Climate change policy key to Gillard's governing

Comments on Paul Kelly “Gillard's main fight lies ahead”, 9/10/2010, http://www.theaustralian.com.au/news/opinion/gillards-main-fight-lies-ahead/story-e6frg6zo-1225936191039
Undoubtedly Gillard will face more difficult times ahead in governing and in being effective and reformative.

However, on carbon price, it should not be too difficult for Gillard to design and implement.

The key is revenue neutrality and with "people" as opposed to big business in mind.

If it is revenue neutral and any proceeds go back to people for their rights to good environment and climate in this context, a carbon price (more likely tax at the moment with the Greens in the driver seat) will not be as taxing to most people as the CPRS designed by the Rudd government.

This is because there will not be too much of the revenue spent on business subsidies under the pressure of business lobby.

Further, the revenue will not be siphoned to government pocket.

It will all go to people who will have to pay for the tax and switch to higher cost energies for a while.

If the majority of the electorate is with the government, then what should it be fearful for?

So, if the government is not greedy for itself to get the revenue and is fair to people, a carbon price/tax should be an easy matter for it to introduce.

Of course, trade neutral is also important to sell it to business and the public at large.

If Gillard can be successful in climate change policy, she will have achieved a lot in economic reforms. Then it is not too difficult to deal with others.