The DLP calls for the establishment of a Federal Development Bank. Its primary role would be to provide a source of funding for infrastructure spending by the federal and state governments, removing their need for seeking funding in foreign markets. This could expand later to funding the development of new industries in our regional centres.
The Development Bank would be Australian owned and operated, separate to the Reserve Bank of Australia and external to the Treasury and ongoing budget requirements. Legislation would be put in place so that the Development Bank cannot be privatised, nor used for purposes other than those for which it was founded.
Such a development bank will provide numerous benefits for Australia. Not only would it provide safe investment, but it would build ongoing revenue for future infrastructure projects. The bank would also:
- reduce foreign debt and interest payments
- relieve budgetary restraints
- engage in and benefit from long term projects
- not interfere with private banking; in fact, it would free up funds used by government infrastructure borrowing
- strategically buy into selected industries to protect the nation’s economic sovereignty
- remove the popular quick-fix and detrimental long term habit of the theft and sell-off of our state assets by governments