Saturday, 17 September 2011

There Will Be NO carbon Tax....Reversal! Labor Locks in Carbon (dioxide) Tax

There will be no carbon tax.....reversal
Henry Ergas, writing in the Australian, reveals how Labor is blocking the coalition's intention to reverse the carbon dioxide tax after a fresh election.
Once the carbon change legislation is in place, (Mark Dreyfus, Parliamentary Secretary for Climate Change) said, repeal would amount to an acquisition of property by the commonwealth, as holders of emissions permits would be deprived of a valuable asset. As a result, the commonwealth would be liable, under s.51(xxxi) of the Australian Constitution, to pay compensation, potentially in the billions of dollars. A future government would therefore find repeal prohibitively costly.

Henry says there is more scares built-in to the legislation:
Nor is it the only poison pill built into the legislation. Also crucial is what happens if a new government rejects the emissions reductions recommendations made by the carbon regulator, the Climate Change Authority.
In that event, unless the government can secure a majority for an alternative target, permitted emissions are automatically cut by up to 10 per cent in a single year, crippling economic activity.
Henry says that provisions that hinder future parliaments are viewed as abhorrent. A tax that does not lower the carbon emissions but only raises government revenues while curtailing economic activity is also abhorrent.
So if we are creating a "clean, green future", as the Prime Minister asserts, it is not in Australia. Where then do all those low-cost emissions reductions come from? According to Treasury, well over half will come from the former Soviet Union and from "Other Asia". But many of these countries lack any ability to monitor carbon abatement, with corruption so pervasive they are at the top of Transparency International's list of offenders. To assume they will provide a credible source of abatement is wildly optimistic; to think they will do so absent a comprehensive international framework is fanciful.
Every Australian should read this article by Henry Ergas to see the intent of our government.
But whatever one may think of the carbon tax, those poison pills are public policy at its worst. If parliament had any decency, it would throw them out. That it won't says it all.
Professor Ergas

Alan Jones speaks to Henry Ergas HERE.