Canberra insider Barrie Cassidy does not like Liberal opposition leader Tony Abbott and his continued opposition to the carbon tax. Barrie Cassidy has already written his low opinion of Federal Liberal Opposition leader Tony Abbott, and anyone watching ABC Insiders over the years knows he is committed to a carbon tax, and cannot understand why there is any opposition.Â Barrie Cassidy writes in his latest piece hoping that Tony Abbott will self destruct before the 2013 Federal Election.Â Â Barrie Cassidy is typical of the the Canberra Insiders, the Press Gallery, and the Canberra bureaucrats, who cannot understand why there is so much opposition to the Carbon Tax.
What the Canberra insiders think, is that once the Carbon Tax is legislated, and been operating for a year, everyone will be happy and used to it. However, as I have written before, the carbon tax is not like the GST. The Carbon Tax means unrelenting price increases. To get electricity prices to the level that makes renewable sources of power equal in price to cheap coal, will require a massive carbon tax.
The Canberra insiders think that once the pensioners have their increased pension, everything will be settled. However those pensioners will know that they have years of price rises to go. Tony Abbott just has to point out that they might have compensation now, but where will the extra compensation come from next year, and the year after that, as the carbon tax steadily increases.
When the Emissions Trading Scheme (ETS) comes in,Â a few years later, it will be even worse. The ETS will mean no-one will be able to predict the carbon price. The price of carbon will be up to the financial markets.Â Will we get manipulative schemes like the 2008 one which pushed up the price of oil? Who knows? Will we have a Lehman Brothers of ETS trading?
Every company that goes broke, will be blamed on the carbon tax. Every employee who is laid off will be blamed on the carbon tax. If a company moves off-shore, it will be because of the carbon tax, whether it is true or not.
Every price rise will be blamed on the carbon tax. Companies will be able to increase their prices knowing that the blame can be placed on the Federal Labor Government and its carbon tax.
The Federal Labor government may take Professor Ross Garnaut’s ideas and push responsibility to an independent government authority, a “Carbon Bank”. However that won’t help the Labor government. If interest rates go up, do people blame the Reserve Bank of Australia (RBA) or do they blame the government?. They blame the government. If the economy suffers from the carbon tax the voting public will sheet the blame back to where it belongs – the government.