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Tag Archives: investment

Nice try, Barnaby

August 28 2013: The Coalition has today promised $100 million in funding for the 15 Rural Research and Development Corporations specifically targeted at increasing the profitability of Australian agriculture.

To date, it has failed to actually deliver one additional cent of new money for R&D projects. The hastily contrived $20 billion slush fund for pharmaceutical companies is dependent on the GP co-payment and is a long way from providing any significant money to R&D should it ever come to fruition which is doubtful.

On Thursday, Barnaby Joyce’s announcement that the Queensland grains industry will receive $14.3 million over five years is another sign of desperation by the Abbott Government to shore up votes in Queensland.

The reality is that the Abbott Government has slashed funding

  • $80 million from Cooperative Research Centres
  • $115 million from the CSIRO – the biggest job losses to the organisation in history
  • $11 million from the Rural Industries Research and Development Corporation
  • $7 million of R&D Commonwealth matching dollars cut from Rural Research and Development Corporations announced in the May Budget.

Under Labor’s analysis, there is a total of $836.2 million in direct cuts to research, led by cuts to the CSIRO and the Research Training Scheme, and the abolition of Commercialisation Australia.

It says other savings will also hit research, including the 20 per cent cut to undergraduate places in universities and a more than half-billion-dollar cut to the student start-up loan scholarships scheme.

Add to that $6 billion in combined cuts to higher education and preventative health programs.

The impact of lower funding is likely to slow or stop vital research on infectious diseases such as the deadly Ebola virus. Other efforts that will be affected are the fights against bowel or colorectal cancer, which could stop completely. These had been under way at the CSIRO.

The CSIRO generated $37.5 million in licence fees and royalties last financial year and $278.5 million in 2011-12, when royalties from a wireless technology were significantly higher.

Inventions developed at CSIRO range from cotton seeds to contact lenses, with much of the income returned to the organisation’s research budget.

Much of the royalties flowing in stem from research projects that began decades ago. Among them is wireless technology, which has produced $420 million in the past five years, and pest-resistant cotton seed varieties used in 95 per cent of Australia’s cotton crops. Multinational partners include Bayer and Monsanto as well as local partner Cotton Seed Distributors. Royalties from the cotton seed varieties, developed to be disease and pest-resistant, range between $10 million and $20 million a year.

”A lot of the commercial outcomes we are getting now are based on investment we were able to make in the science using federal government taxpayer money in the past,” Ms Bingley said. ”If we don’t have access to that, then it makes it that much harder to innovate because it’s difficult to get industry to pay for things so early on in development.”

She pointed to start-up companies that have emerged as a result of CSIRO inventions, including GeoSLAM, a company commercialising an advanced 3D laser-scanning device called Zebedee.

Chief executive of BioMelbourne Network, a Victorian industry association for the biotech sector, Michelle Gallaher said much of Australia’s success in the field was founded on CSIRO research. She said the organisation grew not only technology but also talent.

It was also helping at least 50 Australian biotech companies to develop and commercialise their research. ”Any kind of cuts to CSIRO will translate to a lack of opportunity down the track,” she said.

Last August, Education Minister Christopher Pyne said university research cuts could not be ruled out if Parliament continued to block budget measures.

When having his photo taken at a cancer research facility so he could claim his $560 allowance after attending a private function the previous evening, Tony Abbott said:

“We want to get our higher education changes through because they will be good for universities, they will be good for research, they will be good for Australia, but what we are doing is we are modestly reducing government funding but at the same time we are liberating – we are liberating – our universities to achieve what they can because if there is one institution that ought to be capable of looking after its own affairs it is a university, which is, by definition, a bastion of our best and brightest.

But I want to stress here at the Peter Mac – this is a government which is dedicated to science, which is devoted to research, and wants to massively increase Australia’s research effort.”

It seems a convenient devotion to only be discussed during campaigns and ignored during budgets, unless the sick, the unemployed, and our kids are willing to fund it of course.

In Abu Dhabi, at a series of sessions at the World Future Energy Conference on the future of global renewable energy investment and clean energy markets, there was a lot of debate among some of the world’s leading bankers and clean energy developers about which countries offered the best opportunities.

“Australia is dead,” said Edgare Kerkwijk, the head of Singapore-based Asia Green Capital, to the general agreement of all.

Just how dead the market is has been highlighted by the fact that no new projects have gotten financial commitment since the election of the Abbott government in late 2013. In 2014, investment in large scale renewables plunged 88 per cent, taking Australia from 11th ranking to 39th.

A new report from Green Energy Markets, looking at the last quarter of 2014, notes that only one large scale project got new finance approval in 2014 – the 70MW Moree solar farm, and that was mostly due to the financing awarded by the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.

We were asked to judge the Coalition by their actions rather than their words.

Nice try, Barnaby, but your election sweetener to the grains industry pales into insignificance in light of your short-sighted approach to research, development, innovation and investment.

You want a country that has no debt…and no future.

 

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Climate change is irrelevant

In the argument for investment in renewable energy in Australia, the existence, or non-existence of climate change is irrelevant, writes Warwick O’Neill.

Like most semi-intelligent Australians I accept that all the scientific evidence provides near definitive proof that things aren’t looking real bright for our future generations, unless we invest in renewal energy technologies now. But us semi-intelligent Australians are no longer the ones who need convincing, are we?

Tony Abbott, Joe Hockey and the rest of this chamber of horrors masquerading as a Government are the ones who need convincing. But while I think that deep down the majority of them probably do believe the science, they all believe much more in the money flowing into Liberal Party coffers from the likes of Gina, Rupert, and other esteemed members of the IPA. So do we continue doing things the way that we have been ever since these people stole the election, i.e. pleading to their conscience and their desire to leave a clean and sustainable future for our grand kids? Like that’s ever going to work.

As they say, the epitome of stupidity is to continue doing the same thing, in the same way and expecting a different result. We need to stop trying to bash down the front door. We need to stop appealing to their conscience and instead use their enormous egos and greed against them. Let’s stop trying to convince them that climate change is real, and start talking about the only things they care about; economics and legacy.

These people may be able to stick their head in the sand and deny climate change, but there are two unmistakable and unarguable truths which no amount of sand can cover up.

First undeniable truth – our mining resources will run out eventually. Whether it’s in ten years, fifty years or one hundred years, unless their God can miraculously replenish our stocks, we will run out. This will leave Australia with very little to trade and the rest of the world will be quite happy to say “thank you for your contribution to our future” while they wave us goodbye.

Even a government which passes the one collective brain cell around to whoever needs it most can see that this will be an economic disaster. How to avoid it though? By finding another source of income, something else which we can sell to an eager world. It would be hard to argue that Australia, due to its geography, isn’t ideally placed to take advantage of renewable energy production. Heavy investment in this industry could potentially reap enormous financial benefits to Australia. Yes, I know it would buck the trend to have a government in Australia that actually invests in assets rather than selling them off, but humour me.

We all know that solar is a viable source of energy. If solar panels the size of an average house roof can provide sufficient power to run that house, imagine the power output of a 1000 acre solar panel. A few of these strategically positioned and we go a long way towards providing enough power to keep this country ‘rocking and rolling’. Government investment in training could help alleviate the job losses from the mining sector, and these new solar areas could be the future version of today’s “mining towns”.

The Horizontal Waterfalls (source: tripadviser.com.au)

The Horizontal Waterfalls (source: tripadviser.com.au)

Our other advantage is our fifty odd thousand kilometres of coastline. Each inch of this coastline is subject to the one of the truly dependable and predictable sources of energy on this planet – tides. Tidal energy doesn’t dissipate under an overcast sky or when the wind stops blowing. Some areas, such as the “Horizontal Waterfalls” near Broome, have such huge tidal flows that you could imagine, with the right technology in place, potentially provide enough electricity generation to supply the entire top end. And this happens twice a day, every day. But is going largely untapped due to lack of investment.

If any Government properly invested in the research and development and then implemented these technologies, then solar and tidal power could see Australia in a position to provide clean energy at least to the South East Asian region. Our scientists (should we have any left) could no doubt devise efficient and environmentally friendly ways of harnessing this power. The sale of the electricity produced, combined with the manufacture and export of our intellectual property could bring billions of overseas dollars into our economy, easily paying off the initial investment and then adding pure profit well into the future.

The second undeniable truth is that no matter how strenuously Tony Abbott fights against renewal energy, most of the rest of the world, even China, is already making great strides in establishing their own sustainable energy industries. This can mean only one thing for the Australian coal industry – a decrease in the price of coal. The less demand there is, the less it is worth. Economics 1 0 1. So long before coal resources run out, they’re going to be worthless anyway. Failure to start investing now will only mean that the rest of the world will be so much further in front of us when the time comes and we have no other option.

That takes care of the economic angle of attack; now let’s stroke their egos by dangling the carrot of legacy in front of them. Two things any politician who strives for the top echelons of government have in common is a massive ego and a desire to be remembered as one of the giants in history.

Point out to Tony Abbott that he could go down in the annuls of history as the visionary who set up Australia’s economic position in the world for centuries to come, and his ego is sure to be soothed. Actually scrap that. As the “suppository of knowledge” he’d probably think that he’ll be going down in the annals of history as the intellectual giant who scrapped the ‘carbon tax’. Sharp as a marble, our Tony.

But pitch the legacy idea to whoever will be the leader of the LNP once they rid themselves of Tony, and I’m sure they’ll show some interest. Maybe the thought of a gilded statue out the front of Parliament House, honouring their greatness would be enough to overcome the natural desire of most pollies to only look as far ahead as the next election.

Take the whole climate change debate out of the renewable energy argument, and all they are left arguing against is a stronger future economy and their place in history. We could very well get what we wanted in the first place, which is investment in sustainable energy and a brighter, cleaner future. Any military strategist will tell you, if your initial frontal assault fails, change your plan and take them in the flank, where they least expect it.