Showing posts with label government policy. Show all posts
Showing posts with label government policy. Show all posts

Sunday 28 October 2018

On past performance it will only take state and federal National Party politicians and their mates a couple of years to drain Morrison's $5 billion Drought Future Fund


On 26 October 2018, in the face of ongoing allegations of financial gouging of the public purse and mismanagement of water resources in the Murray Darling Basin, Prime Minister and Liberal MP for Cook Scott Morrison unveiled his $5 billion Drought Future Fund at a summit attended by farmers, economists, industry bodies and state and federal ministers in Canberra....promising measures to drought-proof the nation's agriculture sector. The first $3.9 billion of the scheme, which would operate similarly to the Medical Future Fund, is to be paid for out of a pool of money originally intended for the National Disability Insurance Scheme.

What a brilliant idea.

Rob an already underfunded disability sector and the vulnerable people who depend on its services in order to beef up a proposed drought future fund,

What can possibly go wrong?

Well, on past history it will likely take National politicians and their mates about two years to empty this new fund  - with little to no drought-proofing to show for the taxpayer dollars they manage to redirect towards their own businesses.


The Age, 26 October 2018:

The Nationals' federal treasurer Peter Schwarz is accused of gouging much of the $850,000 he was paid by Australia’s largest drought-proofing project and calling in favours when pressed to account for the taxpayer cash.

As Prime Minister Scott Morrison launches his drought summit, leaked government files reveal that Mr Schwarz banked the taxpayer subsidies in November 2011 and then spent years resisting efforts from water officials to get him to or use it for its intended purpose – saving water.

The frustration of the Goulburn-Murray Water authority with the conduct of Mr Schwarz – who as well as being the Nationals key federal fundraiser is also running in next month’s Victorian election – is exposed in dozens of damning leaked authority files.

The files provide a case study of issues which are front and centre at Mr Morrison’s drought summit and which are being examined by drought envoy and Nationals MP Barnaby Joyce: using taxpayer funds to help farmers deal with drought, and, questions about whether backroom favours or mismanagement are undermining drought-relief efforts.

Among the leaked files is a July 15, 2016 memo from a water authority lawyer summing up his view of Mr Schwarz’s conduct after he joined hundreds of other farmers given cash incentives as part of Australia’s largest water saving initiative, the Connections Project. The project aims to help restore the Murray Darling water system.

The lawyer stated that after Mr Schwarz received $850,505 in 2011 – divided into $473,000 for on-farm water-saving measures and $300,000 to buy a neighbouring property – he ‘‘failed to perform any of the obligations despite having received the payment … in full.’’

‘‘The Schwarzes have spent much of the ensuing period attempting to make a case that, notwithstanding they entered into the agreement and received payment, they should not be bound to perform,’’ the July 2016 legal memo states.

The leaked files also reveal that Mr Schwarz sought to call on his personal relationship with a controversial high-ranking water official, Gavin Hanlon, and an unnamed ‘‘minister’’ to ‘‘support [his] cause’’.

Mr Hanlon was a senior Victorian water official who was headhunted by the NSW government as its irrigation chief. He quit his NSW post in 2017 after revelations of questionable dealings with farm lobbyists, sparking an ongoing investigation by the NSW Independent Commission Against Corruption……..

In a statement to Fairfax Media, the water authority said that seven years after it gave Mr Schwarz the funds, the stand-off over with him has been "substantially resolved." It is understood that Mr Schwarz and Goulburn-Murray Water have finally agreed that he will use the funds for water savings, but no work has as yet been done.

The files reveal intense frustration inside Goulburn-Murray Water not only about Mr Schwarz’s conduct but the authority’s inability to recoup taxpayer funds.

A note written by an employee in April 2014 states that: ‘‘Peter told me on a number of occasions he would prefer to deal with higher GMW management and would not be accepting the agreement he had previously signed.’’.......

BACKGROUND

SBC News, 1 December 2018:

The NSW public has a right to know whether a senior government executive, fired over her alleged involvement in the Murray-Darling water theft scandal, received a six-figure payout, the opposition says.

A report into water theft in the Murray-Darling Basin, released on Thursday, confirmed that along with top bureaucrat Gavin Hanlon's public resignation, a second executive was fired for her role in the alleged misconduct.

AAP understands the senior executive is a former National Party staffer and irrigation lobbyist, who was appointed to a senior job within the Department of Primary Industries in 2015.

Opposition water spokesman Chris Minns said the Berejiklian government should confess whether the executive had received a golden handshake on her way out the door......

In September, NSW Minister for Primary Industries Niall Blair said misconduct proceedings had started against Mr Hanlon.

Mr Hanlon was forced to resign as the Department of Industry director general in September following allegations of misconduct, including promising to share internal government documents with irrigation lobbyists in 2016.

Thursday's independent investigation into NSW water management and compliance report, authored by Ken Matthews, said the second senior executive is alleged to have also been involved in the teleconference.

According to her LinkedIn profile, the executive was a policy officer for lobby group Southern River Irrigators between 2011 and 2013 before becoming an advisor to federal senator Simon Birmingham for a year......

Thursday's report comes less than a week after both NSW and Queensland were slammed by a Murray-Darling Basin Authority (MDBA) review into water theft and regulation.

That inquiry found both states regularly failed to make sure irrigators complied with the Murray-Darling Basin Plan, and weren't transparent about their failures......

The Guardian, 27 September 2018:

A former water industry lobbyist preselected by the New South Wales National party to lead its Senate ticket in the next federal election has suggested examining Barnaby Joyce’s proposal to release more water for irrigators.

Once a lobbyist for Murray Irrigation, Perin Davey won the No 1 spot on the NSW National party’s Senate ticket earlier this month, after the longtime Nationals senator and bank campaigner John “Wacka” Williams retired and the former Nationals deputy leader Fiona Nash resigned over her dual citizenship.

Davey was part of the teleconference with NSW government water official Gavin Hanlon, when he allegedly offered documents stripped of the department logo to help irrigators lobby against the Murray-Darling basin plan.

Hanlon resigned following the revelations, which were referred to the NSW Independent Commission Against Corruption. The former water minister Kevin Humphries was also referred to the state watchdog. Icac makes it a practice not to comment any current investigations. Davey said she had not been interviewed by Icac and Guardian Australia does not allege any wrongdoing.

The meeting was exposed in the 2017 Four Corners episode that reported allegations that water was being harvested by some irrigators in the Barwon-Darling region of the Murray-Darling basin to the detriment of the environment and downstream communities.

Joyce, the former agriculture minister, had nominated Davey to the board of the Murray-Darling Basin Authority but, as a result of the fallout from the program, Davey asked Joyce to withdraw her nomination.

Davey, who now runs her own government relations company, said she was simply participating in a teleconference and that it was not unusual......


North Coast Voices:

13 MARCH 2018
Only a handful of NSW landowners to face court over Murray-Darling Basin water theft allegations? The NSW Government will prosecute several people over alleged water theft on the Barwon-Darling, eight months after Four Corners investigated the issue. WaterNSW has named the people it is taking to the Land and Environment Court over alleged breaches of water management rules.

13 APRIL 2018
Alleged irrigator water theft heading for the courts? A cousin by marriage of the current Australian Minister for Agriculture and Water Resources David Littleproud, John Norman, finds his agricultural business practices under scrutiny...

30 APRIL 2018
What the Australian Government didn’t want the UN to publish During Nationals MP for New England Barnaby Joyce’s disastrous sojourn as Australian Deputy Prime Minister and Minister for Agriculture and Water Resources the federal government began a successfull campaign to have the United Nations delete all criticism of Australia’s $13bn effort to restore the ailing Murray-Darling river system from a published study.

Sunday 14 October 2018

Scott Morrison and climate change policy


On 8 October 2018 the UN International Panel On Climate Change issued this media release:


Incheon, Republic of Korea, October 8 – Limiting global warming to 1.5°C would require rapid, far-reaching and unprecedented changes in all aspects of society, the IPCC said in a new assessment. With clear benefits to people and natural ecosystems, limiting global warming to 1.5°C compared to 2°C could go hand in hand with ensuring a more sustainable and equitable society, the Intergovernmental Panel on Climate Change (IPCC) said on Monday.

The Special Report on Global Warming of 1.5°C was approved by the IPCC on Saturday in Incheon, Republic of Korea. It will be a key scientific input into the Katowice Climate Change Conference in Poland in December, when governments review the Paris Agreement to tackle climate change.

"With more than 6,000 scientific references cited and the dedicated contribution of thousands of expert and government reviewers worldwide, this important report testifies to the breadth and policy relevance of the IPCC," said Hoesung Lee, Chair of the IPCC.

Ninety-one authors and review editors from 40 countries prepared the IPCC report in response to an invitation from the United Nations Framework Convention on Climate Change (UNFCCC) when it adopted the Paris Agreement in 2015.

The report's full name is Global Warming of 1.5°C, an IPCC special report on the impacts of global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways, in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty.

"One of the key messages that comes out very strongly from this report is that we are already seeing the consequences of 1°C of global warming through more extreme weather, rising sea levels and diminishing Arctic sea ice, among other changes," said Panmao Zhai, Co-Chair of IPCC Working Group I.

The report highlights a number of climate change impacts that could be avoided by limiting global warming to 1.5°C compared to 2°C, or more. For instance, by 2100, global sea level rise would be 10 cm lower with global warming of 1.5°C compared with 2°C. The likelihood of an Arctic Ocean free of sea ice in summer would be once per century with global warming of 1.5°C, compared with at least once per decade with 2°C. Coral reefs would decline by 70-90 percent with global warming of 1.5°C, whereas virtually all (> 99 percent) would be lost with 2°C.

"Every extra bit of warming matters, especially since warming of 1.5°C or higher increases the risk associated with long-lasting or irreversible changes, such as the loss of some ecosystems," said Hans-Otto Pörtner, Co-Chair of IPCC Working Group II.

Limiting global warming would also give people and ecosystems more room to adapt and remain below relevant risk thresholds, added Pörtner. The report also examines pathways available to limit warming to 1.5°C, what it would take to achieve them and what the consequences could be. "The good news is that some of the kinds of actions that would be needed to limit global warming to 1.5°C are already underway around the world, but they would need to accelerate," said Valerie Masson-Delmotte, Co-Chair of Working Group I.

The report finds that limiting global warming to 1.5°C would require "rapid and far-reaching" transitions in land, energy, industry, buildings, transport, and cities. Global net human-caused emissions of carbon dioxide (CO2) would need to fall by about 45 percent from 2010 levels by 2030, reaching 'net zero' around 2050. This means that any remaining emissions would need to be balanced by removing CO2 from the air.

"Limiting warming to 1.5°C is possible within the laws of chemistry and physics but doing so would require unprecedented changes," said Jim Skea, Co-Chair of IPCC Working Group III.

Allowing the global temperature to temporarily exceed or 'overshoot' 1.5°C would mean a greater reliance on techniques that remove CO2 from the air to return global temperature to below 1.5°C by 2100. The effectiveness of such techniques are unproven at large scale and some may carry significant risks for sustainable development, the report notes.

"Limiting global warming to 1.5°C compared with 2°C would reduce challenging impacts on ecosystems, human health and well-being, making it easier to achieve the United Nations Sustainable Development Goals," said Priyardarshi Shukla, Co-Chair of IPCC Working Group III.

The decisions we make today are critical in ensuring a safe and sustainable world for everyone, both now and in the future, said Debra Roberts, Co-Chair of IPCC Working Group II.

"This report gives policymakers and practitioners the information they need to make decisions that tackle climate change while considering local context and people's needs. The next few years are probably the most important in our history," she said.

The IPCC is the leading world body for assessing the science related to climate change, its impacts and potential future risks, and possible response options.

The report was prepared under the scientific leadership of all three IPCC working groups. Working Group I assesses the physical science basis of climate change; Working Group II addresses impacts, adaptation and vulnerability; and Working Group III deals with the mitigation of climate change.

The Paris Agreement adopted by 195 nations at the 21st Conference of the Parties to the UNFCCC in December 2015 included the aim of strengthening the global response to the threat of climate change by "holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels."

As part of the decision to adopt the Paris Agreement, the IPCC was invited to produce, in 2018, a Special Report on global warming of 1.5°C above pre-industrial levels and related global greenhouse gas emission pathways. The IPCC accepted the invitation, adding that the Special Report would look at these issues in the context of strengthening the global response to the threat of climate change, sustainable development, and efforts to eradicate poverty.

Global Warming of 1.5°C is the first in a series of Special Reports to be produced in the IPCC's Sixth Assessment Cycle. Next year the IPCC will release the Special Report on the Ocean and Cryosphere in a Changing Climate, and Climate Change and Land, which looks at how climate change affects land use.

The Summary for Policymakers (SPM) presents the key findings of the Special Report, based on the assessment of the available scientific, technical and socio-economic literature relevant to global warming of 1.5°C.

The Summary for Policymakers of the Special Report on Global Warming of 1.5°C (SR15) is available at https://www.ipcc.ch/report/sr15 or www.ipcc.ch

The aforementioned summary forms part of the scientific findings informing the IPCC 6th Assessment Report currently being prepared by the working groups.

Australian Prime Minister and Liberal MP for Cook Scott Morrison sought to downplay its significance because it made no specific recommendations on a country by country basis.
He stated that last year the “same report” said that “Australia was right on the money when it came to the mix of climate change policies.

As far as I can tell last year’s special report did not give Australia a glowing endorsement.

If one wants an IPCC opinion on Australia's climate change policy one has to go documents such as this......

This is an excerpt from the IPCC Fifth Assessment Report (Working Group II Report "Climate Change 2014: Impacts, Adaptation, and Vulnerability") on the subject of Australia:

Adaptation is already occurring and adaptation planning is becoming embedded in some planning processes, albeit mostly at the conceptual rather than implementation level (high confidence). Many solutions for reducing energy and water consumption in urban areas with co-benefits for climate change adaptation (e.g., greening cities and recycling water) are already being implemented. Planning for 1375 25 Australasia Chapter 25 reduced water availability in southern Australia and for sea level rise in both countries is becoming adopted widely, although implementation of specific policies remains piecemeal, subject to political changes, and open to legal challenges. {25.4; Boxes 25-1, 25-2, 25-9} Adaptive capacity is generally high in many human systems, but implementation faces major constraints, especially for transformational responses at local and community levels (high confidence). Efforts to understand and enhance adaptive capacity and adaptation processes have increased since the AR4, particularly in Australia. Constraints on implementation arise from: absence of a consistent information base and uncertainty about projected impacts; limited financial and human resources to assess local risks and to develop and implement effective policies and rules; limited integration of different levels of governance; lack of binding guidance on principles and priorities; different attitudes towards the risks associated with climate change; and different values placed on objects and places at risk. {25.4, 25.10.3; Table 25-2; Box a5-1} [my yellow highlighting]

Successive Coalition federal governments (with Scott Morrison as a cabinet minister) typified this half-hearted approach to climate change mitigation. After four years the largely ineffective Emissions Reduction Fund is almost empty, the Renewable Energy Target has been all but abandoned and the National Energy Agreement is defunct, with the government's attention turned towards growing fossil fuel energy.

As prime minister Morrison has recently announced he will not be honouring Australia's $200 million pledge to the UNFCCC sponsored global Green Climate Fund (GCF).

It is no secret that Scott Morrison admires US President Donald Trump and right wing American politics generally.

As Morrison argues an inability for Australian action on climate change to make a real difference to ongoing global warming, given we only produce est. one percent of all annual global greenhouse gas emissions, one suspects that he would also agree with this reasoning behind the latest Trump administration refusal to act on climate change.

The Washington Post,  28 September 2018:

Last month, deep in a 500-page environmental impact statement, the Trump administration made a startling assumption: On its current course, the planet will warm a disastrous seven degrees by the end of this century.

A rise of seven degrees Fahrenheit, or about four degrees Celsius, compared with preindustrial levels would be catastrophic, according to scientists. Many coral reefs would dissolve in increasingly acidic oceans. Parts of Manhattan and Miami would be underwater without costly coastal defenses. Extreme heat waves would routinely smother large parts of the globe.

But the administration did not offer this dire forecast, premised on the idea that the world will fail to cut its greenhouse gas emissions, as part of an argument to combat climate change. Just the opposite: The analysis assumes the planet’s fate is already sealed.

The draft statement, issued by the National Highway Traffic Safety Administration (NHTSA), was written to justify President Trump’s decision to freeze federal fuel-efficiency standards for cars and light trucks built after 2020. While the proposal would increase greenhouse gas emissions, the impact statement says, that policy would add just a very small drop to a very big, hot bucket.

“The amazing thing they’re saying is human activities are going to lead to this rise of carbon dioxide that is disastrous for the environment and society. And then they’re saying they’re not going to do anything about it,” said Michael MacCracken, who served as a senior scientist at the U.S. Global Change Research Program from 1993 to 2002.....

Wednesday 3 October 2018

Next time a Liberal or Nationals minister ot backbencher starts to boast about how they are reducing national greenhouse gas emissions, look at this graph


It doesn't take a genuis level IQ to identify the point at which the Abbott and then Turnbull federal governments (with Scott Morrison as a cabinet minister in both) began to dismantle climate change policies.



1. National emissions levels are inclusive of all sectors of the economy, including Land Use, Land Use Change and Forestry (LULUCF)…..

The year to March 2018 annual change saw national greenhouse gas emissions rise by 1.3 per cent.

Monday 1 October 2018

It appears the Australian Government's $487.6 million* grant to the Great Barrier Reef Foundation may end up paying for little more than ‘feel good’ greenwashing exercises



The Guardian, 26 September 2018:

Great Barrier Reef scientists were told they would need to make “trade-offs” to the Great Barrier Reef Foundation, including focusing on projects that would look good for the government and encourage more corporate donations, emails tabled in the Senate reveal.

The documents, including cabinet briefing notes, contain significant new details about the workings of the foundation and the government decision to award it a $443m grant, including:

The executives of mining, gas and chemicals companies – and international financial houses that actively back fossil-fuel projects – were among the guests at a six-star retreat hosted by the foundation less than a month after the grant was announced;

The media companies Foxtel and Fairfax and the tech giant Google are among a tightly held list of donors to the foundation;

The only CSIRO employee contacted about the grant before the announcement in April was in Patagonia, and did not get the email. Documents have previously revealed that the government’s peak science agency was cut out of the decision to award the grant;

In August, as scrutiny of the grant intensified, public servants pushed to block a long-planned meeting between the then science minister, Michaelia Cash, and the head of the foundation, Anna Marsden, because of concern about the “optics”.

Emails sent by staff at the Australian Institute of Marine Science outline how government expectations, the ability to leverage private donations and public perceptions “may drive the [foundation] to prioritise shorter-term research initiatives in order to demonstrate progress and return on investment”.

“Where it becomes challenging is that … interventions with the largest future benefit also take the longest to develop,” the institute’s executive director of strategic policy, David Mead, wrote in an email to colleagues. 

 “Among other trade-offs, we will need to determine to what degree we focus on quick wins or whether we progress longer-term strategic interventions and accept that we will only partially progress them during the next five years (perhaps with little outward visibility of success/progress).”

The emails also reveal an initial state of uncertainty about how a $100m allocation for reef restoration and adaptation would be handled.

Three weeks after the announcement about the money, Mead was trying to get answers about how the grant would be allocated.

“I followed up with the granting agreement, did not really get an answer other than they are working on it over the next month,” Mead wrote on 18 May. “So we will just have to watch this space.

“Once the thing is signed by GBRF we are going to need them to make some definitive statements one way or the other, as everyone is wondering and I don’t want the team to destruct … ”

Emails between staff at the industry, innovation and science department reveal discussion about the “optics” of a long-planned meeting between Cash, Marsden and the chief executive of institute, Paul Hardisty.


Note

* The total Great Barrier Reef Foundation grant was for $487,633,300.

Tuesday 18 September 2018

When a prime minster fails to grasp the basics of climate change policy.....


The Australian Prime Minister for Fossil Fuels and Liberal MP for Cook, Scott Morrison, has been repeatedly insisting since he came to office on 24 August 2018 that Australia is on target to meet its Paris Agreement greenhouse gas emissions targets.

Apparently he is telling journalists that “the business-as-usual model gets us there in a canter”.

Business-as-usual of course includes those cuts to climate change mitigation programs Morrison made as federal treasurer - including no further funding for the Abbott Government's Emissions Reduction Fund (ERF) which has so far failed to purchase enough abatement to outpace Australia's emissions growth.

Those agencies outside of Morrison's ‘magic circle’ are quite frankly contradicting his prediction of success.......

The COAG Energy Security Council’s Energy Security Board expects that Morrison’s refusal to revive National Energy Guarantee legislation will see the electricity sector “fall short of the emissions reduction target of 26% below 2005 levels”.



Annual emissions for the year to December 2017 are estimated to be 533.7 Mt CO2 -e. This represents a 1.5% increase in emissions when compared with the previous year. Over the year to December 2017, there were increases in emissions from the stationary energy (excluding electricity), transport, fugitive emissions, industrial processes and product use, waste and agriculture sectors. These increases were partially offset by a decline in emissions from the electricity sector. The annual increases in stationary energy (excluding electricity) and fugitive emissions were largely driven by an increase in LNG exports. [my yellow highlighting]

The independent Climate Works Australia reported on 6 September 2018:

Australia is not yet on track to meet its emissions reduction targets under the Paris Agreement but there are many opportunities to still get there, according to new research released today.

The ClimateWorks Australia report, Tracking Progress to net zero emissions, found Australia needed to double its emissions reduction progress to achieve the federal government’s target of 26-28 per cent below 2005 levels by 2030, and triple progress to reach net zero emissions by 2050.

The report found Australia’s emissions were 11 per cent below 2005 levels in 2017 but have been steadily increasing since 2013. If Australia sustained the rate of improvement in emissions intensity it had achieved between 2005 and 2013, it could meet the government's 2030 target. But progress has stalled in most sectors and reversed overall. [my yellow highlighting]

Climate Works’ latest report, Tracking progress to net zero emissions: National progress on reducing emissions across the Australian economy and outlook to 2030, was released in September 2018 and although cautiously optimistic it doesn’t suggest that a Morrison Government would be able to just canter towards the commitments given in Paris:

This report uses findings from the Deep Decarbonisation Pathways Project (DDPP) and compares these with the Australian Government's emissions data and projections to examine whether Australia is on track for a net zero pathway and for its first commitments under the Paris Agreement on climate change to reduce emissions by 26 to 28 per cent below 2005 levels by 2030. It assesses recent progress since 2005 and the outlook to 2030.

In common with 179 other countries who ratified the Paris Agreement, Australia has committed to keeping global warming well below 2 degrees, aiming to limit warming to 1.5 degrees and to reach net zero emissions. For developed countries like Australia, a 2 degree limit is generally accepted to mean reaching net zero emissions by 2050 – the majority of states and territories have agreed to this goal. Limiting global warming to well below 2 degrees or 1.5 degrees would require an earlier date.

Australia’s current emissions reduction target is 26 to 28 per cent below 2005 levels by 2030. This is less ambitious than the Climate Change Authority’s recommended target range of 45 to 65 per cent below 2005 levels by 2030 for Australia’s contribution to a 2 degree goal (CCA 2015). To make sure the world is on track, all countries in the Paris Agreement have been asked to consider whether their current target is ambitious enough.

We already know Australia can reach net zero emissions by 2050. The Pathways to Deep Decarbonisation in 2050 (DDPP) report (ClimateWorks et al 2014) identified the emissions reductions potential to put Australia on a pathway to net zero in 2050 while the economy continues to grow…

In 2017 Australia’s emissions were around 11 per cent below 2005 levels. This is an increase from their lowest point in 2013. Overall progress was due to strong reductions in the land sector, while emissions rose in most other sectors. Although there were improvements at the whole of economy level and in some sectors, improvements on average were not equivalent to the pathway to net zero emissions by 2050.

Emissions are higher in buildings, industry and transport than they were in 2005. Emissions are lower in the land sector, with the reduction being larger than increases in other sectors. Electricity emissions fell slightly…

There were times of reasonable emissions intensity improvements in industry and buildings but, as with the electricity sector, these improvements then slowed or reversed. This occurred alongside the repeal of the carbon price and related policies. Energy intensity improved in these sectors, suggesting better energy efficiency, but not at the rate needed for net zero. And in industry, some of this improvement was driven by declines in energy-intensive manufacturing….

Without further policies, Australia will not be on track for the net zero pathway or the Government's 2030 target. ClimateWorks’ research previously identified potential emissions reductions on the net zero pathway and this report shows where this potential is not yet being unlocked. The national process of developing Australia’s long term emissions reduction strategy provides an opportunity to unlock this remaining potential and get on track to achieving net zero emissions by 2050, as do similar processes in many state and territory governments. [my yellow highlighting]

Saturday 1 September 2018

Quote of the Week


“This country would throw itself in the sea if it wasn't already girt by it.”  [Freelance journalist Andrew Stafford’s 17 August 2018 tweeted response to Australian Prime Minister Malcolm Turnbull’s removal of a climate change target from the National Energy Guarantee,


"sitting on the lap of the member for Warringah [Abbott] like a really scary wooden puppet come to life. With the hand of the member for Warringah up his... back. Like Chucky."  [Labor MP for Sydney & Deputy Leader of the Opposition Tanya Plibersek on the subject of Liberal MP for Dickson Peter Dutton, Twitter,  21 August 2018]

Sunday 26 August 2018

Waiting for home care in Australia in 2018


There are now 108,000 older Australians on the waiting list for Home Care Packages.

On this list are individuals who have:
* not yet been approved for home care;
* been previously assessed and approved, but who have not yet been assigned a home care package; or
 * are receiving care at an interim level awaiting assignment of a home care package at their approved level.

Waiting time is calculated from the date of a home care package approval and this is not a an ideal situation, given package approval times range from est. 27 to 98 days and the time taken to approve high level home care packages is now than twelve months - with actual delivery dates occurring at least 12 months later on average.


With more than half the applications for permanent entry into residential aged care taking more than 3 and up to 8 months to be met, this is not going to be a go-to first option in any solution for this lengthy home care waiting list - even if enough older people could be persuaded to give up the last of their independnce and autonomy.

By June 2017 New South Wales had the largest number of persons on the home care waiting lis at 30,685.

Given the high number of residents over 60 years of age in regional areas like the the Northern Rivers, this waiting list gives pause for thought.

Then there is this side effect of the waiting list and home care start dates identified by Leading Age Care Services Australia (LAGSA):

Consumers with unmet needs and unspent funds

LASA has undertaken an extensive review of the disparity that exists in the current release of HCP assignments, noting that there are substantial numbers of consumers on HCPs with either unmet needs or unspent funds . This bimodal distribution of home care package assignments reflects a mismatch between consumer package assignment and a consumer’s current care needs. The mismatch appears to be a function of the extended lapse of time that exists between approval assessments and package assignments. Until this dynamic is sufficiently addressed by Government, LASA expects that providers will be faced with a unique set challenges in 2018 when providing care to HCP consumers. This is likely to increase the need for regular care plan reviews in the context of unmet needs and unspent funds. This dynamic could be considered more closely within the context of developing a single assessment workforce.

Thus far Australian Minister for Aged Care and Liberal MP for Hasluck  Ken Wyatt is offering no insight into federal government thinking on this issue.

Sources:

Monday 20 August 2018

Clarence River Estuary communities need to remain both alert and alarmed as NSW Berejiklian Government seeks to expand exposure to international cruise ship industry


In July 2018 the NSW Berejiklian Coalition Government released the document “NSW Cruise Development Plan” to the delight of the international cruise ship industry.

This plan confirms that Berejiklian ministry - sitting in offices over 670kms south of the small towns of Yamba and Iluka on the banks of the Clarence River estuary - is still pursuing the idea that the Port of Yamba is a potential official cruise ship destination.

The state government also obviously expects that Clarence Valley local government will both accommodate the needs of the plan and contribute to the cost of meeting this aim if it is progressed.

To further the Berejiklian Government’s aim to make as many small ports or undeveloped harbours/inlets capable of use by cruise ships the NSW Cruise Development Plan states that:

A regulatory framework that fosters the competitiveness of ports, encourages the expansion of the tourism sector, minimises environmental impacts, protects the community, and supports jobs growth is required for the NSW cruise industry.
National regulatory barriers currently inhibit the cruise industry, including the small expedition and luxury cruise market’s, access to NSW coastal ports.

Differences in regulatory requirements between states also restricts the freedom of cruise liners to set national itineraries that take advantage of regional ports.
The NSW Government will continue to lead discussions with the other States, Territories and the Commonwealth on removing regulatory barriers that limit cruise ship growth potential.

Action: The NSW Government will investigate opportunities to remove regulatory barriers to entry for emerging cruise markets, including the expedition cruise market, and will seek an inter-jurisdictional policy position with other governments. [my yellow highlighting]

What the Liberal-Nationals government in faraway Sydney considers as “regulatory barriers” may not be what the people of the Lower Clarence River consider as impediments which should be removed.


They are in place for good reason and any weakening of these regulations has the potential to affect the environmental sustainability of an ancient, healthy and highly productive estuary system which is the largest in south-east Australia and, whose waters are covered by Yaegl Native Title.

Facts estuary communities may need to continually press upon a state government wrapped up as it is in a cosy relationship with the international cruise ship industry.

Sunday 19 August 2018

Once more a Coalition federal government is promising savings on household electricity bills


“Throughout the 1980s, '90s, and most of the 2000s, electricity prices tracked fairly closely to general consumer price trends. In the past decade, however, electricity has shot off the charts. Since 2008 power prices have risen 117 per cent, more than four times the average price increase across sectors.” [ABC News, 18 July  2018]

All three major NSW political parties - Liberal, Nationals and Labor - along with their federal counterparts drank the Kool-Aid when it came to the alleged desirability of privatising state assets in the electricity and gas sectors of energy supply.

Here is a brief outline of the how and why...... 

DECEMBER 2010


"The completion of this first tranche of the energy reform process meets the government's objectives – we have exited electricity retailing, we have created a competitive market structure approved by the ACCC and we have received a strong financial return for the taxpayers of NSW,” he [NSW Treasurer] said…..

Earlier, the shadow treasurer, Mike Baird, said: "Whatever they finally announce, it is clear from the ongoing speculation that the receipts will be at the lower end of the $5 billion to $7 billion range, which is about half what these assets are worth – and that is before you take off the $2.3 billion in inducements for the new coalmine needed to get the deal away.

'The end result is billions of dollars lost forever."

A UBS analyst, David Leitch, said: "NSW households are in for higher electricity tariffs and more people at their front door, trying to get them to change electricity supplier."

NOVEMBER 2013


"When this bill is passed, this Government estimates that power prices will go down by 9 per cent, gas prices will go down by 7 per cent, and that means that the average power bill will be $200 a year lower and the average gas bill will be $70 a year lower," Mr Abbott said on October 15.

JUNE 2014


As of 12 May 2017, two government assets have been privatised in 2017. The most recent privatisation is the 99-year lease of a 50.4% share of Endeavour Energy. On 11 May 2017, the NSW [Berejiklian Coalition] Government announced that a consortium led by Macquarie Group's infrastructure arm had been successful in securing the tender for a price of $7.6 billion. Along with Ausgrid and Transgrid, the lease of Endeavour Energy represents the final of the three “poles and wires” sales – a key policy of the Liberal/National government in the 2015 State election. Announcing the sale, NSW Treasury stated:

The NSW Government will retain a 49.6 per cent interest in Endeavour Energy and will have ongoing influence over operations as lessor, licensor and as safety and reliability regulator.

June 2017


Electricity is now management heavy with a blow out in the number of managers relative to other workers. In addition electricity now employs an army of sales and marketing and other workers who do not actually make electricity. In addition the reforms seemed to encourage profit gauging on the part of companies in the industry who are able to inflate the asset base used in calculating the permitted return on assets. More than half the asset base appears to be ‘goodwill’ and retained earnings. There is a weird circular process in which high rates of return are capitalised in ‘goodwill’ and other fictitious or notional items while high profits guarantee high retained earnings which also feed into the asset base. In that way the unproductive capital base is allowed to increase and we are charged for capital that has no real function in producing electricity….

A host of factors have been blamed for the increase in electricity prices relative to other prices but we would point out that the main departure from the rest of the price index happened post privatisation and corporatisation.

JULY 2017


Origin, EnergyAustralia and AGL have all announced price increases for electricity and gas starting from July 1….

In NSW, residential EnergyAustralia customers will see electricity prices increase by up to 19.6 per cent. Origin Energy customers will get a 16.1 per cent rise.

DECEMBER 2017


The key supply chain cost components examined in the report include wholesale electricity purchase costs, regulated network costs and environmental policy costs.
Annual electricity prices for the representative consumer on a market offer in New South Wales:

* increased by 10.2 per cent from 2016-17 to 2017-18 due to higher wholesale electricity costs, driven by the retirement of Northern and Hazelwood generators and increasing gas prices

* are expected to decrease by an annual average of 6.6 per cent in 2018-19 and 2019-20. The expected decreases are largely attributable to decreases in wholesale electricity costs driven by expected new generation (approximately 4,100 MW across the NEM) and the return to service of the Swanbank E generator (385 MW in Queensland). In addition, in NSW, regulated network costs are uncertain in the two years to June 2020 due to the AER being required to remake revenue determinations for the NSW distribution network providers for the 2014-19 regulatory control period.

JANUARY 2018


The most significant price rises were electricity, up 12.4 per cent, fuel up 10.4 per cent, domestic holiday travel up 6.3 per cent and fruit up 9.3 per cent. 

Across New South Wales, we found theaverage annual electricity bill to be just over $1,667. However, we found that bill-payers aged in their 40s reported the highest average bills in NSW at $1,911.76. Those aged 70 or over reported the lowest average bills at $1,466.40.

JULY 2018


This was comprised of $120 due to the [national energy] guarantee and $280 due to new investment in renewable energy that was already planned, mainly because of the Renewable Energy Target, which will run to 2030….

The ESB [Energy Security Board**] proposal increases the annual average saving to $550 on 2018 prices, of which $150 is due to the guarantee and $400 due to renewable energy.


AUGUST 2018


After reading the National Energy Guarantee Consultation Paper as well as the 1 August 2018 Final Detailed Design and listening to statements made by the Turnbull Government, I personally find it hard to believe this change in federal government policy will significantly limit the rate of increases to household energy costs over time when this is based on an assumption that the market will respond by lowering prices across the Australian wholesale and retail sectors of energy supply.

Talk of money 'saved' by households is illusory as It will certainly see no reduction in the actual amounts listed on 2019-20 household electricity and gas bills once this guarantee comes into effect.

*KPMG Economics, November 2017, NEG and Electricity Pricing

Network charges represent on average about half of the electricity supply chain costs, with generation and retail costs (combined into the ‘competitive market’ category) accounting for 42%, and environment policies adding the remaining 8%, based on the latest AEMC Electricity Price Trend report.

The make up of the total average retail cost is shown in Chart 6 which reveals the single largest component of the price of electricity is distribution costs, which represented about 40% of the average cost of electricity. Over the AEMC forecast period to 2018/19, these costs are still expected to represent by far the largest component of the electricity cost stack, albeit fractionally lower in a couple of years’ time.

The next largest component is the wholesale price of electricity, which in 2015/16 represented about 28%. Under the AEMC Base Case scenario – which includes the retirement of the brown coal fired Hazelwood Power station in Victoria – this cost component had been anticipated to rise steadily over the forecast period to represent about 30% of the cost of electricity by 2018/19.

As shown in Chart 7 below, these three jurisdictions experienced higher than anticipated wholesale electricity costs in the order of between 30% and 80% when compared to original forecasts for FY2016/17. When considered on a weighted average basis, using the same methodology applied by the AEMC to estimate the values for the National Summary, wholesale electricity costs have therefore been about 17% to 20% higher than anticipated.
This increase in wholesale electricity costs pushed the bundled cost of electricity to rise by about 5% higher than anticipated by the AEMC, and shifted the relative importance of wholesale prices in the cost stack from about 28% to 31%.


Formed out of the Independent Review into the Future Security of the National Electricity Market (the Finkel Review), the Energy Security Board comprises an independent chair and deputy chair along with the expert heads of the Australian Energy Market Commission (AEMC), the Australian Energy Regulator (AER) and the Australian Energy Market Operator (AEMO).

The current Board membership is Chair Dr Kerry Schott AO,  Deputy Chair Clare Savage, Australian Energy Market Commission Chair John Pierce, Australian Energy Market Operator Chief Executive Audrey Zibelman, and the Chair of the Australian Energy Regulator Paula Conboy.