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The Greens alternativeSaving the planet and creating jobs

John KayeGreens NSW MPMarch 2013

vs

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Where are the jobs?

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The 'whole in the ground' economy•Mining eats manufacturing jobs:

▫The rising $A

▫Cheaper imports▫More expensive exports

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The Resource Curse•Mineral exports drive up A$

▫Payments for minerals in A$ increases demand for $A pushes up value of $A

▫Interest rates kept high to attract foreign investment capital But also drive up A$

compared to US$, Euro, Yen with much lower interest rates

•Other industries cannot compete in high A$▫Especially manufacturing

•Sovereign wealth funds can help

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Pop goes the boom

•Commodity prices fluctuate•E.g. coal 2009 - 2012

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Can't trust commodity prices

•Mining tax debacle•Commodities price index (2000 -2011):

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Commodities: the roller-coaster that eats jobs

•Don't add much value in Australia▫Real wealth generated in other economies▫Does not add to advanced skills

•Vulnerable to mechanisation▫Decline in employment

•Wealth not held in Australia▫Mining industry 83% foreign owned▫$265 bn profits over next 5 years

$50 bn overseas $205 bn more mining more foreign ownership

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The mining boom: not much in it for us

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Resource export economy and neoliberalism gone mad

•Deregulated:▫Currency▫Labor market▫Finance sector▫Industry▫Environment

•Jobs boom and bust▫Shortage of skilled labour in mining areas▫High unemployment (e.g. Illawarra) ▫Job insecurity (Western Sydney)

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The ‘real’ economics of coal•Maules Creek coal mine •324 million tonnes of coal

▫x $100/tonne sale price = $32.4 bn value•877 million tonnes CO2

▫x $80/tonne = $68.8 bn climate damage

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Uncertain future

•Resource depletion▫25 years of known economic iron ore

•Long term demand can change▫Coal

Climate policy Cheaper renewables

▫Large capital investment•Deskills workforce•Concentrates wealth

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The Green alternative

•Invest in a new clean, smart economy▫Climate crisis transition to clean energy▫Growing inequality rebuild public

education▫Declining cities reinvent public transport

•Why?▫Save the planet▫Tame the economy▫Create jobs

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Wind, sun, coal and jobs

John Kaye Greens NSW MP 13

Jobs in NSW

Coal-fired electricity (including mining)

7,000

Renewables & efficiency 73,800

Jobs in NSW

Aluminum smelting 1,500

Rooftop solar 5,400

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How?

•Regulation:▫Close coal-fired power stations▫Energy efficiency

•Public investment▫Private capital too slow, risk-averse

• Industry policy▫Developing and locating new jobs▫Smart protection for new industries for export

•Unleash the power of collective economic action

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Won’t we all be ruined? – No!

•NSW coal electricity vs transition to renewables:▫Coal:

7,000 jobs x $35,000 tax revenue/job =$ 245 m in tax – subsidies

▫Renewables 73,800 x $30,000 tax revenue/job =$2,214 m in tax Plus more jobs in export

•Similar figures in transport etc.

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How to get there?•Change the debate

▫Reject neoliberal assertions Markets not always right Deregulation does not always deliver wealth Private investment not always superior

•Focus on real jobs and collective wealth▫Green economy delivers

More and better share of jobs Better security Greater opportunities for Australia’s future