My friend Matthew Warren makes a valid point in today’s Australian newspaper (and in his blog ) about the complexity of Australia's Climate Change policy and the Government’s proposed national emissions trading scheme.   As Matthew intimates, this is not going to be a popularity contest winner.   There will be big losers, the problem is that the jury is out on whether  the earth will be a winner.

Yesterday at an intimate post-budget luncheon, Treasurer Wayne Swan assured a small collection of business people that his next six months would be focused on two key government policy initiatives; getting the emissions scheme right and the taxation review.    That  warmed the hearts of one extremely vocal key player at my table, who seemed pleased that what he considered a more sober Government mind was now looking at the proposal.

Which is just as well.   As The Australian newspaper reports extensively, the Productivity Commission has responded to the Garnaut Report by questioning the need for an emission limit and also flagging that electricity prices and therefore other costs will surely rise – with little effect on  greenhouse gases. (By the way, the Productivity Commission is now in the middle of an inquiry into paid parental leave. We will all be tuned into the release of that report.) 

And what of petrol? Headlines in today's SMH newspaper shout that the end is nigh for our commuting way of life.  We simply can't hack these petrol prices and the distances we must travel simply to get from home to work and back.  The flow-on (excuse the pun) effect will be disastrous for transport and town planners.  Workers will move to inner cities with no parking, or to cheaper outer suburbs with no public transport.  Whatever they choose, roads will be clogged and emissions will pour into the atomosphere.  So, will Petrol  be included in the emissions trading scheme?  We’re not sure.  The Productivity Commission report recommends transport fuels be included in any scheme.  Some ministers have said maybe, others say no.  If there is a tax on petrol, will the already angry motorists and truckies turn on their new government?  And what about those Rudd ‘Working Family’ voters in the spreading outer city suburbs?  As my chum Matthew Warren says, they are doing a lot of commuting and  feeling the pain of current prices.  Can they sustain any more?

 There are signs the government is starting to look a little concerned about some of the recent pronouncements.  In this budget selling period between parliamentary sitting weeks, key Ministers are quietly repeating in gatherings all over the country that the good Professor Garnaut may wear the label ‘Chief Climate Change adviser’, but he will not be their only adviser.  They say they are listening to all the different views bubbling around board rooms at the moment.  The Productivity Commission’s response to Garnaut is the first serious discussion that brings a sober approach to this problem.  Feel free to add yours to the Treasurer, Minister for Climate Change, and the PM.