Page 1895 - Week 05 - Thursday, 6 May 2010
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In yesterday’s debate on land release and the economy, I quoted an Access Economics report and I think it is worth repeating:
… a piece of good news of late is that the federal government has not been able to restrain itself thus far, still doling out dollars when bad publicity hits the front page. That is poor policy making but it is keeping the ACT’s economy ticking over.
The report also states that the territory’s medium-term prospects have hung in the balance ever since it became clear that federal government expenditure needed to be reined back in over the next few years. Trends in commonwealth spending and moves to restore the commonwealth budget were identified by the Treasurer as a key threat and as having a significant potential to reduce growth in state final demand. The answer to this is to develop our own sustainable industries, but there appears to be very little strategic investment in sectors that represent the best chance at long-term prosperity.
We must recognise that the four key forces affecting the Australian economy are climate change, the ageing population, the information and communications technology revolution and the re-emergence of China and India. As much as these are challenges, they are also opportunities. The information and communications revolution is not over and the low carbon economy is just beginning. The ACT’s resources are not in the ground but in our heads. We are a knowledge-based economy and we should be investing in our strengths.
Other economies have recognised the environmental and economic imperative to shift to a low carbon, green economy. We have a great opportunity to build an economy that will not only help the ACT prosper but will ensure our fair contribution to a more sustainable world. The United Nations Environment Program green economy initiative describes the term “greening the economy” as the process of reconfiguring businesses and infrastructure to deliver better returns on natural, human and economic capital investments, while at the same time reducing greenhouse gas emissions, extracting and using less natural resources, creating less waste and reducing social disparities.
The ACT is well placed to become leaders in renewable energy, energy efficiency, sustainable water systems, biomaterials, green buildings, waste and recycling. The ACT has a small but dynamic manufacturing industry, a less than average proportion of industry share but nevertheless a valuable part of the ACT economy. Given that our education services are more than 50 per cent greater than the national average proportionate share, we should be linking these two sectors and creating a world-class and technology leading manufacturing sector that produces environmentally sustainable products that are also economically sustainable.
We know that public spending in renewable technologies and low carbon initiatives, rather than crowding out the private sector, actually encourages private sector expenditure and stimulates growth in industries that represent the best potential for long-term sustainability. The more we help businesses do the right thing and produce and develop sustainable products, the more businesses can invest in these industries confident of sustained support from government.
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