Earlier today Julia Gillard launched her carbon tax – despite her explicit promise not to do so before the last election.
It was immediately clear that this illustrates how Labor cannot be trusted.
The real story is in what Julia Gillard didn’t tell Australians today…
TAX RATES UP
Income tax rates are actually going up! Yes, Labor is increasing income tax rates for the first time since the 1980s. From the government’s own documents:
Source: Securing a clean energy future, Australian Government
SMALL BUSINESS
The carbon tax continues Labor’s assault on small business.
In the words of the Australian Chamber of Commerce and Industry, “Economically, the tax is a harsh blow to import and export competing businesses, especially small and medium businesses. Our international competitors get a free kick, of our own making.”
The Victorian Chamber of Commerce and Industry went further:
“Today’s carbon price announcement will leave a sour taste in the mouths of many small businesses, which has become the `forgotten sector’.”
Labor has announced a $20 million fund for organisations to communicate with small business about how to improve energy efficiency. But there is no direct support for small business, only costs. Small business doesn’t need more paperwork or advice, it needs Government to get off its back and stop increasing compliance and business costs.
MASSIVE NEW BUREAUCRACIES
In what is probably not a major surprise, Julia Gillard has proposed the creation of 6 massive new bureaucracies, administering countless new programs. Just to list some of those that have become apparent in the last few hours:
- Clean Energy Finance Corporation
- Australian Renewable Energy Agency
- Climate Change Authority
- Clean Energy Regulator
- Energy Security Council
- The Australian National Registry of Emissions Units
Of course, this comes on top of the 10,000+ additional public servants employed since 2007.
VICTORIA TO BE HIT HARDEST
Victoria will be hit harder than anywhere else.
With over 90% of Victoria’s electricity being generated by Latrobe Valley brown coal, Victoria will experience the highest increase in costs.
The Victorian Government released modelling last week on a proposed carbon price of $25, only marginally higher than Julian Gillard’s announcement of $23 today.
The costs of this are extraordinary – $2.5 billion across the Victorian economy.
Environment Victoria has already used the carbon price to call for the shutdown of Hazelwood – the power plant that provides 23% of Victoria’s power.
…BUT NOTHING DONE ABOUT ONE OF OUR BIGGEST EMITTERS…
The Australian Government is a huge emitter of greenhouse gases – big, and increasing.
REACTIONS THIS AFTERNOON…
The Victorian Employers’ Chamber of Commerce and Industry says the carbon tax announcement “would leave a sour taste in the mouths of many small businesses” while the Housing Industry Association says there will be ‘additional building costs and higher mortgage payments’ and job losses in the building and manufacturing sectors.
But, perhaps the best and most succinct analysis of Julia Gillard’s tax-and-partially compensate plan comes from former Labor Environment Minister, Graham Richardson, who described is as ‘politically cunning‘. Just like her “promise” before the last election, this is not a policy driven by the national interest. This bad tax, based on a lie is driven by the interest of the Labor-Green alliance. Remind your friends, colleagues, family and workmates that Julia Gillard’s word is worthless.
Over the coming weeks, Tony Abbott will lead our campaign against this tax, supported by his Shadow Ministerial team.
My portfolio of small business will be particularly hurt by this tax. As I go around the city, country and nation I continually hear the cry of our independent small businesspeople who ask for nothing more than a fair go – not a handout, but a reduction in the burden of red tape, compliance and taxes. This tax will only make that burden greater.
I look forward to working with you all in ensuring that Julia Gillard does not once again subject the national interest to her own political interests.