Alan Kohler is one of Australia’s most experienced commentators and journalists. Alan is the founder of Eureka Report, Australia’s most successful investment newsletter, and Business Spectator, a 24-hour free business news and commentary website. He also hosts Inside Business, a half-hour Sunday programme on the ABC, is the finance presenter on the ABC News - and producer of the nightly graph (or two).
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Comments on this article
Comments PolicyI think more efficient forms of energy transmission are a must for Australia (A poverty of power policy, October 10). A decade from now when all of the baby boomers have retired, welfare payments in Austalia will be unsustainable.
Australia must act now, strangely as it seems, superannuation is the answer. That is: as we go into a world where, the deleveraging debt cycle, is the only strategy that all banks abide by, we must look to the sharemarket for research funding.
Superannuation is long term and has massive capital flow, therefore energy projects will be no problem funding. Research into energy funding can also come from the super pot.
However, we do need a government that is able to understand that increasing welfare is enlarging a problem that needs to be solved, not alleviated. Taxation changes to move from negative equity (debt) to positive equity (self funding) are required.
Timely words, Keith (A poverty of power policy, October 10).
The fuel stress which is emerging is not helped by feed in tariffs of up to 60 cents when the retaail price is under half of that. The money must come from somewhere.
It's a disgrace that Barry O'Farrell (Premier, NSW) didn't stick by his decision to slash that reckless and wasteful subsidy given to middle class investors with PV panels on their McMansions.
Mode'ling and guesstimating are prone to errors which will saddle our children and grandchildren with massive perpetual debts courtesy of Julia Gillard (A poverty of power policy, October 10)
Energy consumption closely correlates with standard of living (A poverty of power policy, October 11).
To increase Australia's standard of living, more and cheaper energy needs to be available.
Yes, effeciency of the items using the energy is very important...and is an evolutionary development.
But Australia is virtually floating on cheap coal for electricity production. And any neglect of this, for purposes of surrendering to some "Green" fantasy about carbon dioxide is silly on the part of any government.
The totally unjustified potential suffering of the Australian people...and industry...is staggering to contemplate...and to what justifiable and verifiable end...?
There is none.
I hope everyone one realises that those power prices are going to keep skyrocketing regardless of any carbon pricing, and Tony Abbott is not some god who is going to send power prices back into the 1950s (or even 2011s). It's called ageing infrastructure and overconsumption (A poverty of power policy, October 10).
Isn't it about time we called a spade a spade (A poverty of power policy, October 11)?
I think peak crude oil occurred in 2006 and we are now staring down the barrel (pardon the pun) of more significant energy prices. To refer to the high fuel, coal and gas prices as fuel stress is just trying to hide the real problem.
Coal is at record high prices and is not cheap and the oil we buy is not as the TV news tries to tell you $80 a barrel but is in fact about $110 a barrel. With oil we are on a plateau of production and in two years or perhaps so depletion of world production will start.
Politicians are determined to ignore the problem of the price but it is already damaging poorer countries. If they start calling it by its name it would be a good start to mitigate what we are about to receive.
A lot of electrical energy is wasted by our poor building regulations (A poverty of power policy, October 12). A six-star energy-rated Australian home would be illegal if built in Germany because it would be too energy inefficient. The ratings system has be revised scientifically. In Canberra there is a major retail commercial building that tries to heat and cool a huge shopping area that is open to the elements at both ends. Imagine the energy wasted in that building in a climate that varies between 40 and -10 degrees. I recently lived in a new double-glazed apartment that had aluminium window frames that conducted the heat and cold straight around the glass. Let's get real about saving wasted energy.