Posts tagged ‘environment’
THE thing politics has over policy is that it is a sport. When The Age tried to call this out in its editorial asking for the head of Julia Gillard, it was roundly condemned for not setting the agenda of policy themselves instead of focussing on palace politics. But would The Age have sold as many copies if it focussed too much on the what when the who is infinitely more interesting?
We all profess to be tired of the Gillard-Rudd business but you can be sure the hashtag spill would go ballistic if and when the long drawn-out battle actually ever takes place. Everyone would want to know the result. The Age know the personal drama is infinitely more interesting than the 55 or so pieces of legislation yet to pass in the final week of the 43rd parliament of Australia.
But here where I don’t have to pander to profit or personal drama, I can take the time to look at all 55 remaining bills, in alphabetical order. They cover a full gamut of legislative issues such as environment, the world economy, employment, education, tax reform and agriculture.
You may or may not find these interesting reading and they are mostly ignored by the media.
But this is what parliament is for: to change and enact law. Each of the 55 bills is important to someone or something; a truth the independent members of parliament (who raised most of them) know all too well. I’m hoping you’ll feel a little more informed if you read them; I did for writing them down.
Enables Australia to become a member of the African Development Bank Group by authorising the payments required to subscribe to membership shares in the African Development Bank and meet membership and ongoing subscriptions to the African Development Fund.
According to Bernie Ripoll (Lab) the bank promotes sustainable economic growth to reduce poverty in Africa. The bank currently has 78 member countries, comprising 54 African and 24 non-African countries. In 2011, the Independent Review of Aid Effectiveness recommended that Australia join the group as it would represent value for money, and be a high-level indication of Australia’s commitment to development in Africa.
The far-reaching bill would require private and public projects of half a billion dollars or more to develop an Australian Industry Participation plan. A new quango, the Australian Industry Participation Authority would be set up to administer and monitor compliance of the plan reporting back to parliament. In the first debate, Liberal backbencher Craig Kelly saw an obvious problem: The measure would see government officers embedded in business, “just like it used to be in the Soviet Union”.
The planning regime itself will cost $1 billion dollars to implement, so I wonder if it will be subject to an Australian Industry Participation plan if it passes.
This Katterbill wants to limit foreign investment in Australian agribusiness and agricultural land. It would do this requiring the Foreign Investment Review Board to take “the national interest” (a contested concept if ever there was one) into account in foreign investment and also prevent non-Australians from owing half or more of an agribusiness or land more than four hectares.
Another Katterbill to amend air acts to ensure Australian international and domestic air services are at least 51% Australian owned and operated, do at least 80% maintenance in Australia and use only Aussie crews.
Greens bill to amend the 1992 broadcasting act to prohibit ads on odds, restrict betting ads to after 9pm, and prohibit “non-ad ads” and freeze betting ads before sports broadcasts. Given the 1992 act is ludicrously pre-Internet, this seems papering over some enormous cracks.
This one from the Greens wants to amend the Competition and Consumer Act 2010 to: specify country of origin on food with labelling based on the weight of the ingredients.
7. Competition and Consumer Amendment (Strengthening Rules About Misuse of Market Power) Bill 2013 is an adjunct of 6 to strengthen the act to protect people in complicated supply chains eg where a $1 litre of milk to the customer is a net cost to the producer.
Amends the Customs Act 1901 to prohibit the export of coal mined in the water catchment valleys and district of Wyong (NSW) and enable the minister to prohibit the export of coal mined “in other areas”. This is Craig Thomson’s attempt to shut down a possible Wallarah Two underground mine despite no politician ruling it in at the moment. “People in electorates trust the laws, they don’t necessarily trust the politicians,” Thomson said. “And that’s why I tabled a bill today that looks to restrict the export licences of miners in the Wyong Shire in particular, but more broadly any other area that the minister by legislative means, deems to be appropriate.”
Katter’s call to register dairy regional representative bodies and Fair Work Australia to determine a modern award for dairy farmers with dairy farmers and processors to establish enterprise agreements and collective negotiations.
This one from Peter Garrett. Establishes the Early Years Quality Fund Special Account to provide $300m over two years to long day care services to pay employees wages, costs and expenses and is an early pay off for Gonski in an attempt to make kindy-teaching a better paying job.
Townsville LNP’s George Christiansen’s “Making Marine Parks Accountable” bill amends the Environment Protection and Biodiversity Conservation Act 1999 to allow Government to set an area of sea, or land and sea, as a Commonwealth reserve with the help of an independent scientific reference panel and a stakeholder advisory group. Christiansen wants to protect his fishing constituents access to marine parks.
Amends the Environment Protection and Biodiversity Conservation Act 1999 to place a two year moratorium on aquifer drilling connected with coal seam gas extraction; and impose penalties for any contravention. Katter wants to ban CSG mining for 24 months.
Katterbill to index military retirement benefits the same way as Australian age and service pensions, currently based on a higher-end consumer price index.
This Greens bill amends the Fair Work Act 2009 to expand enterprise agreements, settle disputes, and make provisions on industrial action. The object is to consider items of job security, full employment and work/life balance when the full bench makes a workplace determination.
Katterbill to remove the restriction of Fair Work Australia dealing with disputes by arbitration, mediation or conciliation, or by making a recommendation or expressing an opinion.
Katterbill to stop the foreign takeover of Cubbie cotton station near Dirranbandi, Qld.
Ag Minister Joe Ludwig’s bill to create a new Grape and Wine Authority by merging Grape and Wine Research and Development Corporation (GWRDC) and the Wine Australia Corporation. The merger would align strategy and achieve efficiency gains.
Social inclusion minister Mark Butler’s bill introduced with the Homelessness Bill 2013, to repeal the Supported Accommodation Assistance Act 1994 and makes an amendment to the Commonwealth Electoral Act 1918. The bill ensures homeless people can still vote in elections.
Butler’s main bill which provides for the recognition of homeless people and those at risk of homelessness. There is a recognition of homelessness and an aspiration everyone should have a home. The aim is to remove barriers in social inclusion and improve service delivery.
This Katterbill imposes penalties on those who don’t label imported food properly.
Bill Shorten’s bill – Combined with the Superannuation Legislation Amendment, the bill amends the Income Tax Rates Act 1986 to impose a 45 per cent tax on superannuation benefits that are illegally released early. See also 50.
Greens bill to amend the Infrastructure Australia Act 2008 to prioritise Commonwealth rail funding over roads, with the exception of road projects designed to fix an urgent road safety issue or on which construction has already begun.
Greg Combet’s bill to tighten IP laws on crown use, implement a TRIPS protocol to supply developing countries with generic versions of patented medicines, protect plant breeder IP and bring in joint patent regime for Australia and New Zealand. Despite its international importance, this huge bill affecting several acts of parliament has got zero attention in local media as far as I can tell. It features in International Business Times which said the law would enable Australian companies to respond to future health crises in less developed nations.
Bob Carr’s bill to amend the International Organisations (Privileges and Immunities) Act 1963 to give privileges and immunities to the International Committee for the Red Cross and the International Criminal Court. The first part is required because Australia has signed an MOU with the Red Cross making it a legal entity while the second provides support for victims in ICC trials and removed a roadblock to Australia’s accession to the ICC Agreement on Privileges and Immunities.
Andrew Wilkie’s bill calls for the end to live animal export by 2017 and in the interim ensure “satisfactory treatment” before slaughter.
Minister for State Gary Gray’s bill provides for the protection of Malabar Headland following divestment to New South Wales. Malabar Headland is in south-east Sydney and was declared a 70 hectare national park in 2010. It was transferred to NSW in 2012 after remediation of the site. The bill ensures Commonwealth oversight of the site.
Andrew Wilkie’s bill to amend marine regulations to ensure Australian standards are followed despite the rundown of Australia’s merchant fleet.
Greens bill to allow gay marriage. Likely to fail due to Liberal block of conscience vote. We may have to wait a few years yet for parliament to catch up with public opinion on this.
The Coalition’s Scott Morrisons’ bill to restore two new temporary protection visa classes lasting three years. One is the offshore entry TPV for refugees entering at an “excised offshore place” (eg Christmas Island) but who meet Australian protection obligations, the other a “secondary movement” offshore visa which is the same as above except the person is a non-citizen who transited in a country other than Australia where the person could have sought protection.
Immigration Minister Brendan O’Connor’s variation on the TPV bill and one of the few bills gathering media attention due to the furore over 457 visas which are a subclass of TPVs. It require sponsors in the TPV program to do Australian labour marketing testing with Fair Work inspectors oversight before employing someone on these visas.
Nicola Roxon’s bill (from her time as A-G) to establish the Military Court of Australia as part of the Federal Court to overcome the High Court challenge to the 2007 Military Court to deal with widespread military abuse. Interestingly, the court case Lane v Morrison that sank the previous court came out of a recruitment drive here in Roma in 2005. After a round of golf and drinks, Lane supposedly ”tea-bagged” an army sergeant but denied the charge before the military court. Lane successfully argued the court was unconstitutional.
Greens amendment to the ill-fated Minerals Resource Rent Tax Act 2012 to disregard increases in state royalties after 1 July 2011 when calculating royalty credits for the tax. Adam Bandt’s objective is to protect tax revenue from being eroded by increased State Government royalties.
Rob Oakeshott’s bill to make the national electricity law a Commonwealth law rather than state law. Oakeshott said the states electricity networks have seen the biggest increases in electricity prices and still have the biggest say in how the pricing rules are set.
“There’s a clear conflict of interest in states owning monopolies and regulating monopolies at the same time,” he said.
Amend definitions in the 2011 National Health Reform Act to allow the new National Health Performance Authority report on the performance of hospitals and primary health care organisations.
Nicola Roxon’s A-G bill to amend the Native Title Act 1993 to disregard some historical extinguishment of native title and broaden the scope for voluntary indigenous land use agreements.
Families Minister Jenny Macklin’s bill to clarify provisions related to ‘keeping in touch’ days. This means that they can come to work for up to 10 days during their parental leave, without it affecting their unpaid parental leave entitlements.
Wayne Swan’s bill imposes a pay as you go (PAYG) withholding non-compliance tax on directors and some associates where their company has a PAYG withholding liability for an income year and the director or associate is entitled to a credit for amounts withheld by the company during the income year. These amendments reduce the scope for companies to engage in fraudulent phoenix activity or escape liabilities and payments of employee entitlements.
Joe Ludwig’s bill amends three acts to form the new Australian Grape and Wine Authority (see 17).
Ludwig’s bill removes product specific maximum rates for R&D charges and marketing charges as changing them is difficult, slow and expensive. See also 42 and 48.
Another Ludwig bill changing three acts to form the new Australian Grape and Wine Authority (see 17 and 39).
Another Ludwig bill to implement the government’s rural R&D policy, to remove product specific maximum levy rates for R&D levies and marketing levies. See 40 and 48.
Wilkie bill and companion to number 44 with consequential amendments to four acts.
Wilkie’s bill provides a comprehensive definition of public interest disclosure and provides protections to public officials to make such disclosures.
Katterbill to reduce market share to 20% by enforced divestiture over six years and establish a Commissioner for Food Retailing.
Katterbill to regulate renewable fuel and mandate 5% ethanol by 2017 and 10% by 2020.
Katterbill to establish an Australian Reconstruction and Development Board to fix financial arrangements of stressed Australian agriculture businesses and associated industries.
Ludwig’s third R&D bill affecting 8 acts. See 40 and 42.
Tertiary Education Minister Chris Bowen’s bill to introduce a national student id from 2014. Needed because there is no single repository of records for vocational education and training.
In conjunction with 21, Bill Shorten’s complex bill to ensure civil and criminal penalties for promoters illegal early release of superannuation benefits, part of his “stronger super” reforms.
Joe Hockey’s bill to provide an exception to the prohibition imposed on taxation officers about the disclosure of information regarding the tax affairs of a taxpayer. Hockey wants to remove doubt tax officers can provide information about the MRRT when the Minister wants to make it publicly available. The intention is to reveal how much the mining tax has raised, without breaching tax privacy laws.
Treasurer Swan’s bill to amend taxation legislation to restate the ‘in Australia’ special conditions for income tax exempt entities. The bill is raised after the High Court found charities are considered to be pursuing their objectives principally ‘in Australia’ if they merely operate to pass funds within Australia to another charity that conducts its activities overseas.
Communications Minister Stephen Conroy’s bill amends the Do Not Call Register Act to clarify who is responsible for making telemarketing calls and faxes where third parties are involved, vary industry codes and tighten the ombudsman standards.
Julia Gillard’s own bill to amend the Veterans’ Entitlements Act 1986 to extend the time period for lodging a claim for non-treatment related travel expenses from 3 to 12 months and enable further extensions of time in exceptional circumstances.
Greens bill to establish the Office of Animal Welfare as an independent statutory authority which was originally planned by Labor. Bandt said the Office would be a centre of excellence for animal welfare science and law and work to harmonise and improve animal welfare laws across the country. He also said it would give animals a voice in parliament, independent of the Agriculture Department and Ministry, to reduce animal cruelty.
According to the International Energy Agency, we are in “a golden age of gas”. Affordable ways of getting shale gas out of the ground has been the game-changer turning the US into a net energy exporter, as it comes to terms with its “social licence to operate”. Virtually non-existent ten years ago, the US expects shale to dominate their production by 2040.
In the short to medium term, growth will be steady rather than spectacular. The International Energy Agency’s new Medium-Term Gas Market Report said natural gas would grow at 2.4% a year to 2018. While this down on last year’s forecast of 2.7% due to the weakness of the European economy and upstream production difficulties in the Middle East and Africa, gas will become a more significant transportation fuel due to abundant shale gas in the US and more stringent environmental policies in China.
IEA executive director Maria van der Hoeven said the next five years would be important for the world gas economy. “Gas has already arrived as a major fuel in power generation, but the next five years will see it emerging as a significant transportation fuel as well, driven by abundant supplies, and infrastructure investment, as well as oil dependency and air pollution concerns,” Ms van der Hoeven said. “During this period natural gas vehicles will have a bigger impact in reducing oil demand than biofuels and electric cars combined.”
Australia is an increasing large player of this massive industry, though not currently in shale gas. Australia’s ‘proven and probable’ reserves of coal seam gas and conventional gas are around 140,000 petajoules, enough to meet more than 70 years of gas demand at current rates of production. The potential in-ground resource of coal seam and shale gas could be four times as large as known reserves.
CSG and shale gas are chemically the same as conventional gas (all of them 99% methane) but they are unconventional in that they are not directly released from empty underground chambers but instead extracted from coal (CSG) or sandstone (shale gas). Australia leads the world with CSG extraction technology but drilling for shale gas has a bonus CSG doesn’t have: liquid hydrocarbons or shale oil. These liquids have a re-sale value that makes shale gas more of a profitable proposition. Australia does have recoverable shale and waiting for cheaper sources might be the reason Korean giant KOGAS withdrew from negotiations with Chevron to buy $29b of gas from its Gorgon project in WA.
But for now Australia is riding on the back of coal seam gas. High gas prices in Asia have supported enormous investment in gas infrastructure in Australia, despite our high construction costs relative to other countries. On the east coast, $50 billion has been committed to developing LNG export facilities and a further $116b development is underway in WA. Together they represent 13 new LNG trains (a train cools and compresses the gas into LNG) making the industry a driving force for the economy over the next decade and beyond. In just one year’s time, the first Liquefied Natural Gas carrier ships will dock off Gladstone, ready to ship LNG to mostly Asian markets. Already the fifth largest exporter of gas thanks to WA LNG, by 2015 Australia could be second only to Qatar. By 2017 it could have the world’s largest gas export industry worth by Grattan Institute’s measure $58 billion a year.
But as Grattan also found out, in their “Getting Gas right” report, that money does not mean good news for everyone. Domestic prices will be higher and the government will need to intervene to ensure fair market outcomes. Over 93% of Australia’s coal seam gas reserves are in Queensland and the industry has a large footprint here in the Roma region, with lots of gaswells, compressor stations, camps and the Wallumbilla Hub.
The Hub, some 52km south-east of Roma, is little known outside the region but it is crucial topic of conversation at Council Of Australian Government meetings. The Wallumbilla hub is a perfectly positioned traffic cop of pipelines linking the Queensland gasfields with Brisbane, Sydney, Newcastle, Gladstone and Adelaide. Like COAG’s Standing Council on Energy and Resources, Grattan Institute promotes its importance as a new trading hub to drive a more transparent market.
In 2012 SCER commissioned work on the possible design of a gas trading market at Wallumbilla. The hub is a major pipeline interconnection point for the Surat−Bowen Basin and in December SCER agreed to the ‘brokerage hub’ concept, with a view to launching a voluntary market from early 2014. The ‘brokerage’ hub is an exchange, to match and clear trades using existing physical infrastructure. Given physical limitations, separate trading nodes would be created for each of the major pipelines connected to the hub. The introduction of services to assist gas trading between nodes may follow and the market model is intended to be capable of replication in other locations.
The Wallumbilla Hub was among three government initiatives Grattan sees as crucial for the industry, along with fixing the mess in New South Wales and the ability to trade pipeline capacity. NSW does not have a proper social licence to operate and the strong anti-gas lobby has led to State Government restrictions. The impasse could lead to a statewide gas shortage by 2016. The stalemate caused by community concerns and a poor regulatory regime could be solved by ramping up CSG production under the co-operative model of the US Center for Sustainable Shale Development or else by increasing pipeline capacity from interstate.
Grattan sees a role for Government to address supply-side failures, particularly as the east coast moves towards a short-term trading market. Wallumbilla Hub will join the Australian Energy Market Operator, the Victorian gas wholesale market and the national gas market bulletin board in providing price transparency and giving customers a chance to benchmark prices. A gas price index, as discussed in the Government’s energy white paper 2012, is currently on hold.
But the Grattan Institute is against the Western Australian government’s policy on reserving gas for domestic use (despite what the DomGas alliance thinks). They said protectionism might provide some short-term price relief for targeted industries, but ultimately led to higher prices and damaged the economy. Gas is dearer in the west than in the east coast and introducing it the east would not only make it more expensive it would affect existing investments and damage Australia’s business reputation. Protectionism also funds lobby groups at the expense of more worthwhile investments.
Protectionism is warranted only for infant industries, says Grattan, and only according to the Mill-Bastable test (that is they will eventually survive without protection and future benefits outweigh current costs). Though clear and intuitive, the Mill-Bastable Test is hard to apply in practice: both the beneﬁts and costs of protection change over time as learning progresses.
But protectionism or no, prices in Australia will rise. High gas prices in Asia are driving the export industry, but it eventually means higher gas prices at home too as the industry finds equilibrium. The biggest losers will be Victorian domestic customers (who use two thirds of the domestic gas) and WA manufacturers (who use the lion’s share of industrial gas). Golden age of gas or not, Governments need to grasp the nettle of this crucial industry in the coming decade. Gas-fired power generation is likely to be an increasingly strong part of the energy mix in a carbon-constrained world.
The COAG Reform Council has released its first assessment report under the Coal Seam Gas and Large Coal Mining Development National Partnership Agreement with disagreement between the Commonwealth and NSW the major hurdle. The National Partnership Agreement report looks at whether participating governments have completed their actions under the agreement which reviews CSG and large coal mining developments and their potential impact on water resources.
Of the four States participating in the agreement-New South Wales, Victoria, Queensland and South Australia – only NSW has not completed its milestone to publicly release a protocol for referring projects to the new Independent Expert Scientific Committee (IESC). The issue is that the NSW and Commonwealth Governments have not agreed on NSW’s draft protocol. The report said it remained unclear how NSW would decide which projects to refer to the IESC for advice outside of land it has identified as ‘Strategic Agricultural Land’.
This delay may defer the provision of NSW project applications to the IESC for advice until the protocol is published and will also affect the period to which the benchmark to refer all project applications to the IESC for advice before amending legislation, regulations and guidelines applies. Queensland, however remains on track having signed the National Partnership on February 14, 2012 (under the Bligh Government) thanks to a one-off $18 million payment from the Federal Government.
Despite complaints from the Newman Government about duplication of regulatory bodies, the new government endorsed the protocol for project referral on October 1 2012. The protocol requires Queensland government officers to refer a proposal if it is deemed a ‘project application’ (that is, it requires an Environmental Impact Statement) and it is ‘likely’ to have a ‘significant impact on water resources’. However as of October 2012 Queensland has not referred any projects to the IESC, though the Commonwealth has referred several Queensland projects.
The aim of the IESC is to give Australian governments solid scientific advice on the potential effects of CSG and large coal mining developments on water resources. On November 27 last year, federal environment and water minister Tony Burke announced its creation as a statutory body under amendments to the Environment Protection and Biodiversity Conservation Act 1999. The six-person committee’s role is advisory only and it has no responsibility for issuing approvals for projects or recommending whether a project should or should not be approved.
At the time, Tony Burke said the Committee was created to provide advice on coal seam gas proposals and large coal mining developments. “The work of this committee will give communities reason to be confident that future decisions about coal seam gas and large coal mining development are informed by the best possible science,” Burke said.
Releasing its first report this month, the COAG Reform Council chair former Victorian premier John Brumby said CSG mining was a contentious issue. “Coal seam gas mining has an important role to play in Australia’s future energy security and economic development,” Brumby said. “This agreement aims to improve the community’s confidence in decisions on coal seam gas and large coal mining development by informing those decisions with substantially improved science and independent expert advice.” Brumby said in the five years to 2010-11, CSG production increased from 2% to 11% of Australia’s total gas production. “Coal seam gas is an important source of natural gas that has the potential to strengthen Australia’s long-term energy security and to further expand energy exports to meet growing global demand for energy,” he said.
The report found Australia’s CSG reserves that have been identified as profitably extractable have been increasing in recent years up to around 35 000 petajoules (PJ) .Estimates suggest a further 65,000 PJ could become economically viable in the future and there are even larger estimates of inferred (122 000 PJ) and potential (259 000 PJ) CSG resources. The report said the community was concerned about potential environmental impacts of new developments including the volume of water produced as a by-product of CSG extraction and possible contamination of fresh water aquifers.
It identified three priority areas to strengthen decision making:
1. more closely identifying potential and actual impacts on water resources, and avoid or minimise significant impacts through a transparent process that builds public confidence
2 substantially improving governments’ collective scientific understanding of the actual and potential effects of CSG and coal mining developments on water resources
3 ensuring the best scientific information and expertise underpins all relevant regulatory processes and decisions.
The Surat Basin is one of the priority areas identified for bioregional assessment. The report says the bioregional assessments would analyse the ecology, hydrology and geology of an area to assess the potential risks to water resources as a result of the impacts of coal seam gas or large coal mining developments.“These assessments will provide advice to governments about the water related resources and risks on a region-wide, rather than project specific basis,” the report said.
The National Partnership program will provide $50m over three financial years with 50% going to the states and 25% each to according to the relative distribution of coal production and CSG projects.
Commonwealth-referred Queensland projects under consideration by IESC are:
Stanmore ‘The Range’ Open Cut Coal Mine – being considered
Newland Coal Extension Project – being considered
Arrow Bowen Gas Project – advice provided
Santos Future Gas Supply Area Project – advice provided
Middlemount Coal Mine – advice provided
Anglo Coal (Foxleigh) Pty Ltd—Foxleigh Coal Mine Extension – being considered
Hancock Prospecting Pty Ltd—Alpha Coal Project—Mine and Rail Development - advice provided
Aquila Resources Ltd—Blackwater Washpool Coal – being considered
Adani Resources Ltd—Carmichael Coal Mine and Rail Project – being considered
AMCI (Alpha) Pty Ltd—South Galilee Coal Project – being considered
Taroom Coal Project, Surat Basin – advice provided
Collingwood Coal Project, Surat Basin – advice provided
Codrilla Coal Mine, south east of Moranbah – advice provided
Sonoma Coal Mine Expansion, Collinsville – being considered
The latest in a long line of Aussie hoaxes was perpetrated to great effect this week though its creator might yet pay a penalty of ten years and half a million bucks. Anti-coal activist Jonathan Moylan is in the wars for putting out a press release in the name of ANZ Bank on Tuesday. The release said the bank was divesting its $1.2b loan to Whitehaven Coal for its Maules Creek Coal Project. It was an important announcement. In Whitehaven’s own words, Maules Creek is “one of only a few remaining tier 1 undeveloped coal assets in Australia. It is also one of the largest coal deposits in Australia with 362 Mt of recoverable reserves.”
Before it could be exposed as a hoax, it triggered a stock market collapse for the coal company. While almost all of the losses were subsequently recovered before the day was out, Moylan’s actions raises serious political as well as ethical and legal issues. Using dubious means, he focussed attention on the important question about whether we should be investing in major coal projects in a time when fossil fuel emission is the biggest issue we face as a species.Maules Creek is in the heart of the rich Gunnedah Basin in NSW. That state and Queensland produce 97 percent of Australia’s black coal. It is an industry in decline with Australia producing 405 million tonnes of raw black coal in 2010-11 down from 471 Mt. in 2009-10. Yet Australia remains the world’s fourth largest coal producer and the world’s leading exporter with markets in Japan, South Korea, China, India and Europe. Coal fired generators are leading contributors (20 percent) to a greenhouse effect as heavy-grade emitters of carbon dioxide and methane into the atmosphere.
The Centre for Climate and Energy Solutions acknowledges fixing the coal issue will be difficult. Coal is cheap, is important for meeting energy needs in the developing countries, and has good lobby groups in countries like the US, which is the “Saudi Arabia of coal.” Coal-fired generators could still play a role if carbon capture and storage (CCS) technology ever takes off, possibly 10-15 years away. There would also be a need for a carbon market, priced at around $30 a ton of CO2 and a way of retrofitting CCS into existing technology. An ANZ that truly considered its customers interests, would ensure such boxes were being ticked. But it has no plans to do so and there is no scrutiny of whether such interests are considered.
Instead, the argument focussed on Moylan with those dividing into two sides on whether his hoax ends justified the means. Those that supported him like Bob Brown identified Moylan’s action as a necessary civil disobedience that brought out in the open ANZ’s investment in coal. That brought out the coalition’s Eric Abetz saying the ends did not justify the means. He turned it into an attack on Lee Rhiannon and the Greens’ “extreme political tendencies.”
Whoever is right, there is one thing for certain – Moylan planned his attack well. He put together a fake ANZ press template, a website and dummy email inbox online. The press release was a remarkable use of managerial language to frame an argument that would be quite unusual and brave in an Australian business context. Moylan used the voice of ANZ Corporate Communications to announce the bank would not support the project. Toby Kent, “Group head of corporate sustainability” was quoted to say the company wouldn’t invest in coal projects that cause “significant dislocation of farmers, unacceptable damage to the environment, or social conflict.” The decision was made after “a careful analysis of reputational risks and analysis of the returns on this mine in the current climate of high volatility in the coal export market.” The released concluded with the statement ANZ was undertaking “a review of coal and gas investments on productive agricultural lands and areas of high biodiversity.”
Moylan’s fake ANZ release was quickly picked up by AAP Newswire who failed to conduct any of the basic identity checks that would have exposed the hoax. At the bottom of the emails are phone numbers for Toby Kent and Joanne McCulloch “Media Relations Advisor” which if anyone had bothering phoning would have quickly exposed this email as a hoax. Either that or a quick check of ANZ’s database of media releases would have been enough to dispel, or at least doubt, the information.
Instead AAP swallowed the news whole and provided it directly to the markets. When traders in the Australian Stock Exchange saw the newswires shortly after midday Tuesday, they went ballistic. Whitehaven bore the brunt as 85% owners of Maules Creek Coal. Maules Creek is 18km north-east of Boggabri on the Kamilaroi Highway between Narrabri and Gunndah. It is also just 16km from the railway line servicing the coal terminals at the Port of Newcastle, 360km to the south-east. Maules Creek’s current resources are expected to support a large open cut mining operation for 30 years at an average saleable coal production rate of 10.8 million tonnes per annum (Mtpa). Subject to approvals, the first coal production will commence in mid 2013, with saleable production exceeding 10Mtpa from 2016 onwards.
But it was a dead duck without ANZ’s investment, and within minutes Whitehaven shares plunged almost 10 percent from $3.52 to $3.21. Whitehaven Coal lost more than $276 million in market value. It capped off a bad year for the company since it merged with Nathan Tinkler’s Aston last April giving him 19.4 percent ownership. The share price has lost over half its value since then with CEO Tony Haggarty and the board blaming it on uncertainty due to Tinkler’s financial woes - they want him to divest to institutions. Tinkler was quick to return fire on Haggarty and the board saying he wanted to increase his holding not decrease it.
That plan may be in tatters after Tuesday. The price did not recover until the real ANZ responded with a media release (pdf) entitled “Fraudulent media release regarding Whitehaven Coal”. This release (which looked remarkably like the fraudulent one) said ANZ remained “fully supportive of Whitehaven Coal.”
At the end of trading, Whitehaven was just 2c down on the day reflecting the fact there were other issues with the project. The damage done to Tinkler, was variously estimated to be anywhere between $50m and $180m (assuming it wasn’t him who picked up the shares when they were on the rebound).
Whatever the damage to Tinkler or Whitehaven, Moylan will suffer significant collateral damage. There is a strong prima facie case his actions were illegal according to Section 1041E of the Corporations Act 2001 (Cth). That act states it is an offence if a person makes a knowingly false statement that is likely to make people dispose of shares. The maximum jail term for individuals is 10 years, with fines of up to $495,000. Organisations face fines of up to $4.6 million.
The Australian Securities Investment Commission said it would be investigating whether there had been a breach of Corporations Act rules on false or misleading statements. According to dean of law at the University of Western Sydney Michael Adams the legislation that deals with corporate fraud imposes a high penalty on false or misleading statements about traded securities on the ASX. Adams believes a successful prosecution will hang on the difference between a public nuisance and civil disobedience. “A protest normally provides publicity for a cause and brings the matter to the general public’s attention, but causes little harm to the community,” Adams said. “A fraud – and in particular one that impacts on the share market – has huge consequences”.
Research fellow on ethics Edward Spence picked up on Abetz’s argument about the ends and the means. Spence said Moylan’s ethical failings were harmful to the “integrity of the digital informational environment”. This is the environment whose trustworthiness, Spence said “we all rely on to conduct our legitimate informational transactions.” We are not only biological beings, he said but also and increasingly informational beings. “When the informational environment is harmed we are also harmed.”
Spence may be exaggerating the harm here as it ignores the fact that checks and balances such as AAP did not do its job properly. Nor did any of the rest of the media use the hoax to expose ANZ’s dealings with the coal industry. Why didn’t anyone ask the bank if they would do “a review of coal and gas investments on productive agricultural lands and areas of high biodiversity”.Why is it acceptable for the bank to continue to invest in projects that cause “significant dislocation of farmers, unacceptable damage to the environment, or social conflict?”
Not surprisingly the Korean decision has been welcomed by the Australian Government. Climate change minister Greg Combet was quick off the mark with a media release on Thursday. Combet congratulated the South Korean Government for “taking this important step to drive sustainable growth and reduce greenhouse gas emissions”. Combet said Australia was now one of 34 countries around the world to use emissions trading as the primary vehicle to drive carbon pollution reduction. “We are far from leading the world, as some have claimed,” Combet said referring to Coalition carping that Australia was taking too much of a risk with its tax.
Situated in pristine country, some 750km northwest of Brisbane is the Carnarvon National Park. The highlight is the astonishingly beautiful Carnarvon Gorge and I did the 240km drive north from Roma today to do some of its walks.
The full walk is over 10kms one way following the Carnarvon Creek with several detours along the way to interesting geology and human formations. I left Roma at 6am and got there at 8.30am. The rangers there recommended against the full walk with a very hot day (> 35 degrees C) expected. I still plumped for a tough 14km walk that took in four of the Gorge’s intriguing diversions.
The geology of the area is complex. The white cliffs are sandstone and volcanic eruptions formed basalt caps.
The trail crisscrosses the creek on numerous occasions and it is important to keep an eye on the stones below as you hop across for fear of ending up in the drink.
I decided to go to the furtherest detour first and work my way back. And after 7km of walking I got to the Art Gallery, home to the Aboriginal rock art. Here Indigenous painters used stencils, quartzile tools, hand designs and free painting all the aspects of their lives. The life-size boomerangs, pottery, kangaroos and emu eggs are matched with a collection of vulvas unknown elsewhere in Aboriginal art. The thousand-year old stencils mix with more recent European etchings as people still want to leave their mark.
Next stop back is Ward’s Canyon. The canyon is named for two brothers who camped here while trapping possums in the 1910s. The canyon is known for its tree ferns and king ferns. The king ferns are particularly impressive and this is only place away from the Australian coast you can find the threatened species. The two metre-long fronds rely totally on the water supply to keep them erect.
As the time crept towards midday, the sun was almost directly overhead making shade difficult to find and walking a hot and sweaty exercise. Plenty of water was required though the rangers don’t recommend you drink the creek water.
The third stop is the amphitheatre. The shape of the entrance (reached by 50 steps) is a clue perhaps as to why the Aboriginal graffiti was full of vulvas in this area.
The amphitheatre is a magical spot. Like the Gorge, the amphitheatre was formed out of the erosion soft sandstone by the relentless forces of water. It is not hard to be awed by the spot and its cool shade was greatly appreciated today.
The last stop was the Moss Garden. The sandstone soaks up rainwater like a giant sponge. When the water meets an impenetrable layer of shale, the water moves sideways and trickles out from the wall. The constant moisture sustains a green oasis of mosses, ferns and liverworts. After 4 hours and 15km of walking in the hot sun, it was a relief to get back to base. The Carnarvons are a walker’s paradise – but there is a reason it was quiet today. The tourist season is from April to October, when the temperatures are at least 15 degrees cooler.
The consequences to the planet of a “gaping 8 year hole” are potentially catastrophic, particularly as the likely outcome is a further increase in carbon emissions in the short term. But while they are right, the Greens are showing their usual tendency to forget realpolitik: this latest deal is as good as the governments of the world were willing to give at the time, giving their widely differing places at the table. This agreement to change is built on the small steps Bali, Copenhagen and Cancun agreements to give a roadmap towards worldwide reductions in 2020 and that is mostly a good thing.
There are things the Greens are right to be angry about. Sea level rises caused by warmer temperatures will continue long after the oven is turned down in 2020. There is also the prospect of mass extinction of species. Current best estimates have atmospheric carbon dioxide concentration expecting to exceed 500 parts per million and global temperatures to rise by at least 2°C by 2050 to 2100. These values significantly exceed anything in the least the past 420,000 years during which most of our marine organisms evolved.
Earth relies on the greenhouse effect to sustain life. But CO2, methane and nitrous oxide all absorb infrared energy and keep heat energy on Earth and all are on the increase. The effects are varied: the North West Passage is becoming seaworthy again, the 3250 sq km Larsen B ice shelf disappeared in a month in 2002, glaciers in Argentina and Chile are melting at double the rate of 1975 while sea temperature rises are threatening coral reefs across the world.
Even modest increases in sea levels could cause major flooding in many of the world’s low lying megalopolises. If there is a rise in sea levels of 0.5m, the Majuro Atoll in the Pacific Marshall Islands would mostly disappear. If the sea level rises by 1m, one fifth of Bangladesh goes under as would 13 of the world’s 15 largest cities. If the unstable West Antarctic Ice Shelf eplicated the behaviour of Larsen B sea levels could rise as much as 3m. If Greenland once again resembled its name it would add 7m to water levels.
This picture is a New York with a 5m rise, not beyond the bounds of possibility though the IPCC Fourth Assessment Report worst case scenario only allows for a maximum of 0.6m to 2100. The report also acknowledges global emissions will grow despite any mitigation measures. Even at the more likely levels of 0.3m by 2100, that rise is enough to obliterate many island nations. Without the power to influence conferences except by emotion, their biggest challenge will be to preserve their nationality without a territory. Believing that such a loss might be temporary has lawyers rushing to the Law of the Sea and the UN Convention to see how such states could survive “in exile”. Despite the depression that starts this kind of thinking, this is profoundly optimistic in the long term.
It speaks to the unending human belief we can fix any problem, including ones caused by our own actions. The annual Climate Change Conference is like a large ship with a slow turning circle. But it is slowly taking effect. The year 1990 is used as the benchmark year for all emissions as this was around the time science realised there was a major problem. It was also the year UN-steered climate change negotiations started. No-one cared at first. In the 5 years after 1990, carbon emissions worldwide increased from 1 billion tons to 7 billion tons.
20 years down the track, the scientists still have difficulty selling their message, if some sections of the right and the media are to be believed. On the other side, the Green movement thinks we are not moving fast enough. Yet recent International Energy Agency data shows global action is beginning to work. Countries who participated in the Kyoto Protocol were 15% below their 1990 levels two decades later. The problem is the Kyoto non binding countries led by China and the Middle East have greatly expanded their emissions in that time.
This is why a global agreement was so important. The developing countries have a point in that historically the West has caused more emissions. But they have learned quickly from Western technology and China is now the world’s biggest emitter. An agreement of “annex” and “non annex” countries no longer makes sense despite the best arguments of India and China.
This is why those countries ultimately signed the agreement. Let no one underestimate what was achieved in Durban this weekend. We have signed the first global deal that scales back our fossil fuel economy. 2020 is a long way away and there will be more eight more meetings and eight more frenetic all-night negotiations as nations and economic blocs jostle for position in the brave new world of a post-carbon economy. It does not mean no action until 2020. The decision offers a clear signal the ship is turning and passengers need to look the other way. The markets will now do their bit by promoting investment in industries that best fit the new paradigm.
If the Greens are impatient we are not turning fast enough, then rightwing groups such as the Australian Coalition are determined to steer straight ahead regardless. Abbott’s claim the carbon tax is an “international orphan” is wrong on at least three counts: Australia is not the only country to price carbon, it will be a necessary requirement to send the right market signals to move to renewables, and its overgenerous compensation will mean that it will have little genuine effect on the nation’s massive fossil fuel industry in the short term. By 2020, the world will still be warming to dangerous levels. But an agreement is now in place to deal with the problem. And Australia has an enforcing mechanism. Whether that is all too little too late is for our grandchildren to judge.
The report for phase one is part of a two phase strategic study into a high speed rail network (HSR) on the east coast of Australia. The study looks at potential routes from Brisbane southwards to Sydney, Canberra and Melbourne, as well as the economic viability of such a network. It talks about likely corridors, options for station locations, high level costs, and forecasts about patronage, and comparative analysis of potential social and regional development impacts. Albanese has asked for feedback on the report in the next two months.
According to the Executive Summary (pdf) the study is divided into two phases. The first phase looks at costs, corridors and demand while a future phase two will look at financial feasibility, best route alignment and patronage and cost estimates and potential financing options.
At this stage, the total cost of the project is estimated as anything from $61 billion to $108 billion depending upon the corridors selected. The costs include land acquisition, stations and city access, maintenance and stabling facilities, power infrastructure, civil and rail infrastructure and IT and ticketing systems. They exclude management costs (add another 15%) and operating costs. The four corridors considered are Brisbane to Newcastle via the coast, Newcastle to Sydney, Sydney to Canberra and Canberra to Melbourne. Urban access would be by tunnel and stations would need to be in the central business district of each city.
Regional stations would be at Gold Coast, Tweed, Coffs Harbour, Gosford, Wollongong, Mittagong, Wagga, Albury and Shepparton. The Newcastle to Brisbane link is by far the most expensive leg probably due to the need to get through the mountainous Scenic Rim area on the NSW-Queensland border.
The report said people make over 100 million long distance trips on the east coast of Australia each year, and this is set to grow to 264m trips over the next 45 years. By 2036 54 million people may use an HSR network each year. The study showed inter-city non-stop running times could be around 3 hours between Brisbane and Sydney and Sydney and Melbourne, 40 minutes between Newcastle and Sydney and One hour between Sydney and Canberra. The network infrastructure would be a double-track standard-gauge electrified line with maximum operating speed of 200 km/h in the cities and 350 km/h outside. Services would be operated by eight car sets moving to 12 or 16 depending on demand.
The report identified five key issues for resolution in phase 2. These are 1. Overcoming the topographical and environmental constraints of the Sydney to Newcastle leg 2. Determining if the Sydney station is in the CBD (more costly) or in Homebush or Parramatta (reducing patronage) 3. Fitting in the Illawarra region despite its geographical challenges 4. Determining if Melbourne Airport will be on the route 5. Determining if Canberra is on the main line or on a branch.
The next phase is a Phase 2 report, due in 2012. If approved, services may be running between Sydney and Newcastle by 2020 and Melbourne and Sydney by 2025.
That this quote is taken out of context is no surprise in the light of similar shenanigans, nor it is that the one sentence that has immediate political implications be lifted above all others in a considered economic tract about the future. As British former Tory MP Iain Dale found out when he went to parliament today, this country does a poor line in genuine debate and the response is as Professor Garnaut must have feared. When the political game is expediency above everything and the media game is primarily about conflict, a reasoned document such as this will get short shrift. The future seems very far away when there is so much shit-stirring to do in the present.
The future is very much on Garnaut’s mind. He begins by bringing the science up to date from his last review in 2008. There is a statistically significant warming trend and it did not end in 1998 or in any other year. If anything science says matters have gotten worse since 2008 and its prognosis of drastic global warming is now established beyond reasonable doubt. The projection of Australia’s emissions trajectory if nothing is done to change behaviour has grown to 24 per cent above 2000 levels (a 4 per cent above the levels expected in 2007). As Garnaut says “this will not be easily understood by other countries and is likely to bring Australian mitigation policy under close scrutiny.”
All countries will closely examine each other’s efforts to confirm that each is contributing its fair share. China is on a fastpath towards climate action and has also achieved considerable success in the implementation targets with widescale regulatory changes in energy and innovation. The Cancun Agreement has pledged Australia to 2020 targets of –5% to –25% of 2000 emissions with a review in 2014. Garnaut said it was in the country’s national interest in in effective mitigation to make the emerging arrangements work.
He then went on to look at the two models to reduce carbon emissions: a market-based approach, built on a price on emissions; and a regulatory approach, or direct action. In the market-based approach, carbon can be priced either by fixed-price schemes (carbon taxes) where the market decides how much it will reduce the quantity of emissions or by floating price schemes (ETS) win which permits to emit are issued up to a set limit. The permits are tradeable so the market sets the price. In the alternative route, regulation or direct action, there are many ways that government can intervene to direct firms and households to go about their business and their lives.
Garnaut much prefers the carbon price option. For one, it raises considerable revenues that can buffer the transition. Much of this revenue could be used to reduce personal income tax rates on households at the lower end of the income distribution and would encourage labour force participation. Some revenue should also be used to purchase carbon credits from the land sector and also to support the business sector to innovate emissions-reducing technologies. It has less short-term negative effects on productivity growth and incomes than “direct action”. The other problem with direct action is that it relies on the ideas of a small number of politicians and their advisers and confidants who would be subject to lobby pressure. “While some of these ideas might be brilliant,” Garnaut said, “they would not be as creative or productive as millions of Australian minds responding to the incentives provided by carbon pricing and a competitive marketplace.”
Electricity prices will go up in that marketplace, but not as much as they went up after 2006 due to distortions in price regulation of distribution networks. There would also be compensation, which did not occur in 2006. Garnaut suggests a starting price of carbon in mid-2012 as $20-$30 rising at 4 percent a year. An ETS of some sort will be needed to be administered by an independent authority such as a Carbon Bank. By 2015 agriculture will need to be brought into the fold, perhaps in line with New Zealand’s plans to do exactly that.
Garnaut does indeed say householders will bear the full cost of a carbon price as international markets will determine returns to capital. But this is why “it makes sense from equity and efficiency perspectives for households to ultimately receive the vast majority of the carbon pricing revenue.” Tax cuts will assist household to spend money on goods and services that embody low emissions and at the same time the carbon price will set off a supply side adjustment to enable low cost emissions reductions.
Its not in the review papers but Garnaut has this to say about those who say Australia is a small contributor to the world’s emissions and should not take the lead. “We matter even on climate change, even though our emissions are only 1.5 per cent of the world’s, just like the UK matters with its 1.7 per cent.” The Tory-led British Government has pledged to cut carbon emissions in half by 2025. That is “direct action” Tony Abbott and the anti-carbon tax cheer squad would have nightmares over.