The Good Oil by Rod Brown*
Resources boom. Sunny people. The world’s most liveable cities. A very stable democracy.
Why don’t the international money markets recognise our potential? We have millions of tonnes of coal and wheat to export, once global warming and the drought recede! And limitless supplies of iron ore, alumina and natural gas! And don’t forget our special relationship with the USA, Britain, Japan and China.
Well let’s cut the crap. Even our middle aged citizens trudge around Europe and the USA living like backpackers, muttering about our pathetic Aussie dollar. Now, to cap things off, Geoscience Australia says we have only seven years of crude oil left, and the Australian Petroleum Exploration and Production Association confirms that our oil self sufficiency is tracking to 50 per cent, widening Australia’s trade deficit by $30 billion per year. It was thus refreshing to see the NRMA host the Alternative Fuels Summit in Sydney in October. NRMA president, Alan Evans, is surely performing the role of Minister for Alternative Energies.
The summit was a stimulating exercise. Speakers highlighted Europe, Brazil and even the USA embracing alternative energies. Opposition Leader Beazley promises his C1 vehicle would run on alternative energy and to remove import tariffs on hybrid cars.
Minister Warren Truss stressed the need for consumer confidence and reliable supplies, and proudly confessed that he used ethanol fuel (E10) in his car for years. But he mostly restated government policy, and the mood of the summit was that the Feds are going to sit on their hands.
David Lamb (CSIRO) summed things up by arguing that someone needs to urgently draw up a road map for the alternative energy industry.
Alan Evans had already twigged to this, and thus proposed the establishment of the ‘Jamison Group’ (the hotel where summit was held) – six to ten wise people plot the way forward over the next five years. He also announced a NRMA commitment of $250,000 towards it, and asked for others to chip in.
Local Government aspects? First, surely there are many politicians at the local level who are averse to leaving our energy issues in the hands of multinational oil companies! Second, Local Government has sizeable vehicle fleets. Why not seize the moment and commit all your fleets to using ethanol and biodiesel blends? Tony Kelly (NSW Minister for Rural Affairs) said his Government will do this with its 26,000 vehicle fleet.
Third, local Councils could offer other incentives. For example, Councils in Sweden offer free parking to owners of hybrid fuel cars. Fourth, ethanol and biodiesel provide a potential lifeline for regional communities. On behalf of some companies in the biodiesel sector, we are working on a plan for a series of grower hubs and processing plants from the Darling Downs, down through western NSW, the Mallee Wimmera and into South Australia. Each plant would creates 28 to 35 regional jobs and significant opportunity for further value adding. Many Local Government councillors would understand the potential of this proposal. Please contact us for further information.
Fifth, the Australian Local Government Association could push alternative energy onto the COAG agenda, by asking that COAG receive a regular report and briefing from the Jamison Group.
Why not a Canberra office?
Ever thought of having a staff member based in Canberra, to help deliver your economic development work? Our network also specialises in accessing all sorts of funding and lobbying on behalf of Councils and your local companies. This is at a fraction of the cost of a full time person. Please contact us for more details.
Government grants – the latest
Water Fund – big opportunity for Local Government. And the Feds are under pressure to get money out the door. Our advice is to make your project iconic!
Regional Partnerships Program – Ministers fond of herding people to this program as a ‘catch-all’. However it is more discerning following the Senate Enquiry.
Renewable Energy Development Initiative (REDI) – from $50,000 to $5 million for up to three years – solar, wind, geothermal, biomass, hydro, ocean energy. Applications received throughout the year. Grants to date of $33 million across 16 projects.
Commercial Ready – a key program with big grants. Turnover threshold has been increased from $50 million to $100 million to allow medium sized companies to apply.
Industry Cooperative Innovation Program – $25 million for international collaboration projects – grants from $50,000 to $3 million. Could get a funding boost in 2007?
Australian Research Council – suitable for university/company alliances. Round two closes 24 November. Success rate of 40 per cent – but only for serious players.
Food Processing in Regional Australia Program – up to $200,000 for food processing, setting up regional networks or establish market contacts. It is now also open to urban areas!
Water Wise – small grants (under $50,000).
Auslink – roads funding to 2010 mostly committed, but the corridor studies are being completed (see www.dotars.gov.au) and this could trigger some fresh funding in an election year.
Family and Community Services – plethora of small grants. You need a lot of time and patience.
Telecommunications – ongoing grants particularly suited to Councils.
Indigenous development – hived off to different departments – hard to access unless you know your way around.
Rural Industries R&D – ongoing program of relevance to regional farmers and growers.
Marketing your location – latest US findings
The IEDC Economic Development Journal provides some excellent insights into what works in attracting investment to US regions, and there is generally good transferability to other nations. For example, recent analysis highlights the importance of face-to-face meetings in marketing locations to prospective investors – this certainly gels with our experience. Similarly a good website is now critically important.
In terms of what goes on the web site, the IEDC survey highlights the importance of available incentives. We also suggest that you not limit it to your own local incentives – add in those on offer from other levels of government! We can assist you with some material.
* 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
