Carbon tax spectre
REMEMBER all those old adverts about the Smart State and the Lucky Country?
Well, we’ve had our natural disasters. Looks like were moving on to the manmade ones.
The price of raw crude has hit its third high in 40 years. This is a direct result of the turmoil in the Middle East. This is turmoil which America appears to be keeping out of – maybe they’re learning!
The current focus of this Middle East uprising is Libya.
Colonel Gadaffi, their dictator, is under threat, the people are in the streets and a large number of oil fields have ceased production. This has driven the price of crude up.
This unrest, if successful in Libya, may well spread to other oil-producing states.
Should this demand for more liberty and less government controls spread, it may further hinder oil production.
A high crude oil price translates to a rise in underlying inflation of consumer nations. Inflation usually means a rise in interest rates and a slow down in the world economy. The world cannot afford to have the economy slow, or fall back into recession, so close after the credit crunch.
And closer to home, what does the Labor Federal Government ( with their Green allies standing behind the PM in camera shot) announce in this economic climate?
Why, a new tax, a carbon tax, an inflationary force to be introduced into the economy.
I heard the PM berating the Leader of the Opposition, and his financial credentials, saying he wanted to follow New Zealand’s lead on economic strategy. But then again I also heard the PM say emphatically there would be no carbon tax introduced by a government led by her.
This is the same Prime Min- ister who is overseeing an increase in the tax on LPG, which has lower emissions than petrol, and ethanol blend fuels, in another piece of legislation.
So do they want us to lower emissions, or is this just pandering to the Greens so they continue to support a minority government?
New Zealand introduced a carbon tax some time ago ( 2005) – have a look at what economists say about that fiasco. The UK, and some other European Union countries, are also fine examples of what happens to economies with carbon tax as one influence. Compare a list of countries with carbon tax to a list of countries with financial woes ( or needing bailouts by the EU, for Europe) – there is a correlation.
And guess who will pay the most for carbon tax? Rural property dwellers and small business – they travel further, use more fuel, don’t have public transport and rely heavily on fuel and electricity.
Smart State, lucky country.
VOLATILE: People wait to flee Libya at the airport in Tripoli as the unrest spreads