Date: Tuesday 9 June

Speakers: Eric Groom, Principal Advisor, Independent Pricing and Regulatory Tribunal and Mike Smart, LECG

Report prepared by LECG for IPART: An empirical estimate of CityRail’s marginal costs and externalities

Topic: Externalities of rail travel and how these can be reflected in fare setting

Abstract: Public transport generates two types of external benefit that should influence fare setting. The first is a reduction in the disbenefit suffered by motorists due to traffic congestion. The second is a reduction in the disbenefits suffered by the wider community as a result of automobile usage. These include costs of emissions of greenhouse gases and conventional air pollution, accidental death and injury to pedestrians. The authors discuss IPARTs fare-setting process for CityRail and how externalities were factored in. A mathematical fare optimisation process is set out and applied to estimate optimal fares and external benefits for Sydney bus services.

Bios: Mike Smart, a consulting director based in LECGs Sydney office, works primarily in the fields of competition, pricing and business strategy, focusing on infrastructure and other networked businesses. He applies empirical economics to valuation, costing, corporate strategy, regulatory and competition policy issues. Mike has advised the Australian industry leaders in rail, telecommunications, logistics, gas, mining, electricity and aviation, among other private and public sector organisations. His advice includes the preparation of reports, submissions, board papers, financial models, and testimony. Mike has given expert evidence in the Federal Court of Australia and the Australian Competition Tribunal. Prior to joining LECG in March 2008, Mike was a vice president of CRA International and an executive director of the Network Economics Consulting Group (NECG). Before joining NECG, Mike was the manager of corporate strategy for the Rail Access Corporation of NSW during its corporatisation and first three years of operation. That role encompassed commercial and regulatory challenges including development of an access pricing strategy and negotiating access contracts, as well as a significant contribution to the development of the NSW Rail Access Regime. Prior to that role, Mike advised the Public Accounts Committee of the NSW Parliament, worked as engineering manager in a data acquisition and machine vision firm, and consulted, in California, to the airline and electric power industries. Mike is a member of the Trade Practices Committee of the Business Law Section of the Law Council of Australia.

Eric Groom is Principal Advisor with the Independent Pricing and Regulatory Tribunal (IPART) of NSW, which is responsible for the regulation of transport fares, water prices and retail energy prices in NSW. IPART also supervises energy and water licencing and undertakes a range of special reviews for government. Eric first joined IPART when it was established in 1992. As Principal Advisor he provides input across a broad range of reviews and is responsible for IPARTs cross-sector research program. From 2004 2007 he worked with the World Bank as a principal regulatory advisor. Prior to joining IPART Eric worked with NSW and NZ Treasuries, the Department of Energy and Minerals and the State rail Authority of NSW. He has a BEc (hons) from the University of Sydney and a MEc from Macquarie University.

Date: Tuesday 19 May

Speaker: Professor John Stanley, Adjunct Professor, ITLS-Sydney and Bus Industry Confederation Senior Fellow in Sustainable Land Transport

Topic: Climate change and land transport

Abstract: Transport is Australias third largest and second fastest growing source of greenhouse gas (GHG) emissions. The road transport sector makes up 88 percent of total transport emissions and the projected emissions increase from 1990 to 2020 is 64 percent. Achieving prospective emission reduction targets will pose major challenges for the road transport sector. This paper investigates two targets for reducing Australian road transport greenhouse gas emissions, and what they might mean for the sector: emissions in 2020 being 20 percent below 2000 levels; and emissions in 2050 being 80 percent below 2000 levels. Six ways in which emissions might be reduced to achieve these targets are considered. The analysis suggests that major behavioural and technological changes will be required to deliver significant emission reductions, with very substantial reductions in vehicle emission intensity being absolutely vital to making major inroads in road transport GHG emissions.

Bio: John joins ITLS in July 2008 as Adjunct Professor and Bus Industry Confederation Senior Research Fellow in Sustainable Land Transport. Prior to recently taking on this role, he had nine years as Executive Director of Bus Association Victoria, after eight years as Deputy Chairman of the National Road Transport Commission. He is a member of the Committee for Melbourne's Transport and Climate Change Task Forces, and is a board member of the Victorian Alpine Resorts Co-ordination Council. John is also Chair of the Advisory Committee for the Monash University Institute of Transport Studies. He was awarded a Centenary Medal for services to public transport and conservation.

Date: Tuesday 5 May

Speaker: Peter Abelson, Managing Director, Applied Economics P/L

Topic: The economics of the taxi industry and taxi reform in NSW

Abstract: This paper reviews the performance and regulation of the taxi industry in Sydney. The taxi industry is a complex set of arrangements between taxi plate holders, taxi radio networks, taxi operators and taxi drivers. However, the paper shows that the industry is a heavily regulated, poorly performing, virtual monopoly. A review of the economics literature finds that there are few efficiency or equity reasons for the kinds of regulation in place in Sydney. Rather, the regulations contribute to the monopoly control and the inefficient performance of the industry. The paper then provides estimates of the benefits and costs of abolishing entry restrictions (subject to safety standards) along with other reforms that would allow increased competition.

Bio: Peter Abelson is Managing Director of the consultancy Applied Economics P/L, a Visiting Scholar at the University of Sydney, and Adjunct Professor of the Australian and New Zealand School of Government. He is also a part-time principal economic advisor to the NSW Treasury. Peter obtained a PhD in Economics from London University. He taught economics for many years at Macquarie University where he held a Personal Chair in Economics from 2001 to 2005. His consulting work focuses on public policy and includes public finance, transport, urban and environmental economics, health and education economics, and social welfare programs. He is the author of Public Economics: Principles and Practice (2008), McGraw-Hill, which is a leading text in this field in Australia. He has also published many articles on transport economics.

Date: Tuesday 21 April

Speaker: Peter Harbison, Executive Chairman, Centre for Asia Pacific Aviation

Topic: The future of the airline industry?

Abstract: The airline industry is heavily regulated. "Flag carriers" have been heavily protected, whether or not they are "government owned", which has led to distortions and has meant that airlines have consistently returned results which fall far short of other industries - and are rarely sufficient even to cover the cost of capital. It is regulated by inter-government bilateral air services agreements, whose underpinning is protectionist rules on foreign ownership. The result is to restrict market entry. There has been considerable actual and de facto liberalisation of the marketplace in this region in the past decade notably surrounding the role of LCC, AirAsia. But there is a long way to go. Today the industry is undergoing an unprecedented challenge to its viability. Recent passenger and freight traffic figures, notably in the premium passenger segments (first and business, as well as full economy), have fallen far beyond any previous experience. This downturn will lead to major changes, and the longer and deeper this "Global Recession" is, so the changes will be greater. Airlines have limited options at their disposal, other than to contract, to reduce losses. There is sometimes the possibility of "merger" in one form or another, but this is not the best time to be consolidating and government restrictions on ownership make full mergers near-impossible. There have been some attempts at multilateral liberalisation in this region. But these are faltering. Hopefully, in these circumstances, governments will not resort to further protectionism, but will recognise this opportunity to restructure the regulatory system.

Bio: Peter Harbison is Executive Chairman of the Centre for Asia Pacific Aviation (often known as CAPA). He established the Centre in 1990. Today it is the worlds most prolific aviation publishing house, currently producing 14 aviation industry newsletters, market analysis and numerous country reports and maintaining several aviation websites. Peter is a well-known aviation consultant and commentator on Asia Pacific aviation issues. He has a comprehensive knowledge of the nature and function of international, domestic and regional aviation industry and market structures, the drivers of tourism growth and development, the value chain and bilateral air services negotiations, underpinned by a background in law and economic regulatory affairs and experience in international and domestic regulation. Peters career in aviation comprises more than 35 years, in government and the aviation industry, including two years with the Australian mission to the International Civil Aviation Organisation (ICAO) in Montreal and 10 years at a senior level in the International Air Transport Association (IATA) in Geneva. Over the past 20 years, he has conducted more than 200 consultancy projects either as project manager or senior advisor, from the Middle East, India, China and most parts of Asia to the South Pacific. CAPAs subsidiary, CAPA India, is in the process of developing the worlds first comprehensive aviation training campus, CAPA AeroPark, in India. Peter is President of the Australian Aviation Council (AUSAC), former Chairman of IATAs World Aviation Regulation Monitoring Group, which produced a major report on the issue of Ownership and Control in the global aviation industry, immediate past President of the Aviation Law Association of Australia and New Zealand and a former IATA Travel Agency Commissioner. He is also a Board Member of the Foundation on Antivirals. He holds LLB (Melbourne), LLB (London), LLM (McGill).

Date: Tuesday 7 April

Speaker: Professor Jean Shaoul, Manchester Business School, University of Manchester

Topic: Evaluating the cost of PPPs in transport

Abstract: The turn to private finance via Public Private Partnerships has been justified in terms of providing the additional finance that the state could not provide and/or deliver value for money through the greater efficiency of and the transfer of risk and costs to the private sector. The ex post facto financial evidence from transport projects in the UK, in roads, rail and London Underground and road projects in Spain shows that: firstly a significant element of the charges, whether paid by the state or user, represents the cost of finance; secondly the cost of private finance is nearly double the cost of public finance; and thirdly this is underpinned by various forms of public support. Some of these deals have failed or had to be renegotiated. Not only do these findings undermine the arguments used to justify private finance, they also point to the way that transport policy in the future will be governed by the financial needs of the transport providers rather than the needs of the broader public and future generations.

Bio: Jean Shaoul is Professor of Public Accountability at Manchester Business School, University of Manchester, where she analyses public finance and policy and the implications for taxpayers and the public. She has written and researched widely on the infrastructure industries, privatisation, the use of private finance in public infrastructure under the UK governments Private Finance Initiative and Public Private Partnerships a policy that is being adopted around the world with a particular focus on healthcare and transport financing. In the context of transport, she has written on: The use of private finance in rail: privatisation, rail leasing, post privatisation rail costs, and the London Underground and National Air Traffic PPPs; The use of private finance in roads: the cost of DBFO road projects in Britain, the cost of private finance in Spain, the Skye Bridge PFI, the M6 Toll Road, etc.

Date: Tuesday 24 March

Speaker: Jim Glasson, Director General, NSW Ministry of Transport

Topic: Metropolitan Bus Reform

Bio: Jim Glasson was appointed Director General of the Ministry of Transport in June 2006 after acting in the role from November 2005. Before that time he was Deputy Director General. Before joining the MoT Jim Glasson was acting CEO of the Port Kembla Port Corporation, responsible for the provision of Port Management for the Port of Port Kembla, including shipping management. Jim has an Honors degree in Urban and Regional Planning. Since becoming Director General Jim Glasson has been committed to building partnership with key stakeholders. The MoT has approximately 250 staff located in the Sydney CBD, Parramatta, Newcastle and Wollongong. The MoT is organized into 2 operating groups each reporting to the Director General, the Policy and Strategic Coordination Group and the Transport Services Group. The MoT recurrent appropriation funding is over $3.4bn pa.

Date: Thursday 26 February

Speaker: Gustav Nielsen, Research Planner and Market Analyst, Institute of Transport Economics, Norwegian Centre for Transport Research

Topic: Public transport network design under different market and institutional settings

Abstract: Gustav Nielsen will talk about the definition of key properties of urban public transport networks which will support an attractive, competitive and efficient public transport system in urban regions. He will invite the audience into a discussion of a number of principles and design factors that might be used to improve existing public transport systems when the institutional framework facilitates the planning and design of the network on a regional and local authority level. His presentation will be based on his work on public transport planning in the Interreg HiTrans project, current work on a Best Practice Guide for New Zealand cities, and studies of practical solutions and experiences in a number of cities and regions in Europe.

Bio: Gustav Neilson is a Senior Research Planner and Market Analyst at the Institute of Transport Economics, Norwegian Centre for Transport Research, Oslo www.toi.no He has worked on national, international European projects as well as advising central and local government and the private sector in Norway on public transport and urban planning policy. He is noted internationally as the principal author of the 2005 Northern European Hightrans best practice guide, Public Transport-planning the networks. Gustavs work in network planning offers clear directions for effective use of public transport resources and for the best use of limited investment funds in public transport. It is directly applicable to large dispersed urban regions like Sydney and Melbourne and to smaller Australian cities and towns.

Date: Tuesday 17 February

Speaker: Michael Easson, Executive Chairman, EG Property Group

Topic: Sydney Transport

Bio: Current independent director ING RE (Australia) & ANZ (2000 Olympic) Stadium; Former founder director for a decade of both Macquarie Infrastructure Group (toll road entity of Macquarie Bank) and Macquarie Goodman, now Goodman (the international industrial property business).

Served as director of State Super, Australias largest pension/superannuation fund; Past director of State Rail Authority of NSW & of Sydney Metro Transport, owners and operators of Sydney Light Rail. Former Adjunct Professor at the Australian Graduate School of Management in Centre for Corporate Change. Earlier Vice President of Australian Council of Trade Unions. Awarded Member of the Order of Australia (AM) in 1997.