Copenhagen commitments

John Quiggin50 Comments

While Australia has been transfixed by the meltdown of the Liberal party, there have been a string of positive developments around the world, which make a positive outcome from Copenhagen, leading over the next year to an intermational agreement to limit greenhouse gas emissions, much more likely than it seemed two years ago, or even six months ago. Among the most important developments

* Obama’s commitment to a 17 per cent (rel 2005) target, which essentially puts the Administration’s credibility behind Waxman-Markey
* China’s acceptance of a quantitative emissions target, based on emissions/GDP ratios, but implying a substantial cut relative to business as usual
* The change of government in Japan, from do-little LDP to activist DPJ
* EU consensus on the need for stronger action
* Acceptance of the principle of compensation for developing countries, and acceptance by countries like India that they should take part in a global agreement and argue for compensation
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The lunatics have taken over the asylum

John Quiggin278 Comments

A day ago, it looked as if Malcolm Turnbull could survive at least long enough to implement his deal with Labor, a deal that would deliver a drastically weakened emissions trading scheme with massive overcompensation of every possible big business interest. It would be marvellous to report that a popular uprising against rent-seeking lobby groups changed all this. But, in fact, Turnbull’s leadership has been rendered untenable by a Liberal Party base, and commentariat, that has entered a state of collective insanity in which the most absurd conspiracy theories are taken as a starting point for reasoning. Over time on this blog, I’ve seen even seemingly sensible commenters of a libertarian or conservative cast of mind succumb to this tribalist lunacy. The handful who have resisted (hi, Tokyo Tom) are increasingly regarded as “beyond the pale”.

From delusional beliefs on climate science follow equally delusional beliefs on political strategy, symbolised by the 37 votes for a Kevin Andrews spill yesterday and by the apparent certainty that, assuming Turnbull holds his ground, a majority of Liberals will vote for the delusionist candidate, Tony Abbott

Amazingly, even the editorialist at the Oz, whose columnists have uniformly promoted delusional conspiracy theories recognises the hopelessness of such a stance. as the Oz says

In truth, there is nowhere for Coalition members to go on this issue, other than to support the amended and improved bill and claim as their work the concessions they have wrung from the government. The introduction of a cap-and-trade ETS has been bipartisan policy for more than two years and it is supreme folly for rebels within the Liberals to believe they can go to an election as the destroyers, rather than the enablers, of such a scheme.

There may be room for the Nationals to argue against an ETS in the bush, but it is politically naive to think that voters in the inner-city areas of Melbourne and Sydney would welcome such regressive policies from their MPs. How exactly would Mr Abbott, for example, propose campaigning on this issue in seats such as North Sydney and Wentworth, where Liberal voters are determined to see action on climate change? Having a bob each way on the issue will not go down well with voters who have followed the debate and who expect, as Mr Turnbull says, responsible political parties to take responsible action

There is no reasoning with lunatics, and my attempts to do so have gone nowhere. At this point, we just have to hope that they will remain, as they are at present, in the minority, and that they can be kept as far as possible from political power.

There’s no guarantee that sanity will prevail. As the conman in Huckleberry Finn says ‘Hain’t we got all the fools in town on our side? And ain’t that a big enough majority in any town?” But, as I recall, he ends up tarred and feathered and run out of town on a rail.

DD coming up?

John Quiggin27 Comments

The failure of the Senate to pass[1] the CPRS today means that the Rudd-Turnbull deal is dead, and that Rudd now has little choice but to go for a double dissolution, early in 2010. Assuming he does, and that Labor wins, the worst outcome we can get is the original bill. But, given that Labor will have no choice but to deal with the Greens for the foreseeable future, it would make much more sense to go for something better. Whereas a couple of days ago it looked like we would get a shabby deal, politically profitable for Labor, mildly embarrassing for the Coalition and barely passable for the environment, we now have the prospect of getting it all – a decent emissions trading policy, an open debate in which the delusionist conspiracy theorists are exposed for the loony fruit loops they are, and a split in the Liberal party that will keep it out of office until it dumps its current base and moves a long way to the left (see UK Tory party)

Some observations over the page

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A long parliament?

John Quiggin43 Comments

Suppose that the delusionists can manage to force a party meeting tomorrow, and move a spill motion which will surely succeed. Then presumably, even if Hockey gets up, the Libs will kill the ETS deal. At this point, it makes sense for Labor to want a double dissolution. More it makes sense for them to keep Parliament sitting as long as possible to get extra triggers. Obviously the Reps is no problem. For the Senate, the Libs presumably need their votes + 2 more to pass a motion to adjourn. So, if Labor can keep Xenophon and the Greens onside, which would make sense for them in a lot of ways, they can keep Parliament sitting for another couple of weeks while the Libs tear each other apart. Any thoughts on the practicality of this?

Abbott out

John Quiggin80 Comments

Tony Abbott’s resignation must surely mark the end for Malcolm Turnbull’s leadership and therefore, in all probability, for the deal with Labor over the ETS.

Ultra-optimistic scenario: Turnbull quits and Abbott is installed, the deal is cancelled and Rudd calls a double dissolution based on the original bill, winning easily. Since the original bill clearly needs amendment he doesn’t use the joint sitting mechanism but instead makes an agreement with the Greens who now have the balance of power.

Rudd’s preferred scenario: Turnbull holds on long enough to deliver seven senate votes tomorrow and pass the watered-down ETS. He is promptly rolled and the Liberal party splits. Abbott as new leader, starts with a commitment to repeal the scheme, but abandons it because this is the last thing big business wants. Labor reduces the divided opposition to rump status at the next election, and ends up dealing with three or four different parties in the Senate, needing only one to get its legislation through. This is probably more plausible than mine, but the timing will be very tight tomorrow. The decision is to be made at 3:45pm, apparently.

Three universes collide!

John Quiggin96 Comments

I’ve been very busy with asset sales, the problems of the Murray-Darling Basin, my still-in-progress book and other commitments too numerous to list, with the result that I’ve had no time to comment on the spectacular events in the climate change debate. But it’s finally too much to ignore.

I’ve long pointed out the “parallel universe” nature of the discussion that goes on under the name of “scepticism”. Over the last couple of days, that parallel universe has collided with the universe of Australian practical politics, with catastrophic results for Malcolm Turnbull in particular.

The timing is particularly galling for the delusionists who are uniformly convinced that the University of East Anglia emails they have stolen and promulgated prove beyond doubt … well, something sinister. Surely, they think, this will persuade the weak-kneed Liberals to stop while we hold a full inquiry. Following the analogy of Newtongate it’s as if, just as the vorticists had found the crucial ‘smoking gun’, a letter exposing Newton’s use of hired thugs to beat up Cartesian critics, they looked out from their shiny new antigravity machine and realised that some very hard ground was approaching them at a speed of hundreds of metres per second.
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National go home from work on time day

John Quiggin34 Comments

It’s striking that we have to declare a special National go Home on Time Day, and also striking (to me anyway) that I have only just found time to blog about it. My own chronic state of overcommitment is more of a personal choice than an imposition from above, but I have to take constant care not to expect a similar overcommitment from the members of my research team. On the whole, Australian bosses and managers are failing in that obligation, or don’t even recognise it. Anyway, knock-off time is coming up soon, so everyone, head for home, beach or pub as the fancy takes you.

Economists statement on Queensland asset sales

John Quiggin92 Comments

I’m one of a group of more than 20 academic and business economists who have put together a statement criticising the Queensland government’s case for asset sales and arguing that we need a proper public debate. The group includes some of Australia’s leading economists, including Joshua Gans, Stephen King, Warwick McKibbin and Adrian Pagan, as well as ten professors of economics from UQ, and more from other Queensland universities. But maybe the most surprising, and heartening, signature is that of Henry Ergas who has been one of my sparring partners on many occasions, most recently a debate on whether government should be the ultimate risk manager, held by the UQ Alumni Association (Henry won, by popular vote). Although Henry has been a strong supporter of privatisation in many instances where I have opposed it, we agree that these issues should be decided on the basis of costs and benefits, and not by spurious claims that privatisation provides governments with money they can invest in schools and hospitals.

Update I just did an interview on Madonna King’s ABC Radio program, and have promised to debate the issue with Andrew Fraser. I will also probably do a TV interview.

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