Dear Georgia
I realize you understand the science behind Climate Change so how come the Emission Trading Scheme has you baffled?
"huge amount of taxpayer dollars going to big polluters in the form of free permits to pollute." No taxpayer dollars are going anywhere. The taxpayer is missing out on revenue from sale of permits.
The permits only have value if they are used for carbon reduction activities. So if a coal-fired power company directly sells its permits to other carbon "polluting" industries then global emissions go down and the money received can be used to finance the power company's own carbon pollution reduction program. Alternatively it may sell its permits to an intermediary who then on sells to "polluting" customers. Electricity consumers will thus not initially be paying the higher price necessary for the power company to buy carbon permits and/or use dearer but less "polluting" sources of electricity. However once the "period of grace" expires the power companies will be required to have the requisite number of permits for the amount of carbon they emit.
The big users of electricity in Australia are not the "big polluters" but the Australian people who consume electricity. No demand for electricity, no coal-fired power stations.

Georgina,
Contrary to some of the curmudgeons on this site, your article is clear, cogent and I agree with your logic.

I must say well spotted, with your questioning of that parliamentarian's bizarre priorities. I would add to that, by pointing out that the commonwealth (the people) pays their salary NOT THE *&%#$@ party. To me, that's a dead give away where his loyalties should be. Mind you, I'm not surprised, such is the problem with Political parties. They demand precedence over the public interest. (see organisational theory)

As for your concern over ETS I share them see this site.
<http://www.sciencedaily.com­ /releases/2009/11/091127124225.htm>.
What I've read of the book, albeit, half a chapter its very interesting, and gives substances to your concerns.

Good luck and I look forward to more writings from you.