43% Emissions Reduction Bill Transcript
What will happen is there’ll be a big rush of investors back into the market now to back batteries, solar panels, windmills, anything about where the government handouts, wherever the government’s handing out money. It’s just going to be a free for all.
So I think Pink batts, school halls, all the crap that Labor did last time, and it’s just going to be a free for all there.
Let’s talk about the recent, you kind of mentioned it before, but the emissions reduction bill that got passed, essentially, maybe, not essentially, but it did make it law about the emissions reductions bill.
So what does that actually mean and what’s going to happen in terms of rent seeking and everything else?
Yeah, so labour got their 43% by 2030 bill through the Senate last week. I think it was last Thursday, which basically means now that it’s law and everything that happens has to now match up with our target.
So we want to build a new coal mine or a new mine in general.
They got to look at it and go, well, that’s going to increase emissions. Like, we might not approve it because we can’t meet our 43.
And Qantas has already started doing this, Virgin’s doing it, Jetstar is, they’re already cutting flights. The little leprechaun at Qantas has already come out and said that Qantas will cut 10% of flights this summer to reduce its carbon footprint. And that’s because of this 43% bill.
We’ll start seeing other delays in other transport, as we’ve talked about. I think last week we talked about this as well. So this thing is going to have a real impact on our society.
Now what will happen is there’ll be a big rush of investors back into the market now to back batteries, solar panels, windmills, anything about where the government handouts are, wherever the government is handing out money, it’s just going to be a free for all.
Pink Batts school halls, all the crap that labour did last time, and it’s just going to be a free for all there.
Expect More Mass Power Outages Amongst Other Things
But what’s also going to happen is we’re going to have mass power outages. They’re already talking about it now. I think it was on the weekend, the New South Wales Power Authority actually came out and said we’re probably not going to have enough power for summer, so people start taking up the advice of turning the air conditioners off and turning your pool filters off and not charging your electric vehicles so you won’t be able to get to work, so how’s the economy going to work?
Factories will have to turn off and shut down. I think it’s a big foundry in South Australia. I think it’s working four days a week from seven days already because of the shortage of electricity.
So, yeah, it’s just little things like this that this bill now puts in the law, we’ll start seeing court cases over it. So we’ll start really seeing the activists use this law to try and shut businesses down, try and shut stuff down and just create havoc inside the economy through their activism.
What Should Business Owners be Mindful of?
All right, well, in summary, based on what you were saying, what type of, for any business owners that’s listening to this, what industries would you want to be really mindful of for any business owner with all this law passed?
I’d want to be a big business, because you’re not going to get hammered as much. I really fear for the small mum and dad businesses, like restaurants, food producers, plumbers, electricians, all the small guys, because they’re just going to have so much put onto them.
I’ve mentioned this before and I’ll say it again. If you’ve got five friends that are tradies, team up and try and grow your business bigger, to get yourself above a level where you’re not going to be impacted as much and that sort of stuff, and it goes for any business.
Try and grow a bit, so you’re not a one man band. You should be doing that for wealth generation anyway.
But I think the more you grow, the bigger you get, the easier it’s going to be to weather this storm.
The Push for EVs Conflict with this Law
So for this push for electric, just electric vehicles. Right, so we’re just talking about demand for batteries for electric vehicles.
With the 43% passing, and Sydney and Melbourne has come out and said they’re going to do it, Canberra is already doing it, which is the getting rid of fossil fuel vehicles by 2030-35.
I think Canberra wants to do it by 2030, everyone else by 2050.
It means that in Australia alone, just to meet the demand for Australia in our little part of the world, we need to open 330 new mines dedicated to copper, nickel cobalt, lithium, what else was there? Selenium and all that sort of stuff.
Now, the problem we’ve got, is at the moment, it takes 10 to 15 years to get a bill passed, sorry, to get approvals to set up a mine. So they want to have EVs in place and everyone running them by 2030. It’s now 2022. Just to get the approvals for the mine is 10 to 15 years.
So that’s 2037, right. So that’s seven years past their deadline. But before that, you’ve got to do all the exploration and everything to find it, which could be another ten years.
So that’s 2047. So how are we going to meet the demand? Do these guys think they just go and it comes out of thin air?
No one who was putting these policies through have a clue about where the materials needed come from and the process to actually get them in there.
I’d be investing in a shoe factory, probably, because no one’s going to be driving.
Everyone’s going to be walking or go back to buggy whips and horses, because nothing makes sense at the moment.
Assuming it follows the average time frame, it will be like a 17 year period where people just won’t be able to drive or move around?
Well, you just won’t have the well, people will, but only people that can afford a car that they’re going to pay $400,000 for because what they’re going to do, so this bill in Australia alone is going to drive up the demand for batteries, demand for solar panels, wind panels, electric vehicles.
But when I say electric vehicles, I’m not just talking about cars. Cars, busses, trucks, planes. And we do know EV tails are coming. I was just on a call with a couple of guys before I jumped on here about an EV tail start up that they want to sell me.
And that’s something that we’re going to look at, and those for freight. So they’re coming.
Trains, more electric trains.
So we’ve got two problems. We’ve got one, we’re shutting down our reliable base load, dense fuel source, energy supply, which is coal. We won’t have uranium in discussion in this country, stupid. And gas, we export it all overseas. Except WA is the only one that has a gas reserve, and we won’t do anything. So that’s the thing.
Oh, yeah, I forgot. All our tractors, all our farm machinery, all everything that produces food runs on electricity, right? So now, where there’s generators running cold rooms and that on site, they have to become electric because you won’t be able to use the diesel power generator.
So I don’t know where they’re going to get everything from. So as the demand for all electrification and stuff goes up, supply is going to meet it, or otherwise price goes up as well. The old supply and demand curve. Anyone who’s done Economics 101, it’s a simple thing.
As demand goes up, supply is going to follow it, or otherwise you end up with a shit fight in price going through the roof. And that’s what’s going to happen. So the only people that are going to be able to travel are those who can afford a $400,000 electric car, or the government’s going to step in.
And this is where the rent seeking comes in, and this is where Elon Musk and his crew will turn around and go, yeah, cost us 400 grand to build those cars. But Mr. Government, if you want us to sell them to 50 grand, you pay us the other 350.
So they will happily build those cars, forever and a day, but they would need to be subsidized to get there.
One thing I did notice today, because the little car that I’m currently borrowed from one of my businesses, it’s a little MG ZS thing that I wiggle myself into it, but it’s a nice little car made in China.
The amount of people that I’ve said goes, oh, that’s a great little European car, and none of them have clicked that it’s made in China.
The other thing that they just released is a fully electric vehicle. Now, the largest electric car producer in the world is a company called BYD in China. They’re also the largest battery manufacturer in the world for electric vehicles and SAIC, The Shanghai Automotive Corporation, Shanghai Investment automated corporation that owns MG, they own a stake in BYD. They definitely do joint ventures with them.
So MG has now brought out this electric car. It’s on sale here in Australia. It’s quite a reasonable price and it’s going to have a really good battery in it. Now, that is going to be a game changer. Tesla keeps getting all the rave about electric cars, but the actual biggest producers of electric cars in the world aren’t Tesla. They’re basically in China and India at the moment.
So watch this space. It’s going to be very interesting.
Will the Push For EVs Result in More Taxes?
Definitely will. And one thing I’m interested for myself more say so is that obviously with everything moving electric, especially vehicles, the starting point is that that will mean public transport will also move to EV. So will that have any effect on taxes?
Because obviously that will cost a lot of money to implement.
100%. Yeah. So as rent seeking and as they’ve got to keep stimulating, they’ll keep changing and taxing people and that’s going to happen. They’ll change, well, they’re already talking about it. So the stage three tax cuts that were supposed to come in for those earning was 120 grand a year or more. They’ll scrap those.
So those on a greater income are going to pay more tax compared to everyone else. But we all know those that earn more are the ones that contribute more already. The people at the bottom and actually don’t contribute much, I forget what it is. It pretty much follows the 80/20 rule, which everything in life does.
About 80% of the income comes from about 10% to 20% of those that have been taxed. 80% of those that put tax returns in actually get money back or don’t pay any tax at all.
So it’s crap. The system is rigged against those who are out there to work hard and want to make something in themselves. We’ve always known that the income tax system is there to rob you of your money.
Well it goes back to what you’ve been saying the last few weeks is that it’s just part of a plan to destroy the middle classes where it’s all heading.
And the middle class will always wear it because those right at the very top, the top 5% income earners, they have all the skills and knowledge and all that sort of stuff to really reduce the tax, they know how to play the game.
The ones at the bottom don’t care, so it’s always that group in the middle, which is the middle class that are working hard to get ahead, that end up getting screwed because they’re working hard to get ahead. They don’t think of all the other bits and pieces that are involved, which is quite a shame.
If There’s Havoc, Will Governments Modify the Bill?
And the final question of the day is going back to electric vehicles, I think we both know you’ve got to know the answer to this one, but when a government approves a bill that creates havoc, like what you described with the emissions and electric vehicles, the move to that, do you think the government will modify or change that bill if they see it creating havoc?
Sometimes they do, sometimes they don’t.
So once the bill is passed and it’s legislated, then if there’s ever future amendments to the bill, yes, they do happen, they happen all the time, most legislation that is passed that goes through governments at the moment is amendments to bills. They’re not actually fresh new bills. I would say it’s probably one in ten is a fresh new bill, the rest of them are all amendments to old bills.
So, yes, it does happen. Now, that doesn’t mean that it’s going to make it better.
Sometimes they make it worse by doing changes.
Sometimes it’s like software, they put a bill out, and I’ve seen this happen a few times, actually, especially at state government level. They put a bill out to try and plug a hole in something and then they know that over, say, the next two years, they’ll roll out a heap of amendments to that bill to keep plugging the hole, and so they get the first bit in, then they keep rolling it.
But, yeah, it does happen. It happens quite a bit.