Our Carbon Tax Pyramid Scheme

I have a particular dislike for MLM – Multi Level Marketing. The small person at the bottom does all the work and the big person at the top makes the most money (put simply).

Another name for this way of doing business is a Pyramid Scheme.

Promoters at the top of the pyramid make their money by having people join the scheme. Then they pocket the fees and other payments made by those who join under them.

It seems to me this new Carbon Dioxide Taxation Scheme is a similar way of doing business for Our Government. They are the only ones who benefit financially when all is said and done.

We were told (after the other great lie – There will be no Carbon Tax under a Government I lead) that ONLY the top 500 polluters would be paying this new tax. Ms Gillard said: “Around 500 big polluters will pay for every tonne of carbon pollution THEY put into OUR atmosphere,”

Everyone kind of breathed a collective sigh of relief – everyone that is who did not consider themselves one of the Big Polluters in Australia. Ordinary Mr & Mrs Australian were not big polluters, so they would be exempt surely.

But who are these 500 big polluters, exactly – this Misfortune 500, who are to be history’s martyrs to the answering of our generation’s greatest moral challenge?

Can we get a list?

No – we can’t, according to the Government. The 500 companies are not an identified list. The figure of 500 is just an estimate of how many companies in Australia would be caught by the scheme’s eligibility rules.

OK, but it will still only be the BIG polluters who will be paying this tax, so we can still breathe easy, right?

It took an awfully long time for the Government to finally give us the information, and when it arrived it left us scratching our collective heads.

THE number of companies hit by the carbon tax will be considerably lower than the 500 previously thought; it emerged yesterday as the Gillard government released its long-awaited hit list of liable greenhouse emitters.

The preliminary list included 248 companies, councils and other organisations that will pay the $23-per-tonne carbon tax from July 1. As expected, most are power generators, mining companies and heavy industry firms, though includes surprises such as Crown Melbourne and La Trobe University, both of which generate their own electricity.

A further 80 companies have been advised in writing they will cop the tax, and The Age understands the list for 2012-13 will total closer to 400 emitters than the originally forecast 500. Climate Change Minister Greg Combet said: ”I’m quite confident it’s going to be under 500.”

Based on greenhouse emissions data, big power generators including Latrobe Valley giants Loy Yang, International Power and TRUenergy  top the list, along with mining firms BHP and Rio Tinto, and heavy industry such as Alcoa.

A yet unknown number of additional emitters will join the government’s carbon list; most of them landfill operators – both local councils and private waste management companies – and also parent companies that are still deciding whether to pay through subsidiaries or vice versa. The total number of big emitters that will pay the tax will change over time as assets such as mines or plants are bought and sold.

It has been noted that topping the list are the Power Generators, which means that every single Australian, who gets their power from the grid, will find their power bills have increased yet again.

Now just keeping with power right now, any increase will automatically flow on to the little people – you and me, and we will feel it in our hip pockets.

Price of power goes up, so it will cost food storage facilities more, to keep food at a constant temperature, both in the dwellings where the food is warehoused and also in the trucks where it is shipped to the local grocery stores. It will cost the supermarket’s more to keep the food at a constant temperature in their freezers and deli’s – not to mention the additional cost of running the “in store” lighting so you can see what you are buying. If the store runs air-conditioning, that will put an additional cost onto running the business… more expensive electricity, means a higher cost to the food we will be purchasing.

The one initial item – electricity costs – has a huge flow on for us, the end consumer. Who actually will benefit – when everything is taken into consideration? The Government will, through the Carbon Dioxide Tax going into the coffers in Canberra.

Power drives the water treatment and sewerage plants across the Nation, so you can see that our annual water & sewerage bills will increase again too. Power drives the pumps at the petrol station – increased costs to the petrol company equates to increased costs to the consumer. I guess it is fair to say that your Council Rates will also increase proportionally.

Are you taking any life saving medications? Power is used by the pharmaceutical company to operate their processing plants and their laboratories. If they have to pay out more money, they will factor that expense into the cost of your medication.  Are your hip pockets feeling a tad frayed right now? They ought to be.

What about that delightful fortnightly visit to the beauty salon, for a haircut, blow dry, facial, manicure, eye brow trim or beard trim? Every item used in the salon will – down the line, accrue additional expenditure for the salon owner. Ultimately it is you and I, the patron who will pay the additional amount, when the costs of various treatments go up.

Broadening our outlook here, let’s begin with the Farmer.

Farmer Brown’s cost will escalate.  It matters not if he is growing spuds, chickens, oats, fish or apples (as an example). His water bill will rise; he will pay more for his fertilizer or stock feed; his electric bill will go up. This is a flow on effect.

Farmer Brown will have to pay more to get his produce to market and to keep his facilities and equipment up to scratch. So he will have to charge more for his goods and services.

The company that warehouses Farmer Brown’s spuds and chicken’s will automatically increase their costs, because the goods have cost more from Farmer Brown. Then they will add-on their own percentage of increased cost, before they ship the consumables out to supermarkets and butchers and green grocers.

The bottom line is this not merely a trickle down effect; it is a tsunami which will sweep everything in its path. Every person in Australia – man, woman or child will be paying more for whatever they consume, be it a can of Coke, a loaf of bread, a packet of headache pills, a roll of toilet paper or a packet of jellybeans.

Now turn all that upside down, see the consumer, with all the consumable on the bottom, then work backwards from the store, to the supplier to the farmer…. and see how it all leads back to Your Government in Canberra…… as I said in the introduction – a pyramid scheme, which you and I are paying for!

And what do you expect to hear from Wayne Swan next financial year? ‘By golly we have come up with that promised surplus’. YAWN!





About JustMEinT Musings

I like writing, reading and expressing my opinions. I prefer natural health and healing to pharmaceutical drugs. Jesus Christ is my Lord and Saviour.
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