Tuesday, 28 July 2015

ETS V GST

I wrote not long ago about how a scare campaign on the ETS would not have the same effect this time round.
The public have experienced one and found it a big yawn. contrary to what a lot of very serious people believe it was not a major issue in the last election.

Moreover if it is linked to the ETS in Europe it is going to start at a low level so the initial price could well be less than half the $27 it was when a fixed price.

Now Tony Abbott could well be going to the next election promising to double increase the GST by 50% with the extra money going to the States for Health.

Here is the rub. Which measure will raise electricity prices more?  Yes you guessed it in a highly ironically move Tony Abbott would do more to cut emissions by raising electricity prices however you lose a lot of the benefits of what the ETS would do.