This week in Parliament the Government pointedly refused to rule out a carbon tax on petrol. A $26 a tonne carbon price on petrol would add about $3 to the cost of filling up a car. This would be on top of the carbon tax’s impact on power bills, which the Australian Industry Group this week predicted would go up $300 a year thanks to carbon pricing alone.

Before the last election, the Prime Minister repeatedly ruled out a carbon tax.
As part of her deal with the Greens to cling to power, she has specifically embraced a price on carbon and has promised to establish a carbon taxing regime next year. A carbon tax would cascade through the economy ultimately adding to virtually every price. Every time you turn on the lights you will pay under Labor’s carbon tax. Every time you go to the petrol pump you will pay under Labor’s carbon tax.
This is the essential truth that the government is trying to hide. The Climate Change Department secretary told Senate estimates this week that the government had done no modelling of the impact of the economy-wide impact of a carbon price for the past three years.
For the Labor Party to introduce a carbon tax in breach of its election commitment and without explaining in advance its precise impact on prices would be utterly unconscionable.
It’s now clear that Labor’s plan for the year is higher taxes and more wasteful spending. Labor’s flood tax, carbon tax and mining tax are designed to sustain a politically targeted spending spree now that the surplus has gone and the financial assets carefully accumulated by the former government have been swamped by debt.
The NBN, for instance, is being rolled out in seats the Labor Party needs to hold or win even though it’s more and more clear that “fibre to every home” is expensive and unnecessary. The government has appointed former Howard government finance minister John Fahey to oversee flood reconstruction because it knows that the public doesn’t trust it not to waste money.
The Coalition has a strong plan to reduce carbon dioxide emissions. We would create from the budget a $1 billion-a-year fund to pay for tree planting, soil improvement and technological innovations that would reduce emissions. This Emissions Reduction Fund would consider proposals from the private sector and buy those that offered the most sustainable long-term outcome. There would be no carbon price to consumers. There would be no big new tax on everything.
By contrast, the Prime Minister has never seen a tax she didn’t like and never had a tax she wouldn’t hike.
Opposition Leader Tony Abbott will be blogging live at 4.30pm today at dailytelegraph.com.au.
See more of the fabulous Jon Kudelka’s cartoons here.
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