RBA official call for enhanced transport

A SENIOR Reserve Bank of Australia (RBA) official says more can be complete to get better the nation's transportation networks. 

RBA deputy governor Philip Lowe says civilizing transport is vital to economic growth and rising Australia's economic competitiveness.

"I find it hard to run away the conclusion that we are declining short in some areas, mainly in parts of our transportation system both private and public. Many of you have no doubt felt the aggravation of moving around our cities," he said in a speech in Sydney on Tuesday.

"There can also be positive social impact through dipping travel stress and rising the connectedness of communities. And there are environmental benefits as well."

Dr Lowe said improved public transport also helped ease the cost of housing.

"When housing prices are high, it is mainly because land price are elevated And, land prices are high when there is a lack of well-located land," he said.

"We cannot do much about the physical supply of land, but asset in transportation infrastructure by making it easier to move around the city can augment the supply of well-located land.

"This means that underinvestment in transportation networks tend to put up pressure on housing costs," he said to an International Association for Research on Income and Wealth (IARIW) and University of New South Wales (UNSW) Conference.

Dr Lowe said better transport would augment output and improve people's lives.

"Given these a variety of effects, my possess view is that there are important opportunities for additional asset in transportation infrastructure and for using the obtainable infrastructure more efficiently."