In a policy proposal reversal that has few precedents in Australia, the Victorian government first recruited some of the nation’s top chief executives to join a committee to advise the beleaguered state. But then, a few days later, it double-crossed them.
The implications go beyond Victoria into the federal sphere and Peter Dutton’s chances of becoming Prime Minister.
The Coalition Opposition Leader in Victoria, John Pesutto, faces a possible leadership challenge as a result of losing a libel case.
Given the state of politics in Victoria, if Peter Dutton is to gain seats he will a need state leadership that is clear of controversy.
The right thing for John Pesutto to do for the nation and his state is to put aside his understandable personal ambitions to be Premier and take a senior role in the Victorian shadow cabinet, to allow a leader without controversy to be voted in.
And those in the ALP Victorian government surely have a responsibility to make the required changes in their leadership to reverse the great double-cross, in an attempt to restore some confidence in leading companies based in Victoria.
The story of the double-cross is bizarre. Victorian Premier Jacinta Allan recruited Ahmed Fahour to chair a committee that included Monash University vice-chancellor Sharon Pickering and the chief executives of NAB (Andrew Irvine), Bunnings (Michael Schneider), the AFL (Andrew Dillon): and Visy (Anthony Pratt).
Jacinta Allan incorporated in her announcement a program of government deregulation and a significant turnaround in energy policy to promote and develop gas resources. These new policy pillars were no doubt important in convincing the corporate leaders to join the committee. Then came the reversal.
A few days later, Energy Minister Lily D’Ambrosio announced a proposal to restrict the use of gas in industry and retail markets. There were let-out clauses but the policy was designed to make Victoria’s gas distribution network uneconomic and inflict considerable long-term damage on many areas employment.
A succession of industry bodies raised the alarm when the Victorian government’s proposal was announced.
While the policy proposal went under the name of the Energy Minister it was not immediately contradicted by the Premier to assure the committee she had been telling the truth.
Meanwhile the ALP government in Victoria still has two years to run. Unless there is a change in leadership direction they will leave a chaotic situation.
Enterprises operating in Victoria might hang on for two years but they need to be absolutely certain that there will be a Coalition party that is controversy-free and has policies that can rescue the state. Some of those policies might come out the committee if the double-cross is reversed and the required apology handed out.
There is not much point in the committee trying to save Victoria if the government is intent on putting forward proposals that aim at destroying the state’s industrial base.
For Peter Dutton the opportunity to successfully fight a federal election in Victoria when the state government is in chaos will be will be greatly reduced if there’s controversy over the leadership of the state Coalition opposition.
As I pointed out last week, if the Victorian government had stayed with its new gas policy, the industrial outlook for the state had the potential to be greatly improved.
Victoria has vast low-cost onshore gas reserves dissolved in water but they require about six wells to confirm permeability.
If those wells can show that the gas will flow then it will create a much needed major boost to Victoria’s revenue because development is low cost and adjoins the Gippsland pipeline. But even if the wells fail there are now plans to bring Beetaloo gas from the Northern Territory to Victoria, which will then have plenty of gas.
The Dutton energy policy involves initial gas power stations but gradually they will be replaced by nuclear. But both Victoria and Australia have the potential to grow vast areas of saltbush and similar plants that will enable large amounts of carbon to be stored for long periods in the deep root systems. The potential of linking renewables, gas and these new forms of agriculture has not been properly explored in Australia. Victoria’s gas has water as a by-product and can kickstart this new agricultural era. But the government must do what is says.
