At one point the largest mining company in Australia, of anything, in terms of the quantity mined was the Victorian government via the SECV coal mines.If the government is going to put taxpayers money into coal mines or generators then why doesn't it just buy said assets which would be going dirt cheap, and avoid the same problem with the next owner and the next....
At one point the largest mining company in Australia, of anything, in terms of the quantity mined was the Victorian government via the SECV coal mines.
The Vic government also had another, completely separate, operation too many years ago which was simply known as the State Coal Mine.
So it’s been done before......
Really? Isn't this the same government that effectively legislated Clive Palmer out of a settlement over a $30billion dispute over the Balmoral South Iron ore project between Palmers Minerology and Citic.However, Mr Johnston argued their problems were inherently private commercial matters, and it would be inappropriate — even unlawful — for the state to intervene.
Because the Govt doesnt want to employ people, it is easier for the private sector to offload workers than the Govt, the private sector dont get the media backlashIf the government is going to put taxpayers money into coal mines or generators then why doesn't it just buy said assets which would be going dirt cheap, and avoid the same problem with the next owner and the next....
Because the Govt doesnt want to employ people, it is easier for the private sector to offload workers than the Govt, the private sector dont get the media backlash
Yep privatisation is like globalisation, it works great until it doesn't, it works while the private sector is making money and the public are getting what they want, once one of those fails the system collapses.Well that just shows lack of guts. As Smurf says it's been done before, the hated Daniel Andrews is heading towards State ownership of assets again, so is the NSW Opposition, Qld didn't sell them off in the first place.
The Libs may not want the odium of employing people, but the 'free market' has clearly failed, so what's left ?
When it comes to energy, I think Tasmania might have the right model there.Because the Govt doesnt want to employ people, it is easier for the private sector to offload workers than the Govt, the private sector dont get the media backlash
So much for the liberal party being the champion of the free market.Changes to the Energy and Utilities Administration law passed on Wednesday give his Energy Minister the power to set maximum prices, decide who coal will be sold to, and control the use of the coal, for any period. In other words, the government can seize control of the whole market.
This isn’t a small industry, either. NSW’s 22 open-cut and 18 underground coal mines produce 236 million tonnes a year and employ 23,000 people, according to research company Coal Services. One of the bigger miners, Sydney-based Whitehaven Coal, is worth almost $10 billion.
The law’s self-declared objective “is to put downward pressure on electricity prices during coal market price emergencies by allowing for the giving of directions in relation to the price and domestic supply of coal used to generate energy”.
All the premier has to do to trigger the powers is to declare an emergency if he believes coal price increases – even if merely projected – or shortages “will adversely affect members of the community”.
Any increase in coal prices will hurt someone, which means the test can probably be met at almost any time. Neither the premier, nor energy minister, is required to consult with any organisation before acting, such as the Australian Competition and Consumer Commission, which regulates competition policy.
Nor do they have to “comply with any requirement of procedural fairness”, according to the law, which would make court challenges to their decisions more difficult.
The penalty for not complying is at least $10 million, although applies to companies not people. If the government doesn’t believe the coal companies are co-operating, it can send in a specially appointed regulator – a coal cop – who has the power to enter offices and demand documents.
NSW Minerals Council CEO Stephen Galilee said: “The bill is unnecessarily heavy-handed and ignores due process.”
The changes were introduced by Perrottet into a specially recalled session of parliament on Wednesday as part of a deal with the federal government to also cap gas prices in an attempt to moderate power price increases.
They were passed by the upper house, with the support of the Labor Party, just before 5pm.
So much for the liberal party being the champion of the free market.
The biggest worry from my perspective is that little wormy creep Matt Kean will have a significant say in this.
Beware the autocratic controlling governments of any political persuasion.
Why do governments sell these things off in the first place?I hear what you are saying about government control, but electricity is an essential service so businesses in that sector can't expect to have free and unfettered control over what they provide. There was a time when State governments owned coal mines and power generators and this worked ok and prices were low and some think that's what it should go back to.
Why do governments sell these things off in the first place?
Just about every western country did it, including the U.K, it was a bit like globalisation, it seemed like a great idea at the time.Well, basically because Peter Costello told the States that they don't get any money for new infrastructure unless you sell the old stuff.
Some dId, some did not.
Having witnessed the debate since the 1990's, my observation is there's a cultural problem in Australia generally when it comes to leadership.Why do governments sell these things off in the first place?
A lot boils back to the fact Australia has an inherent inferiority complex, we have punched well above our weight, because we have been a very adaptable, ingenious, clever and unique relying on our wits and ingenuity.That culture leads to a tendency to copy things and when it comes to our energy policy, well practically every aspect of it was taken from the UK. Ideology, market design and so on that's where the primary influence came from for all of it.
Now suffice to say the same approach to leadership also extends to business in general, including listed companies. Some actual innovation and leadership yes but a lot of "cut & paste" in practice especially in big business.
There's really two big problems with anything hydro from a private sector investment perspective.Obviously Genex renewables, isn't a screaming buy, or maybe the reality isn't as attractive as the dream, who knows.
Which brings us to the Origin Energy buyout, is someone trying to wedge the Australian public? OMG. ?There's really two big problems with anything hydro from a private sector investment perspective.
First is the extremely long timeframes involved. This is an industry where you spend a decade building then a century operating. There's no "get rich quick" aspect here, not even slightly. It's a long term, low return, low risk situation.
Second is the variability of financial returns. Over a century it's almost bulletproof. Whether you make any profit this year or next is anyone's guess.
From an engineering perspective hydro ticks all the boxes and does so an order of magnitude better than any other presently available storage technology.
From a financial perspective though, well in the Australian context about 90% of the hydro industry is in government hands and it's a reality that both major (government owned) hydro operators have faced plenty of criticism when it comes to finances. They do make money but, as critics would quickly point out, the % returns aren't at all impressive.
Therein lies a fundamental difficulty. What's good in an engineering sense, and the only realistic way to get to a fully renewable electricity supply, isn't going to see too many lining up to invest since on a strictly financial basis it's just not that great.
Genex had great difficulty getting the project over the line to be built at all and even that happened only once government money was tipped in.
It's a bit like the business model of suburban streets. Society needs them, they bring massive benefits, but those benefits mostly accrue to society overall. The road itself doesn't make the money.
Also Victoria being a large user of coal generation, that they sold off for a huge sum, wouldn't do too bad buying it back for a song.At one point the largest mining company in Australia, of anything, in terms of the quantity mined was the Victorian government via the SECV coal mines.
The Vic government also had another, completely separate, operation too many years ago which was simply known as the State Coal Mine.
So it’s been done before......
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?