Howard's energy vision: big bucks for BHP

November 17, 1993
Issue 

On July 17 PM John Howard, in an address to the Committee for the Economic Development of Australia (CEDA) at the Sydney Convention Centre, outlined his "vision" for Australia's energy future. "As an efficient, reliable supplier, Australia has a massive opportunity to increase its share of global energy trade — with the right policies, we have the makings of an energy superpower", he said, arguing that Australia should look to increase its coal, liquified natural gas (LNG) and uranium exports.

Howard noted that Australia's energy exports will generate $45 billion in export earnings in 2007, three times as much as its agricultural exports. He went on to note that Australia is the world's largest exporter of coal, accounting for 30% of world coal exports.

"We have significant reserves of natural gas and, on industry estimates, could be the world's second largest LNG exporter by 2015", he said. Australia is currently the world's fifth largest LNG exporter. Howard also noted that Australia has 40% of the world's low-cost uranium ore reserves and that powderised uranium — yellowcake — is "already Australia's second largest energy export in terms of energy content".

Earlier this year, Howard argued that Australia needed to look to the possibility of using nuclear power to supply its future electricity needs, supposedly to counter the global warming effects of carbon dioxide emissions from its present reliance on coal-fired power stations.

In his July 17 speech, however, Howard made it clear that his government envisages continued reliance on fossil fuels to supply Australia's energy needs well into the future. "Coal, oil and gas will continue to meet the bulk of Australia's energy needs", he declared.

The Coalition government, he said, has "outlined a suite of measures aimed at lowering the cost of a broad range of low-emission technologies. The flagship is our $500 million Low Emissions Technology Development Fund designed to leverage large-scale demonstration of clean fossil and renewable technologies."

However, the great bulk of this research money will be spent on fossil fuel rather than renewable energy technologies. Indeed, Howard said that "Australia must aspire to be a world leader in clean coal technology" and that this was the government's "long-term national priority" in domestic energy policy. This also fitted in with its international energy goals, which were aimed at gaining "an increase in the share of global energy demand accounted for by fossil fuels".

The purpose of Howard's call for a "rational debate" about nuclear energy is really aimed at reducing public opposition to a massive increase in Australia's exports of uranium to provide fuel for an expected large increase in the use of nuclear power plants in other countries, particularly India and China.

In his July 17 speech, Howard made this clear, tying his arguments in favour of nuclear energy to Australia's uranium exports. Referring to the task force established in June to "review" Australia's role in the global nuclear industry, Howard said: "I believe the opposition expressed to this inquiry both at political and other levels is hypocritical... because it says that while Australia will not use uranium, we are very happy to sell it to other countries and let them deal with the consequences."

Howard also argued that this opposition "is weak because it responds to immediate and potentially transient [he hopes] public reaction".

What Howard did not note in his speech to CEDA is that the biggest exporter of Australian coal is Australia's wealthiest corporation, BHP Billiton, which is also the owner of the world's largest uranium deposit — at Olympic Dam in South Australia. Neither did he mention that BHP will be the big winner from the implementation of Howard's "vision" for Australia's energy future. Of course, he didn't need to tell the "business leaders" who dominate CEDA that. Most of them, after all, would have substantial shareholdings in BHP.

From Green Left Weekly, July 26, 2006.
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