The Good Oil by Rod Brown*
The construction of an inland railway from Brisbane to Melbourne has moved closer to reality with the release of a DOTARS commissioned report last month. The report by Ernst and Young looked at four route options. It concluded that the Far Western corridor option, via Albury, would cost $3.1 billion. This is much less than the nearest competitor, a $6.3 billion hybrid model. The two other options considered – a central inland route and coastal route – would cost considerably more. The project was given impetus when Deputy PM, Mark Vaile, affirmed in a recent speech that a second railway between Melbourne and Brisbane will be needed by 2019 to meet the growing transport task. He added that the issue has the potential to affect every business that dispatches freight up and down the east coast.
The Far Western corridor involves Junee, Parkes, Narromine, Coonamble, Burren Junction, Moree, North Star, Goondiwindi and Toowoomba. The Hybrid corridor is a little hazy, but runs up to Goulburn and cuts across to Muswellbrook and Maitland, and then follows the coastal route to Brisbane. Either of these routes could be linked to Melbourne via Albury or Shepparton, although a route via Albury would cost about $500 million less and be three quarters of an hour faster than routes via Shepparton.
My gut feel is that this rail project will actually happen, and it will be one of the two least costly options. There is a national interest argument in favour of the Far Western corridor which has not come into play. To explain, the cost benefit analysis by Ernst and Young would have been rosier if Australia had a regional population strategy, supported by decentralisation incentives and a network of inland city hubs. Such a network would also relieve environmental pressure on Sydney and the coastal belt. However no one is picking up on this.
A time of drought is not a good time to be talking about the regeneration of inland cities. Indeed the doomsayers argue that inland regions have reached their environmentally sustainable limit. The opposing argument is that if towns and cities such as those in the above corridors collectively had twice the industry and population, they would improve the economics of rail transport systems and a national water pipeline grid. All a bit revolutionary perhaps?
Additionally, the viability of all four inland rail options would be enhanced if road freight users met their true costs to the community – road damage, environmental pollution, loss of social amenity, deaths and so forth – through user pays principles. This is sadly lacking in the debate at present.
We will see the Howard Government give further in principle support to the inland rail project in the run up to the election, as a means of titillating voter interest. Decision day of course is two to three years away. The Government is now seeking your comments. The report can be accessed at www.auslink.gov.au/publications/reports/index.aspx
Valencia – more than oranges
I have just returned from participation in an OECD Local Economic and Employment Development (LEED) experts group advising the Greater Valencia Region on investment attraction, internationalisation and innovation. Valencia, due east of Madrid, is the third largest city in Spain. It has a long tradition of academic excellence, a very substantial manufacturing base (transport equipment, textiles and clothing, ceramics, food, toys), strong lifestyle attributes, and serves as a major transport logistics hub into Europe. Our discussions revealed concern within Valencia about competing with imports from China and India, the lack of connectivity between the research community and industry, ‘branch plant’ multinationals, and water availability. These are issues in which certain regions in Australia have some experience, and Adelaide and Perth in particular have a window to collaborate with Valencia, being cities of similar size and located in a mediterranean climate. Valencia is also host to the 2007 Americas Cup. I would be interested in hearing of agencies wishing to be briefed further on this.
The Clever Networks program
This is a new program, and is now open for funding proposals. This program, part of the Australian Government’s $1.1 billion Connect Australia package, delivers innovative broadband services to communities in regional Australia – it funds broadband applications and fosters innovative service delivery for communities. Clever Networks comprises two elements:
- Innovative Services Delivery – co funding projects to support the delivery of improved government services such as interactive remote education or real time medical diagnosis.
- Broadband Development – funding for engagement of project managers/officers to improve skills and capabilities, enhance business practices and aggregate demand in under served communities.
Project proposals under the Innovative Services Delivery element can be lodged until 28 November 2006. The range of government funding is $500,000 to $5 million. Proposals must include contributions from other sources of at least 50 per cent. Funding is for high quality projects. Access the program guidelines at www.dcita.gov.au/ie/broadband/clever_networks
Towards the next election
The PM and the Opposition Leader are hitting the hustings in the run up to the next Federal election, now only 12 months away. If you are in a ‘super marginal’ seat – BINGO – start putting your projects under the noses of our political leaders. These are the seats requiring a swing of around three per cent or less to change hands.
Super marginal seats held by coalition include Kingston (SA), Bonner (Qld), Greenway (NSW), Wakefield (SA), Makin (SA), Braddon (Tas), Hasluck (WA), Stirling (WA), Eden-Monaro (NSW), Bass (Tas) and Solomon (NT). Super marginal seats held by Labor are Hindmarsh (SA), Swan (WA), Richmond (NSW), Parramatta (NSW), Cowan (WA), Bendigo (Vic), Banks (NSW), Adelaide (SA), Isaacs (Vic), Holt (Vic), Ballarat (Vic), Chisholm (Vic) and Rankin (Qld).
The seats of Wakefield and Eden Monaro will get extra special treatment from a PM keen to look after his golden haired boys, David Fawcett and Gary Nairn. Likewise, Kim Beazley will be active in Rankin to support Craig Emerson.
* 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
