The Daily Telegraph's blatantly false Page One headline of 18 March 2013
Oh, the author of The Tele's carbon collapse fiction is our friend Steve Lewis, he of Ozcar and Ashby fame.
Mr Denmore @MrDenmore
The Tele's source for the 'carbon collapse' are unnamed 'experts'. Odd as the share market is at a 4-year high and business confidence is up
Yesterday morning I happened on these two tweets and this snapshot on Twitter.
Given New Limited's involvement in the current hysteria surrounding the Federal Government's response to the 2011 and 2012 independent media reviews, I went to that day's issue of The Daily Telegraph and this is what I found.
The Daily Telegraph's Steve Lewis and Phil Jacob are asserting that:
New data from the corporate regulator reveals insolvencies have hit a record high over the past 12 months, led by widespread failures in manufacturing and construction, which accounted for almost one-fifth of collapses.
The Australian Securities & Investments Commission reports there were 10,632 company collapses for the 12 months to March 1 - averaging 886 a month - with the number of firms being placed in administration more than 12 per cent higher than during the global financial crisis.
While the high Australian dollar is seen as the main factor behind manufacturing closures, experts say the carbon tax is adding to increasing cost burdens for many firms struggling to stay afloat.
The first problem with this statement is that it is plain wrong.
The "10,632" figure does not come from a twelve month period ending on 1 March this year - this total is for the 2012 calendar year. A clue for these two journalists might have been found in the fact that the data set was released on 18 February 2013.
What The Daily Telegraph journalists also do not say is that in the total figure quoted almost half of these external administration/insolvencies occurred before the introduction of the 'cabon tax' and, that prior to the tax, in February-March 2012 there were 2,137 insolvencies which made this the highest combined figure for two consecutive months in a data set which begins in 1996.
As for the more than one business is going the wall every hour in Australia found in text in the snapshot above - I suggest that The Daily Telegraph invest in new batteries
for the office calculator as that Page One assertion is wrong on so many levels.
So what else in that Lewis-Jacob article is open to question?
Well, let me start with Grain Products Australia the country’s only manufacturer of caramel and dextrin and one of only two wheat starch and gluten manufacturers. A company in liquidation since 11 March this year and one the journalists try hard to mold into a carbon tax victim.
Over six months before the introduction of the carbon price, this company went into voluntary administration citing the high cost of wheat and what were then solely state electricity charges.
That leaves Penrice Soda Holdings the only Australian soda ash manufacturer. It was quoted by the Lewis-Jacob team as saying that the reason it was ceasing local raw material quarrying and importing its soda ash was that the carbon tax was effectively the straw that broke the camel's back.
However, a little basic fact checking would have shown that last February it told its shareholders and the Australian Stock Exchange that the factory closure was reflecting
deteriorating demand conditions in soda ash and quarry material markets as well as impacts from a high Australian dollar. There was not one word about the carbon tax.
Finally, the biggest whopper these two journalists told about the business sector in 2012 which is this line; with the number of firms being placed in administration more than 12 per cent higher than during the global financial crisis.
The Global Financial Crisis began in 2007-08 and did not lose momentum until 2009-10. Even the most mathematically challenged News Limited employee would realise that the business external administration/insolvency totals for those years far exceed the 2012 total which The Daily Telegraph is currently treating as an end of days event.
So what will the Australian Press Council do about a newspaper which so distorts the facts and journalists whom I'm told now know that they have based their 10,632 company collapses on a dodgy premise?
Why its twenty-three members will pretend that they never saw or heard of this article - unless a member of the public makes a formal complaint.
UPDATE:
The Leader of the Opposition makes the mistake of relying on the Lewis-Jacob article during the House of Representatives Question Time on 18 March 2013.
A reliance the Minister for Industry and Innovation and Minister for Climate Change and Energy Efficiency, Greg Combet, notes during that same Question Time:
...over the last couple of days the Leader of the Opposition, the New South Wales government and the Daily Telegraph have been misleading the public yet again about the impact of carbon pricing. Yesterday it was a false claim about electricity prices in New South Wales.
Today the Daily Telegraph is back with ridiculous claims about economic catastrophe, repeated here today in the very first question by the Leader of the Opposition—there seems to be some commonality of approach that we are witnessing. The Telegraph story today takes the misuse of statistics, hysterical headlines and distortion of facts to levels that would have done Pravda proud during the height of the Cold War.
A reliance the Minister for Industry and Innovation and Minister for Climate Change and Energy Efficiency, Greg Combet, notes during that same Question Time:
...over the last couple of days the Leader of the Opposition, the New South Wales government and the Daily Telegraph have been misleading the public yet again about the impact of carbon pricing. Yesterday it was a false claim about electricity prices in New South Wales.
Today the Daily Telegraph is back with ridiculous claims about economic catastrophe, repeated here today in the very first question by the Leader of the Opposition—there seems to be some commonality of approach that we are witnessing. The Telegraph story today takes the misuse of statistics, hysterical headlines and distortion of facts to levels that would have done Pravda proud during the height of the Cold War.
