Opinion 
 Blogs 
 National Comment 
 Too gutless to give us the bad oil 

Too gutless to give us the bad oil

I think I've stumbled on a new law of politics: the harder life becomes in this capitalist economy, the more our supposed leaders soft-soap us. The harsher it gets, the harder they try to persuade us we're living in a Sunday school where no one plays for keeps.

Take the carry-on about petrol prices. Neither side of politics is prepared to speak the obvious truth about them.

Instead we have them endlessly doing their I-feel-your-pain routines (which, of course, they don't because they're on high incomes and, in any case, have most of their travel costs picked up by the taxpayer).

There's little the politicians could or should do to reduce petrol prices, but you simply can't get them to admit it. Instead they pretend there's something. Brendan Nelson would cut the excise on petrol by five cents a litre tomorrow - if only he were in government.

Kevin Rudd will consider cutting the goods and services tax on the petrol excise - worth almost four cents a litre - and he'll let us know his decision in about 18 months' time.

What neither side will admit is that, because small cuts in petrol taxes would cost a fortune in lost revenue, they'd simply shift the problem elsewhere. And with prices changing so often, the relief they offered motorists would be forgotten within days.

Then we have grown men and women arguing furiously for a fortnight about a price watch which, at best, would cut the price by about two cents a litre. And don't think that argument's over yet.

Rudd's latest solution is he's going to press the G8 to press Organisation of the Petroleum Exporting Countries to pump more oil. Bet that's got the Saudis worried. Have you noticed the way Rudd and his ministers won't give a straight answer to questions? Consider this exchange between Wayne Swan and David Speers of Sky News.

Speers: So, more expensive petrol is a good way of getting people to stop driving as much?

Swan: You shouldn't be putting words into my mouth, David.

Speers: Well, let me ask you then, is it a good way of getting people to drive less?

Swan: Well, what we're going to do is put together our emissions trading scheme, we've said that it should be as broad as possible, we'll publish the green paper, there'll be a lot of data and discussion of all these issues. When they're out there on the public record, I'm happy to have a much more detailed discussion with you, David, about all of those issues.

So now we know.

The trouble with all this soft-soaping is that it encourages the ignorant notion it's the government's job to solve all our problems. It hurts - fix it!

People don't get on with facing up to their problems because they imagine it just a matter of waiting for governments to act. And then the pollies wonder why the punters increasingly regard them as liars and cheats. Why their cynical behaviour breeds cynicism.

Despite the politicians' obfuscation, the plain truth is obvious: one way or another, petrol prices have got nowhere to go but up.

Prices will probably continue to fall back occasionally, but there doesn't seem much doubt that global demand for oil will continue to outpace the global supply of oil.

And that's just the half of it. The thing I find most disillusioning about the Rudd Government's performance is its weak-kneed pretence that the latest rise in oil prices is some kind of hideous natural disaster, brought upon us by a terrible god inflicting death and destruction on the innocent.

This is not a brave government. What it lacks the courage to admit is that the price rises global market forces have been inflicting on us are merely a foretaste of the price rises the Government plans to impose on us through the emissions trading scheme it will introduce in 2010.

The basic principle of such schemes is brutally simple: they force up the prices of fossil fuels so as to discourage us from using them. That's what Swan was refusing to admit in that interview.

It's possible, of course, the Government will lack the courage to include petrol in the trading scheme. But that would mean the price of electricity rose even more than otherwise. No coward's way out there. The necessary response to the present global rise in the price of petrol and to future price rises engineered in the cause of fighting climate change is the same: not so much driving less as using less petrol.

The first thing that means is moving to a more fuel-efficient car. But it also means making more use of public transport, bicycles and even shanks's pony.

Until recently, however, we've been doing just the reverse. Even as the price of petrol has risen by 45 per cent over the past five years, the price of new cars has fallen by 7 per cent (after allowing for the extra tricks each new model does), so we've been buying more of them.

In 2007, sales of sports utility vehicles were up 16 per cent, with sales of other cars up more than 6 per cent. Gas-guzzling sports utilities now account for about a quarter of total car sales. Including commercial vehicles, annual sales topped a record one million.

According to the CommSec car affordability index, it takes a worker on the average wage just over 32 weeks to buy a new Ford Falcon, the lowest reading in 24 years.

Over the four years to March 2007, the number of registered cars in Australia grew at the average rate of 2.5 per cent a year, taking the total to 11.5 million. Average fuel consumption improved only fractionally to 11.4 litres per 100 kilometres, but we now have 1.4 cars per household.

All that while petrol prices have been rising and politicians have been too lily-livered to warn us they have further to go. Only since the start of this year have rising petrol prices and interest rates obliged people to pull back.

New car sales are now falling and the quantity of petrol bought in the first three months of the year fell by more than 5 per cent.

And now we discover that people are piling into over-stretched public transport, catching our all-caring leaders quite off-guard.

Great leadership, chaps.

Print
Increase Text Size
Decrease Text Size
Page:
1

Comments


Date: Newest first | Oldest first
I agree totally with Ross. The government is being weak. They know that oil will run out eventually and or only the rich with be able to afford it. We need more public transport in the city and the country which gets forgotten. We need to embrace right now alternate technologies this minute. We forget that our economy is totally fueled by oil that means everything. Even the big trucks that dig up the coal that makes our electricity. Not to mention that our cities, towns and houses are all set up for the oil economy. It's amazing to me that there is plenty that we all could do and I find it quite exciting but our governments are lagging I wonder what world are they living in.
Posted by country greenie on 11/06/2008 4:20:56 PM
Yes perhaps the government is being gutless but does it have a choice given that there is a lack of bipartisan agreement that peak oil is the problem, that emissions trading should include fuel, that alternative energy supplies need to come on stream urgently. The problem is that voters are selfish and will change their vote based on a mirage that the opposition paints for us. We need leadership from both parties so that we can be saved from ourselves. Media could help by ending its relentless pandering to the worst human instincts. Start by helping break the perceived nexus between government and fuel, electricity and water charges then we could pay real prices for these products and governments would be free to do stuff other than bickering over which party can best foster our continuing "head in the sand" Neroism.
Posted by Farmer Mick on 12/06/2008 2:41:46 PM
Kevin Rudd has to recognise what it means to be prime minister. The downside is you can't get away so much with populist rubbish (eg fuelwatch) etc because you're expected to be more responsible. The upside is as the prime minister what you say automatically carries more weight. People expect leaders to tell us the truth even if it unpleasant and they are respected for it (as long as they they do it in an appropriate manner). Rudd should tell us that petrol is only likely to go up over time and get credit for fostering changes to prepare us for it. If he doesn't, he will continue to be goosed around by the populous crap that Brendan Nelson has come out with about cutting excise etc
Posted by James on 12/06/2008 10:58:52 PM
It seems Ross has all the answers, not for me though. No matter whose in Government alot of other countries are experiencing the petrol price, if people are so worried about the price of petrol why are they still driving into take away food venues when that money could go towards petrol, it mustn't be too bad for some.
Posted by sobeit on 13/06/2008 1:18:20 AM
There is a lot of angst in Ross Gittins message, and much truth, however it misses the most significant factor in the oil price spiral. Speculation in the Financial Derivatives (Futures) market has been the major cause of prices going through the roof. ie Gambling on forward prices. That and the USA's insatiable appetite for fuel ,both at home and in its so-called "War on Terror." Bin Laden's objective, all along, has been the destruction of the US, and western world's, economies and way of life. And, no one, least of all Kevin Rudd, is going to stop George W, or John McCain helping Bin Laden in his stated aim.
Posted by Charles Flessey on 13/06/2008 7:28:48 AM
Hmm, life would be a lot more simple if only I were Amish! I wouldn't care about oil for a start...
Posted by Ben on 13/06/2008 3:59:12 PM
Australia has become such a pampered society, we just refuse to face the ugly truth - talk about the boiling frog syndrome. When reality bites - and it will everybody will say "why didn't the government do somehing years ago". Humans never learn
Posted by Uma on 13/06/2008 5:22:51 PM
what about the transport company that can't get a rate increase. Not many companies have been able to get rises despite what you see on tv
Posted by ken on 13/06/2008 7:53:06 PM
Governments are only as strong, or as weak as we allow them to be. The populists motives behind Rudds/Howards/Keatings/Hawke..... governments have been allowed by the myopic, self centered and increasingly fractured voting public (dare i say 'working families') . In an environment where the fourth estate (yep, your industry Ross) is increasingly determining public opinion its hard to see any class 'consciousness' any time soon. Personally, I can see only good coming out of higher oil prices. Real change needs to be 'economically rational' to succeed. It took GM 2 weeks of high oil prices to dust off the electric car when 20 years of political agitation from green groups did zip. Unfortunately, its always the poor that really burden the cost of change. Any one say, history repeating itself.. yawn...
Posted by Chris on 14/06/2008 8:53:25 AM
Looks like we have stirred up a wasp's nest. Rising cost of the crude oil is a retaliaton by the oil rich countries against the politics of the Western world. It is certainly making an impact on our style of life. Wait untill the tea and coffee growing countries find out, that we have become addicted to it. Then all we can afford will be a cup of desalinated (if the desalination plant goes ahead), or recycled water for breakfast.
Posted by George on 14/06/2008 12:07:27 PM
1 | 2  |  next >
National Comment
Here is the place for you to vent on any national or world news and lifestyle stories on the YourGuide websites. If there is anything you see or hear that you like or don't like, tell us. Don't keep it to yourself!
I think I've stumbled on a new law of politics, writes Ross Gittins.
I think I've stumbled on a new law of politics, writes Ross Gittins.

8:43 AM AEDT | ALL my best friends, past and present, are blonde. Some are ash blonde, others honey blonde and one or two are blonde by their own design.
PHOTO SALES
 
Innes Motors
 
Scoop up a great rate online at Regional One
 
fox personnel
 
Ron Poyser
 
Best Employment
 
Bendigo Access Employment
 
MyCareer
 SEND...
 SAVE...
 SHARE...