Vapour, Rays and Draft won’t pay the nation’s bills

“He {Labor federal Treasurer Jim Chalmers} has warned that the budget cannot rely on temporary revenue windfalls from high export prices for iron ore, coal and gas.”

…..but Australia is heavily reliant on those commodities, their exports and the tax revenues.

This plays into the pragmatic comments Greg Sheridan made in his article titled “Our Climate Fantasy” dated July 30, 2022 (The Australian newspaper).

To paraphrase some of the article,

‘Australia has many projects set to go and it is important that Prime Minister Albanese rejects bans for the commencement of new gas and coal projects’.

“Resources and minerals are irreplaceable in our economy”

“moving to net zero will be expensive and reduce our living standards”

Australia needs to continue to develop its resources to help pay for the running a country this large (in area).

Whilst there is no capital gains garnered from the largest (subsidised) asset class in the country, being owner-occupied residential real estate, revenues from a dwindling individual tax paying base let alone the manufacturing or financial are not enough to cover the gap.

One needs to keep in mind that Australia can’t export solar, wind or hydro energy.

How reliant is Australia on ’these’ commodities?

Of the total credits of goods exported (FY 21-22) being $534 billion, metals ore and minerals ($172bn), coal $113bn), other metals ($14bn) and fuels ($87bn) accounted for $386 billion or 72% of all exports. (source: Australian Bureau of Statistics) 

And as reluctance to finance new project grows in lock step with shareholder ESG related pressures, the opportunities lie with the incumbents in those industries.

Climate activists are seemingly unaware of the financial and commercial reality behind notions such as government receipts, or being the lowest cost producer, the cost of building alternative power sources and the need for base load power for the modern world many enjoy.

I don’t think exporting fitness supplements, television programming, insurance or financial services adds up to much.

p.s. don’t bother replying to me using your laptop, mobile phone or internet connection let alone physical mail for it all requires some form of hydrocarbon, silver, silica, copper, chemical….in order for the message t0 be constructed and sent. If you are reading this, you are likely to be utilising many or all of those components.

Ahhhh…is carrier pigeon considered animal cruelty?

September 24, 2022

bv Rob Zdravevski

One Response to Vapour, Rays and Draft won’t pay the nation’s bills

  1. Bernie Masters says:

    Hi Rob,

    Sheridan writes “Climate activists are seemingly unaware of the
    financial and commercial reality” but I can assure him that activists
    are totally aware of what their demands will force on Australia and the
    world. They simply don’t care if we suffer a lower standard or living,
    especially if it means that some of our industries are moved to
    developing countries who, like China, will be allowed to continue
    pumping out CO2 for many decades into the future.

    Thanks for for blog articles which are always very interesting.



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