But who cares when you’re “saving the planet”? The fact that the European carbon price is less than half of Gillard’s starting point is brushed aside. The fact that whatever emissions reductions Australia makes will have no effect on the climate whatsoever is ignored. The pleas from businesses to reduce the initial carbon tax to something much lower (or preferably zero) go unheeded and rebuffed by the arrogant likes of Swan and Combet.
AUSTRALIA faces a $30 billion hit to growth by 2018 if domestic carbon prices remain higher than the European price, according to new economic modelling that will add to business pressure to bring the $23 starting price closer to Europe’s $10.
The modelling, by the Centre for International Economics consultancy, warns that keeping the $23 fixed price regime and the floor price of $15 a tonne – key elements of the current package – will have almost twice the impact on economic growth by 2018 as allowing the Australian price to track international prices.
A higher price in Australia than in comparable international markets could also cost the mining industry a cumulative $4bn and durable manufacturers $1.5bn over six years, the CIE modelling predicts. In a blow to the Coalition’s direct action policy alternative, leading CSIRO researcher Michael Battaglia has warned that the abatement figures in Tony Abbott’s alternative policy are “ambitious”. The centrepiece of the policy – sequestering 85 million tonnes of carbon in soil by 2020 – might only achieve abatement of between 5 million and 20 million tonnes, he said yesterday.
Which is why the Coalition should abandon their direct action policy at the same time as scrapping the carbon tax. Put the funds towards adaptation when required.
The CIE research, commissioned by the Minerals Council of Australia, comes amid projections that slow growth in Europe will mean international carbon prices will not rise significantly above the $10 around which they are currently sitting.
When Australia’s carbon package was announced, Treasury assumed an international carbon price of between $29 and $61. But the European credit crisis caused prices to slump. The research will amplify calls by key business backers of carbon pricing, including the Australian Industry Group’s Heather Ridout and the Business Council of Australia’s Jennifer Westacott for the policy to be rewritten. (source)
Fat chance. Labor doesn’t care about business (or about the climate). They only care about sucking up to the Greens to stay in power and creaming off the revenue from the tax to plug the massive hole in the budget caused by their reckless spending and waste.
Remainder of the article follows.










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