DEPARTMENT BLOWS GOVERNMENT’S COVER ON CASH FOR
14-December-2010
Labor‟s Cash for Clunkers election promise is under fire yet again – this time from its own Industry Department, confirming „Pink Batts on Wheels‟ is a disaster waiting to happen.
The Government has already been forced to defer the start date by six months.
But, as reported today, the Department has revealed in a series of answers to Senate Estimates Questions on Notice that:
the scheme will cut carbon emissions at the absurdly expensive rate of $429 per tonne, compared with a price of less than $30 per tonne under the Government‟s shelved ETS;
it has not analysed the wider economic effects of such a program;
it has not considered its impacts on jobs in the Australian car industry and aftermarket; and
it has noted problems that have consistently plagued similar schemes in other countries, including by observing a "major concern" with the compliance arrangements tried elsewhere in relation to scrapping.
This frankness from the Department exposes yet another policy bungle from Julia Gillard.
Ms Gillard must answer how and why this idea was ever proposed – and why the Government wants to squander taxpayers‟ money on a dud that will serve only to favour foreign car companies and workers; distort local used and new car markets; and pull consumer spending away from other Australian industries.
She must also explain why she is seeking to pursue a policy that will reduce carbon emissions at a cost 15 times more expensive than an ETS.
The Government should dump Cash for Clunkers immediately.