In another sign the Liberal Party under Scott Morrison is more about populism than sensible government, big business lobby group the Business Council of Australia has taken aim at the Liberal Partys proposed energy divestment powers as exacerbating sovereign risk with serious adverse consequences for prices and reliability down the track.

The BCA submission and its devastating attack on Scott Morrisons thought bubble to give the Treasurer powers to order the break-up of private companies should be essential weekend reading for all Liberal Party MPs.

These are dangerous and extreme powers that not even the competition regulator, the ACCC, recommended, in fact ACCC Chair Rod Sims told Senate estimates recently the first he learned of Scott Morrisons thought bubble was when reading the newspapers.

Not the even the normally resolute and steadfast Finance Minister could be bothered to explain and defend the divestment powers when interviewed on the topic last week.

This is what the Business Council of Australia says about Scott Morrison and Josh Frydenbergs proposals:

A Treasurer-ordered power is even more extreme measure and risks sending a signal to the world that investing in Australia comes with considerable risks. If these powers are to be legislated then the power to make such an order must only be invested with the courts so that any decision is evidence-based and underpinned by the rule of law.

A further concern about the Treasurer-ordered remedies proposed in the Consultation Paper is that there is no detail about the decision-making framework that would apply. The Consultation Paper simply states that the Treasurers determinations will be proportional and targeted to address unacceptable outcomes. A greater level of clarity is required to stipulate how these proposed powers would be exercised.

We should be cautious that new interventions into the market do not increase sovereign risk and discourage the new investment the sector urgently needs. The proposed introduction of these heavy-handed, intrusive Treasurer-ordered remedies in the energy sector sets a dangerous precedent for other sectors of the economy and threatens our economic attractiveness.

This would normally be the point where youd hear some sort of complaint from a conservative Liberal Party MP about how these plans threaten free enterprise and will create sovereign risks.

Instead what we have had from Coalition sources is the floating of even crazier ideas to extend these heavy handed powers to other parts of the economy.

The Liberal Party is fond of quoting the Business Council of Australia, when it suits to their cause, well this submission is a devastating blow to the fantasy that giving a future Treasurer powers to break-up companies wont severely effect investment and power prices as well as the attractiveness of Australia as an investment destination.

The BCA position confirms this would create sovereign risk where none exists right now.

Now is the time for those often vocal conservative MPs to prove there not just talk when it comes to their ideological commitment to free enterprise.