Muddled ministers

It seems ministers are getting anxious over the proposed emissions trading scheme and the potential risk, to the liquidfied natural gas industry. One senior minister described it as gross incompetence. The industry have claimed that up to $100 billion in investments could be jeopardised if it also, did not get the compensation that would be given to heavy polluters.

Well they have threatened the usual with job losses and taking their business off shore etc. Under the proposed emissions trading scheme, so-called emissions intensive trade-exposed industries would get free permits to prevent the cost of their products rising signicificantly.

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The heaviest polluters, such as cement and aluminium manufacturers getting about 90% of their permits free, because they emitted less than 2000 tonnes of carbon dioxide for every $1million in revenue they earned. Those emitting between 1500 and 2000 tonnes per$1million would get approximately 60% of their permits free.
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Those devising the scheme thought that LNG producers would qualify for at least some support, but as it turns out they don't qualify for even the lower threshold because the industry has cleaned itself up since 2001-2002. It must buy all permits, which would cause the price of gas to rise.

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The way it comes across, is those cleaning themselves up will pay for doing so. Naturally so their profit margins are kept where they would like, increases will be passed onto the consumer or tax-payer. So just how are industry being encouraged to cut emissions, heavy emitters are receiving free permits and those not being given freebies pass the costs onto us? Is there one minister that can explain where carbon emissions are being cut, or are they all totally confused and going to continue with their smoke and mirrors?