a new standard in the
way citizens invest in their cities
opportunity: unique
create a standard in
collaborative environments that
are supported by big knowledge
data and modelling tools that will
empower people to become
their own solutions
nexus is working with universities, government and business to build
world class standard transparent collaboration tools
Nexus Approach
Nexus Point
Research
Knowledge & Insight
Open Access - Custodian
Collaboration
Listen & Learn
Engaging Society
Solutions
Tools & Products
Commercial
opportunity: game changer
enabling people to invest in local
city projects via peer to peer
lending that will unlock abundant
economic potential for
communities by accessing their
own savings
peer to peer loans estimated to be worth 22 Billion in Australia by
2020 ( Morgan Stanley)
connecting real people
co-creating real solutions
creating real value
core proposition
We can build any asset if you help us work out how to pay
for it?
Would you invest your own pension savings in that asset?
It should be as easy to invest locally as globally.
Solutions need to INTEGRATE large projects and local
initiatives.
opportunity: civic engagement &
collaboration
“democracy is the
commonwealth of co-invention”
Damon Young
participatory democracy initiatives like the New Democracy
Foundation are gaining accelerating traction in developing policies at
municipal levels