Jun 17, 2008
Is This Election Year: More Populist Politics
So they are proposing to compensate households for the extra costs associated with the ETS. Does this not undermine the integrity of the scheme, which is all about incentivising changed behavior? And who is going to pay for this (the windfall profits from the SOE generators is what Parker is suggesting as a possibility - ie he doesn't, nor does he know what the cost is going to be as we don't know the cost of carbon)? How much will this cost to administer? Who will administer it? Was this costed in the budget? This is bad policy. And bad politics. How are they going to compensate the 50,000 who lose their jobs? Labour are going to be lucky to get 20% of the vote this time around.