While capping gas prices might sound good in the short term, in the long term it will mean less supply and more expensive power prices when the cap runs out in 12 months.
Instead, we need to remove all of the wind and solar subsidies. Let coal do its job as a reliable baseload power and remove the roadblocks for nuclear energy.
Wind and solar caused this energy crisis, capping gas prices won’t fix it.
Transcript
President, as a servant to the many varied and hard-working people in our QLD community, I’m happy to travel back to Canberra for this session while recognising that due to yet another Labor-Greens-Teal rushed bill many senators cannot.
I’ve submitted a document discovery today to find out exactly how much taxpayers’ money was wasted on this disgusting spectacle.
It would have been wise for the Government to work out what we were returning for prior to recalling the Senate, instead of this chaos to get a bill ready at 9.30pm the night before.
With no Committee oversight, no public scrutiny, no industry scrutiny, a shocking bill rammed through courtesy of the ALP, Greens and Teals Senator Pocock in a single day, in return for quid pro quos next year.
There’s a point where the process this Government uses to get Greens’ and Teal Senator Pocock’s support moves past what is proper into very questionable territory.
Under this bill, the gas industry is being murdered for the financial benefit of rival industries – wind and solar, who are financial supporters of the Greens and Teal Senator Pocock.
It should be clear by now the Albanese Labor Party are not the ones running the country. In the senate, the Greens-Teal Pocock alliance run government.
The Treasury Laws Amendment (Energy Price Relief Plan) Bill 2022, has I’sure been met with popping champagne corks from comrades on the labour left.
Soviet-level powers right there, in the Government’s grasp.
The Government regulation will decree what gas can be sold, to whom it can be sold, for how much it can be sold, who can be refused permission to buy or sell and who can be forced to buy and sell.
The Greens and Teals can’t wait to write those regulations.
A frightening power grab from a desperate government without a clue how to solve the energy crisis it helped create and now worsen.
What industry will be next?
Don’t be fooled with this talk about temporary price caps. This legislation includes a code of conduct with permanent price controls built in.
How much will that ongoing cap be?
This is done through Legislative Instrument, so whatever the cap is, the Commissar, Minister can change it at the stroke of a pen with no appeal mechanism.
Make no mistake if this bill is passed those regulations will escalate in lockstep with the Government’s desperation to control runaway energy inflation caused from escalating power shortages.
Under the Liberal/National government, tens of billions of dollars in direct subsidies have been poured into unreliable wind and solar.
These are incapable of supplying baseload power at an affordable price.
Because the market has not closed hydrocarbon power down as fast as climate bed-wetters want, coal-fired power stations are now being threatened with closure using State Government powers.
This is what is known in finance as political risk.
As the supply of electricity becomes less reliable, afternoon price spikes are becoming common place and everyone’s power bills go up.
There’s a lesson here. Intervening in energy markets to push a political ideology has unintended consequences.
With this legislation Australia is preparing to take our place alongside the Weimar republic, Yugoslavia, Hungary and Venezuela on the list of Governments who ignored history and as a result destroyed their economies.
Venezuela should be a lesson for Australia. Socialist President Maduro spent his first term in 2012 spending every cent the Government earned from oil exports.
Windfall revenue was spent on programs that sounded good on social media, yet proved unsustainable.
Australia is spending every cent we earn from coal, gas and mineral exports just like Venezuela.
When the oil boom ended, Maduro started printing money to keep wasteful government spending going.
Australia over the last three years printed $500bn using electronic journal entries.
Maduro’s print and spend caused prices to double each week, and Maduro responded with price controls.
Australia’s inflation rate is at a 30-year high, nothing like Venezuela’s, and yet we have price controls being introduced with this bill.
Price controls cover up the problem. They never solve it. They make it worse.
To take such an authoritarian measure is an indication that something has this Government and the Premiers spooked – likely the REAL inflation rate that will result from net zero measures?
Time will tell.
The way in which a western country like Venezuela lost control of their economy should be a warning to Australia.
For three years ’print & spend’ measures have been waived through on Liberal, National, Greens and Labor uni-party voices.
Labor did not inherit Scott Morrison’s mess, Labor in the states were part of Scott Morrison’s mess.
Whether our inflation rate from this point forward moves up or down is squarely in the Government’s hands.
A small number of people in the government think they are smarter than the free market.
The same free market has for generations successfully combined hundreds of thousands of workers with hundreds of billions of dollars of capital equipment, in order to successfully manage trillions of dollars in mineral resources for the lowest cost to the consumer.
Now though, our Federal and State Labor Governments, together with the fake Christian, fake Conservative NSW Government of Matt Kean and Dom Perrottet, think this piece of legislation will fix what they broke.
So much hubris combined with so little knowledge of history & economics will be the downfall of our beautiful country.
Veneztralia here we come.
In six months the Albanese government has steered Australia from ‘welfare liberalism’ to socialism.
Next port of call will be ‘statism’ before Labor reach their ultimate destination – communism.
I notice some commentators have been calling for the Government to penalty tax the very high profits being experienced in the minerals industry in recent years.
Instead of making money for taxpayers the Prime Minister decided instead to just destroy those profits, so the shareholders don’t get them, the tax man doesn’t get them, nobody gets them AND the taxpayers are paying $1.5bn a year in subsidies from our debt-financed budget.
$1.5bn over two years is only one percent of the household and small business electricity market, this measure is more public relations than realistic assistance.
One Nation will not be wedged on this payment. Borrowing money from Australians to give back to Australians is a pointless exercise. It literally transfers money from children to their parents.
Responsible parents do not fall for this.
It is a sugar hit that takes attention away from why electricity prices are so high.
Rising electricity prices come from several different aspects of the government’s net zero transition, which, for clarity is a transition away from cheap and reliable, coal baseload power to fairy tale, nature-dependent solar and wind power.
Treasury are projecting electricity prices will rise 36% next year. If passed this bill will reduce that rise 6.5%, and if the States cap the coal price this will save another 6.5%.
In any event electricity is still going up next year. Households can expect a rise of $420 using the Government’s own sums. A rise of 23%. Almost a quarter higher.
When these measures fail, and they will, the rise will be $650.
Today I submitted a motion for a document discovery on the modelling claiming the increase will be 23% not 36%. Including the element of any electricity price rise caused as a result of the Ukraine war.
I look forward to seeing this ‘modelling’
The Treasury Laws Amendment (Energy Price Relief Plan) Bill 2022 deals with gas only. The Albanese Government has dumped the coal price ceiling on to the states to avoid having to pay compensation.
John Howard’s government pulled that same bypass around the Constitution when he took property rights away from farmers to meet UN Kyoto targets without paying a cent in compensation to farmers.
The Albanese Government has joined John Howard’s government in destroying trust in Government, with the result Government must apply more and more coercive measures to govern.
Australia’s gas price has been a problem since the end of 2020. The government’s Australian Energy Regulator confirms the rise in gas prices started a full year before Russia invaded Ukraine.
Treasury and the Government spin doctors blaming Russia for electricity price rises is dishonest. Deceit.
Gas and coal price rises have resulted from the need to back up unreliable wind and solar with gas, combined with colder temperatures and a wind drought across Western Europe.
At the same time the idiots in power in Western Europe closed their coal and nuclear plants.
Gas became the only thing keeping their lights on.
Dishonestly blaming Russia instead of the correct cause – net zero energy deficits, will lead Australia down the same dishonest, inhuman path as Europe.
This bill quite simply fixes the wrong problem.
The war on coal has meant Australia cannot meet the world demand for coal and as a result prices are high, and market demand has switched to gas, those prices are now going up.
Australia has a coal and gas supply problem, not a price problem.
Australia must take the jackboot off the coal and gas industries and allow more production.
Rather than imposing old soviet-style controls on the gas industry under this bill, the Federal Government could have gone with a much simpler and less onerous option.
Western Australia has had a domestic gas reservation since 2006. This requires Gas extractors to reserve 15% of production for Australian domestic use.
This scheme has produced a gas price around $5 a gigajoule, which is production cost plus a fair profit.
Prime Minister Albanese could have used this system on a national level. He chose not to.
Instead, the Prime Minister has gone with old soviet-style legislation that will cost Australians twice as much for gas than a reservation system would have cost.
Why would they do that unless the reason for the legislation is not the price cap and is instead this bill’s industry control powers?
In two or three years’ time the public will be marching on Parliament House to protest electricity bills that are so out of control power that companies will be disconnecting people left right and centre.
Once the serious protests start this Government will reach for the permanent price controls in this bill to force coal and gas extractors to sell to electricity generators at next to nothing, just to save themselves.
There is a showdown coming in this place.
This morning Adam Bandt confirmed that the Greens and Teals are committed to eliminating the gas industry.
Hydrocarbons have lifted Australians and the world out of poverty. The Greens will cast our beautiful nation back to the dark ages.
Gas is essential to firming solar and wind, which means gas and coal are the only things keeping our lights on, our fridges running and industry functioning.
And electric vehicles running.
Without gas and coal the economy will be entirely reliant on nature dependent solar and wind power and battery backups that carry a price tag above $100bn and require renewal every 10 years.
Green energy is no energy. Eliminating gas and coal is insanity.
The Albanese Government’s proposal for a coal price cap will not reduce electricity bills and most likely, will increase them.
Coal plants buy their coal on long term supply contracts. The cost they are paying is not the spot price, it is much less.
The cap of $125 a tonne is above the contract supply price currently being paid at coal power stations, of $80 to $100 a tonne.
It is most likely that suppliers will increase their supply price of coal to $125, knowing that’s the safe limit.
A coal price rise is the most likely outcome from these measures.
A 6.5% fall is technically impossible. For the sake of argument let’s assume the price of coal in 2023 would have been $175 and is now $125 as a result of the cap.
Let’s have a quick look at the effect of that $50 a tonne reduction.
The energy density of coal is 6.7kw/h per kilo, which means one tonne of coal produces 6.7MW/h of electricity.
That’s enough to run 1600 homes in Queensland for a day.
So a $50 saving divided by 1600 homes….at the most simple level of analysis, this measure will save householders .3c a day on their electricity bills.
Not 6.5%, which is $110 a year, $11 a year.
Because coal fuel costs are a tiny portion of the coal-fired electricity price.
The Government’s measures are being sold with a deceitful public relations spin, hiding onerous, soviet-style powers that are the real reason for this legislation.
There’s another serious risk to our energy security this bill ignores – rising interest rates.
Six interest rate rises in 6 months under this Albanese Government.
Rising interest rates increase business overheads right across the energy industry.
Our electricity generation capacity must be replaced to meet ‘net zero by 2050’ – generators, transmission lines and a whopping $100bn bill for big batteries.
Rising interest rates are pushing up the capital cost of this replacement, as well as operating costs across the energy sector.
If this Government cannot get interest rates under control the outcome will be catastrophic for taxpayers and energy consumers.
There is a better way.
Even to the global warming believers One Nation’s plan can deliver cheap, stable baseload power without upsetting your sky god of warming.
All we have to do is
- Stop closing coal power stations;
- Build Collinsville power station and replace Liddell with modern Hele coal;
- Transition Australia’s coal generators to modern HELE coal.
Transitioning to clean coal and ending government handouts for renewable fairy tale solar and wind power will dramatically reduce electricity bills.
It’s time to walk away from this net zero dumpster fire.
I call on the Senate to reject this bill and say no to soviet level powers that will inevitably backfire and cause an economic and social catastrophe.
One Nation has been right to oppose net zero madness for 25 years.
We will continue to be a voice of reason, bringing better solutions to this Parliament.
Solutions that will provide everyday Australians and the businesses they rely on with opportunity and prosperity for all.
We have one flag, we are one community, we are One Nation.
Mal, I saw this yesterday. A very well crafted speech clearly outlining our communist future. I guess we all knew where the Teals would lead us. They are just so blatant now – selling us out for short term gain. Thankyou.
can I just ask a few questions? ……….why are those seats in parliament empty? when you are discussing bills that effect everyone why is not every senator & every member of parliament present?? when you see pictures of other countries parliaments they are full why is ours always empty ??? there is no excuse but illness for them not being there I expect every member to be attending their work place in fact I insist they turn up to work ……parliament only sits for a few weeks a year it is disrespectful to the electorate for them to not be there.
I agree 100% Maree. Their attendance should be mandatory. Since it seems that attendance is voluntary, I guess the non-attendees don’t like being reminded by Malcolm that they are sell-outs.
Yes thanks Maree, I want to know that too.
Labor and the Greens have no idea what it takes to generate reliable and affordable energy, perhaps it’s not their priority.
Malcolm I have emailed a letter I’ve received from BOC Gases outlining their price increases for 2023 of between 11 and 35%, now clearly these increases will include increased costs for electricity and inflation but how is any business going to manage such sharp increases from just one supplier?
Over many years I’ve done plenty of maintenance work in base load power stations in QLD and many are quite old, if governments don’t start spending and upgrading base load generation our electricity grid will become unreliable and regardless of their place in the system, renewables cannot provide a reliable, stable and affordable energy that is provided by all of the interconnection of the base load thermal power stations combined spinning reserve.
Please keep up the fight for common sense Malcolm, appreciate all your efforts
thank heaven we have this Senator, we need more like him well guess those power poles one day may have a use ,remember what happen to the chap that ran Italy during ww2 .
The greens teals ,and the idiot Pokock should be tired for treason ALONG WITH THE LEADERS AND MANY OF THE LABOR party
Every time the Senator asks questions the talking heads can not answer ,who runs Australia the talking heads or Polies we are never asked ,we put them there and time we removed so many of them before it is to late but keep the likes of the Senator and those of his ILK
Hello Malcolm. I retired last year and for over 40 years I was an appliance technician. For the last 20 of those years I worked on commercial / industrial laundry equipment . This equipment was placed in laundromats / dry cleaning shops / industrial laundries, hospitals, hotels / motels, prisons, brothels and more. Now the Greenies and Labor have not informed these legitimate businesses about their plan to get rid of the use of gas and all of these businesses have industrial gas fired clothes dryers and hot water / steam boilers. If gas is outlawed there will be an unbelievable amount of mining required to dig for copper which will mean clearing native bush land , diesel consumed by excavation machinery, pollution from processing the minerals needed to process the copper for the well under equipped electric grid system that will not be able to cope. They have not thought it through at all. What about all of the restaurants and industries that cook and preserve food that currently use gas ? If an education system was to be put in place advising the general public about the enormous challenge that lies ahead , things might just change when people wake up. So many other industries rely on gas as well you know. This will devastate all sorts of industries. Another thing to note is that I always found it highly suspicious when the states divested themselves of our assets and utilities to be sold to foreign interests. Governments of both major parties did this many years ago but it seems that China was behind it all.
I love your work and your passion. Please continue trying to save us from tyranny and communism.
Kindest of regards.
Stephen Baxter
I agree with all the comments above.
Senator,
I noted the date on the Hearing with the CSIRO employees is March 2021. Did you get any further responses or action taken by the CSIRO over paid employees?
The response re using Covid info was pathetic, and shows the indoctrination of the CSIRO culture. I did read their Annual Report a few months back and was appalled at the areas of “Science” and non Science that the CSIRO is involved in these days.
And we all need to remember that Science no longer has a high reputation, throughout The World, and judging by hte lack of clear and responsible answers by these two CSIRO employees, that this is also the case re CSIRO, which did have a sterling record long ago now.
When we see The Cochrane Solution group having a highly qualified Scientist Founder of the group removed by Billy Gates and the CEO role being with a Gates mob Journalist, and other Board Members who resigned in disgust and those positions being filled by stooges, one automatically questions any organisations now,
Senator Roberts questioning was researched and valid, and good to see another Senator – Canavan supporting Senator Roberts in this time that absolute scrutiny and intelligence is vital to this World wide destruction of all areas of peoples lives.
I do hope that the Australian ParliamentS are filled with more Politicians of he calibre of Senator Roberts- THANK YOU Sir, for you tireless efforts to right the good ship Australia.
Well said, totally agree with your comments.
Hi Malcolm, Thank you again for all your hard work. Two short years ago the United States was energy independent. This meant that demand for foreign energy was a lot less than it is now. Low energy costs, low inflation, higher economic growth. Are you in a position to find out how much the CCP is paying for Australian natural gas? Should not Australian natural gas wholesalers get a similar deal? Also, quite a long time ago I came across an article suggesting that large oil reserves were discovered on mainland Australia but were capped and mothballed. By way of a quick summary, I think our energy costs are being cynically being manipulated upwards to push certain globalist narratives. All the best to you, your family, and your team for Christmas and the New Year. Peter.
The Victorian Government has a Sustainability website where it provides a comprehensive guide to consumers as to the costs of running various electric and gas based water heating technologies. Unfortunately for their Federal Labor counterparts, Victoria seems not to be playing ball since the gas based scenarios are not only considerably cheaper to run but also produce significantly lower greenhouse emissions (if greenhouse emissions are your thing – they aren’t my thing since CO2 is plant food). I guess Victoria of all places needs to be placed into the bad boy corner along with that recalcitrant SA Premier.
Now the price penalty of electricity would in theory be fine if we had a grid tomorrow that compromised of 100% renewables which delivered 100% reliable energy 100% of the time and if the price of electricity really had gone down by $275 versus last year. But of course nothing could possibly be further from the truth. Forcing people out of their gas appliances and into electric appliances and heating infrastructure is just another way to kick citizens in the guts and make them even poorer yet again.
I’ll keep it short & sweet: I’m in full agreement with Senator Roberts’ statement that the government needs to remove subsidies on wind & solar power & revert to the use of coal & gas as reliable sources of baseload power for industry, while at the same time removing roadblocks to the use of nuclear energy.