22 January 2023
E&OE…
Topics: Gas deal, Mandatory Code of Conduct, Gas shortfalls
Tom Connell
Joining me now is Shadow Climate Change and Energy Minister Ted O’Brien, thanks for your time. Headlines here in the story suggest it’s sort of longer term gas supply maybe after the next two to three years isn’t this what both government’s have been trying to do for many years?
Ted O’Brien
Hello Tom, great to be with you again. And look, you’re right that I think both sides of government should be looking at locking in long term supply. And if I am to be happy about today’s announcement, it is that exemptions exist to Labor’s Code of Conduct. Exemptions to their policy. Because what has proven to be the case is you can’t get gas flowing in this country unless you work outside of Labor’s own framework. Without those exemptions, we would still have blockages and so the announcement today represents really a concession on the part of Labor, that the only way you can get gas flowing in this country is if companies have been given the opportunity to work outside of the policy framework Labor itself has put in place. So, I think that is a good thing, which is why those exemptions have to be there in place. Otherwise, we are going to see massive shortfalls far sooner and they’re looking and they’re looking dire anyway.
Tom Connell
But this was a situation under the Coalition which was never solved long term either right? We had threats of gas triggers and so on this shortage has been evident for quite a while. Any deal is a good one isn’t it?
Ted O’Brien
Well, actually Tom I think there’s no doubt that the supply challenge is a long term one, but the Coalition was managing it. We never had such dire predictions coming from the operator, ACCC, market analysts as we do now. And that is because effectively, the Coalition worked with industry. Now, some times, that was a tough relationship. Sometimes there were a lot of arguments. But what we resisted to do as a Coalition was put ourselves in the center of the entire marketplace. That is what Labor has done. And that is why they are now seeking exemptions from their own code, because basically they blocked up the entire market. The existing players need exemptions to get gas out. New players aren’t even coming to town. There’s been enormous shortfall in future investment. And we have our major trading partners saying, well, is Australia serious anymore when it comes to gas. None of those issues existed under the Coalition. They are a direct consequence of policy, which is why we continue to encourage the Albanese government to change tack. Let’s hit this New Year 2024. By trying to pour more gas into the market. The deal that was announced today doesn’t get so much as one additional petajoule into the domestic market that wasn’t already destined to domestic market. Business as usual. If anything, they’ve sort of sort of uncorked the blockage that had been created by their Code of Conduct through the exemptions, and that’s a good thing.
Tom Connell
I guess there’s destined for the market and guaranteed. Look, I didn’t want to ask you on a slightly different topic. Very different topic. Donald Trump has all but gotten the Republican nomination. What would another Trump presidency mean for the world and Australia?
Ted O’Brien
Tom, I’ve been around a little bit too long now. Which basically means I won’t be buying into commentary on US domestic politics is the short of it, you know, elections …as as as important as these elections are, that’s a matter of the United States. And then you’re the latter question. Sorry, Tom, I think I spoke over you there. But in terms of me trying to predict what a possible Trump presidency would do to the global energy markets again, no offense to you, but I’m not going to be buying in to a running commentary for those sorts of things.
Tom Connell
Less a running commentary, though. But you must have a view on what it would mean. Joe Biden had much more renewable piece, if you like, Donald Trump would take the US and as a result, partly the world away from that. Would that be a good development in your view.
Ted O’Brien
Well, I’ll tell you, Tom, what I’m very happy to speak about and that is the position of the Albanese government in Australia, which does have a ‘renewables only’ approach. An approach that does not align with the Biden administration does not align with the former Trump administration. In fact, Australia’s policy is on its own. We’re completely separated from our peers, the UK, the US, Japan, Canada, South Korea, you name it, we’re on our own and that is why prices are going up in the midst of a cost of living crisis. Supply is being suffocated because our government in Australia has an ideological approach on that I’m happy to comment every single day.
Tom Connell
Okay. We’re gonna leave it there. We’ll leave you to comment on that for another day. Ted O’Brien. Thanks for your time.