Gillard to ban any new but dirty power stations

Comments on Matthew Franklin “PM vows to ban 'dirty' power stations”, 23/07/2010, http://www.theaustralian.com.au/news/climate-protesters-disrupt-pms-speech/story-e6frg6xf-1225895949173
Prime Minister Gillard is reported to ban new coal-fired power stations that use "dirty" technology and require that any power station built can be retro-fitted with developing clean coal technology.

While it may also be able to contribute to reducing emissions and help the environment, it is government direct intervention as opposed to efficient market mechanism.

It is far more efficient to leave the decisions to the private entrepreneurs to choose the most efficient technologies following or anticipating emissions prices.

Government is better off to make sure market mechanism works properly to reflect true costs including known externalities instead off direct interventions.

Further, the report mentioned that "She also said that the next phase of her policy, to be announced within days, would involve new ways in which average Australians could make their own contributions to reducing emissions."  This reminds people the way Rudd managed the release of his health reforms plan, drip by drip and day by day slow feed. It does not portray a confident leader who is on top of the policy, apart from managing the media and manipulating the public.

However, one should understand the context, that is, this is an election campaign and the Gillard government did not have enough time to develop its climate change policies. It is a short term political message. She has to have something on climate change out to the public.
PS: Franklin’s report starts with the following:

JULIA Gillard will ban new coal-fired power stations that use "dirty" technology and require that any power station built can be retro-fitted with developing clean coal technology.
The Prime Minister has also committed $1 billion over 10 years to create an “efficient and strongly regulated” national renewable energy market.
And, in a speech at the University of Queensland in Brisbane, Ms Gillard has also pledged $100 million to fund market-based projects designed to develop renewable energy technology.
“We will never allow a highly inefficent and dirty power station to be built again in Australia,” she said.
“If we are reelected, Labor will ensure that all new power stations have to meet world's best practice.”
Ms Gillard said she wanted to ensure that during her search for a national consensus on climate change action that the nation did not “lock in” new power stations or energy sources that would last 30 years and continue to contribute to pollution