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ETS: emissions trading scheme or energy tax swindle?

By David Flint - posted Wednesday, 6 August 2008


When Labor turned its back on socialism in the 80s it rushed to endorse free market economics. Hawke and Keating - with Liberal support - unilaterally opened up our markets without requiring reciprocity. As a result most of our manufacturing industry moved off shore. And our agriculture remained seriously damaged by the EU, US and Japan who refused to follow our example. Just as every other power will if we are foolish enough to adopt an ETS.

All we have left is mining and the talents of people in the private sector. A unilateral and increasingly burdensome ETS will run down our mining industries and impose costs on all.

Rather than imposing a new energy tax, or modifying excise to pay for it for an initial period, so like frogs we can be boiled without noticing, we should take advantage of our comparative advantages. That is what both government and opposition have been telling us to do for decades.

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We could begin not by fiddling with the excise, but getting rid of this burdensome and unfair tax altogether. That would reduce fuel costs by almost half and vastly stimulate the economy.

And for ministers who whinge about any resulting increased global carbon imprint, just what was the carbon footprint of the various jets, and air-conditioned hotels for the legion of ministers and advisers sent to Bali for something which could have been done via the Internet? Once again, the message to the people is do what we say, not do what we do.

To those who say government revenue would be threatened without an excise, the answer is twofold. The growing surpluses are the peoples’ not the government.

Governments typically are wastrels - how else can we possibly explain the generous gift funded by working families to the surprised executives of that most profitable firm, Toyota?

Governments need discipline, and reducing taxes would bring them into the real world in which ordinary Australians live.

So what should happen to an Australian ETS when the government eventually reveals the details? The Senate should ensure the fullest public debate through a public inquiry before a Senate Committee.

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It will be in that inquiry that the truth can emerge, provided of course the media plays its role in providing balanced reporting.

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About the Author

David Flint is a former chairman of the Australian Press Council and the Australian Broadcasting Authority, is author of The Twilight of the Elites, and Malice in Media Land, published by Freedom Publishing. His latest monograph is Her Majesty at 80: Impeccable Service in an Indispensable Office, Australians for Constitutional Monarchy, Sydney, 2006

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