The Forum > General Discussion > As the non mining economy slows, Labor slams on the brakes.
As the non mining economy slows, Labor slams on the brakes.
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Labor is preparing to ram through the 19 carbon tax bills in record time, whilst not even having the corrected modelling it promised.
"It is also that the price set on carbon is too low to drive substantial investment in alternative energy sources, including gas as the fundamental alternative to coal, unless this is even more directly and heavily subsidised by taxpayers.
Yet the proposed initial tax rate of $23 a tonne -- let alone any higher -- will be another major drag on the economy and business just when so much of the manufacturing sector is already struggling, confidence remains abysmal and global risks dwarf any domestic agenda.
The gyrations on the stockmarket should provide warning enough that another tax is one more problem for an economy being buffeted by such a huge structural change and the constant threat of imported instability.
Even those in the business world who once supported the notion of pricing carbon are now mostly silent (Marius Kloppers, where are you?) if not aghast at how the issue has played out.
The Gillard government is determined to proceed anyway, knowing it now has no option politically after so heavily promoting carbon pricing as essential. Wayne Swan tried again in parliament to put the carbon tax into the category of fundamental reform pioneered by the Hawke Keating government. This claim will only confirm the now almost unanimous view in the broader business community that Labor simply does not understand competitive pressures and commercial incentives and disincentives when it comes to investment."
It is no surprise that business confidence is plunging to new lows in the wake of a government ignorant of the needs of the economy.