Canberra’s Policy Process Fails to Serve the National Interest
Summary:
Canberra’s policy process is broken, with the government refusing to budge on national interest reforms that threaten vested interests. This leads to the bare minimum of “fake” reform, which fails to address the root cause of the problem. The current gas policy failures in Australia highlight these dynamics, with the LNG export cartel destroying the East Coast economy. The proposed export permit system fails to address the lack of competition, and whatever reform path is chosen must force producers to sell their gas locally at lower prices.
What This Means for You:
- Understand the dynamics of Canberra’s policy process and how it fails to serve the national interest.
- Recognize the limitations of the proposed export permit system and how it fails to address the lack of competition.
- Advocate for reforms that force producers to sell their gas locally at lower prices, such as Peter Dutton’s reservation proposal or applying export levies.
- Stay informed about the ongoing gas policy failures and the potential impact on the economy and energy prices.
- Be aware of the broader implications of this issue, including the need for competition and regulation in the energy market.
Original Post:
The policy process in Canberra is broken.
The government of the day refuses to budge on any national interest reform that threatens vested interests.
As the polity grows increasingly agitated due to this inaction, the vested interests realize that their social license to operate is under attack. Over time, it is a risk they cannot ignore.
This forces Canberra to move because even the vested interests it protects become alarmed by deteriorating community support.
Canberra then follows vested-interest reform suggestions.
This produces the bare minimum “fake” reform designed to douse the fire of community anger, rather than properly restructuring whatever the problem is.
Then rinse and repeat.
Extra Information:
For more information on this topic, see the following resources:
- Macrobusiness’s analysis of the proposed gas reservation system
- ACCC report on the impact of LNG exports on domestic gas prices
People Also Ask About:
What is the impact of vested interests on Canberra’s policy process?
Vested interests prevent genuine reform and lead to “fake” reform that fails to address the root cause of the problem.How has the LNG export cartel affected the East Coast economy?
The LNG export cartel has destroyed the East Coast economy by manipulating gas prices.What is the proposed export permit system for the LNG export cartel?
The proposed export permit system is a permit for LNG exports tied to obligations to supply the domestic market.What are the alternatives to the proposed export permit system?
Alternatives include applying export levies on every export dollar above a certain threshold, or recognizing the market as a monopoly and regulating it as such.
Expert Opinion:
The ongoing gas policy failures highlight the need for genuine reform that addresses the lack of competition in the energy market. While Peter Dutton’s reservation proposal is a step in the right direction, a better approach may be to apply export levies on every export dollar above a certain threshold.
Key Terms:
- Canberra’s policy process
- vested interests
- gas policy failures
- LNG export cartel
- fake reform
- export permit system
- market monopoly
- ACCC report
- domestic gas prices
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