Real challenge to set out clear energy policy

Australians are not making it easy for Malcolm Turnbull to square the circle on two of his biggest challenges.

Australians are not making it easy for Malcolm Turnbull to square the circle on two of his biggest challenges.

On energy, the latest Newspoll shows voters want the upside of renewable power without any hit to their electricity bills. On the government’s political fortunes, the poll suggests big messages on policy will never be enough to claw back support when Tony Abbott is sniping from the sidelines.

The findings on energy policy are a huge challenge. The Newspoll shows 63 per cent of voters want to continue the subsidies for renewable energy even though the cost of solar and wind power is falling sharply. At the same time, a majority will not pay more to help encourage these renewable sources. This includes 54 per cent of Labor voters as well as 60 per cent of Coalition voters.

The results are funny but also frightening. There should be no surprise that customers are happy to receive a public benefit as long as someone else pays for it. The surprise may be that it is proving so difficult to make them aware of the price they pay.

The findings from the Australian Competition & Consumer Commission show that environmental policies do not make up the lion’s share of the increase in energy bills over the past decade but do make a contribution. The policies do not come cheap.

The government has a real challenge in setting out an energy policy that scales back subsidies for renewables when voters clearly believe these are worthwhile. The obvious risk is voters will respond to Bill Shorten when he sticks to his 50 per cent renewable target.

Turnbull and his ministers must make the costs clear to consumers to have any hope of winning the fight in parliament. The ACCC report is a necessary step towards tomorrow’s partyroom meeting to endorse a new policy.

The second big challenge will remain as long as Abbott keeps his seat in parliament. The government unveiled a series of policies in recent weeks and had grounds to expect a gain in the polls, given a two-party result of 46 to 54 per cent is below the trend for the year.

The reforms to private health insurance, rushed out on Thursday after a leak from the industry, was just one of several “good news” stories, including more spending on health and medicines.

Yet the plans were undercut by Abbott’s strident call for a cut to the emissions targets that he approved as leader.

How could Turnbull respond? To take on Abbott directly would only inflame the division and heighten talk of disunity — backbench disaffection among a small group of bitter Liberals.

The alternative response was to largely ignore Abbott’s remarks. It was safer, but it looked weak in the face of an obvious attack.