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Mistakes caused the energy disaster — what other damage is being done?

How did we elect politicians in both the state and Federal sphere that have let us down so badly by vandalising our energy system?

What can we learn from the errors of people like Daniel Andrews, Barry O’Farrell, Mike Baird, Jay Weatherill and the Canberra swamp?
What can we learn from the errors of people like Daniel Andrews, Barry O’Farrell, Mike Baird, Jay Weatherill and the Canberra swamp?

How in Australia did we elect politicians in both the state and Federal sphere that have let us down so badly by vandalising our energy system?

Where did they go wrong in their decision-making? Where else are they making the same mistakes? What can we learn from the errors of people like Daniel Andrews, Barry O’Farrell, Mike Baird, Jay Weatherill and the Canberra swamp?

In combination, their mistakes have done much more than wrecked our energy system — they have made it impossible for vast areas of Australian industry to invest because they are afraid of energy security.

I received more than 600 comments to my revelations yesterday. Thank you. The easiest explanations for the disaster is that we embraced renewables and did not understand the need for gas in places like NSW and Victoria. But that is much too simplistic.

People voted for politicians with renewable energy policies so lets not emphasise the good and the bad in the actual policies but rather the decision making process in their implementation.

Our energy crisis actually started back in the first decade of this century when in both state and federal spheres we began to appoint public servants who were just “yes” men and women who would tell the politicians what they wanted to hear. And then we also surrounded ministers with advisers who all had the same view.

The whole process was aimed at getting votes and praise in the media rather than the well being of the state or country.

And so if you want to go renewables in power generation to 20, 30, 40 or 50 per cent then you must find people who know what is required. Simply plonking windmills or solar panels on the countryside gets votes and media praise but you need to find the best people to tell you what else you need in the way of distribution and back up.

I was reminded that back in 2012 the managing director if Incitec Pivot, James Fazzino, explained to me what was ahead and I passed on the warnings to readers and politicians. As you will see in the 600 comments others did the same thing.

But, completely cocooned from the real world, the politicians did not hear it. In many cases their advisers kept the truth from then.

Getting praise in radio and other media for stopping essential gas in NSW and Victoria makes all the advisers feel they are doing their job. Ministers need to really do the work on the electricity supplies in a crisis. If a strategy is high risk then adopt strategies to mitigate the risk and tell voters the truth and the true cost. Don’t just destroy our industries and jobs for short term praise.

The trouble is that the same decision making process, which caused the energy disaster, extends to so many other areas.

For example there is now a much greater risk of war — a factor that was never previously considered seriously despite warnings from people outside the Canberra swamp.

We have very little stock of refined petroleum product and because we have closed most of our refineries. We are a perfect target. An enemy just has to stop the tankers coming. The federal politicians were warned of the dangers of closing refineries but the warnings never reached their ears.

A United States Air Force F-22 aircraft arrives at RAAF Base Tindal
A United States Air Force F-22 aircraft arrives at RAAF Base Tindal

We are setting up the Tindal air base to make it a perfect target because most of the planes are in the one spot.

Some how or other we are paying $20 to $30 billion more for submarines than is necessary and they will not be available for more than a decade. The people who made that decision did not listen to those outside of their immediate circle about what was happening in our region. And they did not understand that in a hostile region the strength of an isolated nation like Australia is its industrial base.

I could keep going.

Malcolm Turnbull visits the Tumut 3 power station at the Snowy Hydro Scheme. Picture: AFP
Malcolm Turnbull visits the Tumut 3 power station at the Snowy Hydro Scheme. Picture: AFP

On the basis of opinion polls Malcolm Turnbull is dead meat. So why not “have a go” You did it with Snowy but that is only a small step. . Now bring in real experts on gas — we have plenty have plenty of gas without fracking but NSW and Victorian politicians are preventing its extraction — a tell the states that you will ensure their gas is available at non peak prices via a short term Gladstone gas levy; and will make sure the farmers are well rewarded as long as the states develop their gas in accordance with expert safety standards.

Do it.

And Turnbull must return to that submarine decision in the light of Korea, China and Trump. But in each issue go outside the swamps in the states and Canberra. That’s where the knowledge is.

Robert Gottliebsen
Robert GottliebsenBusiness Columnist

Robert Gottliebsen has spent more than 50 years writing and commentating about business and investment in Australia. He has won the Walkley award and Australian Journalist of the Year award. He has a place in the Australian Media Hall of Fame and in 2018 was awarded a Lifetime achievement award by the Melbourne Press Club. He received an Order of Australia Medal in 2018 for services to journalism and educational governance. He is a regular commentator for The Australian.

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Original URL: https://www.theaustralian.com.au/business/opinion/robert-gottliebsen/mistakes-caused-the-energy-disaster-what-other-damage-is-being-done/news-story/820bbeb9038e987152d3294b581942a9