Friday 29 May 2020

QUESTION OF THE DAY: Will Scotty From Marketing's pet National COVID-19 Coordination Commission recommend lifting the Coal Seam Gas Moratorium in place across the NSW Northern Rivers region?


"Nev Power: The Prime Minister 'rang me ... and said your country needs you.' "  [Financial Review, 3 April 2020]


On 20 March 2020 Australian Prime Minister & Liberal MP for Cook Scott Morrison created the National COVID-19 Coordination Commission (NCCC) to “ coordinate advice to the Australian Government on actions to anticipate and mitigate the economic and social impacts of the global COVID-19 pandemic” and “advise the Prime Minister on all non-health aspects of the pandemic response”.

This is a list of NCCC commission members and key staff for the period 23 March to 22 September 2020 with remuneration for their services where known:

Chairman
Neville Power, Deputy Chairman of Strike Energy Ltd an oil and gas exploration company – remuneration by PM&C contract $294,079.50. Power has announced he is temporarily stepping aside from his position at Strike Energy to avoid perceptions of conflict of interest. However, he appears to be retaining 12,612,885 fully paid Strike Energy shares (worth in the vicinity of $2.4 milllion) & options on 6 million more held by his own Myube discretionary investment trust.

Deputy Chairman
David Thodey, Chairman CSIRO – paid expenses only

Commissioners
Greg Combet, consultant, Chairman of IFM Investors and Industry Super Australia - remuneration by PM&C contract $118,800
Jane Halton, board member ANZ, Clayton Utz, Crown Resorts, Australian Strategic Policy Institute, US Institute of Health Metrics and Evaluation and
chairman of the Coalition for Epidemic Preparedness Innovations, COTA, Crown Sydney and Vault Systems - remuneration by PM&C contract $118,800
Paul Little, property developer, Chairman and Founder of the Little Group, Chairman of the Australian Grand Prix Corporation and Skalata Ventures - remuneration by PM&C contract $108,000 for 2 days per week
Catherine Tanna, Managing Director of EnergyAustralia, board member Reserve Bank of Australia and Business Council of Australia – remuneration by PM&C contract $54,000 for 1 day per week

Key Staff
Peter Harris, public policy adviser, CEO of NCCC – remuneration N/K
Executive Assistant to Chairman NCCC – remuneration by PM&C contract $73,000 paid into the same Myube discretionary investment trust as the remuneration received by NCCC Chairman.

Advisors
Andrew N. Liveris, special advisor to NCCC, board member IBM, Worley Parsons, Saudi Aramco, on advisory board of Sumitomo Mitsui Banking Corporation and NEOM, controversial former Chairman & CEO of Dow Chemical and Trump supporter– remuneration N/K

For the more than $885,479 in taxpayer dollars spent on this commission over a six month period, Australia gets a website of sorts pmc.gov.au/nccc along with a Twitter account NCCCgovau and, what is shaping up to be a lack of transparency and accountability concerning advice this commission gives behind closed doors to government.

According to The Guardian on 21 May 2020:

A leaked draft report by a manufacturing taskforce advising the National Covid-19 Coordination Commission (NCCC) recommends the Morrison government make sweeping changes to “create the market” for gas and build fossil fuel infrastructure that would operate for decades.

Its vision includes Canberra underwriting an increased national gas supply, government agencies partnering with companies to accelerate development of new fields such as the Northern Territory’s vast Beetaloo Basin, and states introducing subsidy schemes for gas-fired power plants.

It says the federal government should help develop gas pipelines between eastern states and the north, and potentially a $6bn trans-Australian pipeline between the east and west, by either taking an equity position, minority share or underwriting investments.

The taskforce, headed by….Saudi Aramco board member Andrew Liveris, positions lower-cost gas as the answer to building a transformed manufacturing sector that it says could support at least 85,000 direct jobs, and hundreds of thousands more indirectly.

But it does not consider alternatives to gas, or what happens if greenhouse gas emissions are cut as promised under the 2015 Paris climate agreement. Gas is usually described as having half the emissions of coal when burned, though recent studies have suggested it could be more.

The Liveris report does not mention climate change, Australia’s emissions reduction targets or the financial risk, flagged by institutions in Australia and overseas, of investing in fossil fuel as emissions are cut.

While several assessments have found renewable energy backed by storage is now the cheapest option for new electricity generation, the report says gas is “key to driving down electricity cost and improving investment in globally competitive advanced industry”.

Its focus is consistent with the NCCC chairman, Nev Power, a former Fortescue Metals chief and current board member at gas company Strike Energy, who has said in interviews that cheap gas would be critical to Australia’s future. Gas has been strongly backed by the prime minister, Scott Morrison, and the energy and emissions reduction minister, Angus Taylor, who has argued for a gas-fired recovery from the pandemic.

According to Friends of the Earth Australia the leaked document also suggests lifting the coal seam gas moratorium in New South Wales, which is an issue I’m sure the Northern Rivers region will be keeping a close eye on. 

UPDATE 

The Guardian, 5 June 2020: 

Officials from Scott Morrison’s department are refusing to release conflict of interest disclosures from members of the National Covid-19 Coordination Commission so they can be scrutinised by the public because the declarations are provided “in confidence”. 

The departmental pushback has come in responses to questions on-notice from the Senate committee examining the government’s response to the pandemic. 

Controversy has been escalating about the potential for conflicts of interest among the commissioners handpicked by the prime minister to provide advice at the height of the coronavirus crisis. 

The high-powered coordination commission, headed by the former Fortescue Metals chief Nev Power, has a broad remit, advising the government on all non-health aspects of its pandemic response. 

But concerns have been raised about the lack of transparency of the group’s deliberations, and the absence of a conventional governance framework for a taxpayer-funded enterprise. 

The NCCC has a budget of more than $5m.... 

The Guardian, 3 May 2020:

When the Daily Telegraph reported last week that a fertiliser plant in Narrabri being advanced by a West Australian businessman had topped the list of the projects being promoted by the National Covid Coordination Commission, there was some surprise. 

Vikas Rambal and Perdaman Chemicals and Fertilisers are not exactly household names, and the controversial Narrabri coal seam gas project – which would provide the cheap gas that the fertiliser project depends on – is yet to be approved by the New South Wales government.... 

Rambal has not yet sought planning approval of the $1.9bn project and the only tangible signs are press releases promising 700 jobs and a non-binding agreement with the coal seam gas project’s owner, Santos..... 

The Daily Telegraph, 24 April 2020:

Mr Rambal’s plant would create up to 800 jobs during construction and 70 to 80 permanent­ roles in Narrabri, supplying farmers in a 300km radius. “It’s a huge project,”  Mr Rambal, who is also advancing a $4.5 billion fertiliser plant in WA, told The Daily Telegraph. 

He said Mr Power’s Commission could help by picking up the phone to politicians to remove roadblocks and speed up approvals. 

Mr Taylor said making more fertiliser was a “cracking opportunity” for Australia and would help achieve the government’s goal of growing agriculture to a $100 billion-a-year industry by 2030. 

He said he was focused on making more gas available. 

“I like to think of the other side of COVID-19 as being a gas-fired recovery,” Mr Taylor said. 

“We want to see the NSW government get on with (the approvals process for the Santos project).”  In January, Premier Gladys Berejiklian said she wanted a final decision on the proposal by June 30. 

That now looks unlikely. The Independent Planning Commission is yet to receive a referral from the NSW Department of Planning. The IPC will take 12 weeks to make its ruling. 

It is unclear if the COVID-19 Commission is now attempting to hurry up the Department­ of Planning.....


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