Matt Canavan should be sacked in the national interest

Meet your skylarking Resources Minister writing in The Australian:

A couple of months ago Bob Brown thought it was a fantastic idea to invade Queensland with an army of hypocritical and condescending activists.

It is the one thing Bob and I agree on: I thought it a fantastic idea, too.

…the truckies exploded. “Look at the hypocrites. They’re using petrol”, and “They’re driving in cars made of steel, which comes from coal!” And much more that can’t be printed.

And on it goes. It what universe is this kind ‘put the boot into ’em’ useful leadership? I’ll tell you which.

Resources Minister Canavan is part of a Coalition plan to use energy as a form of domestic economic terrorism. The energy wars are easily resolved. That’s because they are made up; a pure political fiction to win over the losers of energy transformation as a voting block. It is working spectacularly.

But at what cost? Forget climate change and the end of the world. I mean closer to home and the hip pocket. What are the economic costs of the LNP’s energy terrorism plan?

Leith has already described how Adani is a giant white elephant that will add nothing to the east coast economy so it’s a waste of resources. But there is a vastly larger cost that is hidden because it is not in coal, it is in gas.

The LNP’s plan for energy terrorism includes blaming rising electricity price upon renewable energy. This helps support coal as a political option but, crucially, it does one more thing. It hides the real cause of power price spikes on the east coast which is not renewable power at all, but gas-fired power.

Because gas-fired power is the marginal price setter in the National Electricity Market (NEM), it is singularly responsible for all power prices rises since 2014 when LNG exports began, leaving the local market short, and skyrocketed the price of gas to as high as $20Gj from $4Gj.

Thankfully Malcolm Turnbull at least limited the cost of the LNP’s energy terrorism plan in 2017 when he installed the Australian Domestic Gas Security Mechanism (ADGSM), through which the LNG export cartel agreed to benchmark local prices to the Asian gas price minus the cost of exporting, called the export net-back price.

That should be working great. The Asian gas price is today at $Gj6. The agreed net back price for the east coast under the Australian Domestic Gas Security Mechanism (ADGSM) is back to around $4Gj. Utility bills ought to be collapsing.

But they aren’t because the local price of gas yesterday was still rising instead at $10.20Gj. In short, the gas cartel is breaking the law and keeping prices much higher than it agreed to do under the ADGSM meaning your gas bill is more than double what it should be under existing law. Your power bill is also 30% higher than it should be under existing law.

So, why is the ADGSM not being enforced? Who controls and enforces that law? Who manages the ADGSM on behalf of the Australian people? Who is it that determines your power and gas bill?

The ADGSM is under the purview of the Resources portfolio controlled by…wait for it…Resources Minister Matt Canavan.

That’s right, just as Resources Minister Matt Canavan is busy preening himself in the media to promote coal in QLD as the solution to the high power prices, he is also refusing to enforce the ADGSM with the direct result being sky high power prices.

That is the real cost of LNP energy terrorism. It is a $15-20bn theft from the east coast economy in broad daylight by the gas cartel. From every single business and household.

So, sure, QLD truckies are right to point out the hypocrisy of the anti-Adani protesters. They’re probably all for mass immigration as well, which is pretty bloody contradictory.

But, honestly, if I explained over few beers to these blokes the depths of Matt Canavan’s hypocrisy, which steals around $1k out of each and every pocket, I’m pretty sure they’d usher him very politely out to the woodshed.

Which is exactly where the nation should send him.

Comments

  1. “But, honestly, if I explained over few beers to these blokes the depths of their self-appointed champion’s hypocrisy, which steals around $1k out of each and every pocket, I’m pretty sure they’d usher Matt Canavan very politely out to the woodshed.”

    No, I’m pretty sure they’d consider they were doing you, a southerner, a favour by drinking the beers you bought them and they’d then go and buy Matt Canavan a beer and have a chuckle about it.

    Having Paul Keating tell them that Peter Dutton is mean is like having Gus Gould tell them that the Qld SOO team is undermanned is like having David from Melbourne tell them Matt Canavan has his hand in their wallets. The common reaction will be what do the southerners know. Dutto’s a goose but he won, the Qld SOO notched up another famous victory last night and they’re all expecting to get jobs because of the mines.

    As I’ve noted before I know of Qlders that changed their vote to the conservatives such was their indignation at Bob Brown and a bunch of southerners coming up to their towns and telling what they should think and how they should vote. (Bob from Tasmania does not have the same pull to it as Kevin from Qld did).

  2. That’s right, just as Resources Minister Matt Canavan is busy preening himself in the media to promote coal in QLD as the solution to the high power prices, he is also refusing to enforce the ADGSM with the direct result being sky high power prices.

    He can’t cut gas prices because that will cut electricity prices and he and his fellow loons will be shown to be liars by solely blaming renewables for high electricity prices.

    • This is also their justification for ramming poison fracking down our throats, and building infrastructure to reimport our own previously exported gas.

  3. So, if millions of consumers are being illegally gouged by the gas and power companies by billions of dollars every year, how come Maurice & Blackburn or likes haven’t sprung to action? Something doesn’t add up.

      • Yeah, well, but H&H says that “they are breaking the law” .
        So, yet another hyperbole, I suppose.

      • NoodlesRomanovMEMBER

        If it had been declared a shortfall year, this would be the case. Doesn’t mean the system isn’t crooked, but there doesn’t seem to be illegality.

        Working out the net back pricing based current spot isa bit misleading – find me somebody loading a spot cargo for that money.

      • Don’t split hairs. The agreement is net back. The Asian spot price is $6Gj. I didn’t make it up.

        Canavan could pull the lever any time he liked. In fact, after pressure from MB is looking at doing so.

        You two bureaucrats or what?

  4. First you say you want him sacked. ‘Sacked’ as a verb can mean to be put into a sack. In Canavan’s case one needs to add the step used with puppies and kittens in a sack – weighted and tossed into a river.

    And then you say woodshed. Are you thinking a Fargo woodchipper?

    So is it drowning? Or chipping? Either one, he deserves it. And this is the guy with the ‘my mother filled in the form’ bullsh1t excuse for Section 44.

    How is it we let scum like this get to be in charge?

  5. Can Victoria stop Bass Strait gas from going to Queensland?

    I know Scummo should reserve gas, but given that he is not reserving it, can Victoria now cut the amount of gas going to Queensland?

    • Torchwood1979

      Labor Premier from the Latte State vs cowed Labor Premier from the Bogan State. Scummo would love that distraction like nothing else and it would give him even less incentive to enact reservation.

      • But Scummo is not doing gas reservation. No extra incentive needed. Not only does he have the Murdoch media on his side, he also has Giles Parkinson and the fake Guardian on his side!

        One reason natural gas is called “clean” is because it emits 50 percent less carbon dioxide than coal when you burn it.

        a “bridge” fuel until zero-carbon-producing renewables can take over.

        https://opinionator.blogs.nytimes.com/2013/09/24/is-natural-gas-clean/

        Giles is paid to demonise gas even though gas is better than coal and an absolutely necessary bridge fuel that allow us to get to 50% renewable electricity.

  6. Gas gouge? No. Canavan is implicitly saying to consumers in NSW & VIC this winter, that they should exercise their right to demonstrate the elasticity of gas demand, by switching to the alternative, ie more woolen jumpers.

  7. Forrest GumpMEMBER

    Canavan’s bother is also up to his neck in coal mining. Matt went guarantor for his brother’s bank loan to finance the project.