Australia needs to invest more in quality infrastructure: central bank chief

Australia needs to invest more in quality public infrastructure in order to make a successful transition from the mining boom, the central bank's governor said on Friday.

Reserve Bank of Australia governor Glenn Stevens said dwindling international trade and smaller mining investment was having a negative effect government revenues.

However, investing in "quality public infrastructure" was an important step in spurring the economy, and the RBA will help where it can.

"We can hope to assist it, and the Reserve Bank is doing that, and will continue to lend what support it can, within the limits of its powers and consistent with its mandate," Stevens told American Chamber of Commerce in Australia.

"But we have always said we cannot hope to fine-tune this transition, however much we may wish otherwise."

Stevens said competitive markets, education and skill building, flexibility and adaptability, quality public infrastructure, strong public institutions, balanced regulatory arrangements, and rewards for entrepreneurial risk-taking are likely to give Australia "the best chance for the kind of prosperity we seek". Endi