At the beginning of the year, Treasurer of the Year™, Wayne Swan, claimed the impact of the carbon tax was minimal. Swan gleaned this vital information not from detailed Treasury costings or anything like that. Rather, he went down to his local supermarket – voila!
But new figures in paint a very different and worrying picture.
The Australian Securities & Investments Commission reports there were 10,632 company collapses for the 12 months to March 1 – averaging 886 a month – with the number of firms being placed in administration more than 12 per cent higher than during the global financial crisis.
Sure. Companies are also hurting because of the GFC, and the high Australian dollar, but the timing of the CO2 essential trace gas tax couldn’t have been worse.
Australian Chamber of Commerce and Industry chief economist Greg Evans said: “Rapidly escalating energy prices caused by the carbon tax and other green programs are taking their toll on many Australian businesses.
“In energy reliant industries it is already showing up in job losses, deferred investment and in the worst cases, business closures,” Mr Evans said.
A real kick in the guts. OK, so Gillard and Co. had no control over the GFC, and whilst there are limited options to address the high Aussie dollar, it is a floated currency. But the carbon tax is certainly something they could control.
The carbon tax – and mining tax – were also showing up as “sovereign risk” issues in discussions with foreign investors.
In short, it’s a rolled-gold disaster. Record company closures, higher prices, job losses, lower investment and for what?
The bloody tax doesn’t even make any money!
No, it’s not the only reason the ALP and Gillard are doing so poorly in the polls, but it can’t be helping. The 2PP is at 56-44 today, ALP primary vote is down to a paltry 31, and yet the ALP ship sails full steam ahead towards oblivion.
And as for the climate the tax is meant to soemhow change? Nope, it’s pretty static, too.