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An ETS is like a GST – with no limit October 21, 2009

Posted by honestclimate in Discussions.
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An ETS is like a GST – with no limit

Sen Cory Bernardi

Sen Cory Bernardi

By Cory Bernardi
AC, October 20, 2009

Australia faces one of the most important policy debates in recent memory.

Unfortunately the scrutiny and implications for our nation of Labor’s Carbon Pollution Reduction Scheme (CPRS) have been lost amid Coalition leadership ructions and a lack of critical inquiry by many involved in the political process.

The CPRS is a misnamed Emissions Trading Scheme (ETS) that sets a limit on the level of carbon dioxide (CO2) emitted in Australia and allows the purchase and sale of the right to make these emissions. Basically, companies and industry will be forced to pay for the carbon dioxide emissions they produce.

At first blush, it sounds reasonable and even logical as a means of reducing the newly defined ‘dangerous gas’ that is necessary for life on this planet.

Labor’s CPRS is a pig of a policy and while the Coalition moving amendments will undoubtedly improve it, no amount of lipstick will disguise the fact that it is still a pig.

However, it is not just Labor’s CPRS that is flawed. The very notion of any form of ETS as a means of addressing the political demands for decreasing CO2 emissions needs to be reviewed.

An ETS is a new form of tax that introduces a cumbersome bureaucracy and a corruptible quasi-market mechanism. It transfers massive amounts of wealth from the productive area of the economy to an already bloated and inefficient government.

This new tax will increase the costs for every small business as the flow on effects are passed through the economy.

These increased business costs will then be passed on to every consumer in Australia through higher prices for power, food and transport. In fact, the price of everything you purchase, use or consume will be affected by the introduction of an ETS.

Simply put, an ETS is like a Goods and Services Tax without any upper limit on the amount that can be levied. Once that is understood, it becomes clear why the Rudd Government prefers their new tax be known by the misleading title of a Carbon Pollution Reduction Scheme.

An ETS will be a burden on all Australians but a boon to the very financial market traders that Kevin Rudd has recently blamed for destroying the world economy. They will be able to manipulate a relatively small market, forcing prices ever higher as they seek to profit from your increased tax burden.

Even George Soros, the billionaire leftist and global financier of environmental causes, thinks an ETS is a bad policy response to climate change.

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Comments»

1. Andrew - October 22, 2009

A great article. If he wrote it himself we finally have a politician worthy of his position.


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