“At least 14 years ago, our political leaders were told that there was an urgent need to address the crisis in business confidence, in the energy and energy-intensive manufacturing sectors, due to the absence of credible long-term policies to address carbon abatement.
This is Ken Henry, quoted in an extraordinary story in the Australian Financial Review today.
Since then the center-left Labor party enacted a carbon tax, which was then repealed almost immediately upon the center-right Liberal party taking power.
The Liberal government then failed to enact another scheme that was designed to give “confidence” after the party balked. They did not attempt to enlist support from the Labor party.
What’s missing is the realisation that uncertainty is not some exogenous factor, but stems from the fact that there are many points of view. As a result, merely barrelling over political opponents isn’t going to solve anything.
When the Liberals are in power the uncertainty stems from the fact Labor will eventually get in and do something, and when Labor are in power the fear is that it will all eventually be undone. Barring a switch to one party rule, the only way to end political uncertainty is to work together.
Or, as it appears businesses are now doing, cut out politicians altogether:
…They have been talking among themselves about establishing an industry-led, self-regulating set of measures which would reduce emissions, ensure energy reliability and provide investor stability, all of which politics has failed to deliver.