Infrastructure Australia who's who
Blog Post | Blog of Christine Milne
Monday 26th May 2008, 2:42pm
by ChristineMilne in
New Matilda published this piece today under the title: 'Be wary, we're in safe hands'.
The Rudd Government has made much, since well before coming to office, of its determination to unblock Australia's infrastructure bottlenecks and to tackle climate change. I have noted before that unless carefully managed, these two goals will come into direct conflict with each other to the long-term detriment of both.
Unfortunately, the appointment of the board of Infrastructure Australia last week does not fill me with confidence that Rudd realises this. In March, the Government passed enabling legislation for Infrastructure Australia which effectively sidelines the climate change and oil-use implications of infrastructure decisions. Under the legislation, Infrastructure Australia can only consider climate change at the direct request of the Minister. Throughout the debate on the amendments I had proposed, which were rejected by both Labor and the Coalition, the Government assured the Senate that it took climate change seriously and that we should trust to their bona fides.
As I said at the time, perhaps we should trust them, but that is hardly the point. Surely greenhouse implications should be an explicit and core responsibility of a body with a strategic overview of infrastructure. For an issue like climate change, goodwill is not enough. With Labor having failed the first climate trust test by stretching out its already weak election promises in their first Budget, we need to very carefully consider how the newly announced board of Infrastructure Australia might advise the Government to act. This is particularly important, given the massive $20 billion ‘Building Australia Fund' the body now has to play with - with no climate strings attached.
In the Senate debate, Senator Conroy made much of the appointment, already announced, of Sir Rod Eddington to chair the new body. Conroy said that in his extensive experience in this area, Eddington "has always examined the climate issues and I do not think you will be disappointed this time. I hope that gives you some comfort".
While it must be remembered that Eddington's background is in the airline industry - a sector known for its skyrocketing emissions - and that he has also served as a Director of Rio Tinto, his recent experience in providing a strategic overview for infrastructure does make him well qualified for the position.
However, the response of many respected Victorian sustainable transport experts to his report into Melbourne's transport needs does not, in fact, give me any comfort at all. Indeed, given the legislative situation I described above, it is deeply troubling that, when pressed on the greenhouse implications of Eddington's Melbourne recommendations, a member of his team told The Age that "Sir Rod was not asked to address the greenhouse problem". If that is the approach he takes with this commission, we are all in serious trouble. But what of the other members announced last Monday? In summary, it is firmly skewed to those deeply rooted in the status quo.
With one stand-out sustainability expert and one stand-out voice for the coal sector, the majority are apparently reliable public servants and corporate types who will be 'safe hands'. This is valuable for ensuring that the pork-barrelling tendency of infrastructure projects is overcome, but a serious problem in terms of turning Australia around to rebuild for a post-carbon economy. The latter will require courageous and imaginative, out-of-the-box planning.
The appointment of Peter Newman to the board is welcome news. If anyone can provide this level of thinking, it is Professor Newman, the Director of the Institute for Sustainability and Technology Policy at Murdoch University. Peter is thoroughly cognisant of the threats of climate change and peak oil and has well-developed ideas of how to reshape our infrastructure to deal with them. All power to him to convince his fellow appointees of his views. Newman is balanced, however, by Ross Rolfe. Rolfe is more than just a Queensland Labor man, but his time as Coordinator General at the Premier's Department under Peter Beattie proved that he was no friend of the climate.
In a two year hiatus between his directorship of the Department of Environment and Heritage and taking up the position at Premier's, Rolfe consulted for Chevron Asiatic, Powerlink Qld, the Minerals Council of Australia, Australian Premium Coals Pty Ltd and BHP Coal Division. Since leaving Premier's, he has been CEO of Queensland's coal giant, Stanwell Corporation, before joining Babcock and Brown. He is a coal man. The five senior public servants are all respected achievers of the 'safe hands' variety, with Treasury's Ken Henry the only one I am aware of who might suggest some brave ideas. Terry Moran, the new secretary of the Department of Prime Minister and Cabinet, Anthony Kannis of WA Treasury and Kerry Schott of Sydney Water are all pretty much guaranteed not to rock the boat. Jim Hallion, the new Chief Executive of the Department of Transport, Energy and Infrastructure, took a brave decision with the Adelaide to Darwin train line which does not appear to have paid off. Hopefully he will not be once bitten twice shy. Having come out of Primary Industries and Resources South Australia, the minerals and energy promotion arm of South Australia's public sector, there is a risk he could swing for uranium. The remaining four are a mixed bunch from the private sector. Garry Weaven, as chairman of Industry Fund Management, has huge amounts of money to invest in infrastructure across the country.
Weaven came out of the ACTU to be a very early entrant into industry super funds. Encouragingly, he has talked of the need for investment in renewable energy as part of the climate challenge. Mark Birrell, chairman of Infrastructure Partnerships Australia and a former Liberal Minister from Victoria, will do what he can to get the best deal for infrastructure providers. The fact that he warmly applauded Eddington's vision for Victoria and is a mouthpiece talking up the success of private public partnerships when the evidence is to the contrary is deeply troubling.
Phil Hennessy, KMPG's Queensland chair, is known in Brisbane as the former very pro-development chief engineer at Redlands Council. Queensland environmentalists were unimpressed by the appointment. And finally, of course, Heather Ridout. Her impeccable industry credentials and restraint in last year's election have made her the go-to woman for the Rudd Government. Ridout is regarded as the 24th member of Cabinet - just witness Penny Wong's first speech on climate change delivered at the AIG. She wields tremendous power, it seems. Let's hope she can show some vision for the long-term benefit of the industry groups she represents.
I took the opportunity last week to write to all these 12 people, sending them a copy of the Senate debate and making sure they are aware of Senator Conroy's commitment that climate change will be "front and centre" and "one of the key considerations in the decisions [Infrastructure Australia] are going to make".
I assured them that I, like many others, will be watching to make sure that Infrastructure Australia helps, rather than hinders, the vital shift Australia needs to make in the coming decades to become a post-carbon economy.
We shall see the result soon enough.

Comments
Thanks Tim, With interest I
Thanks Tim,
With interest I observed Heather Ridout perform on the SBS Insight program during the election, think it was on climate change, her performance was impressive. She sounded so balanced measured et cetera I was left wondering what she actually stood for. It really was a masterly display of fence sitting/ bet hedging. Anyway, to be remembered is that she is a paid representative of industry and will essentially do their bidding. Would love to know what her Key Performance Indicators are, don't think they would be in the public domain though ;-)
I have always wondered why
I have always wondered why the federal government didnt get low interest loans off the reserve bank to fund infrastructure projects that would stimulate full employment in Australia. It seems a no- brainer to me really. As for this board that the Rudd government has setup it will be a mouth piece of the Rudd government really. What else can we all say?
I never cease to be thankful
I never cease to be thankful for access to this site. Thanks for the brief on the mob Tim, it always helps to know who owns the moos bouncing around the campfire from the dark scrub beyond. Even if your just a stain on a roustabouts denims.
We are currently discussing some works for large housing refurb projects in the WA mining arena, it will include a little passive retro design, re wiring & fit out and hopefully PV (solar electric) installs. This is infrastructure designed to stabilize and sustain community growth in areas severely prejudiced by the FIFO (fly in fly out) culture.
The industry would like to encourage people to come and live in the communities where they are working and reaping so much from the earth there. In doing so they will contribute and restore the sustainability extracted from those communities by the whole process. There was an excellent paper on it aired recently on National; sorry cannot remember the authors’ name.
One of my own industries problems is the lack of incentive for big developers to install PV systems as a part of the construction or refurb of multiple home estates. The SEDA grant system (recently touted for means testing by a government with absolutely NO integrity left with regard to pre election environmental promises) is only available for individual home owners. The paper work is tedious and awesome and the seda grant money is not bankable until well after the capital outlay.
If infrastructure Oz is serious about meeting its mooted reason for being it should be looking at ways to encourage the mining industry by fiscal and legislative incentive to do what it’s trying to do. For example the 300 home refurbishment project we are discussing for small mining town communities will result in non enclave'd live in communities of wage earners and goes a long way toward apologising for past delinquent behaviours by the industry.
Mine workers living in the communities they dig the earth from bring money & development, including schools and hospitals, also supporting small business which is currently up against the wall built by the big boys exploiting the economics of FIFO culture, and it ensures at least a modicum of egalitarian sustainability in those areas.
Any other mode demonstrates a rape and pillage mentality, in a decade or so if conditions are even that favourable, all that will be left is destroyed earth and destroyed communities, all the wealth spent on big screen TV’s to watch lifestyle shows flogging summer arctic cruises and advertise 4 wheel drives used to go shopping in.
Infrastructure Oz needs to look seriously at the whole SEDA grant scheme and find ways to fit it to the real needs of Australia, not the hollow rhetoric of an integrity challenged Government. Especially given the back flip demonstrated by Swann and Wong.
Speaking of which, my newest T shirt reads 'Wong Way Go Back' and I have orders..
Since the last post I have
Since the last post I have learned of several possible avenues to exploit visa vee SEDO - sustainable energy development office- (pls excuse my 'A' typo's) grant availability for multi occupancy developments.
This is not to be confused with the AGO administered PVRP rebate now means tested for income and not available to $100k + home owner incomes.
There’s the Renewable's RAPS Program, Rural Renewable Energy Program (Connect at fringe of grid), Regional Energy Efficiency Program, Off Grid Fossil Fuel Replacement Program and possibly a couple of others. All of these offer capital grant rebates, at least one might be applicable for a mining town development and could offer up to 50% of capital cost for the renewable component.
That’s good, because there’s a bunch of people here all asking ‘when can I start’?
Unfortunately, if you wish to become involved in building or investing in the construction of well designed passive efficient homes powered or partly powered by on site Micro Energy Systems like solar power, there seems to be no sensible incentive other than normal market conditions.
This means that the bulls share of all new developments give only token packaging to the concept, if at all. (Then Hype it for all its worth).
Most commercial buildings with the mandatory Green ratings represent a furphy. Acres of garvity defying sealed up airconditioned glass fronted office or function following form living space with not a PV cell or Electric car re charge point in site.
You won’t see many new suburbs popping up with well designed passive efficient single house and good living land packages or strata developments incorporating wind or solar energy generation systems, simply because the costs currently prohibit it and state and federal policy makers indirectly discourage it by actively subsidising the antithesis.
Infrastructure Australia may be looking into greasing the rails for shipping port developments, discretely discussing nuclear power generation feasibility and fossil fuel alternatives to fossil fuel for the heavy transport industry.
It probably will not however be discussing ways to help industry with the correct kind of responses’.
Like a mandatory National 4:1 green I/P tariff, for example.
If you want to see how fast you can effectively and efficiently develop National Energy Infrastructure, whilst also further developing and maintaining a robust and competitive economy, lobby to implement the mandatory I/P tariff scheme.
You could all pat yourselves on the back and do absolutely nothing else but wear the badge at conferences for the rest of your life as a member of Infrastructure Australia.
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