Why can't Rudd do a carbon tax?

With the Federal election likely to be called this year, probably in August, the Rudd Labor government is now in campaign mode.  Consequently, its policies and focus are directed toward positioning themselves for winning the election and not much else.

The campaign strategy discussions may have unfolded something like this:

What will be our core platform for the election?

• Let's do health, education, economic responsibility and the national broadband network
• We will lob a new health funding model on the States and bully them into submission  so we appear tough and forceful
• We can trade off avoiding the Global Financial Crisis claiming we saved Australia from financial ruin

What will be our main issues to defend for the election?

• We completely flubbed it on climate change when Copenhagen turned to custard, and we had no plan B - so lets keep blaming the Greens for not supporting the industry-friendly CPRS - and the Liberals for sidestepping our skillfully crafted wedge when Turnbull went under and Abbot took over

• We aren't doing too well on environment either, with native forests still being destroyed, the Great Barrier Reef dying, the Orange Bellied Parrot and a few other species rapidly heading towards extinction - so lets get Peter Garrett out there handing out money for a few good causes in the States. 

• The housing insulation scheme killed for people and turned it a fatal farce.  Can't remember why we gave this to the Environment Minister Garrett when he and his department know nothing about building matters or managing large scale projects. So let's take it off him and give him a bit more money to throw around.  And send him to the back bench after the next election.

• Clear the decks.  We have a few backflips to get out of the way.

• Backflip 1  (Kevin Rudd) - the need for urgent action on climate change "the great moral challenge of our time" - the CPRS (emissions trading) now on hold until 2013

• Backflip 2 (Kate Ellis)- ditch the building of 260 new childcare facilities

• Backflip 2 (Wayne Swan and Kevin Rudd) - avoid scrutiny of Government advertising by the Auditor General by announcing a $38 million, taxpayer funded political advertising campaign., despite it being “a cancer on our democracy” and a clear commitment from Rudd that this would not happen., 

Then some polls were released indicating that Kevin Rudd had burnt most of his political capital in a very short space of time and his support plummeted, with opposition leader Tony Abbott seemingly now capable of winning the next election.

Let's run a scare campaign on Abbott - like Howard did on L Plates Latham.  Let's even compare Abbott to Latham.  Brief to all ministers - keep saying "Tony Abbott would win an election if one were held tomorrow".

Now we need to get back onto our core platform.  

We have an exposure on the economy - we are now seriously in debt with a large deficit.  Lets cherry pick from the Henry Tax Review something that will help us back on track to a budget surplus.  Let's go with the Resource Super Profits Tax - will lob it out there and have some biffo with the mining companies.  This will give Kevin Rudd another opportunity to demonstrate his strong leadership style, and will offset some of the fallout from gifting $8 billion via the failed CPRS to large corporations making millions out of fossil fuels.

Well, that worked, sort of.  We got the media off climate change and even backflips, but those mining companies sure have gone troppo.  Now a bit of a stoush and ritual combat is turning into another problem for us - no consultation with stakeholders (like health reform), and back benchers in marginal seats with mines getting restless.  Let's hang tough for another couple of weeks then reduce the RSPT rate a bit to shut them up.

*** End of script as at 15 June 2010 ***

This reads a bit like a script from the Hollowmen.  But then truth is stranger than fiction.

Here are a few things that should have happened:

• Negotiate with Greens and two Coalition Senators in the Senate to get a carbon tax in place - this would apply across all industries, not just mining, and the funds can be directed towards transitioning to a low carbon economy
• Remove perverse taxes that encourage fossil fuel use - such as car leases that require minimum kilometres to be driven, the diesel fuel rebate, and sundry others
• Allow tax deductions and/or salary packing for people who cycle to work
• Ditch the $2billion+ corporate welfare funding for "Clean Coal" /geo-sequestration pipe dreams that defy the basic laws of physics and direct this towards a 100% clean energy program based on concentrated solar with salt storage and wind power.
• Commence a very fast train project to link Adelaide, Melbourne, Canberra, Sydney and Brisbane.
• Introduce national building standards for 6 Star Rated buildings and retrofit of existing building stock (and keep Peter Garrett away from it)
• Protect native forests from logging to keep the carbon they store where it is, secure our water supplies and provide habitat for endangered species.

I am not holding my breath for any of this.  But I am astounded by the failings of our political system and our major party politicians to deliver sensible policies.

They are intent of just playing politics, striving to get into government, then just pfaffing around when they get there.

*** Script update at 15 June 2010 ***

Prime Minister Kevin Rudd appeared on the 7:30 Report on Monday night.  He appeared to be in damage control mode forcing some smiles, rapidly blinking and appeared uneasy.  When questioned about the Resource Super Profits Tax, the mining industry campaign against it and the date of the next election he mentioned that the election could be delayed until March/April 2011.  

"Yeah, well we have an election due by whatever it is, March or April next year and we only have three year terms. You've got to use the time effectively. "

So it seems that the nascent election campaign in progress may be drastically rescheduled.  Then again he may go early to avoid Tony Abbott gaining more support.  

I wish he would just bring a carbon tax and get on with it.

External links

• FACTBOX-Key political risks to watch in Australia
• The end of the world as we know it
• Kevin Rudd to backflip on mining tax rate
• Labor breaks childcare centre promise