There are a lot of things for Albo to do and the last thing he thinks about is fighting with resource companies. But that’s what He must do:
Soaring gas prices have claimed another casualty with a major NSW wholesaler forced to close, saying thousands of jobs were at risk due to an ‘unprecedented rapid rise’ in gas and coal costs .
Weston Energy, which supplies gas to more than 400 businesses and government agencies, has ceased operations with immediate effect, meaning 7% of the East Coast commercial and industrial market will be forced to find a new supplier.
The company said it could no longer fund the cash needs of its commercial portfolio “in a timely manner”, with prices rising more than 180% since April, and nearly three times higher than at the start of the year. year.
“Rapidly rising energy prices have put hundreds of Australian businesses and thousands of jobs at risk,” Weston chief executive Garbis Simonian said.
“The fact that Australia is the world’s largest exporter of coal and gas and that our domestic prices are at unprecedented levels highlights a real policy failure.”
“The circumstances currently rocking Australian energy markets have been predicted for some time, but little has been done to prepare Australian energy producers and users for this impact.”
It is neither more nor less complex than that. We have huge amounts of excess gas coming out of the ground at $1 Gj, but it’s all being sold to China by an export cartel for $31 Gj.
This left the local economy short and the cartel is now charging us even more than the Chinese at $35 Gj.
The answer is already in place. The Australian Domestic Gas Security Mechanism (ADGSM) can be triggered to force the cartel to sell more gas here until the price drops to a reasonable level around 7 Gj.
The advantages for this are immense:
- Huge pressure removed from all east coast utility bills, both gas and electric.
- Huge pressure removed from inflation on the supply side
- A huge boost to confidence in the domestic manufacturing sector to help the Labor Party’s industrial stimulus platform that the cartel will destroy at these prices.
- Low-emission baseload power supply guaranteed as renewables are deployed.
- Massive kick to the crotch from a prone coalition.
- Work emphasizing for everyone its letters of nobility of national interest.
- No impact on the budget as the cartel pays no taxes and growth will increase.
The ADGSM is a Coloition policy. There is NO political risk in triggering it.
In fact, if you don’t, Albo, we can only assume that, too, are on the cartel pay:
Everyone wondered if there was a connection between the government’s orientation and its financial indebtedness to the fossil fuel industry. But no one could prove it. Why? Because the Commonwealth has no real-time disclosure of political donations.
Only now, long after public attention has shifted, have those suspicions been confirmed. Thanks to donation data recently made public on the Australian Electoral Commission website, we know that fossil fuel companies – and the gas industry in particular – were generously donating to the two main parties at the time, the colossal sum $1,329,754 to be precise, with just over half of which coming from the gas industry.
The Coalition got the lion’s share ($731,534), although the Labor Party collected the not inconsiderable sum of $598,220.
If you add to the Coalition’s total for that year the little more than $1 million that TNL raised from fossil fuels through its Cormack fundraising entity, the Coalition’s indebtedness to gas , coal and mining over the 2020-21 period swells to $1,735,048.
Is this proof of corruption? No, but it certainly gives voters reason to wonder if there has been corruption. Namely, whether the gas-driven recovery policy was designed and intended by the Morrison government to serve the public or private interest.
Are you employed, Albo?