Thug tactics or prudent behaviour?


I was struck by this article over on the ABC, at face value possibly prudent regulatory behaviour, given the Labour parties “whatever it takes” philosophy on politics possibly sinister.

 

ACCC flying squad to combat carbon rorts

Sounds ok, a specialist squad to catch those trading in fraudulent carbon allocations eh? Such as the EU has been plagued with..

 

Not quite…

The $12.8 million Australian Consumer and Competition Commission team will be tasked with dealing with false and misleading claims and price rises that businesses blame on the new tax.

More like a political weapon to keep companies from passing on the full cost of the carbon plan immediately.

The laws specify fines of up to $1.1 million per contravention, and the ACCC will use them to prosecute carbon price rorters.

The original penalties were in place to catch misleading or false advertising, they now encompass the possibility of fraudulent passing on of costs. This seems a massive expansion of the scope of the ACCCs’ powers.

Treasurer Wayne Swan says the consumer laws are the “toughest Australia has had for 100 years”.

“I believe the vast majority of business will do the right thing, but for those businesses that don’t do the right thing they will feel the full force of the law and heavy fines,” he told reporters.

Mr Swan says the ACCC “will be as active as possible” when the carbon price is introduced on July 1 next year.

“The ACCC will be the cop on the beat out there to ensure that those that meet these false claims are dealt with and dealt with  with the full force of the law.”

Competition Policy parliamentary secretary David Bradbury (another career lawyer/politician)urged consumers to dob in businesses that increase prices as a result of the carbon price.

“We’ve allocated $12.8 million over four years to the ACCC and will establish a dedicated team of more than 20 staff,” he said.

“Their activities will be directed towards enforcement and education of businesses and consumers.”

Mr Swan says the prices passed on as a result of the carbon price should be very small.

This is, to my mind, a thuggish way of pressuring businesses not to step out of line or face punishment.

Say hello to my liddle friend..

Mr Swan says the prices passed on as a result of the carbon price should be very small.

He says the carbon price will impact on the inflation rate by 0.7 per cent when the scheme is introduced.

“It is a price that applies to the 500 largest polluters,” Mr Swan said.

“It is not a tax on households as is claimed by many but it will have a small price impact in the supply chain and that is why we have put in place assistance for households to ensure they can meet those price impacts.”

Crap Swan, its a tax on energy production, pure and simple. The more energy you or the goods you obtain (as long as they are Australian made) “cost” to make the more money it will cost you.

Just because the Sunbeam factory doesnt produce its own power, doesnt mean it hasnt got increased costs for any of its Australian made products. But that’s ok, because we can import cheaper products from China, which doesnt raise a tariff wall against its own products.

 

Australia is effectively raising a tariff wall against Australian made products.

One Response to “Thug tactics or prudent behaviour?”

  1. Onepoint Says:

    ACCC should go and ask Ms Gillard first. Ms Gillard said they’d be no carbon tax. Mr Swan is only employing an extra 20 people to police this. Get Real that’s not a solution at all.

    Australians should remember, they’ll be paying a Tax on a Tax including the GST.

    Carbon Tax and GST for goods and services. Carbon tax is an embedded tax!


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