In my honest opinion this carbon tax is totally and utterly illogical and could prove lethal to the Australian economy. Australian accounts for barely over 1% of the world's carbon emissions so even a major reduction in our emissions will not make any meaningful impact on lower global emissions.
Right now Australia is going through never seen before trade highs and record mining tax revenues all because of the greatest commodity boom ever. I believe the Carbon Tax is really a Resource Tax which is disguised to trick 'average Joe' that the government is doing something for the environment.
The Carbon tax will result in revenues, jobs and emissions going offshore which destroys our global competitive advantage. It will increase costs, harm our efficiency and kill productivity. Our coal industry is forecasted to generate approximately $60b in revenue next year but will be the hardest hit under a Carbon Tax. Why would are shooting ourselves in the foot? It was a strong mining sector that kept Australia safe during the GFC yet inexplicably the Gillard government has decided to adopt a price on carbon and hurt the mining sector. Why cut off the hand that feeds us?
The Carbon Tax will only see emissions fall to 621mt by 2010 compared to 679mt with tax. In my opinion the pain Australia will have to go through for zero gain is just not worth it. The official target for cutting carbon emissions is 189mt but under the current Carbon Tax principal, Australia will only cut 58mt. Who will make up the difference? The private sector yet again - more pain for the mining sector.
The European Union's limited ETS raises approximately $500mpa. What about Australia's Carbon Tax? $10-11b in 2012 and all for just over 1% of the world's emissions. This is just a plain old 'socialist policy' of redistributing wealth. This policy is not economic reform at all.
My next point is how can we trust this Labor government to deliver on the Carbon Tax? This is a labor government that has done the following:
* Failed to implement a basic solar insulation scheme * Pink batts fiasco * Banning live exports to Indonesia and ruining our farming industry * Removed PM as voted in by the Australian people * Wasted $1.9b of taxpayer's money on the BER which was a massive cost blowout * Going with a $40b NBN with no cost or benefit analysis whilst the rest of the world is going to wireless * Let Australia go from zero public debt to the largest debt in our history * Lied over the Carbon Tax to begin with
Why would Australia bring in a policy from Gillard which is anti-growth, anti-productivity and anti-capitalism.
I will never support a policy in Australia that wrecks industry, costs jobs, destroys our global competitive advantage and ruins our standard of living for no gain.
