Vikki Campion guest post. Protect our exporters

Instead of forcing farmers to catch and release mice hourly and sacrificing coal jobs to communist-linked corporations, next time we see a farmer or a miner we should be buying them a drink — preferably the Australian wine that China has banned.

Here’s why.

Office workers buying LG electronics from South Korea, BMWs from Germany or Mitsubishis from Japan won’t pay back the debt, nor will buying slave-made fast fashion from China. Our money is already in circulation and often going overseas.

The Upper Hunter, whose voters go to the polls today, will pay it back because it is only our exporters who bring in new money.

We don’t make Porsches and Audis like Germany, or Boeings and Cessnas like the US, we don’t have Samsung like South Korea, petroleum like the Netherlands or the financial brains of the UK — but we do have rocks.

We have red rocks, black rocks and shiny rocks — iron ore, coal, nickel, lithium and gold — where export earnings are expected to reach $296 billion in 2020-21 and our agricultural exports — beef, wool, lamb and crops — are forecast at $46 billion for the same period.

In a post-COVID world, without international tourists and students, it is manufacturing nations that need us most to fuel power stations, feed populations and build products. We can only do that by supporting our primary industries instead of demonising and restricting them.

Yet instead we have our Commonwealth seemingly intent on backing a Chinese state-owned corporation that wants to take the Port of Newcastle from a strategic asset, exporting almost all of NSW’s high-quality coal into a Belt and Road-initiative automated container terminal, putting 10,000 mining jobs in the Hunter Valley at risk.

On top of this, the edict is that we should revert 16 per cent of farmland to scrub.

But this isn’t enough for the extremists seeking to shut down our exports. The $600 million gas-fired power station at Kurri Kurri, welcomed by the community, is being slated as a coal subsidy when what has inspired this is the intent to make a grid that can cope with the intermittent power renewables provide.

Then we have the environmentalists in Far North Queensland, who prefer 36,000 Chinese-made solar panels over thousands of rainforest trees for the Daintree hydrogen hub, seemingly with the cognitive dissonance to separate from reality that all the component elements of the hydrogen hub will be mined, moved, smelted, manufactured and installed by fossilfuelled machinery.

The Gold-Membership-holding trolls known as members of PETA, forever tormented by the notion that they are not the centre of attention, are demanding we adopt a “catch and release” strategy for billions of mice, checking the traps hourly, because the rodents poisoning our water, fouling feed, stripping crops and destroying our properties, are “curious” with a “perfume-like scent”.

Meanwhile, with geopolitical risks and trade tensions, our exporters are suffering as we lead the world with production and compliance costs, with shipping costs for one local beef exporter increasing from $1500 to $9000 per container.

As we prepare to go to Glasgow, and face pressure from the US and New Zealand to sign another international emissions agreement, we must remember the products Beijing blocked from us are now being filled by them — the US is now supplying China with coal, timber and cotton, and New Zealand has helped itself to our market share of wine.

When activists pressure governments to stop new mines, the world’s new coal-fired power stations don’t sit idle. Instead our allies reap the financial benefits, and pay down their debts by supplying the coal.

There are 223 coal-fired power stations being built around the world, according to the Global Coal Plant Tracker, plus another 343 in “preconstruction” planning stages.

If we don’t supply them, our competitors will.

As risk increases, so do interest rates. Those who determine risk globally, Standard & Poor, and Fitch, have already given us a negative outlook which could lead to a credit rating downgrade in a few years, which means more expensive borrowing costs that inevitably are passed on to consumers. Only those who believe mice plagues smell of Chanel, and shading out rainforest with solar panels is green, would believe we can keep our AAA credit rating while shutting down our major exports.

Victoria’s budget this week is a warning of what is to come. After forcing the toughest lockdowns in the world on its people, the Labor government has now capped wages, will raise property taxes and fines and has the audacity to say that the government protected you and “now it’s your turn to make a contribution”.

Already economists are talking about increasing the GST, with the government debt to hit $1 trillion in the 2022/23 financial year.

If one man’s plague is another’s perfume, then the future is positively fragrant.

PS For your diary Why Wind Won’t Work. [Ed]

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48 Responses to Vikki Campion guest post. Protect our exporters

  1. FlyingPigs says:

    Great post Vikki C.

    What all Australian Governments are running are Sovereign Ponzi Schemes and perpetuating and facilitating fraud.

    Let alone the wanton destruction of the income base.

  2. Texas Jack says:

    The ongoing budget largesse, the wanton debasement of the foundation stones of federation, the near-constant pandering to the Photios Brigade, and now these hydrogen hub thought bubbles? Where do we go from here? Where are the Nationals in all this? McCormack has his head up Morrison’s arse 24×7. It’s all a sick joke.

  3. Rockdoctor says:

    Flying Pigs, Vikki’s partner is a big supporter of said ponzi, take a look at this weeks Q&A.

  4. Lurcio says:

    I still find it hard to comprehend that so few “activists” etc can destroy a once great and prosperous Nation like Australia.

  5. PeterW says:

    Before someone starts…. we don’t need subsidies. We need the government to get its’ greedy hands off our wallets. We need a tax system that taxes income and taxes it after it has been made.

    We don’t need a tax and regulatory system based on some haunting paranoia that investment in business productivity may somehow benefit the investor. That is actually the expletive-deleted point! Profit is not a dirty word.

    Nor do we need a system founded on the idea that an office-bound bureaucrat or ivory-tower academic has a better understanding of what constitutes acceptable risk, than the people who actually pay the price.

  6. Ed Case says:

    On top of this, the edict is that we should revert 16 per cent of farmland to scrub.

    It’s not a bad idea, if applied to Cotton Plantations on marginal land using scarce Water Resources.
    I suspect the target is prime Cattle Grazing land, though.

  7. Nebia Hill says:

    Bears repeating again, again and again…

    “Australia a first-rate country led by second-rate rate people who share its luck .”

    We should be the “Norway of the Southern Hemisphere.”

    Yes that Norway, who in the early 1970s went from being the “poor man” of Western Europe to the richest country per capita in the world in less than a generation.

    We have more natural resources than Norway could ever hope /dream/wish for.

    I repeat…

    “Australia a first-rate country led by second-rate rate people who share its luck .”

    Oh, the anger and the disappointment that I have for our “leaders”.

    Where is that “Norway” vision?

    Enjoy the decline citizens.

    And to top everything off, the inflation monster from the Keating era is waking from its long intergenerational slumber.

  8. rickw says:

    petroleum like the Netherlands

    We do, but most is inaccessible, not for technical reasons, just due to red and black tape.

  9. Cardimona says:

    Everybody has advised BJ not to grace Q&A with his presence.

    Everybody.

  10. Ed Case says:

    Far sighted people were saying 40 years ago that we would end up as serfs in a quarry, and we’re well on the way there.

  11. a happy little debunker says:

    All in favour of locals supporting local producers…
    But don’t let our trade devolve into the ongoing French farmer farce – where government subsidises production and the result is always demands for increasing subsidies…

  12. gardez bien says:

    I couldn’t agree more, a nation’s prosperity if built on exports.

    The only exports Australia has are minerals, wheat, wool, meat and wine. That’s it: Australia has nothing else the world needs or cannot get elsewhere, except tourism. All those bloated universities may find their cash cow students stop coming.

    One major problem is that governments, civil servants, academics and most economists do not comprehend this simple truth. They think wealth is created in a vacuum, simply by putting interest rates up and down or government borrowing and spending. They, all of them, are imbeciles.

  13. Gavin R Putland says:

    Our exporters are hobbled by taxes that must be recovered through prices. The only taxes that don’t handicap exporters in this way are
    (1) taxes on consumption, because they zero-rate exports, and
    (2) taxes on economic rent, because they don’t feed into prices at all.

  14. Judge Dredd says:

    Free trade has failed. It was always going to be the case. Bring on the tarrifs, it’s the only way.

  15. Rockdoctor says:

    We do, but most is inaccessible, not for technical reasons, just due to red and black tape.

    My understanding there is huge reserves of oil in the Arckeringa Basin, just locked up in shale. I have done some work with Linc Energy when they were an entity and know about the story when their offshoot SAPEX found it, unsure of how accessible it is though but we are talking about South Australia so greed & red tape alone probably never. A lot of Central Australia has potential just the exploration has been very limited.

    As for other hydrocarbons, off the Otways in Bass Straight has potential, Great Australian Bight, Hunter Basin off Newcastle and even up round Princess Charlotte Bay in FNQ are all areas with potential. Some under sustain attack by green activists with very deep pockets and others locked under National Park status.

  16. Ed Case says:

    The only exports Australia has are minerals, wheat, wool, meat and wine.

    Most Countries don’t have any of those, yet they still get on alright.
    Singapore, for example.
    I’d question Wine Exports though.
    If you took out all the subsidies, Tax breaks,environmental damage, scarce water resources used, does it even stack up?
    I’d doubt it.

  17. Rockdoctor says:

    “greed & red tape”

    Green, green not greed. Damn autocorrect…

  18. Spurgeon Monkfish III says:

    This stupid, stupid country.

  19. Carpe Jugulum says:

    I’d question Wine Exports though.
    If you took out all the subsidies, Tax breaks,environmental damage, scarce water resources used, does it even stack up?
    I’d doubt it.

    I don’t know about subsidies or tax breaks, but a lot of wineries are rainfall reliant and those that aren’t are on alluvial plains (upper hunter et al) and have river access for irrigation.

    The wine quality that Oz produces is superb and is bought throughout the world, i would say it does stack up.

    Mea Culpa – I have a large collection of Australian reds, they shit all over other countries

  20. exsteelworker says:

    “The IEA’s 287-page report released this month, “The Role of Critical Minerals in Clean Energy Transitions,” is devastating to those ambitions. A better title would have been: “Clean Energy Transitions: Not Soon, Not Easy and Not Clean.”

    The IEA assembled a large body of data about a central, and until now largely ignored, aspect of the energy transition: It requires mining industries and infrastructure that don’t exist. Wind, solar and battery technologies are built from an array of “energy transition minerals,” or ETMs, that must be mined and processed. The IEA finds that with a global energy transition like the one President Biden envisions, demand for key minerals such as lithium, graphite, nickel and rare-earth metals would explode, rising by 4,200%, 2,500%, 1,900% and 700%, respectively, by 2040.

    The world doesn’t have the capacity to meet such demand. As the IEA observes, albeit in cautious bureaucratese, there are no plans to fund and build the necessary mines and refineries. The supply of ETMs is entirely aspirational. And if it were pursued at the quantities dictated by the goals of the energy transition, the world would face daunting environmental, economic and social challenges, along with geopolitical risks.”

    So you all want fossil fuels banned and replaced by wall to wall rare earth mining and refineries for renewables?…..just Lithium mining will need a 4200% increase to satisfy demand and read the rest in the IEA report.
    Nightmare scenario if the world goes all out renewables. Killing the earth to save it. Be careful what you wish for kids, cause a future world covered in toxic manufactured worn out renewables and 1000s upon 1000s of new mines will definitely be a disaster.

    This is a comment i posted several times on SMH environmental columns. SMH so called ( journalists) even quoted the I.E.A but only cherry picked their favourite bits, “where all doomed if Australia doesn’t cut coal tomorrow bullshit.”
    Nothing, not once did they publish my comment. Even tho it contained a page from the same I.E.A report. They all should be held accountable when the ruinables crap hits the fan.

  21. Ƶĩppʯ (ȊꞪꞨV) says:

    The era of mental illness is upon us.

  22. HD says:

    Speaking of that PETA “catch and release” policy. My pet cat seems to have a best practice policy in place. It catches and releases them a few times. Consumes them, gets sick and then throws up all five or thereabouts it ate. Then returns to catch and release until it is nap time.

    Seriously though, I wish there were more snakes around. Haven’t been many around in the last few years. There are never mouse plagues when you step on a python or a king brown every week or so.

    This does highlight in my particular geographic location the half arsed pest mitigation and management policies of the Department of Lands and National Parks. The latter has blokes in a helicopter flying around for four days a month having a party emptying seemingly truckloads of ammunition into feral animals. Haven’t seen the 10-80 guy for quite a while. The Park and Forrest land management plans seem a bit lacking- there however does not seem to be any element of nor integrated plan to replace the feral animals with native ones that eat rodents. Such as the above or predatory birds like owls and kookaburras.

  23. Wallace says:

    This is worth reading twice.
    Some people I know may have to read it ten times to grasp it.

  24. old bloke says:

    We have red rocks, black rocks and shiny rocks

    Racist, you forgot the brown rocks (bauxite). Australia is the worlds largest exporter of alumina which is refined from bauxite.

  25. Boambee John says:

    Lurcio says:
    May 22, 2021 at 8:22 am
    I still find it hard to comprehend that so few “activists” etc can destroy a once great and prosperous Nation like Australia.

    The squeaky wheels get the grease, especially if they are prepared to threaten violence, and know that the police will do nothing about the threats.

  26. old bloke says:

    Rockdoctor says:
    May 22, 2021 at 9:47 am

    My understanding there is huge reserves of oil in the Arckeringa Basin, just locked up in shale.

    The oil reserves in the Arckaringa Basin are equal to Saudi Arabia’s reserves, Australia could become the world’s largest oil exporter. Getting the oil and gas out of the ground though through fracking requires something being forced into the ground to displace it, i.e., water, of which there isn’t much in central Australia.

    The Arckaringa Basin sits next to the lowest point in Australia, Lake Eyre, just flood the lake and you would have all the water you need to get the oil out of the ground. Build a canal from Port Augusta to Lake Eyre to flood the lake and to provide access to tanker ships to export it around the world. As an extra bonus, evaporation from the new inland sea would return as extra rainfall west of the Great Divide, which would greatly enhance farming in western NSW and Queensland.

  27. Gavin R Putland says:

    Judge Dredd, May 22, 2021 at 9:44 am:
    Free trade has failed.

    Free trade has failed.

    We have never had free trade. We have always had reverse tariffs. Even in those cases where we have got rid of tariffs, we have retained the reverse tariffs.

  28. Gavin R Putland says:

    Oops, please excuse the repeated quote.

  29. PeterW says:

    Judge Dredd says:
    May 22, 2021 at 9:44 am
    Free trade has failed. It was always going to be the case. Bring on the tarrifs, it’s the only way.

    Fool of an idea. Drives up production costs for all industries.
    Cost of living goes up for Australians.
    Export industries become uncompetitive.

  30. Fair Shake says:

    What this nation needs is an uphill water driven battery, batts in every roof and a multifunction polis. This is he only way the middle class can be supported in the manner to which it is accustomed. Tax our way to prosperity, it’s our only hope!

  31. Ed Case says:

    ***Bring on the tarrifs, it’s the only way.***

    Fool of an idea. Drives up production costs for all industries.

    Even if it did, that would flow into higher wages.

    Cost of living goes up for Australians.

    The politicallly acceptable way of saying “Higher wages bad.”

    Export industries become uncompetitive.

    Internal Industries disappeared once the Tariff Wall fell.
    The only way Exports stay competitive is by giving stuff away, soon we won’t even be able to do that.

  32. Nob says:

    Rock doctor
    As for other hydrocarbons, off the Otways in Bass Straight has potential, Great

    Australian Bight, Hunter Basin off Newcastle and even up round Princess Charlotte Bay in FNQ are all areas with potential. Some under sustain attack by green activists with very deep pockets and others locked under National Park status.

    Of those, Otway Basin drilling and production is ongoing ( too far west to be called Bass Strait though, Western approaches maybe) and all the others , especially the Bight, have been sabotaged by activists in the institutions (I’m looking at you NOPSEMA).

  33. Nob says:

    Quote function acting weirdly on mine too

  34. Judge Dredd says:

    Fool of an idea. Drives up production costs for all industries.

    You don’t know what you are saying. Look at the evidence around you. Look at the equation for GDP —> GDP = C + I + G + (X – M).
    Think – were all the nations in history terribly worse off when there was no global free trade?
    Stop thinking it’s a “good conservative idea” and really think what is a provable good from experience.

  35. gardez bien says:

    The only important bits in their GDP definition are I and (X-M). C is largely secondary although it does create businesses and jobs pf a largely domestic nature.

    The point of the article I’d say is that Australia has successful exporting industries but these are under attack. The wealth they generate bankrolls Australia and makes other investments viable. Tariffs have nothing to do with this.

  36. Entropy says:

    Nor do we need a system founded on the idea that an office-bound bureaucrat or ivory-tower academic has a better understanding of what constitutes acceptable risk, than the people who actually pay the price.

    Interesting. Does that mean stop offering $75,000 recovery grants every time a bit of wind pushes over the bananas, or a run in the creek washes away the flood fencing? That kind of risk?

  37. BorisG says:

    unsure of how accessible it is though

    There is currently only one place on earth where shale oil production is economical, that’s the USA, mainly from a few formations such as Bakker and Eagle Ford. And most of it is overpressured, resulting in higher porosity and higher matrix permeability, which in turn increases the amount of oil per cubic meter and eases extraction.

    Australia is already actively exporting and producing from tight sands and even that part of the story is struggling. Sure green tape is part of it, but geological conditions are not great either.

    With the overall decline of the global oil demand, I doubt anyone would invest in substantial transport infrastructure needed to make it a a reality.

  38. egg_ says:

    Everybody has advised BJ not to grace Q&A with his presence.

    Everybody.

    I pitied BJ, the Economics graduate with real world & Govt experience, and Tony Bourke being lectured on Central Bank debt by an ABC Comedian (Luke McGregor); BJ: “we should go out and have a cup of coffee” IIRC.

  39. egg_ says:

    Where is that “Norway” vision?

    Scummo just p1ssed a $Trillion up the wall on COVID.

  40. Rockdoctor says:

    but geological conditions are not great either.

    Fracking for gas in the Bowen Basin is pointless, I have been on a number of wellsites when DST’s have been performed. The permeability is that bad in Queensland that Arrow had to directional drill to make gas production viable around Moranbah. As for the Arckaringa Project, there are Artesian water issues I believe which aren’t an insurmountable problem especially if the casing is done right but as having nothing to do with the project when Linc ran it I can’t comment on the permeability of the shales. One can hope someone with lateral thinking comes up with a way around the problems.

  41. FlyingPigs says:

    My biggest take is that “The Crown” are unreasonably and quite fraudulently impoverishing the present and future population of Australia.
    https://www.americanthinker.com/articles/2021/05/the_need_for_a_nuremberg_for_communism.html

  42. Robert Wood says:

    Rockdoctor, you’d almost think that it would make more sense to dig up the lower-quality coal in the Bowen Basin instead of fracking it and process it via the Fischer-Tropsch process to create liquid hydrocarbons, as the South Africans did under the SASOL banner. But this will never happen as the greenies foam at the mouth if you mention the word “coal mine” – just look at the furour with Adani.

  43. Nob says:

    BorisG says:
    May 22, 2021 at 7:53 pm
    unsure of how accessible it is though

    There is currently only one place on earth where shale oil production is economical, that’s the USA, mainly from a few formations such as Bakker and Eagle Ford. And most of it is overpressured, resulting in higher porosity and higher matrix permeability, which in turn increases the amount of oil per cubic meter and eases extraction.

    Australia is already actively exporting and producing from tight sands and even that part of the story is struggling. Sure green tape is part of it, but geological conditions are not great either.

    The reason shale oil and gas has become economical in the USA is because of the sheer number of wells they drill has led to great technical and logistical efficiencies.
    The oil and gas shales haven’t become any less tight but the cost of extraction has continued to drop.
    Also, re-start costs in most locations are much lower than conventional drilling, so it’s very easy to suspend operations and return to them in response to price fluctuations or whatever.

    The green tape, or lack of does indeed play an important part in this.
    Average time for a well approval in usa is around 1 month.
    That has allowed them to build skill base, supply chains and technical efficiencies.

    Poland (EU’s best fracking prospect) – 6 months. Could never really get going.

    Australia – think of a number. Ten years if you like.
    This is deliberate sabotage.

    With the overall decline of the global oil demand

    Oil demand / consumption is down since Feb 2020 because of the lockdowns but long-term trend is still up.

    Interesting view from Gabriel Collins in Forbes.
    https://www.forbes.com/sites/thebakersinstitute/2020/04/06/oil-was-a-strategic-prize-in-1940-it-likely-will-be-in-2040-as-well/?sh=4bc90b646967

    As I’ve experienced it in forty + years in deep drilling (oil, gas, geothermal, and a few oddities like refined salt , Alpine tunnel ventilation shafts and nuclear waste disposal) , and been through at least three major slumps and many minor ones, and subsequent recoveries and occaisonal booms, there’s truth in his observation:

    Tough price cycles are Darwinian selectors among oil companies, not extinction events for the entire sector.

  44. Rockdoctor says:

    Robert Wood says:
    May 23, 2021 at 3:27 am

    When I was contacted to Linc before the faux par around Chinchilla which sank them they had plans to do just that but in the Surat Basin. I did some work at Walloway Basin in SA for them where they had similar plans with what they were trying to achieve at Chinchilla but the Eocene fine sands and accompanying aquifer in places were found to be sitting right on the target lignite seam. We needed at least 2m of the clays for the underground gasification to be viable without contaminating the groundwater. Regrettably Orroroo missed out, which was a shame lovely people in that town and they were very hospitable. Bent over backwards to assist us, I felt sad for them when I later learned the project had to be abandoned.

  45. PeterW says:

    Entropy says:
    May 22, 2021 at 6:03 pm
    Nor do we need a system founded on the idea that an office-bound bureaucrat or ivory-tower academic has a better understanding of what constitutes acceptable risk, than the people who actually pay the

    price.

    Interesting. Does that mean stop offering $75,000 recovery grants every time a bit of wind pushes over the bananas, or a run in the creek washes away the flood fencing? That kind of risk?

    Yep….
    Crop-insurance exists. I pay it for fire and hail every year. If I was guaranteed a government payout, I wouldn’t do it.

    I might also grow crops in higher-risk areas.

    Think about that, too.

  46. Nob says:

    Rockdoctor
    lovely people in that town and they were very hospitable. Bent over backwards to assist us,

    This is the same everywhere I’ve worked in oil and gas drilling in settled areas, from gas wells in NZ dairy farms, oil wells in Basilicata mountains, gas storage in rural Austria, onshore land-to-sea wells in Otway Basin, CSG fracking in dying Scottish coal mining communities etc etc. (They especially loved us in the fish and chip shops, B&Bs and the pubs)

    Most of the time there are no protesters because if it’s not hyped up in the news, few people even realise there’s a drilling operation going on, because the plain truth is it’s not destructive or even as disruptive as activists paint it in the media.

  47. Robert Wood says:

    My parents next-door neighbour used to work down around Mooney and out to Cunnamulla on the railways a few decades ago. He said that the oil that was pumped out of the ground at Moonie was that good that they used it straight out of the ground to run their diesel engines without the need for refining it.
    My understanding is that there’s still plenty of oil there, we’re just hamstrung by green tape which prevents us from utilising it, which then forces us to utilise oil sourced from overseas.
    This country is stuffed.

  48. Robert Wood says:

    Nob says:
    May 23, 2021 at 6:21 pm
    Rockdoctor
    lovely people in that town and they were very hospitable. Bent over backwards to assist us,

    This is the same everywhere I’ve worked in oil and gas drilling in settled areas, from gas wells in NZ dairy farms, oil wells in Basilicata mountains, gas storage in rural Austria, onshore land-to-sea wells in Otway Basin, CSG fracking in dying Scottish coal mining communities etc etc. (They especially loved us in the fish and chip shops, B&Bs and the pubs)

    Most of the time there are no protesters because if it’s not hyped up in the news, few people even realise there’s a drilling operation going on, because the plain truth is it’s not destructive or even as disruptive as activists paint it in the media.

    You’d find that pretty much all the so-called “local protestors” have their home addresses within the major cities. Just the typical play from the protestors – a minority that shouts the loudest and swamps the courts with injunctions to stop the projects, yet the majority of the locals want the projects to proceed in order to provide work for them and their kids.

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