How hard will Tony Abbott run against the Finkel plan?



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The government faces a hard internal sell on the Finkel plan, not least to Tony Abbott.
Mick Tsikas/AAP

Michelle Grattan, University of Canberra

Bedding down an energy security policy based broadly on the Finkel model is now crucial for Malcolm Turnbull. But the issue will also test Tony Abbott’s judgement and influence, in what has long been a marquee area of difference between the two men.

Abbott is poking and prodding at the Finkel plan, raising questions and doubts about it.

He told 2GB’s Ray Hadley on Monday that two criteria were essential when judging the chief scientist’s proposal for a clean energy target (CET) that, his report says, “will encourage new low emissions generation [below a threshold level of carbon dioxide per megawatt hour] into the market in a technology neutral fashion”.

Abbott’s criteria were:

  • Did Finkel’s scheme take the pressure off power prices?

  • Did it allow coal to continue?

“My anxiety, listening to reports of the report and this statement that they’re going to reward clean or low emissions fuels while not punishing high emissions fuels, is that it’s going to be a magic pudding,” Abbott said.

“Now we all know that there is no such thing as a magic pudding. And if you are rewarding one type of energy, inevitably that money has got to come from somewhere – either from consumers or taxpayers”.

“And if it’s from consumers, well it’s effectively a tax on coal and that’s the last thing we want”.

For Abbott, the magic word “tax” conjures up his glory days of fighting the Labor government’s “carbon tax”.

Labels can make a lot of difference. As Abbott’s former chief-of-staff Peta Credlin said earlier this year of the carbon tax: “It wasn’t a carbon tax, as you know – it was many other things in nomenclature terms. We made it a carbon tax. We made it a fight about the hip pocket and not about the environment. That was brutal retail politics.”

The CET is not a “tax”, and Finkel argues that consumers will be better off than if the status quo continues – a status quo that businesses and most other stakeholders consider not to be an option.

But the scheme would disadvantage coal relative to renewables – and the extent of the disadvantage will be crucial in the debate within Coalition ranks.

In a softening up exercise, Energy Minister Josh Frydenberg lobbied backbenchers individually about the Finkel plan before Friday’s release. Government sources say the feedback is good and believe there is a strong majority that believes Finkel offers a potential way forward.

But the chairman of the government’s backbench environment and energy committee, Craig Kelly, a hardliner, wants more work done “by a couple of other independent organisations”.

In the end, the argument may come down to how “Finkel” is interpreted and the precise form in which it would be translated into practice.

Tuesday’s Coalition meeting is set to provide the first indication of whether the government’s optimism about the positive reception of the plan is solidly based.

The Nationals are vital, given their passion for coal and their original role in mobilising Coalition feeling against an emissions trading scheme. Their general position is they can live with the Finkel framework but it will be a matter of the detail, notably the threshold, with its implications for coal.

Deputy Prime Minister Barnaby Joyce is on board, based on his pragmatic assessment that this is better than possible future alternatives. He said on Friday: “I think that if we don’t bed this down, you can see what’s happening in England or anywhere else. If you lose the election, you’re going to get a worse outcome.

“So I’d rather bed down an outcome that secures coal miners, that secures coal-fired power, because I strongly believe in its capacity to provide baseload power that fulfils our obligations in international treaties.

“If we can do that and make sure Mr and Mrs Smith get cheaper power, then of course I’m going to consider that.”

Outspoken Nationals George Christensen is waiting on more information. “I’ve got some mixed thoughts,” he says of Finkel’s plan, and wants to talk further to Frydenberg.

“I’m comfortable with measures to bring down electricity prices. But I’m not comfortable with anything like an emissions trading scheme, or a derivative thereof” – and he is not sure whether this proposal is a “derivative”.

The position of the Liberal critics will be much weakened if the Nationals get behind the Finkel plan.

Abbott will have to make a call about the mood of his colleagues and decide how hard to go on this issue in coming weeks. This area has been a signature one for him and his weakness would be highlighted if he could only attract a handful of naysayers.

The ConversationObviously, the stakes are a great deal higher for Turnbull. If things went badly for Turnbull in his pursuit of the Finkel option, it would be a major disaster for him and his government. When it comes to emissions policy, Turnbull is always walking on the edge of a sinkhole.

https://www.podbean.com/media/player/icjdu-6b9a25?from=site&skin=1&share=1&fonts=Helvetica&auto=0&download=0

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

$89b shipbuilding plan is a major step forward – but sovereignty remains a problem


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The naval shipbuilding plan is undoubtedly a major step forward for industrial capability in Australia.
AAP/David Mariuz

Graeme Dunk, Australian National University

Australia’s long-awaited naval shipbuilding plan, released earlier this week, claims it is a national endeavour: The Conversation

… larger and more complex than the Snowy Mountains Hydro-Electric Scheme and the National Broadband Network.

Irrespective of this particular claim’s validity, the investment of A$89 billion for nine new frigates, 12 submarines and 12 offshore patrol vessels is a substantial commitment to Australia’s security. The plan is a comprehensive approach to establishing a continuous program for building these platforms in Australia.

Apart from the future introduction of these and other vessels into service, one of the plan’s key outcomes is a “sovereign Australian capability to deliver affordable and achievable naval shipbuilding and sustainment”. The development of a sovereign capability is stated as “the government’s clear priority”.

But what is sovereignty in this context? And is it attainable from the naval shipbuilding plan?

Two clear weaknesses

The plan has two interconnected weaknesses when it comes to sovereignty.

First, the Australian defence industry environment is dominated by companies whose parentage and ultimate control rest offshore. This is not necessarily a bad thing. But given the shipbuilding plan’s focus on Australian jobs and resources, it is a reality that needs confronting.

To that end one might have expected to see, both in this document and in earlier ones, a definition of Australia’s defence industry – what it is and, importantly, what it is not.

The UK’s 2005 description of its defence industry embraces the combination of local and offshore companies contributing to defence outcomes in terms of:

… where the technology is created, where the skills and intellectual property reside, where the jobs are created and sustained, and where the investment is made.

A similar definition for Australia would provide a foundation for sovereignty in the shipbuilding environment to be properly assessed. The plan suggests the Australian subsidiaries of offshore companies will be considered as sovereign without discussing how local control might be maintained, and how Australian sensitivities might be tackled.

The proposed definition for defence industry also highlights the second weakness of the shipbuilding plan: it is focused on building and sustaining the structural component (the “float” and “move” aspects), rather than the total capability the ship or submarine represents.

The lists of skills cited as necessary are those primarily associated with building and sustaining the structure. The shipbuilding plan gives scant coverage to the important combat system and weapons elements upon which the war-fighting capability rests.

The plan does not address the industrial capabilities necessary for the local maintenance and improvement of these ships. Access to the detailed design information for the combat and sensor systems in particular is required so that such systems can be upgraded locally if required. An offshore equipment supplier may not give the same priority to our needs.

The plan for naval shipbuilding in Australia says it will source many systems of the future frigate and other naval platforms from the US. However, the closest it gets to recognition of this reality in the context of sovereignty is that:

Australia’s alliance with the US, and the access to advanced technology and information it provides, will remain critical.

The plan therefore implies that sovereignty is sought for the “float” and “move” aspects of the naval capabilities, but not necessarily for the important “fight” aspects. This means the systems elements of ships and submarines will be tackled in some other context – outside the naval shipbuilding plan.

More than just ‘doing stuff’

The naval shipbuilding plan is undoubtedly a major step forward for industrial capability in Australia.

A successful implementation will provide significant benefits for the Navy in terms of force structure, for industry in terms of a long-term enterprise upon which to grow overall capability and capacity, for innovation, for workers in terms of continuity of effort, and for the development of shipbuilding-related STEM skills. These are all worthy outcomes.

But sovereignty is more than just “doing stuff” in the country.

If the plan really wanted to tackle sovereignty, it should have provided a foundation on which aspects of industrial and operational sovereignty could be properly assessed, prioritised and managed. It would also have addressed the systems aspects of ships, rather than just the structure.

Graeme Dunk, PhD Candidate, Australian National University

This article was originally published on The Conversation. Read the original article.

Turnbull unveils Snowy plan for pumped hydro, costing billions



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The Snowy Hydro scheme already provides back-up energy to NSW and Victoria.
AAP

Michelle Grattan, University of Canberra

In its latest move on energy policy, the Turnbull government has unveiled a plan to boost generation from the Snowy Hydro scheme by 50%. The Conversation

The government says the expansion, which it has labelled the Snowy Mountains Scheme 2.0, would add 2,000 megawatts of renewable energy to the National Electricity Market. This would be enough to power 500,000 homes.

Claiming the upgrading would be an “electricity game-changer”, Prime Minister Malcolm Turnbull said that in one hour it would be able to produce 20 times the 100 megawatt-hours expected from the battery proposed this week by the South Australian government, but would deliver it constantly for almost a week.

Turnbull flew to the Snowy early Thursday to formally announce the plan. The commonwealth is a minority shareholder in the Snowy Hydro, with a 13% stake. New South Wales and Victoria have 58% and 29% stakes respectively.

The government, through the Australian Renewable Energy Agency (ARENA), would examine several sites that could support large-scale pumped hydroelectric energy storage in the area, Turnbull said.

Energy Minister Josh Frydenberg said the cost would run into “billions of dollars”. It is being suggested it would be around A$2 billion. Frydenberg avoided being tied down on when it would be completed.

He said three new tunnels were being looked at, stretching 27 kilometres for the pumped hydro-facility. It would not involve new dams, but connect existing reservoirs and recycle water.

The plan had the potential to ensure there would be the needed renewable energy supply for those on the east coast at times of peak demand, Frydenberg said.

Tony Wood, energy program director at the Grattan Institute, cautioned that the plan would involve technical and economic issues, including whether it could make money, and to what extent it could contribute to solving the short-term power crisis.

“This isn’t some sort of magic panacea,” Wood told the ABC. Some hard-headed thinking was needed on what it would do and how it would work.

Turnbull said: “The unprecedented expansion will help make renewables reliable, filling in holes caused by intermittent supply and generator outages.

“It will enable greater energy efficiency and help stabilise electricity supply into the future,” he said – adding that this would ultimately mean cheaper power prices.

He said successive governments at all levels had failed to put in place the needed storage to ensure reliable supply.

“We are making energy storage infrastructure a critical priority to ensure better integration of wind and solar into the energy market and more efficient use of conventional power.”

Turnbull said an “all-of-the-above” approach, including hydro, solar, coal and gas, was critical to future energy supplies.

Snowy Hydro already provided back-up energy to NSW and Victoria and could extend to South Australia when expanded, he said. The expansion would have no impact on the supply of irrigation water to NSW, South Australia and Queensland.

The feasibility study for the expansion is expected to be completed before the end of this year, with construction starting soon after, he said.

https://www.podbean.com/media/player/kwxda-68af74?from=yiiadmin

Michelle Grattan, Professorial Fellow, University of Canberra

This article was originally published on The Conversation. Read the original article.

Hundreds of Asylum-Seekers Are on Hunger Strike Over Australia’s Resettlement Plan


TIME

Nearly 700 detainees, or almost two-thirds of those held in an Australian offshore detention center on Papua New Guinea’s (PNG) Manus Island, are on hunger strike to protest Canberra’s plan to permanently resettle them on the island.

The hunger strike comes in the wake of a vow by Australia’s recently-appointed Immigration Minister, Peter Dutton, that Manus Island detainees would “never arrive in Australia,” reports the Sydney Morning Herald.

During the past week, hundreds of detainees have abstained from food, and some from water, over the government’s plan to move them to the nearby town of Lorengau. As many as 14 have sown their lips together, the Herald says.

Visiting Australian medical staff and refugee rights groups say that health facilities on Manus Island center are not equipped to handle the hunger strike.

“They don’t have the capacity to handle a hunger strike of even one tenth of that size,”…

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Nigeria: Plan to Grant Boko Haram Amnesty


The link below is to an article that reports on plans in Nigeria to grant Boko Haram amnesty, which I have to say I find difficult to accept.

For more visit:
http://allafrica.com/stories/201304050714.html

China: Latest Persecution News


The link below is to an article concerning China’s plan to destroy the house church movement.

For more visit:
http://www.christianitytoday.com/ct/2013/february-web-only/how-china-plans-to-wipe-out-house-churches.html

Syria: UN Transition Plan Widely Rejected In Syria


Syria: Transition Plan Agreed To, But Not By Those Involved in Conflict