Letter to the Editor
8th November 2011
Back towards the Dark Ages
The passage of the carbon tax bills today is no reason for celebration. It is a step back towards the dark ages.
Just a few generations ago, humans lived in a “green” world. There was no coal, oil or gas providing light, heat, transport and traction power.
In this green utopia, wood provided heat for cooking fires and forests were felled for charcoal for primitive metallurgy; farmers used wooden ploughs and harvested grain with sickles and flails; the nights were lit using candles and whale oil; rich people used wind and water power to grind cereals; horses and bullocks moved coaches, wagons and troops; there was no refrigeration and salt was the only preservative for meat.
And the real cost:
This is about what it adds up too: If the carbon tax costs us, say, $10 billion a year (anyone have a better number?) we not only have to pay that, but we might lose another $20 billion a year as well.
As I’ve said before, you can’t compensate the nation. There is no productivity gain, no win, no efficiency improvement. There is no bigger pie if you have to cook with leather.
Treasury likes to pretend that the rest of the world is “joining” in the carbon schemes, and that by 2016, the US, Canada, Japan, Russia, China and India will have changed their minds and legislated a carbon price.
The Minerals Council of Australia wasn’t convinced that was a good plan, and asked the Centre of International Economics to analyze the Treasury modelling on the carbon price. The Treasury wouldn’t let them. (Who do they think owns the models?) Instead the CEI had to do their own modelling.
They are apparently the first to try to figure out what might happen in Australia if the rest of the world doesn’t leap head-first and suicidally into carbon pricing schemes.
The CIE finds losses that are 6 times greater:
- That while the Treasury says Australians will lose 0.3% of GDP by 2020, the CEI model suggests we’ll lose 2% of GDP by 2020 (per year).
- So Australia will be not just $32 billion poorer* by 2020, but $180 billion poorer (about $20 billion poorer per year.)
- Where the Labor-No-Business-Experience Government says investment will drop by 0.4%, the CIE put it at a 3.4% fall.
The good news just keeps on coming:
Andrew Bolt – Tuesday, November 08, 11 (01:47 pm)
As Parliament voted today to pass a tax to stop global warming – blamed by Climate Commissioner Tim Flannery for drying out our rains – a rain storm hit Canberra.
UPDATE 2: AFRICA OWES Australia: http://chiefio.wordpress.com/2011/10/31/japanese-satellites-say-3rd-world-owes-co2-reparations-to-the-west/
And another company prefers to take manufacturing overseas:
|08 Nov 2011 – Austal Ltd (ASX:ASB) has acquired a shipyard in the Philippines for $7 million to regionalise its manufacturing base for commercial vessels.|