CO2 Tax Australia – Taxing What They Do Not Understand

Posted on Tue 07/19/2011 by

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Andrew BoltBy Andrew Bolt

Jennifer Hewett:

The general mood in business is that this government is dominated by those with little experience of business and even less appreciation of its needs and its contribution to economic growth—or lack of it.

One event from a leadership change – probably to Simon Crean, with the backing of Martin Ferguson:

A week since details of the tax were launched, Labor MPs reported public panic over its impact on family living costs.

“I have never seen such rage in this country – ever,” a senior Labor MP said of the electorate’s mood.

Many caucus members contacted yesterday admitted to despondency about Labor’s chances at the next election, due in 2013….

Former Labor leader Simon Crean is being talked of as a possible replacement for Ms Gillard.

The head of BetStar, Alan Eskander, said that “eight out of 10” transactions on the ALP leadership were for Mr Crean.

The online gambling house suspended betting for him after his odds shortened from $101 to $13 in a week.

The Regional Development Minister invited colleagues to a “one-on-one drop-in information session” in his office last month.

UPDATE

More lack of understanding. Reader Victoria 3220 reports:

On ABC Adelaide yesterday, PM Gillard was asked if the price of European carbon permits was substantially below the $23 to be paid in Australia.

HOST: What is it at the moment? That’s not a gotcha question by the way, I heard a commentator say that it’s a lot cheaper in Europe at the moment. Is that correct?GILLARD: Its gone up and down, and there have been days when its been cheaper than $23….

If you look at the EUA trading history, and do a back of the envelope calculation to adjust the Euro to $A, it appears that the opposite is true. Doing a rough Euro to $A adjustment, it appears that there may have been only a few days in the past year where the cost of European permits touched A$23, not as PM Gillard claimed, there have been days when its been cheaper than $23. European permits are currently trading at around Euro 12.

UPDATE 2

Reader Jo writes in despair:

I am by no means an expert in the field of politics or policy, but have strong opinions how this Labour government impact small business owners.  I am a single mother with 2 small boys, owning a small IGA in regional South Australia. I employ 3 full time staff, 5 senior casual and 8 junior casual staff and are the major employer in a small farming town.  We are the only supermarket supplying the town, and we rely heavily on farming and tourism, and have a lot of miners living in our town travelling to for the mines for work.  I endure heavy freight costs, high wages, a large electricity bill each month and all other costs assiciated with running a busy supermarket.

The new Fair Work Act impacted my business greatly, making me remove all part time staff and switching to all casual staff (excluding 3 full time management staff).  The new leglislation is so difficult to follow and has already increased my annual wages by 10%.  We still have phasing in penalties to endure and with the 3.4% increase this year to the minimum wage has made me cut back on hours for my employees, many of who rely on their employment with me to live their day to day lives.  A senior casual check out operator gets $20.78 plus Super, plus Workcover.  This increases to double time on a Sunday and double time and a half on Public Holidays.  This is crazy for a small shop in a busy tourism town.  I think eventually I will have to close the store and run Monday to Friday only, as i think a lot of other stores will end up doing.  It will not be practical to open on such his wage cost days.

Just with the extra costs I am expecting to get with the increases in wages penalties, increased power, freight increases due to the ridiculous Carbon Tax, I already am feeling the pressure.  We will need to pass on these costs to our customers, probably driving my customers to a near by town, where they can shop at Coles and Woolworths (still under their enterprise bargianing agreements so not subjected to the ridiculous wage rises we in small business have had), how am I to survive running this small supermarket.

Has Julia consulted the Small Businesses of Australia to ask our opinion.  I believe small business employ around 70% of the Australian population.  I know the Master Grocers Association (MGA) were extremely disappointed when the minimum wages increased by 3.4% this year, they asked for no increase as we already have high wage costs and additional penalties still being added.  On one of my phone conversations with MGA, they told me the Government wasn’t listening.

The carbon Tax is going to have a huge impact, my prices across the store will rise, my customer base will most probably decline (I am already experiencing a 6% decrease from the same time last year), I will need to reduce my staff, ordering etc etc.  What should I expect for my future in small business, especially, what should I expect for my 2 small boys.

Andrew Bolt is a journalist and columnist writing for The Herald Sun in Melbourne Victoria Australia.

Andrew Bolt’s columns appear in Melbourne’s Herald Sun, Sydney’s Daily Telegraph and Adelaide’s Advertiser. He runs the most-read political blog in Australia and hosts Channel 10’s The Bolt Report each Sunday at 10am. He is also heard from Monday to Friday at 8am on the breakfast show of radio station MTR 1377, and his book  Still Not Sorry remains very widely read.

Read more excellent articles from Andrew Bolt’s Blog . http://blogs.news.com.au/heraldsun/andrewbolt/