LABOR’S energy market legislation sorts the politics but threatens family and business bottom lines in the medium and long term.
Labor has delivered another piece of hastily written legislation which wraps
everything in red tape and backs Australians into corners.
This flawed plan to help mitigate the unfolding energy crisis is an example of Labor introducing legislation without duly consulting with industry and stakeholders.
They have allowed just five days for consultation. What could go wrong?
It hopes to save Australian families on average $230 on their power bill.
But households won’t be getting their bills reduced by $230 – it will be simply $230 less than the increase expected, and not everybody will get the relief.
Labor’s plan signals $1.5 billion in targeted rebates to small businesses and those on Commonwealth payments such as JobSeeker, Family Tax Benefits and pensioners, in partnership with the states and territories.
Not in the form of cash subsidies though – instead the money will be used by energy retailers to lower the price charged.
This system leaves room for error when retailers cross-reference government records to identify customers who should benefit from the lower rate.
Labor intends to intervene in the market with a price cap on industry for 12 months, plus a mandatory code for the gas industry for an “indefinite period”.
The minister can determine who, what, when and how this intervention occurs.
It is the implementation of “Big Government” interfering in the market, which is the antithesis of the values we, The Nationals, stand for.
Governments interfering in markets is no way to encourage and reward private enterprise.
When private enterprise doesn’t see a clear benefit in investing, it simply walks away. Let’s face it, there are other international markets which offer less instability.
If the market becomes so unstable that investors withdraw from Australia, it will cost ordinary Australians in more than one way.
It will cost their jobs and, cost their hip pocket as supply reduces and demand goes up.
The real and profound issue remains supply, which no one on the red “dream team” wants to talk about.
