161 Collins Street
Melbourne, Victoria
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It is fitting that the Government’s first innovation council should be dedicated to the built environment industry.
Few industries are more important to our economy and few have a bigger impact on the way we live.
The Government acknowledged this when it included measures to stimulate housing activity in its Economic Security Package.
We acknowledged it when we acted to restore stability and liquidity to the mortgage market.
And we acknowledged it when we established this innovation council.
There is much more to the built environment than housing, of course.
This is an incredibly diverse industry, and I wanted that diversity reflected in this group.
Thank you for agreeing to take part, and thank you for being here today.
Role of the council
You have critically important work to do – providing advice, promoting dialogue, marshalling expertise, and championing new ideas.
I’ll be relying heavily on your expertise and wisdom, but even more important will be your relationship with the industry itself.
If we want to deal effectively with the innovation challenges and opportunities that lie ahead of us, we will have to mobilise everyone who makes decisions about our built environment – policy-makers, professionals, entrepreneurs and consumers.
That task will be made so much easier by your links to bodies such as:
• the Housing Supply Council (Sue Holliday);
• the Infrastructure Australia Board (Peter Newman);
• the CRC for Construction Innovation (John McCarthy);
• the Australian Housing and Urban Research Institute (Rod Fehring); and
• the Australian Procurement and Construction Council (Mal Grierson – absent today).
Government initiatives
You will play an important role in helping the industry stay competitive as environmental, economic, social circumstances change.
Policy circumstances are also liable to change – as they have since last November – and I’m looking forward to getting your take
on government initiatives affecting the built environment industry.
Initiatives such as:
• the Carbon Pollution Reduction Scheme;
• the National Energy Efficiency Strategy; and
• our push to create a more inclusive society, for example by improving disability access and housing affordability.
Innovation challenges
The global financial crisis is dominating our thoughts at the moment, but it is important that we continue laying the groundwork for Australia’s future – not least by getting serious about climate change.
The recent Review of the National Innovation System identified climate change mitigation and adaptation as national innovation priorities.
Many individuals and organisations in this industry made submissions to the review – again, thank you.
So what does the climate change mean for the built environment?
It will mean applying new technologies to reduce greenhouse gas emissions and meet emission targets.
It will mean training people for green jobs.
It will mean rethinking building materials and construction processes.
It will mean regulatory reform – especially in the area of building standards.
Above all, it will mean focusing squarely on social justice.
It is no good coming up with climate change solutions only the rich can afford – we need solutions that will work for everyone.
Liveability – and individual mobility – should not be seen as privileges, but as basic features of any equitable and inclusive built environment.
We also need solutions that are consistent with our aim of making this industry – like all Australian industries – more productive and competitive.
That’s the advantage of committing to emissions trading sooner rather than later.
This will stimulate the development of new products, processes and services we can use at home and sell to the world.
Green Building Fund
It is critical that we start preparing Australian industry today for the carbon constraints of tomorrow.
That’s the emphasis of initiatives in my own portfolio such as:
• the Green Car Innovation Fund;
• the Clean Energy Innovation Centre that will be part of the Enterprise Connect network; and
• Clean Business Australia.
Two elements of Clean Business Australia – Climate Ready and Re-tooling for Climate Change – are already up and running.
I’m pleased to announce that the third element – the $90 million Green Building Fund – opens for business today.
The fund has been established to increase the energy-efficiency of existing commercial office buildings.
Grants of between $50,000 and $500,000 are available to building owners for retro-fitting or retro commissioning projects.
We will be looking for projects that offer big greenhouse emission reductions, a big demonstration effect, and good design and management.
The fund will meet up to half the project cost.
Industry organisations can also apply for grants of up to $200,000 for projects that will develop the energy-efficiency skills and know-how of commercial building owners and operators.
Again, the fund will meet up to 50 per cent of the cost.
The future
We have a huge job ahead of us, and the best time to start is now.
This council wasn’t just set up to talk – none of you would be here if it was.
We have turned to you because you are thinkers and doers.
You are the kind of people who can generate advice which is both ambitious and realistic – both adventurous and achievable.
As I see it, there are two main items on the agenda for today.
The first is to sort out how you will operate – including how you will engage and communicate with the industry and the wider community.
The second is to start identifying innovation priorities for the built environment sector.
It’s not my task to tell you how to go about that, but I will say to you what I say to every other participant in the innovation system – namely, that our best chance of producing results is by concentrating our efforts and playing to our strengths.
Neither the industry nor the Government has the resources to pursue a thousand hares.
In my view, what we need is a small number of clear, practical priorities.
I’m sure you’ll tell me if you disagree.
That’s how conversations begin.