Doing business in the dark – Alan Kohler – News – Business Spectator

Australia is also under-compensating coal miners – they say to the tune of $10 billion or so – and transferring the cash saved from them and the electricity generators to low and middle-income households in the form of cash compensation.

 

This is a deliberate strategy by the Rudd government to buy re-election in 2013 through taxing the profits of coal miners and electricity generators.

Also, by low-balling the assumed carbon price, they are potentially understating revenues by up to $10 billion in the forward estimates. If the price turns out to be $35 for the 2013 federal budget, they will be swimming in cash for the election that year.

 

The 2010 re-election plan was handed to them by Malcolm Turnbull’s passion for emissions trading, and his decision to choose that over leading a united party to an election fought over climate change.

via Doing business in the dark – Alan Kohler – News – Business Spectator.

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