Explanatory Memorandum

The purpose of this Bill is to remove the current Net Zero policy, its associated targets and supporting legislation, that is damaging the national economy and inflicting a higher cost of living on Australians. This damage will exponentially increase if the Net Zero policy settings continue.

The Bill seeks to revitalise Australian prosperity. If we do not repair the damage being caused by the current Net Zero policy, we will continue to exacerbate the cost-of-living crisis,continue to de-industrialise and narrow our economic base, further exacerbating sovereign risks by incapacitating our ability to contend with geopolitical threats to Australia.

The vast majority of the world does not adhere to Net Zero as a global policy. Countries adhering to Net Zero are fast becoming a peculiar minority, now only shared by Australia and a small number of countries in Europe. For most of the globe, Net Zero represents a talking point at appropriate venues for appropriate audiences - at best a future aspiration with no real supporting effort. Australia's current Net Zero policy approach will have no effect on theworld climate, while having a very major damaging effect on our domestic economy and cost of living.

We are now seeing the adverse effects on everything from the cost-of-living and the closure of major industries, to the removal of agricultural land from production, the division of rural communities, the reduction of reliable energy, the massive increase in power costs, the destruction to the environment, the closure of crucial manufacturing sectors, and a weakening of our capacity to defend our nation. These come without any prospect whatsoever of effecting the global climate.

In addition, the significant impact on the Federal budget is dire. Billions of dollars are being spent to subsidise foreign companies and domestic billionaires in the name of these failed Net Zero policies. Australia is using borrowed money underwritten by the taxpayer in secret commercial agreements to build intermittent power precincts for which only drive up power prices. These corporations are guaranteed a return that removes the market risk of a fall in revenue which is a risk that any small business in any other sector of the economy would have to wear. This income guarantee is initially paid by the taxpayer and ultimately paid by the consumer.

The recent disclosure from the Treasury to the ABC that there is no prospect of the economy in its current state of repaying government debt without an increase in taxes and a reduction in expenditure. Repealing Net Zero will bring a reduction in government expenditure and a reduction in energy prices - restoring business capacity to grow and employ more people.

There is no advanced economy that has successfully prevailed to provide intermittent power from solar and wind to the extent that Australia intends under its current Net Zero policy settings. Intermittent solar and wind power should have to compete (without government subsidy) with reliable base load (coal and gas) power.

The purpose of the Bill is to return our nation and our economy to a sensible and fiscally responsible footing, omitting the fanciful position that Australia can by domestic policy.

As many elements of the real costs of Net Zero are opaque, commercial-in-confidence or being absorbed by the end consumer, it is hard to determine the total savings from repealing Net Zero. The Institute of Public Affairs has estimated the costs to date are around $9 billion and increasing exponentially. Net Zero Australia, which comprises Princeton University, University of Queensland and Melbourne University, estimates that the costs (in this decade alone) to continue on the path to a Net Zero 2050 target, would be in the vicinity of $1.5 trillion. 

It is not possible for a highly functioning Australian economy to absorb this cost, let alone with the diminished economic base that the policy inevitably brings.

No responsible economic management of Australia should further entertain this folly.

Share Everywhere !

Shares