Speaking on the eve of The Australian Pipeline Industry Association's (APIA) annual convention in Hobart, APIA President, Jim McDonald, said there were some very important signals across 2002 that gave rise to a more promising outlook for growth in the nation's gas transmission industry.

"However, this flicker of positive light may soon be extinguished unless governments take more urgent action to encourage much-needed investment in pipeline infrastructure development," he said.

"This will rely on a simple matter of political leadership - and not allowing the self interest of economic regulators to dominate the agenda."

Mr McDonald said that for much of 2002, the pipeline industry remained under siege in its goal of development towards a truly national gas market and creation of a genuinely competitive producer sector.

"Our investors remain disenchanted and ever more wary, and little real progress is made towards the expansion of Australia's gas infrastructure towards a national grid," he said.

Mr McDonald welcomed the Commonwealth Government's recognition and action on the pipeline industry's concerns regarding the mooted 50 year tax depreciation life for transmission pipeline assets.

"This decision was the single most important positive signal for the gas transmission industry during 2002," he said.

"Such strong leadership and long term policy view now needs to be directed by Commonwealth and State leaders on the vexed issue of economic regulatory settings for existing and new transmission pipeline infrastructure."

Mr McDonald also welcomed the recent, long-awaited Productivity Commission report on the National Access Regime and the Government's Interim Response.

He said a number of new, more positive political objectives were flagged in the government's response to the report, including:

· recognition that the national access regime is not intended to replace commercial negotiations and that incentives for commercial negotiation must be strengthened,

· recognition that the legitimate interests of essential infrastructure owners must be supported and that efficient investment in new infrastructure must be encouraged, and

"We expect these key political messages will be strengthened in the forthcoming release of the Parer Review of Energy Policy and through the Independent Review of the National Gas Access Regime," he said.

Key speakers at today's opening session of the 2002 APIA conference include the Federal Minister for Industry, Tourism and Resources, the Hon Ian Macfarlane; the Tasmanian Minister for Infrastructure, Energy and Resources, the Hon Paul Lennon and APIA President, Jim McDonald, who also is the chief executive of the Australian Pipeline Trust.