The politics of progress

A good mate of mine is in the medical profession. He's a doctor. Involved in research. He's trying to get his head around the Green Car Investment Fund (GCIF) that's awash with $1.3 billion in folding to promote greenhouse gas-reducing technology for Australian cars. Yes, that's a paltry amount by modern anti-recession cash-splashing standards, but a handy wedge for the warriors seeking a cure for cancer.

So I told him how it is, this new Aussie political reality.

The Federal Government will fund a quarter of the costs of bringing to market a new technology that significantly reduces fuel consumption in passenger cars and/or reduces exhaust emissions (though there's not a cent for alternative fuel distribution systems nor a dollar for cleaning up trucks or buses, mind).

Unless you happen to be Ford Australia, Toyota Australia or GM Holden Ltd who can pitch for up to $300 million a-piece, individual component makers and back-yard genii have to battle for upwards of $100,000 each. Since the "Last Three Standing", as Otto likes to view them, have their mouths full of $900 million, there's but $400 million left for the component guys on their own, though of course they are allowed to team up with the Last Three Standing, so long as the carmakers aren't the lead companies on the project.

The benefits of the technology you develop have to be realised within Australia, and there are some pretty arduous reporting requirements, not to mention the hoopla of a competitive tendering system, and making nice with AusIndustry's Customer Service Managers.

Obviously it's harder to ask for $950,000 from the government than $950. For the latter you need just fill in a tax return and the cash turns up magically in your bank account (Coalition Senators permitting).

So my medico mate starts thinking about this and comes quickly to the conclusion that the propeller heads in their garages in Kedron, Moonee Ponds and Cronulla who have been quietly working on the cleanest petrol engine in Christendom in their spare time for the best part of 30 years will jump for joy. That is until such time as they realise that when they have convinced the guardians of the competitive tendering system their secret tech (which no doubt ceases to be secret the second it is presented) will really only see any meaningful profit if it is put into large scale production.

Which means Ivan the backyard inventor has to not only sell the concept to the Feds, he has to sell it to Toyota or Ford or GMH.

After all, to see the results of the investment in production in Australia, means Toyota, Ford and Holden have to like the idea, haven't thought of it already, and don't have it in their global corporate technology armoury on a back shelf where they keep untold thousands of ideas courtesy of their legions of auto engineers.

The brilliant invention then has to be guided through the myriad of corporate technology gateways, be authenticated, production planned into the model cycle and then be farmed out to a sweatshop in North Melbourne where it will be produced for no more than six shillings and sixpence a-piece.

After explaining this to Doc Martin, he was quiet for a while and then grunted something surprising about his similar struggles to get new life-saving medicine approved by the FDA and the Australian Therapeutic Goods Administration.

So we sat there staring at our beers for a while. Mulling it over. Trying to understand what type of chap conceives of an idea that would reduce fuel consumption, and would have the energy to go through the competitive tendering process with its reams of forms, quarterly auditing, milestone reporting scheduling, and finally surmount the production obstacles in the pursuit of a sweet royalty payday.

"Surely," said Doc Martin, "the smart thing to do would be to take the plans to China and canvas one of the hundred of companies there, pocket $50,000 for your trouble and buy a new tinnie for fishing trips to the lake?"

I did try to explain that broadly speaking, China offers a very loose interpretation of internationally accepted norms regarding intellectual property rights, and that the mere act of unfurling the plans in the vicinity of the People's Republic was akin to kissing the earn goodbye.

"Well," he said, the premium beer starting to caress his remaining grey cells into action, "what about if he came up with a device that would not need to be fitted to a new car on the production line, but would be applicable to all cars on the road already?"

It seemed a logical enough question and one that would have the inventor on the fast track to fabulous riches given we have 15 million motors wheezing around the big brown land compared with a diminishing number of locally manufactured cars rolling off the production lines Down Under.

I spared him the Peter Brock Energy Polarizer story and punctured his thought balloon thus: When exactly was the last time you patronised one of the many automotive accessory retailers' supermarkets, I enquired.

Doc gazed ruefully out the window at the VW Passat, resplendent in silver paintwork and luscious black leather, reposing in quiet serenity in the driveway unsullied by anything non-genuine VW.

"Point taken," he muttered.

Much later it dawned on us that the easiest way for the government to see some return on its investment and stimulate Australian technological success was to mandate the adoption of the five brightest fuel saving/emissions reducing ideas that are born from the GCIF. Not only would it ensure locally made cars are fitted with the technology, but overseas makers would have to buy it and fit it too if they wanted a share of our new car market.

Doc endured another moment of startling clarity.

"This is just a con to give the local manufacturers a swag of money to keep them in car making in Australia to bolster our national pride, and keep car workers in jobs and out of the dole queues, isn't it? That $400 million for the component folks is just a sop."

He paused to pluck another frosty from the fridge and with a cheeky spark in his eyes offered: "Why not pull two plug leads from the engine of all locally made sixes?"

I groaned. "Holden's already done that with their V8s, and anyway there wouldn't be nearly enough bureaucratic form filling-in and earnest hearings in Canberra to keep the busybodies employed with such a simple solution. That's like building a Camry Hybrid. The hard work's done, and all you have to do is send the boys round to the Treasury with a couple of wheelbarrows for the cash after the fact."

Then another abrupt black cloud descended.

"What if the Federal government spends all this money, has a university full of native Einstein's coming up with brilliant cutting-edge concepts, and the American carmakers go broke?" Doc wondered.

"Aren't they already on Federal life support in Detroit? Who will benefit from the Aussie ingenuity then?

"They don't even need to go broke," I sighed, "just withdraw from Australian manufacturing."

"Hey, wait up. What if that's after our taxpayer funded brilliance has already been conferred upon their R&D department? What's to stop them taking the brains' trusts' finest work and scarpering off to their own factories in China?" he said, more depressed than ever.

I suggested it could be viewed as Australia's great altruistic contribution to the wiping of the internal combustion engines' bum, and I tried to assure him the government would never let the technology out of its sight, but then I did recall item 5 on the "Eligible Expenditure" section of the voluminous tome that passes as the GCIF Framework document that does indicate the government will spring for a quarter of the costs of applying for patents but not add a penny to any defence of the IP. In other words, you'd be on your own.

Doc threw his hands up in the air.

I tried to console him with soothing words from Kevin Rudd. "Australia needs a car industry clever enough and farsighted enough to make motoring more affordable to working families and less costly to the planet," quoth I, imitating the dulcet tones of our esteemed leader.

"More affordable to working families and less costly to the planet?" he choked.  "More chance of killing off Cholera in Zimbabwe while finding a cure for cancer."

And he would know...