A Green Budget From Rudd ?

The Rudd Government's first budget contained a number of green initiatives - subsidies for solar hot water and PV, incentives for landlords to insulate homes and more encouragement for rainwater tanks.

They also kept Howard's $500 million handout to our largest and most profitable industry, the coal industry, which might explain why Bob Brown said the "budget had nothing for renewable energy but was a boon for the coal industry". The Clean Energy Council was more enthusiastic, saying "Australia heads towards a clean energy future one budget at a time".

The budget also expects a surge in farm production and continuing growth in mineral exports.


A push to make households and business more energy efficient underscores spending on the environment in the first Rudd budget. The Government has delivered on its promise of "green loans" to help households become more energy and water efficient but the number of families who might get them will be limited. The low interest loans of up to $10,000 will help families invest in solar hot water, PV cells and other energy efficient products.

The environment and water budget is heavily focused on climate change committing $2.3 billion over the next four years to boost energy efficiency, water savings and the development of clean energy technology. Around $1.7 billion will be put towards a clean energy future but the Labor budget will maintain the $500 million promised by the Howard Government for a clean coal initiative. Labor does fulfill its promise to put $500 into a renewable energy fund.

The energy efficiency measures include the introduction of a ten star rating system for new household appliances, measures to help landlords insulate homes for renters to cut their heating and cooling bills and money to retrofit commercial buildings with more efficient lighting, air conditioning and heating. Rebates of up to $500 will, as promised, be given for the installation of rainwater tanks and the Rudd government will continue with a limited number of rebates for solar PV cells for 6,000 households next year and solar hot water systems. These will be means tested.

The budget confirms $12.9 billion will be spent on water reform over the next ten years. This includes at least $400 million over next two years to address the over allocation and water inefficiency in the Murray Darling Basin.

I need to study the proposals in more detail but it sounds like Howard-lite. It seems that if you want save a smidgin on energy and water you may or may not be able to borrow some money. Don't get knocked down in the rush. On the other hand if you want to create millions more tonnes of CO2 by building a bigger coal ship terminal then the govt will have a large cheque ready.

I can't remember if Rudd's '20 by 20' was 20% renewables or CO2 reductions by year 2020. Well this budget won't touch that so it looks like it will take spiralling prices and an economic slowdown. The short assessment is that Rudd is not fair dinkum on climate change.

The budget also expects a surge in farm production

Which if you follow the link...

Farm production was forecast to grow by 20 per cent in 2008/09, well up from estimates of two per cent growth in 2007/08, the budget papers for the upcoming financial year said.

"High world wheat prices and widespread summer rainfall are likely to encourage increased crop plantings, particularly as farmers aim to recover lost earnings from two poor seasons," the budget papers said.

Fields of dreams. Plant it and it will rain. Or to paraphrase the idiot from ABARE, if the price of wheat is high enough it will plant itself.

And as Gav highlights (from the SMH)

The Bureau of Meteorology's latest rainfall outlooks says: "The La Nina event in the Pacific Basin is weakening: computer models indicate a return to neutral conditions over the outlook period of May-July." At the southern end of the NSW grain belt there is only a 50 per cent chance of rainfall being above-average.

I agree with Boof. We have gone from the Rodent to the Ruddite.
Howards "Battlers ® " were appropriated and rebadged "Working Families ® ". A slightly more optimistic aspirational tag, which might just come back to haunt them should there be a recession.

In a similar vein, the Labour Party appropriated the libs corporate base and attached it to there union base by continuing to subsidise transport, minerals and coal.

RE Solar, Water
What's the point of throwing money at these problems if you also add 3 more hoops to jump thru? Means tested or not, a low income family is unlikely to install a solar system. Let the well off have a little subsidy to install the bloody things, if enough get installed the price might come down. And in any case, a saving of the resource has been made.

This obsession with 'not wasting the taxpayers money', with having to appear like 'effective managers' means that we are wasting time and energy in meaningless managerial measures/procedures when the real objective is to save water and energy.

And then we increase the defence budget.
Why? Who is going to invade us? We are exporting our resources faster and cheaper than it would be worth any countries while. The way the weather is shaping up... we might be exporting a lot less food in the future. If we weren't so busy supporting other invasions...

And let's not forget...
The Department of defence has shown its supreme managerial mastery by purchasing rusty boats requiring extensive rebuild, helicopters that don't fly and fighter jets that are inferior to cheaper Russian alternatives. All from US suppliers. Who are these guys working for?

It should be policy to immediately scale back the size of the air force... which will become the most expensive and unsustainable branch of the services. We are not going to have a natural gas powered airforce.

rant ends.

On looking at other Budget summaries eg http://www.news.com.au/story/0,23599,23693640-5012587,00.html
I think the climate part is a shameful exercise in procrastination and fudging. Therefore Rudd has broken his election promise to take decisive action on climate.

Of course they think no-one will check whether 300,000 landlords installed extra insulation in rental properties. They don't need $13m to research how the metals industry for example will be affected by carbon caps. I can tell you now the answer is the same as diet and exercise; it's tough but it pays off in the long run. So what the hell has PNG logging got to do with Australia's emissions? I'm picking up signals that the long awaited emissions trading scheme will be put off or watered down to this same kind of tokenism.

Memo to Rudd ... when you give the environment the same priority as the military we'll know you're serious.

I see the solar rebate will no longer be available to households where both adults earn the average wage under the new means test. Since it is not financially viable to install even a subsidised system at present costs, then how many do they expect to be installed by households earning below average wages? Really, the only people who could be expected to afford solar are the well off, and without that support I fail to see how there will be any sales volume to deliver longer term economies of scale (and accompanying cost declines) that could make solar affordable in the future.

I agree - their solar policies are very disappointing. The $8000 rebate was not means tested under Howard, so in reality they're offering less than the Liberals did for solar!

Furthermore there's absolutely nothing about a national feed-in tariff scheme. The "net" FiTs adopted by SA, QLD and VIC are designed to look good but actually deliver nothing to PV system owners. In NSW you can only earn the market rate in recompense for your clean energy, capped at 1750KW/H per quarter or $900 or so a year on present prices.

The only people who could put in decent PV arrays are those with large disposable incomes. There is no incentive for them to do so, as they're now ineligible for rebates and will not be rewarded for the power they generate. Without wealthier households adopting PV, the industry will remain stagnant in Australia while other, less sunny, countries go further ahead.

Meanwhile our booming coal industry gets even more government subsidies. It makes you weep.

Rudd is like the Taliban with a bumper crop of poppies. The government profits from the enemy of the human race while pretending that its going to do something about climate change. Give me a break. Go stand on a beach in Newcastle and tell me we're serious about this problem.

Australia is a coal junkie..

From a peak oil POV, the most disappointing aspects were:
- The incentive to drive more often remains in the Fringe Benefits Tax
- The tax break for imported SUVs stays
- The fuel excise remains frozen at 38c/L

Ok, so there wasn't a hope in hell of the last one changing, but putting an end to the first two rorts would have made a lot more sense than slapping on a luxury car tax. Just goes to show, energy issues aren't front and centre in the minds of the decision makers, but class warfare is.

I'll do an update on the budget now the real press reports are in.

I'd note I agree with the solar subsidy comments above - Rudd is proving worse than the Rodent so far.

I have a bad feeling about this...
That's no moon...

Note that in the speech given on Tuesday 'terrorism' or the 'war on terror' was not mentioned once.

That's it then. The war on terror is over... we are now fighting a new noun.

Did anyone notice?

We now have this whole 'inflation is the enemy' angle, and yet fail to see one prime root cause (ie oil). How many enquiries into, on one level disparate, but connected phenomena do we need?

I can not believe that the rebuilding Australia fund (or whatever its real name is) has sooooo many road building projects. This is insane.

Tonight on 7:30 report we had a union fella and an industry lady agreeing about the marvellousness of all this rebuilding... except the union fella seemed to be channelling Dick Cheney with his "our members will not accept a decrease in their standard of living" mantra when questioned about wages in connection to inflation.

The company Beyond Building Energy had developed a great supply chain and business model around the Government rebate. Their future must now be in doubt.

They approached reasonably wealthy suburbs and got 50 households in a small area to sign-up to solar panel installation, which enabled them to dramatically reduce the costs of delivering materials and installation.

I'm not going to lose any sleep over the Government cutting the tax exemption on condensate for the oil and gas companies, despite their justified annoyance at not being given any warning. But start-up businesses must have confidence that financial support is not going to be removed leaving them high and dry. We've shafted different segments of the renewable energy industry several times in this country already - there's no worse way to hinder developing industries than to keep changing the rules.

Let's have a proper bloody renewable feed-in tariff with some certainty that it's in for the long haul and then see what happens. Seems to be working pretty well in Germany.