Filed under: Australia, Capitalism, Economy, Politics, Taxes | Tags: Australia's Cap-and-Trade, Fulfilled Campaign Promise, Prime Minister Tony Abbott
Climate hysteria probably reached its peak in 2006-2009 in Australia. Labor Prime Minister Kevin Rudd called man-made global warming “the greatest moral, economic and social challenge of our time.” Even though average global temperatures hadn’t warmed since 1989, we were headed for an environmental catastrophe and only drastic changes to our way of life could avoid Armageddon. Dissent was treated with shock and derision.
Mr. Rudd set out to pass a cap-and-trade scheme in 2009, but the Aussies didn’t buy it. But then the rest of the world declined to sign up with expensive carbon reduction proposals at the Copenhagen summit, Mr. Rudd lost even more credibility. In 2010 Julia Gillard promised not to impose a carbon tax, but she still lost seats in parliament and her coalition partners in the Greens persuaded her to push ahead with the unpopular levy of A$23 (U.S. $21.54) per ton of carbon. That further weakened Labor, and Tony Abbott won election last year on a platform of repeal of the tax. The Australian government’s own figures estimate the tax has added A$9.90 to the average household’s weekly power bill. (Think adding $40 to your monthly power bill here, and you see the objection.)
Cap-and-Trade Mr. Abbott argued, amounted to “a great big tax to create a big slush fund to provide politicized handouts, run by a giant bureaucracy.” He supported simpler, cheaper and more practical ways of creating a cleaner environment and most Australians realized that the cost of decarbonizing the economy outweighed any possible benefits. Australia’s Senate voted 39-32 last Thursday to repeal the carbon emissions price. Prime Minister Abbott told voters in a news conference after the vote:
Today the tax that you voted to get rid of is finally gone, a useless destructive tax which damaged jobs, which hurt families’ cost of living and which didn’t actually help the environment is finally gone.
Phillip Hutchings writes at Wattsupwiththat that:
Within minutes of the Australian parliament voting to scrap our carbon tax today, one of our major coal-fired electricity generators issued a profit warning announcement.
In this case, AGL Energy announced its pre-tax profits will fall by $186 million in 2014/15 solely due to the removal of the carbon tax. The majority of this is related to the very large, but inefficient Loy Yang brown coal station which supplies 30% of the power needs of the state of Victoria. It’s amongst the single biggest emitters of CO2 in Australia.
Yet it was due to get $242 million of “Government assistance” under the carbon tax arrangements this year. Most of which found its way to the bottom line.