Former Australian Prime Minister John Howard has called for “a sensible understanding” on coal seam gas development.
Mr Howard told the Ruralco/CRT conference and trade show governments and the agriculture sector must reach a “sensible balance” on the issue.
“I think it will represent the greatest failure of public policy, in years, perhaps ever, if we end up having an energy crisis,” Mr Howard said.
“We have 38 per cent of the world’s recoverable uranium reserves, we have massive reserves of coal, of gas, we have a lot of sunlight, but it can be unreliable and brutal, the same with wind power.
“I think a renewable energy target beyond the two per cent, when I left office, is just foolish.”
Mr Howard said what was happening in South Australia was “absolutely absurd - and if we have problems in NSW I would say the same thing.
“Governments have to hammer out with the rural community, a sensible understanding, on this issue and not accept every time you want to exploit a coal seam gas resource it’s going to destroy prime agricultural land.
“It doesn’t always – what I would plead for, in an area like this, is that everyone is in this, if we have an energy breakdown, it’s going to affect all of us.”
Mr Howard said the Trans-Pacific Partnership (TPP) trade agreement would not work, without America.
“I think what should be done with the TPP is don’t permanently disavow it, but put it to one side and find other avenues,” Mr Howard said.
The country had done very well out of bilateral trade agreements.
“The TPP without America is not really a goer.”
He said he didn’t like US president Donald Trump’s attitude to trade issues.
“I believe very passionately that open, free trade is the way for the world to keep going,” Mr Howard told about 800 guests.
Poverty remained the greatest moral challenge the world faced.
“I have heard people say, wrongly in my view, climate change is the great moral challenge of our age, and I don’t agree with that.
“Over the last 10-20 years we have done more than we have since the industrial revolution, to reduce poverty
“That is due to more open trade, the spread of competitive capitalism and globalism.
Hundreds of millions of people had been liberated from poverty, as a result of economic progress and trade liberalisation.”
Australia adjusted to the “painful consequences” of Britain’s entry to the European Union, due to primary production and mining.
“Don’t anyone imagine the European Union is a paragon of virtue, when it comes to open and free trade.”
Mr Howard said he was a great believer in foreign investment,
“I am a strong believer in taking a very pragmatic approach, China is our best customer, it’s in Australia’s interest to keep that custom,” he said.
“We have to accept foreign investment, but they have to abide by Australia’s rules.”
He said when he first entered parliament, people were complaining about American investment in the motor vehicle industry.
“They said Detroit had too much power - people would go down on their bended knees, to have Detroit back in the local manufacturing industry.
“The absolute level of Chinese investment in Australia, including in agriculture, is still quite small, American and British investment is still miles ahead.”
Australia could not expect China to take its products, without having a “reasonable run” in terms of foreign investment.
“I don’t subscribe to the view China will overtake America – in 50 years time America will still be the dominant power in the world.”
The younger Chinese middle class, who have born into affluence, want to run their own country – “China will have a crisis of democracy, versus authoritarianism.”
Mr Howard said he spoke frequently with current Prime Minister Malcolm Turnbull, with whom he said he had a good relationship.
“Sometimes he takes my advice, sometimes he doesn’t.”
“Tony Abbott was a minister in my government, I talk to him frequently too.”