Why everybody hates Mad King

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Will nobody think of Mad King? The cartel grovellers as the AFR will:

On Monday this week, when Madeleine King arrived at the Adelaide Convention Centre to speak at the Asia-Pacific Oil & Gas Conference, she needed an Australian Federal Police protective detail.

King is neither the prime minister nor immigration minister, nor any other traditionally contentious portfolio holder who at times requires extra protection due to threats. Until now.

When a federal minister unabashedly rorts the national interest in favour of a slavering, war-profiteering gas cartel using a Code of Conduct written by the same:

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…then jets off on a junket paid by the same cartel so that nobody can question her about the same dodgy deal:

…what do you think is going to happen when she gets back?

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It doesn’t stop there. The resources minister now needs a security detail just to enter a caucus meeting. On one hand, she’s being torn to shreds by Ed Husic and the AWU. On the other hand, ALP greenies have her in the crosshairs:

Labor’s influential environment lobby is calling on the government to help households electrify their appliances to eliminate the need for new gas projects, escalating the party’s internal stoush over fossil fuels.

The policy push opens a rift between the group – whose patrons include Treasurer Jim Chalmers and Employment Minister Tony Burke – and Resources Minister Madeleine King, who says new gas fields are needed to increase the volume of gas available to the local market.

…The Labor Environment Action Network was co-founded by Assistant Minister for Climate Change and Energy Jenny McAllister.

Its co-convener, Felicity Wade, said new gas was “just a really bad idea” and called for government-funded programs to help households switch from gas heating.

The network’s analysis of government statistics found household appliances across Australia used 166 petajoules of gas a year.

Swapping gas-fired household heating to electric could save 90 petajoules of gas consumption a year, and hot-water heating another 65 petajoules, LEAN said.

This was more than double the 70 petajoules of gas forecast to be produced annually by Santos’ controversial Narrabri field in NSW, she said.

LEAN also contends that a reduction in household gas consumption would help the federal government deliver on its election commitment to revitalise manufacturing by freeing up supply for large gas users, which are warning that current high prices are driving them out of business.

Sadly for the well-meaning LEAN, it will do no such thing. Mad King has not addressed the fundamental problem of an export cartel supplanting the local gas market. Hence, all that making more gas available will do is send it offshore, keeping the local price sky-high. And because gas is the marginal price-setter in the NEM, those converting to electricity will be rogered on their power bills instead of gas bills.

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As things stand, the capture of Mad King by the cartel has guaranteed:

  • the end of Australian manufacturing;
  • the decline of Australian national security;
  • the slowest and most expensive possible energy transition for the economy;
  • state Balkanisation of the NEM;
  • no energy security for either Australia or its export customers;
  • and, the most possible anger directed at herself and Albo from all quarters.

If she keeps going like this then Mad King will need an ADF cordon and air cover for protection.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.