Isra-Mart srl:Bob Carter on Labor’s futile and economically damaging tax on carbon emissions

www.isra-mart.com

Isra-Mart srl news:

The pre-Christmas announcement by the Gillard Government’s Multi-Party Climate Change Committee of 11 key principles that it will apply in deciding the details of the planned new carbon tax was a “pantomime performance”, according to Professor Bob Carter.

Prof. Carter described the planned tax as “futile” and says it will be “economically damaging”.

In an article at Quadrant Online, Prof. Carter lists the 11 principles announced by the committee and comments on each:

Environmental effectiveness. The reality is that cutting Australia’s carbon dioxide emissions, even altogether, will confer no measurable environmental benefit. Computer models suggest that a cut in emissions of, say, 20% by 2050 will (hypothetically) prevent warming by less than one-thousandth of a degree. By definition, then, a carbon dioxide tax is ineffective.

Economic efficiency. No economic need, let alone efficiency, is sensibly met by taxing an environmentally beneficial trace gas.

Budget neutrality. Whose budget? The imposition of a tax of, say, $30/tonne will impose on every Australian household increased costs estimated at more than $2,000 per year.

Competitiveness of Australian industries. The introduction of a carbon dioxide tax is intended to, and will, significantly increase the cost of energy generation. Obviously, the resultant increase in business costs will reduce the competitiveness of Australian industry against overseas counterparts in countries (most) that have no similar tax.

Energy security. In fact, energy security is sharply compromised by the very policies that the committee is espousing. Which are to continue to discriminate against coal, uranium and hydropower as energy sources, thereby taking out of play three of the only four currently practical sources of baseload power generation. Restricting the nation’s options in this way leaves only gas and oil for baseload generation, reduces energy security dramatically and is irresponsible.

Investment certainty. Industry frequently calls for policy certainty regarding future investment in power generation. Terry McCrann was amongst the first to point out that such certainty would be most easily and cost-effectively assured by declaring a carbon dioxide tax of $0/tonne.

Fairness for households. The committee must surely be kidding. Any form of carbon dioxide taxation will inescapably cause increased costs for households, especially those of poorer socio-economic status. Mark well, the most disadvantaged Australians are going to pay, and that quite irrespective of any subsidy measures that the government may trumpet.

Flexibility to changing international circumstances. International circumstances have indeed changed recently, and the failure of nations to reach a global climate agreement at either the Copenhagen or Cancun conferences has been greeted in Australia with zero flexibility. Our policymakers and climate alarm lobbyists, now led by an unoriginal Mr Combet, have simply reiterated their earlier, failed policies of taxing carbon dioxide. The most important circumstance to be aware of now, of course, is that once such a tax is introduced it will be almost impossible to remove – despite its being unnecessary, inefficient and ultimately futile.

Administrative simplicity. Dream on. Remember, a Canberra-based committee is designing this unnecessary new tax.

Accountability. Of whom, and for what? If blame is to be sheeted home for the faulty scientific advice that has led to the current global warming policy fiasco, then CSIRO, BOM, the Department of Climate Change and major university climate research groups would be good places to start to look for culprits.

Support for Australia’s international objectives. Australian objectives presumably should not include economic and political stupidity in the face of the collapsed talkfests at Copenhagen and Cancun. The idea that overseas nations will discriminate against Australia unless we implement anti-carbon dioxide measures is well worn out, and has anyway always been a juvenile argument. Nations take hard decisions in accordance with their sovereign economic interests, irrespective of Green lobby group dreaming.

“The irony is that the eleven principles adopted by the MCCC, to the degree that they are not mere persiflage, add up to a strong argument for NOT introducing a levy on carbon dioxide emissions, i.e., the principles indicate a course of action precisely the opposite of what the government currently intends,” Prof. Carter writes.