Gillard government tangles itself up in carbon tax spin

The inconsistency of the Gillard government’s price signalling and price gouging spin relating to the carbon tax was highlighted by the Federal Member for Bradfield, Mr Paul Fletcher, during Question Time.

“On one hand Julia Gillard says that the carbon tax will act as a price signal, by increasing the price of goods with a high proportion of carbon relative to those with a lower proportion of carbon,” said Mr Fletcher.

“On the other hand Julia Gillard says that price increases of more that 0.7 per cent are gouging – and she is threatening businesses with fines of up to $1.1 million.”

“How is the price signal going to work if businesses are prevented from increasing prices?”

“This was the question to which I sought an answer in today’s question time.”

“Unfortunately, I did not get it.”

“The Gillard government is twisting itself into knots – because it has introduced a tax which is designed to increase prices so as to change consumption habits, but it does not want to admit that this is what it is doing.”

Media Contact – Georgia-Kate Schubert 02 9465 3950 or 0414 210216