Antinuclear

Australian news, and some related international items

Things are crook for the Liberals, when the IPA blasts them on energy policies!

Institute of Public Affairs blasts Coalition’s ‘un-Liberal’ energy policies.  IPA’s John Roskam says government should ‘stop all subsidies to coal, wind and anything else’ Paul Karp @Paul_Karp, 27 Oct 2018 The Institute of Public Affairs has blasted the Morrison government’s “big stick” in energy policy – a threat to break up energy companies in a bid to lower prices – accusing it of breaching Liberal values and endangering investment.

The IPA executive director, John Roskam, told Guardian Australia that “heavy-handed intervention” was “positively un-Liberal” and would open the door for Labor to campaign on policies bashing big businesses – which are “simply responding to the policy settings the government itself has created” to make a profit.

Roskam also warned against any form of subsidy for electricity generation including renewables subsidies, underwriting new power generation and indemnifying coal power against a possible future carbon price.

The intervention from the influential rightwing thinktank exposes divisions in the conservative side of politics on energy policy. Some, including MP Craig Kelly and former prime minister Tony Abbott, have called for an end to renewable subsidies and withdrawal from the Paris agreement, in line with demands from the IPA.

The Morrison government has indicated it wants to preserve popular solar subsidies and to stay in Paris while it pushes ahead with competition measures to lower price in the absence of a policy to reduce emissions by 2030.

Roskam said breaking up energy companies “continues the trend of targeting particular industries” as the Coalition did with the bank tax in the 2017 budget and would “further confuse Australians” about what it stands for.

“The idea that the government would determine the shape and size of the industry in this way cuts across every principle of the Liberal party,” he said. “If you want a guarantee that nobody will ever invest in Australia again, this is how you do it.”

The Coalition has promised policies to encourage new generation – including providing a floor price, contracts for difference and government loans – and has not ruled out using those measures to support new coal-fired power stations.

The energy minister, Angus Taylor, has said the government should address investors’ concerns about “political risks”, in a sign it could also indemnify coal power against future emissions reduction policies such as a carbon price. Taylor has also said there is “no plan” to change the small-scale renewable energy scheme.

Roskam said the government should “stop all subsidies to coal, wind and anything else” because “picking winners should be an anathema to the Liberal party”.

Although the IPA wants to see more coal power, Roskam said the government should “reduce the regulatory barriers to them being funded”, not keep the barriers and overcome them with subsidies……

……. Roskam said the Liberal Party is “hopelessly conflicted on climate change” and “riven down the middle”…….

Despite the suggestion emissions and price reductions are incompatible, renewables are forecast to lower prices while coal subsidies would increase energy costs……   https://www.theguardian.com/australia-news/2018/oct/27/institute-of-public-affairs-blasts-coalitions-un-liberal-energy-policies

 

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October 27, 2018 - Posted by | AUSTRALIA - NATIONAL, energy, politics

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