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Think energy costs now, just wait for the carbon tax

Kevin Andrews

by Kevin Andrews

03 Nov 05:35am

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Filed under: Carbon Tax, Cost Of Living, Electricity Prices, Energy, The Greens

72 comments

A utilities representative recently came to my front door offering a better deal on our gas and electricity prices if we changed to a different supplier. He was offering a larger discount than the existing supplier.

I owe them how much?

The visit prompted me to look back at the cost of electricity over the past few years. The results were startling. Last year, the costs were more than 50 per cent higher than five years ago. Our usage was about the same.

The price increases are being felt by households across Australia.  According to Australian Bureau of Statistics data, power bills increased by 50 per cent. In the same period, total expenses only increased by 16 per cent. Since Labor has been in government, the prices have risen by more than 42 per cent.

For people living in Sydney, power bills next year will cost almost $500 a year more than they would have if the share of spending on electricity had remained at 2006 levels. Currently Sydney residents are spending more on power than fruit and vegetables.

The story is the same elsewhere. In Melbourne, power and water bills are 45 to 60 per cent higher than five years ago. And gas is 20 per cent higher. This is up to six times higher than inflation over the same period.

At the same time, household savings have fallen. The share of debt-free households has fallen to 36.2 per cent, the lowest level since the Melbourne Institute of Economic Research commenced collecting the data in 2001.

A recent report by the Land Values Research Group found that the Australian housing market is over-valued by 45 per cent. This supports the findings of The Economist international house-price indicator, which found local housing a staggering 63 per cent over value in October.

Australian households are already suffering from these trends. If interest rates are increased by the Reserve Bank to counter inflationary pressures in the economy, as most financial commentators expect, it will have a pincer effect on many people.

In recent years, housing has become less affordable. Home ownership is being delayed, as is full home ownership. There has been a substantial increase in the spatial gap between the haves and the have-nots. Rental affordability has fallen significantly. In addition, water, sewerage, health and education costs have risen substantially.

At the same time, the Gillard government is continuing its massive expenditure, which is adding more pressure to interest rates.

If the current situation is concerning, the future is scary.

On top of these pressures, the Gillard-Brown Labor-Green Alliance proposes a new carbon tax that will force up the price of power, transport, and household items.

The Melbourne price comparator, GoSwitch, predicts that electricity prices will be as high as $10,000 a year for some households.  The Energy Retailers have warned that “consumers are in the firing line from inevitable price rises.”

Labor’s other programs, such as the NBN and the Murray-Darling proposal, risk massive expenditure over-runs, adding further to the cost-of-living pressures on Australian families. This is without unexpected factors, such as widespread floods that could occur over the next few months.

Labor’s economic failures, coupled with its headlong rush to raise taxes, will leave more people struggling to make ends meet.

Most commented

72 comments

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    • David says:

      05:23am | 03/11/10

      Brilliant!

      Not only do the Liberals cause the higher utlities prices by first privatising then deregulating the market, but you actually have the nads to try and blame it on the ALP.

      Pull the other one, it’s got bells on.

      Reply

    • Dash says:

      07:54am | 03/11/10

      Ah David sorry but the carbon tax is the ALPs policy in bed with the greens! It will arguably be the most inflationary policy decision in decades driving up not only electricity prices but every other good and service dependent on electricity! That one can be worn fairly and squarely by Gillard and Labor. No nads required on that one I’m afraid.

      The Murray Darling policy noise is coming from the ALP. The overheating of the economy through the second stimulus driving up interest rates was the ALPs policy. There has now been seven rises in official interest rates over the last 12 months. Mainly because of the ALP’s policies and resultant concerns over inflation. And as Kevin says, the carbon tax hasn’t even happened yet?

      The Rudd government promised Australian’s “Grocery choice”, “Fuelwatch”, “More affordable housing”, “Cheaper Better Childcare” and “no carbon tax”. Seems like they are the ones pulling our leg because they have not delivered on any of those promises. Why did the ALP promise to improve cost of living expenses and then pursue policies which had the opposite effect? Perhaps they really are that stupid?

    • The Badger says:

      09:10am | 03/11/10

      You are of course right David.

      Although I’m sure they said that the competition would result in price decreases for consumers.

      and after we sell the public assets, we could stash the money away and do nothing for a decade. Or maybe let a bit go in welfare for the middle / upper class as a vote buying exercise when we used up all the tricks in our “xenophobic playbook”.

    • Dash says:

      10:16am | 03/11/10

      Or Badger, rather than do nothing, perhaps we could use it to pay off Labor’s debt! Or maybe use it to leave a surplus which could then be used to stimulate the economy with a “vote buying exercise"of $900 if say something like a GFC came along! Or perhaps leave it for the ALP to p!ss away on insulation and green loan fiascos, or perhaps for the ALP to allow builders to rort it under the school halls program! The possibilities appear endless Badger.

      Of course once it’s all used up, we’ll need to think of something else like say a profits tax on the sector driving our economy or a carbon tax perhaps. Or maybe we could steal the states GST. Or all of the above. Spend spend spend. To hell with inflation and interest rates!

    • dead to me says:

      05:45am | 03/11/10

      Funny how the bulk of ALP voters are hard working families struggling to pay bills and keep up with the out of control banks and interest rates. I bet they must still be proud for voting in Gillard a PM who doesn’t give a toss about them. Like people have been saying in the Punch forums ’ We get and deserve the government we voted for’. Super!

      Reply

    • Quentin Quipper says:

      05:48am | 03/11/10

      So I guess that when Australia returns to its sensibility and re-elects a Liberal government we can look forward to cheaper G.S.T, free power bills and our house prices will depreciate by half,  reflecting their true worth. Promises you shall no doubt keep as core values in the policies you take to the next election.

      Reply

    • persephone says:

      05:49am | 03/11/10

      OMG the world is coming to an end! Head for the hills!

      Can I start by pointing out that house prices rose massively under the Howard government? Far from seeing this as a problem, your boss at the time said wtte ‘noone’s ever complainted to me because the value of their house has gone up.’

      I’d also point out that, under an emissions trading scheme, the majority of people will receive more money in their pocket (through compensation) than they will be paying out in higher bills.

      So if you want to ease the pressure on households due to rising electricity costs, I’d suggest you start agitating for the ETS.

      PS what are you doing at home during the day anyway? I thought you worked.

      Reply

    • MarK says:

      07:28am | 03/11/10

      “Can I start by pointing out that house prices rose massively under the Howard government?”

      The same could be said of any government. Point is moot.

      “nder an emissions trading scheme, the majority of people will receive more money in their pocket (through compensation) than they will be paying out in higher bills.

      Unfounded. Untested and just a motherhood statement. Think about it seriously. The premise of the whole thing is to disincentivise carbon production by making it more expensive. And you claim everyone will be better off? Totally ridiculous assumption.

      “So if you want to ease the pressure on households due to rising electricity costs, I’d suggest you start agitating for the ETS.”

      I see you branching out into comedic writing.

      “PS what are you doing at home during the day anyway? I thought you worked. “

      I see the comedic writing is not going so well. Oh dear.

      It is laughable that the Labor cheer squad on The Punch claims that an ETS will make us all better off. A plan to make us all better off surely would have been popular policy. I wonder why the PM advocated Rudd dump it then?

      Doesn’t really make sense.

      Desperation has a peculiar smell. I noted the same stench when Rudd began his descent.

    • Aitch B says:

      07:29am | 03/11/10

      @Pers

      So by using the word ‘recently’ you assume Andrews was home on a week day between the hours of 9 and 5? You assume he spends every waking hour working?

      Very long bow, Pers. In fact a lot of these ‘representatives’ knock on your door at weekends or evenings when there is more chance of breadwinners being at home.

    • Dash says:

      08:18am | 03/11/10

      What happened to the promise of “More affordable housing” Perse? Remember that one from ‘07?

      Ah, thanks for the note about an ETS but isn’t the ALP/Green coalition pursuing a “price on carbon”? A price that will be passed on to consumers.

    • Ryan says:

      08:48am | 03/11/10

      @Dash: no you are mistaken, Gillard told you how it works, first the Labor people promise you everything and anything you want, then they get into power, deliver nothing and do exactly what they want.
      The rich Labor politicians wouldn’t have a clue what we are going through, next week when we can’t afford bread they will be telling us to eat cake.

    • persephone says:

      03:12pm | 03/11/10

      So sad that, after using lots of big bits and paper and really big crayons, you guys still haven’t grasped how the ETS is meant to work.

      Even sadder, when you think that it was Liberal party policy.

      Yes, electricity bills (for traditional coal fired electricity)
      will go up. Not denying it. This will encourage people to look at ways of reducing their (coal fired) elecriticity use.

      However, at the same time, they will receive compensation from the government (through pension increases, increased family benefits, etc) which will more than offset the price rises.

      Treasury estimates that the lowest income households will be up to $200 a year better off.

      (Of course, that was under the old model; we don’t know at yet what the new model will look like, but, as this principle has been core to all ETS proposals, then it’s very likely to stay).

      Not unfounded - based on a raft of Treasury documents, the Garnaut report, the Stern report, and various other papers by serious analysts.

      Not untested; the European example has provided a good working model. The fact that they’ve already got an ETS in place means we can look at what’s happened there to see which bits worked and which bits didn’t.

      And then we have the classic misunderstanding that a price on carbon is somehow different from an ETS.  An ETS is just one way of putting a price on carbon.

      The principle of compensation to the ordinary consumer is factored in to all models I have seen which put a price on carbon. The higher the price, the more money the government has to spend on compensating users for the higher prices.

    • MarK says:

      07:11am | 04/11/10

      Really pers you are slipping. Pathetic attempt.

      “So sad that, after using lots of big bits and paper and really big crayons, you guys still haven’t grasped how the ETS is meant to work.”

      Yeh we have.

      “Even sadder, when you think that it was Liberal party policy.”

      Fantastic!!! We can all look forward to the White Australia policy any time soon. After all that was Labor Party policy. Some tariffs too? When are we seeing them back?

      Get a new argument…pointless.

      “Yes, electricity bills (for traditional coal fired electricity)
      will go up. Not denying it. This will encourage people to look at ways of reducing their (coal fired) elecriticity use.”

      And the alternative are so much cheaper right?

      Thanks for agreeing with the article.

      “However, at the same time, they will receive compensation from the government (through pension increases, increased family benefits, etc) which will more than offset the price rises.”

      So the government will increase spending to counter increase in living prices.

      Inflation genie etc etc . Listen to yourself. That is so flawed it is scary.

      “Treasury estimates that the lowest income households will be up to $200 a year better off.”

      ROFLMAO - yeh right. They also missed, what do you call it, the greatest financial shock in 75 years. Show us the full modeling. Or is it like the mining tax modeling, you know just change the prices of a few things or assume only power goes up and nothing else.

      If it was this good it would have been in 2 years ago.

      “(Of course, that was under the old model; we don’t know at yet what the new model will look like, but, as this principle has been core to all ETS proposals, then it’s very likely to stay).”

      Hahahahahaha - great little rider there. Always look at the fine print.

      “Not unfounded - based on a raft of Treasury documents, the Garnaut report, the Stern report, and various other papers by serious analysts.”

      The Stern report. Bruhahahahahahahahahaha

      Awesome. Using Stern. I love it

      “Not untested; the European example has provided a good working model. The fact that they’ve already got an ETS in place means we can look at what’s happened there to see which bits worked and which bits didn’t.”

      Yeh - we all have access to the web. it ain’t working.

      “And then we have the classic misunderstanding that a price on carbon is somehow different from an ETS.  An ETS is just one way of putting a price on carbon.”

      It is all A Great Big New Tax On Everything

      “The principle of compensation to the ordinary consumer is factored in to all models I have seen which put a price on carbon. The higher the price, the more money the government has to spend on compensating users for the higher prices. “

      And you see no problem with this?

      “the more money the government has to spend on compensating users for the higher prices.”

      Quote repeated for emphasis.

      Awesome stuff this.

      You are a joke.

    • dead to me says:

      05:54am | 03/11/10

      Knowing that hard working ALP voting families are going through struggle like the rest of us makes me happy as a kid in punch. Gillard will destroy us all. Another interest rate hike please give us another hike soon, thank you sir can I have some more.

      Reply

    • Fred says:

      06:30am | 03/11/10

      The Greens are running the show. Gillard looks out of her depth and can’t make a decision. She is all spin. As for Swan. . . no wonder the banks can act with impunity.

      Reply

    • acotrel says:

      07:13am | 03/11/10

      Fred, I always get a giggle when LIb supporters accuse Labor pollies of getting into ‘spin’!  Are we really supposed to forget the actions and rhetoric of the Howard government?

    • MarK says:

      08:58am | 03/11/10

      Gather around kids and have a look at what we have here.

      This is what a dog whistle, straw man or blame game argument looks like.

      You see you start with an ideological position that you are correct no matter what.

      Then when things go bad you;

      1. Divert attention to anything else
      2. Use a name of an opponent to try and shift blame
      3. Deny
      4. Never engage the issue at hand

      So now look at the following

      “Fred, I always get a giggle when LIb supporters accuse Labor pollies of getting into ‘spin’!  Are we really supposed to forget the actions and rhetoric of the Howard government? “

      Perfect example. Does not discuss the ETS vis utility price rises. Evokes the ghost of Howard as some sort of boogie man. Blames not the previous government but the one BEFORE that, yes 2 terms ago now, of worse atrocities all unnamed of course.

      That kids is how you dog whistle, blame game and straw man.

      It really was quite good given the succinct nature of the post.

      The real good ones are like that though. They know the more the more they open their mouth when on a loser the worse it gets. The only mistake they make of course is when faced with unquestionable wrongdoing and blame they open their mouth in the first place.

      They should learn from Bob Carr the master. When you are on hiding to nothing shut up or just hang up.

      Nothing you say can possibly make it better.

    • notsurprised says:

      11:34am | 03/11/10

      Well summed up Mark, that is the ALP modus operandi to a T.

    • jeffb says:

      12:04pm | 03/11/10

      Oh please MarK, both sides are guilty of exactly the same thing on this website. Just take a look at the second post on this page, where does “Grocery choice”, “Fuelwatch”, “More affordable housing”, “Cheaper Better Childcare”, etc fit into a debate on carbon trading? Check out the replies to Amanda’s article yesterday, what percentage of replies actually talked about water reform?

      If you want to see a real dog whistle check out Bernadi’s comments regarding sharia finance.

    • Dash says:

      12:37pm | 03/11/10

      Jeffb, it fits in because Gillard promised us “there will be no carbon tax” just as the ALP promised us “Grocery choice”, “Fuelwatch”, “More affordable housing”, “Cheaper Better Childcare”, etc and didn’t deliver on those either.

      It fits in because this piece is about rising living costs not just about the carbon tax. All those things promised by the ALP in ‘07 were meant to make a difference to the cost of living. But none of them were delivered and turned out to be nothing more than lies for political gain. The ALP lied about no carbon tax for political gain also and is set on driving up living costs with this policy. There is a very clear nexus if you ask me.

      My post clearly says: “Why did the ALP promise to improve cost of living expenses and then pursue policies which had the opposite effect? ” There’s your fit. Sorry if it’s confusing.

    • Daryl says:

      12:50pm | 03/11/10

      Jeffb, have you seen question time recently? Gillard’s responses never fit into the debate? She never answers the question. One minster asked her a yes/no question on the price impact of a carbon tax. She rattled on for 3 minutes about nothing and said neither yes or no. It resulted in a move that the PM be no longer heard. So much for the new paradigm eh. I guess the Punch is following her lead.

    • acotrel says:

      06:39am | 03/11/10

      And we’re really supposed to believe that Kevin Andrews has concern for our welfare?  This is the guy who gave us Workchoices!

      Reply

    • Jeff says:

      07:05am | 03/11/10

      Read Howard’s book - Andrews opposed much of workchoices! But that doesn’t undermine his argument. Prices and taxes are increasing, and ordinary people will pay!

    • Dash says:

      08:04am | 03/11/10

      Oh, that old chestnut acotrel. ALP script: “if you’re out of ideas, have nothing meaningful to say and find yourself backed into a corner on policy, bring up Workchoices”!

      It’s not Kevin Andrews you need to be worried about acotrel. Ask yourself if Gillard and Labor are concerned for our welfare?? It would appear not. Seven interest rate rises in 12months. Inflation up. Carbon tax on it’s way. Groceries up, fuel up, housing costs up, electricity up, utilities up. And Swan has not a clue in the world. The only thing that’s down is the ALP’s pants.

    • Damocles says:

      08:53am | 03/11/10

      Workchoices…....Smirkchoices…..........give it a bloody rest! Nothing like a rusted on Labor pawn to keep harping on and on and on and on about what the Libs did in the past! Energy costs WILL go up, quicker and more substantially under the Labor/ Green/ Independents government new carbon tax…........FACT!

    • MarK says:

      09:02am | 03/11/10

      Bruhahahahahaha.

      We are talking ETS and you bring up WorkChoices.

      LAWL

      Oh look over ther…its a puppy…what a nice puppy.

      I see the correlation yes I do. Because of WorkChoices AGW is proved so we need to tax the hell out of everything. That will stop WorkChoices..errr AGW err look a puppy!!!!

    • Mike T says:

      12:00pm | 03/11/10

      I am far from an expert on work choices but i often hear statements on the punch from ALP sources around the evils of work choices. So i think its about time i actually ask for a few facts on this one regarding the evils of work choices. Acotrel, can you show me some facts that backs up the claims of evil work choices?? by this i dont mean anything that starts with the phrase “my cousins boss told my him….” i mean actual figures showing a spike in things such as unfair dissmissal, pay rates drops, worker dissatisfaction etc. As an average Aussie, work choices had no impact on any person i know (i do concede that this is not proof that it was a good thing), but at this stage it certainly allows me to form an opinion of “whats all the fuss about”

      I pose these questions, not from a point of view of thinking that work choices was the way to go. As i said i im not sure one way of another. But it just strikes me as funny that many people talk about the evils of work choices and simply leave it at that of sprout a slogan….. well, can someone on here actually produce some good evidence on its evils so that i can form an oppinion.

      If you cant produce the evidence please dont reply to my post, i am getting a migraine from those that graduated from the school of spin…

    • Yet another Dave says:

      12:05pm | 03/11/10

      Coan we make the mention of ‘Howard’ or ‘Workchoices’ the ‘Godwin’s Law’ of the ‘new paradigm’?

    • jeffb says:

      12:08pm | 03/11/10

      “Seven interest rate rises in 12months.”

      If you really need me to explain why I’ve quoted this you’re beyond help.

    • MarK says:

      12:44pm | 03/11/10

      *

            Yet another Dave says:

            12:05pm | 03/11/10

            Coan we make the mention of ‘Howard’ or ‘Workchoices’ the ‘Godwin’s Law’ of the ‘new paradigm’?

      I fully endorse this post.

      Excellent idea.

    • Colin J Ely says:

      07:17am | 03/11/10

      So Pers
      Where is the money coming from to compensate my goodself and the rest of us ‘Howard’s Battlers’ against the financial strain of an ETS/Carbon Tax? Surely you are not going to forgo one of your weekly lattes to finance it?

      Reply

    • acotrel says:

      08:50am | 03/11/10

      At the second last election before Howard got the flick, my son-in- law believed his hype about interest rates and voted Lib.  These days he never mentions who he’s voting for, he’s mortgaged to the hilt, on a very low wage.  And Howard certainly didn’t deliver on his promise to keep interest rates low! -  Live & learn?

    • Dash says:

      10:28am | 03/11/10

      actotrel, there has been seven interest rate rises over the last 12 months! And under Keating rates were at 17.5%. What are you smoking? Did your son-in-law believe the ALPs promise to deliver “More affordable housing”? Any idea when that’s likely to be delivered acotrel. Any time soon??? Or has that gone the same way as “cheaper better childcre”, “Grocery choices” ” fuel watch”, “260 childcare facilities” and “No carbon tax”?

      Live and learn indeed!

    • TimB says:

      12:29pm | 03/11/10

      Second last election before Howard got the flick….

      Lets see Howard lost in 2007. Election before that was 2004. Which would make the second last one in…2001.


      Really? 2001? That’s where you’re going back to? More importantly what do interest rates have to do with the Carbon Tax?

    • Bill says:

      08:15am | 03/11/10

      Think energy costs a lot now? Wait until you have to have run your air conditioner on full in the middle of winter. Think food costs a lot now? Wait until all the farmland turns to desert. Think water costs a lot now? Wait until the dams dry up after a 30 year drought.

      Seriously, this article is typical of the pathetic short term selfish mentality, and the political appeal to that mentality, too prevalent among business and politicians. So you could save some money in the short term by ignoring climate change, but at what cost over the long term? Whatever happens, you can be absolutely guaranteed the costs of dealing with the consequences of doing nothing, will be far more than the savings of doing nothing.

      Reply

    • Giles says:

      02:58pm | 03/11/10

      Highly doubtful. I am dismayed that someone can actually believe what you state above. That will never happen.  More carbon dioxide in the atmosphere will encourage more plant life, more productive crops, more precipitation (rain), cheaper electricity, the industrialisation of the thrid world and the eventual lowering of fertility rates. We actually could reduce poverty and end wars if everyone had access to cheap reliable electricity, productive mechanised agriculture and a decent standard of living. Your proposed carbon trading tax is the evil, let’s not get that confused here.

      It is rather hypocrytic of you to speak of drought to support your cause since NSW has just come 100% out of a drought! You can’t expect the climate to be predictable every year and naturally cycles of drought, flooding, hotter and colder seasons will occur over longer periods. The earth’s atmosphere is highly complex and chaotic. Most importantly there is NO SCIENTIFIC PROOF of anthropogenic carbon induced climate change. Try to use your critical reasoning skills to see through the agenda pushed by people such as Al gore, majority stock holder in the world climate exchange and other vested interests such as the IPCC.

    • Dave Sag says:

      08:18am | 03/11/10

      All a ‘typical’ family needs to do to reduce its energy bills is turn off their plasma TV and unplug the subwoofer.  A few years back we (we = Carbon Planet in this case) did a simple energy audit of a journalist’s house and found that nearly 19% of her home energy bill was attributable to her sub-woofer – in standby mode.  So if you think energy is costing too much then use less of it.  Seems pretty obvious to me.

      Plasma screens use so much energy that they have been banned in the EU and should be banned here too. LCD TVs use vastly less power and LED TVs use much less again.  And for most TV viewing the use of a subwoofer to boost the bass is just stupid.

      If our homes were properly insulated, our windows properly sealed and double-glazed, and more of us used the occasional door-snake to nix the drafts we’d use a heap less energy and save more and more money as the price of energy creeps up, with or without a carbon price.

      Reply

    • the magpie says:

      10:43am | 03/11/10

      Top post! I’m glad I waded through the previous political drivel to get to a sensible opinion.

      Reduce consumption people, you wont miss it half a much as you think.

    • Dino says:

      08:18am | 03/11/10

      I have little doubt that energy costs are going to risebut please don’t think that all you can do is pay the bigger bills and tighten your belt. There are lots of things that people can do to buffer themselves against rising energy costs and they start at home. Simple things like turning of appliances at the wall and only turning them on when you need them can make a big difference. I walked to my brothers house the other day and he had nearly every light on, two televisions going and he was paying his electricity bill on the internet. Yes, he complained about the high cost but No, he wasn’t doing anything to reduce his consumption. If anyone is worried about their bills, please think about what you can change to reduce your energy use.

      Reply

    • Sandy says:

      08:32am | 03/11/10

      As the coalition are claiming: Labour doesn’t reform, they just spend.  So the structure causing these increases is attributable to the coalition.

      They are both just two factions of the same political movement.

      Australians are high carbon emitters BECAUSE of our governments, not IN SPITE of them. Government always putting themselves first and taking the path of least resistance.

      But they want US to change our habits but they won’t change THEIRS.

      It’s rather difficult for us to fix their mess when we have their massive tax burden dragging us back.

      Reply

    • MarK says:

      11:14am | 03/11/10

      “As the coalition are claiming: Labour doesn’t reform, they just spend.  So the structure causing these increases is attributable to the coalition.”

      I really tried to understand this.

      I got to do it, I need closure.

      Please explain?

    • The Badger says:

      11:52am | 03/11/10

      For what it’s worth mark my take on what sandy is saying is:

      The coalition neglected infrastructure (for whatever reason )

      labor needed to address the lack of infrastructure.

      You can spin that any way you want if it gets you some closure.

    • MarK says:

      01:49pm | 03/11/10

      I think you are right Badger actually.

      I now have closure. I was struggling with the leap that Labor doesn’t do anything hence you blame the liberals logic. I do see it now.

      Thank you.

    • The Badger says:

      02:17pm | 03/11/10

      No worries mark glad I could help.
      nothing like a lack of closure to ruin your day.

    • Sandy says:

      04:24pm | 03/11/10

      MarK.  I was turning their curios logic back on themselves.  Which is why it doesn’t make sense.

      Tony Abbot 28Oct2010 “Installing insulation badly, building overpriced school halls, paying more than they are worth for old cars, announcing infrastructure projects that will never happen or a cable rollout that Australians don’t all necessarily need and won’t all voluntarily buy is counterfeit reform.”

      It’s all talk.  Both parties just tax and spend.  I pay at least 40% tax (30% income tax (averaged) and then 10% when I go to use those $).  Tweaking tax rates and brackets so I pay 35% isn’t reform.

      It’s all about squeezing the middle.

    • Tom Jones says:

      08:53am | 03/11/10

      I’m sick to death,  people, Govt, energy companies telling us to reduce our consumption to compensate for the rise in power prices. Hang on a sec. Its a bit like telling us to eat less to combat the rise of food. Wipe your butt less to combat the rising price of toilet paper… ETC   Its just ridiculous. I for 1 dont waste power, but the bills still go up. So now I need to live in the dark, just to afford to run my fridge? Wake up people. Never let Govt tell U to do something,  while they have there other hand in your pocket. Thats the exact situation whats going on now. We are NOT to blame for rising energy prices.

      Reply

    • acotrel says:

      08:56am | 03/11/10

      Kevin Andrews was the minister in the Howard government who tried to insist that every workplace contract pass over his desk - AS IF?  I worked ‘on contract’ for a number of years.  My contract with my employer was always confidential between the two of us.  Andrews had his head up his backside!

      Reply

    • Aitch B says:

      09:46am | 03/11/10

      @acotrel

      Wow!! Very incisive comment on the rising cost of energy and the possible effects an ETS will have on it.

      Bet you thought long and hard on that one….....

    • acotrel says:

      10:28am | 03/11/10

      AitchB, Andrews is just another silly ideologue!  He doesn’t really care about the carbon tax.  All he’s interested in, is getting political mileage out of it for the non-visionary Liberal Party ! How anyone can look at the se guys, and think hey’re lovely, is beyond me! It must take a very strange and flexible mentality?

    • acotrel says:

      10:28am | 03/11/10

      AitchB, Andrews is just another silly ideologue!  He doesn’t really care about the carbon tax.  All he’s interested in, is getting political mileage out of it for the non-visionary Liberal Party ! How anyone can look at the se guys, and think hey’re lovely, is beyond me! It must take a very strange and flexible mentality?

    • Vin says:

      09:04am | 03/11/10

      Australian families are paying the well deserved price of voting Labor.

      Reply

    • Vin says:

      09:04am | 03/11/10

      Australian families are paying the well deserved price of voting Labor.

      Reply

    • acotrel says:

      11:12am | 03/11/10

      What did you say, Vin?  Was that scripted by Mr B.A.Santamaria?

    • Connie says:

      02:11pm | 03/11/10

      Vin said that the ALP is destroying families, that is very true, hope you can understand that acotrel.

    • The Badger says:

      09:24am | 03/11/10

      So Kevin
      Energy prices are going to go up?
      and this is all the fault of the big bad ALP?

      Did I hear you say that energy prices will always be lower under a conservative government?

      I’m so glad that you are a shadow minister and not the real thing.
      Perhaps you should stick to writing about bicycles?

      Reply

    • MarK says:

      09:44am | 03/11/10

      Since Kevin has been scolded for the temerity to actually be at home on an unspecified day by pers I will take the bold step of answering for him as undoubtedly he will be hard at work

      “Energy prices are going to go up?”

      Yes

      “and this is all the fault of the big bad ALP?”

      Not all no. Majority yes. Under a carbon tax it will be worse. Also when you propose to close 1/4 of the largest coal fired power station in a state like Victoria for example and you still need to produce the same amount of power and it is to be sourced from more costly generation sources then yes, prices will rise.

      “Did I hear you say that energy prices will always be lower under a conservative government?”

      Yes. Because they oppose a carbon tax. Now if only they would go nuclear we would be smiling real hard!!

      “I’m so glad that you are a shadow minister and not the real thing.”

      That is nice. Perhaps I should have been in charge of the Batt scheme. Might have saved saved the odd billion and a few lives.

      “Perhaps you should stick to writing about bicycles?”

      It is one of my passions. But writing about cost of living increases when policy forces them to skyrocket is fun to

      Thanls for your soncern. Please feel free to write to me for further information on this topic.

      Also isn’t it good BoltA advised us in the Liberal party about that disgraceful man Laker. We chopped his preselection off real quick.

    • Dash says:

      10:21am | 03/11/10

      A real minister Badger? What like Peter Garrett? He he he he.

      Or perhaps like Foreign Minister Ruddentrop?

    • TimB says:

      12:31pm | 03/11/10

      At the very least (here) its the fault of the NSW ALP.

    • Richard The Lionheart says:

      10:03am | 03/11/10

      Vote Labor and you will be labouring for life. Vote Green for envy. Vote Liberal for liberalising your pay packet and vote Independant for nothing. Good luck Victorians! Oh and saving power bills? Open the window and read a book from the library preferably with a tea candle.

      Reply

    • Gregg says:

      10:21am | 03/11/10

      Kevin, hopefully you are smart enough to know that though there will always be flow on effects of political decisions and though you may not be open enough to realise that clangers do occur from both sides, perhaps you can acknowledge there is a much bigger elephant in the room with a far more reaching global impact that some politicians sometimes allude to but never really seem prepared to express if there is a pallatable answer.

      I recall a younger but just as beefier Joe Hockey about ten years back with the then house speaker at a community get to know politics kind of meeting on the Gold Coast, it being a time when riverina farmers were ploughing oranges in to the ground and finally bulldozing orchads, shipped cheap Brazillian concentrate a prime culprit, WTO level playing field and all that!.
      I personally asked the speaker ” What is it that you use to assess the benefit of WTO policy outcomes? “
      What would you guess the answer to be Kevin?
      Perhaps you can ask Joe if he remembers but it was a very simple:
      ” well your food is cheaper isn’t it? “!!!!!!!
      Go into a supermarket and check the label on a bunch of supposedly Fresh Food People asparagus and do not be surprised if it has come from Peru or the next bunch of Bananas not from our own banana republic but from the Philippines.
      We put restrictions on our own fisherman and import farmed seafood from asia including prawns from only God knows what quality of water.
      Foreign Correspondent just last week showed villagers in a Chinese rural village having had cancer deaths rise dramatically and that just co-incided with having a hospital waste incinerator nearby, local green growth having a nice film of a sticky black coating.
      Hopefully, any food from China is healthy!

      But back to costs and I also remember Peter Costello a half dozen or so years back being asked about how Telstra had just offshored 500 jobs to India and it was usual Costello ” they can’t do that they can they?, I’ll have to have a look at that!!! “
      It would be cheaper wouldn’t it, for the time being at least!
      In Obama announcing his shovel ready program to combat the US led financial crisis he alluded to any steel for major construction projects would have to be US steel instead of coming from China!
      Against WTO free trade?

      So are you getting an idea yet Kevin on what the real elephant may be?
      Is it past time for developed nations to consider whether free trade is going to do anything else but eventually bring the haves and have nots of the planet closer together while at the same time we will likely have those managing services arranging fatter and fatter salary packages for themselves.
      Just last week it was announced how in Queensland, there were a half dozen different water boffins all on somewhere over $400,000 a year and have a look at how our old town clerks now being glorified CEOs are on similar salary packages.
      I am not promoting communism but it is beyond a joke, the types of decisions that all politicians often promote or do absolutely nothing to contain what will befall the nation.
      Sure, wasteful knee jerk reactions on GFC programs, NBN included and resources/carbon taxes are one thing and Australians can consider we may no more be such the lucky country but with all our services costs/COL increases it is also as much other Chickens coming home to roost and their wings have been clipped so there’ll be no soaring with eagles but clucking with Turkeys.

      Fortunately I am on tank water and even with house and dam water pumping systems can still keep electricity useage below average.
      Rather than flat rates for electricity, prhaps as there is or has been with water in some regions, there should be a tiered structure for charging on electricity use.
      That way, all those heavier users will help more to pay for the new power stations we will need a plenty of in coming decades.

      So what is the opposition policy on all our current ills Kevin?

      Reply

    • Sadiq Farris says:

      11:30am | 03/11/10

      Your comment:
      Just wait until the Liberals and the Nationals get control of Australia and New South Wales! They will wipe out Australians worse than Tsunami and earthquakes ever could .

      Reply

    • Mike T says:

      12:09pm | 03/11/10

      Really??? was only 3 years ago that they had control of the counrty. Things seemed to be pretty good back then of does you memory only flow back to the time of kevin 07…

      Obviuosly your post highlights that you believe that the ALP is doing a good job in NSW as you point out that any switch to an alternate govt will wipe out our good state. Cna you pleas give us an overview of how you assess thier performace and what you think they are doing well Sadiq???

    • TimB says:

      12:34pm | 03/11/10

      I like the part where he implies that a Coalition government would result in a massive loss of life comparable with natural disasters.

      I’m curious to know how they’ll manage that one. Maybe we’ll have death camps.

    • MarK says:

      12:46pm | 03/11/10

      Shhh TimB

      Don’t let the secret about the rights genocidal plan leak out too quick.

      Remember knock once, pause, three quick knocks and quack like a duck so I know it you. As agreed we kill the Irish first….damn Irish.

    • acotrel says:

      01:12pm | 03/11/10

      ‘Really??? was only 3 years ago that they had control of the counrty. Things seemed to be pretty good back then of does you memory only flow back to the time of kevin 07… ‘

      You mean when we had the last big resources boom and virtually nothing was spent on infrastrructure?

    • Mike T says:

      01:38pm | 03/11/10

      @ Acotrel…

      All the good things = becasue of the resources boom
      All the bad things = becasue of the Howard

      okay, i got it, can i have an ALP card now that my lesson is over

      Reply

    • Al says:

      03:07pm | 03/11/10

      Jesus, political diatribe dressed up as some kind of opinion piece. This is just a cheap shot at Labor. Save that for parliament - this is a forum for constructive opinions not political point scoring. Both parties are as bad as each other and it is the complete lack of foresight by both parties over the years that has caused the hike in electricity prices and the disaster of the Murray Darling Basin. Come back with a solution Kevin not another whinge about your opponents.

      Reply

    • Cutty Wren says:

      03:10pm | 03/11/10

      A great deal of the increase in energy costs has to do with successive Labor state governments ripping dividends out of the lucrative power companies rather than investing in ongoing maintenance and infrastructure spending. Now those chickens are coming home to roost as much spending is now needed. Add these costs to the carbon tax (which will do nothing for the environment) and you have a recipe for soaring prices.

      Reply

    • acotrel says:

      03:04am | 04/11/10

      ’ Add these costs to the carbon tax (which will do nothing for the environment) and you have a recipe for soaring prices. ‘

      ‘Do nothing for the environment’ - AGAIN with the wishful thinking?

    • Robert Stewart says:

      04:40am | 04/11/10

      Just what difference will the carbon tax make to Australia while the relentless destruction of the tropical forests that absorb the carbon continues and the huge industrials of China and India create it?
      Have we so easily forgotten that before 114 Ruddites to Copenhagen, Labor announced that . $455 for singles, $685 for pensioner couples and payments to 1.3 million families for the increased costs of everything “would come from forcing industry to pay for their emissions”
      Poor Penny Wong was so disappointed that Governments did not like the idea of other Governments stomping around on their turf to make sure they were complying with an arrogant and cocky assumption that a consensus for the world was a forgone conclusion.

      Seems to me that all the fog and bluster for the tax will run out of steam as the cyclic climate change kicks in with the cold. The electric energy to the grid from steam driven power generators cannot be supplied by anything other than heat for the steam.OK to try all the bits and pieces of alternatives but ultimately I believe it will be nuclear and so might Gen. Cosgrove

      If the carbon tax was specifically to fund ongoing nuclear alternative to fossil fuels it may have a chance, and why not? Russia is to build 12 new type nuclear plants in India while we dig ever deeper holes to mine the uranium for others to benefit instead of processing the ores to fuel grade. 

      To do so requires a huge amount of energy 24/7. Just not possible with the wind and solar alternatives if coal is to remain in the ground until a better,cleaner use is found for it..

      Reply

    • Dallas Beaufort says:

      05:42pm | 04/11/10

      Kevin, I know the federal government may have no control over green labor states when affordable housing is the main cost concern. Most of the posts here go on about utility prices and blame the the liberals for basically, not having more money to spend, but it is labor and their green mates and their regulations which inflate all prices over all products and services, the biggest being housing cost inflation, which no one wants to really talk about and if they do it is to blame the banks. What about the supply side of housing where people on private property want to build affordable housing but the labor state and local council won’t let them. Where is competition in the housing market to stimulate choice on price. No I am not a labor mate who gives donations to political parties to gain approval. It seems those who own a home don’t want any others building more homes in their backyard as it may be a newer model than theirs. But it is not their backyard but others who do want to supply housing which will make a difference and also deliver what people really want.

      Reply
 
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