The report by Professor Ross Garnaut on a response to global warming has led to a frenzied debate in Canberra about how an emissions trading system (ETS) should work. Sanity has gone out the window as spruikers and activists push their barrows. Garnaut cautions about the risks if Australia’s market economy gets ahead of the pack. But in the next breath he talks about a 2010 start, and a ‘short and transitional’ adjustment period.
Whoa! How an ETS plays out on the international stage has parallels to the industry protection debate. There we had Australia, Canada, New Zealand and the Nordics taking lead positions in winding back protection and restructuring their economies. The recent 10 to 12 years of economic sunshine helped cushion the falls in manufacturing job losses.
However the nations that lead with ETS arrangements incur the wrath of a lot more people. Why? Firstly, virtually all mum and dad investors via their superannuation funds (at least in Australia) have big exposure to energy intensive industry. Secondly, Japan, France, Russia, China and USA will surely drag their heels on ETS arrangements (they have the track record).
The risk here is that the Australian Government’s policy response will be unconsciously shaped by the extreme elements within the environmental lobby.
I predict a huge political stoush in the lead up to the next election, as the industry heavyweights side with the Opposition. The process has already started.
Regional infrastructure
I’ve just made a submission on behalf of the Cockatoo Network to the House of Representatives Enquiry on a new regional infrastructure program. This feeds into the new Regional Development Australia arrangements (replaces the ACCs).
Please reinforce our following position if it suits:
- eligibility restricted to non
metropolitan regions – but
have a parallel ‘Better
Cities’ program (different
drivers and issues) - focus on projects with a
demonstrable public
interest – six to seven
projects per region per
year, with the Federal
contribution in the $500k
to $1 million range - Commonwealth limit of
50 per cent of cost – projects
to conform to regional
priorities - empower the RDA Network –
appoint regional
coordinators and allow
RDA Committees to advise
on big agendas, such as
climate change and water - RDA Committees should
be merged with State
boards – important test
case if the Commonwealth
wants to be a long term
player in regional
Australia - Ministers to be excluded
from the decision making
process - annual Federal spend of
$200 million is justified –
big land mass; infrastructure
is critical to economic
and social development;
helps attract private sector
investment; can replace
smaller, marginal programs
and nurture inter-regional
initiatives.
Picking winners in the creative arts –
Lowerton USA
In the 1980s, Paducah’s Lowertown district (Kentucky USA) was dominated by slumlords and drug dealers, a blight on the city. A local artist, Mark Barone, learned about a successful effort in Rising Sun, Indiana to attract artists with real estate incentives. He convinced the Mayor and City to package a set of incentives for artists, including a $2,500 reimbursement for design or renovation costs, 100 per cent financing of low interest loans for existing structures, and free lots for new construction.
Since 2000, 70 artists overall have participated in the program. The Lowertown neighbourhood today has
22 art galleries and studios.
The incentives are now open to chefs as well, in an attempt to expand the city’s culinary arts. A Paducah School for the Arts is also planned. They’re open to a dialogue with Aussies – drop in on them when next in the USA! Contact us for details.
Biofuels – wake up Australia!
The CSIRO has grabbed the national headlines by claiming that petrol prices will hit
$8 a litre within a decade. This sits oddly with the forecast by Australia’s other major forecaster, ABARE, that world oil price would fall to
$67 a barrel by 2013, which is a bowser price of around
$1 per litre. Go figure! (Former ABARE boss, Dr Brian Fisher, famously said that if prices are high enough, roosters will lay eggs. Australian Greens Senator Christine Milne retorted that ABARE has egg all over its face).
We reckon neither has a clue, and that the truth is in the middle.
Both should exit the forecasting game, and simply tell us who is forecasting what. CSIRO has at least flagged that the world must rely more on nonconventional fuels including ‘biofuels which do not reduce food production by requiring valuable arable land to produce’.
That is interesting, because the hot goss is that brassica mustard is a high yielding crop ideally suited to arid areas. Some colleagues are crying out for R&D to fine tune it to local conditions and grain growers in New South Wales, Victoria, South Australia and Western Australia are on side.
However the public agencies are nervous due to concerns about biofuels pushing up food prices. Hopefully the Jamison Group and NRMA can apply some pressure.
Hawkes Bay signature dish– copy a Kiwi!
Hawke’s Bay’s Signature Dish for 2008 is underway, as part of a regional bonanza showcasing the best local food and beverages. It creates fantastic exposure for participating restaurants and is a real draw card for food lovers.
What about something similar in Australia? Is a Signature Dish the next step?
The Barossa and Adelaide Hills now attract tourists to taste their gourmet foods (pheasant, milk fed goats and so forth). Maggie Beer has been a champion.
Mildura has ‘couthed’ up,
thanks to another TV chef, Stefano de Pieri, and his father in law.
Darwin has created a Unique Selling Proposition around its croc and buffalo restaurants.
Gippsland lamb, King Island cheese and SA tuna are on Sydney and Tokyo menus. But have they fully captured the culinary tourism effect?
Rockhampton isn’t yet the home of the T-bone steak. Perhaps the Darling Downs? Gosford in seafood? Can Goulburn leverage more from that silly ram?
Correction – A good spirited Mayor has phoned to inform us that former Federal Minister for Local Government, Jim Lloyd, spent his formative years on Wyong Council – not Gosford Council as reported in last month’s column. And the famous creek is spelt ‘Tumbi’. Apologies.
*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. Go to our blog at www.investmentinnovation.wordpress.com for 400+ articles on issues relevant to Local Government.
