Allen was appointed to take APIA from an organisation with no political influence and no well-developed economic arguments to a force that was prepared to deal with the challenges that then faced the industry: privatisation, deregulation, reregulation, disintegration and the unknown challenges that lay ahead. The Australian Pipeliner spoke to a few key APIA members about Allen’s contribution.
Outgoing Australian Pipeline Trust Managing Director Jim McDonald served three terms as APIA President, including two while Allen was Chief Executive. Recalling Allen’s appointment, Jim said, “Pipeline owners were seeking a stronger political presence and were prepared to contribute more in order for that to be achieved, so membership categories were created with contributions for each category, giving rise to the opportunity for a professional secretariat, based in Canberra. The Association then set about finding someone to head it up – Allen had a perfect background, having worked in the government department that had instituted the reform process and then working with the Australian Gas Association (AGA) in policy development.”
Allen was first introduced to APIA members by Gary O’Meally, who had been Interim Executive Manager, in November 1998 at the Convention in Brisbane. Looking back on this Gary noted that Allen was recruited out of the AGA, saying, “APIA under his leadership has become the association which represents gas compared to other fuels in Australia. He has led the charge in making sure the regulatory process in Australia has a minimum of draconian elements.”
Barry Wood, founder of Pipeline Publications recalled Allen’s introduction to the industry, saying, “Gary O’Meally carried out a TV style interview which Allen handled with confidence and humour, giving a good insight into his background and plans for APIA.”
Gary also mentioned the role Allen played in increasing APIA’s media profile, adding “He has earned respect amongst policy makers and politicians around Australia. APIA itself has been firmly established in Canberra and has enjoyed a high profile amongst the community of national associations.”
Jim McDonald agreed, saying “It’s fair to say the direction the Association was taking was not unanimously agreed upon by all sections, but the Association under Allen has developed and strengthened in such a way that the concerns of many members have been addressed.
“APIA’s arguments with respect to regulation have been totally consistent under Allen’s stewardship. He successfully argued that the code in its present form inhibits investment and reduces the opportunity for the industry to build the maximum number of pipelines to maximise the reach of natural gas and to assist it to establish its rightful position as a fuel of choice for all Australians in all applications.
“Allen consistently argued that the interpretation of the code by regulators has been incorrect. We’ve argued that it is open to the regulators to look at the reasonableness of the rate case submitted by the pipeline owner or operator, but that the regulators have chosen to impose their will through a forensic building block approach to tariffs, resulting in unrealistic tariffs for pipelines.
“We’ve also argued pipelines do not really require to be regulated as contract carriage on most major existing pipelines and contract negotiations that permit new pipelines to be built invariably result in agreement between equals, major customers and pipeline owners to enable owners to commit new pipelines.
“Allen’s consistency of argument and considerable intellect have been hallmarks of his tenure and perhaps his major achievement.”
APIA Honourary Life Member Bob Gration said “Allen has had an enormous impact on our Association with his proactive attitude. His exposure on behalf of the APIA to other allied industries through speeches, papers and meetings proved a significant gain factor for the Association.
“Our Association has undergone many significant changes in recent years and led by Allen’s premise that all “˜living’ organisations adapt or they wither on the vine, he set about improving the APIA’s effectiveness for its members.”
Jim McDonald also pointed out that, “The other matters of note are evident at our annual convention where we now have record attendances; the exhibition has become an institution in its own right and a great opportunity for our equipment suppliers and others to display their wares. As well as this the convention contributes significant revenue to the activities of the association, and membership is at a record high.
“Although not technically minded, Allen was a great supporter of the technical achievements under the CRC and especially of the importance of the continued development of AS2885. He was a powerful advocate of pipeline interest to the technical regulators, leading towards the practical acceptance of AS2885 as the national and sufficient standard for pipeline construction and operations.
“It hasn’t been without challenges, the change in the ownership structure of pipelines by exiting North American pipeline companies in particular, has been a concern to Allen over the past year whilst he still wrestled with the outcome of the Productivity Commission report which provided a way forward through his discussion with government. Structured input and argument was a significant contribution to the clarity of thought that resulted in the Productivity Commission’s decision.
“He’s leaving before his main objective has been attained, that being a better regulatory system, better attuned development of this vital infrastructure and less concerned with bureaucratic control of revenue streams in ageing pipelines. It is now to his replacement to pursue that.”
Gary O’Meally concluded by saying that Allen is “articulate, a clear thinker, has a wide network of contacts and tinges his professionalism with a sense of fun, on appropriate occasions.”
Barry Wood said that over Allen’s years at APIA, the two developed an excellent relationship, thanks to Allen’s assistance, cooperation and his sound advice which was always welcomed.
Barry said, “From myself and the team at Pipeline Publications, we wish Allen every success in his new endeavour and thank him for his contribution to success of The Australian Pipeliner.”
Jim finished by noting that Allen possesses a considerable intellect and was well known and respected in Canberra. “He was driven by clear premise that if we can get better regulation will build more pipelines and all of APIA’s membership will benefit.”
Bob said, “Allen is leaving behind an excellent team through his motivating force of setting high standards in his decision making. Allen’s sense of humour and participation in the social atmosphere of the Association, especially the annual conferences will be missed but hopefully we will see him as a delegate or a speaker in the future.
“We wish you all the best in your future and hope that you do not forget your six years as a pipeliner, because we will not forget your input to the Association.”
Current APIA President Mark Twycross said “Allen provided strong leadership during five difficult years of debate and enquiry into the application of the Gas Access Code. We are well pleased with his work, and wish him well in his new international appointment.”