The debate is over… on the carbon tax


Contempt for Parliament

With the carbon tax bills being introduced to Parliament, the government is doing its best to ensure that there is as little debate as possible. Greg Combet, difficult to like at the best of times, is at his most arrogant, contemptuous worst:

“Tony Abbott’s misinformed people, deceived people, told lies about things,” he said. [Better not mention the lies in the government’s ad campaign then – Ed]

“I don’t expect the Coalition to make much in the form of a constructive debate.”

The Coalition claim that there is no where near enough time to debate the complex bills, with each member only having a minute to debate the 18 bills. Combet explains helpfully:

“That’s all rubbish,” Mr Combet said, adding the bills would be debated as one piece of legislation. [That still is only 18 minutes per member for one of the most complex changes to our economy in Australia’s history – Ed]

Mr Combet said there had been 35 inquiries into climate change [all of them fudged or fixed – Ed].

“It really is time we got on with it.”

“Time we got on with it.” I love the smell of hypocrisy in the morning. Just imagine Labor’s outrage at a minority Coalition government with no mandate, which broke an express pre-election promise to force through a hotly contested piece of legislation and then stifled proper democratic processes in Parliament by cutting short the debates. We’d have Combet, Gillard, Albanese and all the other Labor attack dogs shrieking from the rooftops. Tony Abbott responds:

Mr Abbott said it would be a “travesty of democracy” for the Government to rush its legislation through Parliament, especially as it had no mandate for a carbon tax.

He vowed to repeal the laws once a Coalition government was elected, despite concerns it might cause disruption to business.

“It’s never disruptive to get rid of a bad tax,” he told ABC Radio.

“It’s always advantageous to reduce business costs and they don’t want this tax and if they get it, they will want to be rid of it as quickly as they possibly can.”

Read it here.

Labor: political survival above national interest


"Ha ha! F*** you, Australia!"

Ironic that this story breaks on the one year anniversary of “There will be no carbon tax under the government I lead.” A more obvious sign that Labor and Gillard are more interested in clinging on to power than doing what is in the best interests of the country is difficult to imagine – a damning indictment of any political leader.

Why else would she refuse to reconsider the carbon [dioxide] tax in the face of serious international financial concerns, and the possibility of a GFC Mark II? There couldn’t be a worse time to introduce yet another tax – especially a tax on everything like this one (ignore the 400/500 biggest polluters nonsense – it’s all spin. Everyone will pay more for just about anything you care to mention). Even in sound economic times it would be suicidal, but with the US faltering and European countries lining up to default, it is beyond madness.

So why is she pressing on? Because she knows if she backs away from the toxic tax, the Greens support will evaporate (don’t forget, Labor bribed the Greens with a cowardly promise of urgent action on climate), and there will be an election – which Labor will lose catastrophically. So political survival takes precedence of the interests of the nation and the people whom she is supposed to represent. Disgraceful.

THE Gillard government has vowed to forge ahead with its carbon tax amid growing financial uncertainty, saying the “manageable” economic reform” will deliver certainty to Australian businesses.

While the worsening economic outlook has the government edging away from its 2012-13 return-to-surplus deadline, Climate Change Minister Greg Combet said the carbon tax would go ahead regardless.

“Yes we have had a period unfortunately of great uncertainty in international markets driven by debt concerns in Europe in particular,” he told ABC radio, as protesters gathered for a new anti-carbon tax rally outside Parliament House.

“However this is a reform to our economy that is necessary in the long term, it is a manageable economic reform, what’s more it will deliver certainty.” (source)

Maybe Greg will front up at the carbon dioxide tax demonstration in Canberra today to explain… Ha, not a chance. This government has abandoned the country.

Draconian powers of new "carbon cop"


Knocking on your door?

The idea of carbon cops has been around for a while (see here), but now it is set out formally in the draft carbon tax legislation. The powers are draconian and intimidating, with previously sacred rights, such as that of avoiding self-incrimination, being swept away:

A NEW carbon cop will be given sweeping powers to enter company premises, compel individuals to give self-incriminating evidence and copy sensitive records under a carbon tax package that will force about 60,000 businesses to pay 6c a litre extra for fuel.

The tough new powers of the Clean Energy Regulator were included in the fine detail of the carbon tax package released yesterday, which enshrines national emissions cuts of 12 million tonnes of carbon dioxide a year after 2016, if the government of the day rejects targets proposed by its Climate Change Authority.

The package, which shows that the government will cement in law the body of its carbon tax structure in a bid to force Tony Abbott to win the approval of both houses of parliament to complete his promise to scrap it, also tasks the Productivity Commission with inquiries into assistance to trade-exposed industries, international climate change action and the future of fuel taxes.

As it released the exposure draft of the 14-bill package — which will set up the $23-a-tonne carbon tax, the mechanisms to pay compensation for households, the Climate Change Authority and the Clean Energy Regulator — the government said it planned to introduce the bills in September and plan to have them passed by November. The schedule raised hackles with some interest groups for allowing only three weeks of consultation.

The exposure draft of the legislation gives sweeping powers to the Clean Energy Regulator, which will police the scheme, and the climate change minister will have the power to demand information from corporations covered by the scheme.

Fraud or attempts to subvert the scheme can be punished by up to 10 years in jail or fines of $1.1 million for corporations.

Inspectors working for the regulator will be able to obtain warrants to search premises of companies covered by the act and search or examine any activity on site as well as copy documents.

The regulator will have the authority to demand information from company officers even if it could incriminate them. (source)

Welcome to the new world of the carbon police state.

Few voters taken in by carbon tax bribe


Slightly less bad

It appears that a few Australians have fallen for the carbon tax propaganda over the last couple of weeks, lifting support for Labor by a couple of points. I guess that was inevitable: a small number of wavering voters were waiting for soothing words from the Government, and they got them. This isn’t the massive bounce Labor needs to get back into contention, that’s for sure:

VOTERS have warmed slightly to the carbon tax after two weeks of Julia Gillard wearing out her shoe leather selling the plan’s compensation package across Australia.

Support for the carbon tax rose six percentage points to 36 per cent, after sitting at 30 per cent for almost three months, according to the latest Newspoll survey.

The Newspoll, conducted last weekend exclusively for The Australian, found opposition to the carbon tax fell from 59 per cent to 53 per cent amid a government advertising campaign.

This is the first major poll since the $15 billion package was announced that has shown any improvement for the Gillard government.

Voters still overwhelmingly oppose the tax, but a shift in sentiment among men and young people, who were previously the least impressed with it, has offered some hope to the besieged Prime Minister.

Labor’s electoral support and attitudes to Ms Gillard have lifted slightly from historically low levels in the past two weeks, but there is no real statistical improvement overall. Dissatisfaction with the Prime Minister’s performance remains unchanged at a record high. (source)

And now the unions are forming an unlikely alliance with big business in opposing the tax:

ONE of the nation’s biggest trade unions has turned on the Gillard government, savaging Workplace Relations Minister Chris Evans as incompetent and unworthy of his office.

Days after strident criticism of the government by business leaders, Transport Workers Union national secretary Tony Sheldon yesterday likened Senator Evans to a corpse, accusing him of failing to implement Labor policy and endangering the lives of truck drivers.

The condemnation, rejected by Senator Evans, came as a trio of senior ministers dismissed a claim by Suncorp chairman-elect Ziggy Switkowski that there was ” a whiff of illegitimacy” about the government.

While the government has anticipated attacks from businesses affected by the [carbon dioxide] tax, it was blind sided by Mr Sheldon’s assault, based on the fact the impost — which he on Friday called a “death tax” — will apply to the heavy transport industry from 2014.

Mr Sheldon, whose 90,000- member union represents truck drivers, wants the government to prevent trucking companies from passing the cost impact to drivers and owner-drivers. The TWU argues that passing on the costs to drivers will lift stress and drive up accident and fatality rates on roads, not just for truck drivers, but also for all motorists. (source)

Arrogant Combet to plough on with carbon tax


Contempt for the electorate

Poor Greg. He’s got no choice of course. Blackmailed by the Greens into taking urgent action on climate change (thanks Adam Bandt for that bit of intelligence), Labor has the unenviable choice of either:

(a) abandoning the most unpopular tax in Australian history quickly, losing the Greens’ support in parliament, thereby precipitating an early election… which they will inevitably lose; or,

(b) forcing through the most unpopular tax in Australian history, and then having to survive until the next election… which they will, er, inevitably lose.

They’ve plumped for the second option and you have to admit Combet is playing the part well, with plenty of huff, puff and bluster and swagger (none of which he probably believes himself), and in the process managing to alienate even more of the electorate – if that were possible – with his play-acted arrogance and conceit:

Climate Change Minister Greg Combet has lashed out over criticisms at how long it’s taking the public to warm to the carbon tax.

It’s two weeks since the federal government released the long-awaited details of its carbon price, and the polls are still indicating a lukewarm response. [“Lukewarm”? More like freezing your nuts off – Ed]

Asked if the government will be forced to rework the tax or consider alternatives if support doesn’t pick up, Mr Combet gave an exasperated response.

“Give us a break will you, God, this is such rubbish,” he told Network Ten on Sunday. [Does he mean the tax or the question? – Ed]

“The detail (of the carbon price) has been out for two weeks. There has been months of deceitful, misrepresentative campaigning by (Opposition Leader) Tony Abbott, supported by some others.” [Which is of course nothing compared to the deceitful, misrepresentative campaigning by the Government on the carbon tax – see the Eight Lies – Ed]

He insisted the government won’t waver on its plan to price carbon at $23 a tonne starting July 1, 2012.

“The government is going to stick to its guns here.

“We will continue to explain this to people, in particular that the price impacts are modest.”

As always, they think that the public is plain stupid, and just by explaining it more they will learn to love the tax. But they won’t. You can’t polish a turd. And the carbon tax is a turd alright…

Government has "whiff of illegitimacy" about it


Ziggy Switkowski

Another attack on the government, this time from business leaders criticising the “thought bubble” policies currently being pursued:

SOME of the nation’s most respected business leaders have launched a fresh and damaging attack on the Gillard government, with one warning there is a “whiff of illegitimacy” about its most contentious policies.

Stepping up the anti-government rhetoric of recent weeks from big business, former Telstra chief executive and Suncorp chairman-elect Ziggy Switkowski said yesterday the bungled announcements of the National Broadband Network and the carbon tax were destined to divide the country.

“There is a whiff of illegitimacy about some of the key events in the life of this and the previous government,” Dr Switkowski told The Australian & Deutsche Bank Business Leaders Forum in Melbourne yesterday.

“The NBN was announced as reality at the stage where it was still a thought bubble, and it became public policy thereafter. It was not a very good beginning for what will be seen by many as one of the more substantive policy decisions of the government.”

Transurban chairman and Westpac chairman-elect Lindsay Maxsted told the forum Julia Gillard’s policies were focused only on short-term political gain and winning votes, as opposed to what was in the long-term interests of the nation.

“It’s probably the most difficult relationship I’ve seen between business and a federal government,” Mr Maxsted said.

Dr Switkowski and Mr Maxsted join a growing number of business leaders who have attacked the government in recent weeks, including casino owner James Packer and mining magnates Andrew Forrest, Clive Palmer and Gina Rinehart. Other senior chairmen and directors have warned of concerns about higher levels of sovereign risk being expressed by foreign investors about Australia.

They cite the carbon and mining taxes, re-regulation of the labour market, the skills shortage and lack of vital infrastructure as weighing substantially on productivity and growth.

Business leaders have claimed the carbon tax will damage industry competitiveness and impose additional costs at a time when firms are battling a high dollar, volatile sharemarket and weak consumer sentiment. (source)

As Jennifer Hewett comments:

THE business community has virtually given up on the Gillard government. And now it’s out in the open. The frank criticism of Labor across the board by a range of very senior business leaders yesterday was as remarkable as it was rare.

Strong disagreements between business and government are usually kept relatively discreet.

Occasionally, a particularly contested issue may force concerns on to the national agenda, usually leading to a compromise of sorts. Witness the mining industry’s determined assault on the resource super-profits tax last year.

But in general, big business knows that picking a public fight with the government doesn’t offer good odds. It’s too risky for business. Just look at Telstra. And the public tends to be rightly suspicious that a company’s self-interest doesn’t equate to the national interest.

What yesterday’s comments show is that the private and broad-based frustration with this Labor government is now so intense that business leaders feel they have a responsibility to explain how much is going wrong in Canberra. And why everyone should be worried about the impact and unintended consequences of policies that are not properly thought through. (source)

And the quote of the day from Switkowski:

“Why is this country’s energy policy being defined by the Greens? How can that be?”

An excellent question, to which there is no obvious answer.

Abbott on the attack


On the attack

Morris Iemma’s comments earlier today have prompted Tony Abbott to renew his attack on the Gillard government’s toxic carbon [dioxide] tax:

FEDERAL Opposition Leader Tony Abbott has seized on comments by a former Labor premier to further the cause of his campaign against a carbon tax.

At the same time, he’s called on other senior Labor officials to stand up against the Gillard Government’s planned carbon pricing scheme.

Former NSW premier Morris Iemma has questioned the environmental benefits and economic cost of the scheme, saying the Government had adopted a policy that was part of the Greens’ agenda of “anti-growth and anti-investment”.

It would cause lower growth and investment and lead to lower incomes and fewer jobs, while only slightly reducing the rate of increase in greenhouse gas emissions, Mr Iemma told The Australian newspaper.

He echoed Mr Abbott’s stance on protecting jobs from the impact of a carbon tax.

“We should always stand shoulder to shoulder with steelworkers and miners and factory workers before we stand shoulder to shoulder with the likes of (Australian Greens leaders) Bob Brown and Christine Milne,” Mr Iemma said.

Mr Abbott, unsurprisingly, used the reports of the former premier’s comments during a joint press conference with Victorian Premier Ted Ballieu in Melbourne.

“Morris Iemma knows exactly what the problem is in Canberra and he’s nailed it,” he said.

Mr Iemma was the third senior Labor figure, after Transport Workers Union boss Tony Sheldon and Dean Mighell from the Electrical Trades Union, to voice opposition to the carbon tax, Mr Abbott said.

“I say to decent Labor people right around the country, it’s high time that you stopped making excuses for this floundering prime minister, stood up for the workers … and drop this toxic tax.”

And let’s savour for a moment Julia Gillard’s considered and thought our response to Iemma’s concerns:

“I think Morris Iemma has called this one wrong.”

Wow, I’m kinda stunned by the incisive and razor sharp logic at work there. I don’t know about you, but the power of that argument has really won me over! Duh.

And as a reader has pointed out, Gillard is happy for Labor has-beens to wade into the argument, just as long as they’re on Gillard’s side, like Keating and Hawke.

Read it here.

Former Labor Premier of NSW rejects Gillard's carbon tax


Rejects the tax

This is very significant. Morris Iemma, the former Labor Premier of New South Wales, has rejected Julia Gillard’s carbon tax in a stinging rebuke reported in The Australian today. On Alan Jones’s 2GB show this morning, Tony Abbott said he couldn’t have put it better himself:

FORMER NSW premier Morris Iemma has become the most senior Labor figure to oppose Julia Gillard’s carbon tax.

Mr Iemma says the carbon tax that forms federal Labor’s platform for re-election in 2013 is environmentally marginal, economically costly and likely to lead Labor to a historic electoral train wreck.

“One thing is sure — it won’t change the world, but it could change the government,” Mr Iemma told The Australian.

Mr Iemma accused the Gillard government of betraying the Hawke-Keating legacy of economic reform, instead embracing the environmental policies of the Greens’ agenda.

“We embraced economic growth, and the benefits of economic growth, in the Hawke-Keating era, but we’re fighting this battle on the Greens’ turf, not our turf. Bob Brown wants to replace the Labor Party as a major party.”

Mr Iemma accepted the science of climate change. “Yes, we should take action, but we should not get so far out in front that we injure ourselves,” he said.

He rejected the government’s view that Australia’s carbon tax was similar in scope to actions being taken by other countries.

“Every day there are reports of growth and development in China, its growth in emissions will far outstrip our total emissions,” Mr Iemma said.

Even those who think we should take action believe that the carbon tax is bad policy. And the very best quote of all:

“We should always be standing shoulder to shoulder with steelworkers and miners and factory workers before we stand shoulder to shoulder with the likes of Bob Brown and Christine Milne.”

Wonderful stuff. Morris Iemma is doing nothing more than speaking plain common sense, which as we all know, is very uncommon.

With such senior members of the Labor movement speaking out publicly, and with two major unions rejecting the tax in the last week, serious cracks are appearing.

Read it here.

Headline of the Day


Trust evaporated

From The Telegraph:

“PM Julia Gillard says Hunter Valley coal jobs are safe” (source)

From August 2010:

“There will be no carbon tax under the government I lead.”

Nobody believes a word you say, Julia.

Paul Howes backflips on Gillard's carbon tax


Folded like a pack of cards

What was he promised, I wonder?

THE head of Australia’s largest blue collar union yesterday provided a much-needed fillip for the Gillard government by endorsing its carbon tax.

The endorsement by the Australian Workers Union came just weeks after AWU national secretary Paul Howes vowed to oppose the impost if it cost a single worker’s job.

Mr Howes said in Sydney yesterday he had been mollified by the generous industry compensation package, particularly for the steel sector.

But Mr Howes, whose union represents about 135,000 workers, most of whom work in trade-exposed areas of the economy, said the government had done a less-than-stellar job of selling the controversial package.

“Look, it hasn’t been perfect, has it?” Mr Howes said of the government’s salesmanship.

“I mean, Blind Freddy can tell you that. But that’s their job. They’ll work it out.” (source)

Such touching faith in Labor’s abilities. He must be thinking of previous successes: BER, pink batts, er…

The reality is that the unions and Labor are joined at the hip, and despite all the tough talking, when the crunch comes, they collapse like a cheap accordion.