Tuesday, June 24, 2008

Government and Industry

The Climate Institute report on energy affordability and emissions trading released on Monday, found energy price rises could easily be offset through the auction of carbon permits, estimated to exceed one percent of GDP or approx $10 billion.

It's believed for most Australians, the affordability of energy is likely to improve in the long term.But with a high carbon price senario,and with oil prices continuing to rise there would be a deterioration in energy affordability in the short to medium term. Especially among low income families.

The Kyoto Protocol on climate change was passed when the new government came to power last November, and a Carbon trading scheme was to commence by 2010, to give business a financial incentive to cut pollution. Australia is responsible for about 1.2 percent of global carbon emissions, but remains one of the highest polluters per capita because of the nation's reliance on coal and other fossil fuels.

After reading this report it left me wondering, why the everyday person is the one to be hit in the hip pocket. What becomes clear is government and big business will come out as winners, industry pays for carbon credits purchased from government or other industries, their products increases in price and is passed onto the consumer.

Water, gas and electricity rise by 10 percent for the domestic consumer, yet industries increase on supply charge will be minimal . WA is already the highest tax paying state, we pay taxes on our taxes. One would think we had a well oiled state, instead of a Health system in crisis, an education system in tatters, lack of housing, police enforcement, water, domestic gas and power.

Why should WA tax-payers be paying indirectly for Apache pipeline costs??? They are a multinational who send their profits off shore. Just how many industries are the taxpayers paying for to operate in our state??

The introduction of a carbon price does not need to involve a social cost. Australia can make deep cuts in our greenhouse emissions without reducing our living standards.

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