Friday 25 February 2011

That carbon tax !

Julia Gillard's decision to impose a carbon tax on Australia might come full circle and bite her on the bum. Before the last election she stated clearly that there would be no carbon tax - and this decision is a broken election promise !

The prime minister can claim that a carbon tax is defined Greens policy - and that the voters imposed the Greens on her as the only way to achieve government. That does not diminish the fact that she broke her undertaking to the Australian people - and that may come back to haunt her.

This carbon tax is a step into the unknown. It is certain to increase prices for many essentials - and that includes electricity and food. How much the government can - and will - devise compensation remains to be seen.

Probably the biggest factor will be employment. We will be saddling Australian industry with a crippling new tax and some will become uncompetitive. Manufacturing in Australia is in terminal decline. A tax on carbon may put the final nail in it's coffin.

Here in Wollongong all eyes will be on steel manufacturing. The industry has clearly stated that it will be at a huge disadvantage with steel plants in countries that do not have this imposition - and there is every chance that the Wollongong plant may diminish output in favour of more offshore production.

The decision is a big gamble. If it descends into chaos - like the insulation fiasco and the school building plan - we will have dealt Australian industry a death blow.

And if that happens - both Labor and the Greens will face the full fury of an angry Australia.

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