The hypocrisy of the carbon tax

The tax which Australia has to have, to keep the current government in power with the support of the Greens, seems to have more holes than the proverbial Swiss cheese. The tax which was conceived with a lie seems to be dividing the community. The debate on the pros and cons of this tax has been ongoing for the past six months and now to quote Greens’ Senator Christine Milne, it is on the home stretch. Unless there is a dramatic reason for another election in Australia, it seems the die is cast and carbon tax will be imposed on all of Australia.

Yet with the current information available, petrol will be exempted from this tax and those with SUVs and four wheel drives can breathe again knowing their polluting behaviour will continue unchecked. Motorists cause up to 17% of carbon pollution in Australia, and it is indeed strange that there is no punishment for them to continue polluting the environment.

The pressure which the Opposition leader Tony Abbot had exerted on Prime Minister Gillard on this issue seems to have had its desired effect of no tax on petrol. However, the Greens have asked for an inquiry into this exemption and chances are that some time in the next decade there will also

BY PAWAN LUTHRA

be a carbon tax on petrol.

The other hypocritical issue is that of compensation being offered to millions of households who are partly responsible for carbon emissions. When a tax is being imposed to change behaviour, it is strange that money is being paid back to the same people it is meant to punish. Perhaps an option could be to use the tax to help build better infrastructure such as railways etc., which can assist in less use of carbon and by default, allow for better use of resources. That there is no discussion of this trade-off is an indication of the sensitivity of the voters to pay the carbon tax, and the “need” to pay them back.

What is also hypocritical of the government is their reluctance to sell uranium to India in spite of the country’s dependence on coal to meet its energy needs. India needs coal and with over 500 million people without electricity, coal is the cheapest and easiest energy resource around. India’s GDP growth is expected to increase beyond 8% over the next few years, and more than 80% of the country’s current energy needs are met with coal. This is in contrast to France where the bulk of its energy needs (over 70%) are met from nuclear sources. In this context it is strange that the Gillard Labor government can stand with its hand over its heart, proclaiming to be a saviour of the planet, while subsequently denying India the use of uranium for its domestic energy needs, and helping towards saving on emissions.

Now with the Greens in power with Labor and their ability to block the government’s moves in the senate which do not meet their agenda, it will be difficult for Australia to sell uranium to India, which could go a long way in helping ease world pollution.

The carbon tax is poised to bring in another layer of administration – public bureaucracy which administers the collection and dispersal of these carbon tax monies. It will add few more public servants to the already swelling numbers in Canberra. To save carbon, I assume not many will keep the midnight oil burning. But the families who need to cope with this new tax, will do it for them, as they struggle to balance their books long into the night.