Doing so would promote productivity growth in Australia and contribute to advancement of the overall welfare of our citizens. The potential challenges in this area are, however, significant. I would like to highlight three of these. The first is the governance of project selection. Clearly, not all investments in transport are a good idea, and some ideas are much better than others.
When we look back and see how Australia reached this position, it is a very interesting (and reasonably recent) story. The major step occurred when the Government decided that it would borrow honestly from its own citizens. That is, it would stop using captive arrangements that force financial institutions to take government paper, and stop setting the interest rate on its own paper.