Extract from The Guardian
Joe Hockey had called on the university to reconsider its decision to jettison investment in seven companies
The government has been accused of bullying the Australian National
University, after Joe Hockey criticised it for divesting from a number
of fossil fuel companies.
In highly unusual remarks about a business’s investment decisions, the treasurer said ANU should reconsider its decision to jettison investment in seven firms – Santos, Iluka Resources, Independence Group, Newcrest Mining, Sandfire Resources, Oil Search and Sirius Resources.
“I would suggest they’re removed from the reality of what is helping to drive the Australian economy and create more employment,” Hockey told the Australian Financial Review.
“Sometimes the view looks different from the lofty rooms of a university.”
Hockey is one of several politicians to publicly rebuke ANU over its fossil fuel divestment. The assistant infrastructure minister, Jamie Briggs, said he would write to the ANU vice-chancellor, Ian Young, to ask him to reconsider the blacklisting of coal seam gas company Santos.
“To publicly denigrate the reputation of one of South Australia’s finest companies is a disgrace,” Briggs said. “This seems to be taking green activism to a new level where it is damaging Australian companies and potentially job creation in the country.”
The South Australian premier, Jay Weatherill, said the divestment from Iluka Resources and Santos was “very strange”, while Queensland’s resources minister, Andrew Cripps, said the divestment was “narrow-minded and irresponsible”.
ANU made the decision to withdraw its investment in the companies following a review of its investment policy by the consultancy group CAER. The divested stocks represent about 5% of ANU’s equity holdings.
Tim Buckley, former head of equity research at Citigroup and now head of the Institute of Energy Economics and Financial Analysis, said ANU was being “bullied” by the government over its stance.
“I find it absolutely bizarre because, the last time I checked, investment managers have the right to change their portfolios,” he told Guardian Australia.
“I can’t fathom why Australian politics has stooped as low as this. Joe Hockey should really be concentrating on his day job and try to pass his budget.
“It makes me really worried about Australia’s’ economic future. Politicians have wedded Australia so strongly to bulk commodity exports that the country has a huge structural risk because the world is moving away from carbon-intensive fuels.
“The fossil fuel industry may be trying to desperately to put its fingers in the leaking dyke left, right and centre, but that won’t change the fact that Australia will have to face up to a future as a low-carbon economy.”
Tom Swann, from the student group Fossil Free ANU, said: “The government is acting as a mouthpiece for the fossil fuel industry whenever it tries to slow down this movement. We are calling upon more institutions to follow ANU’s lead.”
Young, an oceanographer by training, said ANU’s decision had been met with a “torrent” of student support.
“There is tremendous enthusiasm out there around environmental issues and investment,” he told Fairfax Media.
The wider fossil fuel divestment campaign, promoted by groups concerned about climate change, has gained some traction in Australia in recent months.
Sydney University has ruled out future investments in coalmining, while the Bendigo and Adelaide Bank has said it will not lend to firms involved in thermal coal and coal seam gas. Last week, the Anglican diocese of Perth joined the Uniting Church in Australia in divesting itself of fossil fuels.
The viability of new coalmining projects in Australia has been questioned due to a depressed trading price and indicators that key markets are beginning to wean themselves off imported fossil fuels.
Last week China, the destination for 25% of Australia’s coal exports, imposed a 6% tariff on non-coking coal. The country is also introducing new standards to phase out imported “dirty” coal, which is blamed for causing the smog that regularly envelops cities such as Beijing.
Last year, China spent an estimated $US56.3bn on wind, solar and other renewable energy projects.
Investment in clean energy in Australia has slumped by 70% in the past year, due to uncertainty over the future of the Renewable Energy Target. Hockey has previously called wind turbines “utterly offensive” and “appalling”.
In highly unusual remarks about a business’s investment decisions, the treasurer said ANU should reconsider its decision to jettison investment in seven firms – Santos, Iluka Resources, Independence Group, Newcrest Mining, Sandfire Resources, Oil Search and Sirius Resources.
“I would suggest they’re removed from the reality of what is helping to drive the Australian economy and create more employment,” Hockey told the Australian Financial Review.
“Sometimes the view looks different from the lofty rooms of a university.”
Hockey is one of several politicians to publicly rebuke ANU over its fossil fuel divestment. The assistant infrastructure minister, Jamie Briggs, said he would write to the ANU vice-chancellor, Ian Young, to ask him to reconsider the blacklisting of coal seam gas company Santos.
“To publicly denigrate the reputation of one of South Australia’s finest companies is a disgrace,” Briggs said. “This seems to be taking green activism to a new level where it is damaging Australian companies and potentially job creation in the country.”
The South Australian premier, Jay Weatherill, said the divestment from Iluka Resources and Santos was “very strange”, while Queensland’s resources minister, Andrew Cripps, said the divestment was “narrow-minded and irresponsible”.
ANU made the decision to withdraw its investment in the companies following a review of its investment policy by the consultancy group CAER. The divested stocks represent about 5% of ANU’s equity holdings.
Tim Buckley, former head of equity research at Citigroup and now head of the Institute of Energy Economics and Financial Analysis, said ANU was being “bullied” by the government over its stance.
“I find it absolutely bizarre because, the last time I checked, investment managers have the right to change their portfolios,” he told Guardian Australia.
“I can’t fathom why Australian politics has stooped as low as this. Joe Hockey should really be concentrating on his day job and try to pass his budget.
“It makes me really worried about Australia’s’ economic future. Politicians have wedded Australia so strongly to bulk commodity exports that the country has a huge structural risk because the world is moving away from carbon-intensive fuels.
“The fossil fuel industry may be trying to desperately to put its fingers in the leaking dyke left, right and centre, but that won’t change the fact that Australia will have to face up to a future as a low-carbon economy.”
Tom Swann, from the student group Fossil Free ANU, said: “The government is acting as a mouthpiece for the fossil fuel industry whenever it tries to slow down this movement. We are calling upon more institutions to follow ANU’s lead.”
Young, an oceanographer by training, said ANU’s decision had been met with a “torrent” of student support.
“There is tremendous enthusiasm out there around environmental issues and investment,” he told Fairfax Media.
The wider fossil fuel divestment campaign, promoted by groups concerned about climate change, has gained some traction in Australia in recent months.
Sydney University has ruled out future investments in coalmining, while the Bendigo and Adelaide Bank has said it will not lend to firms involved in thermal coal and coal seam gas. Last week, the Anglican diocese of Perth joined the Uniting Church in Australia in divesting itself of fossil fuels.
The viability of new coalmining projects in Australia has been questioned due to a depressed trading price and indicators that key markets are beginning to wean themselves off imported fossil fuels.
Last week China, the destination for 25% of Australia’s coal exports, imposed a 6% tariff on non-coking coal. The country is also introducing new standards to phase out imported “dirty” coal, which is blamed for causing the smog that regularly envelops cities such as Beijing.
Last year, China spent an estimated $US56.3bn on wind, solar and other renewable energy projects.
Investment in clean energy in Australia has slumped by 70% in the past year, due to uncertainty over the future of the Renewable Energy Target. Hockey has previously called wind turbines “utterly offensive” and “appalling”.
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