DIGGING stuff out of the ground and shipping it overseas has long been a mainstay of Australia’s economy. So it is rare for governments to place curbs on such wealth. Australia banned iron-ore exports for 22 years until 1960 to protect its steel industry. It still limits where it will send uranium, but only to comply with nuclear non-proliferation rules. Last month, however, Malcolm Turnbull’s conservative government said that it may restrict exports on another commodity that Australia holds in abundance underground: gas.
Mr Turnbull likes to present himself as a champion of free markets. But in energy policy, he is backtracking. He has justified introducing what he calls the “Australian domestic gas-security mechanism” in response to soaring electricity prices. This could result in export controls being imposed early next year. There is no clear evidence that limiting sales abroad will help bring down the cost of energy at home. But Mr Turnbull wants to look as if he...Continue reading
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