Jul 10, 2011

Carbon tax: the policy and the politics

This is a better package than the CPRS it is so closely modelled on, but not by a lot. It's certainly as voter-friendly a policy as pricing carbon was ever going to be.

Bernard Keane — Politics editor

Bernard Keane

Politics editor

This is a better package than the CPRS it is so closely modelled on, but not by a lot.

The key problem with the CPRS was that compensation for emissions intensive industries was so great and went for so long that it neutered the price signal, meaning the entire scheme was a giant money circulator that wouldn’t have started decarbonising the economy until well into the 2020s.

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151 thoughts on “Carbon tax: the policy and the politics


    Thanks for giving up your Sunday Bernard, and giving us a straight assessment of this proposed legislation. Most of us knew it would be full of questionable compromises, but given the appalling state of politics in this country could hardly expect better.

  2. Wombat

    I only skimmed – but no mention of offshore offsets? I thought they were the real disgrace of the CPRS

  3. TheTruthHurts

    Bye Bye budget surplus is all i can say

  4. Frank Campbell

    “The Climate Change Authority could become a potent independent source of advice”

    You jest. It will be stacked, just like the Flannery “Climate Commission”.

  5. TheTruthHurts

    Actually I have a question.

    Tax Free threshold will be increased to $18,200. Thats a good thing.

    But from what I’m reading people over $80,000 won’t get any tax cut.

    Now how is it possible for that tax free threshold to INCREASE, but those above $80,000 won’t get any tax cut?

    Well folks… here we enter devil in the details. The media seem a bit slow on this one, but the only logical conclusion is that Labor are going to INCREASE the taxable percentage on the $80K+ bracket.

    Thats right, income taxes are going to be going up under a Gillard Labor Government. This would be the first time since Keating that income taxes have increased.

  6. Frank Campbell

    “The coal industry will get a staggering $1.2 billion in handouts, in an outrageous cave-in to the industry that is responsible, more than any other, for Australia’s contribution to global warming.”

    The massive handouts expose Labour’s terminal contradiction- preserve jobs while pretending to feed the climate cult.

    Gillard said last week that “Coal has a fantastic future”. Unlike herself.

    She’ll be remembered as the PM Labour wants to forget.

  7. Frank Campbell

     Steel: “this is straightforward protectionism designed, under the cover of a carbon price, to support a domestic industry against cheaper, more efficient (and no more carbon-intensive) foreign competition.”

    Correct. Again, Labour’s dilemma exposed. The Whyalla Syndrome.

    So what would you do, Keane? You’re a global warming zealot- would you promptly close down steel, aluminium and zinc processing? They’re going to die anyway…so let’s do a Thatcher, shall we? Or perhaps you don’t really have the stomach for the Indonesian abattoir solution…

  8. Frank Campbell

    “Will it be seen as a serious contribution to the cause of an international agreement on climate change? Yes.”

    Provincial hubris.

  9. Frank Campbell

    “The Clean Energy Finance Corporation may also turn out to be a problem for future governments if and when investments in renewables and low-emissions technology go bad.”

    They’re going bad now. Billions wasted on useless wind turbines. British power companies are demanding $10 billion from the govt. for back up gas power stations to cover wind’s naked arse:

    “In winter, when the most intense cold period coincides with a high pressure front, most wind turbines do not work.
    One industry executive said: ‘Why would we build a power station – costing about £600 million – that is guaranteed to make a loss because it is not used most of the year?’
    By 2020, most of Britain’s nuclear plants, old gas-fired plants and coal-fired power stations will be closed, leaving a 30 per cent energy gap to be filled by more new nuclear plants and more wind power.
    British Gas managing director Phil Bentley has warned prices will have to rise by at least 15 per cent to compensate for the soaring cost of wholesale gas.””
    (ThisIs Money website)

  10. ianjohnno1

    It seems to me that there is an unstated potential financial benefit for most households to reduce energy consumption.

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