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Archive for September, 2017

Putting the blame where it belongs

September 20th, 2017 15 comments

Queensland Premier Anna Palaszczuk has followed Bill Shorten in blaming privatisation for the woes of the electricity network. She’s basically right, although there’s much more wrong with the National Electricity Market than that.

Equally importantly, in terms of getting a good outcome, she’s on a political winner in the fight with the Turnbull government and particularly the Abbott faction pulling Turnbull’s strings.

No one fully understands what’s going wrong with energy policy, but Australians love renewable energy and hate privatisation. Both of these judgements are validated by experience. Renewable energy has overdelivered on its promises while privatisation has (at best) undelivered and more commonly made matters worse. So, the idea that the LNP can win the debate on energy policy by bashing renewables and attacking public ownership as socialism seems pretty implausible.

Categories: Oz Politics Tags:

A rare outbreak of unanimity on PFI

September 19th, 2017 11 comments

I’m doing some work on privatisation and wanted to look at recent UK experience with the Private Finance Initiative. So, I Googled for PFI in the last year (as Google personalizes searches, your mileage may vary). The result is a surprising degree of unanimity. Across the political spectrum, there is agreement that

* PFI is a disaster, enriching private firms at the expense of the public
* The other side is (mostly) to blame

Read more…

Categories: Economic policy Tags:

The result is in the mail

September 19th, 2017 20 comments

We got our equal marriage survey forms in the mail yesterday, and posted them back today. From what I’ve seen, about half the forms were delivered last week and nearly all will be done by Friday. And I imagine, most people will either respond straight away or not at all. So, it was kind of strange to see the official campaigns being launched at the weekend, rather as if an ordinary election campaign started at lunchtime on election day*.

On the other hand, the results won’t be announced until November, and the ABS is working hard to prevent any release of partial information. That’s if the votes were kept under lock and key on election night and not counted until the last postals and absentees had come in.

In these circumstances, I’m hoping for the slow-motion version of an exit poll. Next week, any pollster so minded could survey people to ask if and how they voted. We wouldn’t have the problem, which affected pre-survey polling, of unpredictable turnout, so the results should be as accurate as an ordinary opinion poll (that is, a 95 per cent confidence interval of plus or minus 2-3 percentage points for a sample of 1-2000). Is anyone going to do this, I wonder?

* For byzantine funding reasons, the major parties now leave their election launch until the week before election day, when quite a few people have already voted. But this is taking it a step further.

Categories: Oz Politics Tags:

Monday Message Board

September 18th, 2017 3 comments

Another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.

Categories: Regular Features Tags:

The opportunity cost of the Melbourne Grand Prix

September 15th, 2017 35 comments

Last Sunday, my wife Nancy and I had a great weekend in Mooloolaba, where I took part in the Ironman 70.3 event, along with a thousand or so other competitors from around Australia and the world as well as hundreds of spectators. As Nancy said, even though the Sunshine Coast isn’t far from Brisbane, we’d never get around to going if there weren’t an event like this, but the beautiful setting makes us keen to return.

While I was there, a friend mentioned that the Melbourne Ironman event had been cancelled because the date of the Grand Prix had changed, producing a clash. That got my mind away from transition times and back to economic policy.
Read more…

Categories: Economics - General Tags:

How to replace the National Electricity Market

September 12th, 2017 42 comments

There are quite a few proposals around to intervene in, or repair, the National Electricity Market. In my view, it’s much too late for that. We need to scrap the NEM and start on a new path towards a zero-carbon electricity and energy system. I’ve written down some preliminary thoughts. I’d appreciate comments and also suggestions as to how I might push this idea along a bit.

Read more…

Categories: Economic policy, Environment Tags:

Sandpit

September 11th, 2017 1 comment

A new sandpit for long side discussions, conspiracy theories, idees fixes and so on.

Categories: Regular Features Tags:

Monday Message Board

September 11th, 2017 7 comments

Another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.

Categories: Regular Features Tags:

Shorten changes the game on electricity

September 8th, 2017 64 comments

Somewhat lost in the noise surrounding yesterday’s High Court decision on the equal marriage survey was Bill Shorten’s statement that privatisation of the electricity industry in the 1990s was a major contributor to the current disaster. He’s essentially correct, though ‘privatisation’ has to be taken as shorthand for ‘the process of disaggregation and market reform of which privatisation was a central part’. I’ve been over this ground many times, including here and here, and have argued that renationalisation is the only solution.

Unsurprisingly, there’s been pushback from the Oz, which ran a piece headlined ‘Bill Shorten’s power play debunked” with the lead ‘Bill Shorten’s claim that the electricity crisis has been driven by privatisation has been dismissed by business leaders and energy experts,’.

It’s remarkably lame job.

The only business leader quoted is Tony Shepherd, formerly of the BCA, and last seen heading the disastrous Commission of Audit. Next up is Labor deserter, Michael Costa, followed by Jeff Kennett. Both Shepherd and Costa are climate denialists, which instantly destroys their credibility. Costa and Kennett have already had their privatisation policies rejected by voters, so it seems unlikely that their criticism will scare Shorten. In fact, he’s already hit back*

The only serious expert quoted is Tony Wood, but he doesn’t really help the Oz. He’s quoted as saying “Grattan Institute energy director Tony Wood rejected privatisation as the cause of the energy market crisis. He said 15 years of political disagreement on climate change policy and regulated monopolies in the electricity distribution networks were contributors to the current electricity crisis. He also pointed to the fact that in Queensland, the Palaszczuk government in June was forced to order its state-owned power generator Stanwell to pursue lower profits during heatwaves because of spikes in power prices.”

The first point is accurate enough, but the point about Queensland proves the opposite of what the Oz wants us to believe. It’s only because Stanwell is publicly owned that the Palaszczuk government can order it not to exploit the mess that is the National Electricity Market.

Turning to the politics of the issue, Shorten’s recasting of the debate is going to cause Turnbull a lot of problems. He’s made energy a central issue,, and is convinced that it’s a winner for the government. And, having attacked Shorten as wanting to turn Australia into North Korea, they can scarcely leave the privatisation debate.

This is likely to be disastrous for the government. Not only is privatisation politically toxic, but the government has already undermined any possible credibility on the issue with speculation that it will finance a new coal fired power station, along with Snowy 2.0 and other interventions. Once the debate moves on to the real issue of the failure of market reform, the culture war rhetoric on which the government has relied so far will be totally irrelevant.

* We shoudn’t pay too much attention to comments threads but it’s notable that even the Oz commentariat, almost uniformly made up of rightwing climate denialists, is far from united in support of privatisation.

Categories: Economic policy, Oz Politics Tags:

The equal marriage survey

September 7th, 2017 57 comments

A few thoughts on the equal marriage survey, now that it’s going ahead.

Read more…

Categories: Oz Politics Tags:

The generation game, yet again

September 5th, 2017 12 comments

At Inside Story, I’ve had yet another go at the silliness of generational analysis, reworking some material I’ve posted previously, but improving the analysis in some ways, I think. In particular, I think the intro helps to explain the persistent appeal of generational cliches in the face of repeated refutation.

Every generation thinks it invented sex, and every generation is wrong.” As that quotation from the American writer Robert Heinlein suggests, we all experience as unique and revelatory the transformations we undergo through the course of our lives, from childhood to puberty, adulthood, parenthood and old age. As a matter of logic and observation, though, these processes are experienced at all times and in all places, and differ more in detail than essentials.

This is the paradox at the heart of the otherwise inexplicable durability of claims that people’s characteristics can be explained by their membership of a “generation” (baby boomers, generation X, and so on).

Categories: Life in General Tags:

[email protected] follies

September 5th, 2017 13 comments

I have a piece in Crikey (reproduced over the fold) under the title ‘Our spy agencies know less about cybersecurity than the Daily Mail‘.

The central point is that our leading cybersecurity agency, the Australian Signals Directorate, has just rolled out a policy requiring users of government agency websites to change their passwords every 90 days and to use composition rules based on a mix of alphanumeric and special characters. As even the Daily Mail has pointed out, these practices are thoroughly discredited, to the point where the expert responsible for them has publicly recanted.

Read more…

Categories: Boneheaded stupidity Tags:

The Minerals Council of Australia pushing zombie ideas

September 4th, 2017 28 comments

Fighting zombies is a tiresome business. Even when you think you’ve finally killed them, they bounce back as often as not. But it has to be done, and there are some benefits. When you see a supposedly serious person or organization pushing zombie ideas, it’s an indication that nothing they put out should be presumed to be serious.

There can be few zombies more thoroughly undead than nuclear power in general, except for the idea that nuclear power is a sensible option for Australia. The strongly pro-nuclear SA Royal Commission demolished this zombie so thoroughly that it should have taken a decade at least to regenerate.

But here’s the Minerals Council of Australia, which has taken a break from promoting coal to push the idea that Australia needs a nuclear power industry and that the biggest obstacle is a legal prohibition imposed in 1998. The supporting “analysis” is riddled with absurdities, some of which have already been pointed out. I’ll give my own (incomplete) list over the fold

Read more…

Categories: Boneheaded stupidity, Environment Tags:

Monday Message Board

September 4th, 2017 7 comments

Another Monday Message Board. Post comments on any topic. Civil discussion and no coarse language please. Side discussions and idees fixes to the sandpits, please.

Categories: Regular Features Tags:

Restating the case against trickle down (updated)

September 2nd, 2017 16 comments

I’ve just given a couple of talks focusing on inequality, one for the Global Change Institute at UQ, following a presentation by Wayne Swan and the second at a conference organized by the TJ Ryan Foundation (including great talks by Peter Saunders, Sally McManus, and others), where I was responding to a paper by Jim Stanford from the Centre for Future Work. Because I was speaking second in both cases, I didn’t prepare a paper or slides, but tailored my talk to complement the one before. That can be a high risk strategy, but in this case, I think it worked very well.

It led me to a new, and I hope improved, statement of the case against ‘trickle down’ theory. As always, the most important part of a refutation is a clear statement of the theory you propose to refute, so that it can be shown where it falls down. After the talks I wrote this up, and it’s over the fold. Comments and constructive criticism much appreciated.

Read more…

Sandpit

September 2nd, 2017 Comments off

A new sandpit for long side discussions, conspiracy theories, idees fixes and so on.

Categories: Regular Features Tags:

Weekend reflections

September 2nd, 2017 2 comments

After another long break, it’s time for another weekend reflections, which makes space for longer than usual comments on any topic. Side discussions to sandpits, please. Absolutely no personal criticism of other commenters.

Categories: Regular Features Tags: