Directors want bigger infrastructure spend

Directors are concerned about the ability of the new parliament to deliver needed reform but are calling for additional government infrastructure investment.

The nation's bosses want the Turnbull government to increase its infrastructure investment (AAP)

The nation's bosses want the Turnbull government to increase its infrastructure investment as a way of boosting economic growth and employment.

Members of the Australian Institute of Company Directors have selected infrastructure as the number one issue for the government to address, nominating regional infrastructure, renewable energy sources and roads as top priorities for additional investment.

Institute head John Brogden says directors have grave doubts about the new parliament's ability to deliver necessary reform.

Almost 90 per cent of directors feel the make-up of the Senate is likely to negatively affect business confidence and less than a third believe the incoming parliament will deliver stable government.

"Despite the uncertainty directors see in the current parliament they are emphatic in their calls for long-term policy and the need for significantly increased investment in nation-building infrastructure," Mr Brogden said on Thursday

Increased spending on infrastructure boosts economic activity and employment.

"The creation of long-lived productive assets can reduce the cost of living and lift national prosperity," Mr Brogden said, while prudent management of the asset's income stream can aid budget repair.

"Politicians are too focused on short-term issues and need to deliver a long-term reform plan for the nation."