Showing posts with label carbon tax. Show all posts
Showing posts with label carbon tax. Show all posts

Thursday, April 02, 2015

Some ideas for taxation

Some ideas for taxation and other revenue measures in Australia.

Save $10b per year scrapping fossil fuel subsidies - including $4b per year scrapping diesel fuel excise subsidy for big mining

Save $5b per year scrapping negative gearing subsidies for investors buying houses

We saved $5b per year when Abbott scrapped his Paid  Parental Leave Scheme

Save $31b per year scrapping subsidies for religions.

Tax the proceeds of houses sold for over $2m

Reintroduce a carbon tax. This will raise revenue and provide an incentive for high carbon polluters to reduce their emissions - as happened under the previous carbon tax. Since your government removed it, emissions are again rising. A carbon tax on big companies could generate $5b+ per year and be used to develop clean energy alternatives.

Increase resource taxes on mining so that the companies who extract and sell Australia's non-renewable mineral resources make a fair contribution to Australia.  This could generate $10b+ per year.

Simplify the taxation system for ordinary people.  The current system requires most people to become book keepers and hire accountants to do their tax returns every year.

Remove all direct and indirect government subsidies for the logging of native forests.



Wednesday, July 23, 2014

My email to the 39 Senators who voted for the Carbon Tax Repeal

You recently voted against Australia's carbon tax.

Please do not compromise Australia's RET.

The RET is a very important and effective mechanism for transitioning Australia towards zero emissions clean energy.

The RET has only contributed 8% to electricity price increases from 2007/08 to the present.

The Carbon Tax only contributed 16%.

Over this same period distributor costs and charges have contributed 70% to electricity price increases

Investment in renewable energy has risen $5 billion per year.
Renewable energy capacity has almost doubled from 2001 to 2012.
86% of Australians think that Australia needs more renewable energy.
71% of Australians support the RET
90% of Australians want more electricity from solar
80% of Australians want more electricity from wind.

Overall the RET comprises only 3% of the total price of electricity bills.

Please support meaningful action on climate change and transitioning Australia to a new economy with clean energy and associated local industries and jobs.

Total Electricty cost increase 2007/08 to present
Wholesale costs 55 5%
Distributor costs & charges 746 70.4%
Carbon Price 172 16.2%
RET 87 8.2%
$1060



You can send your own email to the 39 Senators here: http://www.savetheret.com/

Links

Monday, July 15, 2013

Kevin Rudd, please don't weaken Australia's policies for tackling climate change

Open letter to Kevin Rudd, Prime Minister of Australia
CC:  Mark Butler, Anthony Albanese, Penny Wong, Chris Bowen

Dear Prime Minister,

I support your government’s efforts to introduce a price on pollution and am working in my community for stronger action on climate change and a renewables-powered future.

I am concerned that your government might be about to weaken the carbon price package. The price on pollution is working, is lowering emissions, and along with other programs like the Renewable Energy Target is driving transformation of our power supply. If it ain’t broke why fix it?

If you do decide to change the scheme, please keep the following things in mind:
  1. We need to increase ambition on climate change and adopt a higher pollution reduction target than our current 5% target;
  2. Moving to a floating price early will have budgetary implications. I’d support cutting polluter handouts like the unnecessary billions going to brown coal generators or polluting diesel subsidies for miners. But cutting important programs like the Clean Energy Finance Corporation or the Biodiversity Fund would be inexcusable.
  3. We’re still missing really important planks of climate change policy. We need a legislated National Energy Efficiency scheme, we need longer term and higher renewable energy targets; we need to reduce and ultimately phase out coal and gas exports; we need to remove fossil fuel subsidies and we need a plan for climate change adaptation. We’ve only just begun the critical journey of decarbonising our economy.
  4. We need to protect Australia's remaining native forests for their natural values and to preserve the carbon they store.
I understand what’s at stake this Federal election and that there’s an important choice before Australians. That’s why I urge you to be the leader we need on climate change.

You are tasked as Members of Parliament with representing your local constituents and the Australian People.  I urge to to avoid doing deals with big business that will weaken Australia's policies on climate change and the reduction of carbon emissions.  The Carbon Price has proven to be effective.  Please do not weaken it.

External links

Monday, May 23, 2011

Why did Julia Gillard rule out a carbon tax last year?

During the "cut and thrust" of a close Australian federal election campaign in 2010, Julia Gillard, the Australian prime minister said something remarkable.

The election was characterised by the usual claims and counter claims about a variety of the "usual issues" such as health, education, the economy, taxation and budget deficits.  There was also contention about some tentative Government policies designed to help us move to a low-carbon future such as the poorly implemented and managed home insulation scheme, green loans and solar panel rebates.

Climate change was the elephant in the room.  The Labor government's previous attempt to push through an Emissions Trading Scheme (the CPRS) had failed for two main reasons:
  • The Liberals broke their bipartisan support for it when Tony Abbott rolled Malcolm Turnbull as opposition leader.  Abbott's basic position was a mixture of denial that climate is happening and obscure objections to the proposed market-based mechanism for limiting carbon pollution.
  • The Greens and other independents did not support the CPRS because they judged it was far to generous to the big polluters and would not have been effective in reducing carbon pollution.
Kevin Rudd, who was prime minister at the time, lost his nerve and didn't call a double dissolution election on this issue.  Instead he back-flipped and delayed the introduction of the CPRS, an action that he had strongly criticised the Liberals for during the 2007 Federal election campaign.  The so-called "gang of four" - Julia Gillard (Deputy PM), Wayne Swan (Treasurer) and Linsday Tanner (Finance) along with Kevin Rudd collectively agreed to go soft on climate change.

Julia Gillard then rolled Kevin Rudd and became the prime minister in the run up to the election.  She was supported by some strong factional players, including Paul Howes (secretary of the Australian Workers Union), who has subsequently stated that "climate change policy must not cost a single worker's job".

Back to the question.  Tony Abbot was running (and still is) an effective misinformation campaign about climate change and carbon pricing that Labor party campaign people felt was getting significant traction with voters.  He was claiming that the CPRS was a "great big new tax" and that Labor would bring in a carbon tax.

With the failure of the CPRS (ETS), a carbon tax was the only quick and effective means of pricing carbon pollution left.  It was worthy of immediate consideration.  However, Julia Gillard specifically ruled it out in the closing weeks of the election campaign by stating "there will be no carbon tax under the government I lead".  

I thought at the time that this was an ill-considered statement designed to take the wind out of Tony Abbott's sails.  In short, political considerations during the election campaign ruled out a viable policy option that had been suggested and endorsed by Professor Ross Garnaut, the government's own advisor on climate change policy.

Fast forward to 2011.  To form a minority government, Julia Gillard had to gain the support of the Greens and two out of the three lower house independents.  Part of the deal was formation of the Multi-Party Climate Change Committee.  The Liberals and Nationals, still stuck in a degree of climate change denial,  "spat the dummy" and refused to participate.  The others on the committee, a mix of Labor, Greens and independent MPs, resolved during 2011 that a carbon tax was indeed a valid and effective mechanism for pricing carbon.

Julia Gillard is now been constantly and relentlessly criticised by the Liberal National coalition for breaking her promise about never introducing a carbon tax.   Yes, she made a stupid promise.  However, a price on carbon is one essential measure for reducing carbon emissions.  But it is only one of many needed.  

It is also subject to the same corruptive influence that fatally compromised the CPRS - industry groups lobbying for special consideration, financial assistance and low carbon tax price - which of course means they just keep polluting.  The fact that many large industry players are opposing the carbon tax is a good thing.  We need to curb excessive profits reaped from carbon pollution and transition to a lower carbon economy.

The proposed carbon pricing mechanism is not even actually a tax.  It is set price on carbon that is likely to only apply to the top 100 listed companies in Australia, which could face an annual carbon cost of $3.3 billion if the government imposes a $25 per tonne price on carbon.

Low income households are already suffering from large increases in their energy bills without a carbon price.  Part of the proceeds of the carbon price will be directed to compensating them for their energy costs so they will end up better off when the carbon price is in place.

Along the journey to carbon price, presumably in response to some agitation by industry and some right-wing unions such as the AWU, Julia Gillard also decided to criticise the Greens at the Gough Whitlam oration in April 2011 with the following statements: 

"The Greens wrongly reject the moral imperative to a strong economy. The Greens have some worthy ideas and many of their supporters sincerely want a better politics in our country. 

"They have good intentions but fail to understand the centrepiece of our big picture - the people Labor strives to represent need work.

"And the Greens will never embrace Labor’s delight at sharing the values of everyday Australians, in our cities, suburbs, towns and bush, who day after day do the right thing, leading purposeful and dignified lives, driven by love of family and nation."

This is just more nasty, spiteful and divisive poll-driven politics. It demonstrates a basic failure of leadership by Julia Gillard and alienates a lot of people who voted for Labor either directly or via their preferences with the expectation they would deliver real action on climate change. 

The right wing media in Australia - most notable the Murdoch press including the Australian and the Herald Sun - jumped on these comments and have embarked on their own campaign to attack the Greens, Labor and any sort of price on carbon.  They are clearly in the thrall of large polluting industries who don't want to change, and are aligned with and supporting the Tony Abbott-lead conservative opposition in this regards.  This is not news - it is ill-informed opinion, and a public relations smear campaign.

A carbon price in excess of $50 per tonne is required to shift investment decisions towards renewable energy rather than natural gas.  A lower carbon price will result in a massive investment shift from coal-fired power to gas-fired power.  Unfortunately, while gas is more efficient than coal as an energy source, it will still produce huge quantities of carbon emissions.  I predict that the Gillard Government will announce a carbon price of $15 per tonne, which would be an abject failure.

So in summary, the broad policy measures we need to tackle climate change include:
  • A carbon price on pollution in the range of $50 to $100 per tonne. 
  • 7 star national building energy ratings.  Our current state standards are lame and a dog's breakfast.
  • Mandatory energy efficiency standards for appliances in line with european standards
  • A national feed-in tariff  to boost investment in large scale 100% renewable energy such as wind and concentrated solar
  • Standard distributed local solar energy production plants of remote communities - possible based on the CSIRO parabolic solar dish system
  • Major investment in low-carbon public transport systems in both city and rural areas.  This should be mostly rail systems powered by electricity
  • Local low-carbon water storage and conservation measures such as rainwater tanks and urban storm water collection to avoid the construction and use of massive energy guzzling desalination plants.
  • Protect Australia's remaining old growth forests to keep the carbon they store safe, and allow logged forests to regrow and sequester more carbon.  Shift all timber production to plantations.
Unfortunately, or political system and leaders seem to be mired is a sideshow prize fight about only one issue - a price on carbon.  

Gillard is bad, but Abbott is worse.  His plan to hand about billions of our money (yours and mine) to large corporates without any tangible or effective carbon emissions resulting is a complete sham.

Both Gillard and Abbott really need to lift their game.

Links

Tuesday, June 29, 2010

Wong plays more politics with climate change - all talk and no action

The Labor party is back in election mode and restarting their campaign after the campaign started by Kevin Rudd turned to custard.  Having deposed Rudd as Prime Minister and shut him out of the new Cabinet, Julia Gillard has rewarded those loyal to her by keeping them in their ministries - despite quite obvious failures for a few of them to deliver.

Penny Wong for example failed to deliver an emissions trading scheme.  The accountability for the failed CPRS was hers, not Kevin Rudd's.  Instead of architecting an ETS based on science and evidence based reduction targets, Wong set about "negotiating" with the fossil fuel industries and running a political wedge within the Coalition ranks.  At no time in this process did she (or anybody else from Labor) negotiate with the Greens, who publicly committed to a science-based emission reduction target of 40% by 2020.

Wong "browned down" Labor's CPRS by gifting billions of free carbon emission permits to polluters and even doling out free cash payments to coal-fired power stations out of the public purse.  Then she negotiated with the Coalition and further "browned it down" so that if implemented, Australia would have achieved no emission reductions by 2020 and bought dodgy "offsets" from overseas.

Then the skillfully crafted wedge against the Liberals failed - Turnbull was ousted, and the new opposition leader sidestepped the trap set and opposed the CPRS - as it turns out for the wrong reasons, but for the right outcome.

Penny Wong had no "plan B" despite an offer from the Greens to negotiate on an interim carbon tax as described the Government's own advisor on climate change and economics - Professor Ross Garnaut.  Kevin Rudd then took the rap for the CPRS failure and said he would do nothing until 2013.  This was the beginning of the end of his time as Prime Minister of Australia, even though it was Penny Wong's failure.

I waited keenly for Julia Gillard, as the new Prime Minister, to say what she was going to do on climate change.  She acknowledged that action is required and that climate change is serious, but said that "we need to reach consensus on a price on carbon within the Australian community".  This is code for doing nothing.  

There will be no consensus when the fossil fuel industries spends hundreds of millions of dollars on propaganda and funding climate denialist groups, as we saw happening in the lead up to and during the recent failed Copenhagen Accord.  So Gillard stands for yet more talk and no real action.

Has Penny Wong learnt from her recent dismal failure with the CPRS?  Apparently not.  She is attending a 
Climate Adaptation Futures Conference at the Gold Coast along with over 100 climate scientists from around the world.  They are talking about how to adapt to climate change, not whether it is happening or not - which is now regarded as a given by climate scientists.  Unfortunately, this is cure rather prevention.  

Penny Wong told the Conference that:

"it was important to remember that science was at the heart of understanding climate change"

So how does she explain ignoring recent climate science and setting only a 5% reduction target under the CPRS?

"For too long those who deny climate change is real have muddied the debate, for too long they have hijacked this issue to pursue their own agenda."
I agree with her on this - but is Penny Wong who has hijacked the issue for petty political reasons.

"The reason we don't have a price on carbon is Tony Abbott tore down a leader (Malcolm Turnbull) and installed himself on the basis that he doesn't believe climate change is real, and the Australian Greens voted with Mr Abbott."
Some classic blame shifting here Penny.  As previously noted, she did not negotiate with Greens on the ETS at all, or after it failed!

"Julia Gillard has made clear her commitment to this issue, and her views about the need for a price on carbon" 
Penny Wong and Julia Gillard can achieve this tomorrow by negotiating with the Greens senators and getting two Liberal Senators to cross the floor.

It is time for Penny Wong to stop playing politics and to stop making excuses for doing nothing.  We need a carbon tax and we need it now.  Get on with it.

Tuesday, April 27, 2010

We need a carbon levy

Labor's fatally compromised emissions trading scheme has now slipped into political oblivion but climate change has not. 

Kevin Rudd is a coal-eating surrender monkey!

It is clear that we urgently need a price on carbon to provide incentives for people and industry to shift towards zero emissions energy sources.

Professor Ross Garnaut and many others now support the immediate introduction of a much simpler carbon levy which would supplement other initiatives and policies to reduce Australia's carbon emissions.

It is time for Kevin Rudd to implement a carbon levy now to give us the best chance of avoiding the looming consequences of dangerous climate change.


Link: Rudd delays carbon scheme until 2012