Skip to comments.Deceiving the people….... Lies, deception and carbon tax ( From Australia)
Posted on 09/27/2011 9:12:41 AM PDT by Ernest_at_the_Beach
Every Australian ought to read the Ergas article in The Australian. For non-Australians, its a case-study of just how thin and fragile all our democracies are. The government was elected NOT to do this. The Treasury are paid to provide their modeling and assumptions to the Australian people but they wont. The Labor Party is planning to put in the crippling legislation that cant be unwound, even if 99% of Australians wanted it to be.
No, this is not a master plan to destroy the country, its just filthy ambition to rule at all costs, the nation be damned. The ALP doesnt particularly want to sacrifice itself over the Carbon Tax, but in clawing for every tiny election advantage (No, you cant campaign to remove the toxic tax!) they are resorting to breaking unspoken principles of western democracies and revealing something they normally hide in their darkest recesses: their naked disdain for the citizens. Its the end result of crumbling standards of ethics in parts of the public service, and a lack of intellectual debate within the Labor Party.
A mortally wounded, weak government, is a dangerous creature.
Where would we be without The Australian?
START with what is uncontested. First, once carbon emitters are issued permits, those permits will be property they own, so any government that abolishes them will have to pay compensation, possibly in the billions of dollars.
Second, entitlements created by statute may be found by the High Court to be property even if that is not specified in the legislation creating them. But specifying it in the legislation, as the government intends, makes that outcome, and the need to pay compensation, far more certain.
Third, a future government could not get around the need to pay compensation simply by mandating a zero carbon price. This is because that would almost certainly require rejecting the Climate Change Authoritys recommended abatement trajectory. But unless that government could convince both houses of parliament to adopt another abatement target, such a rejection triggers a default pricing mechanism. And far from reducing the carbon price, the legislated mechanism could increase it by up to 10 per cent in a single year.
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Fourth, nor could a future government get its way by modifying the membership of the Climate Change Authority.
Rather, the legislation creating the authority limits the number of members it can have: unlike, for example, that establishing the Australian Competition & Consumer Commission. And a government has little scope to dismiss members once they have been appointed. The new government would therefore be stuck with its predecessors authority.
In short, a new government would be comprehensively locked in. But that, Mark Dreyfus, the Parliamentary Secretary for Climate Change, assures us (The Australian, September 22), is not the legislations intention. Rather, its aim is merely to provide certainty.
Dreyfus does not explain why certainty should be provided here but not for water entitlements, taxi licences, fishing quotas or development approvals.
But even putting that aside, Dreyfuss stated aim makes no sense. For the Gillard government can no more eliminate uncertainty about the future regime for climate change than King Canute could turn back the waves. Rather, that uncertainty is a fact. And its costs cannot be wished away.
Nowhere is that clearer than with the prospects for global agreement. Yes, credible agreement to reduce carbon emissions might be reached some time soon. But it is at least as likely that it will not, as the same changes in the global political economy that have killed the Doha round of world trade negotiations stall progress on climate change. And if that happens, abatement by Australia will be futile and economically harmful. Forcing it to continue would only compound the harm.
As a result, when the Gillard government promises investors in green activities certainty, it is not eliminating risk: it is merely shifting it from those investors on to taxpayers and the community, magnifying its cost along the way. And while private investors get a choice about whether to bear risk and are compensated accordingly, the victims of this risk transfer do not.
To add insult to injury, the victims are not even being told how big the resulting loss could be. This is because Treasury has not modelled, or if it has modelled has not released, the scenario in which those losses eventuate: that is, in which Australia implements ever higher carbon prices while the rest of the world does not.
Dreyfus does not mention, much less attempt to justify, that fact. Nor does he mention, much less attempt to justify, the governments decision not to publicly release the models and data used by Treasury, though they were paid for by taxpayers. Rather, he claims Treasurys work has been one of the largest economic modelling tasks ever undertaken in Australia.
Perhaps, but that only increases the need for full public scrutiny, especially given what is at stake. This is all the more the case as the modelling rests on implausible assumptions. Not that Dreyfus denies those assumptions. Rather, faced with the fact the modelling assumes much of Australias abatement will be sourced from the former Soviet Union and other Asia, Dreyfus merely says overseas abatement may provide emissions reduction that can reduce the schemes costs.
That is indeed possible. And it is also possible that countries such as Uzbekistan, Burma and Laos will undergo the greatest moral regeneration since The Pilgrims Progress and become the credible vendors of abatement to Australia Treasurys modelling assumes. But betting on that outcome is no way to sleep well at night.
And if taxpayers and the community are to pick up the tab for Labors lock-in, why shouldnt they know just how big the loss would be if things dont go to plan?
That assessment should have been in the legislations Regulation Impact Statement. But rather than analysing the risks, it parrots Treasurys assumptions, including about global agreement, and then adds mistakes of its own: for example, it argues market mechanisms are better than direct action, but ignores the myriad forms of direct action the government proposes to introduce; in estimating compliance costs, it ignores the costs of securing and auditing abatement overseas; and it also ignores the fact as the carbon price rises, the incentives to cheat, and hence the costs involved in preventing cheating, increase with it.
For all that, there can be no excuse. Nor is there any excuse for as intelligent a man as Dreyfus descending to such contortions. But the underlying reality is simple. Labor campaigned on Gillards promise that there will be no carbon tax under the government I lead.
Once in office, it turned its back on that promise. Now it wants to prevent an Abbott government from honouring its promise to repeal Labors scheme. And if that inflicts massive costs on the community, mores the pity.
Little wonder the government faces a credibility problem. But what is surprising is that its own members dont worry about the ethics of its conduct.
Is that what Australias oldest political party has come to?
If so, it will take far more than a make-over to save it from a historic defeat.
Reprinted in full with permission from The Australian.
Agenda 21 has woven it’s way into every fabric of our lives. People who are not working to kill this monster by educating others are silently working for the death of America.
Different schemes are being used in the USA...but I am not clear on what the details are.
Thanks for the pings.
I have been following this disgraceful fiasco in Australia for the past year. I get the feeling that there are greedy global fingers reaching across the ocean into that mess. It’s about the money. It’s always about the money.
Thank God we were able to shake off the “global warming” scammers here in America.
Criminals rarely just give up, unless they are shot, electrocuted, hung, given needle, or shoved into some dark prison cell.
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