THE I S S U E 2 August 2013 NSW Budget slow & steady UNAA YP Young Professionals grow A Reformed ALP? Abbott’s first 100 days Clickivist Promises blowin’ in the wind Turkey – a country at the crossroads year The rise of human- computer interaction The brutal world of TV is no place for a man John Mangos for The value of brand From crisis to HERO and back again Why do PR? Election timing Antony Green Wells Haslem: One year on John Wells, Chairman Wells Haslem is now one year old… a wonderful milestone. And we are celebrating with the second edition of The Shell, the official publication of Wells Haslem Strategic Public Affairs. We want to bring you regular updates on issues, public affairs activity, trends in the industry, and insights into client work across our portfolio of activity. The Shell brings a contemporary look and feel to the Wells Haslem brand and is underpinned by more than twenty years’ experience in the public affairs industry. First year of business Wells Haslem Strategic Public Affairs’ first year in operation has been a very successful one. We have grown our client base, improved revenue and cut costs. The year has been marked by some interesting and often difficult projects. Wind farms, submarines, superannuation, construction, religion, education, consumer products and many others have all been part of a varied and interesting first year in business. One of our most recent projects involved At the centre of our firm is the desire to help clients defending the beauty, tourism and farming on communicate better and to resolve issues affecting King Island being overshadowed by 200 giant how they communicate. wind turbines… taking up 20% of the island. While Our work covers all key disciplines of communication: the proponents, Hydro Tasmania, will conduct a strategy development, issues management, feasibility study into the project, it’s no certainty government relations, media relations, crisis to proceed. It has some way to travel yet. management, digital media and FMCG promotion. Our team combines decades of experience in If you think we can help you, or you want to know public affairs, government relations, issues more about our services, please ring Ben, Alexandra or management, journalism, politics, policy advice, me on +61 (0)2 9033 8667, or visit our website and foreign affairs. wellshaslem.com.au. It is made up of John Wells, Benjamin Haslem, Alexandra Mayhew, Kerry Sibraa AO, Julie Sibraa, Trevor Cook, and Michael Baume. Indeed they were a key part of the old firm Jackson Wells – on and off, over a 21-year history. Wells Haslem is not just another PR company. What we really try to do is quickly add value to John Wells our clients’ projects. This is something we have Chairman always been renowned for. Julie Sibraa NSW Budget Slow & Steady Finding new ways to fund infrastructure The recent NSW State Government Budget, handed down by arguably the world’s nicest Treasurer, Mike Baird, was described by some in the media as “boring”. Mike Baird’s response was to say that boring was the new sexy. And for those in the infrastructure sector it was a pretty racy budget. NSW Budget Infastructure pg. 4| NSW Budget – Julie Sibraa hen the political choosing - and the 2013/14 And whilst not overflowing with new O’Farrell budget has continued to make solid and infrastructure spending commitments, Govern- innovative headway towards funding the Budget included funding and ment much needed infrastructure at the same delivery details for a range of major was time as keeping the budget with in transport projects including the $8.3 elected credit rating agency imposed caps. billion North West Rail Link – a single in NSW Making inroads into the backlog will not deck metro-style train line linking the in 2011 happen quickly, particularly given the North West Growth Centre just beyond it did so on the promise of turning on challenges outlined above and the long Rouse Hill to Chatswood, the South around the flagging state economy lead times associated with major West Rail link (an initiative of the Wwhich included a significant construction projects. But given the size previous Government), the Northern infrastructure backlog and no ready of the O’Farrell Government’s Sydney Freight Corridor program and source of funds to address it. parliamentary majority and the two light rail projects. Short termism, vested interest, fear of likelihood of them being in Government But the centrepiece of the infrastructure debt and an aversion to risk acquired for three terms, a period of 12 years, budget was the announcement around following intense media and public they have a unique opportunity to the long awaited WestConnex - a criticism of privately financed projects actually see through the delivery of monster of a road project in scale, like the Cross City and Lane Cove complexity and cost (estimated at Tunnels left the State with a number of around $10-13 billion) that incorporates much needed public infrastructure the completion and widening of the M4 projects sitting on the shelf. And thanks motorway, duplication of the M5 east to the increasing cost of building The sheer motorway and a link between them to material and wages and the complexity include Sydney Airport and Port Botany. of retrofitting infrastructure to an cost“ and scale of The sheer cost and scale of the 33 km already heavily built Sydney WestConnex has WestConnex project has presented a environment, the projects were getting major funding challenge to Government. “ more expensive every year. presented a major The most straightforward part of the Although Labor Premier Morris Iemma funding challenge project – the duplication of the M5 east understood that the lack of investment – on its own would have required a in productivity enhancing infrastructure to Government. substantial up-front financial over the previous decade was a long- contribution from Government even if it term problem for both the residents of were procured as a public private the State coping with congestion and partnership (PPP) with tolling. This is the economy’s ongoing competitiveness, some much needed infrastructure despite the fact traffic revenues are his attempts to find a way to fund new projects. largely known, unlike previous infrastructure ultimately resulted in his The 2013/14 Budget continues this greenfield road projects such as the political demise. process with the proposed lease of the tunnels mentioned earlier. The cost of The sale of the State’s electricity sector, Port of Newcastle – currently the the project simply cannot be covered by which had the potential to generate toll revenue. world’s largest coal export terminal – around $15 billion, challenged one of expected to raise between $700 million The Budget allocated $1.8 billion over the Labor Party’s great shibboleths – the to $1 billion, in addition to the four years (in addition to notion of the necessity of government continuation of savings measures aimed Commonwealth commitments) to get ownership and operation of a range of at reducing the Government’s operating the project started, but more utilities and functions. expenses over the forward estimates, importantly, the Government indicated The O’Farrell Government has no such thereby creating room in the balance how the project would be financed. This constraints – apart from ones of its own sheet to take on additional debt. is the first indication as to how NSW Treasury’s new Infrastructure Financing Some have claimed this new approach Make no mistake, the WestConnex Unit (IFU), tasked with “enhancing the represents the end of the PPP, so reviled project on its own is colossal, not only in State’s financing capabilities for PPPs in recent years, but really it’s just the terms of cost and scale, but because it and other infrastructure funding fact that the projects sitting on the shelf presents a major political challenge models,” has been working since it was for so many years have simply gotten which will use a great deal of the established following last year’s budget. too big for even the most optimistic O’Farrell Government’s political capital. A financing strategy has been designed traffic forecasts and the post-GFC The degree of risk and difficulty is to “minimise impact on the State’s financial sector simply won’t take on the extremely high as the Government, or balance sheet, encourage maximum risk. its delivery agency, will have to manage involvement of the superannuation Government understanding of PPPs and the complexity and major inconvenience sector and provide the State the where they can best be applied to bring the construction will generate on well- capacity to recycle its investment to new forward projects has also matured mobilised inner-west local communities projects”. substantially since the days of the not known for their tolerance in regard to such matters. Drawing from the San Francisco Bay Sydney Airport Rail Line and Cross City Area Transit Authority, the Government Tunnel. The availability model PPP still However, as is often said in politics will fund the first stage of the project, offers enormous benefits for bringing these days when a government is doing but will do so as an equity investment forward infrastructure and the something relatively unpopular “it’s the rather than a capital grant. It will then Government is using this model for the right thing to do”. leverage the value of the tolls to attract new Sydney Convention centre and the Northern Beaches Hospital which will private funding for the next part of the Julie Sibraa is Wells Haslem’s also be operated by the private sector. project. Government is effectively Special Counsel. She was Senior taking the risk for the traffic forecasting So while the progress on addressing Adviser, Infrastructure, to the Hon which will make it a more attractive NSW’s huge infrastructure backlog may Morris Iemma, Premier of NSW in investment for private equity.