Carbon Tax package finally unveiled

But to begin we should first return to basics. We must recognise the virtual consensus in the global scientific community that global warming is real, and that carbon emissions by human beings contributes to this.

So to what extent will the carbon tax and associated programs add up to a reduction in emissions? The carbon tax will give a strong market signal for both investors and consumers to reduce emissions however practicably possible.

Indeed, Prime Minister Gillard has stated that this will result in "a reduction in carbon pollution of 160 million tonnes by 2020. [That's] the equivalent of taking 45 million cars off the road."

Businesses will seek energy-saving measures, while households will do likewise, and also consider investment in renewable energy. There could well be a boom in the micro-renewable energy sector.

Overwhelmingly, this will occur without financial pain for middle and low-income house-holds as with compensation, the main aim is to provide the market with a 'price signal' and not to raise revenue.

Meanwhile a "$2 billion-a-year Clean Energy Finance Corporation," will drive investment for research and development of clean energy technologies. In this field Australia stands to become a genuine 'world leader'.

Adam Morton from 'The Age' has noted how "some carbon tax revenue will also be spent buying out and shutting down about 2000 megawatts of coal power, most likely either the Hazelwood or Yallourn power plant in the Latrobe Valley, plus the smaller Playford station in South Australia."

Morton has also observed how "the money to shut the plants will be from tax revenue paid by ''big polluters,'' not budget cuts that reduce services."

This is absolutely crucial because Tony Abbott has committed to expensive forms of "direct action" on climate change running into billions and billions - which would be paid for through savings elsewhere in the Budget.

Refusing to submit his proposals to Treasury for costing, Abbott must nonetheless be aware that his proposed initiatives could not be funded simply through "efficiencies.".They would inevitably involve austerity measures.

Perhaps these would apply in health and education, or perhaps through further privatisation of roads and imposition of flat 'user-pays' tolls, for which working class Australians would pay.

So before we even begin to address accusations of "socialist redistribution," we need to observe that price signals and direct intervention will make significant inroads into Australia's carbon emissions, and as such is well justified on environmental grounds alone.