It’s the carbon tax that’s toxic

Next month sees the introduction of one of most absurd taxes in Australia; one that will damage our industry and lower our standard of living for absolutely no benefit to the environment.

[Image, right: This is how carbon dioxide is portrayed by the Gillard Government, but in reality the gas is colourless and odourless, as well as being non-polluting and non-toxic.]

With the carbon tax coming into effect next month, I cannot let this opportunity pass to highlight how damaging this absurd tax will be on Australia's economy, and our manufacturing industry in particular.

One only has to look at the history books to realise the earth is in a continual state of change, and no matter how much spin the Gillard team put on it, carbon dioxide is a naturally occurring chemical compound; it is not a pollutant or toxic, it is colourless and odourless.

Even if we accept that man-made carbon dioxide does have some influence on climate change, I fail to see how the introduction of a carbon tax in Australia will have any effect on world-wide carbon dioxide levels. The figures just don't add up.

Australia contributes about 1.5% of global carbon emissions, and that includes man-made and natural production (the vast bulk).

If we closed every power station in Australia, took every car, truck and bus in Australia off the road, and grounded all aircraft, the reduction in carbon dioxide levels would still be less than the forecasted growth (not the total, just the growth) in China's output of carbon dioxide every year.

Interestingly, China is currently the number one producer in the world of wind and solar power systems. But they don't use them. While they manufacture 80% of the world's solar panels, they install less than 5% of them.

Instead China builds a new coal fired power station every week. In just one year they turn on more new coal powered electricity than Australia's total output.

What does Gillard and her team of fraudsters think happens to all those tonnes of coal being shipped to China.

hey are not buying it because they like the taste of it – they will use it to make cheap electricity for their people and industry. Exactly what Australia should be doing.

Basically, the carbon tax will have zero effect on global carbon dioxide emissions, instead it is a tax on everything, as higher energy costs flow through the economy. It's a massive exercise in tax churning and will introduce a new layer of complexity to the economy.

It's not as if the federal government has a good record in delivering large-scale interventions, think pink batts, school revolution etc etc etc.

The tax represents a massive transfer of wealth and power to the bureaucratic class which benefits most from a new labyrinth of compliance and compulsion.

In the long run, households will pay almost the entire carbon price as businesses either close their doors or pass carbon costs through to the users of their products.

For manufacturing it's another dagger in the competitiveness of our industry, especially when our trading partners have rejected or delayed indefinitely a carbon tax.

Australia must be the laughing stock of all our competitors around the world, as they watch us throw away one our biggest competitive advantages.

This is a toxic tax and must be repealed.

Please let me know your thoughts, email alan.johnson@reedbusiness.com.au.