Isra-Mart srl : Trading fallacies for facts in debate

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The Gillard Government has not covered itself in glory in its efforts to sell its carbon tax proposal to the electorate. Notwithstanding the difficulty of selling such a proposal, it has allowed the debate to be dominated by the shrill denunciations of the Opposition and by dire warnings that emissions-intensive industries will be decimated by the introduction of a carbon tax.

However, Prime Minister Julia Gillard has been handed three free kicks this week, beginning on Monday with the first report of the Climate Commission. This bluntly warned that global warming was occurring faster than expected, and that Australia ''no longer had the luxury any more of climate denialism''. While some might question the independence of such findings (the commission is a government-appointed body) they accord with those of most other respected climate scientists. On the same day, a spokesman for Beyond Zero Emissions, an independent advocacy group, said the Government needed to act quickly to put a price on emissions or face the possibility of having its exports penalised under a proposed European Union carbon tax.

But perhaps the most encouraging news for the Government's carbon tax cause came yesterday via an unexpected source: the Organisation for Economic Cooperation and Development. In its latest Economic Outlook, the OECD noted that the Australian economy was set to rebound after the disruptions caused by the major natural disasters of earlier this year, and that growth would accelerate from 3.1 per cent this year to 4.5 per cent in 2012, while the jobless rate continued to fall. It concluded, ''The authorities must take advantage of the favourable economic situation to pursue long-term structural reforms, including those that favour output involving less CO2 emissions.''

If not an outright endorsement of a carbon tax, the caveat underlines the economic importance of remedial action in the short term, a fact often overlooked by people employing political spin, pseudo science and naked self-interest to undermine or delay the necessity for reform. The European Union is showing admirable leadership in planning for a carbon-constrained world, and those measures will have an impact on all those nations which export goods and services to the continent. Indeed, this has already occurred. Qantas has announced it would have to raise fares to Europe from next January after being penalised by the EU for being headquartered in a country which does not have a price on carbon.

As one of the higher per-capita polluters in the world, Australia is uniquely exposed to the threat of economic sanctions or penalties imposed by the EU, reason enough for a certain level of urgency in the introduction of a meaningful carbon pricing scheme, and ample ammunition to use against the misguided opponents of an emissions trading scheme.

Woman tops list

If rich lists are largely an exercise in accounting hypotheticals, they are nonetheless widely reported and discussed, such is our fascination with wealth. This year's BRW rich list has provided a further talking point: Gina Rinehart is, for the first time, Australia's wealthiest individual. She might only be the second mining entrepreneur to hold that title, but she is the first woman. What's more, she is the first individual whose personal wealth has topped the $10 billion mark a reflection of the enormous wealth that has been generated in Australia and elsewhere by the global mineral commodities boom. Of the 10 people on the list, five are there by virtue of their very profitable involvement in the extraction of iron ore, coal and other minerals, including Andrew Forrest, Clive Palmer and Ivan Glasenberg.

Rich list regulars such as shopping mall mogul Frank Lowy, packaging heir Anthony Pratt and developer Harry Triguboff are again in this year's top 10. With the exception of Mr Lowy, all added to their fortunes over the year, but not in the super-charged manner of the resource moguls. James Packer, whose media mogul father Kerry was for years Australia's wealthiest man, and who has since branched out into gambling and entertainment, only made No8 on the list, after a relatively unproductive year.

The paper wealth of the resource moguls may prove transitory if the commodities boom stalls, but their ascendancy confirms the reality that Australia is riding on the back of a haul truck, and sitting handsomely.