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Some news on coalition plans to wind back the Carbon Tax when they get into Government

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A report in The Australian headlined – Libs to take axe to climate agencies.
Everybody employed by these shonky agencies is warned now – get a real job if you can before GreenLabor are voted out.
Greg Hunt says – “Mr Hunt said many of the programs were contradictory, citing the plans to pay for high-emission brown-coal generators to close while another part of the scheme involves an energy security fund that would pay coal-fired power stations to keep operating.”
Reminds me of a few years back when our Treasurer The Hon Wayne Swan was still stimulating the economy with programs like “pink batts” and “school halls” – at the exact same time the RBA was increasing rates to dampen down an over-stimulated economy.
Mad.

4 thoughts on “Some news on coalition plans to wind back the Carbon Tax when they get into Government”

  1. Warwick,
    I find the release very interesting for its timing. Not after the failed Rio+20 junket, but because it has been made public.

    It would seem that the Coalition have realised that 65% of Australians no longer believe in man-made global warming, and reason that getting 65% of the vote will be enough to win the next election. Labor, pushed by the Greens, will have to oppose this, or explain why the carbon tax is such a “Good Idea”, leaving them stuck around 30% in the polls. It can also be useful if their fear of Rudd resurrected and promising to reduce the carbon tax before an immediate election takes place, by reminding people about the waste and confusion in his first life.

  3. I made this comment on Catallaxy today
    catallaxyfiles.com/2012/06/25/bad-ideas-are-slow-killers/#comments
    if the links don’t work here have a look at Catallaxy site and my comment to see the damage that Labor has done in Queensland

    something special is happening in Queensland
    THE STATE BALANCE SHEET
    The critical financial issue facing Queensland in the immediate future is the high and
    rising level of gross debt (identified in the balance sheet as ‘Borrowing’). Gross debt
    represents an accumulation of gross borrowings across a number of years, primarily
    driven by cash shortfalls.
    Up until 2006-07, Queensland’s gross debt levels were low and stable. The majority
    of the State’s gross debt was held by Government Owned Corporations. Gross debt
    in the General Government sector was small and manageable, representing around
    20% of the State’s gross debt.
    As illustrated in Chart 2.1, the level of Total Government gross debt almost tripled
    over the period 2005-06 to 2009-10. Gross debt is currently $64 billion in 2011-12,
    and is expected to reach $92 billion in 2015-16. On current projections, gross debt
    will reach $100 billion by 2018-19.
    Most of this increase has occurred in the General Government sector, where gross
    debt has increased more than tenfold in the last five years.

    How to repair the State’s finances

    The fiscal repair task is enormous.
    Either expenditure (both recurrent and capital) needs to be wound back or revenues
    need to be dramatically boosted, so that the accumulation of further debt is arrested.
    However, given the relatively narrow State tax base and the heavy reliance on
    Australian Government payments, there are limited prospects to boost revenue. It is
    likely therefore that a major part of the adjustment burden will need to be borne by
    the expenditure side of the budget, particularly recurrent expenditure. This is where
    much of the structural imbalance in the budget originated.

    the interim report into Qld finances can be found in sections here

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