The Good Oil * by Rod Brown
We have been doing the rounds of various Federal agencies, and there is a great opportunity between now and Christmas to dust off your iconic ideas that might attract Federal interest. To explain: each May Budget is preceded by the Expenditure Review Committee deciding on new policy proposals brought forward by Ministers. The process commences each November/December when departments are asked to come forward with their bright ideas – these are then tossed around, and the serious number crunching begins in the New Year.
There is currently real interest among officials in receiving ideas from outside the bureaucracy – this is because they are preparing for the incoming government (of either persuasion) combined with a mood that a progressive rundown of the Budget surplus is on the cards. So…if you have ideas of potential national significance then start working up your proposals.
A recent example is Minister Vaile’s announcement of $200 million for growing regions. Personally, I think this is quite odd unless the Howard Government is proposing countervailing measures for inland regions but the Seachange group’s success is instructive.
Some possibilities that I can see are: water recycling; regional branding, regional marketing, regional infrastructure, regional investment; housing affordability models; Indigenous housing and health; food exports and supply chains; global supply chains; new industries for global markets; raw material value adding and renewable energy (especially if Labor wins); environmental best practice; energy efficiency in its various forms; more greenhouse gas abatement; Pacific Island regeneration and ‘economic’ aid.
There is a good vibe if similar ideas come from Councils working in alliance, such as the Seachange group.
Wind energy industry gets kiss of life?
Vestas, the Danish wind turbine manufacturer, recently announced the closure of its Victorian turbine assembly plant in Portland, with a loss of 130 jobs. The plant has been in operation for two and a half years. Vestas said, ‘It’s not viable for us to make further investments in the Australian market…the market was big enough to justify the expense…when we committed to build the factory we believed there was support for the wind industry in Australia…’ The decision came a year after Vestas closed a similar plant in Burnie, with 65 job losses.
Shadow Environment Minister, Peter Garrett, said the closure is another kick in the guts for the renewable energy industry. But a spokesperson for Industry Minister MacFarlane countered by saying Vestas knew the Government would not be increasing the MRET (Mandatory Renewable Energy Target) when it invested.
The truth is that the MRET system was never going to trigger much beyond assembly operations by Vestas and its competitors. The value add lies in the blade manufacture and electronics. However, in September the Howard Government announced a higher MRET. Details of this policy turnaround are still sketchy, but it could save the Portland investment.
Water funding
Is your Council looking to scope up an innovative water project – say for wetlands, wastewater recycling, irrigation equipment, monitoring equipment – or looking for additional funding for it? If so, please call me ASAP.
Regional project funding
A large part of regional Australia’s problem lies in aligning private and public investment funds for initiatives that can make a difference. Our Cockatoo network is actively involved in this field. We use a three stage mechanism.
- Stage 1: Project Assessment – identification, with local stakeholders, of projects with the best prospects of winning support, and how they can be
‘strategically positioned’ to this end. They fall into three main groups: economic infrastructure (transport, water, tourism); social infrastructure (education, health, environment, indigenous, sports); and industry (energy, resources, food and agriculture, aquaculture, forestry). - Stage 2: External stakeholder interviews – discussing project summaries with relevant agencies, identifying applicable government programs and funding cocktails.
- Stage 3:Submission preparation and lobbying.
Please let us know if you have projects that need brainstorming or finance.
Airline safety
The spate of airline crashes in Asia – most recently the Phuket crash involving a 24 year old airliner – has prompted considerable discussion about aviation safety. We’ve done some research. The Federal Aviation Administration (USA) says ‘there currently is no evidence in accident data that would support the ranking of individual airlines’. However www.planecrashinfo.com has analysed air safety records over the last 20 years:
- top of the safety list are US airlines (e.g. Delta, AA, Continental), despite each having a number of ‘fatal events’ – their substantial number of flights works in their favour
- bottom of the list are Cubana, China Airlines, Indian Air Lines, Pakistan International Airlines, Iran Air l those with a clean sheet are BA, Iberia, JAL, Air Lingus, Cathay, Qantas, Air India, El Al, Air Canada and Southwest Airlines.
The considered opinion seems to be that airline safety is largely determined by four factors: aircraft age; maintenance; pilot training; flying conditions (mountains, ice, rain).
The first variable can be quantified – actually Qantas doesn’t fare well, with an average aircraft age of 10.8 years (explains its recent splurge on new aircraft). Others at the high end are North West (13.4), Delta (12.2) and JAL (12.1). Young fleets include Emirates (3.1), Virgin Blue (4), Singapore Airlines (5.3) and Air NZ (6). Happy contemplating!
Federal election – a watershed
Today is 28 September, and the election hasn’t been called. Any day now. Politicians are giving TV interviews on almost anything, with Party members and Uncle Tom Cobbly in the background nodding like grinning galoots. Oh pleeease!
Howard pushes the 12 years of economic glory, a team approach, and asks the electorate not to risk everything on a union dominated Labor frontbench. He wonders whether his brash lieutenants, Downer and Abbott, are getting up people’s noses. Hockey and Brough are pushed forward. Costello and Turnbull stand back. Where is Nelson? Where are the women? Vaile, Minchin and MacFarlane are typically low key. Andrews and Ruddock are off the radar altogether.
Do the Libs realise that big expenditure announcements now, after years of huge Budget surpluses, is insulting the electorate?
Meanwhile the ALP sniffs victory, but mustn’t be seen doing high fives. It says winning 16 seats is like climbing Mount Everest. Kev 07 is honing his small target strategy, playing down the unions, playing up the ‘responsible and caring’ line. Gillard and Swan are doing well. Housing affordability and equality of opportunity are coming into focus as election issues.
This is undoubtedly a watershed election.
*Rod Brown is a Canberra-based consultant specialising in industry/regional development, investment attraction, clusters and accessing federal grants. He can be contacted at apd@orac.net.au or phone (02) 6231 7261.
