The Education Investment Fund and the Call for 20% Renewable Energy by 2020. (May 6, 2009)

Two pieces in today's Australian if they strike the right chord with the federal government could have a profound effect on Australian tertiary education and enabling research sectors, but it all depends how far beyond the fringe of the carpet Prime Minister Rudd and his cabinet can see.

The chairman of the Education Investment Fund (EIF), Mr Philip Clark, speaking with Andrew Trounson told him that the $2.4 billion in infrastructure support the Government announced for the sector last year was expected to translate into a $10 billion economic stimulus during the life of the projects and nearly 95,000 jobs, based on Australian Bureau of Statistics multipliers".

He went on to say: "We will have to scale back (disbursements) at some stage, but now isn't the time. I'm very keen to keep it happening in these tough times, and I'm hoping the Government will see its way through to do that. I'm certainly hoping for a large figure."

So far some 150 applications have been received from universities, the vocational sector and research institutes seeking $5.5 billion of EIF funding for projects totalling $11.6 billion.

Mr Clark emphasised the point that the funding allocated so far "is really paying off in terms of economic stimulus and job creation but is still consistent with the original objective of having capital excellence in the sector". The breakdown of funding to date was universities, 38%, research institutes, 35% and the vocational sector 27%.

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Meanwhile, last week the Council of Australian Governments endorsed a mandatory renewable energy target of 20% by 2020.

According to the Clean Energy Council's (CEC) chief executive, Matthew Warren, the 20% - 2020 target brings Australia to the brink of unleashing more than $20 billion of new clean energy investment. However, as the CEC points out: "The final step in delivering a revitalised green energy industry in Australia will be the swift approval of Federal Parliament when the (renewable energy target) bill is tabled in the coming weeks."

In Mr Warren's opinion: "Australia and the US are the only two countries that have outstanding natural assets. We have bio-energy, world-class wind on the roaring 40s, great geology and sunshine, good hydro, very strong ocean currents; a Melbourne Cup field of renewable resources."

And he went on to say that he believed universities would play an increasingly vital role in improving the efficiency and driving down the cost of technologies based on natural resources and training the various professionals to drive the change. But he also stressed: "We have to think about how we better co-ordinate those efforts so good ideas aren't lost and concentrate schools of leading thinkers so we don't waste scarce resources."

If the universities are to play a key role in the 20% - 2020 target, adaquate governmental and industrial backing will be needed; which is where the EIF comes in, but in addition, if the applied research, innovation and engineering expertise is to be acquired, there also needs to be a sound intellectual infrastructure of the enabling sciences in support.

Which gets us back to the view beyond the carpet's fringe.