Kevin’s Carbon Con

by on 23 July, 2013

Subject: Think Kevin Rudd is doing the right thing in changing the carbon tax? Think again!

This is the most important newspaper article you may read in the lead up to the election – Kevin Rudd’s Carbon Tax / ETS is actually far worse than Gillard’s proposal: by Terry McCrann.

In summary:

·       Kevin Rudd is NOT ditching the carbon tax. He isn't even cutting it. Your power prices won't fall by a single cent on his announcement.

·       Labor is floating the carbon price with the European market to be set by Europe and/or financial speculators who won’t care at all about Australia, Australian Businesses, or consumer electricity prices.

·       The government won't have the power to guarantee what the carbon tax price would be. In July next year Rudd’s promise to end the fixed price kicks in and then it is free to rise. It is just ludicrous to assume that the European price will still be $6 then. It could be. Equally it could be $12, $20 or more – the Treasury’s own modeling forecast says it will rise to at least $38, and climbing continually higher.

·       The European decision makers want the price to be higher. The whole 'point' of this carbon tax/ETS (emissions trading scheme) is to hurt everyone with higher electricity prices so business and consumers will use less electricity; and that power companies will switch to non-coal – much more costly forms of so-called 'alternative' energy. Every single thing we buy or produce in this country could be effected.

·       On the flip side, if it did stay at $6 (as Rudd is spinning it), at least for a while, it would render Rudd’s climate change policy even more totally pointless, because it would not reduce CO2 emissions. This is the fundamental internal dishonesty of what Rudd is trying to con voters into believing. That they can have cheaper power and still save the planet. It just isn’t possible.

·       It gets worse, Australia loses control:

With a (real) carbon tax – as the existing Gillard one was, in its pre-ETS form – we are paying the money for these Carbon Permits to ourselves (As in, to the Government who in turn can spend the money in Australia as required). But with Rudd’s ETS open to global markets, we will be paying some – most? all? the money to off shore foreigners, to buy their 'permits' to do business in Australia. Whether to legitimate ones in Europe (or to the ubiquitous Nigerians). This money, which even Treasury estimates will – and indeed, should – run into billions of dollars a year, will be money paid to buy . . . absolutely nothing. It buys nothing but a bit of paper, that says in effect: you are given permission to keep your power station in Australia open.

Opposition leader Tony Abbott put it precisely right yesterday: it's a payment for the "non-delivery of an invisible substance to no one." But payment of very real dollars out of the pockets of all Australians. What’s more, its just another imposition on the cost of living and doing business in this country where jobs are disappearing. All the while, China's emissions continue to increase its emissions every year by more than our entire emissions.

Please remember why Kevin Rudd was ditched in the first place, he was more unpopular and making worse decisions than Gillard.

Leave a Reply