| AS Australia heads towards its next Federal election later this year its electricity industry train wreck is no closer to any form of certainty for investors.Federally Prime Minister Kevin Rudd is letting it be known he can pull a double dissolution of parliament because of a recalcitrant Senate and NSW government’s privatisation train doesn’t know whether its going forward or in reverse.Kevin Rudd would be a game man to head for the polls early considering his opponent, Tony Abbott has level pegged in the popularity stakes.He would also be a very game man to push the emissions trading scheme as a political platform.Whatever support there was it was severely eroded both by the outcome of Copenhagen and by scandals surrounding the IPCC credibility in the science stakes.Going to the polls with such a background would be hazardous to say the least.Both governments, NSW state and ACT Federal governments have shown a marked inability to manage their back yards.NSW has long been ploughing up the sleepers over both rail and road transport infrastructure and its ability to sell off its electricity assets has bordered on a farce as deadline after deadline passes.Now arguments with the Australian Competition and Consumer Commission over issues that should have been resolved much earlier, and litigation with prospective bidders has become comical.Federally, handling of the insulation and solar rebates would land any private company in the docks.This coupled with the Prime Minister’s handling of the whole affair is again another episode for the Sunday comics.Not quickly and decisively disposing of his environment minister, Peter Garrett but shifting him sideways revealed a severe lack of judgment both of the magnitude of the event and the incompetence of the minister.The quick fix on renewables,-- abruptly halting the insulation program and stripping the solar rebates out of the renewable energy certificates -- is policy decisions on the fly and policy decisions to be viewed with a respectful distrust.AGL caution in announcing a renewed wind farm immediately after the event along with silence from other developers was symptomatic. No; if I were Kevin Rudd I would keep my head down and run the full term and hope a lot of all this blows away before I front the electorate again. |
