The Forum > Article Comments > The only way forwards is backwards: A budget reply > Comments
The only way forwards is backwards: A budget reply : Comments
By Cameron Leckie, published 17/5/2011australia needs a budget that halves our oil consumption over the next decade, eliminates the greater proportion of the debt currently outstanding and halves our population over the next half century or so.
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Too true, but there are two factors giving hope - potential for improving the efficiency of our energy use, particularly in energy-intensive industry; and the potential for widespread and innovative harnessing of solar energy. Solar energy collection and utilisation must be considered to be still in its infancy, and I feel certain ways will be found to make solar an extremely productive input. Geothermal and tidal or wave power may also become effective, and further tapping of hydro must be possible. With these, once the infrastructure is in place maintenance should not incur input other than from renewable sources. And finally there is thorium or uranium.
My best thought so far on how to achieve these innovations is through government collaboration with industry to plan both efficiency measures and alternatives development - employing both grants and tax concessions as incentives, on a proposal by proposal basis. Much like with the Murray-Darling, investment in efficiencies can achieve a large part of the relevant objectives.
130-150% deductability or rapid amortisation (depreciation) of capital inputs could be a massive incentive to industry, particularly if price control on outputs was also implemented - as say for electricity - and if staged efficiency targets were implemented, with penalties for non-compliance. To me, the best bang for the buck would be for government to employ project engineers to vet and oversight implementation of efficiency and innovative projects, rather than employing accountants to oversight a carbon tax.
As a measure for containing budget costs, a possibility may be for industries receiving concessions or grants to agree to repay this in future profitable years - say like a Hex, bond or term loan.
Necessity is the mother of invention, and we need visionary thinking and entrepreneurial capacity to meet the energy challenge. Solar electric and solar hot water for every home, and for offices etc should also become mandatory in future years - in my humble opinion.