The Guardian 4 June, 2008
Oil leaks cover up real issues
Anna Pha
Last week in Canberra Parliament House resembled a schoolyard, with Brendan taunting Kevin, and Kevin almost exploding with each provocation. The cool, calm, ever-smiling image of the golden haired boy quickly turned angry and aggressive as Brendan went on the attack. Kevin was biting and Brendan kept throwing more lines. The Liberals had their hands on leaked cabinet documents revealing that four government departments and the Energy Minister Martin Ferguson oppose the government’s FuelWatch scheme.
First Kevin looked for the culprit amongst his own colleagues, then as the leaks continued turned on public servants and suggested that some of them were unhappy being made to work so hard. Blunder after blunder — it made great footage for the media pack.
The whole spectacle diverted attention from the real issues — an oil dependent society, finite supply of oil, rocketing oil prices, oil-induced inflationary pressures, a lack of public transport, climate change, and an ongoing failure to address these issues.
The Rudd government still has not got its head around the gravity of the situation. A quick look at some of its budget measures shows that it is still relying heavily on market forces to resolve the problem and is failing to tackle carbon emissions.
For example, there is little attempt to reduce or discourage car dependency or improve the energy efficiency of cars. It seems to be a matter of waiting for that to happen by itself, as petrol prices rise and oil shortages develop.
As Greens Senator Christine Milne points out, "... of total spending on transport in the coming year, a full 80% of the $4.2 billion goes to more roads, while only 4% goes to rail infrastructure. Roads get $4.3 billion next to a measly $187 million for rail.
"What is worse, over the coming years, the proportion to roads is set to increase, while rail funding will dry up to almost nothing — only $6 million by 2011-12.
"These priorities should be reversed to give Australians an alternative to paying through the nose for fuel", Senator Milne said.
Each day thousands of petrol-guzzling trucks tear up and down the highways and through the towns and the suburbs of cities carrying tonnes of freight that should be transported by rail. The rail infrastructure is not there — thanks to track closures and failure to plan and provide new infrastructure.
It is left to the states, who are also wedded to the petrol and coal industries. Privatisation of public transport also holds back the development of new services and results in existing services being limited to those that turn the fastest and biggest bucks.
People are being left behind at underfunded rail and bus services as increasing numbers of commuters abandon their cars and attempt to get to work by public transport. As petrol prices continue to rise, demand will increase, yet there are few signs that state governments are making provisions for this or attempting to provide the infrastructure needed.
Also missing from the budget were any provisions for mandatory emission standards on new cars.
The government will continue to give tax concessions on company car use, expected to cost $1.5 billion this year and continue to rise along with petrol prices.
As petrol prices rise, FuelWatch (see Guardian May 28) or cuts of a few cents to petrol excise would at best make only a few cents difference to the price of a litre of petrol. Any benefit to the motorist or cost of transportation of goods would be quickly lost in the first price rise after such measures were introduced. Petrol prices have risen by more than 35 percent this year. It is a bit of a gamble waiting to see if the US or a global recession might bring them down.
Production of oil has already peaked in Australia, and is fast approaching (if not already the case) that point globally. This month crude oil hit a record US$135 a barrel, a rise of over 100 percent in 12 months. The oil companies are pocketing record profits and the "experts" blame OPEC oil producers for holding back supply and rapidly developing China and India for pushing demand beyond supply. These western analysts tend to overlook the oil-guzzling practices of the industrialised nations whose economies have been built on oil as if it came from a bottomless well. They also pay little attention to the role hedge funds are playing as they manipulate oil prices.
World petrol prices are, as PM Rudd says, out of his control. But the development and promotion of alternative energy sources, of public transport and more energy efficient vehicles are things governments should be acting on urgently. The federal and state governments could be doing a great deal to develop environmentally sound renewable energy sources. The Rudd government should also be introducing legislation to make companies change their mode of operations to reduce carbon emissions.