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Tue 29 Jul

Australia Institute Live: Climate woes continue for both major parties. As it happened.

Amy Remeikis – Chief Political Analyst

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06.37 AEST

Remember when they promised low gas prices?

 

Mark Ogge
Principal Advisor

New Australia Institute research shows gas exports have caused wholesale gas prices for Australians to more than triple and electricity prices to double since exports began in 2015.

When they were trying to get their gas export terminals approved, the gas industry promised Australians abundant gas, low gas prices and endless economic benefits.

None of it was true.

Instead, we’ve had rolling gas shortages, skyrocketing gas and electricity prices, manufacturing closures and job losses, and a massive transfer of wealth from ordinary Australian households and businesses to foreign owned gas companies.

Successive federal governments have allowed the gas industry to export gas to the global sport market, instead of supplying Australians and let them price gouge for our own gas.

As of the latest published Australian Tax Office corporate tax transparency data, none of the big gas export projects exporting Australian gas form QLD have ever paid company tax despite making well over $100 bullion oncome exporting our gas.

Australians, you are being ripped off by foreign owned gas companies, aided and abetted by your governments.

There is a simple fix for this mess that the Australian Government can do any time: stop gas companies exporting our gas to the global spot market, and require them to supply Australians instead.

It’s that simple. It can be done tomorrow. It doesn’t need yet another inquiry or review, it doesn’t need another thousand pages of ACCC reports, and it definitely doesn’t need another consultation with the gas industry who seem to have completely captured our governments.

Approving new gas projects  will do nothing. Weve seen gas production triple over the last decade while gas demand in Australia has fallen, and we still have shortages and high prices, because additional supply just means additional exports. It’s a zero sum game for Australians.

The Australian government just needs the government to stop fawning to foreign owned gas corporations, and stick up for Australians.

 

06.37 AEST

Gas exports have tripled Australian gas prices and doubled electricity prices

Glenn Connley

New Australia Institute research reveals that gas exports have led to the tripling of wholesale east coast gas prices and doubling of electricity prices, since exports began in 2015.

The Australian and Queensland governments’ decisions in 2010 to allow large-scale exporting of Australian gas from Queensland exposed Australians to high global prices, ending decades of abundant low-cost gas for Australians, leading to higher energy bills, gas shortages and manufacturing closures.

Gas price increases due to excessive exports have also caused electricity prices to rise because gas power stations often set electricity prices.

“When you get your next energy bill, blame the gas industry and your governments for opening the gas export floodgates despite being warned it would drive up energy bills for Australians,” said Mark Ogge, Principal Adviser at The Australia Institute.

“Gas exports have meant Australian households and businesses have paid billions of dollars more for energy over the last decade, all of which went to the profits of a handful of predominantly foreign-owned gas corporations.

“The gas industry’s deliberate plan to increase domestic gas prices for Australians, by exposing us to global gas prices, has been a massive transfer of wealth from Australian households and businesses to Big Gas.

“Gas exports have led to manufacturing closures in Australia. Gas exporters manufacture nothing except gas shortages and higher energy bills for Australians.

“The kindest interpretation of the Australian and Queensland governments’ role in allowing gas export corporations to brutally price-gouge Australians over the last decade is that they are weak and gullible. Arguably, they are complicit.

“It is extraordinary that successive Australian governments have allowed LNG producers to export surplus uncontracted gas to the global spot market while Australian manufacturers struggle to secure affordable gas at reasonable prices.

“Allowing new gas projects doesn’t solve the problem. We have tripled gas production in a decade, and we still have rolling shortages and high prices. New gas projects just mean more gas is exported and result in net-zero additional gas for Australians, unless we cut exports.

“The only way to fix this mess and reduce Australian energy bills is to cut exports and divert the gas to Australians.”

 “Gas exports have exposed Australian manufacturers to high global gas prices and are also driving up electricity costs, hitting manufacturers with a double blow, making it almost impossible to compete with subsidised imports,” said Geoff Crittenden, CEO of Weld Australia.

“It beggars belief that for the last decade, Australian governments have allowed LNG producers to export surplus uncontracted gas to the global spot market while Australian manufacturers are unable to secure gas at reasonable terms and prices. It needs to be fixed now.”

Mark Ogge will be at parliament house this morning for a press conference, along with Monique Ryan Senator David Pocock and Geoff Crittenden, CEO of Weld Australia

We will bring you

06.37 AEST

Good morning

Hello and welcome to another day of the 48th parliament.

It’s Tuesday, which means it is party room meeting day, and that means another awkward get together for the Coalition.

Pauline Hanson has seen the first opportunity she has had in years to find some political relevancy and after losing out on the ‘worst position on the Voice’ competition, she is NOT letting this net zero mess the Coalition has gotten itself into pass.

Hanson tried to put through her own motion in the senate to get ahead of Barnaby Joyce’s private members’ bill (which is also not going anywhere) and despite Sussan Ley asking her party room to abstain from the vote, Jane Hume and Andrew McLachlan (SA Liberal senator) voted against Hanson.

If you look up the Dynamic Red, you may see Alex Antic and Matt Canavan there both voting with Hanson. Earlier in the day, Canavan told the Seven network he was there to make laws, not participate in ‘stunts’:

We’re here to make laws, not make statements or do stunts. A motion in the Senate today is nothing but a stunt. It’s not going to do anything.

To be fair, Canavan’s vote was to bring the motion on for debate (it failed so it never got there) not the actual motion itself, but still.

Hanson is using all of this to try and once again position herself as the ‘real’ voice of the people the Coalition have been trying to reach with their shift to the right. And while it has worked for One Nation in terms of getting them a couple more senate seats (at least for now, who knows how long that lasts with One Nation) it has been at the Coalition’s expense. And yet, the Coalition continues to try and get into bed with One Nation.

So that’s fun.

On the other hand, UN climate change executive secretary Simon Stiell is in Australia and will meet with energy minister Chris Bowen today, where he will be pushing for the Albanese government to do more on climate. You know, more than the bare minimum?

In a speech in Sydney yesterday Stiell told the crowd:

Don’t settle for what’s easy. Bog standard is beneath you. Go for what’s smart by going big. Go for what will build lasting wealth and national security. Go for what will change the game and stand the test of time.”

This is ahead of Australia finalising its 2035 climate targets.

So as the Coalition continues to be a policy trash fire, Labor continues to look better in comparison.

So that’s fun.

We’ll cover all of that and more as the day unfolds. Mike Bowers is away on assignment, so it is just Amy Remeikis guiding you through today. It is another three-coffee morning at least, with probably what chocolate I can ferret out of the cupboard where I hid it from myself.

Ready? Let’s do this.

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