It’s the seductive solution that almost always goes badly
Energy caps are ultimately ineffective at meeting the policy objective of reducing prices while carrying high costs.
Energy caps are ultimately ineffective at meeting the policy objective of reducing prices while carrying high costs.
I am compelled to award two wooden spoons for the worst government reports this year, such was the competition.
There are very strong parallels here with the introduction of Wayne Swan’s Resource Super Profits Tax in 2012.
Even if the Ukraine war ends, global energy markets won’t return to pre-war arrangements. The PM will need another excuse for Australia’s high prices.
There is no doubt that the best solution to higher prices always is more supply.
Sadly, the cliches of Labor were always likely to prevail over careful analysis of the damage this bill will inflict.
As we hurtle towards renewables and emissions targets there is no certainty we will be able to keep the lights on. Surely there needs to be a backup plan?
Neither Tony Burke nor the Prime Minister seems to understand the economic perils that will be released should this bill become law.
Either Tony Burke really doesn’t understand how labour markets work or he is being incredibly badly advised.
Many of the problems in Australia’s energy system are homegrown; it was only a matter of time before the full effects became apparent.
Original URL: https://www.theaustralian.com.au/author/judith-sloan/page/18