The AIM Network

Repealing the carbon tax won’t help Qantas

Image from theaustralian.com.au

The whole of question time today was devoted to the government saying “If you want to help Qantas then repeal the carbon tax.”

Has everybody forgotten what happened to Qantas before we had a carbon tax?

This is from May 2011:

“Qantas will have to raise international airfares to Europe from January next year after the European Union penalised the airline because Australia does not have a price on greenhouse gas emissions.

Under changes to the EU’s emissions trading scheme, Qantas would be forced to pay a tax on 15 per cent of its carbon emissions from its nearest port of call, the national carrier told a meeting of business leaders in Canberra this week.

This means flights to ports as far away as Singapore and Bangkok would be taxed under a “border tax” adjustment contained in the EU scheme.

Qantas confirmed it would be hit by the impost, The Weekend Australian reported on Saturday.

The airline is still calculating the likely impact on ticket prices and a spokeswoman said the carrier would face a second carbon hit on flights into Britain when Britain’s “green tax” took effect.

Qantas would be faced with the tax because its headquarters is in Australia, which does not have a price on carbon.

The charge would be levied on the airline’s last port of departure, which in Qantas’s case would be Bangkok or Singapore.”

And this from July 2011:

“To illustrate the risks facing us if we do not act, let’s consider the case of Qantas, who now faces an initial carbon tax penalty of 15% on its carbon emissions for any flights it makes into or out of Europe. This penalty will increase over time, and is payed directly into the coffers of the European Union. The reason for its imposition is specifically because Australian does not have carbon price in place.

Over the next few years, the European Union will expand its penalty regime to impose general sanctions on countries that do not meet its standards on carbon reduction mechanisms.”

No wonder Alan Joyce isn’t mentioning the carbon tax.

An article in the SMH from May 2011 said:

“In the end climate change and carbon pricing is a debate we will have, in spite of Rupert Murdoch’s trained orcs and trolls scaring the bejesus out of people like Dick Smith.

Smith yesterday admitted he hadn’t joined Cate Blanchett in her pro-carbon tax ad, because he was scared of being vilified by the Murdoch press. Not just the Piers Boltbrechtson hive mind, but the journalists, and headline writers, the photographers and moderators and serried ranks of deniers and abusers who have gone to war with science and the future on Rupert’s whim.

I must admit, I think less of Smith for that, and a lot more of Blanchett. After all, her career and livelihood arguably depends more on maintaining a happy, unconflicted public image than his. And she would have known, as he did, what was coming when she shot that advert.

But she probably knew much worse was coming anyway, if Abbott and Murdoch’s goon squad get their way and this debate becomes less about science than it is about thuggery and wilful ignorance.”

When Globe International reported this week that:

“Nations have passed almost 500 laws to tackle climate change, with emerging economies led by Mexico and China making the most progress last year.  A total of 62 out of the 66 countries examined have passed or are working on “significant” climate or energy-related laws.”

you don’t really want to be the only country repealing action on climate change.

If we really want to help Qantas we will keep carbon pricing so they, and all other exporters, won’t be penalised by countries who are introducing emission reduction legislation.

Why do they never consider cutting GST to alleviate cost pressure?

 

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