Infrastructure and planning are key to continued growth, business leaders told

UPDATED: Hopes of a new golden era for the state’s renewable energy exports have been given a boost after a second Bass Strait interconnector was listed as a national high-priority initiative.

A second Bass Strait power interconnector would open up new markets for the export of renewable energy.

UPDATED: HOPES of a new golden era for the state’s renewable energy exports have been given a boost after the federal infrastructure agency listed a second Bass Strait interconnector as a national high-priority initiative.

Infrastructure Australia released its 2019 Priority List yesterday. Tasmanian projects on the list include the University of Tasmania’s $400 million Hobart STEM Centre, a new Bridgewater bridge as well as rail, sewerage and irrigation scheme upgrades.

The Bass Strait cable was cited as one of the medium to long-term opportunities to boost the connectivity and reliability of the National Energy Market and to boost access to renewable energy sources. Its inclusion on the list of national priorities came as business leaders said it was critically needed to boost the state’s energy exports.

Energy Minister Guy Barnett welcomed the project’s inclusion.

“The inclusion of the second Bass Strait electricity interconnector is an acknowledgment of the significant role that Tasmania has to play in the national electricity grid,” Mr Barnett said. “We will continue to progress the feasibility study for the project with the Australian Renewable Energy Agency.”

The Business Council of Australia held its Strong Australia business luncheon in Hobart yesterday, where infrastructure was a hot topic of discussion.

Tasmania Chamber of Commerce and Industry chief Michael Bailey said increasing the state’s ability to export clean energy was a classic example of an opportunity that was going begging.

“If we can get this interconnector up, we will see a number of major wind projects doubling in size,” Mr Bailey said.

Business Council chief executive Jennifer Westacott said the cable was a great example of the “whole mess of energy policy”

“It’s a no-brainer,” she said. “Why wouldn’t you underwrite this?”

Huon Aquaculture executive director Frances Bender said there was a need for longer-term planning of infrastructure in Tasmania.

“One of the challenges we have is that as business owners we have a long-term strategic view of how we need to grow our businesses in the future. We need to have some long-term thinking and it seems these days that isn’t possible,” Ms Bender said. “How can you invest long-term when every five minutes someone seems to change their mind?”

Liferaft Systems Australia managing director Mike Grainger said infrastructure spending in Tasmania was trailing growth in demand — and some of it was fairly basic.

“I’m not sure infrastructure has kept up with that rise,” he said. “It probably goes back to a lack of infrastructure spending going back 25 years. I think the infrastructure, basic infrastructure like roads and bridges, are struggling to keep up.”

Qantas CEO Alan Joyce said Tasmania is an example of how to get tourism right. Picture: RICHARD JUPE

EARLIER: TASMANIA’S tourism industry is a shining example for the nation, but more infrastructure spending is needed to underpin the state’s broader economic growth, business leaders have heard.

The Business Council of Australia held its Strong Australia business luncheon in Hobart today.

Qantas CEO Alan Joyce said Tasmania’s fast-growing tourism sector was outperforming the nation.

“I think what Tasmania has achieved in tourism is a great story for the rest of the country,” he said.

“We have not seen that growth anywhere in the country.

“We’ve been using Tasmania around the country as an example of getting it right … the way it has worked here has been superb.

“You’ve had a catalyst in Mona, you’ve got the events, you’ve got the airlines, you’ve got the hotels.”

TCCI chief Michael Bailey said increasing the state’s ability to export clean energy was a classic example of an opportunity that was going begging.

“If I could wave a magic infrastructure wand it would be for a second electricity interconnector to the mainland,” he said.

“Frustratingly we’re not necessarily seeing this project appear on the national infrastructure list of priorities.

“If we can get this interconnector up, we will see a number of major wind projects doubling in size.”

Panellists at the luncheon, from left, Michael Bailey, Jennifer Westacott, Frances Bender, Alan Joyce, Mike Grainger and MC David Speers. Picture: RICHARD JUPE

Business Council CEO Jennifer Westacott said the electricity interconnector was a great example of the “whole mess of energy policy”.

“It’s a no-brainer, why wouldn’t you underwrite this?” she said.

Huon Aquaculture executive director Frances Bender said there was a need for longer term planning.

“One of the challenges we have is that as business owners we have a long-term strategic view of how we need to grow our businesses in the future,” she said.

“We need to have some long-term thinking and it seems these days that isn’t possible.

“How can you invest long term when it seems that every five minutes someone seems to change their mind about how that should be managed?”

Liferaft Systems Australia managing director Mike Grainger said infrastructure spending in Tasmania was trailing growth in demand – and some of it was fairly basic.

“I’m not sure infrastructure has kept up with that rise, it probably goes back to a lack of infrastructure spending going back 25 years ago,” he said.

“I think the infrastructure, basic infrastructure like roads and bridges, are struggling to keep up.”