Gas Crisis & Fly Me to the Moon
My Commentary last Thursday 28 Sept questioned whether the “agreement” between Turnbull and three big gas exporters to have the latter supply additional gas domestically has solved the gas crisis. Yesterday the media took up the issue, with an editorial in Weekend Australian suggesting that Turnbull has made “an interim breakthrough this week when Australia’s three big gas exporters agreed to fix the ‘emergency’ shortfall that threatens to send prices soaring and shut down factories. A formal agreement in the coming week with Santos, Origin Energy and Shell appears likely to avert dire shortages next year and in 2019. The deal will avoid the need for the government to impose drastic controls on overseas shipments” (see Oz Editorial on Energy Crisis)
Gas and Political Crises
The further fall (down to a 46/54 TPP) in the Coalition’s Newspoll last Monday might have been expected to produce a swathe of comments as to either the possible replacement of Turnbull or possible major changes in Coalition policies. Surprisingly, few did so.
Energy Policy is Getting Nowhere at All
Today’s Australian runs a front page story saying that “Australian households are paying 60 per cent more for their power than those in the US and double their Canadian counterparts”. But while Minister Frydenberg acknowledges that our power cost is “still too high”, he claims that most of the price hike occurred under Labor and that the Turnbull government is “taking unprecedented action to reduce pressure on …household bills “(see “Electricity Bills”). Short of subsidising electricity it is difficult however to envisage significant falls. Frydenberg has dug himself so deeply in the Turnbull camp that is difficult to see how he can get out. Readers of my Commentaries will be aware of the widespread scepticism about the various policy changes first being considered by Turnbull and then dropped or put on one side. As to falls in electricity bills, Frydenberg’s attempt to shift the blame on to Labor seemingly overlooks the recent large increases imposed by my retail supplier AGL and doubtless other similarly large retailers too.
Abbott Challenges Turnbull on Climate & Energy Policy
The lead front page item in today’s Australian reports Abbott as indicating publicly that he will not support a clean energy target and that he advocates subsidies cease to be paid on wind and solar projects. The Australian also publishes an article by Abbott explaining his position. Both articles are attached. Abbott’s own article seems well written and, for the increasing number of sceptics on climate policy, it contains a sensible approach to energy policy which, inter alia, would ensure a reduction in electricity prices.
Will Coalition’s TPP Hold?
Federal Parliament does not sit again until 16 Oct (and then only for one week) and I assume there will be a Newspoll tomorrow. With Turnbull’s inability to decide an energy policy and the National Party Conference rejecting a clean energy target and voting to eliminate subsidies for renewable, the Coalition’s TPP is unlikely to increase. Indeed, with the No votes increasing on same sex marriage (but still above 50%), and No voter former PM Howard highlighting Turnbull’s failure before the vote to (at least) publish proposed protection for those opposing official legislation endorsing SS on an on-going basis , these last two weeks are more likely to have produced a fall in the TPP. That would be “exciting”.
How are Energy Prices Determined?
My Commentary last Sunday reported that, in a speech to the South Australian Liberal Party, Turnbull said that Labor’s approach to energy was a combination of ideology and politics, compared to the Liberal focus on economics and engineering. No doubt with the South Australian Labor Premier in mind, he classified South Australian policy as “it’s actually ideology and idiocy in equal measure”.
Unproductive Week in Canberra Leaves Energy Policy Adrift
My Commentary on 7 August suggested that the Newspoll on that day (a Coalition’s TPP of 47/53) mainly reflected the policies adopted by Turnbull since he became leader of the Coalition and that, unless there is a change in policies, there could be a further deterioration in its polling. I attached an article by Chris Kenny explaining why most of Turnbull’s policies were inconsistent with supposed Coalition objectives.
Assessing the Polling & Turnbull’s Leadership
My Commentary of 5 August included a section on Coalition Leadership and suggested the basic question that Coalition MPs have to face is whether to continue with Turnbull as leader in the event that Newspoll shows no significant change as Parliament resumes. That in fact is what happened, with the Coalition’s TPP remaining at 47/53 (compared with 50.4 at the July 2016 election) and its Primary Vote remaining at 36 (42.1 at July 2016 election). A glimmer of hope was that Labor’s Primary Vote fell by one percentage point to 36 but this is still equal to the Coalition’s and is higher than its 34.7 at the July 2016 election.
Can Turnbull Save the Day & Experts Challenge Energy Policy
As Parliament resumes next week after its winter break, new views about the leadership of the Coalition are naturally emerging and another Newspoll will occur. The last one on 24 July showed no change in the Coalition’s TPP (47/53), although its primary vote did improve slightly (from 35 to 36). But Labor’s primary also increased by one percentage point (to 37) and gave no indication that it was “slipping”.
Turnbull v Abbott?
I suggested in yesterday’s Commentary that various developments, including the apparent praise for Dutton following his appointment as Minister-Designate for Home Affairs, continued to put Turnbull’s present leadership on shaky ground. This despite the fact that Turnbull himself made the appointment.
Today we find that The Australian has published the result of a special Newspoll, taken between 20-23 July, showing that 58 per cent of voters say Malcolm Turnbull has the best values and leadership credentials while only 23 per cent favour Tony Abbott. The survey also shows that Abbott is little favoured as a either a senior Cabinet Minister (23%) or as a commentator on important issues (17%). Even only 48% support him as a backbencher who makes no public comments, but with fewer Coalition supporters than those from other parties (see Newspoll on Turnbull Leadership).