The Greens’ and Labor’s net zero policies are a large part of why we have high inflation. By replacing low cost coal with expensive industrial wind and solar, power prices rise, which then drives up prices across the board.
The Motion from Greens’ Senator McKim to introduce price controls to combat inflation is an example of “feel good” politics. Price controls often lead to companies withdrawing from the supply chain, leading to inevitable shortages and black markets.
In what was once the “lucky country,” this would be a tragedy!
Transcript
Inflation is out of control across the Australian economy. It’s disgraceful though for the Greens to leverage this human disaster to advance their green communist ideology. Advocating price controls is the economics of wishful thinking—a victory of feelings over facts, common sense, historical experience and basic economics. Price controls don’t work. They have never worked and will never work, and they make things worse.
The price of an item is not some magical creature with a life of its own that government can control. Price is an outcome of other factors—material costs, input costs and retailer margins, to name a few. In recent times, the Greens have talked about the lack of competition in retailing, especially in food retailing, but they have missed the point. The answer to poor competition is not price controls; it’s more competition. It is Harris Farm Markets opening new concept stores that rival Coles and Woolworths. It’s the Reject Shop, which increasingly undercuts Coles and Woolies by significant amounts. It’s your local butcher or produce store, which now sell products cheaper than Coles and Woolies.
To a degree, the Greens are using misdirection. They’re asking Australians to look over here at profiteering instead of looking at the root cause of inflation, which is the increasing cost of business inputs, starting with the Greens’ own net zero energy policies. Net zero fairytale power is pushing up power prices, and, if power goes up, everything goes up. Farmers need power to run their coolrooms, they need diesel to run their farm equipment and they need fertiliser, which is made from natural gas. Manufacturers and wholesalers need electricity, gas and diesel for every aspect of their operations, yet the Greens are over there on my left—on everyone’s left, really—advocating for no new oil or gas projects. Scarcity causes the price to rise. Their own net zero policies are a major cause of inflation. Now the Greens want to fix that with price controls. Controlling the price causes producers, wholesalers and retailers to go broke as their input costs exceed their selling price. To stay in business, these companies will most likely stop selling anything they sell at a loss.
This is exactly what happened in Venezuela and Sri Lanka, where price controls led to food shortages and black markets appearing for food staples. Criminal gangs moved into those black markets. I know Coles and Woolies are bad, but I would take them over criminal gangs. Sri Lanka is especially relevant here. Their food crisis was caused by forcing farmers to abandon the use of hydrocarbon fertilisers and pesticides in the name of net zero—inhuman. Farm productivity fell and prices rose, as farmers tried to make enough money to feed their families. The government intervened with price controls. The result was food shortages, starvation and then rioting that forced the government to back down and, once again, allow modern production techniques to feed the people. Another problem with price controls is that investment moves away from industries that are rendered unprofitable with price controls. Investment in buildings, equipment, software and staff training will fall in price-controlled industries. That is fact that has been proven repeatedly throughout history. This leaves long-term supply deficits that will keep prices higher for longer and hurt everyday citizens.
Unlike the Greens’ policies, One Nation’s policies will solve the cost-of-living and housing crisis without making either problem worse. We will do the opposite of the Greens, which is always a good policy. We will reduce red, green and blue tape. We will reduce new arrivals until the market can fairly provide for those who are already here. In housing, we will prevent homes being owned by those outside of Australia and allow councils to impose penalty rates on vacant homes or on those being used for casual letting which conflicts with the zoning. We will review the federal government housing code, which imposes unnecessary requirements, including making every house wheelchair friendly despite there being no wheelchair users in the house. I understand that that adds about $40,000 to the price of every new house. We will allow Australians to use their super to invest in their own home. We will create a people’s bank to provide mortgages at five per cent interest over 30 years on a five per cent deposit and allow a HECS debt to be rolled into the mortgage so that people can get a home loan. This policy means that an Australian with a good job, even if they have a HECS debt, will be able to afford their own home now and start paying it off.
There are many, many ways to solve the humanitarian disaster that the policies of successive Liberal and Labor governments have created. Price controls and green policies on housing, immigration, the environment, mining and farming are the exact opposite. One Nation wants to free up the people and free up our markets.
