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Adele Ferguson February 27, 2008
ROD Eddington, the former head of British Airways and Ansett, will have a key say in Australia's economic future after Kevin Rudd put him in charge of overseeing up to $200 billion worth of projects designed to end the nation's infrastructure nightmare.
Sir Rod, the Prime Minister's top business adviser, was yesterday named chairman of Infrastructure Australia, the new body that will have the power to override state governments and withhold commonwealth funding to ensure priority is given to infrastructure projects it considers most important.
IA has been charged with compiling an infrastructure priority list within 12 months, and will determine which major projects will be publicly and privately funded.
Speaking at an industry gathering in Sydney yesterday, Infrastructure Minister Anthony Albanese stressed the importance of fixing the problems of the nation's roads, railways and ports. He said backlogs were costing up to 0.8per cent of GDP in lost production - about $8 billion a year - and that $30 billion to $35 billion worth of investment was required in the nation's energy sector by 2020.
Mr Albanese said the new body would complete a priority list within 12 months, and would present it to the Council of Australian Governments by March next year.
The Australian understands two of the first projects on the priority list will be the completion of a four-lane motorway linking Brisbane, Sydney and Melbourne, and a $5billion-plus Melbourne east-west transport link.
Sir Rod is already working on a project commissioned by the Victorian Government to develop a list of options for the east-west link.
Mr Rudd has set specific goals of meeting water and energy needs, saving time for commuters battling traffic congestion in the major cities, and efficiently moving freight from regional areas to ports, as well as meeting the challenge of climate change.
Mr Albanese will announce the other 11 members of the IA board when the enabling legislation goes through the Senate on March 20. The other board members will include four other private sector representatives, as well as representatives of the state and federal governments.
Perth-born Sir Rod is considered one of Australia's most respected businessmen. He was awarded a knighthood in 2005 for services to civil aviation after spending five years as chief executive of British Airways. He was also chief executive of Ansett, leaving one year before the airline's collapse, and of Cathay Pacific.
He is a director of News Corporation (owner of The Australian), mining giant Rio Tinto and investment bank JPMorgan's Australian arm. He also chairs Victoria's Major Events organisation and heads the Prime Minister's Business Advisory Council.
His reputation has been dented this year by his role as a director of Allco Finance Group, which is struggling to survive under a mountain of debt. Some of Allco's troubles stem from its infrastructure investments. He will take on the paid role of IA chair on a part-time basis. Mr Albanese said he was pleased to have someone of Sir Rod's calibre as chair. "He will bring strong leadership and formidable experience to the role, with a career in domestic and international transport and aviation stretching almost three decades." Mark Birrell, chairman of lobby group Infrastructure Partnerships Australia, said Sir Rod's appointment was an excellent choice. "He's uniquely experienced, wise and approachable, so you couldn't have a more valuable appointment," Mr Birrell said. "Sir Rod was commissioned by the British Government to undertake a landmark study into the United Kingdom's transport networks and the link between transport infrastructure and national productivity." The new position will wield enormous power as it will entail responsibility for prioritising a list of infrastructure projects, which The Australian estimates at more than $200 billion. IA will then monitor the progress of investments and report back to COAG - a process aimed at stamping out the misuse of government grants. Mr Albanese said he believed the new structure would "considerably increase private sector investment in infrastructure" by providing a steady stream of investment opportunities and standardising tendering and planning processes across the country. "Currently, there is no pipeline of projects steadily on offer to potential investors - a deficiency Infrastructure Australia will address," he said.
ROD Eddington, the former head of British Airways and Ansett, will have a key say in Australia's economic future after Kevin Rudd put him in charge of overseeing up to $200 billion worth of projects designed to end the nation's infrastructure nightmare.
Sir Rod, the Prime Minister's top business adviser, was yesterday named chairman of Infrastructure Australia, the new body that will have the power to override state governments and withhold commonwealth funding to ensure priority is given to infrastructure projects it considers most important.
IA has been charged with compiling an infrastructure priority list within 12 months, and will determine which major projects will be publicly and privately funded.
Speaking at an industry gathering in Sydney yesterday, Infrastructure Minister Anthony Albanese stressed the importance of fixing the problems of the nation's roads, railways and ports. He said backlogs were costing up to 0.8per cent of GDP in lost production - about $8 billion a year - and that $30 billion to $35 billion worth of investment was required in the nation's energy sector by 2020.
Mr Albanese said the new body would complete a priority list within 12 months, and would present it to the Council of Australian Governments by March next year.
The Australian understands two of the first projects on the priority list will be the completion of a four-lane motorway linking Brisbane, Sydney and Melbourne, and a $5billion-plus Melbourne east-west transport link.
Sir Rod is already working on a project commissioned by the Victorian Government to develop a list of options for the east-west link.
Mr Rudd has set specific goals of meeting water and energy needs, saving time for commuters battling traffic congestion in the major cities, and efficiently moving freight from regional areas to ports, as well as meeting the challenge of climate change.
Mr Albanese will announce the other 11 members of the IA board when the enabling legislation goes through the Senate on March 20. The other board members will include four other private sector representatives, as well as representatives of the state and federal governments.
Perth-born Sir Rod is considered one of Australia's most respected businessmen. He was awarded a knighthood in 2005 for services to civil aviation after spending five years as chief executive of British Airways. He was also chief executive of Ansett, leaving one year before the airline's collapse, and of Cathay Pacific.
He is a director of News Corporation (owner of The Australian), mining giant Rio Tinto and investment bank JPMorgan's Australian arm. He also chairs Victoria's Major Events organisation and heads the Prime Minister's Business Advisory Council.
His reputation has been dented this year by his role as a director of Allco Finance Group, which is struggling to survive under a mountain of debt. Some of Allco's troubles stem from its infrastructure investments. He will take on the paid role of IA chair on a part-time basis. Mr Albanese said he was pleased to have someone of Sir Rod's calibre as chair. "He will bring strong leadership and formidable experience to the role, with a career in domestic and international transport and aviation stretching almost three decades." Mark Birrell, chairman of lobby group Infrastructure Partnerships Australia, said Sir Rod's appointment was an excellent choice. "He's uniquely experienced, wise and approachable, so you couldn't have a more valuable appointment," Mr Birrell said. "Sir Rod was commissioned by the British Government to undertake a landmark study into the United Kingdom's transport networks and the link between transport infrastructure and national productivity." The new position will wield enormous power as it will entail responsibility for prioritising a list of infrastructure projects, which The Australian estimates at more than $200 billion. IA will then monitor the progress of investments and report back to COAG - a process aimed at stamping out the misuse of government grants. Mr Albanese said he believed the new structure would "considerably increase private sector investment in infrastructure" by providing a steady stream of investment opportunities and standardising tendering and planning processes across the country. "Currently, there is no pipeline of projects steadily on offer to potential investors - a deficiency Infrastructure Australia will address," he said.
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