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it's not going to be roses « Previous | |Next »
July 14, 2014

So the Coalition's proposed policy switch from carbon pricing to Direct Action this week amounts to a shift from taking money from polluters and distributing it to taxpayers to taking money from taxpayers and handing it out to polluters. The Coalition is increasing corporate welfare for the big polluters such as the fossil fuel industry.

The significance of the carbon tax fear campaign that was waged by the Coalition and business is to trash tomorrow in order to make profits today. The Coalition calls it 'rescuing the country.'

PopeDnegotiations.jpg David Pope

Now Abbott did claim that grocery prices would go up by $10 a week with a carbon price; that the price of a new home would jump $6000; and that the cost of running a farm would leap $12,000 a year. Yet the carbon tax has played only a small part in the increase in power prices and so getting rid of it won't fix the problem.

What happens when people begin to realize that carbon pricing was not a wrecking a ball for the economy, and that electricity prices will continue to rise after carbon pricing is gone? When it is realized that it is the networks pushing up prices and increasing their profits despite the decrease in consumer demand.

The real problem is that the prices the networks are allowed to charge – whether government or privately owned – are regulated by government authorities. Loopholes in the price regulation regime have made it easy for the network businesses to feather their nest at the expense of consumers.

Will the Coalition push to reform the electricity pricing arrangements?

People's main concern and fear is becoming unemployed. They need to pay the rent or mortgage and put food on the table, and they have cause to worry because the growth in jobs is not keeping up with the growth in people looking for them. There is a growing disconnect between economic growth and increasing employment. Is this going to be a jobless recovery?

| Posted by Gary Sauer-Thompson at 11:54 AM | | Comments (12)
Comments

Comments

The Coalition's mantra is that the carbon tax pushes up the cost of electricity, it pushes up the cost of living and the cost of doing business in Australia without doing anything for the environment.

So everything will be hunky dory next week.

According to the Coalition households would be $550 better off without the carbon price. They will have to spin hard.

Australia is a country with extraordinarily high network costs, soaring gas prices, and falling demand for its thermal coal.

All the anger and outrage in the carbon tax campaign--the end of the world that we knew--- was little more than a political strategy to crush their opponent.

Doing away with carbon pricing means less revenue for the Coalition government. But retaining the compensation for the carbon pricing means a greater budget deficit.

I's actually an expansionary budget as it adds more to the deficit. So much for the budget crisis.

"According to the Coalition households would be $550 better off without the carbon price. They will have to spin hard."

That was pre-election. They've moved away from that as they are now saying that households should be better off.

Yep the new talking point is that prices may not come down and down and down once the carbon "tax" was gone.

"That was pre-election. They've moved away from that as they are now saying that households should be better off."

The Coalition's style and strategy adopted from the GOP in the US is one of outrage upon outrage upon outrage. It's demographic is the seige mentality and cultural defensiveness of the angry old white male and female voter.

The cost of living is going to become more expensive with the Medicare co-payments, higher education fees, slower rates of increase of pensions and so on.

Abbott was elected by the right-wing of his party for a single purpose: to destroy any meaningful action in Australia against the threat of climate change. When the carbon tax is repealed, the leaders of the coup and the fossil fuel interests they represent will receive from a dutiful prime minister what is expected of him..

None of what what Abbott has said about carbon pricing and climate policy has been held to be true. On the domestic stage, Whyalla did not collapse, lamb roasts did not reach $100, businesses did not close.

Abbott’s rhetoric ion carbon pricing tailored for a particular audience: – the vested interests intent on eking out every fossil fuel dollar while they still can, the right wing ideologues, the conservative commentariat that cannot accept the Greens could be right about anything, and the small group of influential crack-pots that deny the science at every turn on their talkback radio programs and newspaper columns.