Australia is at a crossroads-2019

Australia's water, energy and financial systems are all under stress.

As I've pondered this trifecta over the past month I've come to the conclusion that our political leadership is failing all of us, and we, 'the punters' are equally responsible.

How is it that we 'accept' a political process that elevates political leaders and our representatives to 'do nothing' to actually progress viable, meaningful and well-researched policy? Our elected representatives consistently blame anyone and everyone other than their own ineptitude at being our representatives and hunkering down to come up with solutions to our water, energy and financial dysfunctions. Instead they blame anyone, point the finger at someone else and take NO responsibility for crafting a solution.

The fish are dead and the river are dying

The latest political finger pointing fiasco has to be the response to the South Australian Royal Commission into the Murray Darling Basin Authority.

NO ONE is taking responsibility, the state governments, the federal government, the irrigators the authority itself. It seems it's all someone else's fault. Guess what? It's everyone's fault.

There won't be a Murray Darling river system in 10 years. There won't be enough water for the farmers, communities, the 'system' all because no one wants to miss out on extracting their litre of water while they can. Talk about short-sighted, by everyone.

Our water security is under threat

There's a less than poetic irony for city-dewellers that both Sydney and Melbourne have their desal plants operating. For we Sydney-siders it's like 'finally, the expensive de-sal plant that was built years ago is finally going to be used. We now get to tap this 'water insurance policy'. And, just like most insurance policies, as soon as you claim it, your premiums, well in this case, water bills, will go up.

And, the finger pointing by our political representatives starts, particularly in NSW as we've got an election coming up. Yes our pollies are letting us down again, however, what are each of us doing, individually, every day to change the way we use water? If we don't take action, every day be prepared to pay.

Our energy ecosystem is stuffed

I've always found it rather perplexing that Australia can export so much energy or the raw material to generate energy around the world and have such a crap national energy management system and process. When I published an annual year book on Australia's electricity sector, Powering Australia with Keith Orchison for many years I learnt a lot about the detail of the NEM, the grid, transmission network etc. Keith, an expert in this area, has been consulted and has advised numerous and various governments over 30 plus years. Not much of what he was, and still is, commenting on has been actioned. It's all too politically unpalatable.

And where are we now? We have a duct-taped electricity network, a confused and highly politicised energy/electricity policy with the states fighting the feds, energy companies closing down base-load power stations, grids overloaded, brown-outs, astronomic spot prices when the country swelters under 40-plus degree days.

If Australians want to reduce our carbon footprint, go more solar and renewable everyone will have to pay because it's more expensive to build, less reliable and the transmission network needs to be rebuilt to accommodate fluctuating power.

If you really want to do something, change the way you use power, every day and don't expect 'someone else' to if you're not prepared to.

And, if you really want Australia to meet it's climate change commitments and/or more suck up higher electricity prices. You simply can't have it both ways – clean and green AND cheap electricity.

Our financial system, predictable 'unintended consequences'

With the Hayne report due on Monday it's a tough weekend for pretty much everyone in the financial sector...well that's the story the media are running.

The reality is EVERY small business owner and anyone looking to get a home loan or renegotiate a home loan is on tender hooks. Believe me, I know, I've been caught up in the overnight changes to loans to SMSF, re-negotiating my home loan and more over the last 6 months.

I have also spent the last 5 years researching and writing the histories of two of the four banks here. I've learned a lot about banking and finance in Australia and the world over the last 250 years (and have been know to describe this as interesting and exciting).

Stuck between a rock and a Hayne space

In the Australian context, the Hayne Royal Commission is the latest in a long list of Federal and State Royal Commissions, State Inquiries, Senate inquiries etc...there's literally hundreds of them, and I've read most of them going back to the 1820s! (Yes I potentially am one of the most boring people you might end up with at a dinner party).

The over-arching perspective I have about these is that there are absolutely predictable 'unattended consequences' as a result of these commissions and inquiries and the people who are impacted most are NOT the bankers or financial community but business owners, micro, small and big.

We're already seeing this through the crunch on credit for small business where most loans are linked to the family home as collateral. Try getting a loan at the moment if you're a small business? Forget it.

And, if you're thinking about re-financing your home loan you can pretty much forget that as well, especially if you use Uber, UberEats, subscribed to Netflix, use Afterpay or anything that shows profligate spending habits.

The Big Four banks are completely stuck between a rock and a Hayne space, and APRA. Hauled over the coals (oh gosh maybe I should change this phrase to blown over a wind turbine) for loose lending they've now compiled and made it almost impossible to get credit, and now they're being castigated for not lending.

So what's the solution?

I'm an optimist and I believe in hard work, learning and listening to experts and trying to develop and informed view about the issues and options to effect change.

As a business historian and book adviser to business people who want to capture and share their knowledge I am also passionate and committed to the belief that knowledge really is power. This said, knowledge is only useful if it's shared and if people are at least potentially open to reading, listening and engaging with ideas, thoughts, science and a future beyond themselves.

Knowledge shared is THE ONLY WAY all of us in Australia will solve the three challenges outlined in this post, let along all the other ones we have.

Our water, energy and financial system challenges can be solved.

We've got the knowledge, the science, a dispersed community of people who are willing to put their own immediate interests on hold for the greater good, or for their children and grandchildren. There's just not enough of us at the moment.

And, we don't have political representatives that have a commitment to our future. Most are all focused on their upcoming electoral contests.

It's time for everyone to stand back from our immediate needs and wants, to consider the damage we're doing by demanding our wants and ignoring the needs of our country, the future we're leaving for our children and grandchildren.

What are you prepared to invest in?

I want to have a Murray Darling river system in 10 years time that flows and sustains the country. I'd pay more for my water to support this.

I want Australia to meet and exceed it's emissions reduction targets and I am prepare to pay more for my electricity, and to change the way I use electricity, to help achieve this.

I absolutely want a more open, honest and trustworthy banking and financial system and I am prepared to pay higher, upfront fees to get the best, independent advice I can afford.

Australians have to move on from an entitlement (rent seeking) attitude. We need to stop being so complacent about our quality of life – it's not sustainable. We need to care more about the future capacity of our country to sustain our children and grandchildren. We need to dump rusted on/generational political biases and focus on driving action. That might mean voting a different way, becoming more active in your community, seeking out the science and parking ill-formed beliefs.

There's always been a link between knowledge and progress. The more knowledge, rather than opinion or emotion is shared the more progress we could make.