Teals smash Albo’s energy cowards

As it turns out, the only problem with the last election result is that Labor got too much of the vote. If we had a Teal minority government today the energy crisis would be all but over:

Independent MPs Zali Steggall, Allegra Spender, Kylea Tink and Zoe Daniel on Thursday ­attacked gas companies and ­accused LNG exporters of paying “very little corporate tax” and reaping “huge profits” at the expense of Australian energy users.

…Despite the gas sector contributing almost $500bn a year to the national economy and the ­crisis being blamed on offline coal-fired power stations, Ms Steggall said Labor should use a super-profits tax to fund household subsidies and make the NEM more efficient.

With coal and gas expected to be included in a draft Energy ­Security Board capacity mechanism to shore up investment in baseload generation, only West Australian teal Kate Chaney supported freeing up supply of gas and “possibly coal” in the short term. Ms Spender, who supports a 50 per cent 2030 emissions ­reduction target, said while gas would play a role over the next 10 years, “the direction has to be in renewables”.

Ms Steggall said increasing the use of gas or coal would “exacerbate and prolong the underlying cause of this energy price crisis while failing to … put in place a solution”. “It would mean rewarding the fossil fuel companies for a problem of their own making, but with greater windfall,” the Warringah MP said.

Ms Daniel said the crisis should “not be used as cover for backsliding to extend the life of coal or gas as energy sources”.

…Ms Chaney, who claimed the blue-ribbon Perth seat of Curtin, said “the current perfect storm ­affecting gas prices may need to be addressed by freeing up supply of gas and possibly coal in the short term”. “This should not be used to justify a long-term ­increase in investment in fossil fuel operations,” she said.

…Tasmanian independent ­Andrew Wilkie called for ­“immediate and strong federal government intervention”, including pulling the gas trigger.

In what universe does the gas sector contribute $500bn to the economy? That’s ludicrous.  The reality is that the oil and gas sector contributes 10% of that number to GDP, around $50bn or 5% of the economy. It is 14th out of the 19 major sectors and contributes less than real estate agents (see green line below):

Moreover, the reality is a lot worse. Half of the growth surge of oil and gas extraction over the past decade was driven by QLD LNG. That component of oil and gas has resulted in a calamitous and near-ceaseless energy shock for the entire east coast economy because the gas export cartel sells cheap Aussie gas in Asia while the price is forced up at home by shortages.

As the Teals say, the fixes are easy:

  • rewrite the ADGSM rules and trigger it with a price target of $7Gj;
  • apply a war levy to coal exporters or gas, or both, benchmarked to pre-Ukraine war prices.

But Albo’s cowards have no ticker and are protecting the war-profiteering energy cartels thereby pushing the entire cost onto every Australian via a utility bill shock, wider inflation shock, and, soon enough, a wealth shock as the RBA crashes house prices pointlessly chasing price rises it can’t affect.

It’s policy and politics so insane that it will end the Albanese Government in one term.

Houses and Holes
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Comments

  1. Just curious – were the Labor team ever asked *before* the election, what they intended to do about this? Did they evade the question? or, were the MSM too lame to even ask?

      • You are not suggesting that MSM probe policy issues the LibLab concordat has deliberately and flagrantly omitted from the election frame? That is the slippery slope to anarchy. What next, questions about the largesse for church schools?

      • Shouldn’t they give a subsidy to the RE agencies then as they are 50 Billion a year industry too.

        • rob barrattMEMBER

          Correct. What did they expect – an economist among them? Some degree of honesty?
          Dream on.

    • No Hun. In order to ask that question the msm had to acknowledge there was an energy crisis. That crisis, the LNP had hidden from the public by moving the date of the wholesale price increase announcement to after the election instead of the usual and original 3 weeks before election.
      Sure the MSM could have easily gone through and researched this, but then they would have had to research their own corrupt mates in LNP who stacked all of abc and govt entities with Murdoch patsies.
      This has meant labor got through the election without needing to make any promises on what they would do for this impending crisis. Had labor flinched, we would have gotten a teal minority govt. Hence, no mandate.
      The root of this is in the lnp corruption and where we find ourselves today.

      • rob barrattMEMBER

        The MSM is only concerned with nice Woke issues, nice anodyne songs where we all sing “We are Australia” together and the daily house fire or drive-by shooting for drama.

  2. TheLambKingMEMBER

    As it turns out, the only problem with the last election result is that Labor got too much of the vote. If we had a Teal minority government today the energy crisis would be all but over

    This.

    I was hoping for a minority government so Labor would have the ‘yeh, I know we promised this, but the Teals/Greens made us do this’ to allow them to do MORE than the small targets they went to the election with (so as to not get smashed by Murdoch/9 + Clive Palmer ads)

  3. They are being pressured into doing something – next session of Parliament is still a few weeks away which would be the earliest they would legislate on it. At least they are making the right sorts of noises for change:

    JOURNALIST: I’d like to ask Minister King a question. With the gas trigger, you are going to review it, but I understand you could change the rules really at any time. If you are going to review it, is it with an eye to being able to bring forward the activation time to sometime this year?

    MADELEINE KING: Nothing’s off the table in regards to the secure gas mechanism so we’ll consider all options. We’ll do it as a matter of urgency so there are options available to the government to make sure there is adequate supply.

    https://www.minister.industry.gov.au/ministers/bowen/transcripts/joint-media-conference-minister-resources-and-northern-australia-madeleine-king

  4. TheLambKingMEMBER

    What also did my head in yesterday was some ‘expert’ on the ABC showing how they could not pipe more gas back down South as the pipes were full. It showed how all the pipes sending gas from the south to the Queensland LNG factories were almost full as well “so they can’t send more gas down south if they wanted to.” OH FFS YOU DUMB PEOPLE – just don’t send the gas north in the first place!!!! The gas from Bass Straight does not need to go up to Queensland then back down to Victoria to be used in Victoria. If Bass Straight gas was reserved for Victorians we would have $3GJ gas!

  5. >> rewrite the ADGSM rules and trigger it with a price target of $7Gj;

    Glad to see MB acknowledging that the ADGSM rules need to be rewritten, not just triggered. Finally.

  6. I’m also sick of ‘the trigger won’t have an effect’ until 6 months after.

    Nonsense. Markets will start adjusting the very second you announce it. What, you think that it will only trigger at 12:01am on the day of actual execution? Nothing in modern markets works like that – markets plan head and act now; prices will start adjusting in the short term just like they do for anything else in the market.

  7. I cannot understand the Labor government’s position here. This is election losing stuff, wtf are they afraid of? Isn’t this the best opportunity to smash the gas cartel with the full support of the populace? Are they corrupt? Are they stupid?

    I’m so baffled!

    • The fed broke it. Now, they own it.

      This is how our “democracy” works, leftwing, rightwing, same plane 😉

    • bolstroodMEMBER

      The Labor party are as captured by the Fossil Fuel industry as the LNP.
      Is it corrupt ? Possibly .
      Is it immoral ? Certainly.
      Many Labor parliamentry members have ties to the FF ind. directly like Mad King or indirectly like Mark Butler through his partner.
      I really regret the Labor party were able to form a majority government, they are shaping to be Lib lite.

    • This is election losing stuff, wtf are they afraid of?

      Responsibility.

      As with all woke, it’s easy to pontificate… then have someone else commit the funds and effort….

      That’s why you find 4,000 refugees live in Fairfield, and 10 live in Balmain.

    • bolstroodMEMBER

      I reckon there is more going on in the energy crisis than meets the eye.
      One third of Coal fired electricity production is off line, Gas is thru the roof, and now the Snowy Hydro 2 is 2 years behind schedule and will not be on line until 2028 , if then, and well after the next election.
      Labor look to have walked into an energy ambush from which the only escape is more Coal and Gas
      https://reneweconomy.com.au/bowen-slams-morrison-and-taylor-for-hiding-extent-of-snowy-2-0-delays/

      • BradleyMEMBER

        I agree. It was like the PTB lined Labor up for the old one, two. Again. Cunning and vicious like rats they are.

    • Are they corrupt? Are they stupid?

      They are a vote-winning machine. They are extremely successful at that, and have no other skills.

      They have been trained all their lives to do as little for the people as necessary to get just enough votes to gain power and then do as much for themselves as they can get away with.

      Circa 2022, that means calling yourself either Liberal or Labor and telling a few lies. These people have no other skills or knowledge. Like a crocodile in a zoo that gets chicken, all they know is how to open their mouth and take a bite.

      The fault lies in the majority of voters who reward this behaviour year in and year out with their vote.

    • Politicians are hollow shells of things that are owned and manipulated by more powerful people. When Albo and his sad minions speak, they’re just mouthing the words put there by whoever owns them. If Albo’s owners wanted him to appear naked on the 7.30 report tomorrow being rogered by a goat, that is what would happen, and all the ABC staff present would nod approvingly.

      At the moment, Albo’s owner is happy with how things are, so that is how they’ll stay, regardless of how stupid and politically suicidal it seems.

  8. Arthur Schopenhauer

    Be Independent. Vote Independent

    If you are in a marginal Labor seat, it’s time to start organising to select a strong Teal candidate.

  9. Another thing to make noise on is what reservation mechanism/ systems / rates do other major exporters have in place. Are we alone in what we do, I am guessing so ?

  10. MB readerMEMBER

    All the people commenting here should also be writing to their Labor MPs and/or senators.

  11. Fishing72MEMBER

    We are in the middle of the narrative. Soon will be announced the game changing “compromise” of allowing the cartel to overturn the ban on fracking in order to save the day. A portion of the new destructive inland gas resources will be reserved for Australians and the machiavellian overthrow of the fracking ban will be sold as a heroic and philanthropic act by the cartel.

    The job ahead of the MSM and ALP is to convince the public that the only option for gas at a reasonable price is in allowing the cartel to rape our nation’s interior and slice us off a morsel as an offering to buy our initial acquiescence.

    ALP is bought and they know from Gough’s experience that any attempt to take on our masters and move past our role as a vassal state will elect the same response as the Central American countries taking on United Fruit back in the day.

    https://www.smh.com.au/politics/federal/how-to-keep-us-cooking-with-gas-albanese-s-energy-dilemma-20220609-p5asjc.html

      • Strange EconomicsMEMBER

        They were already arguinjg that on the Radio yesterday the problem is not fracking enough areas in NSW –
        Ian Macfarlane, ex National Party
        And as Macrobusiness pointed out before, the new inland gas fracking in NSW is twice the gas price.

    • And bring their voting habits with them?

      Maybe it’s case of they’re part of the problem, rather than WA being part of the solution.

    • MB readerMEMBER

      If there’s a gas reserve policy in WA, I can’t see why it can’t be done for the eastern states.

      • Alan Carpenter’s government was the best government I have lived under.

        His government lost the next election after bringing in this policy to a Cottesloe snob and the Bra-Strappin’, Chair-Sniffin’ member of Vasse.

        • The chair sniffin ex member for Vasse was my MP. Is/was actually a super intelligent dude who is now completely broken. Served his masters who ditched him when the going got tough. Lots of lessons to be learned by all from the “Troy the boy” story.

          • I’ve never heard anything other than “The bloke is really bright” from all sources.

            He obviously had some vices he couldn’t manage.

            I once stayed at his ex in-laws b&b outside of Busso. They have a real interesting story, of an Australian bristling with opportunity… “the first ever Chinese restaurant in Bunbury pays this much !!” .. They were so proud of him… and thrown away all for a retreaded tyre like Adele.. sheesh.

            To be fair, his dirty laundry got aired far and wide, and there was plenty to air. His masters didn’t really have a choice but to ditch him.

          • The self-destruction of Troy the Boy was pretty sad. I have some sympathy for him.

            I have none, however, for Colin Barnett. An arrogant little man who helped make WA hopelessly dependent on China, spectacularly mismanaged a once-in-a-generation mining boom and left the state in a fiscal mess. He also trashed his own party on the way out and helped turn WA into a one party state. Well done, Colin.

  12. You can legitimately critique the current structure of the gas market, but this statement is just so dumb only an economist could believe it: “It is 14th out of the 19 major sectors and contributes less than real estate agents”
    Pretty sure without RE agents people could happily trade houses with their lawyer doing the conveyancing.
    Good on the gas industry for minimising their tax, it’s not illegal and the politicians will piss it against the wall anyway and then be back at the well wanting more.