1 The Greens alternative Saving the planet and creating jobs John Kaye Greens NSW MP March 2013 vs

2 Where are the jobs?

3 The 'whole in the ground' economy Mining eats manufacturing jobs: ▫The rising $A ▫Cheaper imports ▫More expensive exports

4 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

5 Pop goes the boom Commodity prices fluctuate E.g. coal

6 Can't trust commodity prices Mining tax debacle Commodities price index ( ):

7 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

8 The mining boom: not much in it for us

9 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)

10 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 CO 2 ▫x $80/tonne = $68.8 bn climate damage

11 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

12 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

13 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

14 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

15 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.

16 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