Australian Prime Minister Kevin Rudd is NOT ditching the carbon tax. He isn’t even cutting it. Your power prices won’t fall by a single cent on his announcement.
… in this case, he simply doesn’t have the power to guarantee what the carbon tax price would be. Because what Rudd’s doing, is promising to leave it to be set by Europe and/or financial speculators…
At the moment that European price might be $6 a tonne of CO2 emitted. That’s barely a quarter of the $24 price under the Gillard-Milne (Greens leader, Christine Milne) carbon tax from the start of this month.
Under Rudd’s promise, that price and so the price of the electricity you buy, remains locked-in until July next year. Indeed, it is the only thing that’s certain under his election promise.
We have to wait until July next year, before his promise to end the fixed (and fixed to rise) price, kicks in. It is just ludicrous to assume that the European price will still be $6 then. It could be. Equally it could be $12. Indeed, it could be $20.
That’s another critical point in all this. The climate change soul-mates in Europe of our prime minister, desperately want their price to be much higher than it currrently is…..
The whole ‘point’ of this carbon tax/ETS (emissions trading scheme) IS to hurt everyone with higher electricity prices…
But at least, with a (real) carbon tax – as the existing Gillard one was, in its pre-ETS form – we are paying the money for these permits to ourselves. As in, to the government…
But with the ETS, open to global markets, we will be paying some – most? all? – the money to foreigners, to buy their ‘permits.’ Whether to legit (sic) ones in Europe or to the ubiquitous Nigerians.
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.