The Good Oil by Rod Brown*
The ANU Aussie Rules Club in the 1970s was a gathering point for graduates from the southern states, including Barry Critchley, now Canada’s leading money market commentator. He recently sent me this story. “It was the early summer of 1982, Canada was in a deep recession – a result of crippling 20% interest rates. The Financial Post decided to talk to some of North America’s best known economists to ascertain ways out of mess. Milton Friedman, then leader of the monetarist movement, was first. He had the usual message – stay the course, recessions do end eventually. Next was John Kenneth Galbraith, who would offer a different perspective. So I boned up on what he had written through his long and illustrious career and the interview was arranged. I would meet with Mr Galbraith at his home not far from Harvard University in leafy Cambridge at 10 o’clock on a Friday morning. At the appointed time, I knocked on the door. Mr Galbraith answered. I knew he was tall, but he was really tall, and had he not made academia his career, he had the right credentials to be a basketball player. He was friendly, his home well appointed with framed photographs of him in various parts of his life – from serving on the US government’s wartime prices commission (photo with Franklin D Rosevelt) to serving as ambassador to India during the presidency of Jack Kennedy (photos with Jack and Jackie.) He escorted me to his study, offered a cup of tea and the questions began. He answered frankly, and with a point of view that didn’t come as a surprise. After one question, he said: “What kind of a f—— dumb question is that?” The interview lasted 40 minutes, all recorded on my trusty tape recorder. I shook his hand, said thanks, and left. Walking back from his house, I wound back the tape – and started listening. To my horror, nothing emerged. We had had a tape malfunction. I returned to his house with dread, told him the problem and, given his perceived arrogance, prepared for the worst. To my absolute delight, he didn’t call me an idiot, and when I asked if we could do it all again he said, “Come back tonight at 8.30.”
NSW regional cities girt by sea?
Last month I had a polite dig at the Newcastle-Sydney-Wollongong Government’s lack of support for regional NSW. We had numerous calls of support – thank you. One caller suggested I note the urban emphasis in the Premier’s Economic and Financial Statement (February 2006). Well, it didn’t take long to find an example of why folks in the inland regions were steamed up – as follows:
‘The Government is conscious of the importance of our regional cities. They are vital to the economic growth of our State. The proper planning, servicing, and growth of our major cities – Newcastle, Wollongong, Gosford, Parramatta, Liverpool and Penrith – will receive much closer attention from the Government. Accordingly, the Minister for Planning will establish a task force of planners and urban designers, to work with the local Councils to prepare new city centre plans for each of these six cities by December 2006.’
Good one, George!
The feature on Councillor. George Parker of the Shire of Northampton WA was very good (LG Focus, May 2006). He complains about the painfully slow responses from State Government departments, and makes the separate point that a good Councillor needs to be brutally honest with residents – he says to tell them if they’ve got a good idea, or if it’s not feasible!
I think his two points go together. To explain, as a long time Federal bureaucrat with scars to prove it, I suggest that many delays from government departments stems from the bureaucrat having put in the ‘hold’ box until he/she can either think of the ‘right’ weasel words for the Minister’s reply, or for the problem to go away. Brutal honesty will not be at the front of the thought processes.
Water treatment plants
I look out the window at a parched landscape – southern NSW has been in drought for four out of the last five years. Businesses, communities and vegetation are withering. While the three spheres of government have done a pretty good job at driving water conservation programs, I would guess that there is a still considerable scope to expand the level of water treatment.
Against this backdrop, we have been musing over the potential to bundle up a 10-15 similar water treatment projects across different towns/regions under a BOOT arrangement. The projects might be of a standard size and configuration, thereby significantly reducing the capital cost/unit – bit like the T-model Ford.
So I made some enquiries with the experts from the NSW Department of Energy, Utilities and Sustainability (geez, who dreamt that title up?). The DEUS experts told me that most of the towns in southern NSW have been ‘watered’ so to speak, and the further roll out of water treatment plants or reticulation systems is not commercially viable at current water prices.
He said the price of water is not likely to increase significantly in southern NSW at least because the irrigators effectively set the market price. He suggested this was probably the case across the whole Murray Darling Basin. He nevertheless agreed to keep me posted if he hears from towns interested in being part of a ‘bundle’. If your Council has such an interest, wherever you are, please email us.
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* Rod Brown’s Canberra based consultancy group, Australian Project Developments Pty Ltd, specialises in industry/regional development and government liaison. For further information telephone (02) 6231 7261 or email apd@orac.net.au
