excelsior, your point I believe is that the carbon tax will increases foreign risk because the impost on polluting buisinesses will discourage investment in Australia.
Given both parties have the same emission targets by 2020 The questain is therefore with the 2 choices at hand which will provide the best results in carbon reduction while having least effect on the general community and overseas investments.Taking your soverign risk concerns into account(which I strongly disagree with)which policy presents the greatest foreign risk.
The labor policy working towards at ETS is charging carbon emittors.Households will be given assisitance from these charges to cover the increase in prices.In most cases it will more than compensate. The broader plan is once carbon has a price the country has the mechanism ready to move into an international carbon trading system. One would think with clear direction and a large amount of money put aside for carbon reduction initiatives,this would provide big incentives for business to invest in Australia. The liberals plan is to encourage people to cut down emissions by providing grants.They intend to pay individuals/groups money in the hope they will reduce emissions.This is far worst than any pink batts scheme.No real long term mechanism to enter a global ETS. The money to fund these grants will come from a levy put on all taxpayers. So all business and individulals will be paying an undisclosed or indeterminent amount of money to achieve a 5% reduction in carbon emissions.The polluters have no incentive to cut down emissions and business and individuals have no idea how much the Govt will need to meet their targets. So you tell me if you believe there is foreign risk with introduction of Carbon reduction measures,which policy or party will create the greatest risk.
