Gillard government is doing a 94.5 per cent compo for businesses and none for many consumers

Comments on Sid Maher “Carbon tax compensation fires up industry”, 14/04/2011, http://www.theaustralian.com.au/national-affairs/carbon-tax-compensation-fires-up-industry/story-fn59niix-1226038762894


The government and Climate Change minister Greg Combet have bowed to business pressure and sold the majority of the public out. See the following from the report:

"But seeking to counter warnings from big business about the impacts of the carbon price on their international competitiveness, Mr Combet said under a $20 a tonne carbon price and 94.5 per cent assistance, the steel industry would face a cost based on its core pollution of only $2.60 for every tonne of steel out of a current global price of $800 a tonne. And the aluminium industry would face a cost of $18.70 a tonne of aluminium, out of a price of about $2500 a tonne."

Note the number of "94.5 per cent assistance" to industry.

What does it mean? It means millions possibly well over ten millions of Australians will not get any compensation, or very little compensation for higher energy prices.

The Gillard government is no different from the Rudd one in terms of catering to large businesses at the expense of consumers and personal taxpayers.

Why should large businesses be compensated by "94.5 per cent assistance", and many consumers not at all? What is the rationale of that? This is in spite of the fact that businesses can pass on most of the costs to consumers and consumers on the other hand can’t pass any on to others.

It is a shame of an incompetent government.