Global Food Forum: Past energy policy a crime, says former minister Andrew Robb

Former minister Andrew Robb has slammed energy “mistakes”, as CEOs tagged prices a “bear they couldn’t outrun”.

A “whole lot of mistakes” had been made in recent years, said former trade minister Andrew Robb. Pic: Aaron Francis

Former trade minister Andrew Robb has hit out at Australia’s energy policy as a number of chief executives tagged rising prices as a “bear they couldn’t outrun”.

For Mr Robb, who now works with rich-lister Gina Rinehart and serves as her representative on the Ten Network board, energy policy has let Australians down, with a lack of cohesion on the way forward.

“This is a crime what’s happened,” he said at the Global Food Forum in Melbourne.

“We are awash with gas and black and brown coal. Sure some of that’s dirty but we’ve spent virtually no money trying to clean up (coal) and China is showing the way.

“Obviously renewables are where it’s all heading but it’s not economic right now.”

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The former Coalition minister’s assertions come as the Turnbull government attempts to put the brakes on rising costs, recently reaching a deal with LNG exporters to supply more gas domestically and this week granting the consumer watchdog more powers to investigate and report on electricity prices.

It also comes amid the backdrop of damaging blackouts in South Australia late last year that put a spotlight on the security of the nation’s energy supply.

Mr Robb, who would not broadly be drawn on Turnbull government policies, said a “whole lot of mistakes” had been made in recent years that put pressure on local companies and consumers.

“I feel there’s a great urgency and we shouldn’t be in this situation,” he said.

“The lift in energy prices is putting a lot of companies in difficulty financially.”

The comments came amid a strong series of views from high-profile chief executives at the Global Food Forum led by Woolworths chief executive Brad Banducci who said the group’s energy efficiency improvements were not keeping pace with rising prices.

“It is a very material issue for us and for all our partners up our supply chain,” he said.

“We manage what we can manage. But given the cost increases coming through, we are trying to outrun a bear at the moment.”

Bega Cheese boss Barry Irvin took a similar tack: “We are really pleased with the work we have done with energy efficiency. But we are not going to be able to keep ahead of, as Brad Banducci said, the bear that is chasing us.”

He added it was “a concern” we had got to this point, urging a bipartisan approach on the issue in Canberra.

“Give us clear consistent policy,” Mr Irvin urged.

“I think there’s been a waxing and waning on the right thing to do is and the debate has become very emotive.

“Giving an ear to either extreme is not the answer.”

Fonterra Australia boss Rene Dedoncker echoed the concerns, following on from his peers in detailing the risk of rising prices for consumers as swelling energy costs will need to be passed on.

“If you can’t recover (higher costs) they will need to form part of the setting in the marketplace.”

Poultry producer Inghams backed Mr Robb’s view an energy-rich nation should not have ended up at this point, where energy prices were such a worry.

“For a country like us to end up here is not very satisfying,” chief executive Mick Macmahon said.

Blackmores chief executive Christine Holgate was less worried, saying globally Australia was not uncompetitive, although she noted the average Australian would take a hit.

“We are incredibly privileged (in Australia),” she said.

“However I don’t want to see energy prices going up and I worry about the impact for regular mums and dads.”