The former Industry, Tourism and Resources Department has been divided, quite sensibly, into three: Resources and Energy (Martin Ferguson MP), Innovation, Industry, Science and Research (Senator Kim Carr) and Infrastructure (Anthony Albanese MP); this Department has now also been linked with Transport and Regional Development. Each of these new Departments – and Ministers – is relevant to APIA.

As mentioned by the President, APIA has already had a meeting with Minister Ferguson, in which he indicated a strong and genuine interest in our industry as well as in the future of investment in critical gas transmission infrastructure. One of the initiatives of the new government is the establishment of the advisory group titled Infrastructure Australia, which falls within the jurisdiction of Minister Albanese. I had a meeting with Minister Albanese’s Infrastructure Adviser who explained that Infrastructure Australia would oversee all the nation’s infrastructure. There has been a push from the electricity industry for energy to be excluded from the agenda of Infrastructure Australia, but APIA will continue to argue for the gas transmission industry’s interests, highlighting the need for government policies that encourage the private sector to undertake long-term investment in gas transmission, which is critical infrastructure for the nation’s future.

Minister Carr will be interested in research undertaken by APIA’s Research and Standards Committee, which has many important projects underway. In the past two years, government funding in the form of AusIndustry grants has also contributed to the research. AusIndustry officials have informed the Research and Standards Committee Executive that they are impressed with the work already being undertaken and are looking forward to continuing their involvement with APIA.

The new government has also divided the former Environment Department, separating technical environment issues from the important and high-profile issue of climate change. Peter Garrett MP has responsibility for the Environment Department that will handle the technical issues of interest to many of our members involved in construction and operation of pipelines. Overseeing the major policy area of climate change will be Minister for Climate Change and Water Senator Penny Wong, but her Department will operate through, or be closely overseen by, the Prime Minister’s own Department.

APIA has been very involved in the public debate about reducing the carbon emissions caused by energy generation. It is important to raise awareness of the benefits of using natural gas in energy generation. Natural gas is a cleaner burning fuel than is coal and it uses less water than does coal-fired power generation. Renewable energy sources will obviously be a major part of the nation’s energy-generation future, but it will be some time before the technology makes renewable energy commercially viable. This is why natural gas is an important part of Australia’s energy-generation future – in the short to medium term as the nation makes the transition to cleaner energy, and in the future as a back-up for renewable energy sources and as a ‘cleaner’ fuel in its own right.

The government’s own adviser, Professor Ross Garnaut, has indicated in an interim report that he believes the government should bring forward its carbon emission reduction targets. APIA has highlighted that the best way to do this is to encourage the use of natural gas. The gas – and its technology – is available now. And this industry is ready to act.

APIA will also take interest in other portfolios including Finance and Deregulation (Lindsay Tanner MP) and Competition Policy and Consumer Affairs – essentially the ACCC’s Minister – (Chris Bowen MP) as we argue our case for easing regulatory pressures on the industry.

The next few years promise to be very interesting.

Cheryl Cartwright

Chief Executive