Re: Kristina offers congratulations (Tips and rumours, Friday). As several astute Crikey readers have pointed out, state governments prop up the national scheme with their own schemes. As the NSW government website says “The First Home Owner Grant Scheme (FHOGS) is fully funded by the NSW Government and administered by the Office of State Revenue (OSR)” and therefore we admit it’s not entirely surprising that Kristina Keneally sent out letters claiming responsibility.

Victorian borders

Marcus L’Estrange writes: Re. Not much to gain from Victoria’s new boundaries (November 10, item 10). Melbourne Ports MP Michael Danby wish to have his electorate based on and around the provision of services to the Jewish community is a silly and woolly one. Next the Catholic Church could claim that East Melbourne should become the ‘Holy See’ seat. The Greeks could claim that a seat should be based on Lonsdale Street and called the ‘Hellenic’ seat. The Italians could claim Lygon Street as the ‘Roma’ electorate in state parliament. Where would it all end if we based seats on ethnicity or religion rather than population? Like the old Yugoslavia? If Michael wants to run for a largely Jewish seat he should run for the Knesset in Israel.

Who Wants a Carbon Tax?

Viv Forbes writes: When our PM says “we need a price on carbon”, she is just sprouting another misleading Wongism like “we must reduce carbon pollution”. Most forms of carbon already have a price — coal, oil, gas, petrol, diesel, beef, bread, butter, diamonds and whiskey — all have a price (which usually includes a few taxes). What Ms Gillard wants, but dares not say, is another tax on our usage of many carbon products.

Who wants a tax on carbon? The Greens do. They hate humans and their farm animals, crops, coal, oil, cars, power generators and heavy industry. They would like to see the end of most mining, farming, fishing and forestry. A carbon tax will hit all of these people so the Greens support it.

Ms Gillard and Wayne Swan want a carbon tax. They lead a party of taxaholics who need a new tax to support their extravagant spending. Unions, even those in industries that will be harmed directly by a carbon tax, ignore the interests of their members to maintain party solidarity. Taxes are the life blood of the tax consuming industries — there will never be enough taxes to satiate the nationalised education, health, media, research and welfare industries. So they all want a carbon tax.

And of course the wind and solar subsidiesuckers want heavy carbon taxes to hide their chronic inability to provide economic and reliable power. The nuclear power industries love carbon taxes — it gives them a cost advantage against coal, oil and gas in the production of base load power.

Many big businesses are trying to buy green respectability by plugging a carbon tax — they will pass it on to Australian consumers, but exporters will get exemptions. For lawyers and accountants, new taxes bring new business. They love new taxes with complex rules and many exemptions. And of course all of Asia hopes that Australia imposes a carbon tax. It will shift our industries to countries with no carbon taxes. So there is a powerful and diverse carbon tax lobby.

Where are the environmental benefits? There are none. Carbon dioxide is not a pollutant — more of it will help plant growth thus creating a greener earth. And it is fanciful to believe that a carbon tax in Australia could possibly produce any beneficial effect on our climate. Climate will continue to change as it always has.

Who will be hurt by a carbon tax? Whenever you tax something, a marginal producer somewhere closes up, and less of it is produced. Its price rises because of the increased costs of production and the reduced supply

Carbon taxes must increase the cost of electricity, fuel, food, fibres, building materials and transport. They will harm every Australian consumer, especially the poor who have no savings cushion and who spend a greater percentage of their income on these essentials.

So who is our government protecting — taxaholics and vested interests, or consumers?

Peter Fray

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Peter Fray
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