Let's hope Gillard for the best

Comments on Gavin Atkins “Labor should just stop meddling with markets”, 28/12/2010, http://www.theaustralian.com.au/news/opinion/labor-should-just-stop-meddling-with-markets/story-e6frg6zo-1225976798469

While I share some of the points Atkins argued, I think it may be still too early to conclude on Gillard on her approach to market, regulation or deregulation.

In terms of her role in most of Rudd era mistakes, she can't escape from it.

In terms of the MRRT replacing the RSPT, Gillard did not seem to have too many other options. The MRRT has been an improvement over the RSPT, though it still has its own problems.

Should Gillard have done it? She had too, otherwise she and the ALP government would have been finished by the ALP and the public.

As to the carbon pricing, either a carbon tax or else, she will have to do it too and there is no other easier or better way out. The quesition for her is whether she can pull the best and efficient pricing mechanism among all options available and in the current political environment.

If she can introduce a sensible carbon tax that is flexible to take account international actions, broad based with little or few exemption, revenue neutral to return the revenue to all residents, trade neutral, that would be the best thing she could do.

I think Gillard still have time to change course of governance and show leadership, although there is no guarantee that she will take it.

At Christmas time, I wish Gillard the best and hope she will learn from Rudd mistakes.