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  • UK prepares for risks of a BP collapse

     

    The company employs 10,105 UK staff directly and generated tax receipts of ₤5.8 billion ($10.5bn) in 2009. It also owns much of Britain’s most critical energy infrastructure, including the Forties Pipeline System that connects more than 50 oil and gas producing fields in the North Sea.

    In addition BP controls vital strategic assets overseas, including the Baku-Tbilisi-Ceyhan pipeline that bypasses Russia and Iran to connect Europe with the rich oil and gas resources of Azerbaijan and the Caspian region.

    As well as the political ramifications stemming from a collapse of BP, the government is also concerned about the impact on millions of British pensioners for whom the company’s dividends have served as an important plank of their retirement income.

    David Cameron and Chris Huhne, the Energy Secretary, are set to discuss BP’s future with US officials during a trip to Washington on July 20.

    Speaking in Toronto at the G20 on June 25, Mr Cameron warned that BP faced potential destruction unless US authorities stepped in to prevent its compensation costs escalating out of control.

    The Department for Business declined to comment on the contingency plans, which are believed to still be under discussion and have encompassed a range of subjects from pension arrangements to the future of BP’s international empire.

    A person familiar with the talks said: “It is not clear how bad this will get, but the government needs to be prepared for any eventuality.”

    BP already faces crippling costs from the accident but if the leak cannot be plugged by drilling a relief well, there is a growing threat of a takeover, with ExxonMobil and Royal Dutch Shell touted as the most likely candidates.

    One insider claimed that one possibility mooted was whether, under extreme circumstances, the government should consider intervening to protect BP, which was a nationalised company until 1987.

    Such an approach would raise the prospect of a bailout similar to the rescue of RBS and other stricken lenders during the 2008-09 credit crunch.

    BP dismissed fears of a collapse.

    “We will recover from this, but there are undoubtedly going to be big changes in the way the company and the industry operate,” a spokesman said.

    News of the discussions surfaced as BP insisted that it had no plans to issue new shares, either to strategic investors or in the form of a conventional rights issue, despite the huge financial pressure caused by the spill.

    However, the oil giant did say that it has been actively encouraging sovereign wealth funds and other potential investors in the Middle East to acquire shares at the present depressed price.

    That interest was reflected last night when a senior Libyan official suggested that the government of Colonel Gad-dafi would consider an investment in BP.

    Shokri Ghanem, chairman of Libya’s national oil company, said: “BP is interesting now with the price lower by half and I still have trust in BP.”

    Several of BP’s largest shareholders had expressed concern at suggestions that it might consider selling a stake to a third party, such as the Kuwait Investment Authority.

    One said: “I would be very surprised; it would be disastrous. This is the worst possible time for them to raise equity – their shares are hugely undervalued.”

    BP shares closed up 3.5 per cent in London overnight.

  • Gillard and Abbott locked in race to bottom-Greens

    “Onshore mainland processing of asylum applications provides the most
    humane and efficient way to determine who is a genuine refugee and who
    is not.”

    “Julia Gillard’s continued suspension of processing of Afghan
    applications is cruel and her East Timor “Pacific Solution” is unfair.
    It is simply unfair to expect the poorest nation in our region, East
    Timor, to carry the humanitarian load of a nation as lucky and wealthy
    as Australia.”

    “No ‘regional partnership’ will be effective in offering protection to
    those genuinely in need, unless the Government increases the numbers of
    refugees to be resettled in Australia. Without an increase to the
    humanitarian intake, refugees will be trapped in detention centres in
    other countries while Australia washes its hands of responsibility.”

    “Rather than assessing people’s need for protection at the source, the
    Gillard ‘pacific solution’ will simply ship  people off to another
    country, out of sight out of mind. This might be a political fix for the
    Government, but it will only compound the suffering of innocent people.”

    “While it was good to see the Prime Minister finally put the facts on
    the table, it was heartless not to back these up with policy,” said
    Senator Hanson-Young.

    Senator Hanson-Young also expressed dismay at the Coalition’s policy:

    “Mr Abbott’s response is more of the same cruel policies of the Howard
    years. Lots of tough talk, without an ounce of reality – beating up on
    the little guy.” 

    “Tony Abbott’s announcement in relation to asylum seekers’ papers and
    his plan to turn boats around show he has no comprehension of the
    circumstances under which refugees flee persecution or the
    responsibilities we have to protect them,” Senator Hanson-Young
    concluded. 

    Media comment: Robert Simms – 0427 604 760
    _______________________________________________
    GreensMPs Media mailing list

  • Andrew Macintosh’s dissection of Tim Flannery’s latest sillyness

    Worth reading Andrew Macintosh’s dissection of Tim Flannery’s latest
    silliness:

    12. Flannery on the CPRS: separating fact from Flannery
    Associate director of the ANU Centre for Climate Law and Policy Andrew
    Mcintosh writes:

    CLIMATE CHANGE, CPRS

    In the Sydney Morning Herald on the weekend, Professor Tim Flannery
    attacked the Liberals and the Greens for their positions on the Carbon
    Pollution Reduction Scheme (CPRS), calling them liars and stating that
    their claims are “just plain wrong”. In the interests of an honest and
    accurate debate, I decided to see whether I could find any errors or
    untruths in Flannery’s article. It wasn’t hard. After extracting the
    errors, there is not much left of the article. Set out below are details
    of his biggest howlers (in the order they appear in the article).
    Claim: “If implemented, it [the CPRS] would see Australia emitting 5 per
    cent less greenhouse gas in 2020 than it did in 2000″.
    Fact: Wrong. If the CPRS was introduced with a 5% target, Australia’s
    emissions would probably increase. However, Australia’s net emissions —
    domestic emissions less imported offset credits — would decline. Provided
    the imported credits represent actual abatement, they will not undermine
    the environmental integrity of Australia’s target. Yet the extent to which
    these credits will represent actual abatement is still uncertain and, to a
    large extent, will depend on the outcomes from the current international
    negotiations.
    Claim: Nicholas Stern’s analysis suggests that “humanity is set to be
    emitting 48 billion tonnes of CO2 by 2020 – up a mere billion tonnes from
    today’s 47 billion tonnes”.
    Fact: Wrong on two fronts. First, Flannery uses incorrect units. Current
    emissions of carbon dioxide (CO2) are about 36 billion tonnes (Gt), not 47
    Gt. He presumably meant emissions of carbon dioxide equivalents (CO2-e).
    Second, Stern’s analysis does not show that “humanity is set to be
    emitting” 48 GtCO2-e by 2020. Flannery refers to a recent article by Stern
    in the New York Review of Books as his source. The full details of Stern’s
    analysis are contained in a paper co-authored by Chris Taylor (a senior
    economist in the UK Department of Energy and Climate Change) that was
    published in March 2010 by the Grantham Research Institute and the Centre
    for Climate Change Economics and Policy.
    The paper concludes that global emissions are likely to be 48.2 GtCO2-e in
    2020 but only if all countries adopt and achieve their highest targets, no
    surplus emissions allowances are carried over from the first commitment
    period of the Kyoto Protocol, there is no double counting of mitigation
    commitments, the rules regarding terrestrial carbon do not weaken the
    level of ambition and economic development in developing countries follows
    current expectations.
    These caveats on Stern and Taylor’s projections are of critical
    importance, a point they stress. Combined, the caveats almost represent
    the difference between the projected 48.2 GtCO2-e and emissions under
    “business-as-usual” conditions. And to suggest that all of these areas of
    uncertainty are going to fall in favour of a strong mitigation outcome is
    extremely optimistic; some might say delusional. Even if the analysis is
    confined to whether all countries will adopt their high-end target, it
    takes an eternal optimist to believe the international negotiations are
    headed for this sort of outcome. For example, Australia’s target range is
    5%-25% reductions below 2000 levels by 2020. Yet discussion of Australia
    going beyond 15% has all but dried up. Similar dynamics are playing out in
    other developed and developing countries.
    Claim: “To avoid dangerous climate change (a warming of less than 2
    degrees) we need to reduce emissions to about 44 billion tonnes by 2020.
    This could be achieved if Europe agrees on its planned 30 per cent target
    rather than the current 20 per cent, and the US and other developed
    nations increase their own targets by a few percentage points”.
    Fact: Wrong. Stern and Taylor’s conditional estimate of 48 GtCO2-e already
    assumes Europe and every other party that has a conditional pledge adopts
    and implements their high-end target. Stern makes this point in his
    article in the New York Review of Books when he states, “If countries
    deliver their ‘high intention’ reductions, the plans submitted to the
    Copenhagen Accord would result in global annual emissions of about 48
    billion metric tones of carbon-dioxide equivalent in 2020″.
    To bring global emissions down to 44 GtCO2-e in 2020, both developed and
    developing countries need to raise their pledges significantly — a few
    percentage points within the current range is not enough. For developed
    countries, the pledges currently add up to cuts of between 10%-14% below
    1990 levels. As analysis by the Intergovernmental Panel on Climate Change
    (IPCC) has shown, to provide a realistic chance of keeping warming to 2°C,
    the aggregate reduction in developed countries has to be greater than 25%.
    Current pledges fall well short of what is required.
    Claim: “If Australia increased its target from 5 per cent to between 7 per
    cent and 15 per cent, we could rightly say we were contributing our fair
    share to the global target. This is a far cry from the Greens’ unrealistic
    demands for 25 per cent to 40 per cent cuts.”
    Fact: What constitutes a “fair” contribution to a 2°C outcome is
    subjective and there is no universally accepted method for “equitably”
    distributing the global abatement burden among countries. Having said
    that, the notion that Australia could adopt a target of 7% for 2020 and
    say it is making a fair contribution is difficult to defend. Under
    Flannery’s approach, Australia’s per capita emissions in 2020 would be
    almost three times larger than Europe’s and four times the global average.
    Other developed countries are unlikely to accept such a low target, to say
    nothing of developing countries.
    Claim: The CPRS is one of the emissions trading schemes “with the fewest
    give-aways of free permits” in the world, “with 70 per cent to be
    auctioned”.
    Fact: In the early years of the CPRS, the proportion of free permits
    issued to coal-generators and emissions-intensive trade-exposed industries
    would be about 30%. However, by 2020, the proportion of free permits
    allocated to these industries would rise to about 50%.
    Claim: “The Greens argue that allowing industry to offset emissions into
    forestry and agriculture is a kind of get-out-of-jail card for polluters.
    Again, this is not true. Offsets into agriculture will have to be real,
    and will come at a cost”.
    Fact: The rules regarding terrestrial carbon offsets have yet to be
    determined for the post-2012 international climate regime and the CPRS.
    Therefore, it is impossible at this stage to say whether these offsets
    “will have to be real”. Under the present international regime, one of the
    main issues with terrestrial carbon offsets is “additionality” — the
    offsets often do not represented an actual decrease in emissions or
    increase in removals beyond what would have occurred under normal
    circumstances.
    Claim: Emissions trading schemes do not impose any costs on the economy.
    In Flannery’s words “It is increasingly clear only one thing changes when
    emissions trading schemes are introduced — the level of emissions”.
    Fact: Wrong. The only way this could be correct is if there was a
    limitless supply of zero cost abatement. If there was, we would not need
    an emissions trading scheme.
    Send your tips to boss@crikey.com.au or submit them anonymously here.

  • Gillard’s goal: wreck people smugglers

     

    The opposition leader’s claim the Howard government actively turned boats back was wrong, she said.

    Just seven boats were turned back by the Howard government and the last was turned back in November 2003, Ms Gillard said.

    Only seven boats were turned back under the Howard government, and none were turned back after 2003, because of the realities of the situation, Ms Gillard said.

    ‘‘To avoid being turned around, boats are sabotaged, raising safety of life at sea concerns for Australian customs and border protection and defence personnel as well as the asylum seekers on board,’’ she said.

    ‘‘The second practical reality is that there is nowhere to turn the boats back to.‘‘Indonesia has made it clear that it will not accept such returned boats.’’

    Ms Gillard says the division on the issue is creating an impasse.

    ‘‘If you are hard headed you’re dismissed as hard hearted, if you are open hearted you’re marginalised as supporting open borders,’’ she said.

    ‘‘I say to those engaged in this type of rhetoric, stop selling our national character short, we are better than this, we are much better than this.’’

    She said the focal strategy of turning boats back would become an operation of rescuing children from the water. So the policy would not work.

    She said the boats must be stopped before they reached our shore line, from their point of origin.

    Like all global challenges this one could only be tackled by working together. She said Australia was working with its regional neighbours and the UNHCR to deal with the problem.

     MS Gillard said talks were already under way with East Timorese President Jose Ramos-Horta to establish a processing centre for asylum seekers.

    Ms Gillard has commissioned a report on “sustainable Australia”, acknowledging that each region has different population needs.

    She said the population debate should not be constrained by political correctness.

    ‘‘It would be to ensure that arriving by boat does not give anybody an advantage in the likelihood that they would end up settling in Australia or other countries in the region,’’ she said.

    Ms Gillard said she had also spoken to New Zealand Prime Minister John Key about the possibility of a regional processing centre for asylum seekers.

    ‘‘John said to me that he would be open to considering this initiative constructively,’’ she said.

    ‘‘East Timor and New Zealand are vital countries in this initiative, as they are already signatories to the refugee convention.

    ‘‘And New Zealand, like Australia, is a key resettlement country.’’

    Ms Gillard said she canvassed the idea with United Nations High Commissioner for Refugees Antonio Guterres as well.

    Opposition unveils ‘ no documents, no entry’ policy

    Asylum seekers who deliberately discard their passports before arriving in Australia will be turned away under a coalition government.

    The opposition today announced two new prongs to its border protection policy.

    Opposition immigration spokesman Scott Morrison said a coalition government would not tolerate asylum seekers who throw out their documentation.

    “If someone wants to do that and seek to take advantage of Australia’s generosity, then we won’t be giving them the green light,” he told ABC Radio today.

    “What we will be doing is making them come back and provide even greater reasons as to why their case should be accepted.”

    The coalition would also seek to bring more “objectivity” to the refugee approval process by taking the decision away from immigration officers on Christmas Island, and giving it to the minister, Mr Morrison said.

    “It’s not just no decisions that can be challenged, but also yes decisions if the minister believes that there is a need to do that,” he said.

    Asylum seeker rhetoric ‘alarmist’: lawyer

    High-profile human rights lawyer Julian Burnside told Sky News the coalition’s “alarmist” rhetoric, such as the term “border protection”, was designed to make Australians fear asylum seekers.

    Ms Gillard could win the election by taking a “principled stand” on the issue, Mr Burnside said.

    “There are some electorates where there are people who think it would be a good idea to send the boats back at gunpoint,” he said.

    “I would regard that as a redneck attitude.

    “If there are a few people who would rather see asylum seekers blown out of the water, well, I’m not sure that their views ought to govern the government’s policy.”

    Liberal senator George Brandis said Mr Burnside’s view was “condescending” to people with legitimate concerns.

    “Not only does it not assist the debate … to stigmatise those people as rednecks, it in fact inflames it by saying that those people are not entitled to their point of view,” he told Sky News.

    Small Business Minister Craig Emerson agreed the “redneck” label was unhelpful, but also objected to Senator Brandis’ language.

    “It is not unlawful to seek asylum by boat in Australia,” he said.

    “He is part of this process of loading up the show with emotion, taking about illegal boatpeople, unlawful arrivals, I don’t think that helps.”

    AAP

  • Gillard”s asylum stance ‘risks losing votes to Greens’

     

    It was a very deliberate shift in Ms Gillard’s language on the issue of asylum seekers on the weekend.

    “I’d like to sweep away any sense that people should close down any debate, including this debate through a sense of self-censorship or political correctness,” she said.

    “People should say what they feel and my view is many in the community feel anxious when they see asylum seeker boats and obviously we, as a Government, want to manage our borders.”

    Indigenous Affairs Minister Jenny Macklin and backbencher David Bradbury say the Prime Minister is calling for a mature debate.

    “She wants to have an open conversation with the Australian people about these issues,” Ms Macklin said.

    “They are issues that Australians have many different views about and I think what she’s wanting to encourage is a mature debate about them.”

    But some Labor MPs see echoes of Mr Howard’s initial approach to the rise of One Nation founder Pauline Hanson, such as this from September 1996:

    “One of the great changes that has come over Australia in the last six months is that people do feel able to speak a little more freely and a little more openly about what they feel. In a sense the pall of censorship on certain issues has been lifted,” Mr Howard said.

    At the time Mr Howard made the statement Labor MPs were highly critical, accusing him of dog whistling – sending a message to a specific part of the electorate.

    Those MPs who have some concerns about their Prime Minister’s use of language were not prepared to speak publicly today, but Greens senator Sarah Hanson Young was.

    “Her job as prime minister should be to reassure the Australian people that there is nothing to be anxious of, there’s nothing to be fearful of, calm down the debate,” Senator Hanson-Young said.

    “Take out the hysteria and in fact, do the right thing, not what is easy. And Julia Gillard seems to think that the easy route for her at the moment is to chase Tony Abbott down the low road of politics.

    “Her dog whistle this morning was the lowest form of politics that I’ve seen played in a long time from the Labor Party.”

     

    The big issue

     

    Some Labor MPs for some weeks have been saying privately that the question of asylum seekers is a bigger issue for Labor in cities such as Sydney and Melbourne than the mining tax.

    Backbencher David Bradbury, who represents the western Sydney seat of Lindsay, says the issue of asylum seekers is a big one.

    He says it takes in concerns about population growth, but mainly about protecting borders and treating refugees fairly.

    “It’s about ensuring that whilst we are a generous country and we’re prepared to not only meet our international obligations but be a good international citizen, that we want to do that within a framework that does not encourage people to take risky and life-threatening voyages across the sea,” he said.

    Minister Chris Bowen, who also represents western Sydney, says a high number of his constituents are refugees or have many family members in refugee camps around the world.

    “My community certainly acknowledges the importance of refugees, the important contribution that they’ve made to Australia and would continue to make to Australia,” he said.

    “Likewise, there’s a lot of concern in my community about those high number of people waiting in camps and for every person who arrives on a boat, that’s one less person we take from a camp.”

    But one MP who lives outside of those cities says if Ms Gillard moves to toughen the policy, it could mean losing some votes to the Greens in inner city seats.

    But the MPs that PM have spoken to have no answers to the problems the debate raises for Labor. They recognise that toughening the policy and addressing the view strongly put by the Coalition that the Government has lost control of the borders could shore up support in the centre and on the right, but risk losing some on the left.

    Opposition immigration spokesman Scott Morrison says the voters know who they can trust on the issue.

    “The Prime Minister can engage all she likes in some sort of midnight conversion on the eve of an election but the truth is 143 boats don’t lie,” he said.

    “That’s the record of their policies and I think the Australian people will make a judgement about who they believe they can best trust on this issue – our proven record or the Government’s hollow words on the eve of an election.”

    A decision on Labor’s policy is expected soon, with a three-month pause on processing claims from asylum seekers from Sri Lanka due to expire on Thursday.

    Tags: community-and-society, immigration, government-and-politics, elections, federal-government, refugees, gillard-julia, federal-elections, australia

    First posted 3 hours 41 minutes ago

  • Scientists find new way to map eathquakes

     

    Mr Robinson collaborated with the Australian National University to create a new mathematical model which uses seismic wave recordings to more accurately map the extent of quakes.

    “What we are talking about here are techniques which let us locate down to tens or hundreds of metres,” he said.

    “So we can actually map the faults which are underground in a way that just isn’t possible with traditional location techniques.”

    Mr Robinson says the information generated will improve building codes and insurance.

    “If we can start to understand the earthquake processes in more detail, we will be able to do better earthquake hazard mapping,” he said.

    “And it is this product, this earthquake hazard map, which leads directly into things like the building codes, insurance pricing, and various other risk mitigation processes.”

    He says the model will particularly benefit people living in remote areas, where there are few seismic recording stations.

    Tags: earthquake, emergency-planning, science-and-technology, earth-sciences, geology, research, australia