Dryland farmers offered a boost

Farmers and other land holders will be able to generate carbon credits by establishing mallee plantings, under new arrangements that the Federal government announced today.

The Parliamentary Secretary for Climate Change, Yvette D’Ath, and Minister for Agriculture, Joe Ludwig, said this would help landholders in areas that receive an average rainfall of 600mm or less.

“Landholders in these areas will be able to generate Australian carbon credit units by establishing permanent mallee belts or forests through direct seeding or planting tubestock,” they said.

“Just like other commodities, they will be able to sell these units to businesses wanting to offset their carbon pollution, or to companies that sell carbon-neutral products,” they added.

Mr Ludwig said the benefit of these new arrangements would extend far beyond an additional source of income.

“By incorporating shelter belts or forests where appropriate, farmers can lift the overall productivity of their land, reduce dryland salinity, wind or water erosion, provide shelter for livestock and enhance biodiversity,” Minister Ludwig said.

The Methodology Determination is available from the ComLaw website and project applications may be made to the Clean Energy Regulator.

Further information on the Carbon Farming Initiative is available at http://www.climatechange.gov.au/cfi

China wants our skills, too:PM

Australia’s importance to China is not just based on iron ore and coal, the Prime Minister, Julia Gillard says.

Addressing a Davos Connection Forum in Melbourne tonight, Ms Gillard said China’s “big challenge in the years ahead will be to rebalance its economy.”

China needs to diversify its economy and deliver benefits to a burgeoning middle-class.

“ So our skilled people and their expertise are important to China,” Ms Gillard said.

“Australians bring advice and experience in urban planning and construction.

“We are ready to meet the massive demand for skills in areas like water management and sanitation.

“And we have public policy expertise in carbon market design, retirement income systems and the provision of health and welfare services.

“We’re unusually good at these things,” the Prime Minister said.

“Our world-leading service industries are important to China,” she added.

“If we just had iron ore and coal, China wouldn’t be inviting our banks to trade on the mainland.

“If it was all about minerals and gas, China wouldn’t be pursuing the trading of our currency.

“On April 10 – the first day of direct currency trading – $250 million worth of trade was conducted.

“Ten times the value of the indirect trade the day before.

“Australia is a leading world economy – and we are a leading country in our region.

“If it was all about raw materials, our Navy wouldn’t be the first Western partner for live firing exercises with the PLA-Navy.

“We wouldn’t now be preparing for annual ministerial meetings on foreign and strategic issues – or for strategic policy exchanges.

“Just as Australia has a diverse and resilient economy with a strong future beyond the peak of the mining investment boom – so our relationship with China is broader than our resource trade and our importance to China is not simply that of an energy supplier,” Ms Gillard said.

And in an oblique reference to Tony Abbott, who she did not mention by name, Ms Gillard added a warning.

“Talking ourselves down doesn’t help us achieve our goals and it isn’t well grounded in the facts either,” she said.

“Neither is our nation presented by insoluble strategic challenges or problems we don’t understand and can’t confront,” the Prime Minister added.

Woodside report denied

The Federal government has denied a report that it is prepared to do a special deal on revenue sharing, on development of Browse Basin gas resources, if the Woodside led consortium pursues its development through a “floating technology” option.

The report, which appeared in The West Australian today, said WA would be offered a multi-billion dollar slice of Federal petroleum taxes if the consortium behind the $40 billion Browse natural gas project formally switched to floating technology.

The Federal and State governments have both made it clear that they want to see LNG resources in Western Australia’s Browse Basin developed, even though Woodside, announced last week that it would scrap its plans to develop a $40 billion onshsore natural gas plant at James Price Point, on cost grounds.

The Federal Minister for Resources, Gary Gray, a former Woodside employee, made no secret of his disappointment at that decision.

However, he said today that: “claims in The West Australian that the Commonwealth has agreed to a revenue share from the Browse project are untrue.

“There is no offshore LNG proposal before the Commonwealth Government, so any assumptions about how revenues will be allocated are premature and pure speculation,” Mr Gray said.

The newspaper said the Commonwealth Government and coalition are both prepared to negotiate splitting the 40 per cent petroleum resource rent tax from Browse with the WA Government.

“There is no offshore LNG proposal before the Commonwealth Government, so any assumptions about how revenues will be allocated are premature and pure speculation,” Mr Gray said.

Woodside’s decision on economic grounds to dump its plan for a big onshore gas hub at James Price Point also upset the West Australian Premier, Colin Barnett.

He threatened to strip Woodside of State-controlled leases over Browse.

But Mr Barnett says he is not “punishing” the company.

“No, we want to see that gas developed,” he said.

“We want to see that gas come ashore.

“What are you going to do about it because the gas belongs to the people of WA, not to Woodside.

“The leases have been extended in good faith and legally they can expire.

“Now I don’t think that’s going to happen, but what I’m saying is that in negotiating their extension, that will be a new negotiation.”

The Premier said there would be massive opportunities for WA if the James Price Point hub was built – jobs, fabrication, maintenance, supply contracts and the $1.5 billion Aboriginal benefits package.

“Why would we sit back as a State or a country and say, ‘Here’s one of the world’s great natural resources or natural hydrocarbon resources, off you go and in 10 years time pay us a bit of tax’,” he said.

PM takes tough line on carbon tax

The Federal government has set aside a business call for abolition of its fixed carbon tax of $23 a tonne.

The Australian Industry Group made the demand after the EU parliament rejected a controversial call to make European polluters pay more.

Its Chief Executive, Innes Willox, said linking internationally now would cut Australia’s carbon price from its present level of $23 a tonne, to just $4.

He said this would reduce local electricity prices by more than 1.5 cents per kilowatt hour.

Reporters questioned both the Prime Minister, Julia Gillard, and her Treasurer, Wayne Swan, on the implications of the EU parliament’s decision.

One asked the Prime Minister if it put Australia’s emissions trading scheme is under threat.

Ms Gillard said:”We are just doing what we said when we legislated carbon pricing.

“We are in the fixed price phase of the scheme.

“And we will move to emissions trading on July 1 2015.”

A reporter told Mr Swan that the carbon price in Europe had plummeted to about three Euros ($A3.81) and asked what that meant for Australia.

Mr Swan replied:”We will examine that in the context of preparing all or our forecasts for the (May) budget.

“And we always go back and look at the assumptions that underpin those forecasts.

“And we will do that in the normal way.”

Browse Basin will be developed:Gray

The Federal government says it is still confident that LNG gas resources in Western Australia’s Browse Basin will be developed, despite Woodside’s decision not to proceed with its plans for James Price Point.

The Minister for Resources and Energy, Gary Gray, said: ““The Browse project has the potential to benefit State and Commonwealth revenues, the Kimberley region and the Australian economy, as well as add significant capacity to Australia’s LNG export industry.

“Ultimately the decision on the development concept is a commercial one for the Joint Venture, provided it can meet the requisite regulatory requirements,” he added.

Mr Gray said he is still confident that the Browse gas resources will be developed.

“The gas and condensate fields in the Browse Basin were discovered in the early 1970s and the road to developing them has been a long one.”

Mr Gray says he now expectsthe National Offshore Petroleum Titles Administrator, in the Department of Resources, Energy and Tourism, to now provide advice to him and the WA Minister for Mines and Petroleum on the implications of Woodside’s announcement.

“The Joint Venture’s five retention leases are currently in Year 4 of the five-year term and are due to expire in December 2014. The Joint Venture was required by conditions on the retention leases to be in a position to take a final investment decision on the James Price Point development concept by June 25, 2013,” Mr Gray said.

“It is not appropriate and would be prejudicial for me to speculate on the outcome of any consideration by myself and the WA Minister for Mines and Petroleum of any future applications regarding the retention leases”.

The winners – and a new insider

Julia Gillard admitted today that she had been “appalled” by the disunity displayed within the Federal Labor party last week.

However the Prime Minister also declared that she would head “a government of purpose and unity” in future.

“We are the only political party prepared to face up to modern challenges,” Ms Gillard said.

“We are the only political party capable of strengthening the economy and managing it in the interests of ordinary people.”

Ms Gillard made these declarations, as she announced a reshuffle, forced on her by events following last week’s spill.

These culminated in the departure of four senior ministers, who had been branded as disloyal, after declaring their support for Ms Gillard’s long time rival, Kevin Rudd.

Ms Gillard showed no “mercy” for any of them, in her reshuffle, although Mr Rudd’s  had suggested it, at the weekend.

All are now backbenchers.

The Prime Minister said there are better times to come.

“In the months ahead, I am confident that we will show a sense of purpose, not disunity,” she said.

The big winners from today’s reshuffle are Gary Gray and Anthony Albanese.

Gary Gray joins the Cabinet as Minister for Resources and Energy, Minister for Tourism and Minister for Small Business.

Anthony Albanese is promoted and takes on the critical role of Minister for Regional Development and Local Government, taking over the work done by Minister Crean across regional Australia since the 2010 election.

Critically, a highly qualified backbencher, Andrew Leigh, joins Ms Gillard’s inner circle, as her Parliamentary Secretary.

Leigh, who jokingly describes himself as “a lapsed economist,” is also a qualified lawyer, with expertise in public policy.

Ms Gillard said the critical human capital and productivity portfolio of Minister for Tertiary Education, Skills, Science and Research would be taken by Craig Emerson.

“Craig will retain his current roles as Minister for Trade and Competiveness and Minister Assisting the Prime Minister on Asian Century Policy,” Ms Gillard said.

She said Dr Emerson would be be assisted by two junior Ministers – Don Farrell, as Minister for Science and Research and Sharon Bird as Minister for Higher Education and Skills.

There will be important administrative changes, too.

“As part of today’s changes, the Department of Climate Change will be merged with the Industry Department,” Ms Gillard said.

It will become the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education.”

Federal government upgrades protection for water resources

The Federal government is to upgrade protection for water resources which might be threatened by coal seam gas, or large coal mining developments.

The Environment Minister Tony Burke said this will be done through changes he is proposing to environmental law.

The Greens said they will support Mr Burke’s plan, but also declared that they will be seeking even more protection, through their own initiatives.

Mr Burke said: “Australia’s water resources are among our most vital natural resources and it is important that we ensure they are protected.

“The proposed amendments will ensure that coal seam gas and large coal mining developments must be assessed and approved under national environment law, if they are likely to have a significant impact on a water resource,” he added.

“The community expectation has always been that we would take this into account,” Mr Burke said.

“This change gives me as Australia’s Environment Minister the capacity to do just that,” he added.

Mr Burke’s move is now before Federal parliament.

Flood assistance announced

Disaster relief will be made available in eleven local government areas in New South Wales that were  hit by severe coastal storms at the weekend.

The Prime Minister, Julia Gillard, and State Premier, Barry O’Farrell, made the announcement today.

In a joint statement, the two leaders said:”This is the second major flood event northern NSW has experienced this year and it is important we support the region’s local communities as they recover.

“The damaging winds and heavy rainfall along the east coast of NSW has resulted in severe wind damage and major flooding in a number of areas along the coast between Byron and Kiama,” they added.

The areas declared are:-

• Ballina
• Bellingen
• Byron
• Camden
• Clarence Valley
• Coffs Harbour
• Kempsey
• Kiama
• Nambucca
• Port Macquarie Hastings
• Randwick

The two leaders said their declaration triggers a number of disaster assistance schemes to help with the cost of storm relief and recovery.