Tony Abbott's Direct Action scheme is "bizarre": Ken Henry

[pct001wine]

FORMER Treasury secretary Ken Henry has described Tony Abbott's direct action scheme for tackling climate change as "bizarre" and predicted the Coalition will wind up implementing an emissions trading scheme.

Dr Henry said the public service had been advising Australian governments for the past decade that an emissions trading scheme was the least economically damaging way to satisfy their emissions reduction commitments.Although a carbon tax achieved a similar outcome, the policy direction taken after the election was “bizarre”, with the government's strategy now being to purchase abatement with direct payments from government to industry.

“We've been reminded that buying abatement is like buying licences from irrigators in the Murray-Darling Basin for environmental flows,” he told a conference at the Australian National University.

But if the government was going to buy carbon abatement, it first had to create a licence or permit to emit and the government would then buy those permits.  

“How would that be different to the Murray-Darling Basin? You're saying the only purchaser of emissions can be the government. You're ruling out the equivalent of water trading.”“Why would you do that when (allowing private firms to trade their rights to emit) is where all the productivity enhancement comes from?”

Dr Henry said another example of the folly of making the government the monopoly purchaser of rights to emit could be found in the labour market.Labour market deregulation does not raise productivity by reducing the supply of labour. It does so by making it easier for labour to move to where it is the most productive.“Even if you don't want to reduce labour supply, you'd be in favour of labour market deregulation to increase productivity.“By the time the government's scheme is legislated, it's going to look like an emissions trading scheme,” he said.

[lakeland27]

The government themselves seem to be the only supporters this 'scheme' has.  well apart from the usual suspects.

[monman12]

I think Abbotts suggestions are somewhat "bizarre" also.

"The government themselves seem to be the only supporters this 'scheme' has....." Duh, it is Abbotts "scheme" of course they are.

If it was not for the previous governments  "there will be no carbon tax......." carbon tax,  there would be no scheme or problem. If the ALPers are so concerned,  allow the scrap the carbon tax bill to eventuate. Some hope.

 nɥºɾ

[lakeland27]

---

@monman12 wrote:

I think Abbotts suggestions are somewhat "bizarre" also.

"The government themselves seem to be the only supporters this 'scheme' has....." Duh, it is Abbotts "scheme" of course they are.

If it was not for the previous governments  "there will be no carbon tax......." carbon tax,  there would be no scheme or problem. If the ALPers are so concerned,  allow the scrap the carbon tax bill to eventuate. Some hope.

 nɥºɾ

---

 you make no sense. You find it 'bizzarre' but blame the ALP ? pffftt.

[***super_nova***]

Actually, I blame them all!  I blame Rudd and the Greens for not compromising; we could have had trading scheme years ago.  I blame LNP for denying the need for carbon pricing, and then attacking the carbon tax despite previously TA saying that carbon tax is the best option.  I blame them all for spending all this time squabbling, instead of doing something constructive. 

Carbon emissions are going to cost us one way or other, so for bleeps sake why not just stay with what we have got, that would be the cheapest and most sensible option because any change only costs additional $$$$$$$ implementing it. 

[lakeland27]

the greens pretty much botched that one. i support larger targets, but that is where they stoofed up.  it would have been properly done and dusted before abbott was able to use it as a wedge otherwise, so we get nothing , and have to start from scratch again.

[topsidesoul]

I hope Tony Hurries before Whyalla gets 'wiped off the map'

[silverfaun]

As opposed to the Labor failed carbon tax that failed to raise the revenue they had already spent & failed to cut any emmissions.

Poor Short Billy, he will die in a ditch with this one, just like the whole of the Labor party did at the last election.

But never mind, the Fairfax media, the so successful newspaper group, NOT, have issued an edict that: they will not publish any contra articles that don't toe the "global warming" religion line. So, what does this mean?? they have effectively gagged their own publications, limited their own freedom of the press &  limited freedom of speech.

Could it get any more ludicrous & could Labor become any more less relevent to the wider Australian voting public, we'll see.

[pct001wine]

"Short Billy" now, not "Little Bill". Still judging by height I see. I suppose that's all you've got.

[silverfaun]

Anytime the left on here try to lay a finger on the present government all anybody has to say is "Rudd/Gillard./Rudd.